Certificates

Junyuan Petroleum Group has passed several third-party certification programs since its establishment. It is ISO 9001:2000 and TL9000 certified covering all Junyuan product and business areas. The QA systems were effectively maintained during the whole process of certification for Junyuan’s business operations. Environment Protection and Occupational Health.

Quality assurance is important to us and our business partners, which is why we attach particular importance to our certificates.
Please click on the linked title to open the document.

ISO Standards and Total Quality Management (TQM) Systems

The International Organization for Standardization (ISO) is a worldwide federation of national standards’ bodies from more than 140 countries (one from each country). ISO standards are documented quality systems and activities, used as the basis for adoption of uniform quality systems norms for international exchange of goods and services.

In fact, ‘ISO’ is a word, derived from the Greek word ISO meaning ‘equal’, which is the root of the prefix ‘ISO’ that occurs in a host of terms, such as ‘isometric’ (of equal measure or dimensions) and ‘isonomy’ (equality of laws, or of people before the law). From ‘equal’ to ‘standard’, the line of thinking that led to the choice of ‘ISO’ as the name of the organization is easy to follow.

The name ‘ISO’ is used around the world to denote the organization, thus avoiding a plethora of acronyms resulting from the translation of ‘International Organization for Standardization’ into the different national languages of members, such as, IOS in English, OIN in French, etc.

Selection and Use of the ISO 9000:2000 Family of Standards:

The new ISO 9001:2000 is an integration of the familiar three standards ISO 9001, ISO 9002, and ISO 9003. ISO 9001:2000 specifies requirements for a quality management system for any organization that needs to demonstrate its ability to consistently provide products that meet customer specifications and applicable regulatory requirements.

It aims to enhance customer satisfaction. ISO 9001:2000 has been organized in a user-friendly format with terms that are easily recognized by all business sectors. The standard is used for certification/registration and contractual purposes by organizations seeking recognition of their quality management system.

ISO 9000 family has many standards, encompassing all areas of quality management systems. The most prominent standards are ISO 9000:2000, ISO 9001:2000, and ISO 9004:2000. ISO 9000 introduces quality management systems, their fundamentals, and vocabulary. It is the starting point of the standards and basically introduces the concepts.

ISO 9001 introduces quality management systems and its requirements to address customer satisfaction. Certificates to the organizations are issued based on this standard. ISO 9004 provides guidelines for continuous performance improvements.

When an organization seeks to establish the quality systems, ISO 9001 provides the conformance norms. ISO 9001 now provides the only standards against which certification are given to an organization. As per this standard, products include services, processed materials, hardware, and software, required by the customer.

ISO 9001 has five sections to clarify the activities used to supply products, quality management systems, management responsibility, resource management and measurement, and finally analysis and improvement. Intending organizations document all these areas in their quality manual to demonstrate their concerns for quality and meeting customers’ requirements.

Objectives of ISO 9001:2000 Quality Management Systems:

The objectives of ISO 9001:2000 quality management systems for an organization are:

To identify the goals that the organization intends to achieve. Goals may be efficiency and profitability, consistently meeting customer requirements, etc.

a. To consistently meet customer requirements

b. To achieve customer satisfaction

c. To enhance market share

d. To sustain market share

e. To improve communications and morale in the organization

f. To reduce costs and liabilities

g. To increase confidence in the production system

The organization meeting expectations of various stakeholders, such as, customers, suppliers, shareholders, employees, and the society achieve all these objectives.

Optimizing the Cost of Quality:

ISO documentation, by itself provides an opportunity to organizations to achieve internal efficiency, influencing the attitudinal changes of the people. It helps to identify the cost of quality and reduces this cost substantially. This ultimately helps an organization to achieve cost efficiency vis-a-vis increased profitability. To better appreciate this, let us examine some concepts on cost of quality. It is necessary to first classify the nature of costs to analyze the cost of quality. These can be done under the following three sub-heads:

Cost of failure:

Quality may fail either internally or externally, that is, within the organization or in the customers’ premises. Hence, failure cost can be grouped either as an internal or external failure cost. Under internal failure cost, we account for cost of re-work, cost for additional raw materials, additional payments required to be made to workmen, creation of eventual scrap, etc.

For external failure cost, we also consider the cost incurred for re- transportation, re-packaging, servicing, and handling of customers’ complaints and cost for loss of goodwill, in addition to the cost to be incurred for internal failure. Experience shows that this itself absorbs 70 per cent of the total cost of quality.

Cost of appraisal:

Organizations have to incur expenses for verification of quality and for maintaining an inspection team. There is also a requirement for specific gadgets and tools for undertaking inspection. All the expenses incurred on this account are considered as cost of appraisal. Usually organizations spend between 28-29 per cent of the total quality cost, on this account.

Cost of prevention:

Quality cost on this account is incurred to reduce the other two quality costs indicated above. These expenses are amounts spent for research and development and human resource development and usually vary between 1-2 per cent.

There is no serious study about computing the cost of quality in Indian organizations. From an international perspective, it can be seen that such costs, even though not accounted under any separate head, are as high as 40 per cent of the production cost.

Indian organizations typically assume that in the normal manufacturing process, there has to be some natural rejection. This may be as high as 22 per cent (in some cases) and is termed as the unavoidable rejection rate. In other developed countries, especially in Japan, the philosophy they subscribe to is diametrically opposite—the philosophy of zero defects.

It has been seen that to substantially reduce expenditure on the other two sub-heads of cost of quality, a mere 1-2 per cent more expenditure on cost of prevention can make a substantial difference. The rate of such incremental cost benefit is as high as 70-80 per cent.

Therefore, cost of quality, though not apparent from the books of account, is a significant wasteful cost factor that can be significantly reduced to increase profitability of an organization. The ISO documentation process helps to prune cost of quality in addition to augmenting the internal efficiency of an organization. It also helps in achieving TQM in a phased manner.