PROJECT CASE STUDY

IMPLEMENTATION OF ISO 9001

FAUJI FERTILIZER BIN QASIM LIMITED
SUBMITTED TO:
SIR ABDUL BASIT
SUBMITTED BY:
Hammad Haider
Ammar Ahmed
Saba Aziz
Ibrahim Ali
Saqib Altaf

CLASS: BBA-8(A)

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 Table of Contents
Implementation of ISO 9001 on FFBL

Abstract............................................................................................................................................4
Overview Fauji Fertilizer Bin Qasim Limited.................................................................................5
REASONS FOR SEEKING CERTIFICATION..............................................................................5
THE QUALITY SYSTEM..........................................................................................................5
The quality system before ISO.................................................................................................5
The quality system after I.S.O..................................................................................................5
Implementation of ISO 9001 techniques in Fauji Fertilizer Bin Qasim Limited............................6
A) Customer focus:....................................................................................................................6
B) Leadership:...........................................................................................................................7
C) Engagement OF people :......................................................................................................7
D) Process Approach :...............................................................................................................7
E) Improvement:........................................................................................................................7
F) Evidence Based Decision making:.......................................................................................8
G) Relationship Management :..................................................................................................8
Quality Issues at Fauji Fertilizer Bin Qasim Limited (FFBL).........................................................8
1) Procured material quality control is weak:...........................................................................8
2) Plants are old as compared to the competitors:....................................................................8
3) No separate labs for checking procured material:................................................................9
4) Tall hierarchy creates communication difficult:...................................................................9
5) Lack of evaluation:...............................................................................................................9
6) Poor new product reliability.................................................................................................9
7) Damage to environment:.......................................................................................................9
Recommendations for the Quality Issues at Fauji Fertilizer Bin Qasim Limited (FFBL)..............9
Procured material quality control is weak:................................................................................10
Plants are old as compared to the competitors:..........................................................................10
No separate labs for checking procured material:......................................................................10
Tall hierarchy creates communication difficult :........................................................................10
Lack of evaluation:.....................................................................................................................10

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 Poor new product reliability:......................................................................................................11
Environmental safety:................................................................................................................11
LESSON LEARNED.....................................................................................................................11
IMPACT OF ISO 9001 IN FAUJI FERTILIZER (BQL):.............................................................11
Benefits to Fauji fertilizer organization.....................................................................................12
Benefits to Fauji fertilizer (BQL) customers:............................................................................12
PLANS FOR THE FUTURE.........................................................................................................12
References......................................................................................Error! Bookmark not defined.

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 Abstract

Total Quality management is not a technique but its a holistic philosophy of a

company that goes over everywhere around the organization with an-intend to
provide the organizations customers with products and services that satisfy
their specific needs. For every business success depends on its quality
structure and its important for every business to set their quality standards in
order to meet their customer needs and for their long term success. In this
essence there are a lot of quality standards but in this case we are focusing on
ISO 9001 & ISO 14000 and we had to examine these standards on FAUJI
FERTILIZER BIN QASIM against the back drop of Total Quality
Management.

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SECTION 1:
Overview Fauji Fertilizer Bin
Qasim Limited
The Company started out in 1993 as Fauji
Jordan Fertilizer Company (FJFC), a joint
venture of Fauji Foundation. At that time it
is the largest producer of fertilizer with the
capacity of 1,670 metric tons per day of
Granulated Urea and 1,350 metric tons of
Di-Ammonia phosphate (DAP). FFBL plant
site is a modern Granular Urea and Di-
Ammonia Phosphate (DAP) fertilizer
manufacturing complex, built at a cost of
US$ 468 million and located on 350 acres in
the Eastern Zone of Bin Qasim, Karachi.
They are sole producer of DAP and Granular
Urea, it is making a significant contribution
towards agricultural growth in the country,
by meeting around 50% of the demand of
DAP and about 10% of Urea in the domestic
market. They are the first Pakistani
Company to enter into a Joint Venture
Project for Phosphoric Acid with Morocco
in 2008. This has proven to be a huge asset
for the company. They continue to sustain
growth strategically. FFBL is so committed
and dedicated, they continue to strive for
excellence collaboratively. FFBL take the
social responsibility on themselves, it is the
primary concern of FFBL,they have
distinguished themselves as a good
neighbor, not only they consistently
delivered outstanding returns to
shareholders, but they strive hard to be a
good employer, to be a catalyst for the social
and economic development of the
communities in which they operate, and aim
to minimize environmental impact. In Nov
2010, a long-term CSR Program was
launched in collaboration with a renowned
NGO, Human Development Foundation
(HDF) As per MOU the NGO has to
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implement all program activities in Ghaggar
Phattak Bin Qasim Town, Karachi.
SECTION 2:
REASONS FOR SEEKING
CERTIFICATION
According to Major Malik the supply chain
analyst at FFBL, for fauji fertilizer quality
was considered to be the fundamental
requirement for their long-term survival and
to compete in a new local and international
markets. The main aim for certification was
seemed to be the need for developing an
effective quality system.
FFC believed that certification from the
I.S.O establishes an effective system which
can improve their business performance as
well as their product quality.
2.1) THE QUALITY SYSTEM
2.1(a) The quality system before ISO
Before the implementation of I.S.O: quality
was recognized as only meeting the
customer specifications for FFC. Its quality
system was only emphasized on a problem-
solving approach which was unstructured
and function oriented. Their standards
operations, working conditions and
instructions were inadequate and the quality
component of document control was
inadequate. Some were obsolete and they
were not investigated routinely. The
procedure was a continuous change over
numerous years, which along these lines
included distinctive supervisors and which
catered for the changing prerequisites of
ISO. Be that as it may, a few methodology
were set up in specific areas, for example,
the Lab facility for scouring.
2.1(b)The quality system after I.S.O
After ISO execution, they had accomplished
a total cultural change: everyone was
responsible for quality. And this
responsibility was delegated to the lowest
hierarchical level. In a quality administration
program, quality was characterized as
addressing clients' needs and wishes and was
implicit thus of aggregate duty. The critical
thinking methodology was organized,
participatory, and handle arranged (cross-
useful). The organization built up a quality
confirmation office which was accountable
for the accompanying work:
SECTION 3:
Frame Work Designed by Fauji
fertilizer Bin Qasim for
Implementing ISO 9001
3.1 Formation of Cross functional Team:
Cross Functional team was formed by
specialists of the Consultant Company and
managers of all departments. The managers
meet on daily basis to discuss the important
measures or the steps needed to take into
account for the implementation and they
also discuss the after effects everything was
discussed in black and white that what will
be the cost, benefit and the future benefits
for the organization
3.2 Communication to The
Staff:
responsibility for communicating the
importance of ISO implementation was
given to the consultants or the training
Agency
3.3 Making of Manual and Leading an
Internal Audit: The Team Members along
with the Certification Agency members
worked day and night for the issuance of the
training manual, the manual basically was a
guidelines in order to communicate the staff
to all the levels, the manual will be a guiding
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step as to how to implement the attest
techniques or the methodology to work, the
Manuals will be focusing on hows.
3.4 Receiving Certification: One of the
milestones in the success of FFBL is its
accreditation of ISO certification, which was
achieved in Mar 2006 for both the Head
Office and Plant site. The UKAS
international body having office in London
granted this certificate to FFBL because of
the continued satisfactory performance in
both the office and the plant site. The
international body also certifies that the
processes used in the firms are as per the
international standards and the organization
if found violated the rules and regulations
will be dis-qualified and will be black-listed
in the UKAS, list.
SECTION 4:
Implementation of ISO 9001
techniques in Fauji Fertilizer Bin
Qasim Limited
The seven quality management principles
are:
QMP 1 Customer focus
QMP 2 Leadership
QMP 3 Engagement of people
QMP 4 Process approach
QMP 5 Improvement
QMP 6 Evidence-based decision
making
QMP 7 Relationship management
4.1 Customer focus: After having the brief
interview with SCM section manager he
enforces that it is FFBL top priority to
deal customers with care and to deal
them with utmost fair means and provide
them quality material they need, Fauji, s
main customers are the Farmers because
 they will use the fertilizer in the crop
production .Fauji tries to maintain
contacts with them, through telephone or
personal visits to the sites. Fauji listen
and answers to their queries also.FFBL
Plan, design, develop, produce, deliver
and support goods and services to meet
customer needs and expectations and
provide quality fertilizer which not only
boost the crop yield but also helps the
land to increase its fertility.FFBL aims to
maintain long term and good relations
with its customers and therefore also
organize vocational trainings program in
order to provide them with the
awareness.
4.2 Leadership: At FFBL there is a culture
of eternal trust and value, FFBL claims
to be an equal opportunity Employer and
therefore at all levels there is open level
of communication. The managers are
connected to lower levels staff and they
answer and ask if the production staff
have some query regarding the operation
and functioning of machines or
whatsoever the issue is .As FFBL is run
by retired Army personnel so they have a
system of ethical and moral values also.
No one is given edge or superiority over
other and they have a policy of
accountability at all levels whether at the
top most position or the lower level
position. The group leaders/managers are
empowered and provided with all the
necessary resources that they need
during that course of work. The authority
is provided to the designated staff but
again there is a system of accountability
too
4.3 Engagement OF people : As told earlier
Fauji have a culture of Enhanced trust
and collaboration throughout the
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organization, they engage their workers
at all levels , the workers are motivated
to work for the larger interest of the
organizations and not to think for
individual benefit but as a firm as
whole .There is both on the job and off
the job training given to develop and
polish the organizational skills of
employees .There is absolute
empowerment and the vision mission
and core activities are translated and
shared with the common people so that
every staff must be on-board and FFBL
truly promotes collaboration and heavily
relies on involving employees to the
accomplishment of its primary objective.
4.4 Process Approach : At FFBL
specifically the higher authority and the
management focuses on Consistent and
predictable outcomes through a system
of aligned processes the process are not
taken in isolation rather than the outputs
are inputs for the other processes and
hence therefore FFBL considers
important that all activities should be
aligned and in the end should tie up with
the corporate policy or the mission of the
organization .What FFBL does it that
they recognize and analyze the resource
constraints that they might have before
opting for the work. FFBL Manage risks
that can affect outputs of the processes
and overall outcomes of the quality
management system through the proper
monitoring phase and hence the process
that are faulty will not be continued
anymore and shall be start from the
beginning again .
4.5 Improvement: like any other Successful
organizations have an ongoing focus on
improvement FFBL undoubtedly
possess a culture and an environment of
 continuous improvement which is the
main and absolute function of TQM , the
upper management promotes and spread
a spirit of improvement in there
processes policies , work load , Human
resource policy and many more. On
daily basis they encounter different
challenges yet they didnt divert
themselves from their main focus which
is providing quality fertilizers through
the best chemicals proper mechanisms
that will enhance the fertility and crop
yield as well.
4.6 Evidence Based Decision making: At
FFBL they have a policy of
Determining, measuring and monitoring
key indicators to validate the
organizations performance. The
management Make that all data needed
available to the relevant people.
Furthermore they also ensure that data
and information are sufficiently accurate,
reliable and secure. Moreover the
organization Analyze and evaluate data
and information using suitable devices.
Ensure people are experienced to
analyses and evaluate data as needed.
Make decisions and take actions based
on evidence, balanced with experience
and sensitivity. All the work is done on
the basis of numeric data and anything
that does not satisfy the proper data
evidences is not valid and is not taken
into account therefore her at FFBL there
is strict compliance with the fact and
figures .
4.7 Relationship Management :At FFBL they
ensure and it is there main objective that
they possess A well-managed supply
chain that provides a stable flow of
goods and services and for balancing the
supply chain there need to be effective
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relationship between tall the partnering
neighbors or the chain members in the
whole Supply chain .FFBL promotes
dialogue and discussion policy with all
its stakeholders whether they are their
customer , their suppliers , their
shareholders , their employees or the
society members who owns or are
affected by the organization .
SECTION 5:
Quality Issues at Fauji Fertilizer
Bin Qasim Limited (FFBL)
5.1 Procured material quality control is
weak: It is a usual concept that in any
organizations there is a procurements
departments and for any firm in order to
function the items are needed to be
procured which are either used directly
in the production process or there are
some indirect materials such as
stationery or other miscellaneous items.
Here at FFBL according to the supply
chain section manager the items that are
procured other than the chemical needed
for the making of fertilizer not of the
said quality and sometimes it effects the
functioning of the machines which may
result in the process halt for example if
the FFBL procures Shell helix oil it does
not check before putting it in machine
that whether this lubricant will support
the machinery or will work for longer
time but they just use it believing that
what the company Shell claims is
hundred percent true and once a steel
pipe was procured for some industrial
usage and afterwards the company came
to know that this was not 100 percent
steel and eventually it resulted in the
breakdown of that pipe and the
 manufacturing process stopped for some
hours.
5.2 Plants are old as compared to the
competitors: According to the section
manager SCM, the plants that are being
used in FFBL are very old and they are
depreciating time to time and within a
passage of time if not given proper
attention to them will totally become
obsolete or will not be able to produce
the optimal level. The plants should be
replaced as Engro fertilizer are using
new plants which are very new as
compared to FFBL .The FFBL only has
the industrial paint on annual basis but
thats just not enough .There is a right
time that old machines should be
replaced with new ones.
5.3 No separate labs for checking procured
material: FFBL does not have its own
very own lab for material testing that
have been procured whether they are
optimal and fit to be used in the
production process .Because sometimes
it happens that the quality claimed is not
up to mark and products are not checked
before being inserted into machinery
.The competitors of Fauji fertilizer have
their own separate labs which make
them stand out.
5.4 Tall hierarchy creates communication
difficult: Fauji Fertilizers follows a tall
hierarchy which are as follows section
manager , manager , senior manager ,
director and then it follows on .Due to
this hierarchy system that Fauji follows
the communication becomes very
difficult and it is very difficult for the
engineer or lower level employee
working in the plant to pass-on the
message to higher level officer and as it
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takes longer time for the message to
pass-on and as it is much time-
consuming activity so it usually happens
that the wrong message is delivered
which can lead to reduce the
effectiveness of the overall process
5.5 Lack of evaluation: Successful
organization search for their problems,
issues on entire company and take
feedback from their lower management
because lower management knows better
what problems they face in their
manufacturing process and other system
of organizations so that they can resolve
their problem and improve the process
which leads them to excellence. But
unfortunately fauji fertilizer ignore these
opportunities, they dont take feedback
from their employees which hinder their
performances. Fauji also lacks taking
feedback from their potential customers
who are farmers , the company should
take proper classes and should introduce
such measures which would encourage
to take some insights from them
5.6 Poor new product reliability : The FFBL
main product is white fertilizer and black
fertilizer .The black fertilizer is there to
make the land fertilize and make it
suitable for planting while the white
fertilizer is for boosting and increasing
the crop yield which will enhance and
make the crop grow more and more .but
in recent days as per the manager the
white crop could not result in proper
functioning and several farmers
complaint that this was no as affective as
it used to be a year ago because the crops
output was just normal
5.7 Damage to environment: Due to
emissions of gases and hazardous
 substances the health of the employees
gets affected and due to this the ratio of
workers working in the plant who gets
absent due to poor health increases and
due to this reason what happens
ultimately is loss in production and there
is a damage to the environment as well
because that gases also damages our
ozone layer and is a cause to global
warming all around the city .These gases
are also common causes of Heat wave
also.
SECTION 6:
Recommendations for the Quality
Issues at Fauji Fertilizer Bin Qasim
Limited (FFBL)
6.1 Procured material quality control is weak:
As per the recommendation suggestion that
we being the researcher would like to say
that FFBL should develop a proper
procurement department though, they
already have one but a proper department
with a procurement demand and rules should
be there which should constitute of the
following things like in other corporate
firms.
6.2 Plants are old as compared to the
competitors: After going through a detail
analysis on the FFBL machinery it was
observed that the machines which are being
used are very old and are from the very old
era of late 50s and 60s though they are
being repaired on an compassionate ground
but as we see that world is progressing at a
very rapid pace so more efficient and better
machinery is required which will result in
more effective outcomes with low-fuel cost
and more profit can be achieved through
effective measures. If we look at the
maintenance system of FFBL it is quiet good
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As follows:
Preventive Maintenance: Periodic
maintenance (as per OEM
guidelines).
Predictive Maintenance: Condition
monitoring / Field data analysis.
Corrective Maintenance: On-line and
shutdown maintenance.
Machinery is very old the methods are
very good to operate more effectively
they should come up with modern
technology and machines used for more
results by other majors firms like Engro
fertilizer uses modern and advance
machines it should be adopted by FFBL
as well. More effective and better
machines will not only increase revenue
or save cost but it will also make the
work easier for people for whom that
was a very difficult task to do.
6.3 No separate labs for checking procured
material: If you are making a specific
product and that is your core component so
necessary measures for the quality checks
should be there because if the product does
not meet the desired expectation of the
customer you might lose your market share
and business so, in order to save this chaos
FFBL after research analysis should make
proper labs that should inspect the type of
material and standards of the operations are
being followed or not. like for fertilizer right
proportion of Nitrate of soda ,
Superphosphate , copper sulphate ,
Manganese sulfate etc. all of these chemicals
should be check and should be used as per
the requirement of the production standards .
6.4 Tall hierarchy creates communication
difficult: As mentioned earlier the
organization is working on old norms and
Communications barriers lead to many
problems such as inaction : a false message
could lead to fail to act , Misinterpretation :
it can lead to the falsely act to person which
should not be performed or negative image
is established at times , Bad work
relationship : lead to disengaged and even
conflicting relationships among colleagues,
or between supervisors and subordinates if
there will be no effective communication
then distorted or unclear messages delivered
will cause problems for the organization so ,
there should be an operating system which
every employees could you most of the
technical or officials while for the lower
which there messages should be forwarded
in terms of voice message or calls because
they are not skilled and cant use the system
properly so this would make the
organization for appropriate and effective.
6.5 Lack of evaluation: Evaluation is the key
to a successful organization because if you
would not take the feedback you will
eventually be at a great risk of organization
downfall. FFBL does not have a system in
which you evaluate or take recommendation
form the lower management neither from the
middle management as guided by the upper
management organizations works according
to that. To meet the requirement, the
Company introduced a comprehensive
confidential questionnaire covering boards
composition / scope, its objectives /
functions, companys performance and
monitoring etc. The Board evaluated all the
factors in depth and based on inputs received
from the Directors all the aspects were
evaluated.
6.6 Poor new product reliability: As the
environment and weather conditions have
changed so does it had made its impact on
the soil of the earth. So changes have been
there and the FFBL has not adopted the new
methods with the changes in the earth as
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other companies had they are still working
on the same method which is obviously not
resulting in the better results which are
obviously not fruitful for the organization.
New methods with good approaches should
be adopted as it results in better outcomes.
6.7 Environmental safety: FFBL recognizes
its responsibility towards protecting,
preserving and improving the environment
since commissioning of its Ammonia, Urea
and DAP plants. FFBL management
believes that protecting
the environment is not only an ethical and
legal obligation but also a mechanism for
success. FFBL certified for Environmental
Management System (ISO 14001:2004) in
2006 to strengthen its dedicated efforts
towards the prevention of pollution in air,
water and soil. FFBL is forerunner fertilizer
industry in the country which opted for
environment friendly Phosphate based
cooling water treatment program. There is
still a lot of work that needs to be done in
order to save the environment and resulting
causes that would be taking place after the
hazardous gases, as these things causes the
depletion of ozone layer so CFC emission
free substance should be used besides
chemical waste causes various problems in
the society for that proper treatment facility
should be used where they should turn that
waste into an useful resource of energy.
SECTION 7:
LESSON LEARNED
The supply chain manager of Fauji Fertilizer
Bin Qasim Ltd Major Malik Muhammad
khan stated the importance of ISO 9001 and
focuses on the need to adopt quality systems
which are appropriate for Fauji Fertilizer
Company. Furthermore he stated that quality
management system enable your company
to approach perfection. As when processes
improve, it become more consistent, and
then you achieve your target objectives with
greater regularity and then you will see
tangible results and in end your process
waste will decrease as the waste is money
which is lost forever and waste will lead to
have poor quality and inefficiency but
implementing ISO 9001 will improve
efficiency, reduce waste and will save the
money of the organization.
SECTION 8:
IMPACT OF ISO 9001 IN FAUJI
FERTILIZER (BQL):
The supply chain manager of Fauji Fertilizer
Bin Qasim Ltd Major Malik Muhammad
khan share his experience of quality system
implemented and stated that quality
management system based on ISO 9001 has
been very affirmative and constructive for
the growth of our company. It has provide
plenty of benefits for both organization as
well customers of Fauji Company (See
exhibit 1.1).
Following are some of the benefits.
8.1 Benefits to Fauji fertilizer organization
ISO 9001 Provides senior
management with an efficient
management process
Implementing ISO 9001 will lead to
Set out areas of responsibility across
the organization
Communicates a positive message to
staff and customers
Identifies and encourages more
efficient and time saving processes
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Highlights deficiencies
Reduces the costs
Provides continuous assessment and
improvement
Marketing opportunities
8.2 Benefits to Fauji fertilizer (BQL)
customers:
Improved quality and service
Delivery on time
Right first time attitude
Fewer returned products and
complaints
Independent audit demonstrates
commitment to quality
(See exhibit 1.2)
SECTION 9:
PLANS FOR THE FUTURE
FAUJI understood that ISO 9001 affirmation
was not the finish of adventure. Rather, it set
up the base whereupon the quality
superstructure ought to be constructed, not
just as a way to pick up attention and
attractiveness additionally to accomplish
persistent quality change.
MR. Khan underlined that the quality
framework introduced in consistence with
ISO 9000 must be intended to expand
effectiveness, profitability and to accomplish
persistent change in quality. The Plants at
Bin Qasim facility are totally certified under
ISO 9001 and the plants have been certified
according to proper quality management
principles but What Supply chain manager
believes is that there were still some
loopholes which they highlighted which
needs to be sorted out through a mechanism
of proper evaluation and monitoring tool.

SECTION 10:
References:

http://asq.org/learn-about-quality/total-quality-management/overview/tqm-history.html
http://www.philipcrosby.com/25years/read.html
http://www.iioc.org/external-reports/total-quality-management-iso-9000-certification-and-performance-
improvement/
https://www.iso.org/the-iso-story.html
http://www.qualitymag.com/articles/88303-management-the-future-of-quality-iso-standards
http://www.ffbl.com/ffbl/FFB__Annual_Report_2014_complete_final%20-%20Copy%20(2).pdf
Fauji fertilizer annual report of 2015

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SECTION 11:
Exhibits:

1.1

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1.2

15
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