Quality management report - May Fair Industrial Co. ltd.

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Presented by: Alfred Yeung

(Administrative Executive)

Foreword

The year 2005 is coming. The Hong Kong's economy is recovering in a healthy speed. "Strong economic ties with the Mainland, especially with the Pearl River Delta (PRD), now form one of Hong Kong's fundamental strengths."(Hong Kong Government 2004) The Closer Economic Partnership Arrangement (CEPA), bring a great advantage for Hong Kong companies.

"The Agreement eliminates substantial trade and investment barriers between Hong Kong and the Chinese Mainland."(TDCTrade.com 2003) Two hundred and seventy-three types of products, which is including plastic products (toys) and metals products, can enjoy tariff-free importation, which is qualified as "made in Hong Kong" (30% value-added rule). As consequence, CEPA attracts a large number of foreign companies to setup their distribution centre in Hong Kong, which is the step stone toward China market. These are the business chance for local companies to do business with those international organizations.

Getting these opportunities must satisfy the customers' needs. Good preparation is the key aspect that about get the chance or not. The grade of quality is the definition of good preparation; and the International Organization for Standardization's ISO 9000:2000 serious is the way to upgrade the quality.

Table of Contents

Foreword 1

Table of Contents 2

. Summary 4

2. Introduction 5

2.1 Company Background 5

2.2 Company Structure 5

2.3 Business Review 6

2.4 Business Outlook 6

2.5 Things to concern 6

3. ISO 9000 Overview 7

3.1 Comparison 8

4. Implementation of ISO 9001:2000 10

4.1 General 10

4.2 Quality Management System 11

4.2.1 Establish Quality System 11

4.2.1 Document Quality System 11

4.2 Management Responsibility 12

4.3.1 Management commitment 12

4.2.2 Satisfy the customers 12

4.2.3 Develop the quality policy 12

4.2.4 Planning 13

4.2.5 Control 13

4.2.6 Management review 13

4.3 Resource Management 14

4.3.1 Supporting of quality resources 14

4.3.2 Provide quality personnel 14

4.3.3 Infrastructure 15

4.3.4 Environment 15

4.4 Product realization 15

4.4.1 Monitor realization planning 15

4.4.2 Customer-related process 16

4.4.3 Product design and development 16

4.4.4 Purchasing 17

4.4.5 Operational activities 17

4.4.6 Measuring and monitoring devices 18

4.5 Measurement, analysis and improvement 18

4.5.1 General 18

4.5.2 Monitor and measure quality 18

4.5.3 Control of nonconforming product 19

4.5.4 Analyze of quality information 19

4.4.5 Improvement 20

References 21

. Summary

Our company has already passed the worst four years. As one of the most famous company of design and manufacturing of paints and thinners in Hong Kong, we need to keep our advantage of our brand name and increase our market share in the coming future.

The competition of the market is increasing day by day. The customers are no longer concerning only about the price, but also the quality of the products. Especially when the price of the raw materials, fossil fuels by-product, is rising continuously. The customers tend to switch between competitors for better services, products and prices. Therefore, it is the time for us to enhance our company's competitiveness and the customer loyalty by upgrading our quality. To achieve this goal, the first step we must do is to qualify our company for a quality award, which is ISO 9001:2000.

The report is going to emphasize on the benefits ISO 9001: 2000; what should we do to get it. The report will also consider the long run of the business by introducing the extension of ISO 9001: 2000, which is ISO 9004: 2000.

At last, the report will also explains the barriers for implementing the ISO 9001: 2000, which will specially focus on the language problem.

2. Introduction

2.1 Company Background

May Fair Industrial Company Limited (May Fair) is a well known coating company in Hong Kong. May Fair is developed in 8-1-1978, which originally is chemical materials trading company. In 1983, May Fair started to produce there own coating, which was the "Cabinet Coating" serious. In middle 1980's, May Fair established the manufactory in Dong Guan, China.

As at September 31 2004, the company has employed approximately 350 employees, and established three main production lines (Plastics Coating, Baking Enamel and Architectural and Protective Coating.)

2.2 Company Structure

2.3 Business Review

Guang Dong, Mainland China and Hong Kong are the major market of our business, which is fifty fifty, with few clients that from Singapore and USA after the CEPA arrived. There are two typical products, Plastics Coatings and Baking Enamel, share the 70% of the revenue. After the CEPA affective, the demand of these two products tends to rise even more.

The third major product, Architectural and Protective Coating, is gradually recognized by the major buildings constructors, well known by building services' field.

2.4 Business Outlook

Due to the implementation of CEPA, cancel the tariff for products that "Made in Hong Kong", many organizations establish there distribution centre in Hong Kong. The demand of our products, Plastics Coating and Baking Enamel, is forecasting to be rise 20%. The demand of minor products that can be used on plastic and metal, like Industrial Coating, tend to increase as well.
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On the other hand, the potential market of Architectural and Protective Coating is huge. The Housing department of Hong Kong Government is recruiting more coating suppliers for the re-paint of public housing and building. To earn the government tenders, quality of the products are crucial.

2.5 Things to concern

As mentioned before, the customers tend to switch between competitors. The only way to keep the current clients and establish new business is to satisfy their needs. To ensure the satisfaction of our customers, we need to fulfill their requests, provide good services and good quality of ...

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