1. Operation Management
Project Report
Quality Management System (QMS)
Business Information Technology System
in Mahindra Finance
Submitted To:
Prof. A. B. Raju
Submitted By:
Pramod Paswan
Roll No.: 092137
Submitted on: February 26, 2010

2. Table of Contents
1. Introduction…………………………………………………………………………..2
2. IT Infrastructure in Mahindra Finance – Gujarat…………………………………….4
3. ISO 9001:2000 concept………………………………………………………………4
4. The benefits of implementing ISO 9001……………………………………………..4
5. Requirement and Maintaining ISO 9001:2001 Standards in Mahindra Finance –
Business Information Technology System (BITS) .............…………………………5
6. Quality Management System ……………………………………………………..…5
a. General Requirements……………………………………………….………5
b. Documentation requirements…………………………………….………….5
7. Management responsibility…………………………………………………….…….6
a. Customer focus………………………………………………………………6
b. Quality policy & Planning……….…………………………………………..6
c. Responsibility, authority and communication……………………………….7
d. Management review…………………………………………………..……..7
8. Resource management…………………………………………………….…………7
a. Provision of resources…………………………………………...…………..7
b. Human resources……………………………………………………...……..8
c. Infrastructure……………………………………………………………..….8
d. Work environment…………………………………………………………..9
9. Product Realization Requirements…………………………………….……………..9
a. Planning of product realization…………………………………..………….9
b. Customer-related process…………………………………………….….…10
c. Purchasing………………………………………………………………….10
d. Production and service provision……..……………………………………10
e. Control of monitoring and measuring device…………………..………….11
10. Measurement, analysis and improvement requirements…………………….……12
a. General……………………………………………………………..………12
b. Customer satisfaction……………………………………………..………..12
c. Internal audit………………………………………………………………..13
d. Monitoring and measurement of processes…………………….…………..13
e. Control of nonconforming product…………………………………………13
f. Analysis of data……………………………………………………….……15
g. Improvement……………………………………………………….………15
11. References……………………………………………………….…….…………16
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3. Introduction
Mahindra & Mahindra Financial Services Ltd (Mahindra Finance) is one of
India's leading non-banking finance companies focused on providing
finance for utility vehicles, tractors and cars in the rural and semi-urban
sector. Mahindra Finance is a subsidiary of Mahindra & Mahindra, a
leading tractor and utility vehicle manufacturer. The company has
positioned itself between the organized banking sector and local
moneylenders, offering customers competitive, flexible and speedy
lending services and has customized packages for customers’ every need.
Mahindra Finance has a network of over 2500 employee and 443 branches
covering more than 80% of the districts in India. It has entered into more
than 600,000 customer contracts and has disbursements of around Rs.
20000 crore since inception. Maruti Udyog has an agreement with MMFSL
to extend its services for their products. Besides, HPCL has also chosen to
partner with the company to establish MMFSL outlets in selected petrol
stations owned or franchised by them. Mahindra Finance has CRISIL
rating of FAA+. Almost all the top mutual funds in the country have
reposed their trust in the company and have invested in it. Mahindra
Finance listed on National Stock Exchange of India Limited and Bombay
Stock Exchange Ltd. on March 17, '06.
Mahindra & Mahindra Financial Services, with its business cemented in
rural and semi-urban India, wanted to expand its reach and quicken the
delivery of its services across remote areas of the country. Its 300
branches across India are online and connected through lease line, VSAT
and ISDN connectivity. Its IT department named “Business Information
Technology System” played a vital role to reach its rural customer and it
has been certified by ISO 9001:2000 for its quality service.
Instead of setting up more branches to cover rural India, BITS team
transformed about 3,000 of Mahindra Finance's on-field workforce into
roaming mini-branches. Armed with wirelessly online handhelds, this
mobile workforce ensures that Mahindra Finance reaches the doorstep of
its consumers, living in far-flung villages or semi-urban locations. They
also act as mini-branches equipped to conduct financial transactions and
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4. update the central servers at the company's headquarters in Mumbai, all
in a jiffy. The IT team enabled the enterprise to increase Mahindra
Finance's 300-odd fully networked branches to a whopping 3,000 in less
than nine months. And that was achieved - without any investment in
brick-and-mortar infrastructure or headcount. This networked mobile
workforce initiative promised to take care of all Mahindra Finance's
problems. About 2,800 employees were equipped with Wi-Fi and GPRS
enabled, VisionTek handhelds, running Linux as an operating system, and
weighing about 750 grams. The handheld was pre-loaded with
indigenously developed custom-made, multi-lingual business application
modules to capture on-site data and update the central servers directly
through the Internet.
With handhelds at their disposal, a collection executive gets details of the
consumers beforehand, enabling him to plan his time and route
appropriately. Once on-site, he can either issue receipts to the consumer
from the attached thermal ink printer after collecting an EMI payment. He
can also create information trails, address business queries, record
customer commitments and note relevant information for further follow-
ups, undertaken with the customer at his doorstep.
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5. IT Infrastructure in Mahindra Finance - Gujarat
Including these Mahindra finance has 250+ computer systems, 50+
laptops, 60 handheld machines, 15 MFPs, 50 printers along with WAN
devices with 33 branches (28-online). Some of the executive have PDAs.
Managing these IT setup is quite challenging and in is most when to
maintain ISO standards. We are providing 24 hour service support for any
of these gets down. The toughest job is to give support to remote location
where field executive are use to carry the handheld (mobile) GPRS
enabled devices. The data they use should be updated on daily basis. Any
downtime will lead to great disaster in collection and may reflect in
reports too.
In Gujarat, these 33 branches have around 500 employee who are
accessing data and information form these IT resources, so it need to be
up most of the time.
ISO 9001:2000 concept
ISO 9001 is the internationally recognized standard for the quality
management of businesses. It applies to the processes that create and
control the products and services an organization supplies. It prescribes
systematic control of activities to ensure that the needs and expectations
of customers are met. It is designed and intended to apply to virtually any
product or service, made by any process anywhere in the world.
The benefits of implementing ISO 9001
Implementing a Quality Management System will motivate staff by
defining their key roles and responsibilities. Cost savings can be made
through improved efficiency and productivity, as product or service
deficiencies will be highlighted. From this, improvements can be
developed, resulting in less waste, inappropriate or rejected work and
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6. fewer complaints. Customers will notice that orders are met consistently,
on time and to the correct specification. This can open up the market
place to increased opportunities.
Requirement and Maintaining ISO 9001:2001 Standards in Mahindra
Finance – Business Information Technology System (BITS)
There are some terms and policy for maintaining ISO standards to follow
it. Mahindra Finance is also following the same ISO 9001:2000 standards.
These are described below regarding each of the policy, terms and
measurement.
The requirements of the ISO 9001:2000 standard are organized into the
following five sections:
1. Quality Management System
1.1. General Requirements:
The Quality Management System (QMS) is the collection of
processes, documents, resources, and monitoring systems
that direct the work of an organization regarding product and
service quality. The organization needs to establish,
document, carry out, and maintain this system to meet the
requirements of ISO 9001:2000. Mahindra Finance’s BITS
have all the necessary documents, recourses and monitoring
system.
1.2. Documentation requirements:
BITS have all the IT policy documents like, e-mail creation,
deletion, modify. User access policy like who will access
which data or resource, what rights they have. Internet
usage policy including who will allowed to access internet and
what is the requirement for accessing those, which websites
they require to use. For e.g. HR will access recruitment &
consulting sites whereas marketing people would access to
research sites. Apart we need to keep purchase record,
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7. quotes, asset details, vendor proposal and sales report in
case of disposed asset. We also have various IT quality
manuals like what dos and don’t. These documents are
available in both soft as well as hard form.
2. Management responsibility
2.1. Customer focus
Top management is also involved in the activities going on.
They are supposed to se the QMS report and analyze how
effective things are going on. For this purpose we have some
reporting method for everyday activity. They have web portal
consists of a dashboard where they can see the consolidated
report. The basic purpose is to satisfy the in-house customer
i.e. the users which are accessing the IT resources. We use
to resolve all the calls which come from users across Gujarat.
Here is one of the examples (fig. below) of that. Most of the
calls are soveld in less than 30 minutes. Our call resolution is
around 99.7%
2.2. Quality policy & Planning
Regular analyzing and reviewing the policy is very essential
for effective usage and maintaining ISO standards. Plan the
QMS so that the quality objectives are met and so the system
6

8. continues to work as it is changed to incorporate
improvements.
2.3. Responsibility, authority and communication
Role and responsibility are very well defined for each
individual. The authority they have is well defined and is
communicated regularly from higher authority if any
amendment needed. Our immediate authority are responsible
for the monitoring the reports and processes which we follow.
2.4. Management review
Top management is required to regularly review certain
aspects of the QMS to make sure that the goals are being
achieved and to look for ways to improve the QMS. The
review must cover suitability, adequacy, and effectiveness of
the QMS. We have monthly review with our immediate senior
and in discuss the points which are covered are: internal
audit results, Customer feedback, How well processes have
been working, How well products have been meeting
requirements, status of previously identified problems, Items
identified for follow-up in previous management reviews,
Planned process or product changes that could affect quality,
recommendations for improvement generated through the
operation of the QMS
3. Resource management
3.1. Provision of resources
All the IT resources are for utilizing efficiently and
maintaining better QMS. An in case for requirement of new IT
7 asset than we use to purchase through proper policy. These

9. all are for maintaining better QMS and these are building and
maintaining the QMS, continually improve the effectiveness
of the QMS, and to meet customer requirements.
3.2. Human resources
People performing work affecting product and service quality
must be competent to carry out that work. This competency
is attained through a combination of education, training,
skills, and experience. In Mahindra Finance few are the
initiatives are taken in terms of training are:
Identify the talents, skills, knowledge, and capabilities
each person needs to carry out their assigned
responsibilities,
train or otherwise assist people to meet these identified
competencies,
assess the competency of each person to carry out their
responsibilities,
Make sure each person understand how their work
contributes to the quality of products and services and to
meeting quality objectives.
keep records of each person's education, training, skills,
and experience
3.3. Infrastructure
The infrastructure for a QMS includes the building,
workspace, equipment, and the supporting services involved
in creating the organization’s products or services. The
organization will need to determine, provide and maintain the
infrastructure needed to achieve the planned results. In
Mahindra Finance we have well setup and fully furnished
infrastructure, specially BITS. Latest system and respective
software along with their license are available.
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10. 3.4. Work environment
The work environment of the organization must not interfere
with the ability of employees to perform effectively in order
to meet quality requirements. The BITS department of
Mahindra Finance is quite separate with other department as
it has very critical devices. It is infect beneficial for BITS to
not get interference from other department.
4. Product Realization Requirements
4.1. Planning of product realization
Product realization is the term used to describe the work that
the organization goes through to develop, manufacture, and
deliver the finished goods or services. An effective Quality
Management System (QMS) includes a comprehensive
approach to getting from the product concept to the finished
product. This approach, sometimes called a quality
plan, includes the following:
product requirements and quality objectives,
creation of the processes, documents, and resources
needed for product realization,
required verification, monitoring, inspection, and test
activities,
The records to be kept.
In Mahindra Finance we have some sort of process &
procedure for IT purchase, delivery, usage, after sales
support (services) etc. We also have quarterly internal
audit of IT assets which includes how much of IT
resources are in use, idle, out of order, disposed,
purchase orders copy, invoice copy, delivery chalan and
SLAs with vendors.
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11. 4.2. Customer-related process
Customer means in BITS are the in-house users who are
accessing these resources. The Standard requires the
organization to determine product requirements. These
requirements can come from the customer, may be
mandated by laws or regulations, and include generally
accepted standards within your industry or market.
Requirements are established by standard contracts or oral
agreements that the sales department uses in discussions
with customers, and other sources. The customer
requirements are reviewed regularly and communicating to
the users who have generated the requirement. We have
proper channel from requirement processing to purchase,
estimation, delivering, development, services and support.
4.3. Purchasing
We (BITS) needs to ensure that purchased products and
services meet purchasing requirements. The purchasing
group must establish criteria for how they evaluate and
choose suppliers. These criteria must be based on the
suppliers’ ability to provide products and services that meet
order specifications, especially product and service quality
requirements. The extent of the controls depends on the
importance of the purchased goods in the finished product.
Finally, records must be kept showing how purchased
products and services were evaluated.
We collect quotations and prices from other regions and
negotiate form vendor for optimal price. We also see is there
any more requirement of same material in any other region
than we further negotiate form vendor. We also widely look
across the after sale service support from vendor through
SLA. If require, we also test some of the product or material
10 on pilot project basis.

12. 4.4. Production and service provision
In Mahindra Finance BITS we have plan production,
installation, and service processes and provide an
environment where work can proceed in an orderly fashion.
These controlled conditions may include:
information regarding product specifications,
written instructions for carrying out the work,
suitable equipment,
adequate tools for monitoring and measuring process and
product characteristics,
activities for monitoring and measuring process and
product characteristics,
criteria for product release,
delivery and post delivery servicing activities
Process validation demonstrates that operation of the
processes achieves the planned results. When it is not
possible to verify the finished good or service through
monitoring or measurement the QMS must require validation.
Validation is particularly important where deficiencies are not
identified until the product is in use, or the service is
delivered. When validation is required, the QMS must define
the criteria for the following:
review and approval of the process,
approval of the equipment used,
competency of the people who operate the process,
specific methods and procedures used,
records to be kept,
ongoing assessment of the process validation
The standard which we requires to preserve the product,
including identification, handling, storage, packaging,
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13. protection, and delivery of parts and products throughout
all processes.
4.5. Control of monitoring and measuring devices
Any measurement worth taking is worth taking correctly. The
standard requires the organization to identify the inspection,
test and measurements taken, their required accuracy, and
the equipment used to make the measurements. Procedures
must describe how measurements are carried out.
Measuring equipment must be carefully cared for, including:
timely calibration to national standards,
identification with a calibration label,
preventing adjustments that would invalidate the
calibration,
preserving the equipment accuracy during handling,
storage and use.
Measurements taken with equipment later found to be
inaccurate must be assessed and corrected.
5. Measurement, analysis and improvement requirements
5.1. General
Plan and carry out the inspection, test, measurement,
analysis, and improvement activities needed to:
assure product meets product requirements,
assure the QMS works as planned,
improve the operation and results from the QMS.
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14. 5.2. Customer satisfaction
We frequently monitor the end customers' opinion of your
product and service. Determine how to gather and use this
information. We have online feedback form which users have
to give his opinion monthly.
5.3. Internal audit
Internal audits are verification activities performed by trained
auditors within the organization. Their purpose is to
determine how well the plans making up the QMS are being
followed. The Standard requires internal audits be carried out
regularly in each area covered by the QMS. Audits address
conformity with the QMS, the requirements of ISO
9001:2000, and the effectiveness of the implementation.
Audit plans address:
Audit criteria, and extent,
Frequency, and methods used,
Responsibility for conducting the audit
Auditors are trained, objective, and never audit their own
work. Identified problems are quickly resolved by the
manager responsible for area being audited.
5.4. Monitoring and measurement of processes
Monitor and measure the performance of the processes that
make up the QMS. Compare these actual results to the
planned results. Take corrective action to make sure the
product or service meets requirements
5.5. Control of nonconforming product
Nonconforming product is any product or service that does
13 not meet requirements. Have documented procedures to

15. identify nonconforming products and to make sure they are
not used by accident. Define who is responsible for deciding
what to do with a bad product. One of the following three
actions must be taken:
fix the product as if the problem never happened,
ask the customer to accept it, perhaps on new terms,
discard it or clearly mark it as unsuitable for its original
use.
Keep records of nonconformities.
Re-inspect any corrected products according to the
procedures for new products.
Mitigate potential losses, perhaps by recall, from any product
that has been found to be defective after its release to the
customer.
5.6. Analysis of data
The standard requires the organization to collect information
on the functioning of the QMS. This information is then
analyzed to evaluate the effectiveness and efficiency of your
system and to identify opportunities for continual
improvement of the QMS. Information collected and analyzed
relates to:
customer satisfaction,
meeting product requirements,
process characteristics and trends,
product characteristics and trends,
supplier performance.
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16. 5.7. Improvement
Make use of the quality policy, quality objectives, audit
results, data analysis, corrective and preventive actions and
management review to improve the QMS. When problems
occur, fix the underlying process responsible for the defect.
The thoroughness of each solution depends on how costly or
unsafe the actual or possible problems are.
Create written procedures for:
satisfying customer complaints
investigating and solving reported product and process
problems,
identifying the underlying cause of these nonconformities,
understanding how to eliminate the cause of
nonconformities,
making sure corrective actions are carried out,
keeping a record of corrective actions,
following up on corrective actions.
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17. REFERENCES
1. Wikipedia “http://en.wikipedia.org/wiki/ISO_9000”
2. ISO 9001:2000 from www.iso.org
3. http://www.isoqar.com/iso9001/qualintro.htm
4. http://www.mahindrafinance.com/pdf/Mahindra%20AR2008_PublicVersion.pdf
5. http://www.citrix.com/English/aboutCitrix/caseStudies/caseStudy.asp?storyID=13399
02
6. http://whitepapers.techrepublic.com.com/abstract.aspx?docid=382067
7. www.citrix.co.uk/site/resources/dynamic/.../Citrix_CS_Mahindra.pdf
8. http://www.cio.in/case-study/mahindra-finance-expands-its-reach-handhelds
9. http://www.ciol.com/Enterprise/News-Reports/Citrix-inaugurates-sales-office-in-
Bangalore/22908110689/0/
10. http://www.mahindrafinance.com/media/press_release/mf_connect_3000.html
11. http://www.itbusiness.ca/it/client/en/home/News.asp?id=54350
12. http://www.mahindra.com/Enewsletter/Apr-Jun07/html/sector11.html
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