A Quality Commitment Leads Precious Metal Refining Performance With Chemicals Into The Next Millennium
“Quality” is a somewhat subjective term that has numerous definitions. It�s purpose and meaning is virtually at the mercy of the term�s user and the intended recipient depending on the context in which it is used; the industry to which it is applied; and, the overall intent of its application. However, defining quality and the standards for measuring such has taken on a far more significant role in a global marketplace, especially for the jewelry industry.
The term quality and the demand for such is the standard that all manufacturers of fine jewelry judge themselves, their competitors, their products and their vendors. It is the quality of fine gems used, the craftsmanship in each finished product, the unique style and presentation that individually and collectively define the overall image of any manufacturer. It is this “quality image” that is of critical concern to every fine jewelry manufacturer, and that which can ultimately drive or demote its success.
But quality extends far beyond the sale of fine jewelry product. The manufacturer of quality jewelry must demand quality not only from itself and its raw material suppliers but from those who are charged with the responsibility of servicing the manufacturer outside and beyond the parameters of the manufacturing operation. That is, people who process a manufacturer�s waste material into usable gold � commonly known as your precious metal refiner.
Quality driven systems are becoming mandatory in many business environments throughout the world. A quality standard can and should be applied to precious metal refining, this critical area of the jewelry industry.
The usual questions of accountability, security, and turnaround times should be accompanied by the inquiry as to “How does an individual refiner monitor the inner workings of his own business?
” What does your refiner do to document refining procedures, assay procedures, and equipment calibration?
. In short, the question can be What Quality Standard does the refiner hold himself to and who monitors that standard?
What is a Quality Management System?
A quality management system is a set of standards that are implemented within a business that govern every aspect of that individual business. Procedures are documented, standards of weights and measures are qualified and monitored, methods of processing are documented, and a corporate commitment to quality and enforcement is made. A registered outside quality auditor such as N.Q.A. (National Quality Assurance USA) monitors the quality system.
To remain competitive in a world that demands superior products and service, individual companies � especially precious metal refiners � must respond by incorporating a quality management system such as or equal to the standards established by the International Organization for Standardization (ISO), a world-recognized, independent international agency which overseas the ISO 9000 Quality Systems standard. The ISO standards provide the discipline essential to develop, implement and maintain an effective quality management system. An ISO 9000 Quality Management System provides the impetus needed for a company to provide quality service and products to its customers and supply the resources needed for continuous improvement. Adopting such a system works to remove the guesswork, mystery and discomfort commonly associated with the relationship between a precious metals refiner and fine jewelry manufacturers.
The cost to a refiner of adopting a quality system is overshadowed by the confidence a customer gains in knowing that there are standards that must be adhered to and an auditor that must be answered to on a regular basis.
Quality as it relates to refining. In an industry that has operated virtually without regulation or standard operating procedures, precious metal refining has evolved through the years as a business based initially on trust and mistrust. At the outset of any manufacturer�s initiation of a refiner relationship, the primary consideration is usually that of “how much gold” will the refining lot yield. A more appropriate and productive approach would be to evaluate the quality of the gold refining process in much the same way the manufacturer might examine the quality of its own products and operating practices. A precious metal refiner must be held to similar quality standards as those that apply to the fine jewelry manufacturer. The refiner to improve and enhance the efficiency and effectiveness of its operation, which will ultimately have a positive impact on each of its customers, can implement the independent quality standards of a quality management system. By adoption of a quality management system, the refiner accepts and adheres to a certification and monitoring process that will ensure consistent, predictable procedures of its operation.
How does the quality system benefit the customer?
Procedures governing handling, sampling, assaying, processing, and settlement become written documents and must be adhered to, they become accessible to the customer. The customer knows that to keep his certification, an audit by an objective third party annually, combined with numerous internal audits are required by all quality systems. Failing to maintain certification becomes public record.
What is ISO 9000?
ISO 9000 is a series of standards published worldwide that define a framework of minimum requirements for the implementation of a quality system. These ISO 9000 standards have been adopted worldwide as suitable criteria for assessment and registration of companies by independent, accredited third-party organizations called, “Registrars”. With an ongoing third-party review of the participating refiner by its ISO registering agency, customers of the refiner benefit from the integrity of the standards applied to the refining process by not only gaining an improved relationship with the refiner, but more importantly in dollars and cents gained at their bottom line.
The direct affect of implementing a Quality Management System for the refiner will include the following benefits:
- Standardized work forms that clearly define how a particular material or process should be performed. This reduces product loss, increases productivity and creates improved communication between all integral departments;
- A documented system of identification and traceability of a product as it goes through a series of creation, refinement and testing;
- The standard requires control of all measuring equipment. This includes a defined level of calibration requirements for all testing equipment, which must be verified and documented.
- Because of the high value-to-weight ratio found in most precious metals, a customer can remain confident that his material is being quantified by equipment that is being maintained by the standards found in an accepted national standard such as ANSI/NCSL Z540. This American National Standards Institute document outlines the general requirements all United States laboratories must meet to perform calibrations of metrological equipment with a respectable amount of confidence. The refiner�s ISO registrar regularly reviews the refiner�s records of compliance with this ANSI standard. All customers of any refining company should demand strict compliance to these standards and should review all pertinent calibration records at regular intervals.
- A system that evaluates the performance of sub-contractors and their products;
- A defined testing and inspection process of incoming raw material which reduces the possibility of inferior material being introduced into the product or process;
Manufacturers share “cradle to grave” responsibility. There are other reasons for manufacturers to consider the benefits of quality standards for refining. Not only is the quantity of gold in each refining lot at stake, environmental compliance is also critical. It is important for manufacturers to evaluate a refiner�s ability to accurately determine gold quantity. However, refiners are also considered “treatment companies” who must document the proper handling and disposal of any and all regulated hazardous material they have processed. Liability for any penalties or fines resulting from a refiner�s violation of any local, state, or Federal government regulations and reporting procedures can be applied to the generator of the waste material, i.e., the jewelry manufacturer.
A refiner must handle the material responsibly and in accordance with any pertinent laws and regulation. However, if a manufacturer is sending regulated, hazardous material to the refiner the manufacturer must take responsibility for knowing the capability and commitment the refiner has to environmental compliance. A manufacturer should visit the refiner to not only represent his material, but more importantly to ask for and meet the refiner�s environmental affairs representative. An initial environmental meeting should include a list of customer references from the refiner, a review of environmental pollution control equipment and the examination of the refiner�s compliance records. A manufacturer should question the refiner�s relationship with all pertinent regulatory agencies and should be provided with contact names and telephone numbers. Manufacturers should be encouraged to check the refiner�s history of performance with regulatory agencies including any record of spills at the refiner site or any agency citations the refiner may have received. Annual environmental audits should include a review of environmental compliance records plus the refiner�s Occupational Safety and Health Association (OSHA) records, including worker injuries and loss work days. A pattern of re-occurring problems may indicated a need for better compliance or if loss work days are high, the refiner may have a problem processing customer work in a timely fashion both of which could have impact on the quality of the manufacturer�s operation.
When visiting a refinery, the customer can use the visit to more than witness the process of his material. It is the perfect environment to establish a positive working relationship with the refiner by taking a few extra minutes to ask some pertinent questions.
A manufacturer needs to apply the same quality expectations it may have for its own product manufacturing to that of a refiner�s operation. Below is a checklist of items to consider when visiting the refiner.
- Are the standards for weights and measures all calibrated on a nationally accepted, systematic basis at defined intervals?
- What records of calibration are kept, on what equipment, and are they readily available for review?
- Are the standards used for calibration traceable to and recognized by an international organization such as the National Institute of Standards and Technology (NIST)?
- What are the refiner�s laboratory standards of quality such as,
- Are there published, standard procedures for each type of material assayed including solution, resins, and polishing dust?
- Are these standards readily available for review?
- Is it clear that no deviations are allowed?
- Does the refiner have an environmental affairs specialist?
- What are the refiner�s policies and procedures for handling hazardous material, including
- pollution control equipment used?
- full and complete record keeping?
- is this information readily available for review?
- What is the refiner�s history of environmental compliance?
- What is the refiner�s history of OSHA compliance?
An enduring commitment leads to success.
The fine jewelry manufacturing and precious metal refining industries have gone through a significant transition over the last decade. Manufacturing companies in the jewelry industry have experienced unrelenting demand from the marketplace to improve quality and service delivery while at the same time reduce costs. The effort to accomplish these sometimes highly aggressive goals has put great pressure on vendors and suppliers to share in the responsibilities of providing value-added goods and services to a global market.
Precious metal refiners must recognize and understand the manufacturer�s needs for cost, value, reliability, accuracy and safety in handling a customer�s precious metals. Manufacturers must place primary emphasis on quality standards for its refiners and make these expectations well known throughout the industry. Adopting a commitment to quality standard and adhering to the practices of a sound quality management program will enhance and improve the refiner�s service and production which, in turn, will benefit the fine jewelry industry overall. It is not just a formula for success, it is a prediction for survival in a highly competitive marketplace.
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