Dear Santosh
I find that in your query you have not given adequate information.
The response given by Seema, which is applicable to the IT /BPO industries, is fairly accurate; however do remember the following distinctions :
In IT services, there is SLA between the service provider and the client/customer; however in steel industries, a manufacturer caters to several buyers.
Therefore, instead of a single SLA, there are pre-defined technical standards according to International, US and Indian standards for various steel products, based on their usage and application.
Thus, there are different standards for different steel products such as steel plates, railway tracks, sheets, GI sheets, beams, channels, wire rods, SAW pipes etc.
Zero tolerance simply means that a product is unacceptable if it is not within the specifications; and the means to achieve it is Six-sigma, WCM etc. ISO auditors are insisting on it for all the right reasons; and you"ll have to enumerate a quality policy in this respect and document SOP's to achieve it.
As I have always reiterated in the past; these activities are beyond the purview of HR persons and their role should be restricted to that of a facilitators. This activity should be undertaken by technical persons and qualified engineers and metallurgists, responsible for production and quality.
Hope the above information helps you.
Warm regards.