1. Companywide Assessment of Quality
Chapter 2

2. Fig. 2-1

3. Fig. 2-2

4. Fig. 2-6

5. ISO 9000 Relationship
ISO 9000 and TQM are not completely interchangeable:
ISO 9000 is compatible with, and can be a subset of TQM;
ISO 9000 is frequently implemented in a non-TQM environment;
ISO 9000 can improve operations in a traditional environment;
ISO 9000 may be redundant in a mature TQM environment; and
ISO 9000 and TQM are not in competition.

6. Origin of ISO9000
Developed in response to the need to harmonize dozens of national and international standards relating to quality.
Management of the system
Satisfying customer’s quality requirements
Complying to regulations or
Meetng environmental objectives
SINCE FOCUS ON JUST TECHNICAL STANDARDS
THEN CAME ISO 9000
THEN CAM ISO 14000
Both are concern with management of the PROCESSES not PRODUCT standards

7. ISO 9000 series and 14000 Series: 8 Quality Management Principles
Principle 1: Customer Focus
Principle 2: Leadership
Principle 3: Involvement of people
Principle 4: Process approach
CUSTOMER FOCUS: understand their needs, researching, objectives link to customer , communicating, measuring satisfaction
LEADERSHIP: clear vision? Is it communicated throughout organization? Setting goals and targets, providing with required resources, training, inspiring, encouraging
INVOLVEMENT OF PEOPLE: ownership of problems, sharing information and knowledge, evaluating their own performance against goals and objectives set by them
PROCESS APPROACH: clear responsibility and accountability for managing key activities, analysing and measuring capability of key activities, etc.

8. Quality Management Principles
Principle 5: System approach to management
Principle 6: Continual improvement
Principle 7: Factual approach to decision making
Principle 8: Mutually beneficial supplier relationships
SYSTEM APPROACH: understanding of interdependencies between processes of system, understanding of roles and responsibilities, defining how specific activities should operate.
CONTINUAL IMPROVE: organization-wide approach to continual improvement, training, establishing goals, measures to track, recognizing accomplishments and improvements.
FACTUAL APPROACH: data and information is accurate and reliable, data is accessible, analysing data and information using valid methods
MUTUALLY BENEFICIAL: pooling expertise and resources with partners, id and selecting key suppliers, clear and open communication, sharing information and future plans, joint development and improvement activities

9. Motivations for Implementing ISO9000
To improve operations
To improve or create a quality management system
To improve the consistency of quality
To improve customer satisfaction
To improve competitive posture
To conform to the requirements of customers.

10. What is ISO 9000, 9001, 9002? ISO 9000 Standards
Covers all technical fields
Not limited for any particular discipline, organization size, etc.
An organization can be certified against one of these 3 quality systems
Are produced by an international consensus of countries with aim of creating global standards of product and service quality.
Primarily concern with “Quality management” –those features of a product (service) which are required by customer

11. ISO 9001 For organizations whose business processes include:
Design and Development
Production
Installation
Servicing (after market service)

12. ISO 9002 For organizations whose business processes include:
Production
Installation
Servicing
NOT design control

13. ISO 9003 For organizations whose business processes include:
Inspection
Testing
BUT NOT
Design control
Process control
Purchasing
Or servicing

14. To Pursue ISO Certification
Develop a quality system that meets requirements specified under one of the 3 standards
Need to invite an accredited external auditor to evaluate the effectiveness of your system
Requirements
WHAT IS REQUIRED IN A SNAPSHOT!
A STANDARD LANGUAGE FOR DOCUMENTING QUALITY PRACTICIES
A SYSTEM TO TRACK AND MANAGE EVIDENCE THAT THESE PRACTICES ARE INSTITUTED IN YOUR BUSINESS
AN INDEPENDENT AUDIT TO ASSESS AND CERTIFY COMPLIANCE.
CERTIFICATION CAN TAKE FROM 6 TO 18 MONTHS TO DOCUMENT YOUR BUSINESS OPERATIONS AND ANOTHER 1 – 3 MONTHS TO VERIFY AGAINST ACTUAL OPERATIONS.

15. Costs
Consultants ($10,000-20,000)
Time spent documenting
Fees

16. ISO 14000 Concerned with “environmental management”
What does organization do to “Minimize harmful effects” on environment caused by it activities.

17. ISO 14000 Benefits Reduce raw material/resource use
Reduce energy consumption
Improve process efficiency
Reduce waste and deposal costs
Utilization of recoverable resources

18. To manage better the impact of their activities on environment and to demonstrate sound environmental management. As of ,000 organizations in 112 countries have been certified in ISO series

19. Malcolm Baldrige Award Purpose
To help improve organizational performance practices, capabilities, and results
To facilitate communication and sharing of best practices information among U.S. organizations of all types
To serve as a working tool for understanding and managing performance and for guiding organizational planning and opportunities for learning.

20. Quality Assessment
The Malcolm Baldrige National Quality Award evaluates candidates for the award according to criteria in several categories as follows:
Leadership
Strategic planning
Customer and market focus
Measurement, analysis and knowledge management
Human resource focus
Process management
Business results
David Goetsch Quality Management, 5e
Copyright ©2006 by Pearson Education, Inc. Upper Saddle River, New Jersey All rights reserved.

21. Organizational Profile: Environment, Relationships, and Challenges1:
Leadership
2: Strategic Planning
3:Focus on Patients, Other Customers, and Markets
5: Human Resource Focus
6: Process Management
7: Results
4: Measurement, Analysis, and Knowledge Management

22. Case Study
You will have a PDF file of the Balridge resource criteria booklet
You will have a Comment matrix template
You will have a key factor worksheet
Each assignment you will review the case study and:
Using bullet points fill in the section (both strengths and OFIs)
Turn in just that section as homework

23. Any questions?