Companywide Assessment of Quality Chapter 2

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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.

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 1947 - FOCUS ON JUST TECHNICAL STANDARDS THEN 1987 CAME ISO 9000 THEN 1997 CAM ISO 14000 Both are concern with management of the PROCESSES not PRODUCT standards

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.

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

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.

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

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

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

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

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.

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

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

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

To manage better the impact of their activities on environment and to demonstrate sound environmental management. As of 2001 - 37,000 organizations in 112 countries have been certified in ISO 14000 series

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.

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 07458 All rights reserved.

Organizational Profile: Environment, Relationships, and Challenges 1: 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

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

Any questions?