Course: Quality Management (5575)

ASSIGNMENT No. 1
Q. 1 Explain tools and techniques for quality management. What tools could be used for planning, data collection, and analysis, and for contrinuous improvement? A ! - Many of the tools and techniques in current use have their roots in postWorld War II Japan. Dr. W. Edwards Deming used statistical methods to improve quality with a strong focus on the customer or end user, while in the process ma ing organi!ations more productive and profita"le. #lthough this user-needs focus is now widely accepted, it was an unconventional perspective at the time. Deming$s approach was plan, do, check, and act% later he e&panded these ideas to' (. Design the product. ). Ma e it% test it in the production line and the la"oratory. *. +ut it on the mar et. ,. -est it in service% find out what the user thin s of it, and why the nonuser has not "ought it. Joseph Juran also did much to promote quality improvement, especially a product$s fitness of use. Fitness of use is defined as "oth (. freedom from defects and deficiencies, and ). product features that meet the user$s needs. -hese two ideas continue to evolve in more recent quality management ideas and practices. /or e&ample, the 0i& 0igma principle, which attempts to limit defective units per "illion to two, is a disciplined e&ample of the first definition of fitness of use a"ove. Individuals wor ing with human factors to understand how end users interact with various graphical user interfaces would "e an e&ample of the second definition. -ools and techniques for quality management are numerous. # Pareto diagram is a histogram with columns or "ars ordered from most common to least. /igure
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1-2 from 0chwal"e 3see "elow. shows an e&ample of a +areto diagram. It is a graphical way of summari!ing where most pro"lems occur with a product, or what most users would li e to see included in a product. It is an important graphical display tool, as often a great ma4ority of pro"lems or needs fall into the same category. 5ften, the num"er of individuals providing input is somewhat limited, so that issues can "e classified and enumerated from the entire population. Statistical sampling is often necessary to test the quality of products produced, as loo ing at each individual product would "e very time consuming and cost prohi"itive. -he sample must "e random, and large enough to represent the entire population of products with some degree of certainty. -he term quality means different things to different people. /or e&ample, a quality automo"ile may "e one, which has no defects and wor s e&actly as we e&pect. 0uch a definition would fit with an oft-repeated definition "y J.M Juran 67uality is fitness for use.6 8owever, there are other definitions widely discussed. 7uality as 6conformance to specifications6 is a position that people in the manufacturing industry often promote. Why9 +resuma"ly "ecause manufacturing can do nothing to change the design% hence this definition. 5thers promote wider views which include the e&pectations that the product or service "eing delivered (. meets customer standards, ). meets and fulfills customer needs, *. meets customer e&pectations, and ,. will meet unanticipated future needs and aspirations. 0till others simply ignore definitions and say 6I$ll now quality when I see it.6 It seems that we all $ now$ or $feel$ somehow what quality is. # product or service that e&ceeds our preconceived idea a"out the quality of that product or service is li ely to "e 4udged as having 6high quality.6 It is equally clear that the "est of a group of "ad products is not li ely to "e perceived as a quality product. :ac of management commitment. When management tal s -7M, "ut its actions fails to support the effort, it will ultimately fail to meet e&pectations. -he result is cynicism and mistrust and difficulty launching another attempt. /or
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implementation

to

succeed,

management

must

clearly

and

frequently

communicate the reason for adopting -7M, as if it is another fad. ; <hanging organi!ational culture. <hanging an organi!ation=s culture is e&tremely difficult and time-consuming. /ear of change must "e addressed, past la"or-management conflicts must "e resolved, and the organi!ation=s focus must change from maintaining the status quo. Most employees will need to "e convinced of the "enefits that -7M program will provide to "uy in to the changes. -his often means that employees need to change "ehaviors or perform tas s in a different way than "efore -7M. If motivation is lac ing, frustration and stress are li ely. #nd trust is a must. ; +reparation. >efore implementing -7M, management should strive for an organi!ation wide commitment, clearly communicate the organi!ation=s vision, mission, and goals, and foster open communication a"out the organi!ation=s changed focus. ; ?se of data. -7M relies on data"ased decision ma ing. -o succeed in "uilding and sustaining a -7M environment, data must "e accurate, timely and relia"le. -he measurement process used must "e valid and consistent, and data access should "e efficient. Decision ma ers must "e trained in data analysis and interpretation. 5ther pro"lems, many of which fall under the four previous categories, include, "ut are not limited to' ; :ac of strategic direction ; :ac of shared vision, mission, or guiding principles ; :ac of cooperation and teamwor among different wor groups ; /ocus on short-term profits rather than on long-term goals ; /ailure to understand what teamwor entails ; /ailure to focus on customers= need and e&pectations ; :ac of mutual trust and respect among level of employees ; insufficient resources or lac of sustained commitment of those resources ; :ac of continual and effective training and education

Management=s

failure

to

recogni!e

and

or

reward

achievements

-7M, as a term, is not used as widely in the ?nited 0tates as it once was. Most of the concepts, principles, and methodology have "een su"sumed under the term quality management. 7uality is an important factor in today=s increasingly glo"ali!e and li"erali!ed mar ets, and it is considered that the application of quality management techniques will ma e a positive contri"ution to the competitive performance of countries, economic sectors and individual organi!ations. 0ince competitiveness contri"utes to sustaina"le development, the widespread diffusion and implementation of quality management seems desira"le from a national point of view. Aecently in :atin #merica there has "een a growing tendency for governments to esta"lish programmes that promote and support the dissemination of quality management techniques. In this respect, quality issues will play an increasingly important role in the economic and social development o"4ectives of the countries in the region. Bevertheless, the implementation of total quality management 3-7M. innovations has not proved to "e either easy or rapid' for e&ample, in :atin #merica the I05 CDDD standards for quality systems have not spread as quic ly as in most other regions of the world. -he author identifies mar et considerations, limited access to resources, traditional management practices and macroeconomic conditions as o"stacles that have limited the level of quality awareness in the region. -hese o"stacles may "e associated with mar et flaws that occur within companies, "etween companies and in factor mar ets. Earious governments have therefore chosen to promote quality management techniques in order to ma e the necessary ad4ustments to these flaws. -he article concludes with an overview of the activities carried out in some selected :atin #merican countries in order to enhance the diffusion of I05 CDDD quality management systems.

-he !even "asic #ools of Quality is a designation given to a fi&ed set of graphical techniques identified as "eing most helpful in trou"leshooting issues related to quality. -hey are called basic "ecause they are suita"le for people with

little formal training in statistics and "ecause they can "e used to solve the vast ma4ority of quality-related issues. -he 0even >asic -ools of 7uality includes ' Ishi awa 3fish"one. diagram, <hec sheet, <ontrol chart, 8istogram, +areto chart, 0catter diagram 0tratified sampling. 5riginal designation was 4ust F0even toolsF and their content was formed during the fifties and si&ties of the last century in Japan "y G. Ishi awa and E. Deming. -he designation was inspired "y the seven famous weapons of >en ei. #t that time, companies that had set a"out training their wor forces in statistical quality control found that the comple&ity of the su"4ect intimidated the vast ma4ority of their wor ers and scaled "ac training to focus primarily on simpler methods which suffice for most quality-related issues. -he 0even >asic -ools stand in contrast to more advanced statistical methods such as survey sampling, acceptance sampling, statistical hypothesis testing, design of e&periments, multivariate analysis, and various methods developed in the field of operations research. $escription of the tools -he seven tools are'

<ause-and-effect 3also nown as the 6fish-"one6 or Ishi awa. diagram <hec sheet <ontrol chart 8istogram
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+areto chart 0catter diagram 0tratification 3alternately, flow chart or run chart.

%shi&a'a (fishbone) diagram Ishi awa diagram 3called sometimes fish"one diagram or cause-and-effect diagram. was introduced "y Gaoru Ishi awa 3(CH1. and show the causes of a specific event. <ommon use of diagram is on "rainstorming to find possi"le cause of a pro"lem. Bancy A. -ague=s introduced steps how to use the diagram as follows' (. #gree on a pro"lem statement 3effect.. Write it at the center right. Draw draw "o& around and hori!ontal line to it. ). >rainstorm the ma4or categories of causes of the pro"lem. *. Write categories as "ranches. ,. >rainstorm all possi"le causes of the pro"lem category "y as ing IWhy does this happen9J and write them as "ranches of the category. K. <ontinue to as IWhy9J and reach deeper level of each cause. H. /ocus on empty space when you run out of ideas *hec& sheet <hec sheet -he chec sheet is a document used to manually capture data from the process, usually num"er of defects "y type, location or cause or to chec distri"ution of the process or to monitor steps of the process. Q. + $escribe ho' to incorporate quality goals into strategic and operational plans 'ith suitable examples. A !,-he ey elements of >usiness Improvement #rchitect$s 0trategic 7uality pro"a"ility

+lanning +rocess are' %dentifying the -rgani.ational Quality %nitiatives We$ll wor with your organi!ation$s 7uality Manager and team to identify and assess all of the various quality initiatives that they have used in the past and the present. /nderstanding the 0oice of the *ustomer -o ensure that the new 7uality 0trategy has a clear customer focus, we wor with to identify current and future sta eholder@customer requirements through research and review of your organi!ation$s product and services delivery process. %dentifying Employee %nvolvement We ensure employee input is considered in the strategic planning process to enrich the quality of the final plan and gain their commitment, "uy-in and support for the implementation phase. *onducting "enchmar&ing We "elieve that it is "eneficial to conduct "enchmar ing as part of the planning process to learn what others are doing 3including competitors. and to learn from them. 0uch effort is worthwhile as it provides information a"out "est practices and generates useful ideas for improving internal quality processes. $eveloping the 0ision and !trategic $irection We facilitate the creation of your 0trategic 7uality Eision and 7uality 0trategies. -his includes' the structure and approach to quality throughout the organi!ation, what tools and processes to use to esta"lish quality and how quality will "e measured. It will also include the outcomes of quality on your organi!ation$s

products, services and what customers will "e saying a"out them. $eveloping a !tatement of Quality and Quality !tandards We$ll wor with you to develop'

# 0tatement of 7uality that is highly relevant to descri"e what quality will mean for in the organi!ation. It will clearly descri"e the overall goals, mandates and o"4ectives for the quality initiative.

7uality 0tandards to guide employees in achieving the 0tatement of 7uality.

%dentifying the Quality !trategies We facilitate a process to translate the quality vision, quality statement and quality standards into ey strategies. -his process includes a ris assessment. $eveloping -perational Effectivenes s We facilitate an 5perational Effectiveness +lan to identify the requirements for each 7uality 0trategy with detailed #ction +lans. $eveloping !trategy 1easurements We ensure that you have the right measures are in place to monitor and manage quality on a forward going "asis. Q. 2 (a) What are the characteristics of Quality 3unction $eployment as a

quality system? Quality function deployment (Q3$) is a Imethod to transform user demands into design quality, to deploy the functions forming quality, and to deploy methods for achieving the design quality into su"systems and component parts, and ultimately to specific elements of the manufacturing process.J, as descri"ed "y Dr. Lo4i # ao, who originally developed 7/D in Japan in (CHH, when the

author com"ined his wor in quality assurance and quality control points with function deployment used in value engineering. 7/D is designed to help planners focus on characteristics of a new or e&isting product or service from the viewpoints of mar et segments, company, or technology-development needs. -he technique yields charts and matrices. 7/D helps transform customer needs 3the voice of the customer ME5<N. into engineering characteristics 3and appropriate test methods. for a product or service, prioriti!ing each product or service characteristic while simultaneously setting development targets for product or service. Areas of application 7/D 8ouse of 7uality for Enterprise +roduct Development +rocesses 7/D is applied in a wide variety of services, consumer products, military needs 3such as the /-*K Joint 0tri e /ighterM)N., and emerging technology products. -he technique is also It is also included in the new I05 CDDD')DDD standard which focuses on customer satisfaction. While many "oo s and articles on 6how to do 7/D6 are availa"le, there is a relative paucity of e&ample matrices availa"le. 7/D matrices "ecome highly proprietary due to the high density of product or service information found therein. #echniques and tools based on Q3$ 4ouse of Quality 8ouse of 7uality appeared in (C2) in the design of an oil tan er "y Mitsu"ishi 8eavy Industries. # ao has reiterated numerous times that a 8ouse of 7uality is not 7/D, it is 4ust an e&ample of one tool. # /lash tutorial e&ists showing the "uild process of the traditional 7/D 68ouse of 7uality6 3857.. 3#lthough this e&ample may violate 7/D principles, the "asic sequence of 857 "uilding are illustrative.. -here are also free 7/D templates availa"le that wal users through the process of creating a 8ouse of 7uality.M2N 5ther tools e&tend the analysis

"eyond quality to cost,

technology, relia"ility, function, parts, technology,

manufacturing, and service deployments. In addition, the same technique can e&tend the method into the constituent product su"systems, configuration items, assem"lies, and parts. /rom these detail level components, fa"rication and assem"ly process 7/D charts can "e developed to support statistical process control techniques. 5ugh concept selection +ugh <oncept 0election can "e used in coordination with 7/D to select a promising product or service configuration from among listed alternatives. 1odular 3unction $eployment Modular /unction Deployment uses 7/D to esta"lish customer requirements and to identify important design requirements with a special emphasis on modularity. -here are three main differences to 7/D as applied in Modular /unction Deployment compared to 8ouse of 7uality'

-he "enchmar ing data is mostly gone. -he chec "o&es and crosses have "een replaced with circles. -he triangular IroofJ is missing.

-here are also other minor differences "etween the application of 7/D in Modular /unction Deployment as compared to 8ouse of 7uality, for e&ample the term 6<ustomer #ttri"ute6 is replaced "y 6<ustomer Ealue6, and the term 6Engineering <haracteristics6 is replaced "y 6+roduct +roperties6. >ut the terms have similar meanings in the two applications. 6elationship to other techniques -he 7/D-associated 8oshin Ganri process somewhat resem"les Management "y o"4ectives 3M>5., "ut adds a significant element in the goal setting process,
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called 6catch"all6. ?se of these 8oshin techniques "y ?.0. companies such as 8ewlett +ac ard have "een successful in focusing and aligning company resources to follow stated strategic goals throughout an organi!ational hierarchy. 0ince the early introduction of 7/D, the technique has "een developed to shorten the time span and reduce the required group efforts. (b) What must an organi.ation do to maintain a customer focus and explain the benefits of maintaining customer focus? A !,<ustomer focus6 is a mar eting term that means eeping the customer in mind when selling products and services. <ustomers have certain needs and wants, which companies must meet to increase sales and profits. 0ome companies structure their management teams around specific customers. <ustomers can include individual consumers and "usinesses. -he "est way to eep trac of customers is through mar eting research, such as phone or Internet surveys. 5roducts Mar eting managers employ customer focus strategies when developing their products. -hey o"tain input from customers regarding the features, si!es, dimensions, flavors, fragrances or varieties they want with certain products. 0u"sequently, mar eting managers inform research and development people of what customers want, and the company produces products that meet customer preferences. <ustomer focus also means adding "onus services for customers who "uy a company$s products. /or e&ample, retailers may provide customers with gift "ags for products they intend to give to others. Advertising <ustomer focus can also pertain to advertising. <ompanies develop advertising messages that appeal to people who "uy their products. #dvertising managers determine which maga!ines and newspapers their customers read, or what television or radio programs their customers are most li ely to regularly en4oy.
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<ompanies should focus on the e&perience of their customers when developing their mar eting messages, according to the 0mall >usiness #dministration. /or e&ample, a diet company may let a customer visuali!e herself fitting into her new "athing suit when writing a direct mail sales letter. 5ricing <ustomers will not li ely purchase products that fall too far outside their price range. +rice ranges are largely dictated "y consumer demand. In other words, customers will only "uy products up to a certain price point. #ny price a"ove that range will result in a drastic reduction in sales. -herefore, companies focus on price ranges their customers will pay for their products and services. -hey o"tain customer pricing information "y studying competitors or conducting their own mar eting research. ?ltimately, a company$s goal is to esta"lish an optimal price point that satisfies customers and ma&imi!es sales and profit margins. $istribution and 5ayment <ompanies ma e it easy for their customers to order. -hey distri"ute their products in locations their customers are most li ely to shop. #dditionally, retailers allot more space to items that are in high demand. Internet and mail order companies also ma e it easy on customers, providing them with convenient ways to pay for and o"tain products.

Q. 7 6eflect on your o'n experience as a customer and, if relevant, as a provider of customer service to others, and describe the important characteristics of quality customer relationship management 'hich extend beyond being 8nice9. $ifferentiate bet'een things that ma&e the customer feel good at the time and things that ma&e the customer come bac& repeatedly.

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A ! --he term quality management has a specific meaning within many "usiness sectors. -his specific definition, which does not aim to assure $good quality$ "y the more general definition, "ut rather to ensure that an organi!ation or product is consistent, can "e considered to have four main components' quality planning, quality control, quality assurance and quality improvement. 7uality management is focused not only on product@service quality, "ut also the means to achieve it. 7uality management therefore uses quality assurance and control of processes as well as products to achieve more consistent quality. Quality management evolution 7uality management is a recent phenomenon. #dvanced civili!ations that supported the arts and crafts allowed clients to choose goods meeting higher quality standards than normal goods. In societies where arts and crafts are the responsi"ility of a master craftsman or artist, they would lead their studio and train and supervise others. -he importance of craftsmen diminished as mass production and repetitive wor practices were instituted. -he aim was to produce large num"ers of the same goods. -he first proponent in the ?0 for this approach was Eli Whitney who proposed 3interchangea"le. parts manufacture for mus ets, hence producing the identical components and creating a mus et assem"ly line. -he ne&t step forward was promoted "y several people including /rederic Winslow -aylor a mechanical engineer who sought to improve industrial efficiency. 8e is sometimes called 6the father of scientific management.6 8e was one of the intellectual leaders of the Efficiency Movement and part of his approach laid a further foundation for quality management, including aspects li e standardi!ation and adopting improved practices. 8enry /ord was also important in "ringing process and quality management practices into operation in his assem"ly lines. In Oermany, Garl /riedrich >en!, often called the inventor of the motor car, was pursuing similar assem"ly and production practices, although real mass production was properly initiated in Eol swagen after World War II. /rom this period onwards, Borth #merican companies focused predominantly upon production against lower cost with increased efficiency.
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Walter #. 0hewhart made a ma4or step in the evolution towards quality management "y creating a method for quality control for production, using statistical methods, first proposed in (C),. -his "ecame the foundation for his ongoing wor on statistical quality control. W. Edwards Deming later applied statistical process control methods in the ?nited 0tates during World War II, there"y successfully improving quality in the manufacture of munitions and other strategically important products. 7uality leadership from a national perspective has changed over the past five to si& decades. #fter the second world war, Japan decided to ma e quality improvement a national imperative as part of re"uilding their economy, and sought the help of 0hewhart, Deming and Juran, amongst others. W. Edwards Deming championed 0hewhart$s ideas in Japan from (CKD onwards. 8e is pro"a"ly "est nown for his management philosophy esta"lishing quality, productivity, and competitive position. 8e has formulated (, points of attention for managers, which are a high level a"straction of many of his deep insights. -hey should "e interpreted "y learning and understanding the deeper insights. -hese (, points include ey concepts such as'

>rea down "arriers "etween departments Management should learn their responsi"ilities, and ta e on leadership 0upervision should "e to help people and machines and gadgets to do a "etter 4o" Improve constantly and forever the system of production and service Institute a vigorous program of education and self-improvement

In the (CKDs and (CHDs, Japanese goods were synonymous with cheapness and low quality, "ut over time their quality initiatives "egan to "e successful, with Japan achieving very high levels of quality in products from the (C2Ds onward. /or e&ample, Japanese cars regularly top the J.D. +ower customer satisfaction ratings. In the (C1Ds Deming was as ed "y /ord Motor <ompany to start a quality initiative after they reali!ed that they were falling "ehind Japanese manufacturers. # num"er of highly successful quality initiatives have "een invented "y the Japanese 3see for e&ample on this page' Oenichi -aguchi, 7/D,
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-oyota +roduction 0ystem. Many of the methods not only provide techniques "ut also have associated quality culture 3i.e. people factors.. -hese methods are now adopted "y the same western countries that decades earlier derided Japanese methods. <ustomers recogni!e that quality is an important attri"ute in products and services. 0uppliers recogni!e that quality can "e an important differentiator "etween their own offerings and those of competitors 3quality differentiation is also called the quality gap.. In the past two decades this quality gap has "een greatly reduced "etween competitive products and services. -his is partly due to the contracting 3also called outsourcing. of manufacture to countries li e India and <hina, as well internationali!ation of trade and competition. -hese countries amongst many others have raised their own standards of quality in order to meet International standards and customer demands. -he I05 CDDD series of standards are pro"a"ly the "est management. -here are a huge num"er of "oo s availa"le on quality management. In recent times some themes have "ecome more significant including quality culture, the importance of nowledge management, and the role of leadership in promoting and achieving high quality. Disciplines li e systems thin ing are "ringing more holistic approaches to quality so that people, process and products are considered together rather than independent factors in quality management. -he influence of quality thin ing has spread to non-traditional applications outside of walls of manufacturing, e&tending into service sectors and into areas such as sales, mar eting and customer service. 5rinciples -he International 0tandard for 7uality management 3I05 CDD(')DD1. adopts a num"er of management principles that can "e used "y top management to guide their organi!ations towards improved performance. -he principles include' nown International standards for quality

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*ustomer focus 0ince the organi!ations depend on their customers, therefore they should understand current and future customer needs, should meet customer requirements and try to e&ceed the e&pectations of customers. #n organi!ation attains customer focus when all people in the organi!ation now "oth the internal and e&ternal customers and also what customer requirements must "e met to ensure that "oth the internal and e&ternal customers are satisfied. :eadership :eaders of an organi!ation esta"lish unity of purpose and direction of it. -hey should go for creation and maintenance of such an internal environment, in which people can "ecome fully involved in achieving the organi!ation$s quality o"4ective. %nvolvement of people +eople at all levels of an organi!ation are the essence of it. -heir complete involvement ena"les their a"ilities to "e used for the "enefit of the organi!ation. 5rocess approach -he desired result can "e achieved when activities and related resources are managed in an organi!ation as process.this may also affect the !ystem approach to management #n organi!ation$s effectiveness and efficiency in achieving its quality o"4ectives are contri"uted "y identifying, understanding and managing all interrelated processes as a system.

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*ontinual improvement 5ne of the permanent quality o"4ectives of an organi!ation should "e the continual improvement of its overall performance. 3actual approach to decision ma&ing Effective decisions are always "ased on the data analysis and information. 1utually beneficial supplier relationships 0ince an organi!ation and its suppliers are interdependent, therefore a mutually "eneficial relationship "etween them increases the a"ility of "oth to add value. -hese eight principles form the "asis for the quality management system standard I05 CDD(')DD1. Q. ; Why %!- certification is important for both service and manufacturing organi.ations? What possible problems an organi.ation can come across in 5a&istan 'hile getting quality standard certification, discuss in detail. While I05 3International 5rgani!ation for 0tandardi!ation. certification is certainly not the only thing that should "e e&amined when you are evaluating potential corporate partnerships, it is an indicator that a company has invested significant time and effort to implement an o"4ective quality assurance program. -o ensure that an I05 system is "eing effectively implemented, companies that see certification must commit themselves to monitor, control and attempt to improve quality. #udits must "e implemented to evaluate the effectiveness of the effort, and identify any shortcomings that need corrective action. Lou should "e aware that certification is not necessarily companywide% different practice areas may need to have individual certification. 0o simply "ecause a company states that they are I05 CDD(')DD1 certified doesn=t necessarily mean that they are I05 CDD(')DD1 certified in the area that provides the services you see .

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I05 <ertification can provide "enefits to "oth a company and its customers. # (CCK study on 6-he >enefits of I05 CDDD <ertification6 3I05 CDDD was the predecessor of I05 CDD(. "y J.E. #lcorn was pu"lished in <eramic Engineering and 0cience +roceedings. #lcorn wrote that "enefits were found in diverse areas including customer satisfaction, interdepartmental communications, and customer@supplier partnerships. #s #lcorn noted, these "enefits were the result of su"stantial efforts to comply with quality standards and gain certification. -he hard wor pays off, not only "y imparting a competitive advantage to the I05 certified company, "ut also to the "enefit of its customers. #fter certification, #lcorn found a significant improvement in quality and, as one would e&pect, a reduction in customer complaints. In the end, increased customer satisfaction is the most meaningful measure of the value of I05 certification, and while I05 certification of a company does not guarantee that you will "e a satisfied customer, the evidence strongly suggests that the chances are improved. -he a""reviation II05J stands for International 5rgani!ation for 0tandardi!ation. I05 is a series of international standards introduced in (C12 that define and structure a company=s management systems. -hese standards apply equally to all industries and require companies see ing certification to define how their systems meet the standards= rigorous requirements. Meeting the standards assures customers that all vendor company activities P design, manufacturing, production, purchasing, quality control, pac aging, handling, storage, shipping, and customer service P are appropriately managed and controlled. What is the difference bet'een %!- <=== and 17===? I05 CDDD is concerned with 6quality management.J -his means what the organi!ation does to enhance customer satisfaction "y meeting customer and applica"le regulatory requirements and continually improving its performance in this regard.

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I05 (,DDD is primarily concerned with 6environmental management.J -his means what the organi!ation does to minimi!e harmful effects on the environment caused "y its activities and continually improving its environmental performance. *an any vendor be %!-,certified? Les. -here are appro&imately )KD,DDD companies worldwide registered to I05 standards. #ny company willing to ma e the effort can "e certified. Why should % require vendors to be %!-,certified?

I05 is direct evidence of a company$s financial and ethical commitment to provide high quality, safe products. I05 certified companies maintain comprehensive internal audit programs that demonstrate to customers the effectiveness of their quality and environmental efforts.

I05 certified companies utili!e systems that have "een accepted for use "y over 1D countries as effective means to achieve product quality and environmental stewardship.

I05 certified companies document, review, and approve product designs that meet applica"le safety, regulatory, and customer requirements. I05 certified companies prove their systems through audits "y independent registrars. Aegistrars are governed "y strict international codes that dictate operating practices, audit methods, and staff qualifications. /ailure to maintain quality program requirements will lead to de-certification "y the registrar.

I05 certified company products reduce the need for the "uyers to perform audits and reviews to determine if quality systems are in place and "eing maintained.

# certificate of analysis from an I05 certified company will "e supported "y documented procedures and records that demonstrate its validity. -his

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is particularly important should a customer ever have a reason to question product quality. 7uality is something every company strives for and is often times very difficult to achieve. <omplications concerning efficiency and quality present themselves everyday in "usiness, whether an important document cannot "e found or a consumer finds a product not up to their e&pectations. 8ow can a company increase the quality of its products and services9 -he answer is I05 CDDD. #s standards go, I05 CDDD is one of the most widely recogni!ed in the world. I05 CDDD is a quality management standard that presents guidelines intended to increase "usiness efficiency and customer satisfaction. -he goal of I05 CDDD is to em"ed a quality management system within an organi!ation, increasing productivity, reducing unnecessary costs, and ensuring quality of processes and products. I05 CDD(')DD1 is applica"le to "usinesses and organi!ations from every sector. -he process oriented approach ma es the standard applica"le to service organi!ations as well. Its general guidelines allow for the fle&i"ility needed for today=s diverse "usiness world. 4o' does %!- <=== 'or&? I05 CDDD is set up as a collection of guidelines that help a company esta"lish, maintain, and improve a quality management system. It is important to stress that I05 CDDD is not a rigid set of requirements, and that organi!ations have fle&i"ility in how they implement their quality management system. -his freedom allows the I05 CDDD standard to "e used in a wide range of organi!ations, and in "usinesses large and small. 5ne important aspect of I05 CDDD is its processoriented approach. Instead of loo ing at a company=s departments and individual processes, I05 CDDD requires that a company loo at Ithe "ig picture.J 8ow do processes interact9 <an they "e integrated with one another9 What are the important aspects of products and services9 5nce this process-oriented approach is implemented, various audits can "e done as a chec of the effectiveness of your quality management system. -here are three main types of
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audits P (st, )nd, and *rd party audits. #n internal audit is a (st party audit. I05 CDDD encourages 3and requires. this type of audit so that an organi!ation can get feed"ac quic ly from those who now the company "est. 8owever, this audit process cannot "e viewed as impartial. -herefore, )nd party audits allow for a consumer to evaluate the performance on an organi!ation. #s an alternative to a )nd party audit, many companies choose to "ecome certified with I05 CDDD through a *rd party audit. In this case, an independent certification "ody comes into an organi!ation and evaluates it in terms of the I05 CDDD guidelines. If an organi!ation meets the requirements of the standard, it "ecomes certified in I05 CDDD and carries a seal of quality recogni!ed throughout the world. Why is %!- <=== important? -he importance of I05 CDDD is the importance of quality. Many companies offer products and services, "ut it is those companies who put out the "est products and services efficiently that succeed. With I05 CDDD, an organi!ation can identify the root of the pro"lem, and therefore find a solution. >y improving efficiency, profit can "e ma&imi!ed. #s a "road range of companies implement the I05 CDDD standards, a supply chain with integrity is created. Each company that participates in the process of developing, manufacturing, and mar eting a product nows that it is part of an internationally nown, relia"le system. Bot only do "usinesses recogni!e the importance of the I05 CDDD, "ut also the customer reali!es the importance of quality. #nd "ecause the consumer is most important to a company, I05 CDDD ma es the customer its focus. What are the %!- <=== 5rinciples? 1. A *ustomer 3ocus #s stated "efore, the customer is the primary focus of a "usiness. >y understanding and responding to the needs of customers, an organi!ation can correctly targeting ey demographics and therefore increase revenue "y
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delivering the products and services that the customer is loo ing for. With nowledge of customer needs, resources can "e allocated appropriately and efficiently. Most importantly, a "usiness=s dedication will "e recogni!ed "y the customer, creating customer loyalty. #nd customer loyalty is return "usiness. +. >ood :eadership # team of good leaders will esta"lish unity and direction quic ly in a "usiness environment. -heir goal is to motivate everyone wor ing on the pro4ect, and successful leaders will minimi!e miscommunication within and "etween departments. -heir role is intimately intertwined with the ne&t I05 CDDD principle. 2. %nvolvement of people -he inclusion of everyone on a "usiness team is critical to its success. Involvement of su"stance will lead to a personal investment in a pro4ect and in turn create motivated, committed wor ers. -hese people will tend towards innovation and creativity, and utili!e their full a"ilities to complete a pro4ect. If people have a vested interest in performance, they will "e eager to participate in the continual improvement that I05 CDD facilitates. 7. 5rocess approach to quality management -he "est results are achieved when activities and resources are managed together. -his process approach to quality management can lower costs through the effective use of resources, personnel, and time. If a process is controlled as a whole, management can focus on goals that are important to the "ig picture, and prioriti!e o"4ectives to ma&imi!e effectiveness. ;. 1anagement system approach <om"ining management groups may seem li e a dangerous clash of titans, "ut if done correctly can result in an efficient and effective management system. If leaders are dedicated to the goals of an organi!ation, they will aid each other to
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achieve improved productivity. 0ome results include integration and alignment of ey processes. #dditionally, interested parties will recogni!e the consistency, effectiveness, and efficiency that come with a management system. >oth suppliers and customers will gain confidence in a "usiness=s a"ilities. ?. *ontinual %mprovement -he importance of this principle is paramount, and should a permanent o"4ective of every organi!ation. -hrough increased performance, a company can increase profits and gain an advantage over competitors. If a whole "usiness is dedicated to continual improvement, improvement activities will "e aligned, leading to faster and more efficient development. Aeady for improvement and change, "usinesses will have the fle&i"ility to react quic ly to new opportunities. @. 3actual approach to decision ma&ing Effective decisions are "ased on the analysis and interpretation of information and data. >y ma ing informed decisions, an organi!ation will "e more li ely to ma e the right decision. #s companies ma e this a ha"it, they will "e a"le to demonstrate the effectiveness of past decisions. -his will put confidence in current and future decisions. A. !upplier relationships It is important to esta"lish a mutually "eneficial supplier relationship% such a relationship creates value for "oth parties. # supplier that recogni!es a mutually "eneficial relationship will "e quic to react when a "usiness needs to respond to customer needs or mar et changes. -hrough close contact and interaction with a supplier, "oth organi!ations will "e a"le to optimi!e resources and costs. Why is root cause analysis and systemic corrective action so important in management system standards, such as %!- <==1?
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When pro"lem solving, it is important to find the cause of pro"lem in order to develop a solution. 0ometimes, the most o"vious cause is not the right one. -his is why I05 CDDD stresses the importance of finding the root cause3s. of a pro"lem. -here may "e multiple, su"tle reasons why a process isn=t wor ing correctly, and finding the actual causes will lead a company one step closer to a solution and implementation of corrective actions. -he goal of finding root causes is to improve the way pro"lems are managed. >ecoming adept in recogni!ing the root causes of a pro"lem will lead to a reduced impact, a containment of error, and the prevention of recurrence. Identifying and correcting root causes will also lead to the reduction of unnecessary efforts which in turn will lower the cost of maintaining quality. #s more and more corrective actions are ta en, processes will "ecome more sta"le, and continual improvement will face less interruptions. 4o' does %!- <=== interact 'ith other standards? I05 CDDD is the standard for a quality management system that closely resem"les many other management systems. -hese other systems, "ased on health, safety, the environment, and "usiness continuity, can "e integrated into an overarching "usiness management system. >enefits of this system include aligned interests, reduced costs, and improved efficiency. With one of these systems in place, it is easier to implement any of the others% many documents required for a different standard are already prepared, and personnel are already accustomed to the audit process. ?sing multiple standards will not only increase the efficiency of an organi!ation, "ut increase the integrity of its operations. What does %!- <=== mean to me and my company? I05 CDDD is a standard created to ma e the attainment of quality, consistent products easier "y providing specific steps for development of an organi!ation=s quality management system. -his quality management system is meant to

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monitor the progress of a product or service as it goes through each stage of production, from development to testing to assem"ly to customer feed"ac . 5ne cornerstone of I05 CDDD is continual improvement. Bo company should ever "e satisfied with the conditions of a process at the given moment% they should always "e loo ing for ways to ma e these processes more efficient and effective. I05 CDDD was written with the "usiness world=s insatia"le desire for e&cellence in mind. -his is why continual improvement is a requirement of the standard P to inspire progress and the pursuit of perfection. I05 CDDD is an internationally recogni!ed standard, and that may seem daunting for some smaller "usinesses. 8ow are they going to implement the same standard adopted "y multi-national corporations9 7uite easily, actually. I05 CDDD is a fle&i"le standard that lays down requirements for an organi!ation to follow, "ut allows the organi!ation to fulfill these requirements any way they choose. -his increases I05 CDDDQs scope of effectiveness, allowing a wide range of companies to create quality management systems that match their needs. I05 CDDD is seen in every sector of the "usiness world, and its success is a testament to its worth. With a focus on customer satisfaction, products and services improve and flourish under I05 CDDDQs quality management system. With a com"ination of continual improvement and corrective actions P tenets of I05 CDDD P a "usiness will create processes that run smoothly and efficiently. Q,1,6eference, #uthors' Integration of <ustomer and +rocess 1. 1illmore, 5. :e'is, 1. !aunders, Q,+,6eference-:evine-8ow -7M wor ed for one firm Q,2,6eference,Abridged 'ith permission form Academy of 1anagement Executive 0ol,? Q,7,6eference, A. #hornhill, B #. 1orro'

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Q,;,6eference,

!trategic

1anagementC

*ontemporary

%ssues

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