DRIVE-WINTER 2014

PROGRAM/SEMESTER- MBADS (SEM 4/SEM 6) MBAFLEX/ MBAN2 (SEM 4) PGDTQMN

(SEM 2)
SUBJECT CODE & NAME-QM0017, QUALITY MANAGEMENT SYSTEMS
BK ID-B1350 CREDITS-4 MARKS-60

Q.1. Quality Management System is a complete and planned approach to organizational

management. Describe the various principles of Quality Management Systems. What are the
various approaches to Quality Management Systems?
(Meaning of Quality Management System, Principles of Quality Management Systems,
Quality Management System approaches) 2, 4, 4
ANS:
Meaning of Quality Management System: Quality Management System, in the simplest of terms, is
defined as The process of Management of the Systems of an organisation, with regard to its Quality related
activities, for meeting and enhancing customer satisfaction and also taking care of all other interested
parties such as legislative and regulatory bodies, shareholders, suppliers, employees, etc. A Quality
Management System (QMS) is required for any organisation which desires to demonstrate its ability to
consistently provide products that meet both customer needs and the applicable regulatory requirements.

Principles of Quality Management Systems: Quality management is an integral part of the leadership
and management methodologies of all the organisations. The International Organisation for Standardisation
(ISO) technical committee that works on the ISO 9000 standards has published the principles of quality
management and the application guidelines. The quality management principles are fundamental as they
help organisations in operations and are comprehensive rules that help in the leading the organisation.
These principles ensure that the performance and Quality of an organisation is improved continuously.
Principle 1: Customer focused organisation: All the organisations depend on their customers.
Therefore, it becomes necessary to understand the current and future needs of the customers in order to
meet the requirements and expectations of the customers.
Principle 2: Leadership: Leaders unite the organisation and steer the way to achieve organisational
objectives. They create and maintain a vibrant internal environment of the organisation. This motivates the
people working in the organisation to get fully involved towards achieving the objectives of the organisation.
Principle 3: Involvement of people: People at all levels are valuable resources; they represent the
intellectual assets of the organisation and are the essence of an organisation. Their involvement helps an
organisation in their pursuit of excellence.

Principle 4: Process approach: When resources and activities are managed efficiently, a desired
approach is also achieved effectively.
Principle 5: System approach to management: It includes identifying, understanding and managing
a system of various interrelated processes for a given objectives. This improves the efficiency and the
effectiveness of the organisation.
Principle 6: Continual improvement: Continuous improvement alone brings sustained excellence and
is a vital process in achieving customer satisfaction.
Principle 7: Factual approach to decision making: It is very important to make effective decisions
that are based on the analysis of data and information.
Principle 8: Mutually beneficial supplier relationships: The organisation and its suppliers are
interdependent. The mutually useful relationship enhances the ability to create value.
Quality Management System approaches: The various approaches that are essential to a successful
management of the Quality System are as listed:
1. Senior management commitment: It is important that the entire executive staff, the senior managers
as well as the mid-level managers clearly demonstrate their full support and effort. This also serves to
mediate various conflicts of schedules when team members must be deployed to quality management
activities.
2. Conduct an initial status survey/gap analysis: The basic approach to a successful implementation
is to rely on a proven expert, be it the quality professional appointed internally or the consultant that you
contract with. This determines the present system followed - and the goal that needs to be achieved for a
successful implementation of the Quality Management System.
3. Create a documented implementation plan: The results of the Gap Analysis serve to form the basis
for the implementation of the project plan. The best approach is to treat this implementation as you would
handle for any formal project such as completing with a plan, scheduling, budgeting and reviewing the
points. This helps in tracking the progress and the utilisation of the budget.
4. Establish an implementation team: Regardless of the choice of the implementation, the effort
requires a team comprised from all the functional areas of the organisation to achieve success.

Q.2. Explain the scope and goals of ISO/TS 16949.Describe the various benefits provided by
ISO/TS 16949.
(Scope, Goals, Benefits) 3, 3, 4
ANS:
Scope and goals of ISO/TS 16949: The review of the ISO/TS 16949:20020 which resulted in the latest
2009 edition, was the effort of International Automotive Task Force (IATF) and the ISO technical
committee. The effectiveness of the QMS must be determined on a continual basis and continual
improvement should be followed the same. By how well the scope of ISO/TS 16949 covered by the standard
is as follows:

Applies to automotive supply chain facilities that manufacture product materials, production and

service parts and provide value added services like heating, welding, painting etc.
Cars, trucks (light, medium and heavy), buses and motorcycles
The standard cannot be applied to remanufactured automobile parts
The standard cannot be applied to distribution centres, warehouses, parts packagers, logistics

support and sequencers

TS 16949 cannot be applied to automotive after-market service parts made to original subscribing

OEM specifications.
TS 16949 cannot be applied to manufacturers of tooling, production equipment, jigs, fixtures,
moulds which are used by the auto industry.

The goal of the standard is to improve the quality management system of the organisation which is as
follows:

To develop a quality management system that provides for continual improvement.

Various benefits provided by ISO/TS 16949: Some of the benefits provided by ISO/TS 16949 to the
organisation include the following:
Global recognition: Certification helps vehicle manufacturers to be internationally recognised. It
provides a necessary step to increase work with many of the world's largest automotive manufacturers.
Saves Money: It provides improved process, product quality and raise s the confidence of the
manufacturers.
Defect Prevention: The process approach helps to reduce waste, prevents defects.
Integration: The standard integrates well with the environment standard 14001, Occupational Health and
Safety standard OHSAS 18001.
Audit: It reduces the need for multiple second and third party audits.

Enhanced customer satisfaction due to process based audit.

Provides improved supplier development.

It monitors customer perception to check whether the requirements are met, evaluates the data
continuously and demonstrates compliance with customer requirements and efficiency of the
processes.

Benefits to the automotive industry: The benefits to the automotive industry through the ISO/TS
16979 standard include the following

Application of common and consistent international quality system requirements.

Improved supply chain product and process quality.
Increased confidence in global supplier quality.

Q.3. Explain the procedures and benefits of SA 8000.

(Procedures, Benefits) 5,5
ANS:
SA 8000 procedures: SA 8000 procedures enhance awareness that leads to enhance social policy among
corporations. The following are procedures in SA 8000:
Procedure for dealing with children and juvenile labour: This procedure helps to guide the
organisation to deal children and juvenile labour in the organisation.
Reviewing procedure for complaint and discipline: These procedures aim to protect employees
right as is regulated by laws. They illustrate the implementation of discipline on employee by listing out how
violations are handled and how complaints would be handled.
Procedure for training about social responsibilities: This procedure certifies that the staffs are
trained about Social Duty, and about safety at work, the working knowledge to deal with problems at work
and to meet the requirement of SA 8000:2001 standard.
Procedures that evaluate and manage suppliers: These procedures help the organisation in
evaluating and managing suppliers.
Non-discrimination regulation: These procedures help the organisation to create an equal working
environment among employees.
Regulation about emergency situation responses: These procedures detail the steps taken by
employees and organisations during an emergency situation. For example the rules of using the emergency
exit.

Fire protection and prevention regulations: As the name suggests, these procedures list the fire
protection and prevention rules, which details the dos and donts that help in preventing fire. For example,
having a fire safety wall.
Regulations on using machines and equipments: These rules list the general regulations that guide
special machines like for example pressure machines and inflammable chemicals.
Electricity safety regulation: These rules list the electrical safety precautions, and the training an
employee has to undergo before repairing, assembling, open and closing of electric equipment.
Labour hygiene regulations: These procedures outline the necessary gears and protectors that have to
be worn while at work, the sanitary and food hygiene requirements and the health requirements of
employees.
Labour safety regulation: These procedures set out rules about how the preventive steps taken by the
organisation (for example: using suitable tools).
Company health & safety responsibility: The general Director of the organisation is responsible for
the health and labour safety of the employees by establishing a dedicated department for the same and a
medical centre that takes care of the accidents.
Benefits of SA 8000: SA 8000 procedures are implemented and aim at proper managing reputation risks
in the world business environment. It gives a chance to show good business practice and ethical trading. The
benefits of this certification are good and the facilities certified by this enjoy a fantastic competitive
advantage and workers get to experience vast benefits.
Benefits for workers, trade unions and NGOs:

Improved prospect to organise trade unions and bargain collectively.

A tool to educate workers about core labour rights.
Another opportunity to work directly with business on labour rights issues. Public awareness of
companies committed to assuring humane working conditions.

Benefits for business:

Enhance Organisation and brand reputation by improving employee recruitment, retention and

performance.
Better supply chain management and performance.

Benefits for consumers and investors:

Clear and convincing assurance for ethical decisions.

Identification of products made ethically and companies committed to ethical sourcing.
Broad coverage of product categories and production geography.

Q.4. The People CMM is an organizational change model. Explain the maturity levels of

People Capability Maturity Model (People CMM).

(Meaning of PCMM , Maturity levels of People CMM) 2,8
ANS: PCMM: The People Capability Maturity Model (People CMM) is a structure that helps organisations
successfully address their people issues. The People CMM is an organisational change model. It is a maturity
framework that centres on constantly improving the management and development of the human assets of
an organisation. It is designed on the basis that enhanced workforce preparation will not survive unless an
organisation's conduct changes to support them. It presents a roadmap for transforming an organisation by
steadily improving its workforce practices. People CMM consists of five maturity levels like CMM model
through which an organisation's workforce practices and processes evolve. At each maturity level, a new
structure of preparations is added to those implemented at earlier levels.
Maturity levels in the people CMM: In the People CMM stage, the executions of complicated workforce
practices are done through these maturity levels. With the exclusion of the Initial Level, each maturity level
is characterised by a set of interconnected practices in essential areas of workforce management. When
institutionalised and executed with proper regularity, these workforce practices generate new capabilities
within the organisation for managing and developing its workforce.
Maturity level 1 (The Initial Level): Organisations at the Initial Level of maturity usually have difficulty
maintaining talented individuals. Low maturity organisations are poorly capable to react to talent scarcity.
Despite the significance of talent, employees practices in low maturity organisations are often unplanned
and inconsistent. In some areas, the organisation has not defined workforce practices and in other areas, it
has not trained responsible individuals to perform the practices that exist.
Maturity level 2 (The Managed Level): The workforce preparation implemented at this level focus on
activities at the unit level. The first step to develop the competence of the workforce is to get managers to
take workforce activities as high priority of their job.
Maturity level 3 (The Defined Level): The primary objective of this level is to help an organisation
achieve a competitive advantage from developing the various competencies that must be united in its
workforce to achieve its business activities.
Maturity level 4 (The Predictable Level): .At the Predictable Level, the organisation manages and
exploits the capability created by its framework of workforce competencies. The organisation is now able to
manage its capability and performance quantitatively .and It is able to foresee its potential for performing
work because it can quantify the capability of its workforce and of the competency-based procedure they use
in performing their assignments.
Maturity level 5 (The Optimising Level) : At this level, the complete organisation is determined on
continual improvement. These improvements are made to the potential of individuals and workgroups, to

the performance of competency-based processes, and to workforce practices and activities. The organisation
uses the results of the quantitative management activities established at Maturity Level 4 to guide
improvements at Maturity Level 5.

Q.5. Explain the elements and benefits of Occupational Health and Safety Management
Systems (OHSAS).
(Meaning of OHSAS, Elements of OHSAS, Benefits of OHSAS) 2,6,2
ANS: OHSAS: Occupational Health and Safety Management Systems is a framework for an organisation to
establish controls that mitigates health and safety risks, reduces the occurrence of accidents and helps to
improve its operational performance. The requirements of OHSAS 18001 were developed from British
standard 8800.

Elements of OHSAS: OHSAS 18001 though not a ISO standard, is still structured in the same way as ISO
14001, the environmental management system standard, and has essentially the same elements. There are
13 elements in OHSAS. They are as follows:
Developing an OHSAS policy: The policy is meant to create an overall sense of direction and define the
values of action for an organisation. This includes positioning overall health and safety objectives and an
assurance to at least comply with appropriate legal requirements and with other requirements to which the
organisation subscribe that relate to its OH&S hazards, prevention of injury and ill health and frequent
improvement in OH&S management and performance.
Hazard identification & risk assessment: The organisation must recognise and manage risks
associated with routine and non-routine activities of all persons having access to the workplace (including
contractors (sub) and visitors).
Identifying legal requirements: The organisation must recognise and be aware of any regulations
affecting its operation and regularly update the changes in it. Relevant personnel must be kept informed.
OHSAS objectives: The organisation enables a structured, recognised framework for the effective
management of health and safety risks.
Establishing an OHS management program: The organisation must set quantifiable OH&S
objectives and track results in all applicable locations, levels and functions.
Training employees: The organisation must have efficient procedures ensuring that personnel assigned
to tasks are competent to handle their job which includes the correct handling of operating equipment.
Implementing OHS control measures: The organisation must define control methods for all internal
and external working environment required by the OH&S management system to certify that they are
successfully managed and protected.
Emergency planning: The organisation must recognise the prospective for accidents, incidents and begin
plans and procedures to respond to them, including the mitigation of any illness or injury.

Document and record control: The organisation must create, document (as the standard requires), and
execute procedures to control the identified hazards and risks of its operations it includes to specify
operating parameters and create and retain procedures for the design of the workplace.
Internal audit programs: The organisation should review and repeatedly monitor the effectiveness of its
OH&S management system through periodic internal audits.
Corrective and preventive action: The organisation must define means for dealing and for taking
corrective and preventive actions and review their effectiveness.
Management involvement and management review: Top management must carry out reviews of the
OH&S management system.
Benefits: The following are some of the benefits of the standard:

There is fair reduction of accidents and fewer interruptions of production due to control.
There is a fair reduction in occupational disease and working conditions. This results in employees

being happy and motivated.

Recognised demonstration of legal and regulatory compliance.
Increased access to new customers and winning additional work (especially with governmental

agencies).
Reduction of public liability insurance costs.

Q.6 what is Business excellence? Explain the core themes of excellence. How to build an
excellence framework? (Meaning of Business excellence, Core themes of excellence, Building
an excellence framework) 2, 5, 3
ANS:
Business Excellence: During the year 1980, organisations in the West realised that the importance of
quality was the strategic differentiator. There was a change on the importance laid from quality control to
quality assurance, and many ideas came out like company-wide quality control, Total Quality (TQ), and
Total Quality Management (TQM) The concept of companywide quality with the focus on management
and people came with the idea that, if all departments approached quality with an open mind, success was
possible with the contribution of the management.
The Core Theme of Excellence: Most excellence approaches take their roots to TQM. Several common
themes run through all qualityor excellenceapproaches, and now let us tries to identify several core
concepts that have contributed to the development of the core themes of excellence. The core themes of
excellence are:
Leadership: The attribute of leadership guides the organisation with an effective approach as it sets a clear
direction and values for the organisation, motivates employees to establish customer focus, and empowers
the organisation and its people in the pursuit of excellence.

Customer focus: The customer is the final reviewer of product quality and service delivery. Customer
loyalty and preservation are best obtained by understanding the current and future needs of present and
future customers. The voice of the customer is important in designing the product or service offers, and in
designing the processes that impact the customer.
Strategic alignment: All the excellence models give the importance of strategic development, alignment
and planning. In this context, the excellence approach and many TQM-type programmes can be
differentiated, where a lack of strategic integration frequently results in bolt-on quality programmes.
Organisational learning, innovation and improvement: The vital elements in an excellence
approach motivate individual towards organisational learning, innovation and improvement through the
effective sharing of knowledge and information.
People focus: An organisations success is very much dependent on the knowledge, skills, creativity and
motivation of its people. This people potentials is best tapped through shared values supported by a culture
of trust and authorisation. Valuing people is an important element in an excellence approach.
Partnership development: Organisations have to develop long-term strategic mutually beneficial
partnerships with a range of external partners including customers, suppliers and other stakeholders.
Successful long-term partnerships focus on delivering sustained value for the partners.
Fact-based processes management: Processes are the engines that deliver every organisations value
scheme. The focus of all excellence approaches is based on designing processes to meet customer
requirements by systematically managing processes on the basis of facts and improving processes on the
basis of customer feedback and feedback from the process itself. Process ability is based on the capacity of
the organisations processes to meet customer requirements.
Results focus: Excellence is concerned with creating value for all the key stakeholders, including
customers, employees, suppliers and partners, the public and the entire community. Balancing the needs of
all those key stakeholders is a critical part of developing successful strategies.
Social responsibility: Responsibility to the public, ethical behaviour and good citizenship are significant
in an excellence approach, and are critical to the longer-term interest of the organization.
Building an Excellence Framework: To be of value to an organisation, self-assessment is considered to
be a change management approach. There is a need to provide support mechanisms and to recognise that
there will be obstacles to implementation and cost implications. It is also important to acknowledge that as
an organisation develops, its challenges will change, as will the approach it needs to take. The selfassessment roadmap, which maps out the progress of self-assessment over time will indicate the support
mechanisms required and the also the barriers an organisation is likely to face in the implementation of

award criteria. Becoming a world-class organisation takes time and often the process cannot be accelerated,
as there is a need to implement excellent activities as well as an excellence culture.