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UNIT 5

What is ISO 9000? The international organization for standardization (ISO) brought out in 1987 a set of standards called ISO 9000 series of standards on quality Management systems. This was brought in for the purpose of establishing customer oriented quality discipline in marketing, design, engineering procurement, production, inspection, and testing and related service function. Thus quality measures everybody s job. Origin behind the system: ISO was founded in 1946 in Geneva, Switzerland, where I is skill based. ISO is composed of more than 90 member countries. In the beginning of 20th country, Henry For, Fredrick Taylor brought many changed in the production system. Statistical sampling technique was introduced for quality improvement production process. Seeing the interest, ISO Geneva, published a series of quality system models to enable the world communities to standardize on a common set of quality system requirements. This standard was revised in 1994, and the current version is 2000. ISO 9001:2000 gives more emphasis customer satisfaction & continuous improvement Need for ISO 9000 & other quality system Primary reason is that customer is demanding compliance to a quality system. Improvement in process or systems. A desire for capturing global market for product or services Sub contractor or supplies are insists for quality management system. In order or maintain or increase market share. To have were documented quality system to improve efficiency and effectiveness. MERITS: (Worthiness)

Status symbol for every organization Enhances image and reputation Increases capabilities and confidence

ADVANTAGES (QUANTITATIVE IMPROVEMENT): Continuous improvement Customer satisfaction oriented Productive utilization of all reasons. Improvement of efficiency & effectiveness BENEFITS (QUALITY IMPROVEMENT) More order Better results

Increased revenue Value added New programs Quantitative growth.

Process Approach: ISO 9000:2000 standard promotes the adoptions of a process approach to QMS.(quality Management System) to enhance interested party satisfaction by meeting interested party (customer) requirements. The application of a system of processes within an organization together with identification and interactions and managing of those process is termed process approach. ISO 9001:2000 is based on 8 Quality Management Principles: Principles 1. Customer focus 2. Leadership 3. Involvement of people 4. Process approach 5. System approach to management 6. Continual improvement 7. Factual approach to decision making 8. Mutually beneficial supplier relationship Customer focus: Organization should understand and meet customer requirements and service to exceed customer expectation Leadership:. Leaders establish unity of purpose and direction of the organization. They should create and maintain an internal involvement I which people fully involve in achieving the objectives of the organization Involvement of people: People at all levels are the essence of an organization and that full involvement in to their abilities cum he used for the benefits of the organization. Process Approach: The desired results is achieved more efficiency when activities and related recourses are managed a process. System approach to Management Identifying, understanding and managing interrelated processes of a system contribute to effectiveness and efficiency of the organization. Continual improvement: Continual improvement relating to overall performance of the organization is needed. Approach to Decision Making Effective decisions are based on the analysis o data and information.

Mutually beneficial supplier relationship Treat the suppliers as partner and cordial relationship enhances the ability of levels to create value.

Structure of ISO 9000 Standards Sl.No. ISO Standard BIS Indian Standard 1 ISO 8402: 1994 IS (Rev) 13999:1994 2 ISO 9000 IS 14000

Description

ISO 9001 (1994)

IS 14001

ISO 9002 (1994) ISO 9003 (1994)

IS 14002 IS 14003

Vocabulary of Quality Management and quality Assurance Quality Management and Quality Assurance Standards ISO 9000 series consists of four documents: ISO 9001, ISO 9002,ISO9003, ISO 9004 First release ISO 9000:1987 Revised ISO 9000 : 1994 Revised ISO 9000 : 2000 Model for Quality Assurance in design, Development, Production, Installation and Servicing. Model for Quality Assurance in Production, Installation and Servicing Model for Quality Assurance in final inspection and tests. GUIDELINES FOR USE BY A PRODUCER DEVELOPING A QUALITY SYSTEM TO MEET is 9001/2/3. It is designed to help companies understand the relationship between technical, managerial and human element involvement in assuring the quality of products and services it provides. Guidelines for Auditing quality system Quality Assurance requirements for measuring equipment Quality Assurance requirements for quality manuals.

ISO 9004 (1994)

IS 14004

3 4 5

ISO 10011 Part 1,2,3 ISO 10012 ISO 10013

IS 14011, Part 1,2,3 IS 14012 -

QUALITY AUDITING Definition. A systematic and independent examination to determine whether quality activities and related results comply with planned arrangements and whether these arrangements are implemented effectively and are suitable to achieve the objectives (ISO 8402) Objectives of Audits a, To determine the effectiveness of the quality system implemented in achieving the quality objectives. b, To provide an opportunity to improve the quality system. c, To meet the regularity and stability requirements. d, To provide an evidence for the effectiveness of the quality system implementation for certification. Types of Audit 1,Internal Audit--First party audit 2,External Audit--Second party audit Third party audit First party Audit.(or internal audit) This refers to an internal audit where the auditee is its own client. (i.e.,)audit is done by an organization working on itself. Second party Audit This refers to audit by one organization on another organization (auditee). A customer does this type of audit on a supplier. Thirty party Audit: This audit is usually conducted by a recognized agency. Certificate of quality assurance will be used after then audit only. Stages of an AUDIT The four stages of the audit are 1) 2) 3) 4) Audit planning (planning and preparation for the audit) Audit performance (Execution of the audit) Audit Reporting (Reporting the audit requests) Audit follow-up (Corrective actions & follow up) 1. Audit Planning: Audit schedules, Audit personnel, Notification to the audit, preparation of check out. 2. Audit performance: Opening / entry meetings, Audit process, Identify the deficiencies. 3. Audit reporting: Recording the non-conformity, Summaries the audit findings, reports to contain. a. Refer documents for the audit b. Observation of non conformity c. Corrective actions requires Closely meeting & review

4. Audit follow-up: Auditor to identify the non-conformity Auditee is responsible for making corrective actions Follow up of corrective action within the agreed true period. 5.Conduct the audit stages: a. Opening meeting b. Gather information c. Record observation & nonconformity d. Evaluate the significance of nonconformance e. Access the compliance request f. Closing meeting, review Audit can be further classified based on the area of the coverage of the audit 1) 2) 3) 4) System Audit Process Audit Product Audit Compliance Audit 1. System Audit The system audit is carried out to verity whether the reliability of the organization carried out conforms to the documented procedure. It includes any activity them on affect the final product quality such as, product development & design, manufacturing planning, process contact, final produce testing, internal audits and administration of quality function. 2. Process Audit It involves the re inspection of processes to verity the adequacy of the process involved to meet quality system requirements through specification and capability studies. This includes processes like making, welding printing etc. Audit can be of internal or external type. 3. Product Audit This audit is conducted before the delivery of the product to customer. It is done at the final stage to check the quality specification and customer requirements. 4. Compliance Audit This audit is conducted to establish to ensure the documented systems/procedures are in planned & followed by the employees of the organization. It ensure the compliance of the performance if the procedures this is an internal Audit.

Documentation requirement of ISO 9001:2000 The quality system documentation can be viewed as a four terms meeting from due level to author in descending order

Define WHAT will be done

POLICY
PROCEDURES WORK INSTRUCTIONS OR PRACTICES
WHO, WHEN, WHERE

HOW

EVIDENCE RECORDS OR PROOF

POLICY: The 1ST that document is the policy manual This is the document that define what will be done & why? A quality policy manual should be written clear, precise, practical & easy to

understand. Procedure:
The 2nd that document is the quality procedure Procedure describe methods used to implement & perform the stated policies A procedure defines; who should perform specific tasks; when the tasks should be done; where the documentations will be made sharing the tasks completion. Procedure applies to all areas within the organization.

Work instructions The Work instruction are usually department, module, task or product oriented informing how a job will be done The wok instruction may be detailed drawing, recipe, routing sheet, photogragh, video or simple a sample for a conformity

Records:
Records are documentary evidence to support for verification, corrective & preventive action.

Registration procedure of ISO 9000 Implementation (AU) Top management & commitment Appoint the management representative Create awareness Appoint an implementation Training (implementation team, supervisor, internal audit team) Time schedule Select element owner Review the present system Write the documents Install the new system Conduct internal audit Management review Pre assessment audit Registration EMPLOYEE INVOLVEMENT : In a TQM setup one of the core elements is Employee Involvement. The very word Total means everybody, in everything that is done and every time that is done should speak quality. Total quality cannot be achieved without involvement of each and every employee in the organization.

EMPLOYEE INVOLVEMENT PROCESS : 1. Employee motivation 2. Employee empowerment 3. Teams and Team work 4. Recognitions and reward scheme 5. Performance appraisal * * * In the conceptual frame of TQM Dr. Juran stressed for the empowerment of people and use of teams. The Japanese have fully implemented by evolving a number of team concepts all aimed at employees involvement. The following are the list of such team concepts : 1. Quality circle 2. Five S ( 5 S) teams SEIRI SEITON SEISO SEIKETSU

Organization, Neatness, Cleaning, Standardization,

SHITSUKE

Discipline

3. KAIZEN teams ( KAI Change, ZEN- Better continuous improvement) 4.Total Productive Maintenance teams ( TPM) 5.Quality Improvement Teams (QIT) at the management level. EMPLOYEE MOTIVATION: Concept of Motivation: * * Scott Defines, Motivation means a process of stimulating people to accomplish desired goals. Edwin B.Flippo defines, Motivation is the process of attempting to influence others to do your will through the possibility of reward. Definition : Motivation is the process that starts with a psychological need that activates behavior or a drive that is aimed at a goal or incentive.

Needs

Drives

Goal or incentives

THEORIES OF MOTIVATION :

* *

People need to be motivated for involvement and higher levels of performance In quality circles widely practiced in Japan, the main motivating factor is people involvement and participations.

a) MASLOWS HIERACHY OF NEEDS : * * Motivation can be best explained in terms of a HIERACHKY of needs and that there were five levels. Once a given level is satisfied it can no longer motivate the person

LEVEL -5

SELF-ACTUALIZATION

( Opportunity to go based on ability)

LEVEL- 4

ESTEEM

( Ego needs self image, challenging work , responsibility)

LEVEL-3

SOCIAL

(Job status , prestige , group goals Social interaction )

LEVEL-2

SECURITY

(Safety need )

LEVEL-1

SURVIVAL

(Physiological - Food , cloth and shelter)

LEVEL-1 : Survival means food, clothing, shelter which is usually provided by a job. In work place, level 1 needs proper lighting , heating , air-conditioning , ventilation , phone system , data/ voice access and computer information system. LEVEL 2 : Security- a safe place to work with job security. It also includes privacy on the job to lock ones office are storage for personal items. LEVEL 3 : Social Man is a social being and is gregarious by nature. (Gregarious fond of company, sociable). He needs group affiliation, Job status , prestige , group goals and social interaction. Quality circle s enable fulfillment of this goal . If possible employee should be provided with social areas such as canteen, conference room, water coolers and notice boards. LEVEL -4 : Esteem relates to pride and self work. Every one , regadless of position or job, wants to be recognized as a person of value to the organization. Esteem comprises of self imaging achievement, challenging work , responsibility , free communication and need for reputation . LEVEL 5 : Self actualization - A self activated person wants to release his individual potential , his creativity , his aptitude and abilities to the widest possible areas. He wants to take up new and

intense job challenges, needs personal fulfillment. Quality circles enable fulfillment of higher need factors. ( B ) MEGREGORS ASSUMPTION THOERY X AND Y: According to Megregor, understanding about human nature and behavior can provide a basis for applying human relations to motivation and management practices. Assumed attitude of employees Theory X Theory Y towards (A) Organizational Indifferent to them Will work towards them Objective (B) Responsibility Will avoid it Will accept responsibility (C) Work Dislikes all forms of work Considers work as natural, if rewards/ recognition with working (D) Rewards Wants money and security A pay- will satisfy a variety of needs (E) Appropriate means Pressure thrust of punishment Established work for environment, dealing with employee for tasks and close control pay recognition, challenge achievement Quality circle operate on the factors assumed on Theory Y. (C) HERZBERGS THEORY OF HYGIENIC FACTORS (DISSATISFIERS) AND MOTIVATING FACTORS:

This theory says that certain pre-requisites, which Herzberg calls as Hygienic factors are needed for effective motivation. He calls the hygienic factors as dissatisfies, the absence of which would make operation of motivation impossible. HYGIENIC FACTORS 1.Companies policies and administration 2. Working conditions 3. Welfare measures 4. Wages 5. Security 6. Inter-personal relations 7. Supervision MOTIVATING FACTORS 1. Challenging work 2. Increased responsibility 3. Sense of achievement 4. Recognition for achievement

It can be seen from the above that, Quality circles play a vital role to the motivating factors. HYGIENIC FACTORS: Lack of hygienic at home, surroundings with garbage accumulating will only cause diseases but also spread diseases. Similarly in the absence of hygienic factors, one cannot energize employees towards motivated action.

EMPLOYEE EMPOWERMENT: Empowerment implies that the person acts from a state of autonomy, doing what he knows is the right thing, to do under a given set of circumstances. Definiton: According to Websters dictionary, the verb empower means, to give the means, ability or authority. Operative definition : Empowerment is passing on responsibility and ownership for the job to the task performer . Therefore empowerment in work-setting involves; giving people the means, ability and authority to do something to achieve the organizational goals. GENERAL PRINCIPLES FOR EMPOWERING PEOPLE: 1. Tell people what their responsibilities are. 2. Give the authority equal to the responsibility given. 3. Set standards of excellence. 4. Provide them the necessary training. 5. Give them the knowledge and information (data). 6. Provide feedback on their performance. 7. Trust them and create trust worthiness in the organization. 8. In case of failure, guide them and control them. 9. Treat them with dignity and respect. CONDITIONS TO CREATE EMPOWERED ENVIRONMENT: (Three conditions) 1. Every one must understand the need for change: * The entire organizational function and management have to change when an organization wants to empower its people. * Proper planning , preparation and communication will help for the change. 2. Need for system change : * An empowered environment means transformation of the organization into total participative management. * These paradigm ( New models / New system ) shifts from traditional forms, need new system to match it. * The system should be supportive and reinforce an environment of empowerment and participation. 3. The Organization must enables its employees : Enablement means providing information, education and skill to its employees Change necessitates Change of work habits , New skill development, Overcoming resistance to change QUALITY OF EMPOWERED PEOPLE :

In Quality of work employee should be empowered : To stop production line when a defective component is produced Check one sample component and give a green signal for a mass production. To try an improved process and recommend for change.

CHARACTERISTICS OF EMPOWERED EMLPOYEES: 1. They feel responsible for their work. 2. They are given a free hand in their work. 3. They balance their own goals and those of organization (personal needs (Vs) organizational goal). 4. They are well trained, equipped, creative and customer oriented. 5. They have self-interest and motivated. 6. They are challenged and encouraged. 7. They monitor and improve their work continuously. 8. They find new goals and change challenges (targets). It is important to empower all employees at all levels of the organization for continuous improvement. TEAM WORK: Define Team: A team is defined as a group of people working together to achieve common objectives or goals. Team work: It is the cumulative actions of the team during which, each member of the team plays his individual interests and opinions to fulfill the objectives or goals of the group. TYPES OF TEAMS: 1. QUALITY CONTROL CIRCLES: Quality control circles are group of people from one work unit, who meet together on a regular basis to identify, analyze and solve quality and other problems within their area. 2. PROCESS IMPROVEMENT TEAMS: * These are temporary teams (6 to 10 members) with members drawn to the process area with an internal customer included in it. *The team works on process improvement. *Team gets disbanded after completing the task *If a process is multidimensional, members may be drawn from cross functions . 3.CROSS FUNCTIONAL TEAMS : * Members are 6 to 10. *Teams consists of members from different cross functions. *Teams takes up project for improvement and complete it within a time period. *Team gets disbanded and a new team formed for a different project. 4.NATURAL WORK TEAMS : * Teams are formed for the improvement of projects. * Teams are selected by the Manger and not voluntary as in QC. * Teams work under the direction of Manager.

* These teams are not as effective as the QC circle teams. 5.SELF- DIRECTED AND SELF-MANGED TEAMS : * These teams are the epitome ( a perfect model ) of empowered organization. * These teams work autonomously and manage themselves. * They organize the work flow requirement. * The team coordinator liaisons with the senior management. * The team coordinator changed in-turn. * Team meets daily and plans the work. * Team is empowered to hire people, and when not required can terminate the services. * Teams have access to the business information of the company. * The focus of the team is to plan, control and improve. * According to survey of Fortune thousand companies , 66% of these companies are set to be using self-Directed teams. RECOGNITION AND REWARD : RECOGNITION : *Recognition is a form of employee motivation in which organization publicly acknowledges the positive contributions an individual or team has made to the success of the organization. *Acknowledgement is delivered using verbal and written praise and may include such as certificates and plagues. ( an ornamental work fixed to the wall ) *Recognition should be valid, genuine and meaningful for the giver and the recipient. *The Recognition should be on a timely basis. *People like to recognize either as a team or individually. *Recognition includes pictures (Photos) on the bulletin board, articles in the news letter, letters to family, making a presentation to the management , personal phone calls, placing positive notes in the personal records and increase responsibility. REWARD: * *

* * *

Reward is something tangible such as cash award, theatre tickets, dinner and tour to promote desirable behaviour. Reward system : Employee should be involved in planning and implementation of recognition and reward programmes . This activity should be performed by the cross functional teams representing all the areas. System should be developed with employee involvement which will most likely succeed. This system is simple. The Rewards include cash award, gift certificates, dinner out , gift to charity in the name of recipient, travel trips etc.

PERFORMANCE APPRAISAL ( Inform the performance ) : PURPOSE : * The purpose of performance appraisal is to let employees know how they are doing, and provide a basis for promotions , wage increase , counseling and other purposes related to employee future. * There should be good relationship between employee and appraiser. * Employee should be made aware of the appraisal process , what is evaluated and how often. * The appraisal should point out the strengths and weaknesses as well as how performance can be improved . * Performance appraisal and review should be used as a system for improving the quality of performance of the individuals concerned rather than as a punish measure . * This appraisal system can through light on some interesting about why some employees are not performing and the conditions needed to improve them.

NEED FOR PERFORMANCE APPRAISAL AND REVIEW : 1. 2. 3. 4. 5. 6. 7. 8. To let sub-ordinate know about their good work. To recognize their good work. To point out how and where they can improve. To develop the employee on the present job To train people for higher responsibilities. To let people know their career opportunities. To serve as a record for assessing the department. To give timely warning or knowledge to those who are below normal to do better.

PROCESS OF PERFORMANCE APPRAISAL : There are six steps in the development of appraisal system : 1. Establish performance standards 2. Communicate performance expectation to employees 3. Measure actual performance 4. Compare actual performance with standards 5. Discuss the appraisal with the employee 6. If necessary, initiate corrective action.

BENEFITS OF PERFORMANCE APPRAISAL : 1. It helps the management to assess the potential of the person. 2. It helps in developing in future mangers to take-up higher responsibilities. 3. It helps in delivering a performance linked reward or compensation package. 4. It helps to asses the weakness of the individual and hence determine the training needs. 5. It helps in motivating people to do better . 6. Create a potential manpower bank who can be used for various assignments.