தேடிச் சோறுநிதந் தின்று - பல சின்னஞ் சிறுகதைகள் பேசி - மனம் வாடித் துன்பமிக உழன்று - பிறர் வாடப் பலசெயல்கள் செய்து - நரை கூடிக் கிழப்பருவ மெய்தி - கொடுங் கூற்றுக் கிரையெனப்பின் மாயும் - பல வேடிக்கை மனிதரைப் போலே - நான் வீழ்வே னென்று நினைத் தாயோ? நின்னைச் சில வரங்கள் கேட்பேன் - அவைநேரே இன்றெனக்குத் தருவாய் - என்றன் முன்னைத் தீயவினைப் பயன்கள் - இன்னும்மூளாதழிந்திடுதல் வேண்டும் - இனி என்னைப் புதிய உயிராக்கி - எனக்கேதுங் கவலையறச் செய்து - மதிதன்னை மிகத் தெளிவு செய்து - என்றும்சந்தோஷங் கொண்டிருக்கச் செய்வாய்!
-mani
புதன், 6 மே, 2009
சனி, 2 மே, 2009
TQM
UNIT – I INTRODUCTIONDefinition of Quality:The dictionary has many definitions of “quality”. A short definition that has achieved acceptance is : “ Quality is Customer Satisfaction”. “Fitness for use” is an alternative short definition. Here, customer means anyone who is impacted by the product or process.Quality is “ a predictable degree of uniformity and dependability, at low cost and suited to the market”.Quality is a relative term, generally used with reference to the end-use of a product. Quality should be aimed at the needs of the consumer, present and future.According to ISO 8402, quality is “ the totality of features and characteristics of a product or service that bear on its ability to satisfy stated or implied needs”.Broadly quality is:a) Fitness for useb) Gradec) Degree of preferenced) Degree of excellencee) Conformity to requirementsDimensions of Quality :The following are the components reveal the dimensions of quality.Manufacturing Industries Service IndustriesProduct Features AccuracyPerformance TimelinessReliability CompletenessDurability Friendliness and courtesyEase of use Anticipating customer needsServiceability Knowledge of serverEsthetics EstheticsAvailability ReputationReputationQuality Planning :Quality planning is the pre determined activities in order to achieve conformation to the requirements. Many organizations are finding that strategic quality plans and business plans are inseparable. The quality planning procedure given by Joseph.A.Juran has the following steps:· Identify the customers· Determine their needs· Translate those needs into our language.· Develop a product that can respond to those needs· Optimize the product features to meet our and customer needsQuality Costs :http://shw.fotopages.com/4929161.htmlAll organizations make use of the concept of identifying the costs needed to carry out the various functions – product development, marketing, personnel, production etc.,Until the 1950’s this cost concept had not been extended to quality function, except for the departmental activities of inspection and testing.During the 1950’s the concept of “Quality Cost” emerged. Different people assigned different meanings to the term. Some people equated quality cost with the cost of attaining quality; some people equated the term with the extra incurred due to poor quality. But, the widely accepted thing is “Quality cost is the extra cost incurred due to poor or bad quality of the product or service”.Categories of Quality Cost :Many companies summarize quality costs into four broad categories. They are,a) Internal failure costs - The cost associated with defects that are found priorto transfer of the product to the customer.b) External failure costs - The cost associated with defects that are found afterproduct is shipped to the customer.c) Appraisal costs - The cost incurred in determining the degree ofconformance to quality requirement.d) Prevention costs - The cost incurred in keeping failure and appraisalcosts to a minimum.Some times we can also include the hidden costs ie., implicit costs.Traditional Quality cost modelEmerging Quality Cost Model... yes, higher quality quality doesn't mean higher costsThe companies estimate quality costs for the following reasons :a) To quantifying the size of the quality problem in the language of money improves communication between middle managers and upper managers.b) To identify major opportunities for cost reduction.c) To identify the opportunities for reducing customer dissatisfaction and associated threats to product salability.Analysis Techniques for Quality Costs :Refer the recommended text book.Basic Concepts of Total Quality Management :Definition of TQM:Total Quality Management is a management approach that tries to achieve and sustain long term organizational success by encouraging employee feedback and participation, satisfying customer needs and expectations, respecting societal values and beliefs, and obeying governmental statutes and regulations.Five Pillars of TQM are,· Product· Process· System· People· LeadershipTotal Quality Management is an effective system for integrating the quality development, quality maintenance and quality improvement efforts of various groups in an organization continuously, so as to enable marketing, engineering, production and service at the most economic levels which allow for full customer satisfaction.The TQM is applied to many stages of Industrial Cycle which are listed below :1. Marketing2. Engineering3. Purchasing4. Manufacturing5. Mechanical6. Shipping7. Installation and product service.Fundamental factors affecting Quality : ( 9 M’s)1. Market2. Money3. Management4. Men5. Motivation6. Materials7. Machines and Mechanization8. Modern Information Methods9. Mounting Product RequirementsBenefits of TQM :Customer satisfaction oriented benefits :1. Improvement in product quality2. Improvement in product design3. Improvement in production flow4. Improvement in employee morale and quality consciousness5. Improvement in product service6. Improvement in market place acceptanceEconomic improvement oriented benefits :1. Reduction in operating costs2. Reduction in operating losses3. Reduction in field service costs4. Reduction in liability exposureHistorical Review :The history of quality control is undoubtedly as old as industry itself.In 1924, W.A. Shewhart of Bell Telephone Laboratories developed a statistical chart of the control of product variables. This chart is considered to be the beginning of statistical quality control. Later in the same decade, H.F.Dodge and H.G.Romig, both of Bell Telephone Laboratories, developed the area of acceptance sampling as a substitute of 100% inspection.In 1946, the American society for Quality Control was formed. Recently the name was changed into Americn Society for Quality (ASQ).In 1950’s W.Edwards Deming emphasized about the management’s responsibility to achieve quality.In 1960’s the first quality control circles were formed for the purpose of quality improvement.In the late 1980’s the automotive industry began to emphasize statistical process control.After 1990’s the ISO became the model for a quality management system world wide.Quality Movement in India:Before Independence in India, quality has been a tradition but not in a consolidated form.Walter Shewhart, the father of Statistical Quality Control, visited India for a short period of three months during 1947-48 and initiated the SQC movements in Indian companies.The quality movement was consolidated in the 1980s in the Indian Industries to bring out synergy of resources by the pioneering efforts of Confederation of Indian Industries (CII)Dr.W.Edward Deming, the father of Quality Control , who taught Japanese about applying PDCA cycle (Deming Cycle) came to India in early 1950s.The TQM movement in USA in 1980s triggered quality movement in India in the year 1982 and Quality Circle was born.Prof. Ishikawa , the founder of quality movement in Japan was invited by CII to come to India to address Indian Industry in 1986.CII organized a first major seminar with Joseph Juran in 1987.CII provided a focus and an impetus to the quality movement by forming a TQM division in 1987. By then the focus was shifted from quality circles to quality management.CII set up the TQM division with the help of 21 companies who agreed to support the journey of TQM in India. The chief executives of these companies formed a National Committee on Quality.CII also launched the first news letter on Quality.The year 1987 brought the ISO 9000 standards into reality and visible strategies emerged.CII organized training programmes in ISO 9000 quality systems for international standards and certification in the year 1989.From the year 1991, Indian companies started to get the ISO 9000 certifications.The concept of TQM spread over the service sector and technology apart from engineering applications.CII organized and launch of National Quality Campaign in 1992, led by the Prime Minister of India and the “ Quality Summit ” organized by CII has now become an annual feature across the country.The future thrust on quality movement in India would be based on:Application Research ( Industry and Academics)Experience SharingISO certificationsEnvironmental protection, safety and consumer protection for quality enhancement.(In addition please refer the table given in class notes)Principles of TQM :Visionary leadershipCustomer-driven excellenceOrganizational and personal learningValuing employees and partnersAgilityFocus on the futureManaging for innovationManagement by factPublic responsibilityFocus of results and creating valuesSystems perspectiveLeadership :Leadership plays a central part in understanding group behavior, for it is the leader who usually provides the direction toward goal attainment. Therefore, a more accurate predictive capability should be valuable in improving group performance.We can define leadership as “the ability to influence a group toward the achievement ofgoals.”· The source of this influence may be formal. A person may assume a leadership role simply because of his/her position.· Not all leaders are managers, nor, for that matter, are all managers leaders.· Non-sanctioned leadership—the ability to influence that arises outside the formal structure of the organization—is often as important as or more important than formal influence.· Leaders can emerge from within a group as well as by formal appointment to lead a group.Organizations need strong leadership and strong management for optimum effectiveness.Leaders must challenge the status quo, create visions of the future, and inspireorganizational members.Six traits on which leaders tend to differ from non leaders are:a. Ambition and energyb. Desire to leadc. Honesty and integrityd. Self-confidencee. Intelligencef. Job-relevant knowledge.Characteristics of Quality Leaders:They continuously evaluate the changing customer needs.They empower, rather than control subordinates.They emphasize improvement rather than maintenanceThey emphasize prevention.They encourage collaboration rather than competition.They train and coach rather than direct and supervise.They learn from the problems.They continuously improve communication.They continuously committed to quality.They choose suppliers in the basis of quality not price.They establish organizational system to support quality effort.They encourage and recognize team effort.Quality Council :In order to build quality in the culture, a quality council is established to provide overall direction. It is the driver for the TQM engine.In a typical organization the quality council is composed of the chief executive officer (CEO); the senior managers of the functional areas, such as design, marketing, finance, production, and quality; and a Coordinator or consultant.Duties of the quality council:a) To develop the vision, mission and quality statement of the organization, with the input from all the personnel.b) To develop strategic long-term plan with goals and annual quality improvement program with objectives.c) Create a total education and training plan.d) Determine and continuously monitor the cost of poor quality.e) Determine the performance measures of the organization and monitor.f) Continuously determine those projects that improves and affect external and internal customer satisfaction.g) Establish multifunctional project and work group teams and monitor their progress.h) Establish and revise the recognition and reward system to account for the new way of doing business.The typical quality council meeting agenda of a well established TQM organization :a) Progress reports on teamsb) Customer satisfaction reportc) Progress on meeting goalsd) New project teamse) Recognition dinnerf) Benchmarking reportQuality Statements :Core values and concepts provide the unity of purpose. In addition to that, the quality statements include the vision statement, mission statement and quality policy statement. They are the part of the strategic planning process.Vision Statement:It is a short declaration of what an organization aspires to be tomorrow. It is the ideal state that might never reached but which you continuously strive to achieve.Example :We will be the preferred provider of safe, reliable, and cost-effective products and services that satisfy the electric-related needs of all customer segments.FLORIDA POWER & LIGHT COMPANYMission Statement :The mission statements answers the following questions :Who we are ? Who are the customers ? What we do ? and How we do it ?It is the usually a one paragraph statement which describes the function of the organization. It provides a clear statement of purpose for employees, customers and suppliers.Example :To meet customers’ transportation and distribution needs by being the best at moving their goods on time, safely and damage free.CANADIAN NATIONAL RAILWAYSStrategic Planning :There are seven basic steps to strategic quality planning.a) Customer needsb) Customer positioningc) Predict the futured) Gap analysise) Closing the gapf) Alignmentg) ImplementationStrategic planning can be performed by any organization . It can be highly effective, allowing organizations to do the right thing at the right time, every time.Deming Philosophy :W. Edwards Deming, an American quality expert, become a Parama-Guru in Japan because he preached the philosophical basis of quality and productivity, which were accepted, absorbed and implemented with sustained positive results by the Japanese.The Highest Award inn the Japanese Industrial Circles is the Deming prize for quality.Dr. Deming introduced the Plan –Do-Study-Act cycle to the Japanese decades ago.A Company plans a change, does it, checks the results and depending upon the results, acts either to standardize the change or to begin the cycle of improvement again with new information.Continuous or never ending improvement requires such a circular approach.Deming’s Philosophy is given in his 14 points of quality management. Most of these points were given in a seminar for 21 presidents of leading Japanese industry in 1950. The rest were developed and the original ones modified over a period of three decades. 1.Create and publish the aims and purposes of the organization. 2.Learn the new philosophy. 3.Understand the purpose of inspection. 4.Stop awarding business based on price alone. 5.Improve constantly and forever the system. 6.Institute training. 7.Teach and institute leadership. 8.Drive out fear, create trust and create a climate for innovation. 9.Optimize the efforts of teams, groups and staff areas. 10.Strive to eliminate intradepartmental conflicts11Eliminate exhortations for the work force. a) Eliminate numerical quotas for the work force.b) Eliminate Management by Objective.12.Remove barriers that rob people of pride of workmanship.13.Encourage education and self-improvement of everyone.14.Take action to accomplish the transformation. In addition he also pointed out the 7 deadly diseases that affecting the above transformationThe Seven Deadly Diseases1. Lack of constancy of purpose.2. Emphasis on short-term profits.3. Evaluation by performance, merit rating, or annual review of performance.4. Mobility of management.5. Running a company on visible figures alone.6. Excessive medical costs.7. Excessive costs of warranty, fueled by lawyers that work on contingency fee.A Lesser Category of Obstacles1. Neglect of long-range planning.2. Relying on technology to solve problems.3. Seeking examples to follow rather than developing solutions.4. Excuses such as "Our problems are different".5. Others.Barriers to TQM Implementation :Lack of management commitmentInability to change organizational cultureImproper planningLack of continuous training and educationIncompatible organizational structure and isolated individuals and departmentIneffective measurement techniques and lack of access to data and resultsPaying inadequate attention to internal and external customersInadequate use of empowerment and team workFailure to continually improve
UNIT – I INTRODUCTIONDefinition of Quality:The dictionary has many definitions of “quality”. A short definition that has achieved acceptance is : “ Quality is Customer Satisfaction”. “Fitness for use” is an alternative short definition. Here, customer means anyone who is impacted by the product or process.Quality is “ a predictable degree of uniformity and dependability, at low cost and suited to the market”.Quality is a relative term, generally used with reference to the end-use of a product. Quality should be aimed at the needs of the consumer, present and future.According to ISO 8402, quality is “ the totality of features and characteristics of a product or service that bear on its ability to satisfy stated or implied needs”.Broadly quality is:a) Fitness for useb) Gradec) Degree of preferenced) Degree of excellencee) Conformity to requirementsDimensions of Quality :The following are the components reveal the dimensions of quality.Manufacturing Industries Service IndustriesProduct Features AccuracyPerformance TimelinessReliability CompletenessDurability Friendliness and courtesyEase of use Anticipating customer needsServiceability Knowledge of serverEsthetics EstheticsAvailability ReputationReputationQuality Planning :Quality planning is the pre determined activities in order to achieve conformation to the requirements. Many organizations are finding that strategic quality plans and business plans are inseparable. The quality planning procedure given by Joseph.A.Juran has the following steps:· Identify the customers· Determine their needs· Translate those needs into our language.· Develop a product that can respond to those needs· Optimize the product features to meet our and customer needs
Questions and Answers-Unit-1-2006
Dear students given below is the typical questions and answers for Unit-1, here I've answered all the questions without considering it as a Part-A or Part-B following the text book(since the Anna University Evaluation key will be usually based on the prescribed text book).
However student can write a gist of answer for Part-A, and can elaboratre in the case of Part-B questions.
If you've any doubt, or any suggestions please commment this post.
Please do not write the comments of each answer.
G.Manikandan
1. Define Total Quality Management?TQM is an enhancement to the traditional way of doing business. It is the art of managing the whole to achieve excellence. It is defined both a philosophy and a set of guiding principles that represent the foundation of a continuously improving organization. It is the application of quantitative methods and human resources to improve all the processes within an organization and exceed customer needs now and in the future. It integrates fundamental management techniques, existing improvement efforts, and technical tools under a disciplined approach.you can also write Juran or Deming's definition given in the class lectures
2. Define Quality?
conformance to specifications
fitness for purpose
customer satisfaction
Quality = Performance x Expectations
Also you can write ISO definition quality.
(Oooh..., after all any definition to quality is only subjective...)
3. What are the Dimensions of Quality?
Performance
Features
Conformance
Reliability
Durability
Service
Response
Aesthetics
Reputation
4. Give the Basic Concepts of TQM?
§ A committed and involved management to provide long-term top-to-bottom organizational support.§ An unwavering focus on the customer, both internally and externally.§ Effective involvement and utilization of the entire work force.§ Continuous improvement of the business and production process.§ Treating suppliers as partners.§ Establish performance measures for the processes.5. State Deming Philosophy?
Create and publish the aims and purposes of the organization.
Learn the new philosophy.
Understand the purpose of inspection.
Stop awarding business based on price alone.
Improve constantly and forever the system.
Institute training.
Teach and institute leadership.
Drive out fear, Create trust and Create a climate for innovation.
Optimize the efforts of teams, groups and staff areas.
Eliminate exhortations for the work force.
Eliminate numerical quotes for the work force.
Eliminate management by objective.
Remove barriers that rob people of pride of workmanship.Encourage education and self-improvement for everyone.
Take action for accomplish the transformation.
(do expalin these points appropriately in the case of Part-B questions)
6. Give the Principles of TQM?1. Constancy of purpose: short range and long range objectives aligned2. Identify the customer(s); Customer orientation3. Identification of internal and external customers4. Continuous improvement5. Workflow as customer transactions6. Empower front-line worker as leader7. Quality is everybody’s business8. For a service industry, some elements of quality are:- empathy- trust; i.e. expertise, integrity, courtesy- responsiveness- tangible product attractiveness (curb appeal)- reliability, on time, no interruptions
Brief explanation required in the case of part-B answer.
7. Give the Obstacles associated with TQM Implementation?
Lack of management commitment
Inability to change organizational culture
Improper planning
Lack of continuous training and education
Incompatible organizational structure and isolated individuals and departments
Ineffective measurement techniques and lack of access to data and results.
Paying inadequate attention to internal and external customers.
Inadequate use of empowerment and teamwork.
8. Give the Analysis Techniques for Quality Costs?i. Trend Analysisii. Pareto Analysis9. Define Quality Costs?
Quality Costs are defined as those costs associated with the non-achievement of product or service quality as defined by the requirements established by the organization and its contracts with customers and society.or stated simply cost of poor quality products.
10. Give the primary categories of Quality cost?
PAF costs
i. Preventive cost categoryii. Appraisal cost categoryiii. Internal failure cost categoryiv. External failure cost category11. Give the sub-elements of Preventive cost category?
i. Marketing/Customer/Userii. Product/Service/Design developmentiii. Purchasingiv. Operations/v. Quality Administrationvi. Other Prevention Costs12. Give the sub-elements of Appraisal cost category?i. Purchasing appraisal costii. Operations appraisal costiii. External appraisal costiv. Review of test and application datav. Miscellaneous quality evaluations13. Give the sub-elements of Internal failure cost category?i. Product or Service Design costs (Internal)ii. Purchasing failure costsiii. Operations failure costs14. Give the sub-elements of External failure cost category?i. Complaint investigations of customer or user serviceii. Returned goodsiii. Retrofit and recall costsiv. Warranty claimsv. Liability costsvi. Penaltiesvii. Customer or user goodwillviii. Lost salesix. Other external failure costs15. Give the typical cost bases?i. Laborii. Productioniii. Unitiv. Sales16. How will you determine the optimum cost?a. Make comparison with other organizationsb. Optimize the individual categoriesc. Analyze the relationships among the cost categories17. State the Quality Improvement Strategy?
Ö Reduce failure costs by problem solving
Ö Invest in the “right” prevention activities
Ö Reduce appraisal costs where appropriate and in a statistically sound manner
Ö Continuously evaluate and redirect the prevention effort to gain further quality improvement.
18. Define Quality Planning?
A quality plan sets out the desired product qualities and how these are assessed and define the most significant quality attributes. It should define the quality assessment process. It should set out which organizational standards should be applied and, if necessary, define new standards.19. Give the Objectives of TQM?
a. To develop a conceptual understanding of the basic principles and methods associated with TQM;b. To develop an understanding of how these principles and methods have been put into effect in a variety of organizations;c. To develop an understanding of the relationship between TQM principles and the theories and models studied in traditional management;d. To do the right things, right the first time, every time.20. Give the Quality Hierarchy?1. Inspection (QI)2. Quality Control (QC)3. Quality Assurance (QA)4. Total Quality Management (TQM)Inspect products.DetectionFinding &Fixing Mistakes.21. What is needed for a leader to be effective?To be effective, a leader needs to know and understand the following:è People, paradoxically, need security and independence at the same time.è People are sensitive to external rewards and punishments and yet are also strongly self-motivated.è People like to hear a kind word of praise.è People can process only a few facts at a time; thus, a leader needs to keep things simple.è People trust their gut reaction more than statistical data.è People distrust a leader’s rhetoric if the words are inconsistent with the leader’s actions.22. What is the important role of senior management?§ Listening to internal and external customers and suppliers through visits, focus groups and surveys.§ Communication.§ To drive fear out of the organization, break down barriers, remove system roadblocks, anticipate and minimize resistance to change and in general, change the culture.23. What are the general duties of a quality council?i. Develop, with input from all personnel, the core values, vision statement, mission statement, and quality policy statement.ii. Develop the strategic long-term plan with goals and the annual quality improvement program with objectives.iii. Create the total education and training plan.iv. Determine and continually monitor the cost of poor quality.v. Determine the performance measures for the organization, approve those for the functional areas, and monitor them.vi. Continually, determine those projects that improve the processes, particularly those that affect external and internal customer satisfaction.vii. Establish multifunctional project and departmental or work group teams and monitor their progress.viii. Establish or revise the recognition and reward system to account for the new way of doing business.24. What does a typical meeting agenda contain after establishing the TQM?Progress report on teamsCustomer satisfaction reportProgress on meeting goalsNew project teamsRecognition dinnerBenchmarking report25. What are the various quality statements?Vision StatementMission StatementQuality Policy Statement26. Give the basic steps to strategic quality planning?i.Customer needsii. Customer positioningiii.Predict the futureiv.Gap analysisv.Closing the gapvi.Alignmentvii.Implementation27. What is a quality policy
The Quality Policy is a guide for everyone in the organization as to how they should provide products and service to the customers. The common characteristics areQuality is first among equals.Meet the needs of the internal and external customers.Equal or exceed the competition.Continually improve the quality.Include business and production practices.Utilize the entire work force.28. What is a mission statement?The mission statement answers the following questions: who we are, who are the customers, what we do, and how we do it.29. What is a vision statement?The vision statement is a declaration of what an organization should look like five to ten years in a future.
Lecture Notes for UNIT-II
TOTAL QUALITY MANAGEMENTTQMPRINCIPLES UNIT-IICUSTOMER SATISFACTIONCustomers are important asset to the organization, satisfied customers will buy more, and buy more frequently, and pay their bill promptly.In a manufacturing and service organization, customer satisfaction is considered as a measure of quality.TQM implies an organizational drive with meeting or exceeding customer needs.Understanding the customer's needs and expectations is essential to winning new business. To attain this level, the organization should examine their quality system to respond to their ever changing customer's needs.A simple definition of customer satisfaction is illustrated belowTeboul modelCharacteristics of customer satisfaction.1. it is far from simple.2. it is not an objective statistic, but more of feeling and attitude.3. therefore like people's opinion and feeling, it is subjective by nature.4. because of this subjective nature, it is difficult to measure.5. the measurement of customer satisfaction is not precise.6. the customer satisfaction should not be viewed in vacuum, i.e., it should be compared with the level of satisfaction they have with competitor's product are service.Types of customers.1. Internal customers - each of them receives a product or service and in exchange, providers a product or service.2. external customers - one who uses the product or service, the one who purchase the product, or the who influences the sale of theproduct.One basic concept of TQM is focus on customers, both internal and external.Customer perception of quality.In an orgabnization there is no acceptable quality level because the customer's needs, values and expectations are constantly changing and becoming more demanding.An American Society for Quality (ASQ) survey reveals the following end-user perception of quality1.Performance2.Features3.Service4. Warranty5. Price6. Reputation.Price.today customers are ready to pay a higher price to obtain value. Therefore it becomes increasingly important for an organization to identify, verify, and update each customer's perception of value against those of its com[petitors.( for other perceptions please refer unit - 1 notes)CUSTOMER COMPLAINTSUnlike the customer's feedback the customer complaints are reactive, and they are important in gaining data on customer perceptions.A disatisfied customer can easily become a lost customer because of their frustrations.This customer dissatisfaction become a measure for organizational process improvement measures.Every single complaint should be accepted, analyzed, and acted upon to again win over customer's confidence.Since more than 50% of the dissatisfied customers will buy again if they are complaint has been heard and resolved. By adopting a positive approach the complaints can be seen as an oppurtunity to obtain information and provide a positve service to the customer.Handling the customer complaints1. investigaste customer's experiences by actively receiving the customer feedback and then acting promptly.2. develop procedures for complaint resolution that include empowering front-line employee.3. analyze complaints, try to put them in a category for speedy response.4. Work to identify process and materuial variations and then eliminaste the root cause.'more inspection' is not a corrective action.5. Afetr receiving the response, a senior manager should contact the customer and strive top resolve the concern6. Establish customer satsfaction measures and constantly monitor them7. Communicate complaint information, as well as the results of all inquiries and solutions, to all people in the organization.8. provide a monthly complaint report to the quality council for their evalution and if needed, the assignment of process im[provement teams.9. identify customer's expectations in advance rather than afterward through complaint analysis.SERVICE QUALITYCustomer service is the set of activities an orgaqnization uses to win and retain customers' satisfaction. it can be provided before, during, and after the sale fo the product.Elements of customer service are:Organization1. identify each market segment2.write down the requirements3.communicate the requirements4.organise processes5.organize the physical spacesCustomer care6. meet the customer's expectations7. get the customer point of view8. deliver what is promised9. make the customer feel valued10.respond to all complaints11.over respond to the customer.12.provide a clean and comfortable customer reception environment.Communication13. optimize the trade fo between time and personal attention14. minimize the number of contact points.15 provide pleasant, knoweledgble, and enthusiastic employees.16. write documents in customer friendly language.front-line people17. hire people who like people18. challenge them to develop better methods.19. give them a authority to solve problems20. serve them as internal customers21. be sure they are adequetly trained.22. recognize and reward performance.Leadership23. lead by example24. listen to the front line employee25. strive for continuous process improvement.CUSTOMER RETENTIONCustomer retention represents the activities that produces the necessary customer satisfaction which in turn creates the customer loyalty.customer retention moves customer satisfaction to the next level by determining what is truly important to the customers and making sure that the customer satisfaction system focuses valuble resources on things that are important to the customer. Customer rettention is the connection between customer satisfaction and the bottom line.World-class companies knoe that continuous improvement and customer satisfaction should go hand-in-hand.Improved service to the customer is a costlier affair, so an organization must determine its return on the service invesment. For this the important service elements that significantly improve revenues and market share shuld be determined.One survey indicates, it requires five times of effort to win a new customer than retaining a present customer. In this context customer retention is important for organizational sucess.EMPLOYEE INVOLVEMENTJapanese management emphasizes the need to consider employee as a valuble resources rather than treating them as a mere tools for production.Employee involvement is one approach to improve quality and productivity. It is not an replacement for management nor is it the final word in quality improvement, it aims at better meeting of organizational goals at all levels.MotivationKnowledge fo motivation helps us to understand the utilization fo employee involvement to achieve process improvement.THEORIES OF MOTIVATIONHe explained the motivation interms of a heirarchy of needs and that there were five levels.These are survival, security, social, esteem, and self-actualization.( refer the above figure)It is important to note that as employees move up the heirarchy, they will immedietly revert back to the previous level if they feel threatned.HERZBERG'S TWO FACTOR THEORYHerzberg extends the Maslow's theory by using empirical research oin employee motivation.He found that people were motivated by the motivators ( intrinsic factors) like recognition, responsibility, achievement, advancement and the work itself.In addition he found that bad feelings were associated with preventable dissatisfiers or hygiene factors (extrinsic factors) like low salary, minimal fringe benefits, poor working conditions, ill-defined organizational policies and mediocre(ordinary) supervision.He also explained that the presence of extrinsic factors( for example good working condition) does not produce any motivation but their absence will create dissatifaction among employees.In a same manner the absence of intrinsic factors ( for example advancement) does not produce any dissatisfaction but their presence will provide strong level of motivation.Mcgregor's Theory X and Theory YHow to motivate work force1. Know thyself2. Know your employees3. Establish a positive attitude4. Share the goals5. Monitor progress6. Develop intersting work7. Communicate8. Celebrate sucessEMPOWERMENTThe dictionary meaning of the term empowerment is to invest people with authority.Its purpose is to tap the enourmous potential that lies within every worker.An operational definition is as follows:Empowerment is an environment in which people have the ability, the confidence, and the commitment to take the responsibility and ownership to improve the process and initiate the necessary steps to satisfy customer requirements within well defined boundaries in order to achieve organizational values and goals.Empowerment is nothing unusual, people generally want to be more in charge of their own jobs and carrers. afterall, they do that sucessfully in their personal lives every day. Most people appreciate and value the trust and respopnsibility.This empowerment helps greatly in eliminating resistence to changes.Empowerment is different from delegation or job enrichment, which means distributing or entrusting work to others.In empowerment employee is held responsible for accomplishing a whole task.i.e., employee becomes process owner, thus not only responsible but also accountable.Three conditions are necessary for empowering employees1. Everyone must understand the need for change2. The system needs to change to the new paradigm( model/standard)3. The organization must enable its employees.TEAMSTeams are very effective in solving all quality and productivity problems.Team is defined as a group of peopleworking together to achieve common objectives or goals.Teamwork is the cumulative actions of the team during which each member of the team subordinates his interests and opinions to fulfill the objectives or goals of the group.Many heads are better than one, especially in meeting ever-changing customer needs.Each member of the team have special ability that can be used for the problem.Many processes are so complex that one person cannot able solve completely.Based on the synergic effect, whole is greater than sum of its parts.Team work is better than sum of its member contribution.Team builds a rapport with each other that allows everyone to do a better job.Teams provide the vehicle for improved communication.Types of teams· Process improvement teams· cross-functional teams· natural work teams· self-directed/ self managed teamsCharacteristics of successful teamsSponsorTeam charterTeam competitiontraininggroud rulesclear objectivesaccountabilitywell-defined decision proceduresresourcestrusteffective problem solvingopen communicationappropriate leadershipbalanced participationcohesiveness.
Unit III TQM notes
There are lot of Web resources available with interesting examples for the III unit.http://www.isixsigma.com/offsite.asp?A=Fr&Url=http://www.skymark.com/resources/tools/control_charts.htmIn this link you will find information about all the statistical tools as well as management tools.Examples for different types of control charts are also available.
Unit-IV notes
This unit continues to discuss tools for TQM.BenchmarkingQuality Function deployment.TPM.An excellent introduction to TPM is available in this following link.http://www.plant-maintenance.com/articles/tpm_intro.shtmlTaguchi's loss function. (Quality Engineering.)FMEAI1. BENCHMARKING"Accept your limitations and then go beyond them"-AnonymousDefinitionBenchmarking is a systematic search for best practices,innovative ideas, and highly effective operating procedures.There are two key elements in this definition,for measuring performance, some units of measure.benchmarking requires that managersunderstand why their performance differs.It includes two components namely efficiency, (i.e., doing things better through best practices, innovative ideas) and effectiveness( i.e., doing better things through highly effective operating procedures).2.Reasons for benchmarking(a)Benchmarking as a tool for develop strengths and reduce weaknessesBenchmarking is tool to help organizations develop those strengths and reduce weaknesses. Once when you know where you are standing, it is obvious that you are made to know where you want to go.(b) Benchmarking provides an external orientation.While we discussing the different perceptions of quality in the first unit, we discussed that quality should not be viewed in vaccuum, i.e., it should be compared against your competitor's quality.In one sense we can quote benchmarking as a inspiration tool for managers.Through benchmarking, an organization can able to tap the oppurtunities available in the market because of competitor's weaknesses. And also it prepare itself for challenges posed by competitors because fo it's weaknesses.(c) Benchmarking is time and cost effective.Since benchmarking calls for creative adaptation and imitation and not pure invention.Just as the old saying goes why reinvent the wheel ? , you job is reduced to adapt the wheel and make sure that it rolls on smoothly.(d) Benchmarking chases the moving targetIn today's competitive environment, the customer satisfaction cannot be viewed as a static thing.Customers needs and expectations are growing, and meet this everchanging target benchmarking is useful.(e) Proper use of inforamtionThrough benchmarking the organization continuously scan the environment and enhances innovation. In a competitive scenario, the organization should continue to innovate as well as imitate.3. Benchmarking Process
Unit IV notes 2 -Web Links
For additional information on how this benchmarking is done in an organ9ization, follow this links.http://management.about.com/cs/benchmarking/a/Benchmarking.htmhttp://www.bambooweb.com/articles/b/e/Benchmarking.htmlBenchmarkingFrom Wikipedia, the free encyclopedia.Benchmarking (also "best practice benchmarking" or "process benchmarking") is a process used in management and particularly strategic management, in which companies evaluate various aspects of their business processes in relation to best practice, usually within their own industry. This then allows companies to develop plans on how to adopt such best practice. Benchmarking may be a one-off event, but is often treated as a continuous process in which companies continually seek to challenge their practices.A process similar to benchmarking is also used in technical product testing and in land surveying. See the article benchmark for these applications
Unit-V Notes
follwing material is Taken from the ISO websiteFrequently Asked Questions (FAQ's)In developing this list of Frequently Asked Questions (FAQ's), input has been obtained from experts and users of the ISO 9000 standards from around the world. The list will be reviewed and updated on a regular basis to maintain its accuracy, and to include new questions where appropriate. It is intended that this list will also provide a good source of information for new users of the standards.What is ISO?The International Organization for Standardization (ISO) was established in 1947 and is (currently) an association of approximately 149 National Standards Bodies, which each represent their own country. ISO employs a system of Technical Committees, Sub-committees and Working Groups to develop International Standards. Besides the National Standards Bodies, ISO permits other international organizations that develop standards to participate in its work, by accepting them as Liaison members. ISO works in accordance with an agreed set of rules of procedure, the ISO/IEC Directives, which also include requirements on the presentation of standards. For further details please refer to ISO's own web site at http://www.iso.org[FAQ 001, April 2004]Who are the National Standards Bodies, and who represents my country at ISO? Please use the link on ISO's web site that gives details, including contact information, of the National Standards Bodies: http://www.iso.org/iso/en/aboutiso/isomembers/index.html[FAQ 002, April 2004]What are the ISO 9000 standards ?The ISO 9000 standards are a collection of formal International Standards, Technical Specifications, Technical Reports, Handbooks and web based documents on Quality Management and Quality Assurance. There are approximately 25 documents in the collection altogether, with new or revised documents being developed on an ongoing basis.(It should be noted that many of the International Standards are numbered in the ISO 10000 range.)[FAQ 003, April 2004]Who is responsible for developing the ISO 9000 standards?ISO Technical Committee (TC) number 176 (ISO/TC 176), and its Sub-committees, are responsible for the development of the standards. The work is conducted on the basis of "consensus" among quality and industry experts nominated by the National Standards Bodies, representing a wide range of interested parties. [FAQ 004, April 2004]Where can copies of the standards be obtained?Copies of the standards may be purchased from your National Standards Body, or from ISO itself (sales@iso.org). Many National Standards Bodies have them available in local-language versions. [FAQ 005, April 2004]Where can information be obtained on the ISO 9000 standards?There are a number of sources of information on the ISO 9000 quality management system standards, including this web site and the ISO/TC 176 Web site, which carry information on the standards. Your National Standards Body should be able to provide copies of the standards, and registrars/certification bodies will be able to provide guidance on registration arrangements.[FAQ 006, April 2004]Where should an organization go if it needs clarification or interpretation of the standards?The starting point for an interpretation should be with your National Standards Body. ISO Central Secretariat and ISO/TC 176 cannot accept direct requests from individuals for interpretations of the ISO 9000 standards. Instead, ISO/TC 176 has established a Working Group for interpretation, with a formal procedure to provide answers to the questions that are forwarded by the National Standards Bodies. Details of agreed interpretations are now being published on the ISO/TC 176 web site at http://www.tc176.org. [FAQ 007, April 2004]What happened to the 1994 editions of ISO 9001, ISO 9002 and ISO 9003?Following extensive consultation with users and National Standards Bodies, it was agreed that the 1994 editions of ISO 9001, ISO 9002 and ISO 9003 should be consolidated into a single revised document, which is now represented by ISO 9001:2000.[FAQ 008, April 2004]What are the main benefits to be derived from implementing an ISO 9000 quality management system?The ISO 9000 standards give organizations an opportunity to increase value to their activities and to improve their performance continually, by focusing on their major processes. The standards place great emphasis on making quality management systems closer to the processes of organizations and on continual improvement. As a result, they direct users to the achievement of business results, including the satisfaction of customers and other interested parties.The management of an organization should be able to view the adoption of the quality management system standards as a profitable business investment, not just as a required certification issue.Among the perceived benefits of using the standards are:The connection of quality management systems to organizational processesThe encouragement of a natural progression towards improved organizational performance, via:the use of the Quality Management Principlesthe adoption of a "process approach"emphasis of the role of top managementrequirements for the establishment of measurable objectives at relevant functions and levelsbeing orientated toward "continual improvement" and "customer satisfaction", including the monitoring of information on "customer satisfaction" as a measure of system performancemeasurement of the quality management system, processes, and productconsideration of statutory and regulatory requirementsattention to resource availabilityThe concept of a "consistent pair" of standards; with ISO 9001 establishing initial requirements and ISO 9004 for going beyond the requirements to further improve the performance of the organizationConsideration of the needs of all interested parties.The concept of organizational self-assessment as a driver for improvement (see ISO 9004:2000)[FAQ 009, April 2004]What benefits are there to an organization implementing ISO 9004?If a quality management system is appropriately implemented, utilizing the eight Quality Management Principles, and in accordance with ISO 9004, all of an organization's interested parties should benefit. For example:Customers and users will benefit by receiving the products (see ISO 9000:2000) that are:Conforming to the requirementsDependable and reliableAvailable when neededMaintainablePeople in the organization will benefit by:Better working conditionsIncreased job satisfactionImproved health and safetyImproved moraleImproved stability of employmentOwners and investors will benefit by:Increased return on investmentImproved operational resultsIncreased market shareIncreased profitsSuppliers and partners will benefit by:StabilityGrowthPartnership and mutual understandingSociety will benefit by:Fulfilment of legal and regulatory requirementsImproved health and safetyReduced environmental impactIncreased security[FAQ 010, April 2004]Are the standards compatible with national quality award criteria?The standards are based on 8 Quality Management Principles, which are aligned with the philosophy and objectives of most quality award programs. These principles are:Customer focusLeadershipInvolvement of peopleProcess approachSystem approach to managementContinual improvementFactual approach to decision makingMutually beneficial supplier relationships.ISO 9004:2000 recommends that organizations perform self-assessments as part of their management of systems and processes, and includes an annex giving guidance on this approach. This is similar to many quality awards programmes. [FAQ 011, April 2004]Do the standards address financial issues?Financial issues are not directly addressed in ISO 9001:2000, but may be inferred though the requirements for the provision of resources. ISO 9004:2000 gives guidance that emphasizes the financial resources needed for the implementation and improvement of a quality management system. ISO/TR 10014:1998 "Guidelines for managing the economics of quality" also gives further guidance.[FAQ 012, April 2004]How will implementation of the standards help an organization to improve its efficiency?ISO 9001:2000 aims at guaranteeing the effectiveness (but not necessary the efficiency) of an organization. For improved organizational efficiency, however, the best results can be obtained by using the guidance given in ISO 9004:2000 in addition to ISO 9001:2000. Additionally, the guiding Quality Management Principles are intended to assist an organization in continual improvement, which should lead to efficiency throughout the organization. [FAQ 013, April 2004]Why is the requirement for monitoring "customer satisfaction" included in ISO 9001?"Customer satisfaction" is recognized as one of the driving criteria for any organization. In order to evaluate if a product meets customer needs and expectations, it is necessary to monitor the extent of customer satisfaction. Improvements can be made by taking action to address any identified issues and concerns. [FAQ 014, April 2004]Can the standards improve "customer satisfaction"? The quality management system details that are described in the standards are based on Quality Management Principles that include the "process approach" and "customer focus". The adoption of these principles should provide customers with a higher level of confidence that products will meet their needs and increase their satisfaction. [FAQ 015, April 2004]What is the "process approach"?The "process approach" is a way of obtaining a desired result, by managing activities and related resources as a process. The "process approach" is a key element of the ISO 9000 standards. For further guidance, please refer to the ISO 9000 Introduction and Support Package module: Guidance on the Concept and Use of the Process Approach for management systems.[FAQ 016, April 2004]Can the "process approach" be applied to other management systems?Yes. The "process approach" is a generic management principle, which can enhance an organization’s effectiveness and efficiency in achieving defined objectives.[FAQ 017, April 2004]How can the PDCA cycle be used in the "process approach"?The PDCA cycle is an established, logical, method that can be used to improve a process.This requires:(P) planning (what to do and how to do it),(D) executing the plan (do what was planned),(C) checking the results (did things happened according to plan) and(A) act to improve the process (how to improve next time).The PDCA cycle can be applied within an individual process, or across a group of processes.[FAQ 018, April 2004]Can any organization apply the "process approach"?Yes. Many organizations already apply a "process approach" without recognizing it. They could achieve additional benefits by understanding and controlling it.[FAQ 019, April 2004]Why should an organization apply the "process approach"?By applying the "process approach" an organization should be able to obtain the following types of benefits:The integration and alignment of its processes to enable the achievement of its planned results.An ability to focus effort on process effectiveness and efficiency.An increase in the confidence of customers and other interested parties as to the consistent performance of the organization.Transparency of operations within the organization.Lower costs and shorter cycle times through effective and efficient use of resources.Improved, consistent and predictable results.The identification of opportunities for focused and prioritized improvement initiatives.The encouragement and involvement of people, and the clarification of their responsibilities.The elimination of barriers between different functional units and the unification of their focus to the objectives of the organization.Improved management of process interfaces.[FAQ 020, April 2004]What is meant by the "sequence" of processes and their "interactions"?The "sequence" of processes shows how the processes follow, or link, to each other to result in a final output.For example, one process may become the output of the next process or processes.The "interactions" show how each process affects or influences one or more of the other processes. For example, the monitoring or controlling of a process may be established in a separate process.[FAQ 021, April 2004]How can the processes in an organization be determined?Identify the organization's intended outputs, and the processes needed for achieving them. These will need to include processes for Management, Resources, Realization and Measurement and Improvement.Identify all process inputs and outputs, along with the suppliers and customers, who may be internal or external.Identify the sequence and interactions of the processes.[FAQ 022, April 2004]Should an organization define and document all its processes?The main purpose of documentation is to enable the consistent and stable operation of an organization's processes.Although statutory, standards' or customer requirements may require certain documentation, there is no defined “catalogue”, or list of processes that has to be documented in ISO 9001, apart from the 6 indicated ones.The organization should determine which processes are to be documented on the basis of: The size of the organization and type of its activities,The complexity of its processes and their interactions,The criticality of the processes andAvailability of competent personnel.A number of different methods can be used to document processes, such as graphical representations, written instructions, checklists, flow charts, visual media, or electronic methods.[FAQ 023, April 2004]How much detail is required in process documentation?The extent of detail is likely to depend upon factors such as:he size of an organisation and its types of activities,the complexity of its processes and their interactions, andthe competence (level of education, training, skills and experience) of its personnel.[FAQ 024, April 2004]Is there a standard way of describing a process?No, there is no standard way to describe a process. It depends on the culture, management style, staff literacy, personal attributes and their interactions.A process may be described using a flow chart, block diagram, responsibility matrix, written procedures or pictures.Process flowcharts or block diagrams can show how policies, objectives, influential factors, job functions, activities, material, equipment, resources, information, people and decision making interact and/or interrelate in a logical order.[FAQ 025, April 2004]What should an organization do to adopt the "process approach"?To adopt the "process approach" an organization should apply the following steps:Identify the processes of the organization,Plan the processes,Implement and measure the processes,Analyse the processes,Improve the processes.[FAQ 026, April 2004]What is a "process owner"?A person who is given the responsibility and authority for managing a particular process is sometimes referred to as the "process owner".It may be useful for an organization's Management to appoint individual "process owners" and to define their roles and responsibilities; these should include the responsibility for ensuring the implementation, maintenance and improvement of their specific process and its interactions.It should be noted, however, that ISO 9001:2000 does not specifically require the appointment of "process owners".[FAQ 027, April 2004]How can a process be measured?There are various methods of measuring process controls and process performance, ranging from simple monitoring systems up to sophisticated statistically based systems (e.g. Statistical process control, or SPC, systems). The selection and use of any particular method will be dependent on the nature and complexity of an organization's processes and products. The effectiveness of an individual process may be measured by the conformity of its output or product to customer requirements. Its efficiency may be measured from its use of resources. In all cases the measurement of the process determines if its (measurable) objectives have been achieved. Sometimes it only requires monitoring to confirm process operations.Typical factors that are useful to consider when identifying measures of process control and process performance include: Conformity with requirements,Customer satisfaction,Supplier performance,On time delivery,Lead times,Failure rates,Waste,Process costs.Incident frequency[FAQ 028, April 2004]What is the difference between a "process" and a "procedure"?A "process" may be explained as a set of interacting or interrelated activities, which are employed to add value. A "procedure" is a method of describing the way in which all or part of that process is to be performed.ISO 9000:2000 defines a procedure as a "specified way to carry out an activity or a process", which does not necessarily have to be documented.[FAQ 029, April 2004]An organization has a well-established set of procedures. Can these procedures be used to help describe its processes?Yes, if the procedures describe inputs and outputs, appropriate responsibilities, controls and resources needed to satisfy customer requirements.[FAQ 030, April 2004]What is meant by "continual improvement"?ISO 9001 requires an organization to focus on continually increasing the effectiveness of its quality management system, to fulfil its policies and objectives. One way of doing this is for the organization to improve its processes. The organization may also wish to consider improving the efficiency of its processes, for which ISO 9004:2000 provides guidance. Continual improvement (where "continual" highlights that an improvement process requires progressive consolidation steps) responds to the growing needs and expectations of customers and ensures a dynamic evolution of the quality management system.[FAQ 031, April 2004]What documentation is required by ISO 9001?ISO 9001:2000 refers specifically to only 6 documented procedures; however, other documentation (including more documented procedures not specifically mentioned in ISO 9001:2000) may be required by an organization, in order to manage the processes that are necessary for the effective operation of the quality management system. This will vary depending on the size of the organization, the kind of activities in which it is involved and their complexity. For further guidance, please also refer to the ISO 9000 Introduction and Support Package module Guidance on the Documentation Requirements of ISO 9001:2000[FAQ 032, April 2004]Which standard are organizations registered/certified to? Organizations have their quality management system registered/certified to ISO 9001:2000. The scope of registration/ certification will need to reflect precisely and clearly the activities covered by the organization's quality management system; any exclusion to non-applicable requirements of the standard (permitted through ISO 9001 clause 1.2 "Application") will need to be documented and justified in the quality manual (see also the ISO/TC 176/SC2 ISO 9000 Introduction and Support Package module Guidance on ISO 9001:2000 clause 1.2 'Application). [FAQ 033, April 2004]What does an organization need to do to comply with ISO 9001?When initially starting to use ISO 9001, an organization should familiarize its personnel with the Quality Management Principles, analyze the standards (especially ISO 9004), and consider how their guidance and requirements may affect your activities and related processes. If it then wishes to proceed to registration/certification, it should perform a gap analysis against the requirements of ISO 9001 to determine where its current quality management system does not address the applicable ISO 9001:2000 requirements, before developing and implementing additional processes to ensure that compliance will be achieved.[FAQ 034, April 2004]Can an organization be certified/registered to ISO 9004:2000? ISO 9004:2000 is a guidance standard, which is not intended to be used for third party registration/certification purposes. A key element of ISO 9004 is the ability to perform self-assessments. Third party quality management system certifications/ registrations are performed to ISO 9001:2000. [FAQ 035, April 2004]What is the purpose of having ISO 9001 and ISO 9004 as a "consistent pair" of standards?The idea of a "consistent pair" of standards is central to ISO 9001:2000 and ISO 9004:2000. The aligned structures of ISO 9001 and ISO 9004 have been designed to encourage organizations to look at their activities from a process standpoint, and also to look beyond the achievement of registration/certification to ISO 9001, to the implementation of a quality management system that will be truly beneficial in improving operational performance. [FAQ 036, April 2004]How does ISO 9001:2000 relate to the needs of specific business sectors?The text of ISO 9001:2000 is applicable to organizations that provide different types of product and to organizations of different sizes. Due to this generic nature, some industrial or commercial sectors find that they need to identify additional requirements to attend to their specific requirements, so develop their own standards or related documents.To assure consistency between the ISO 9001 requirements and sector requirements, ISO's rules of procedure require that ISO/TC 176 be invited to review sectoral documents while they are being developed by ISO. A successful example of such a document is ISO Technical Specification ISO/TS 16949, which was developed in conjunction with representatives from the automotive industries. [FAQ 037, April 2004]Is an organization's ISO 9001 certificate applicable to all of its products ?When an organization seeks to have its quality management system registered/certified to ISO 9001:2000, it is required to agree a "scope of certification" with its registrar/certification body. This will define the products to which the organization's quality management system is applicable, and against which it will be assessed. An organization is not obliged to include within its "scope of certification" all the products that it provides (note that the ISO 9000:2000 definition of "Product" includes "services"), but may be selective about those that are included. All applicable requirements of ISO 9001:2000 will need to be addressed by the organization's quality management system that covers those products that are included in the "scope of certification".Customers should ensure that a potential supplier's "scope of certification" covers the products that they wish to order. Caveat Emptor![FAQ 038, April 2004]What can an organization do if it is not able to comply with all of the requirements of ISO 9001?ISO 9001 allows for the exclusion of some of its requirements (via clause 1.2 'Application'), but only if it can be shown that these requirements are not applicable to the organization.Exclusions are limited to the requirements given in Section 7 ("Product Realization"), where individual requirements may only be excluded if it can be shown that they do not affect the organization's ability to provide product that meets customer and applicable statutory or regulatory requirements. Justification for such exclusions is also required to be detailed within the organization's quality manual.For example, if design activities are not required by an organization to demonstrate its capability to meet customer and applicable statutory /regulatory requirements, or if its product is provided on the basis of established design, then it may be able to exclude some of the "design" requirements but still be able to be registered/certified to ISO 9001:2000.For further guidance, see the ISO 9000 Introduction and Support Package module: Guidance on ISO 9001:2000 clause 1.2 'Application'.[FAQ 39, April 2004]How will a small organization be able to adapt the requirements of ISO 9001? What flexibility will be allowed?The requirements of ISO 9001 are applicable to small, medium, and large organizations alike. ISO 9001:2000 provides some flexibility, through clause 1.2 “Application”, on the exclusion of certain requirements for specific processes that may not be performed by the organization.If, for example, the nature of your products does not require you to perform design activities, or if your product is provided on the basis of established design, you could discuss and justify the exclusion of these requirements with your certification/registration body (see also the ISO 9000 Introduction and Support Package module Guidance on ISO 9001:2000 clause 1.2 'Application'). However, individual organizations will still need to be able demonstrate their capability to meet customer and applicable statutory or regulatory requirements for their products, and will need to consider this when determining the complexity of their quality management systems.Further guidance for small businesses may be found in ISO Handbook: ISO 9001:2000 for Small Businesses - What to do, Advice from ISO/TC 176[FAQ 040, April 2004]What is the relationship between ISO 9001 and ISO 14001?ISO 9001 has been developed to be "compatible" with ISO 14001 Environmental management systems – Requirements with guidance for use, particularly with regard to terminology and content. There is close collaboration between the technical experts of ISO/TC 176 and ISO/TC 207 (the Technical Committee responsible for the ISO 14000 series of standards) during the development of their respective standards, to ensure that the level of compatibility is maintained or enhanced.A recent review of ISO 14001 and ISO 14004 by ISO/TC 207/SC 1 has led to the initiation of a revision of these standards, which is targeted for completion by the end of 2004. This has provided an opportunity for further enhancement of the "compatibility" between the ISO 9000 and ISO 14000 standards.[FAQ 041, April 2004]Are there any guidelines covering joint implementation of ISO 9001 and ISO 14001?ISO has just initiated a project to prepare a guideline on this subject at this present time (January 2004). This will take account of the revision to ISO 14001, due towards the end of 2004. For guidance on the auditing of both quality and environmental guidance management systems, the two responsible ISO technical committees (ISO/TC 176 and ISO/TC 207) jointly developed a single common auditing standard (ISO 19011) that replaced their own unique sets of auditing standards.[FAQ 042, April 2004]Is there a common guideline standard for auditing QMS and EMS according to ISO 9001 and 14001?ISO 19011:2002 Guidelines for quality and/or environmental management systems auditing gives guidance on auditing that is applicable to both quality management systems and environmental management systems. [FAQ 043, April 2004]How are the standards applicable to organizations that provide services?The standards are applicable to all types of organizations, operating in all types of sectors, including service providers. (Note: the definition of the term 'product' in ISO 9000:2000 also includes 'services'. ISO 9001:2000 and ISO 9004:2000 have been written to reflect this definition.) [FAQ 044, April 2004]What do quality management practitioners (consultant, auditor, or trainer) need to know about the standards?As a minimum, quality management practitioners should familiarize themselves with the requirements of ISO 9001:2000, and also with the content and philosophies of ISO 9000:2000, ISO 9004:2000 and the Quality Management Principles. They should understand their client’s activities and processes, before providing appropriate interpretations of the requirements of the standards, to add value to the client's operations. ISO/TC 176 is currently developing ISO 10019, Guidelines for the selection of quality management system consultants and use of their services, which may be useful to refer to for further guidance.[FAQ 045, April 2004]How should regulatory bodies use the standards?Regulatory bodies should review their regulations currently in effect (or under development) and identify points where reference to the quality management system standards would be appropriate, before making recommendations to the legislative body. [FAQ 046, April 2004]What do auditors need to know about the standards?Auditors, whether external or internal, should be able to demonstrate their competence on the structure, content and terminology of the standards, and also on the underlying Quality Management Principles.The standards require that auditors are able to understand the organization's activities and processes and appropriately audit against the requirements of the ISO 9001 in relation to the organization's objectives. According to joint advice from the International Accreditation Forum (IAF), ISO's Policy Committee for Conformity Assessment (ISO-CASCO) and ISO TC 176, auditors should be able to demonstrate competency in:The requirements of the ISO 9001:2000.The concepts and terminology of the ISO 9000:2000.The eight Quality Management PrinciplesA general understanding of the performance improvement guidelines of ISO 9004:2000Familiarity with the auditing guidance standard ISO 19011.A recent initiative between ISO/TC 176, ISO/CASCO and the IAF has been the establishment of an ISO 9001 Auditing Practices Group, which has issued a number of web based guidance notes to assist auditors.[FAQ 047, April 2004]follow this link to know about ISO 14000http://www.tc207.org/faq.asp?Question=9999
UNIT – I INTRODUCTIONDefinition of Quality:The dictionary has many definitions of “quality”. A short definition that has achieved acceptance is : “ Quality is Customer Satisfaction”. “Fitness for use” is an alternative short definition. Here, customer means anyone who is impacted by the product or process.Quality is “ a predictable degree of uniformity and dependability, at low cost and suited to the market”.Quality is a relative term, generally used with reference to the end-use of a product. Quality should be aimed at the needs of the consumer, present and future.According to ISO 8402, quality is “ the totality of features and characteristics of a product or service that bear on its ability to satisfy stated or implied needs”.Broadly quality is:a) Fitness for useb) Gradec) Degree of preferenced) Degree of excellencee) Conformity to requirementsDimensions of Quality :The following are the components reveal the dimensions of quality.Manufacturing Industries Service IndustriesProduct Features AccuracyPerformance TimelinessReliability CompletenessDurability Friendliness and courtesyEase of use Anticipating customer needsServiceability Knowledge of serverEsthetics EstheticsAvailability ReputationReputationQuality Planning :Quality planning is the pre determined activities in order to achieve conformation to the requirements. Many organizations are finding that strategic quality plans and business plans are inseparable. The quality planning procedure given by Joseph.A.Juran has the following steps:· Identify the customers· Determine their needs· Translate those needs into our language.· Develop a product that can respond to those needs· Optimize the product features to meet our and customer needs
Questions and Answers-Unit-1-2006
Dear students given below is the typical questions and answers for Unit-1, here I've answered all the questions without considering it as a Part-A or Part-B following the text book(since the Anna University Evaluation key will be usually based on the prescribed text book).
However student can write a gist of answer for Part-A, and can elaboratre in the case of Part-B questions.
If you've any doubt, or any suggestions please commment this post.
Please do not write the comments of each answer.
G.Manikandan
1. Define Total Quality Management?TQM is an enhancement to the traditional way of doing business. It is the art of managing the whole to achieve excellence. It is defined both a philosophy and a set of guiding principles that represent the foundation of a continuously improving organization. It is the application of quantitative methods and human resources to improve all the processes within an organization and exceed customer needs now and in the future. It integrates fundamental management techniques, existing improvement efforts, and technical tools under a disciplined approach.you can also write Juran or Deming's definition given in the class lectures
2. Define Quality?
conformance to specifications
fitness for purpose
customer satisfaction
Quality = Performance x Expectations
Also you can write ISO definition quality.
(Oooh..., after all any definition to quality is only subjective...)
3. What are the Dimensions of Quality?
Performance
Features
Conformance
Reliability
Durability
Service
Response
Aesthetics
Reputation
4. Give the Basic Concepts of TQM?
§ A committed and involved management to provide long-term top-to-bottom organizational support.§ An unwavering focus on the customer, both internally and externally.§ Effective involvement and utilization of the entire work force.§ Continuous improvement of the business and production process.§ Treating suppliers as partners.§ Establish performance measures for the processes.5. State Deming Philosophy?
Create and publish the aims and purposes of the organization.
Learn the new philosophy.
Understand the purpose of inspection.
Stop awarding business based on price alone.
Improve constantly and forever the system.
Institute training.
Teach and institute leadership.
Drive out fear, Create trust and Create a climate for innovation.
Optimize the efforts of teams, groups and staff areas.
Eliminate exhortations for the work force.
Eliminate numerical quotes for the work force.
Eliminate management by objective.
Remove barriers that rob people of pride of workmanship.Encourage education and self-improvement for everyone.
Take action for accomplish the transformation.
(do expalin these points appropriately in the case of Part-B questions)
6. Give the Principles of TQM?1. Constancy of purpose: short range and long range objectives aligned2. Identify the customer(s); Customer orientation3. Identification of internal and external customers4. Continuous improvement5. Workflow as customer transactions6. Empower front-line worker as leader7. Quality is everybody’s business8. For a service industry, some elements of quality are:- empathy- trust; i.e. expertise, integrity, courtesy- responsiveness- tangible product attractiveness (curb appeal)- reliability, on time, no interruptions
Brief explanation required in the case of part-B answer.
7. Give the Obstacles associated with TQM Implementation?
Lack of management commitment
Inability to change organizational culture
Improper planning
Lack of continuous training and education
Incompatible organizational structure and isolated individuals and departments
Ineffective measurement techniques and lack of access to data and results.
Paying inadequate attention to internal and external customers.
Inadequate use of empowerment and teamwork.
8. Give the Analysis Techniques for Quality Costs?i. Trend Analysisii. Pareto Analysis9. Define Quality Costs?
Quality Costs are defined as those costs associated with the non-achievement of product or service quality as defined by the requirements established by the organization and its contracts with customers and society.or stated simply cost of poor quality products.
10. Give the primary categories of Quality cost?
PAF costs
i. Preventive cost categoryii. Appraisal cost categoryiii. Internal failure cost categoryiv. External failure cost category11. Give the sub-elements of Preventive cost category?
i. Marketing/Customer/Userii. Product/Service/Design developmentiii. Purchasingiv. Operations/v. Quality Administrationvi. Other Prevention Costs12. Give the sub-elements of Appraisal cost category?i. Purchasing appraisal costii. Operations appraisal costiii. External appraisal costiv. Review of test and application datav. Miscellaneous quality evaluations13. Give the sub-elements of Internal failure cost category?i. Product or Service Design costs (Internal)ii. Purchasing failure costsiii. Operations failure costs14. Give the sub-elements of External failure cost category?i. Complaint investigations of customer or user serviceii. Returned goodsiii. Retrofit and recall costsiv. Warranty claimsv. Liability costsvi. Penaltiesvii. Customer or user goodwillviii. Lost salesix. Other external failure costs15. Give the typical cost bases?i. Laborii. Productioniii. Unitiv. Sales16. How will you determine the optimum cost?a. Make comparison with other organizationsb. Optimize the individual categoriesc. Analyze the relationships among the cost categories17. State the Quality Improvement Strategy?
Ö Reduce failure costs by problem solving
Ö Invest in the “right” prevention activities
Ö Reduce appraisal costs where appropriate and in a statistically sound manner
Ö Continuously evaluate and redirect the prevention effort to gain further quality improvement.
18. Define Quality Planning?
A quality plan sets out the desired product qualities and how these are assessed and define the most significant quality attributes. It should define the quality assessment process. It should set out which organizational standards should be applied and, if necessary, define new standards.19. Give the Objectives of TQM?
a. To develop a conceptual understanding of the basic principles and methods associated with TQM;b. To develop an understanding of how these principles and methods have been put into effect in a variety of organizations;c. To develop an understanding of the relationship between TQM principles and the theories and models studied in traditional management;d. To do the right things, right the first time, every time.20. Give the Quality Hierarchy?1. Inspection (QI)2. Quality Control (QC)3. Quality Assurance (QA)4. Total Quality Management (TQM)Inspect products.DetectionFinding &Fixing Mistakes.21. What is needed for a leader to be effective?To be effective, a leader needs to know and understand the following:è People, paradoxically, need security and independence at the same time.è People are sensitive to external rewards and punishments and yet are also strongly self-motivated.è People like to hear a kind word of praise.è People can process only a few facts at a time; thus, a leader needs to keep things simple.è People trust their gut reaction more than statistical data.è People distrust a leader’s rhetoric if the words are inconsistent with the leader’s actions.22. What is the important role of senior management?§ Listening to internal and external customers and suppliers through visits, focus groups and surveys.§ Communication.§ To drive fear out of the organization, break down barriers, remove system roadblocks, anticipate and minimize resistance to change and in general, change the culture.23. What are the general duties of a quality council?i. Develop, with input from all personnel, the core values, vision statement, mission statement, and quality policy statement.ii. Develop the strategic long-term plan with goals and the annual quality improvement program with objectives.iii. Create the total education and training plan.iv. Determine and continually monitor the cost of poor quality.v. Determine the performance measures for the organization, approve those for the functional areas, and monitor them.vi. Continually, determine those projects that improve the processes, particularly those that affect external and internal customer satisfaction.vii. Establish multifunctional project and departmental or work group teams and monitor their progress.viii. Establish or revise the recognition and reward system to account for the new way of doing business.24. What does a typical meeting agenda contain after establishing the TQM?Progress report on teamsCustomer satisfaction reportProgress on meeting goalsNew project teamsRecognition dinnerBenchmarking report25. What are the various quality statements?Vision StatementMission StatementQuality Policy Statement26. Give the basic steps to strategic quality planning?i.Customer needsii. Customer positioningiii.Predict the futureiv.Gap analysisv.Closing the gapvi.Alignmentvii.Implementation27. What is a quality policy
The Quality Policy is a guide for everyone in the organization as to how they should provide products and service to the customers. The common characteristics areQuality is first among equals.Meet the needs of the internal and external customers.Equal or exceed the competition.Continually improve the quality.Include business and production practices.Utilize the entire work force.28. What is a mission statement?The mission statement answers the following questions: who we are, who are the customers, what we do, and how we do it.29. What is a vision statement?The vision statement is a declaration of what an organization should look like five to ten years in a future.
Lecture Notes for UNIT-II
TOTAL QUALITY MANAGEMENTTQMPRINCIPLES UNIT-IICUSTOMER SATISFACTIONCustomers are important asset to the organization, satisfied customers will buy more, and buy more frequently, and pay their bill promptly.In a manufacturing and service organization, customer satisfaction is considered as a measure of quality.TQM implies an organizational drive with meeting or exceeding customer needs.Understanding the customer's needs and expectations is essential to winning new business. To attain this level, the organization should examine their quality system to respond to their ever changing customer's needs.A simple definition of customer satisfaction is illustrated belowTeboul modelCharacteristics of customer satisfaction.1. it is far from simple.2. it is not an objective statistic, but more of feeling and attitude.3. therefore like people's opinion and feeling, it is subjective by nature.4. because of this subjective nature, it is difficult to measure.5. the measurement of customer satisfaction is not precise.6. the customer satisfaction should not be viewed in vacuum, i.e., it should be compared with the level of satisfaction they have with competitor's product are service.Types of customers.1. Internal customers - each of them receives a product or service and in exchange, providers a product or service.2. external customers - one who uses the product or service, the one who purchase the product, or the who influences the sale of theproduct.One basic concept of TQM is focus on customers, both internal and external.Customer perception of quality.In an orgabnization there is no acceptable quality level because the customer's needs, values and expectations are constantly changing and becoming more demanding.An American Society for Quality (ASQ) survey reveals the following end-user perception of quality1.Performance2.Features3.Service4. Warranty5. Price6. Reputation.Price.today customers are ready to pay a higher price to obtain value. Therefore it becomes increasingly important for an organization to identify, verify, and update each customer's perception of value against those of its com[petitors.( for other perceptions please refer unit - 1 notes)CUSTOMER COMPLAINTSUnlike the customer's feedback the customer complaints are reactive, and they are important in gaining data on customer perceptions.A disatisfied customer can easily become a lost customer because of their frustrations.This customer dissatisfaction become a measure for organizational process improvement measures.Every single complaint should be accepted, analyzed, and acted upon to again win over customer's confidence.Since more than 50% of the dissatisfied customers will buy again if they are complaint has been heard and resolved. By adopting a positive approach the complaints can be seen as an oppurtunity to obtain information and provide a positve service to the customer.Handling the customer complaints1. investigaste customer's experiences by actively receiving the customer feedback and then acting promptly.2. develop procedures for complaint resolution that include empowering front-line employee.3. analyze complaints, try to put them in a category for speedy response.4. Work to identify process and materuial variations and then eliminaste the root cause.'more inspection' is not a corrective action.5. Afetr receiving the response, a senior manager should contact the customer and strive top resolve the concern6. Establish customer satsfaction measures and constantly monitor them7. Communicate complaint information, as well as the results of all inquiries and solutions, to all people in the organization.8. provide a monthly complaint report to the quality council for their evalution and if needed, the assignment of process im[provement teams.9. identify customer's expectations in advance rather than afterward through complaint analysis.SERVICE QUALITYCustomer service is the set of activities an orgaqnization uses to win and retain customers' satisfaction. it can be provided before, during, and after the sale fo the product.Elements of customer service are:Organization1. identify each market segment2.write down the requirements3.communicate the requirements4.organise processes5.organize the physical spacesCustomer care6. meet the customer's expectations7. get the customer point of view8. deliver what is promised9. make the customer feel valued10.respond to all complaints11.over respond to the customer.12.provide a clean and comfortable customer reception environment.Communication13. optimize the trade fo between time and personal attention14. minimize the number of contact points.15 provide pleasant, knoweledgble, and enthusiastic employees.16. write documents in customer friendly language.front-line people17. hire people who like people18. challenge them to develop better methods.19. give them a authority to solve problems20. serve them as internal customers21. be sure they are adequetly trained.22. recognize and reward performance.Leadership23. lead by example24. listen to the front line employee25. strive for continuous process improvement.CUSTOMER RETENTIONCustomer retention represents the activities that produces the necessary customer satisfaction which in turn creates the customer loyalty.customer retention moves customer satisfaction to the next level by determining what is truly important to the customers and making sure that the customer satisfaction system focuses valuble resources on things that are important to the customer. Customer rettention is the connection between customer satisfaction and the bottom line.World-class companies knoe that continuous improvement and customer satisfaction should go hand-in-hand.Improved service to the customer is a costlier affair, so an organization must determine its return on the service invesment. For this the important service elements that significantly improve revenues and market share shuld be determined.One survey indicates, it requires five times of effort to win a new customer than retaining a present customer. In this context customer retention is important for organizational sucess.EMPLOYEE INVOLVEMENTJapanese management emphasizes the need to consider employee as a valuble resources rather than treating them as a mere tools for production.Employee involvement is one approach to improve quality and productivity. It is not an replacement for management nor is it the final word in quality improvement, it aims at better meeting of organizational goals at all levels.MotivationKnowledge fo motivation helps us to understand the utilization fo employee involvement to achieve process improvement.THEORIES OF MOTIVATIONHe explained the motivation interms of a heirarchy of needs and that there were five levels.These are survival, security, social, esteem, and self-actualization.( refer the above figure)It is important to note that as employees move up the heirarchy, they will immedietly revert back to the previous level if they feel threatned.HERZBERG'S TWO FACTOR THEORYHerzberg extends the Maslow's theory by using empirical research oin employee motivation.He found that people were motivated by the motivators ( intrinsic factors) like recognition, responsibility, achievement, advancement and the work itself.In addition he found that bad feelings were associated with preventable dissatisfiers or hygiene factors (extrinsic factors) like low salary, minimal fringe benefits, poor working conditions, ill-defined organizational policies and mediocre(ordinary) supervision.He also explained that the presence of extrinsic factors( for example good working condition) does not produce any motivation but their absence will create dissatifaction among employees.In a same manner the absence of intrinsic factors ( for example advancement) does not produce any dissatisfaction but their presence will provide strong level of motivation.Mcgregor's Theory X and Theory YHow to motivate work force1. Know thyself2. Know your employees3. Establish a positive attitude4. Share the goals5. Monitor progress6. Develop intersting work7. Communicate8. Celebrate sucessEMPOWERMENTThe dictionary meaning of the term empowerment is to invest people with authority.Its purpose is to tap the enourmous potential that lies within every worker.An operational definition is as follows:Empowerment is an environment in which people have the ability, the confidence, and the commitment to take the responsibility and ownership to improve the process and initiate the necessary steps to satisfy customer requirements within well defined boundaries in order to achieve organizational values and goals.Empowerment is nothing unusual, people generally want to be more in charge of their own jobs and carrers. afterall, they do that sucessfully in their personal lives every day. Most people appreciate and value the trust and respopnsibility.This empowerment helps greatly in eliminating resistence to changes.Empowerment is different from delegation or job enrichment, which means distributing or entrusting work to others.In empowerment employee is held responsible for accomplishing a whole task.i.e., employee becomes process owner, thus not only responsible but also accountable.Three conditions are necessary for empowering employees1. Everyone must understand the need for change2. The system needs to change to the new paradigm( model/standard)3. The organization must enable its employees.TEAMSTeams are very effective in solving all quality and productivity problems.Team is defined as a group of peopleworking together to achieve common objectives or goals.Teamwork is the cumulative actions of the team during which each member of the team subordinates his interests and opinions to fulfill the objectives or goals of the group.Many heads are better than one, especially in meeting ever-changing customer needs.Each member of the team have special ability that can be used for the problem.Many processes are so complex that one person cannot able solve completely.Based on the synergic effect, whole is greater than sum of its parts.Team work is better than sum of its member contribution.Team builds a rapport with each other that allows everyone to do a better job.Teams provide the vehicle for improved communication.Types of teams· Process improvement teams· cross-functional teams· natural work teams· self-directed/ self managed teamsCharacteristics of successful teamsSponsorTeam charterTeam competitiontraininggroud rulesclear objectivesaccountabilitywell-defined decision proceduresresourcestrusteffective problem solvingopen communicationappropriate leadershipbalanced participationcohesiveness.
Unit III TQM notes
There are lot of Web resources available with interesting examples for the III unit.http://www.isixsigma.com/offsite.asp?A=Fr&Url=http://www.skymark.com/resources/tools/control_charts.htmIn this link you will find information about all the statistical tools as well as management tools.Examples for different types of control charts are also available.
Unit-IV notes
This unit continues to discuss tools for TQM.BenchmarkingQuality Function deployment.TPM.An excellent introduction to TPM is available in this following link.http://www.plant-maintenance.com/articles/tpm_intro.shtmlTaguchi's loss function. (Quality Engineering.)FMEAI1. BENCHMARKING"Accept your limitations and then go beyond them"-AnonymousDefinitionBenchmarking is a systematic search for best practices,innovative ideas, and highly effective operating procedures.There are two key elements in this definition,for measuring performance, some units of measure.benchmarking requires that managersunderstand why their performance differs.It includes two components namely efficiency, (i.e., doing things better through best practices, innovative ideas) and effectiveness( i.e., doing better things through highly effective operating procedures).2.Reasons for benchmarking(a)Benchmarking as a tool for develop strengths and reduce weaknessesBenchmarking is tool to help organizations develop those strengths and reduce weaknesses. Once when you know where you are standing, it is obvious that you are made to know where you want to go.(b) Benchmarking provides an external orientation.While we discussing the different perceptions of quality in the first unit, we discussed that quality should not be viewed in vaccuum, i.e., it should be compared against your competitor's quality.In one sense we can quote benchmarking as a inspiration tool for managers.Through benchmarking, an organization can able to tap the oppurtunities available in the market because of competitor's weaknesses. And also it prepare itself for challenges posed by competitors because fo it's weaknesses.(c) Benchmarking is time and cost effective.Since benchmarking calls for creative adaptation and imitation and not pure invention.Just as the old saying goes why reinvent the wheel ? , you job is reduced to adapt the wheel and make sure that it rolls on smoothly.(d) Benchmarking chases the moving targetIn today's competitive environment, the customer satisfaction cannot be viewed as a static thing.Customers needs and expectations are growing, and meet this everchanging target benchmarking is useful.(e) Proper use of inforamtionThrough benchmarking the organization continuously scan the environment and enhances innovation. In a competitive scenario, the organization should continue to innovate as well as imitate.3. Benchmarking Process
Unit IV notes 2 -Web Links
For additional information on how this benchmarking is done in an organ9ization, follow this links.http://management.about.com/cs/benchmarking/a/Benchmarking.htmhttp://www.bambooweb.com/articles/b/e/Benchmarking.htmlBenchmarkingFrom Wikipedia, the free encyclopedia.Benchmarking (also "best practice benchmarking" or "process benchmarking") is a process used in management and particularly strategic management, in which companies evaluate various aspects of their business processes in relation to best practice, usually within their own industry. This then allows companies to develop plans on how to adopt such best practice. Benchmarking may be a one-off event, but is often treated as a continuous process in which companies continually seek to challenge their practices.A process similar to benchmarking is also used in technical product testing and in land surveying. See the article benchmark for these applications
Unit-V Notes
follwing material is Taken from the ISO websiteFrequently Asked Questions (FAQ's)In developing this list of Frequently Asked Questions (FAQ's), input has been obtained from experts and users of the ISO 9000 standards from around the world. The list will be reviewed and updated on a regular basis to maintain its accuracy, and to include new questions where appropriate. It is intended that this list will also provide a good source of information for new users of the standards.What is ISO?The International Organization for Standardization (ISO) was established in 1947 and is (currently) an association of approximately 149 National Standards Bodies, which each represent their own country. ISO employs a system of Technical Committees, Sub-committees and Working Groups to develop International Standards. Besides the National Standards Bodies, ISO permits other international organizations that develop standards to participate in its work, by accepting them as Liaison members. ISO works in accordance with an agreed set of rules of procedure, the ISO/IEC Directives, which also include requirements on the presentation of standards. For further details please refer to ISO's own web site at http://www.iso.org[FAQ 001, April 2004]Who are the National Standards Bodies, and who represents my country at ISO? Please use the link on ISO's web site that gives details, including contact information, of the National Standards Bodies: http://www.iso.org/iso/en/aboutiso/isomembers/index.html[FAQ 002, April 2004]What are the ISO 9000 standards ?The ISO 9000 standards are a collection of formal International Standards, Technical Specifications, Technical Reports, Handbooks and web based documents on Quality Management and Quality Assurance. There are approximately 25 documents in the collection altogether, with new or revised documents being developed on an ongoing basis.(It should be noted that many of the International Standards are numbered in the ISO 10000 range.)[FAQ 003, April 2004]Who is responsible for developing the ISO 9000 standards?ISO Technical Committee (TC) number 176 (ISO/TC 176), and its Sub-committees, are responsible for the development of the standards. The work is conducted on the basis of "consensus" among quality and industry experts nominated by the National Standards Bodies, representing a wide range of interested parties. [FAQ 004, April 2004]Where can copies of the standards be obtained?Copies of the standards may be purchased from your National Standards Body, or from ISO itself (sales@iso.org). Many National Standards Bodies have them available in local-language versions. [FAQ 005, April 2004]Where can information be obtained on the ISO 9000 standards?There are a number of sources of information on the ISO 9000 quality management system standards, including this web site and the ISO/TC 176 Web site, which carry information on the standards. Your National Standards Body should be able to provide copies of the standards, and registrars/certification bodies will be able to provide guidance on registration arrangements.[FAQ 006, April 2004]Where should an organization go if it needs clarification or interpretation of the standards?The starting point for an interpretation should be with your National Standards Body. ISO Central Secretariat and ISO/TC 176 cannot accept direct requests from individuals for interpretations of the ISO 9000 standards. Instead, ISO/TC 176 has established a Working Group for interpretation, with a formal procedure to provide answers to the questions that are forwarded by the National Standards Bodies. Details of agreed interpretations are now being published on the ISO/TC 176 web site at http://www.tc176.org. [FAQ 007, April 2004]What happened to the 1994 editions of ISO 9001, ISO 9002 and ISO 9003?Following extensive consultation with users and National Standards Bodies, it was agreed that the 1994 editions of ISO 9001, ISO 9002 and ISO 9003 should be consolidated into a single revised document, which is now represented by ISO 9001:2000.[FAQ 008, April 2004]What are the main benefits to be derived from implementing an ISO 9000 quality management system?The ISO 9000 standards give organizations an opportunity to increase value to their activities and to improve their performance continually, by focusing on their major processes. The standards place great emphasis on making quality management systems closer to the processes of organizations and on continual improvement. As a result, they direct users to the achievement of business results, including the satisfaction of customers and other interested parties.The management of an organization should be able to view the adoption of the quality management system standards as a profitable business investment, not just as a required certification issue.Among the perceived benefits of using the standards are:The connection of quality management systems to organizational processesThe encouragement of a natural progression towards improved organizational performance, via:the use of the Quality Management Principlesthe adoption of a "process approach"emphasis of the role of top managementrequirements for the establishment of measurable objectives at relevant functions and levelsbeing orientated toward "continual improvement" and "customer satisfaction", including the monitoring of information on "customer satisfaction" as a measure of system performancemeasurement of the quality management system, processes, and productconsideration of statutory and regulatory requirementsattention to resource availabilityThe concept of a "consistent pair" of standards; with ISO 9001 establishing initial requirements and ISO 9004 for going beyond the requirements to further improve the performance of the organizationConsideration of the needs of all interested parties.The concept of organizational self-assessment as a driver for improvement (see ISO 9004:2000)[FAQ 009, April 2004]What benefits are there to an organization implementing ISO 9004?If a quality management system is appropriately implemented, utilizing the eight Quality Management Principles, and in accordance with ISO 9004, all of an organization's interested parties should benefit. For example:Customers and users will benefit by receiving the products (see ISO 9000:2000) that are:Conforming to the requirementsDependable and reliableAvailable when neededMaintainablePeople in the organization will benefit by:Better working conditionsIncreased job satisfactionImproved health and safetyImproved moraleImproved stability of employmentOwners and investors will benefit by:Increased return on investmentImproved operational resultsIncreased market shareIncreased profitsSuppliers and partners will benefit by:StabilityGrowthPartnership and mutual understandingSociety will benefit by:Fulfilment of legal and regulatory requirementsImproved health and safetyReduced environmental impactIncreased security[FAQ 010, April 2004]Are the standards compatible with national quality award criteria?The standards are based on 8 Quality Management Principles, which are aligned with the philosophy and objectives of most quality award programs. These principles are:Customer focusLeadershipInvolvement of peopleProcess approachSystem approach to managementContinual improvementFactual approach to decision makingMutually beneficial supplier relationships.ISO 9004:2000 recommends that organizations perform self-assessments as part of their management of systems and processes, and includes an annex giving guidance on this approach. This is similar to many quality awards programmes. [FAQ 011, April 2004]Do the standards address financial issues?Financial issues are not directly addressed in ISO 9001:2000, but may be inferred though the requirements for the provision of resources. ISO 9004:2000 gives guidance that emphasizes the financial resources needed for the implementation and improvement of a quality management system. ISO/TR 10014:1998 "Guidelines for managing the economics of quality" also gives further guidance.[FAQ 012, April 2004]How will implementation of the standards help an organization to improve its efficiency?ISO 9001:2000 aims at guaranteeing the effectiveness (but not necessary the efficiency) of an organization. For improved organizational efficiency, however, the best results can be obtained by using the guidance given in ISO 9004:2000 in addition to ISO 9001:2000. Additionally, the guiding Quality Management Principles are intended to assist an organization in continual improvement, which should lead to efficiency throughout the organization. [FAQ 013, April 2004]Why is the requirement for monitoring "customer satisfaction" included in ISO 9001?"Customer satisfaction" is recognized as one of the driving criteria for any organization. In order to evaluate if a product meets customer needs and expectations, it is necessary to monitor the extent of customer satisfaction. Improvements can be made by taking action to address any identified issues and concerns. [FAQ 014, April 2004]Can the standards improve "customer satisfaction"? The quality management system details that are described in the standards are based on Quality Management Principles that include the "process approach" and "customer focus". The adoption of these principles should provide customers with a higher level of confidence that products will meet their needs and increase their satisfaction. [FAQ 015, April 2004]What is the "process approach"?The "process approach" is a way of obtaining a desired result, by managing activities and related resources as a process. The "process approach" is a key element of the ISO 9000 standards. For further guidance, please refer to the ISO 9000 Introduction and Support Package module: Guidance on the Concept and Use of the Process Approach for management systems.[FAQ 016, April 2004]Can the "process approach" be applied to other management systems?Yes. The "process approach" is a generic management principle, which can enhance an organization’s effectiveness and efficiency in achieving defined objectives.[FAQ 017, April 2004]How can the PDCA cycle be used in the "process approach"?The PDCA cycle is an established, logical, method that can be used to improve a process.This requires:(P) planning (what to do and how to do it),(D) executing the plan (do what was planned),(C) checking the results (did things happened according to plan) and(A) act to improve the process (how to improve next time).The PDCA cycle can be applied within an individual process, or across a group of processes.[FAQ 018, April 2004]Can any organization apply the "process approach"?Yes. Many organizations already apply a "process approach" without recognizing it. They could achieve additional benefits by understanding and controlling it.[FAQ 019, April 2004]Why should an organization apply the "process approach"?By applying the "process approach" an organization should be able to obtain the following types of benefits:The integration and alignment of its processes to enable the achievement of its planned results.An ability to focus effort on process effectiveness and efficiency.An increase in the confidence of customers and other interested parties as to the consistent performance of the organization.Transparency of operations within the organization.Lower costs and shorter cycle times through effective and efficient use of resources.Improved, consistent and predictable results.The identification of opportunities for focused and prioritized improvement initiatives.The encouragement and involvement of people, and the clarification of their responsibilities.The elimination of barriers between different functional units and the unification of their focus to the objectives of the organization.Improved management of process interfaces.[FAQ 020, April 2004]What is meant by the "sequence" of processes and their "interactions"?The "sequence" of processes shows how the processes follow, or link, to each other to result in a final output.For example, one process may become the output of the next process or processes.The "interactions" show how each process affects or influences one or more of the other processes. For example, the monitoring or controlling of a process may be established in a separate process.[FAQ 021, April 2004]How can the processes in an organization be determined?Identify the organization's intended outputs, and the processes needed for achieving them. These will need to include processes for Management, Resources, Realization and Measurement and Improvement.Identify all process inputs and outputs, along with the suppliers and customers, who may be internal or external.Identify the sequence and interactions of the processes.[FAQ 022, April 2004]Should an organization define and document all its processes?The main purpose of documentation is to enable the consistent and stable operation of an organization's processes.Although statutory, standards' or customer requirements may require certain documentation, there is no defined “catalogue”, or list of processes that has to be documented in ISO 9001, apart from the 6 indicated ones.The organization should determine which processes are to be documented on the basis of: The size of the organization and type of its activities,The complexity of its processes and their interactions,The criticality of the processes andAvailability of competent personnel.A number of different methods can be used to document processes, such as graphical representations, written instructions, checklists, flow charts, visual media, or electronic methods.[FAQ 023, April 2004]How much detail is required in process documentation?The extent of detail is likely to depend upon factors such as:he size of an organisation and its types of activities,the complexity of its processes and their interactions, andthe competence (level of education, training, skills and experience) of its personnel.[FAQ 024, April 2004]Is there a standard way of describing a process?No, there is no standard way to describe a process. It depends on the culture, management style, staff literacy, personal attributes and their interactions.A process may be described using a flow chart, block diagram, responsibility matrix, written procedures or pictures.Process flowcharts or block diagrams can show how policies, objectives, influential factors, job functions, activities, material, equipment, resources, information, people and decision making interact and/or interrelate in a logical order.[FAQ 025, April 2004]What should an organization do to adopt the "process approach"?To adopt the "process approach" an organization should apply the following steps:Identify the processes of the organization,Plan the processes,Implement and measure the processes,Analyse the processes,Improve the processes.[FAQ 026, April 2004]What is a "process owner"?A person who is given the responsibility and authority for managing a particular process is sometimes referred to as the "process owner".It may be useful for an organization's Management to appoint individual "process owners" and to define their roles and responsibilities; these should include the responsibility for ensuring the implementation, maintenance and improvement of their specific process and its interactions.It should be noted, however, that ISO 9001:2000 does not specifically require the appointment of "process owners".[FAQ 027, April 2004]How can a process be measured?There are various methods of measuring process controls and process performance, ranging from simple monitoring systems up to sophisticated statistically based systems (e.g. Statistical process control, or SPC, systems). The selection and use of any particular method will be dependent on the nature and complexity of an organization's processes and products. The effectiveness of an individual process may be measured by the conformity of its output or product to customer requirements. Its efficiency may be measured from its use of resources. In all cases the measurement of the process determines if its (measurable) objectives have been achieved. Sometimes it only requires monitoring to confirm process operations.Typical factors that are useful to consider when identifying measures of process control and process performance include: Conformity with requirements,Customer satisfaction,Supplier performance,On time delivery,Lead times,Failure rates,Waste,Process costs.Incident frequency[FAQ 028, April 2004]What is the difference between a "process" and a "procedure"?A "process" may be explained as a set of interacting or interrelated activities, which are employed to add value. A "procedure" is a method of describing the way in which all or part of that process is to be performed.ISO 9000:2000 defines a procedure as a "specified way to carry out an activity or a process", which does not necessarily have to be documented.[FAQ 029, April 2004]An organization has a well-established set of procedures. Can these procedures be used to help describe its processes?Yes, if the procedures describe inputs and outputs, appropriate responsibilities, controls and resources needed to satisfy customer requirements.[FAQ 030, April 2004]What is meant by "continual improvement"?ISO 9001 requires an organization to focus on continually increasing the effectiveness of its quality management system, to fulfil its policies and objectives. One way of doing this is for the organization to improve its processes. The organization may also wish to consider improving the efficiency of its processes, for which ISO 9004:2000 provides guidance. Continual improvement (where "continual" highlights that an improvement process requires progressive consolidation steps) responds to the growing needs and expectations of customers and ensures a dynamic evolution of the quality management system.[FAQ 031, April 2004]What documentation is required by ISO 9001?ISO 9001:2000 refers specifically to only 6 documented procedures; however, other documentation (including more documented procedures not specifically mentioned in ISO 9001:2000) may be required by an organization, in order to manage the processes that are necessary for the effective operation of the quality management system. This will vary depending on the size of the organization, the kind of activities in which it is involved and their complexity. For further guidance, please also refer to the ISO 9000 Introduction and Support Package module Guidance on the Documentation Requirements of ISO 9001:2000[FAQ 032, April 2004]Which standard are organizations registered/certified to? Organizations have their quality management system registered/certified to ISO 9001:2000. The scope of registration/ certification will need to reflect precisely and clearly the activities covered by the organization's quality management system; any exclusion to non-applicable requirements of the standard (permitted through ISO 9001 clause 1.2 "Application") will need to be documented and justified in the quality manual (see also the ISO/TC 176/SC2 ISO 9000 Introduction and Support Package module Guidance on ISO 9001:2000 clause 1.2 'Application). [FAQ 033, April 2004]What does an organization need to do to comply with ISO 9001?When initially starting to use ISO 9001, an organization should familiarize its personnel with the Quality Management Principles, analyze the standards (especially ISO 9004), and consider how their guidance and requirements may affect your activities and related processes. If it then wishes to proceed to registration/certification, it should perform a gap analysis against the requirements of ISO 9001 to determine where its current quality management system does not address the applicable ISO 9001:2000 requirements, before developing and implementing additional processes to ensure that compliance will be achieved.[FAQ 034, April 2004]Can an organization be certified/registered to ISO 9004:2000? ISO 9004:2000 is a guidance standard, which is not intended to be used for third party registration/certification purposes. A key element of ISO 9004 is the ability to perform self-assessments. Third party quality management system certifications/ registrations are performed to ISO 9001:2000. [FAQ 035, April 2004]What is the purpose of having ISO 9001 and ISO 9004 as a "consistent pair" of standards?The idea of a "consistent pair" of standards is central to ISO 9001:2000 and ISO 9004:2000. The aligned structures of ISO 9001 and ISO 9004 have been designed to encourage organizations to look at their activities from a process standpoint, and also to look beyond the achievement of registration/certification to ISO 9001, to the implementation of a quality management system that will be truly beneficial in improving operational performance. [FAQ 036, April 2004]How does ISO 9001:2000 relate to the needs of specific business sectors?The text of ISO 9001:2000 is applicable to organizations that provide different types of product and to organizations of different sizes. Due to this generic nature, some industrial or commercial sectors find that they need to identify additional requirements to attend to their specific requirements, so develop their own standards or related documents.To assure consistency between the ISO 9001 requirements and sector requirements, ISO's rules of procedure require that ISO/TC 176 be invited to review sectoral documents while they are being developed by ISO. A successful example of such a document is ISO Technical Specification ISO/TS 16949, which was developed in conjunction with representatives from the automotive industries. [FAQ 037, April 2004]Is an organization's ISO 9001 certificate applicable to all of its products ?When an organization seeks to have its quality management system registered/certified to ISO 9001:2000, it is required to agree a "scope of certification" with its registrar/certification body. This will define the products to which the organization's quality management system is applicable, and against which it will be assessed. An organization is not obliged to include within its "scope of certification" all the products that it provides (note that the ISO 9000:2000 definition of "Product" includes "services"), but may be selective about those that are included. All applicable requirements of ISO 9001:2000 will need to be addressed by the organization's quality management system that covers those products that are included in the "scope of certification".Customers should ensure that a potential supplier's "scope of certification" covers the products that they wish to order. Caveat Emptor![FAQ 038, April 2004]What can an organization do if it is not able to comply with all of the requirements of ISO 9001?ISO 9001 allows for the exclusion of some of its requirements (via clause 1.2 'Application'), but only if it can be shown that these requirements are not applicable to the organization.Exclusions are limited to the requirements given in Section 7 ("Product Realization"), where individual requirements may only be excluded if it can be shown that they do not affect the organization's ability to provide product that meets customer and applicable statutory or regulatory requirements. Justification for such exclusions is also required to be detailed within the organization's quality manual.For example, if design activities are not required by an organization to demonstrate its capability to meet customer and applicable statutory /regulatory requirements, or if its product is provided on the basis of established design, then it may be able to exclude some of the "design" requirements but still be able to be registered/certified to ISO 9001:2000.For further guidance, see the ISO 9000 Introduction and Support Package module: Guidance on ISO 9001:2000 clause 1.2 'Application'.[FAQ 39, April 2004]How will a small organization be able to adapt the requirements of ISO 9001? What flexibility will be allowed?The requirements of ISO 9001 are applicable to small, medium, and large organizations alike. ISO 9001:2000 provides some flexibility, through clause 1.2 “Application”, on the exclusion of certain requirements for specific processes that may not be performed by the organization.If, for example, the nature of your products does not require you to perform design activities, or if your product is provided on the basis of established design, you could discuss and justify the exclusion of these requirements with your certification/registration body (see also the ISO 9000 Introduction and Support Package module Guidance on ISO 9001:2000 clause 1.2 'Application'). However, individual organizations will still need to be able demonstrate their capability to meet customer and applicable statutory or regulatory requirements for their products, and will need to consider this when determining the complexity of their quality management systems.Further guidance for small businesses may be found in ISO Handbook: ISO 9001:2000 for Small Businesses - What to do, Advice from ISO/TC 176[FAQ 040, April 2004]What is the relationship between ISO 9001 and ISO 14001?ISO 9001 has been developed to be "compatible" with ISO 14001 Environmental management systems – Requirements with guidance for use, particularly with regard to terminology and content. There is close collaboration between the technical experts of ISO/TC 176 and ISO/TC 207 (the Technical Committee responsible for the ISO 14000 series of standards) during the development of their respective standards, to ensure that the level of compatibility is maintained or enhanced.A recent review of ISO 14001 and ISO 14004 by ISO/TC 207/SC 1 has led to the initiation of a revision of these standards, which is targeted for completion by the end of 2004. This has provided an opportunity for further enhancement of the "compatibility" between the ISO 9000 and ISO 14000 standards.[FAQ 041, April 2004]Are there any guidelines covering joint implementation of ISO 9001 and ISO 14001?ISO has just initiated a project to prepare a guideline on this subject at this present time (January 2004). This will take account of the revision to ISO 14001, due towards the end of 2004. For guidance on the auditing of both quality and environmental guidance management systems, the two responsible ISO technical committees (ISO/TC 176 and ISO/TC 207) jointly developed a single common auditing standard (ISO 19011) that replaced their own unique sets of auditing standards.[FAQ 042, April 2004]Is there a common guideline standard for auditing QMS and EMS according to ISO 9001 and 14001?ISO 19011:2002 Guidelines for quality and/or environmental management systems auditing gives guidance on auditing that is applicable to both quality management systems and environmental management systems. [FAQ 043, April 2004]How are the standards applicable to organizations that provide services?The standards are applicable to all types of organizations, operating in all types of sectors, including service providers. (Note: the definition of the term 'product' in ISO 9000:2000 also includes 'services'. ISO 9001:2000 and ISO 9004:2000 have been written to reflect this definition.) [FAQ 044, April 2004]What do quality management practitioners (consultant, auditor, or trainer) need to know about the standards?As a minimum, quality management practitioners should familiarize themselves with the requirements of ISO 9001:2000, and also with the content and philosophies of ISO 9000:2000, ISO 9004:2000 and the Quality Management Principles. They should understand their client’s activities and processes, before providing appropriate interpretations of the requirements of the standards, to add value to the client's operations. ISO/TC 176 is currently developing ISO 10019, Guidelines for the selection of quality management system consultants and use of their services, which may be useful to refer to for further guidance.[FAQ 045, April 2004]How should regulatory bodies use the standards?Regulatory bodies should review their regulations currently in effect (or under development) and identify points where reference to the quality management system standards would be appropriate, before making recommendations to the legislative body. [FAQ 046, April 2004]What do auditors need to know about the standards?Auditors, whether external or internal, should be able to demonstrate their competence on the structure, content and terminology of the standards, and also on the underlying Quality Management Principles.The standards require that auditors are able to understand the organization's activities and processes and appropriately audit against the requirements of the ISO 9001 in relation to the organization's objectives. According to joint advice from the International Accreditation Forum (IAF), ISO's Policy Committee for Conformity Assessment (ISO-CASCO) and ISO TC 176, auditors should be able to demonstrate competency in:The requirements of the ISO 9001:2000.The concepts and terminology of the ISO 9000:2000.The eight Quality Management PrinciplesA general understanding of the performance improvement guidelines of ISO 9004:2000Familiarity with the auditing guidance standard ISO 19011.A recent initiative between ISO/TC 176, ISO/CASCO and the IAF has been the establishment of an ISO 9001 Auditing Practices Group, which has issued a number of web based guidance notes to assist auditors.[FAQ 047, April 2004]follow this link to know about ISO 14000http://www.tc207.org/faq.asp?Question=9999
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