INSTITUTE OF DISTANCE INSTITUTE OF DISTANCE LEARNING LEARNING

KNUSTKNUSTEXECUTIVE MBA/MPAEXECUTIVE MBA/MPA CEMBA/CEMPA 557CEMBA/CEMPA 557

OPERATIONS MANAGEMENTOPERATIONS MANAGEMENT

Lecture One: 1Lecture One: 1st st MeetingMeeting

LECTURE ONELECTURE ONEBLOCK ONE (1BLOCK ONE (1STST MEETING) MEETING)

ISSUES IN POMISSUES IN POM Issues in POM – An OverviewIssues in POM – An OverviewProduction System: Issues & Production System: Issues &

EnvironmentEnvironmentTotal Quality Management (TQM)Total Quality Management (TQM)

Production and Operations Mgt Production and Operations Mgt An OverviewAn Overview

DefinitionDefinitionOperations management is the Operations management is the

process of obtaining and utilising process of obtaining and utilising resources to produce useful goods resources to produce useful goods and services so as to meet the and services so as to meet the goal of the organisationgoal of the organisation

Significant Events in OMSignificant Events in OM

Figure 1.3Figure 1.3

Frederick W. TaylorFrederick W. Taylor

Born 1856; died 1915Born 1856; died 1915

Known as ‘father of scientific Known as ‘father of scientific management’management’

In 1881, as chief engineer for Midvale In 1881, as chief engineer for Midvale Steel, studied how tasks were doneSteel, studied how tasks were doneBegan first motion and time studiesBegan first motion and time studies

Created efficiency principlesCreated efficiency principles

Taylor’s PrinciplesTaylor’s Principles

Matching employees to right jobMatching employees to right job Providing the proper trainingProviding the proper training Providing proper work methods Providing proper work methods

and toolsand tools Establishing legitimate incentives Establishing legitimate incentives

for work to be accomplishedfor work to be accomplished

Management Should Take More Management Should Take More Responsibility for:Responsibility for:

W. Edwards DemingW. Edwards Deming

Born 1900; died 1993Born 1900; died 1993

Engineer and physicistEngineer and physicist

Credited with teaching Japan quality Credited with teaching Japan quality control methods in post-WW2control methods in post-WW2

Used statistics to analyze processUsed statistics to analyze process

His methods involve workers in His methods involve workers in decisionsdecisions

Contributions FromContributions From

Human factorsHuman factors Industrial engineeringIndustrial engineering Management scienceManagement science Biological scienceBiological science Physical sciencesPhysical sciences Information science Information science

New Challenges in OMNew Challenges in OM

Global focusGlobal focus

Just-in-timeJust-in-time

Supply chain partneringSupply chain partnering

Rapid product Rapid product development, alliancesdevelopment, alliances

Mass customizationMass customization

Empowered employees, Empowered employees, teamsteams

ToToFromFrom Local or national focusLocal or national focus

Batch shipmentsBatch shipments

Low bid purchasingLow bid purchasing

Lengthy product developmentLengthy product development

Standard productsStandard products

Job specializationJob specialization

Characteristics of GoodsCharacteristics of Goods Tangible productTangible product

Consistent product Consistent product definitiondefinition

Production usually Production usually separate from separate from consumptionconsumption

Can be inventoriedCan be inventoried

Low customer Low customer interactioninteraction

Characteristics of ServiceCharacteristics of Service Intangible productIntangible product

Produced and consumed Produced and consumed at same timeat same time

Often uniqueOften unique

High customer interactionHigh customer interaction

Inconsistent product Inconsistent product definitiondefinition

Often knowledge-basedOften knowledge-based

Frequently dispersedFrequently dispersed

Goods Versus ServicesGoods Versus Services

Table 1.3Table 1.3

Can be resoldCan be resold

Can be inventoriedCan be inventoried

Some aspects of quality Some aspects of quality measurablemeasurable

Selling is distinct from Selling is distinct from productionproduction

Product is transportableProduct is transportable

Site of facility important for costSite of facility important for cost

Often easy to automateOften easy to automate

Revenue generated primarily Revenue generated primarily from tangible productfrom tangible product

Attributes of GoodsAttributes of Goods(Tangible Product)(Tangible Product)

Attributes of ServicesAttributes of Services (Intangible Product) (Intangible Product)

Reselling unusualReselling unusual

Difficult to inventoryDifficult to inventory

Quality difficult to measureQuality difficult to measure

Selling is part of service Selling is part of service

Provider, not product, isProvider, not product, isoften transportableoften transportable

Site of facility important forSite of facility important forcustomer contactcustomer contact

Often difficult to automateOften difficult to automate

Revenue generated primarily Revenue generated primarily from the intangible servicefrom the intangible service

How is Operations relevant to my How is Operations relevant to my work or area of expertise?work or area of expertise?

AccountingAccounting

Information Information TechnologyTechnology

ManagementManagement

As an auditor you must As an auditor you must understand the fundamentals of understand the fundamentals of operations management.”operations management.”

““IT is a tool, and there’s no IT is a tool, and there’s no better place to apply it than in better place to apply it than in operations.”operations.”

““We use so many things you We use so many things you learn in operations managementlearn in operations management—scheduling, lean production, —scheduling, lean production, decision theory, materials decision theory, materials management and lots of quality management and lots of quality tools.”tools.”

How is Operations Relevant to How is Operations Relevant to my Major? my Major?

EconomicsEconomics

MarketingMarketing

FinanceFinance

It’s all about processes. I It’s all about processes. I live by flowcharts and live by flowcharts and Pareto analysis.”Pareto analysis.”

““How can you do a good job How can you do a good job marketing a product if marketing a product if you’re unsure of its quality you’re unsure of its quality or delivery status?”or delivery status?”

““Most of our capital Most of our capital budgeting requests are from budgeting requests are from operations, and most of our operations, and most of our cost savings, too.”cost savings, too.”

Scope and SignificanceScope and SignificanceThe name of production management was The name of production management was

changed to operations mgt as a result of changed to operations mgt as a result of the need to encompass the rapidly the need to encompass the rapidly expanding service sectorexpanding service sector

Operations mgt can be described as mgt of Operations mgt can be described as mgt of manufacturing and servicesmanufacturing and services

Some of the functional sub areas have Some of the functional sub areas have achieved great importance that they are achieved great importance that they are being explored as distinct subjects of study being explored as distinct subjects of study e.g. quality mgt, technology mgt, project e.g. quality mgt, technology mgt, project mgt and ergonomics.mgt and ergonomics.

Systemic View of OperationsSystemic View of Operations

There has been dramatic change in There has been dramatic change in the scenario of operations mgtthe scenario of operations mgt

The production of goods and services The production of goods and services is now customer focusis now customer focus

Conversion process add value to raw Conversion process add value to raw materialsmaterials

(Discuss diagram on page 6 of course book)(Discuss diagram on page 6 of course book)

Factors of ProductionFactors of ProductionTraditionally factors of production were, Traditionally factors of production were,

land, labour capital and entrepreneurshipland, labour capital and entrepreneurshipHas been new classification of resources Has been new classification of resources

to entities namely: men, money, to entities namely: men, money, machines, materials, methods, machines, materials, methods, management, measurement, message, management, measurement, message, motive powermotive power

Apart from men and money all the other Apart from men and money all the other resources are knowledge based and resources are knowledge based and technology orientedtechnology oriented

Productivity ChallengeProductivity Challenge

Productivity is the ratio of outputs (goods and Productivity is the ratio of outputs (goods and services) divided by the inputs (resources services) divided by the inputs (resources

such as labour and capital)such as labour and capital)

The objective is to improve this measure The objective is to improve this measure of efficiencyof efficiency

Important Note!Production is a measure of output only

and not a measure of efficiency

Productive Use of resourcesProductive Use of resourcesOperations personnel should make maximum Operations personnel should make maximum

use of resources at their disposaluse of resources at their disposal

Input = Output + WasteInput = Output + WasteThere are two approaches for enhancing There are two approaches for enhancing

productivityproductivity

a.a.Increasing productivityIncreasing productivity Productivity= Output/InputProductivity= Output/Input

The ratio can be improved in various waysThe ratio can be improved in various ways

1.1.Increasing output while keeping inputs constantIncreasing output while keeping inputs constant

2.2.Decreasing inputs while keeping output Decreasing inputs while keeping output constantconstant

3.3.Increasing output in greater proportion than Increasing output in greater proportion than increase in inputincrease in input

Productive Use of resourcesProductive Use of resourcesb. Decreasing wasteb. Decreasing waste• Reduction of waste or scrap is another Reduction of waste or scrap is another

way of enhancing productivityway of enhancing productivity• One way of reducing waste is to minimize One way of reducing waste is to minimize

the generation of wastethe generation of waste• The emphasis is shifting to tacking the The emphasis is shifting to tacking the

problem at the source of the generation problem at the source of the generation of the waste rather than dealing with the of the waste rather than dealing with the wastewaste

Environmental Concerns of Environmental Concerns of OperationsOperations

Operations management has impacted Operations management has impacted negatively to the environment negatively to the environment (comments………)(comments………)

As a result of the increase of production, As a result of the increase of production, the environment has been damaged to the environment has been damaged to an extent that the ozone layer is an extent that the ozone layer is threatenedthreatened

Various laws have been enacted to Various laws have been enacted to control the following pollutants- solid control the following pollutants- solid waste, liquid waste, atmospheric waste waste, liquid waste, atmospheric waste and noise pollutionand noise pollution

Social Concerns of OperationsSocial Concerns of OperationsOperations mgt can rightly pride itself for Operations mgt can rightly pride itself for

being in the vanguard of material being in the vanguard of material progressprogress

It has made life more comfortable and It has made life more comfortable and enjoyableenjoyable

Industrialization has created the need and Industrialization has created the need and awareness of knowledge and informationawareness of knowledge and information

(Please discuss the multidisciplinary nature of operations (Please discuss the multidisciplinary nature of operations

mgt – refer to page 8 of course material)mgt – refer to page 8 of course material)

IntroductionIntroduction

Role of Production MgtRole of Production MgtProduction mgt is concerned with proper Production mgt is concerned with proper

mgt and utilisation of enterprise resources mgt and utilisation of enterprise resources required to produce goods and servicerequired to produce goods and service

In this competitive environment In this competitive environment organisations are compelled to develop organisations are compelled to develop strategy which will make them strategy which will make them competitivecompetitive

For achieving this the functional level For achieving this the functional level strategies should contribute to the strategies should contribute to the coherent strategy of the organisation coherent strategy of the organisation

The reactive role of The reactive role of production/operations mgtproduction/operations mgt

Many companies fail to embrace operations mgt in Many companies fail to embrace operations mgt in their strategy formulation as a result of the their strategy formulation as a result of the following:following:

1.1. The production /operations mgr should have the ability to The production /operations mgr should have the ability to handle the strategic aspects of production/operations mgt handle the strategic aspects of production/operations mgt consistentlyconsistently

2.2. Production/operations mgrs rely more on verbal Production/operations mgrs rely more on verbal communication and have little interest in written wordscommunication and have little interest in written words

3.3. The production/operations mgrs has the tendency to view The production/operations mgrs has the tendency to view themselves as holding a reactive corporate briefthemselves as holding a reactive corporate brief

4.4. Companies also view the role of production/operations mgt Companies also view the role of production/operations mgt as short term and reactive to day to day activity and do not as short term and reactive to day to day activity and do not stress the long term nature of this taskstress the long term nature of this task

Production/Operations mgt Production/Operations mgt A system view point A system view point

Production /operations mgt is greatly influenced Production /operations mgt is greatly influenced by the rapid economic change and technological by the rapid economic change and technological advancementadvancement

According to Ogawa “production mgt may be According to Ogawa “production mgt may be defined as the planning, implementation and defined as the planning, implementation and control of production activities conducted by control of production activities conducted by organisational entity with define performance organisational entity with define performance objectives subject to modifications according to objectives subject to modifications according to ambient conditions”ambient conditions”

Production mgt encompasses all the activities Production mgt encompasses all the activities right to the end of the production processright to the end of the production process

The production system which are responsive to The production system which are responsive to rapid changes are capable of reducing the start up rapid changes are capable of reducing the start up period.period.

The Production SystemThe Production System

Systems PerspectiveSystems PerspectiveInputsInputsTransformation SystemTransformation System

AlterAlterTransportTransportStoreStoreInspectInspect

OutputsOutputsEnvironmentEnvironment

InputsInputsInputs include facilities, labor, Inputs include facilities, labor,

capital, equipment, raw materials, capital, equipment, raw materials, and supplies. and supplies.

A less obvious input is knowledge of A less obvious input is knowledge of how to transform the inputs into how to transform the inputs into outputs. outputs.

Characteristics of production Characteristics of production systemssystems

System discrimination- A production system System discrimination- A production system consisting primarily of inputs and output does consisting primarily of inputs and output does not have the wider connotations involving all not have the wider connotations involving all phases from technology forecasting to phases from technology forecasting to manufacturingmanufacturing

Interrelationship among systems- The closed Interrelationship among systems- The closed relationships that exist between production and relationships that exist between production and pre-production arrangements is known as the pre-production arrangements is known as the interrelationships between systemsinterrelationships between systems

Stratum Formulation- A production system Stratum Formulation- A production system consisting of various strata of corporate consisting of various strata of corporate hierarchy wherein each stratum has a role to hierarchy wherein each stratum has a role to play play

Characteristics of production Characteristics of production systemsystem

Specification of functions-As the production system Specification of functions-As the production system expands it trends to have large number of hierarchical expands it trends to have large number of hierarchical strata each performing specialised functionsstrata each performing specialised functions

Increase of Entropy- according to Ogawa entropy is a Increase of Entropy- according to Ogawa entropy is a measure of the degradation of the matter and the measure of the degradation of the matter and the energy in the universe to an ultimate state of inert energy in the universe to an ultimate state of inert uniformity. To cope with the rapid changes of uniformity. To cope with the rapid changes of technological innovation the organisation as well as technological innovation the organisation as well as production system needs to be rejuvenated.production system needs to be rejuvenated.

Insofinality –Insofinality is the process of reaching the Insofinality –Insofinality is the process of reaching the same goal by different routes. There are different same goal by different routes. There are different approaches to converting input to output.approaches to converting input to output.

Types of production systems Types of production systems controlscontrols

Control is the basis for production mgt. There are Control is the basis for production mgt. There are two types of controlstwo types of controls

1.1. Feedback control- In this type of control the Feedback control- In this type of control the output is obtained as a result of input and output is obtained as a result of input and processing. It is then measured to see if it is in processing. It is then measured to see if it is in agreement with the goal. If the output is not in agreement with the goal. If the output is not in agreement with the goal, corrective measures agreement with the goal, corrective measures are taken to address the shortfallare taken to address the shortfall

2.2. Feedforward control- In this type of control Feedforward control- In this type of control mechanism, input is checked against pre-mechanism, input is checked against pre-specified standards prior to processing as well as specified standards prior to processing as well as output phase. The feedforward control system output phase. The feedforward control system collects measurement data, compares them collects measurement data, compares them against the specification and initiate corrective against the specification and initiate corrective

measures.measures.

Production system designProduction system designDesign of production systems aims to Design of production systems aims to

achieve the right mix of varying achieve the right mix of varying proportions of the element of proportions of the element of productionproduction

The production system design must The production system design must be effective in its overall contextbe effective in its overall context

Production system must be designed Production system must be designed with both the internal and external with both the internal and external factors in mindfactors in mind

Productivity ImprovementProductivity ImprovementProductivity is a function of the relationship Productivity is a function of the relationship

between input and outputbetween input and outputProductivity improvement results when a Productivity improvement results when a

given output is achieved with less input or a given output is achieved with less input or a given output is achieved with less inputgiven output is achieved with less input

Productivity is a summary measure of the Productivity is a summary measure of the quantity and quality of work performance quantity and quality of work performance with optimal utilisation of scare resourceswith optimal utilisation of scare resources

In order to maximize the output and In order to maximize the output and minimize the input it is necessary to control minimize the input it is necessary to control the whole of production systemsthe whole of production systems

What does TQM meanWhat does TQM meanTQM is a systems approach to ensuring quality in TQM is a systems approach to ensuring quality in

an organisationan organisationTotal Quality Management means that the Total Quality Management means that the

organization's culture is defined by and supports organization's culture is defined by and supports the constant attainment of customer satisfaction the constant attainment of customer satisfaction through an integrated system of tools, through an integrated system of tools, techniques, and training. This involves the techniques, and training. This involves the continuous improvement of organizational continuous improvement of organizational processes, resulting in high quality products and processes, resulting in high quality products and services.services.

Quality activities are planned and managed into Quality activities are planned and managed into systems and are oriented towards the systems and are oriented towards the achievement of complete customer satisfactionachievement of complete customer satisfaction

What’s the goal of TQM?What’s the goal of TQM?““Do the right things Do the right things right right the first the first

time, every time.”time, every time.”

TQM:A HISTORIC PERSPECTIVETQM:A HISTORIC PERSPECTIVEQuality mgt systems have evolved through Quality mgt systems have evolved through

quality control, quality assurance and total quality control, quality assurance and total quality controlquality control

Quality control is concerned with defect detection Quality control is concerned with defect detection by using post-production inspection proceduresby using post-production inspection procedures

Quality assurance systems aim to produce as per Quality assurance systems aim to produce as per design specifications and emphasize defect design specifications and emphasize defect preventionprevention

Total quality control systems are concerned with Total quality control systems are concerned with cost reduction efforts as a drive towards continual cost reduction efforts as a drive towards continual improvementimprovement

Defining QualityDefining QualityIn technical usage, quality can have In technical usage, quality can have

two meanings:two meanings:the characteristics of a product or the characteristics of a product or

service that bear on its ability to satisfy service that bear on its ability to satisfy stated or implied needs, andstated or implied needs, and

a product or service free of deficienciesa product or service free of deficiencies

Defining Quality- Different Views Defining Quality- Different Views Customer’s view (more subjective)Customer’s view (more subjective)

the quality of the design (look, feel, function)the quality of the design (look, feel, function)product does what’s intended and lastsproduct does what’s intended and lasts

Producer’s viewProducer’s viewconformance to requirements (Crosby)conformance to requirements (Crosby)costs of quality (prevention, scrap, warranty)costs of quality (prevention, scrap, warranty)increasing conformance raises profitsincreasing conformance raises profits

Government’s viewGovernment’s viewproducts should be safeproducts should be safenot harmful to environmentnot harmful to environment

TQM’s Customer ApproachTQM’s Customer Approachthe customer defines quality.”the customer defines quality.”““the customer is always right.”the customer is always right.”““the customer always comes first.”the customer always comes first.”““the customer is king.”the customer is king.”““quality begins and ends with the quality begins and ends with the

customer”customer”

Types of CustomersTypes of CustomersExternal - outside the organization External - outside the organization

(people who pay the bills.)(people who pay the bills.)End-user customersEnd-user customersManufacturer (OEM) for suppliers.Manufacturer (OEM) for suppliers.

Internal - people within your Internal - people within your organization who receive your work organization who receive your work

In many situations, producers have In many situations, producers have multiple customers and therefore find multiple customers and therefore find it useful to identify “core customersit useful to identify “core customers

Understanding the customerUnderstanding the customer

Quality function deployment is a method used Quality function deployment is a method used to identify critical customer attributes and to to identify critical customer attributes and to create a specific link between customer create a specific link between customer attributes and design parametersattributes and design parameters

It helps marketing and design to answer three It helps marketing and design to answer three primary question?primary question?

a.a.What attributes are critical to our customers?What attributes are critical to our customers?

b.b.What design parameters are important in What design parameters are important in driving those attributes?driving those attributes?

c.c.What should the design parameter targets be What should the design parameter targets be for the new design?for the new design?

Process of developing the house of Process of developing the house of qualityquality

Establishing critical customer attributes for the Establishing critical customer attributes for the product based on their expectations and give product based on their expectations and give them weights according to their importancethem weights according to their importance

Establishing critical design parameters that drive Establishing critical design parameters that drive system performancesystem performance

Establishing the relationship between customer Establishing the relationship between customer wants and design parameterswants and design parameters

Identifying the inter-relationships between the Identifying the inter-relationships between the various design parameters to establish trade-offsvarious design parameters to establish trade-offs

Focusing on customer perceptions of the Focusing on customer perceptions of the company’s existing product compared to its company’s existing product compared to its competitorscompetitors

Process of developing the house of Process of developing the house of quality involves(cont)quality involves(cont)

Focusing on the internal assessment Focusing on the internal assessment by filling in the engineering sectionby filling in the engineering section

Analysing the matrix and choosing Analysing the matrix and choosing priority itemspriority items

Some Data on Customer Attitudes Some Data on Customer Attitudes and Loyaltyand Loyalty

(Source: Winning Back Angry Customers, (Source: Winning Back Angry Customers, Quality Progress, 1993)Quality Progress, 1993)

An average customer with a complaint tells 9-An average customer with a complaint tells 9-10 people; if it is resolved he/she only tells 5 10 people; if it is resolved he/she only tells 5 people.people.

For every complaint received, there are twenty For every complaint received, there are twenty others that are not reported.others that are not reported.

It costs 5-10 times more in resources to It costs 5-10 times more in resources to replace a customer than it does to retain one.replace a customer than it does to retain one.

Companies spend 95% of service time Companies spend 95% of service time redressing problems and only 5% trying to redressing problems and only 5% trying to figure out what made the customer angry.figure out what made the customer angry.

Productivity and TQMProductivity and TQMTraditional view:Traditional view:

Quality cannot be improved without Quality cannot be improved without significant losses in productivity.significant losses in productivity.

TQM view:TQM view:Improved quality leads to improved Improved quality leads to improved

productivity.productivity.

Basic Tenets of TQMBasic Tenets of TQM1.1. The customer makes the ultimate determination of The customer makes the ultimate determination of

quality.quality.

2.2. Top Management must provide leadership and Top Management must provide leadership and support for all quality initiatives.support for all quality initiatives.

3.3. Preventing variability is the key to producing high Preventing variability is the key to producing high quality.quality.

4.4. Quality goals are a moving target, thereby Quality goals are a moving target, thereby requiring a commitment toward continuous requiring a commitment toward continuous improvementimprovement

5.5. Improving quality requires the establishment of Improving quality requires the establishment of effective metrics. We must speak with data and effective metrics. We must speak with data and facts not just opinionsfacts not just opinions

The three aspects of TQMThe three aspects of TQM

Counting Counting Tools, techniques, and training in Tools, techniques, and training in

their use for analyzing, understanding, their use for analyzing, understanding,

and solving quality problemsand solving quality problems

Customers Customers Quality for the customer as a Quality for the customer as a

driving force and central concerndriving force and central concern..

CultureCulture Shared values and beliefs, expressed by Shared values and beliefs, expressed by leaders, that define and support quality. leaders, that define and support quality.

Total Quality ManagementTotal Quality Managementand Continuous Improvementand Continuous Improvement

TQM is the management process used TQM is the management process used to make continuous improvements to to make continuous improvements to all functions.all functions.

TQM represents an ongoing, continuous TQM represents an ongoing, continuous commitment to improvement.commitment to improvement.

The foundation of total quality is a The foundation of total quality is a management philosophy that supports management philosophy that supports meeting customer requirements meeting customer requirements through continuous improvementthrough continuous improvement

What are ISO 9000 StandardsWhat are ISO 9000 StandardsISO 9000 StandardsISO 9000 Standards

Define the required elements of an Define the required elements of an effective quality management systemeffective quality management system

Can be applied to any companyCan be applied to any companyAdopted by the United States as the Adopted by the United States as the

ANSI/ASQC Q90 series.ANSI/ASQC Q90 series.Revised 2000 – wider applicability Revised 2000 – wider applicability

Who created the standards?Who created the standards?International Organization for International Organization for

Standardization - GenevaStandardization - GenevaISO tech committee - TC 176 started ISO tech committee - TC 176 started

in 1979in 1979Standards created in 1987Standards created in 1987

To eliminate country to country To eliminate country to country differencesdifferences

To eliminate terminology confusionTo eliminate terminology confusionTo increase quality awarenessTo increase quality awareness

How did ISO get started?How did ISO get started?1906 - International Electro-technical Commission1906 - International Electro-technical Commission1926 - International Federation of the National 1926 - International Federation of the National

Standardizing Associations (ISA)Standardizing Associations (ISA)1946 London - delegates from 25 countries 1946 London - delegates from 25 countries

decided to create a new international decided to create a new international organization "the object of which would be to organization "the object of which would be to facilitate the international coordination and facilitate the international coordination and unification of industrial standardsunification of industrial standards

1947 - ISO began to officially function1947 - ISO began to officially function1951 - The first ISO standard was published1951 - The first ISO standard was published

"Standard reference temperature for industrial length "Standard reference temperature for industrial length measurement".measurement".

What has ISO Accomplished?What has ISO Accomplished?

ISO film speed codeISO film speed codeStandard Standard format forformat for telephone and banking cardstelephone and banking cards ISO 9000ISO 9000 which provides a framework for which provides a framework for

quality management and quality assurancequality management and quality assurance ISO 14000ISO 14000 series provides a similar framework series provides a similar framework

for environmental managementfor environmental management Internationally standardized freight containersInternationally standardized freight containersStandardizedStandardized paper sizespaper sizes..Automobile control symbolsAutomobile control symbols ISO international codesISO international codes for for country names, country names,

currencies and languagescurrencies and languages

ISO 9000:2000 Consists of 3 AreasISO 9000:2000 Consists of 3 AreasISO 9000:2000ISO 9000:2000 Quality Management Systems: Quality Management Systems:

fundamentals and vocabularyfundamentals and vocabulary

ISO 9001:2000ISO 9001:2000 Quality Management Systems – Quality Management Systems – Requirements (required for certification)Requirements (required for certification)

Management responsibilityManagement responsibilityResource managementResource managementProduct/service realizationProduct/service realizationMeasurement, analysis, improvementMeasurement, analysis, improvement

ISO 9004-2000ISO 9004-2000 Quality Management Systems – Quality Management Systems –Guidelines for performance improvementGuidelines for performance improvement