Written Report Tqm

8/4/2019 Written Report Tqm

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TABLE OF CONTENTS

Page

Historical Antecedent of ISO . 1

A Quest for Capability ... 4

Quality ......... 5

Stakeholders ..... 6

Quality Management Organizations and Awards ... 7

Verification and Validation . 8

ISO 9000 ... 9

Certification ..... 10

Auditing .... 11

Advantages 11

Disadvantages ...... 13

Sources . 16


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Topic of the Report:

Historical Antecedent of ISO A Quest of Capability

Reported by:

Ma. Therese Y. Villamayor

HISTORICAL ANTECEDENT OF ISO

Trade is one way of doing businesses in the Philippines by our forefathers even before

the arrival of the Spaniards. As our forefathers communities grow, they become more dependent

on others providing goods and services they are unable to provide from our own resources. Trade

continue up to this day on the strength of the customer-supplier relationship. In this relationship,

it is important to have trust and confidence.

Customer satisfaction, profitability and market leadership are driven in large part bydelivering quality products and services to customers. Today, more than ever, there is aworldwide trend towards increasingly stringent customer expectations regarding quality.

Accompanying this trend has been a growing realization that continuous quality improvementsare often necessary to achieving and sustaining excellent economic performance.

One roadblock to providing quality products and services was the definition whatquality meant to different customers. Different countries, industries and government all had

varying quality systems that suppliers had to adopt in order to deliver goods around the world. Asingle worldwide standard was needed to simplify international standard which resulted to thedevelopment of ISO 9000.

THE INTERNATIONAL ORGANIZATIONAL FOR STANDARDIZATION (ISO)

It is a worldwide federation of national standards bodies such as e.g. the US

standardization body ANSI. ISO prepares international standards, which are publicized after

voting among ISO members. Located in Switzerland, ISO is the specialized international agency

for standardization and the source of ISO 9000. Established in 1947, it is comprised of the


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national standards bodies of 140 countries, working together to produce more than 13,000

International Standards for business, government and society.

ISO 9000 family of standards relate to quality management systems and are designed to

help organizations ensure they meet the needs of customers and other stakeholders (Poksinska et

al, 2002[1]

). The standards are published by ISO, the International Organization forStandardization and available through National standards bodies. ISO 9000 deals with the

fundamentals of quality management systems (Tsim et al, 2002), including the eight

management principles (Beattie and Sohal, 1999; Tsim et al, 2002 ) on which the family of

standards is based. ISO 9001 deals with the requirements that organizations wishing to meet the

standard have to fulfill.

THE FAMILY OF ISO 9000 STANDARDS

There are four core Standards and a series of supporting Standards:

The term 'ISO 9000' is often incorrectly used. Properly used, it is the individual Standard,ISO 9000:2000 - Quality Management Systems Fundamentals and Vocabulary.
http://en.wikipedia.org/wiki/ISO_9000#cite_note-0http://en.wikipedia.org/wiki/ISO_9000#cite_note-0http://en.wikipedia.org/wiki/ISO_9000#cite_note-0http://en.wikipedia.org/wiki/International_Organization_for_Standardizationhttp://en.wikipedia.org/wiki/International_Organization_for_Standardizationhttp://en.wikipedia.org/wiki/Standards_organization#National_standards_bodies_.28NSBs.29http://www.iso.org/iso/iso_9000_selection_and_use.htmhttp://www.bsieducation.org/Education/14-19/topic-areas/quality-business/family-standards-text.shtmlhttp://www.iso.org/iso/iso_9000_selection_and_use.htmhttp://en.wikipedia.org/wiki/Standards_organization#National_standards_bodies_.28NSBs.29http://en.wikipedia.org/wiki/International_Organization_for_Standardizationhttp://en.wikipedia.org/wiki/International_Organization_for_Standardizationhttp://en.wikipedia.org/wiki/ISO_9000#cite_note-0


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When an organization is ISO 9001 registered (also known as certified) it means that an

auditor has checked and confirmed that it meets the requirements laid out in ISO 9001:2000.

This is the only standard in the family for which a third party can issue registration. The logo

opposite is the one displayed by the organizations that have gained registration through BSI.

EVOLUTION OF ISO 9000

ISO 9000 was first published in 1987. It was based on the BS 5750 series of standards

from BSI[23]that were proposed to ISO in 1979. Its history can however be traced back some

twenty years before that when the Department of Defense published its MIL-Q-9858 standard in

1959. MIL-Q-9858 was revised into the NATO AQAP series of standards in 1969, which in turn

were revised into the BS 5179 series of guidance standards published in 1974, and finally revised

into being the BS 5750 series of requirements standards in 1979, before being submitted to ISO.
http://en.wikipedia.org/wiki/BSI_Grouphttp://en.wikipedia.org/wiki/BSI_Grouphttp://en.wikipedia.org/wiki/BSI_Grouphttp://en.wikipedia.org/wiki/United_States_Department_of_Defensehttp://en.wikipedia.org/wiki/United_States_Department_of_Defensehttp://en.wikipedia.org/wiki/BSI_Grouphttp://en.wikipedia.org/wiki/BSI_Group


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BSI has been certifying organizations for their quality management systems since 1978.

Its first certification. (FM 00001) is still extant and held by the Tarmac company, a successor to

the original company which held this certificate. Today BSI claims to certify organizations at

nearly 70,000 sites globally. The development of the ISO 9000 series is shown in the diagram to

the right.

A QUEST FOR CAPABILITY

Trading organizations need to create and retain satisfied customers to survive. Many

business organizations develop their own ways to working and strive to satisfy their customers in

the best way they know how.

The obejective of ISO 9000 is to promote the development of standardization and relatedworld activities with a views to facilitating international exchange of goods and services and to

developing cooperation in the sphere of intellectual, scientific, technological, and economic

activity

Being able to identify customer needs and expectations as well as supplying the products

and services that meet customers requirements, customer confidence can be built up by

reputation, customer assessment or third party assessment.

The global adoption of ISO 9001 may be attributable to a number of factors. A number of

major purchasers require their suppliers to hold ISO 9001 certification. In addition to severalstakeholders benefits, a number of studies have identified significant financial benefits for

organizations certified to ISO 9001, with a 2011 survey from the British Assessment Bureau

showing 44% of their certified clients had won new business. Corbett et al (2005) showed that

certified organizations achieved superior return on assets compared to otherwise similar

organizations without certification. Heras et al (2002) found similarly superior performance and

demonstrated that this was statistically significant and not a function of organization size. Naveh

and Marcus (2007) showed that implementing ISO 9001 led to superior operational performance.

Sharma (2005)[12]identified similar improvements in operating performance and linked this to

superior financial performance.

Chow-Chua et al (2002) showed better overall financial performance was achieved for

companies in Denmark. Rajan and Tamimi (2003) showed that ISO 9001 certification resulted in

superior stock market performance and suggested that shareholders were richly rewarded for the

investment in an ISO 9001 system
http://www.bsieducation.org/Education/HE/subjects-standards/quality-management/quality-management.shtmlhttp://en.wikipedia.org/wiki/Return_on_assetshttp://en.wikipedia.org/wiki/ISO_9000#cite_note-Sharma2005-11http://en.wikipedia.org/wiki/ISO_9000#cite_note-Sharma2005-11http://en.wikipedia.org/wiki/ISO_9000#cite_note-Sharma2005-11http://en.wikipedia.org/wiki/ISO_9000#cite_note-Sharma2005-11http://en.wikipedia.org/wiki/Return_on_assetshttp://www.bsieducation.org/Education/HE/subjects-standards/quality-management/quality-management.shtml


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Quality Stakeholder

Reporter:

Mariel Anne B. Arambulo

QUALITY

In manufacturing, a measure of excellence or a state of being free from defects, deficiencies,

and significant variations, brought about by the strict and consistent adherence to measurable and

verifiable standards to achieve uniformity ofoutput that satisfies

customer or user requirements.ISO 8402-1986 standard defines quality as "the totality

offeatures and characteristics of a product or service that bears its ability to satisfy stated or

implied needs."

In supplying products or services there are three fundamental parameters that determines their

saleability. They are the price, quality and delivery. Customers require products and services of a

given quality to be delivered by or be available by a given time and to be of a price that reflectsvalue for money. Quality is determined by the extent to which a product or a service successfully

serves the purposes of the user during usage.

The word quality has many meanings.

1. A degree of excellence2. Conformance with requirements3. The totality of characteristics of entity that bear on its ability to satisfy stated or implied

needs

4. Fitness for use5. Fitness for purpose6. Freedom from defects imperfections or contamination7. Delighting customers

In the context of ISO 9000 quality is concerned with the totality of the characteristics that satisfy

needs. Quality is the degree to which a set of inherent characteristics fulfil the requirements.
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STAKEHOLDERS

A person, group, or organization that has direct or indirect stake in an organization because it

can affect or be affected by the organization's actions, objectives, and policies.

Stakeholders in a business organization include creditors, customers, directors, employees,

government (and its agencies), owners (shareholders), suppliers, unions, and

the community from which the business draws its resources.

Although stakeholding is usually self-legitimizing (those who judge themselves to be

stakeholders are stakeholder), all stakeholders are not equal and different stakeholders are

entitled to different considerations. For example, a companys customers are entitled to fair

trading practices but they are not entitled to the same consideration as the company's employees.

Organizations depend on the customers because without them there is no business, but in order tosatisfy these customers, organizations also depend on a number of other parties that provide it

with resources and sanction its operations. There are parties other than he customer that have an

interest or stake in the organization and in what it does but may not receive a product.

Criteria used by interested parties to judge business organization effectiveness or success:

Interested party Success criteria

Owner Financial return

Employees Job satisfaction, pay and conditions and qualityof leadership

Customers Quality of products and services

Community Contribution to thejobs, support for othertraders in the communitycare for the localenvironment

Suppliers Satisfactory mutual trading

Investors Value of shares

Government Compliance with legislation
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Quality Management Organizations and Awards Verification and Validation

Reporter:

Kristel Mae F. Villanueva

QUALITY MANAGEMENT ORGANIZATIONS AND AWARDS

The international organization for standardizations ISO 9001:2008 series describes standards for

a QMS addressing the principles and processes surrounding the design, development and

delivery of a general product or service. Organizations can participate in a continuing

certification process to ISO9001:2000 to demonstrate their compliance with the standard, which

includes a requirement for continual (i. e. planned) improvement of the ISO.

The Malcolm Baldrige national quality award is a competition to identify and recognize top

quality U.S. companies. This model addresses a broadly based range of quality criteria,including commercial success and corporate leadership. Once an organization has won the award

it has to wait several years before being eligible to apply again.

The European Foundation for Quality Managements EFQM Excellence Model supports an

award scheme similar to the Baldrige Award for European companies.

The Alliance for Performance Excellence is a network of state, local, and international

organizations that use the Malcolm Baldrige National Quality Award and model at the grassroots

level to improve the performance of local organizations and economies. Network for

Alliance.org is the Alliance website; browsers can find Alliance members in their state and get

the latest news and events from the Baldrige community.


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ISO 9000 Certification

Reporter:

Joanna Ruth L. Brazal

ISO 9000

To keep customers satisfied, the organization needs to meet their requirements. One of

the products design to meet this objective is the ISO 9000 standard. The product ISO 9000

provides a tried and tested framework for taking systematic approach to managing

organizations processes so that they consistently turn out products that satisfy customers

satisfaction. It contains technical specifications or other precise criteria to be used consistently as

rules, guidelines, or definitions of characteristics to ensure that materials, products, processes and

services are fit for their purpose.

Some of the requirements on ISO 9001 (which is one of the standards in the ISO 9000 family)

include:

a set of procedures that cover all key processes in the business; monitoring processes to ensure they are effective; keeping adequate records; checking output for defects, with appropriate or effective action where necessary; regularly reviewing individual processes and the quality system itself for effectiveness;

and

facilitating continual improvementA company or organization that has been independently audited and certified to be in

conformance with ISO 9001 may publicly state that it is ISO 9001 certified or ISO 9001

registered Certification to an ISO 9001 standard does not guarantee any quality of end products

and services; rather, it certifies that formalized business processes are being applied.

It is not necessary that a Company should obtain an ISO Certification. It is only the suppliers

customers who demand for the certification in order to remain on the approved suppliers or


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retain eligibility for receiving invitations to tender. Even without an ISO certification, most

companies interested in retaining their customers and their businesses usually already make some

type of commitment to quality management and are performing just as well.

CERTIFICATION

ISO does not itself certify organizations. Many countries have formed accreditation

bodies to authorize certification bodies, which audit organizations applying for ISO 9001

compliance certification. Although commonly referred to as ISO 900: 200 certifications, the

actual standard to which an organizations quality management can be certified is ISO

9001:2000.

The applying organization is assessed based on an extensive sample of its sites, functions,

products, services and processes. An ISO certificate is not an ounce is not a once-and-for-all

award, but must be renewed at regular intervals recommended by the certification body,

usually around three years.


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indeed, ISO 9000 registration has been cited as being of particular value for small and

mid-sized businesses hoping to establish a presence in international markets.

A reduced operational expenseSometimes lost in the many discussions of ISO 9000'spublic relations cache is the fact that the rigorous registration process often exposes

significant shortcomings in various operational areas. When these problems are brought

to light, the company can take the appropriate steps to improve its processes. These

improved efficiencies can help companies garner savings in both time and money. "The

cost of scrap, rework, returns, and the employee time spent analyzing and troubleshooting

various products are all considerably reduced by initiating the discipline of ISO 9000, "

confirmed Richard B. Wright inIndustrial Distribution.

Better management controlThe ISO 9000 registration process requires so muchdocumentation and self-assessment that many businesses that undergo its rigors citeincreased understanding of the company's overall direction and processes as a significant

benefit.

Increased customer satisfactionSince the ISO 9000 certification process almostinevitably uncovers areas in which final product quality can be improved, such efforts

often bring about higher levels of customer satisfaction. In addition, by seeking and

securing ISO 9000 certification, companies can provide their clients with the opportunity

to tout their suppliers' dedication to quality in their own business dealings.

Improved internal communicationThe ISO 9000 certification process's emphasis onself-analysis and operations management issues encourages various internal areas or

departments of companies to interact with one another in hopes of gaining a more

complete understanding of the needs and desires of their internal customers.

Improved customer service The process of securing ISO 9000 registration often servesto refocus company priorities on pleasing their customers in all respects, including

customer service areas. It also helps heighten awareness of quality issues among

employees.

Reduction of product-liability risksMany business experts contend that companies thatachieve ISO 9000 certification are less likely to be hit with product liability lawsuits, etc.,

because of the quality of their processes.

Attractiveness to investorsBusiness consultants and small business owners alike agreethat ISO-9000 certification can be a potent tool in securing funding from venture capital

firms.


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DISADVANTAGES OF ISO 9000

Despite the many advantages associated with ISO 9000, however, business owners and

consultants caution companies to research the rigorous certification process before committing

resources to it. Following is a list of potential hurdles for entrepreneurs to study before

committing to an initiative to gain ISO 9000 certification:

Owners and managers do not have an adequate understanding of the ISO 9000certification process or of the quality standards themselvesSome business owners have

been known to direct their company's resources toward ISO 9000 registration, only to

find that their incomplete understanding of the process and its requirements results in

wasted time and effort.

Funding for establishing the quality system is inadequateCritics of ISO 9000 contendthat achieving certification can be a very costly process, especially for smaller firms.

Indeed, according to a 1996 Quality Systems Update survey, the average cost of ISO

certification for small firms (those registering less than $11 million in annual sales) was

$71, 000.

Heavy emphasis on documentationThe ISO 9000 certification process relies heavily ondocumentation of internal operating procedures in many areas, and as Meyer stated,

"many say ISO's exacting documentation requirements gobble up time. Indeed, there are

horror stories about companies losing substantial business because a documentation

obsession redirected their priorities." According toNation's Business, small business

owners need to find an appropriate balance between ISO documentation requirements,

which are admittedly "one is ISO 9000's hallmarks, " and attending to the fundamental

business of running a company: "Strike a balance among obsessively writing down every

employee's task, offering training for the work, and letting common sense dictate how a

task is to be performed."

Length of the processBusiness executives and owners familiar with the ISO 9000registration process warn that it is a process that takes many months to complete. The

1996 Quality Systems Update survey indicated that it took businesses an average of 15

months to move from the early stages of the process to passage of the final audit, and that

processes of 18-20 months or even longer were not that uncommon.


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8 Quality Management Principles

Principle 1: Customer focus Principle 2: Leadership Principle 3: Involvement of people Principle 4: Process approach Principle 5: System approach to management Principle 6: Continual improvement Principle 7: Factual approach to decision making Principle 8: Mutually beneficial supplier relationships

Principle 1: Customer focus

Organizations rely on customers. Therefore:

Organizations should understand customer needs. Organizations should meet customer requirements. Organizations should exceed customer expectations.

Principle 2: Leadership

Organizations rely on leaders. Therefore:

Leaders should establish a unity of purpose and set the direction the organization shouldtake.

Leaders should create an environment that encourages people to achieve theorganization's objectives.

Principle 3: Involvement of people

Organizations rely on people. Therefore:

Organizations should encourage the involvement of people at all levels. Organizations should help people to develop and use their abilities.

Principle 4: Process approach

Organizations are more efficient and effective when they use a process approach. Therefore: Principle Organizations should use a process approach to manage activities and related

resources.

Principle 5: System approach to management

Organizations are more efficient and effective when they use a systems approach. Therefore:
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Organizations should identify interrelated processes and treat them as a system. Organizations should use a systems approach to manage their interrelated processes.

Principle 6: Continual improvement

Organizations are more efficient and effective when they continually try to improve. Therefore:

Organizations should make a permanent commitmentto continually improve their overall performance.

Principle 7: Factual approach to decision making

Organizations perform better when their decisions are based on facts. Therefore:

Organizations should base decisions on the analysis of factual information and data.Principle 8: Mutually beneficial supplier relationships

Organizations depend on their suppliers to help them create value. Therefore:

Organizations should maintain a mutual relationship between each otherbeneficial relationship with their suppliers
http://www.praxiom.com/iso-definition.htm#Quality%20management%20system%20(QMS)http://www.iso.org/iso/iso_catalogue/management_and_leadership_standards/quality_management/qmp/qmp-6.htmhttp://www.praxiom.com/iso-definition.htm#Continual%20improvementhttp://www.iso.org/iso/iso_catalogue/management_and_leadership_standards/quality_management/qmp/qmp-7.htmhttp://www.iso.org/iso/iso_catalogue/management_and_leadership_standards/quality_management/qmp/qmp-8.htmhttp://www.iso.org/iso/iso_catalogue/management_and_leadership_standards/quality_management/qmp/qmp-8.htmhttp://www.iso.org/iso/iso_catalogue/management_and_leadership_standards/quality_management/qmp/qmp-7.htmhttp://www.praxiom.com/iso-definition.htm#Continual%20improvementhttp://www.iso.org/iso/iso_catalogue/management_and_leadership_standards/quality_management/qmp/qmp-6.htmhttp://www.praxiom.com/iso-definition.htm#Quality%20management%20system%20(QMS)


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Tolentino-Baysa, Francisco C. Cullar and Ellinor C. Fua-Geronimo

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