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Krupanidhi School of Management Module 4 (WCM)

MODULE 4 - QUALITY MANAGEMENT

2 marks questions

1. What is DMAIC? DMAIC – Defining the problem, Measuring important aspects, analyzing the information flow, Improving and Controlling. The DMAIC project methodology has five phases:

ʘ Define high-level project goals and the current process. ʘ Measure key aspects of the current process and collect relevant data. ʘ Analyze the data to verify cause-and-effect relationships. Determine what the relationships

are, and attempt to ensure that all factors have been considered. ʘ Improve or optimize the process based upon data analysis using techniques like Design of

experiments. ʘ Control to ensure that any deviations from target are corrected before they result in defects.

Set up pilot runs to establish process capability, move on to production, set up control mechanisms and continuously monitor the process.

2. Distinguish between Q.A. and Q.C. The difference between QA and QC are as follows:

Quality Assurance (Q.A.) Quality Control (Q.C.)“A part of quality management focused on fulfilling quality requirements”

“A part of quality management focused on providing confidence that quality requirements will be fulfilled.”

Quality Assurance is defined as “All the planned and systematic activities implemented within the quality system that can be demonstrated to provide confidence that a product or service will fulfil requirements for quality”.

Quality Control is defined as “The operational techniques and activities used to fulfil requirements for quality”.

Quality Assurance is fundamentally focused on planning and documenting those processes to assure quality including things such as quality plans and inspection and testing plans

Quality control on the other hand is the physicalverification that the product conforms to these planned arrangements by inspection, measurement

Quality Assurance is a complete system to assure the quality of products or services. It is not only a process, but a complete system including also control. It is a way of management.

Quality Control just measures and determines the quality level of products or services. It is a process itself.

Prof. Raghavendra A.N., BSc, MBA, UGC-NET, (PH.D) 1


3. Explain ISO 9000. ISO 9000 is a Series of standards agreed upon by the International Organization for

Standardization. Adopted in 1987 More than 100 countries including India A prerequisite for global competition ISO 9000 directs to "document what you do and then do as you documented." ISO is an international organization engaged in developing standards for various management

systems. ISO Certification can be for many international standards or management systems like for a

“Quality Management System” (QMS)- ISO 9001:2008, “Environment Management System” (EMS)- ISO 14001:2004 , “Occupational Health and Safety Management System” or OHSMS, “Food Safety Management System” (FSMS)- ISO 22000:2005, “Information Security Management System” (ISMS)- ISO 27001:2005 so on and so forth.

4. What is a quality circle? State the features of quality circles.Quality circle (QC) is a small group of people who carry out quality improvement activities within their work area. The group may consist of 3 to 5 person normally. Features of Quality circles are:

1. QC activities performed by operating level employees.2. Voluntary participation3. Small group of persons in the same work area or doing similar type of work4. Identify, define and solve problems related to work area5. QC members meet regularly( every week for an hour in normal)6. Leads to improved performance I the work area7. motivates and enriches work life8. Nature of the problems are of such that they can be solved by themselves with little help

from management9. Good work is recognized by management

5. Distinguish between quality and reliability.Quality is a snapshot at the start of life and reliability is a motion picture of the day-by-day operation. Time zero defects are manufacturing mistakes that escaped final test. The additional defects that appear over time are "reliability defects" or reliability fallout.

8 Marks Questions:1. What is quality? Explain how quality and the tools of quality can lead to overall organizational excellence. (OR)



Define Quality. What are the dimensions of quality? Explain the tools of quality. Quality is a product’s or service’s ability to satisfy the needs and expectations of the customer. Dimensions of quality:

Performance - basic operating characteristics Features -“extra” items added to basic features Reliability - probability product will operate over time Conformance - meeting pre-established standards Durability - life span before replacement Serviceability - ease of getting repairs, speed & competence of repairs Aesthetics - look, feel, sound, smell or taste Safety - freedom from injury or harm Other perceptions - subjective perceptions based on brand name, advertising, etc

The seven QC tools are the most popular tools, which are being used by quality conscious companies throughout the world for improvement of quality of products and processes.

A brief description of these tools is presented here:

1. Cause-and-Effect Diagrams2. Flowcharts3. Checklists4. Control Charts5. Scatter Diagrams6. Pareto Analysis7. Histograms

Cause and Effect Diagram Called Fishbone Diagram or Ishikawa diagram Focused on solving identified quality problem

Flow Charts Used to document the detailed steps in a process Often the first step in Process Re-Engineering



Checklists Simple data check-off sheet designed to identify type of quality problems at each work

station; per shift, per machine, per operator

Control Charts Important tool used in Statistical Process Control

The UCL and LCL are calculated limits used to show when process is in or out of control

Scatter Diagrams A graph that shows how two variables are related to one another Data can be used in a regression analysis to establish equation for the relationship



Pareto Analysis Technique that displays the degree of importance for each element Named after the 19th century Italian economist Often called the 80-20 Rule Principle is that quality problems are the result of only a few problems e.g. 80% of the

problems caused by 20% of causes

Histograms A chart that shows the frequency distribution of observed values of a variable like service

time at a bank drive-up window Displays whether the distribution is symmetrical (normal) or skewed

2. Write short notes on House of Quality. (July 2011)House of Quality is a structured format to translate customer requirements into specific product and service characteristics.Diagrammatically it is represented as below:



Building a House of Quality List Customer Requirements (What’s) List Technical Descriptors (How’s) Develop Relationship (What’s & How’s) Develop Interrelationship (How’s) Competitive Assessments Prioritize Customer Requirements Prioritize Technical Descriptors

3. Briefly explain the Quality Function Deployment

Quality Function Deployment (QFD) First conceptualized in 1966 as a method or concept for new product development under the

umbrella of Total Quality Control, Hinshitsu tenkai (quality deployment) was developed by Dr. Shigeru Mizuno and Yoji Akao.

QFD is used to translate customer requirements to engineering specifications. It is a link between customers - design engineers - competitors - manufacturing. It provides an insight into the whole design and manufacturing operation from concept to

manufacture and it can dramatically improve the efficiency as production problems are resolved early in the design phase.

In other words, QFD is Understanding Customer Requirements Quality Systems Thinking + Psychology + Knowledge/Epistemology


Technical Descriptors(Voice of the organization)

Prioritized TechnicalDescriptors

Interrelationshipbetween

Technical Descriptors

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Maximizing Positive Quality That Adds Value Comprehensive Quality System for Customer Satisfaction Strategy to Stay Ahead of The Game

Importance of QFD It is very powerful as it incorporates the voice of the customer in the designs - hence it is

likely that the final product will be better designed to satisfy the customer's needs. Moreover, it provides an insight into the whole design and manufacturing operation (from

concept to manufacture) and it can dramatically improve the efficiency as production problems are resolved early in the design phase.

As a quality system that implements elements of Systems Thinking with elements of Psychology and Epistemology (knowledge), QFD provides a system of comprehensive development process for:

o Understanding 'true' customer needs from the customer's perspective

o What 'value' means to the customer, from the customer's perspective

o Understanding how customers or end users become interested, choose, and are

satisfied o Analyzing how do we know the needs of the customer

o Deciding what features to include

o Determining what level of performance to deliver

o Intelligently linking the needs of the customer with design, development, engineering,

manufacturing, and service functions o Intelligently linking Design for Six Sigma (DFSS) with the front end Voice of

Customer analysis and the entire design system

4. What are the various control charts used in quality control? Control charts were developed by Walter Shewhart in 1920. The chart is based on the principle that the variability of a process is minimum when the process is running under chance causes (common causes) only. Trial batches are produced and process variation (6 sigma) is established. Control charts are prepared with control limits calculated on sample sizes. Sample sizes could be 2 to up to 9 . At fixed intervals ( eg, 30 min, one hr, 4 hrs based on production quantity) samples are taken and sample averages are plotted on the chart.

When the process is under control, all the points will be within the limits No unnatural patterns will be present Distribution of points will be denser in the centre and very infrequent at the limits.

Any change in the above indicates presence assignable/ special causes (out of statistical control). The process is stopped and actions are taken to eliminate the causes of variation.


Mean

Time

LCL

UCL


Types of control charts Control Charts for Variables - used when measurements are quantitative, for example, height,

weight, or thickness. One type of Variables Control Chart is the X - R Chart. Control Charts for Attributes - used when measurements are qualitative, for example,

accept/reject. Attributes control charts include: np Chart - for measurements which are counted, such as number of parts defective. p Chart - for percentage measurements, such as percentage of parts defective. c Chart - for measuring defects in units of constant size, for example, number of

imperfections in panes of glass. u Chart - for measuring defects in units of varying size, for example, number of

imperfections in pieces of fabric.

5. What are the effects of implementing TQM in a company?Effects of TQM implementation in a company

# Aspect Before After1 Top management

commitmentNot visible Highly visible

2 Policy clarity No policy Transparent , detailed3 Participation in

improvementsVery few persons All levels

4 Involvement of people < 10% >80%5 Communication No or poor

communicationEffective communication at all levels

6 Recognition Seldom Always7 Customer satisfaction low high8 Cost of poor quality high Very low9 Training activities Almost nil Continuous, every one10 Performance

measurementsNot focused Focused and targeted

11 Business results Stagnant or declining Steady improvement



12 Suppliers Outsiders keep them in dark, squeeze them.

Willing to work as extension of the company

6. Briefly explain the concept of 5S Housekeeping. (June/July 2010)5 “S” is a systematic approach to good housekeeping. The concept of good housekeeping has been with Japanese for a very long time. It was only in the early 1980s that good housekeeping became a pertinent issue in Japanese industries, as companies realized its powerful contribution to productivity and quality improvement.5S can be briefly described as show in the table:

5 “S” Japanese English

1 S Seiri Sort out unnecessary items in the workplace and discard them.

2 S Seiton Arrange necessary items in good order.

3 S SeisoClean your workplace thoroughly so that there is no dust on floors, machines and equipment.

4 S SeiketsuMaintain high standards of housekeeping at workplace at all times.

5 S Shitsuke Train people to follow good housekeeping disciplines.

1) SEIRI - SORT OUT THE ITEMS AND DISCARD THE UNWANTED– Make a list of all the items in the department.– The list should include raw material, wip, finished product, tools, tackles, dust bin,

facilities like chair, table, bins etc. nothing should be left unlisted.– Appropriate authority should decide which items can be disposed off and which items

need to be kept in the department.– Items marked for disposal should be disposed off in a safe manner.

2) SEITON - PLACE FOR EVERY THING– After disposing unwanted material, provide appropriate place for every item that has

to be kept in the department.– While providing the place the ergonomic factors and safety aspects have also to be

considered.– Place for movement of men and material should also be provided.– Place should be distinctly identified and marked.– Place for display of instructions, posters etc. should also be identified.

3) SEISO - CLEAN THE PLACE THOROUGHLY AND KEEP EVERY THING IN IT’S PLACE.

– Clean everything including material, floor, containers, walls, windows etc.– If necessary painting also should be done.



– While painting follow color codes wherever applicable.– Insist on regular cleaning at the end of the work

4) SEIKETSU - MAINTAIN HIGH STANDARDS OF HOUSEKEEPING AT WORKPLACE AT ALL TIMES

– Ensure that people keep the items at designated place after it’s use.– If possible, design the system such that if something is missing from the place, it is

easily highlighted5) SHITSUKE - TRAIN PEOPLE TO FOLLOW GOOD HOUSEKEEPING DISCIPLINE

– Train people in 5 S, housekeeping etc.– Lead by example.– Maintain discipline in every aspect

12 Marks Questions:

1. What is POKAYOKE and Zero Defect Quality? Discuss the seven steps to POKAYOKE attainment. Explain the nine types of wastes in POKAYOKE achievement.Poka Yoke is a quality management concept developed by a Matsushita manufacturing engineer named Shigeo Shingo to prevent human errors from occurring in the production line. Poka yoke (pronounced “poh-kah yoh-kay”) comes from two Japanese words – “yokeru” which means “to avoid”, and “poka” which means “inadvertent errors.” Thus, poka yoke more or less translates to “avoiding inadvertent errors”.The main objective of poke yoke is to achieve zero defects. In fact, it is just one of the many components of Shingo’s Zero Quality Control (ZQC) system, the goal of which is to eliminate defective products.A quality concept to manufacture ZERO defects & elimination of waste associated with defects is known as zero defect quality. The goal of ZDQ is zero! Make certain that the required conditions are in place and controlled to make acceptable product 100% of the time. ZDQ functions by combining four elementary components:

1. Point of Origin Inspection2. 100 % Audit Checks3. Immediate Feedback4. Poka-Yoke

Seven steps to POKAYOKE attainment:1.) Quality Processes - Design “Robust” quality processes to achieve zero defects.2.) Utilize Team Environment- leverage the team’s knowledge, experience to enhance the improvement efforts.3.) Elimination of Errors -Utilize a robust problem solving methodology to drive defects towards zero.4.) Eliminate the “Root Cause” of The Errors-Use the 5 Why’s and 2 H’s approach 5.) Do It Right the First Time- Utilizing resources to perform functions correctly the “first” time 6.) Eliminate Non-Value Added Decisions- Don’t make excuses-just do it



7.) Implement an Incremental Continual Improvement Approach - implement improvement actions immediately and focus on incremental improvements; efforts do not have to result in a 100% improvement immediately.The nine types of wastes in POKAYOKE achievement are:

(i) Overproduction(ii) Delays (waiting time)(iii) Transportation(iv) Process(v) Inventories(vi) Motions(vii) Defective products(viii) Untapped resources(ix) Misused resources

(i) Over-production wasteDefinition• producing more than what is needed• producing faster than what is neededCauses• Volume incentives (sales, pay, purchasing)• High capacity equipment• Line imbalance; poor scheduling/shifting• Poor production planning• Cost accounting practices that encourage build up of inventoryOver-production waste occurs when more goods are produced than can be sold, resulting in idle finished goods inventory. Over-produced goods are often hidden wastes since many think they are assets with value, when in fact most of them may be obsolete or costing the company unnecessary expenses just to keep them until they can be sold if ever. The just-in-time, pull system, and kanban rules prevent over-production wastes. Also, lean systems favor smaller equipment over large ones to avoid overproduction due to high but unnecessary capacity utilization.

(ii) Waiting time wasteDefinition• Man idle or waiting time• Machine idle or waiting timeCauses• Unsynchronized processes; line imbalance• Inflexible work force• Over-staffing• Unscheduled machine downtime• Long set-up• Material shortage or delay• Manpower shortage or delayWhen resources like people and equipment are forced to wait unnecessarily because of delays in the arrival or availability of other resources including information, there is waiting time waste.



Waiting for late attendees in a meeting, waiting for tools to start work, waiting for a signature for a process to continue, waiting for a late vehicle to transport workers to a project site are examples of this waste.(iii) Transport wasteDefinition• Unnecessary material movement• Unnecessary tools or equipment movementCauses• Poor route planning• Distant suppliers• Complex material flows• Poor layout• Disorganized workplace• Line imbalanceWhen anything – people, equipment, supplies, tools, documents, or materials – is moved or transported unnecessarily from one location to another, transport waste is generated. Examples are transporting the wrong parts, sending materials to the wrong location or at the wrong time, transporting defects, and sending documents that should not be sent at all. One way to cut transport waste is co-location, wherein customers are served by nearby suppliers, usually less than one-hour driving distance away. Departments working with each other or serving each other are also put near each other to cut transport waste. For example, materials and tools departments may be moved, relocated, or pre-positioned beside or nearer the user departments or their internal customers.

(iv) Processing wasteDefinition• Non-value added man processing• Non-value added machine processingCauses• Unclear customer specifications• Frequent engineering changes• Excessive quality (refinements)• Inadequate value analysis/value engineering• Unclear work instructionsProcessing waste comes from unnecessary processing that does not add value to the item being produced or worked on. Examples are additional steps that do not enhance quality or steps that simply adds excess quality which customers do not require. Unnecessary documentation is also a form of processing waste. Identify value-adding and non-value adding activities in the process using techniques such as value stream analysis and the waterfall diagram.(v) Inventory WasteDefinition• Excessive process (WIP) inventories• Excessive raw material inventories and suppliesCauses

• Over-production• Imbalanced line



• Big batch sizes• Long lead times• Local optimization (turf mentality)• Large minimum order quantities• High rework rate• JIT-incapable suppliers• lack of material requisition and issuance standards

Inventory wastes come from the purchasing, issuance, storage of excess or excessive supplies, materials, and other resources. This waste can also be caused by overproduction as excess materials and work-in-process are accumulated. Inventory waste is often due to lack of planning and failure to match purchases with the actual consumption or usage rate of a particular resource.Another example is the storing of slow-moving and obsolete stocks like tools and materials.

(vi) Motion WasteDefinition• Unnecessary movement and motions of workerCauses• Poor lay-out and housekeeping• Disorganized work place and storage locations• Unclear, non-standardized work instructions• Unclear process and materials flowMotion waste happens when unnecessary body movements are made when performing a task.Examples are searching, reaching, walking, bending, lifting, and other unnecessary bodily movements. Workers commit this form of waste by searching for tools or documents when their workplace is cluttered or disorganized. Motion waste often delays the start of work and disrupts workflow.

(vii) DefectsDefinition• Processing due to the production of defects• Processing due to rework or repair of defects• Materials used due to defect and reworkCauses• Unclear customer specifications• Incapable processes• Lack of process control• Unskilled personnel• Departmental rather than total quality• Incapable suppliers

Quality is doing the right thing right the first time. It is about prevention and planning, not correction and inspection. Bad quality or defects do not only result in customer dissatisfaction and damage to company image, but also in wastes due to additional costs and time to recall, rework, repair, and replace the defective items. Continuous quality improvement and preventive measures are the most effective means to cut defect wastes.Prof. Raghavendra A.N., BSc, MBA, UGC-NET, (PH.D) 13


(viii) Untapped resourcesUntapped resources restrict employee's authority and responsibility to make routine decisions. Having highly paid staff do routine tasks that don't require their unique expertise. Not providing the business tools needed to perform and continuously improve each employee's assigned work. Not trusting your people to stop production to stop and fix a problem (jidoka). Not trusting your people to be responsible for the cleanliness, maintenance, and organization of their own work area. Not trusting people with a flat organization structure of largely self-directed teams. Not expecting (and measuring) every person to contribute to continuous improvement.

(ix) Misused resourcesAny missing or misinformation regarding the resources leads to error. Any goals or metrics that cause uncertainty about the right thing to do.

2. Discuss in detail TQM philosophy quoting Deming’s 14 point management principles. TQM is a Management philosophy and company practices that aim to harness the human and material resources in most effective way to achieve objectives of the organization Total in “Total Quality management” means

All Interested parties are considered All requirements are addressed All activities of the organization are covered All employees are involved

Demings’ 14 principles of Quality management

1. Constancy of purpose: Create constancy of purpose for continual improvement of products and service to society, allocating resources to provide for long range needs rather than only short term profitability, with a plan to become competitive, to stay in business, and to provide jobs.

2. The new philosophy: Adopt the new philosophy. We are in a new economic age, created in Japan. We can no longer live with commonly accepted levels of delays, mistakes, defective materials and defective workmanship. Transformation of Western management style is necessary to halt the continued decline of business and industry.

3. Cease dependence on mass inspection: Eliminate the need for mass inspection as the way of life to achieve quality by building quality into the product in the first place. Require statistical evidence of built in quality in both manufacturing and purchasing functions.

4. End lowest tender contracts: End the practice of awarding business solely on the basis of price tag. Instead require meaningful measures of quality along with price. Reduce the number of suppliers for the same item by eliminating those that do not qualify with statistical and other evidence of quality. The aim is to minimize total cost, not merely initial cost, by minimizing variation. This may be achieved by moving toward a single supplier for any one item, on a long term relationship of loyalty and trust. Purchasing managers have a new job, and must learn it.

5. Improve every process: Improve constantly and forever every process for planning, production, and service. Search continually for problems in order to improve every activity in the company, to improve quality and productivity, and thus to constantly decrease costs. Institute



innovation and constant improvement of product, service, and process. It is management's job to work continually on the system (design, incoming materials, maintenance, improvement of machines, supervision, training, retraining).

6. Institute training on the job: Institute modern methods of training on the job for all, including management, to make better use of every employee. New skills are required to keep up with changes in materials, methods, product and service design, machinery, techniques, and service.

7. Institute leadership: Adopt and institute leadership aimed at helping people do a better job. The responsibility of managers and supervisors must be changed from sheer numbers to quality. Improvement of quality will automatically improve productivity. Management must ensure that immediate action is taken on reports of inherited defects, maintenance requirements, poor tools, fuzzy operational definitions, and all conditions detrimental to quality.

8. Drive out fear: Encourage effective two way communication and other means to drive out fear throughout the organization so that everybody may work effectively and more productively for the company.

9. Break down barriers: Break down barriers between departments and staff areas. People in different areas, such as Leasing, Maintenance, Administration, must work in teams to tackle problems that may be encountered with products or service.

10. Eliminate exhortations: Eliminate the use of slogans, posters and exhortations for the work force, demanding Zero Defects and new levels of productivity, without providing methods. Such exhortations only create adversarial relationships; the bulk of the causes of low quality and low productivity belong to the system, and thus lie beyond the power of the work force.

11. Eliminate arbitrary numerical targets: Eliminate work standards that prescribe quotas for the work force and numerical goals for people in management. Substitute aids and helpful leadership in order to achieve continual improvement of quality and productivity.

12. Permit pride of workmanship: Remove the barriers that rob hourly workers, and people in management, of their right to pride of workmanship. This implies, among other things, abolition of the annual merit rating (appraisal of performance) and of Management by Objective. Again, the responsibility of managers, supervisors, foremen must be changed from sheer numbers to quality.

13. Encourage education: Institute a vigorous program of education, and encourage self improvement for everyone. What an organization needs is not just good people; it needs people that are improving with education. Advances in competitive position will have their roots in knowledge.

14. Top management commitment and action: Clearly define top management's permanent commitment to ever improving quality and productivity, and their obligation to implement all of these principles. Indeed, it is not enough that top management commit themselves for life to quality and productivity. They must know what it is that they are committed to-that is, what they must do. Create a structure in top management that will push every day on the preceding 13 Points, and take action in order to accomplish the transformation. Support is not enough: action is required!

3. Write short notes on Six Sigma. (June 2009)



Six Sigma: Six Sigma is a business management strategy originally developed by Motorola. As of 2009, it enjoys widespread application in many sectors of industry, although its application is not without controversy. Six Sigma is a fact-based data driven structured methodology that is used to create breakthrough improvements in business processes with a strong focus on customer needs. It is used to solve tough business problems when the root cause of the problem or the solution is not known. Six Sigma seeks to improve the quality of process outputs by identifying and removing the causes of defects (errors) and variability in manufacturing and business processes.It uses a set of quality management methods, including statistical methods, and creates a special infrastructure of people within the organization ("Black Belts"," Green Belts", etc.) who are experts in these methods.Each Six Sigma project carried out within an organization follows a defined sequence of steps and has quantified financial targets (cost reduction or profit increase).

How six sigma works

The Six Sigma project starts in forming the Six Sigma organization. The roles and responsibilities of each member should be clearly defined. Here is a sample of defined roles and responsibilities:

Leader/Leadership Council – senior-rank management who is accountable for executing Six Sigma project within the association

Champion – performance head in-charge with directing and enlivening the Six Sigma efforts Finance Representative – substantiate projected and concrete savings Sponsor – senior-rank management who funds the Six Sigma projects and has directorial

power to modify changes in the process Process Owner – a certified person accountable for the business course of action that is the

target of Six Sigma project Coach – gives technical help and support to the project group Team Leader – also identified as the Project Head, responsible in organizing the Six Sigma

projects from launch to finish Master Black Belt – a highly practiced Black Belt who has supervised numerous projects

and is a specialist in Six Sigma techniques and methods. Person accountable for training and mentoring Black Belts and for assisting the Six Sigma Champions and Head.

Black Belt – permanent expert who acts as a team lead on Six Sigma assignments. Usually has four to six weeks of classroom education in methods, numerical tools, and team proficiency

Green Belt – trained person who plays a part-time role on a Black Belt project team or leads less significant assignment. Usually has three weeks of classroom education in methods and basic numerical tools.

Yellow Belt – usually has one to two weeks classroom education. Devotes part-time work while doing the usual work duties

4. Distinguish between ISO 9000 and ISO 14000.

The International Organization for Standardization (ISO) is a managing body that was founded to provide quality and environmental management systems to industries across the world. The ISO 14001 and ISO 9001 standards are accreditations that are issued to organizations that meet or exceed the criteria set by the ISO. The certifications, which differ in criteria, have been proven to increase profitability and commercial status for the holding parties.


http://www.wisegeek.com/what-is-iso-9001.htm

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Some of the core differences between these two standards stem from the criteria covered by each. As a quality management certification, ISO 9001 is awarded based on set standards being met in the key areas of quality management systems, management responsibility, resource management, and how quality performance is measured, analyzed, and improved.

The standard ISO 14001 is an environmental management certification that is designed to assist organizations as they develop in-house environmental management systems. This standard is based on a model of continual improvement, which differentiates it from the fixed criteria that must be met to be awarded ISO 9001 accreditation. For an organization to achieve the certification, it must develop an ISO 14001-compliant environmental management system through a process of planning objectives, implementing processes, measuring and monitoring the processes, and improving the system based on the results of the monitoring stage.

Case Study - Eurocamp Travel

Eurocamp Travel, which provides family camping holidays, has a reputation for the high-quality of its equipment and services, and has become market leader in this rapidly growing holiday sector. In recent years, sales offices have been opened in the Netherlands and Germany, and Eurocamp’s geographic coverage has been extended from its original French sites to include sites throughout Europe. As the business has become larger and more complex, the demands placed on the office systems have also become greater, reinforcing the need for functional specialization of staff, yet requiring more interdepartmental understanding and cooperation. When it became clear that Eurocamp’s service package could be copied by competitors eager to attract premium customers, the company decided to reinforce quality at every stage in their process. This was, they believed, the main criterion that already differentiated Eurocamp, and this was also potentially the most difficult for lower priced competitors to follow.

A consultant was brought in to facilitate a major quality improvement programme. This was conceived as a ‘top-down’ approach, whereby important projects were identified and tackled by trained teams, But soon it became apparent that these early projects were not achieving the anticipated sustainable improvements. It also became clear that the failure was largely the result of only involving senior managers, who could not devote the time required to projects, and did not fully understand the process concerned. Those employees who did have a very detailed understanding of the process had been excluded from problem definition, evaluation and implementation of changes.

So, the company launched their quality management system (QMS) initiative. Each department established a quality steering committee which comprised at least one director, a trained facilitator and volunteers from every grade of employee. The emphasis at this stage was on the identification


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and improvement of internal processes with further emphasis on satisfying the internal customer. Early success demonstrated the validity of this approach and generated a high level of enthusiasm throughout the company.

Questions

1 Why are the differences between the first ‘top-down‘attempt, and the second attempt at establishing a quality initiative?

2 What do you think are the main advantages and problems with the more participative approach?

Answers to the case study

1. What are the differences between the first ‘top-down’ attempt, and the second attempt at establishing a quality initiative?

There are two important points about this case. Firstly that Eurocamp recognized one of the important aspects of a TQM approach that all parts of an organisation have a role to play in ensuring high quality. Second, like many organisations they try differing initiatives to improve quality, some work and some don’t. This in itself can undermine TQM initiatives. TQM has itself to be done right first time too!

The key differences between the first attempt and second attempt are as follows:

First attempt Second attempt

Leadership Used a consultant Company-ledOverseen by Senior managers DepartmentsTeam composition Senior managers All grades of employeesTeam selection Selected VoluntaryTraining Used trained teams Used trained facilitatorsUnderstanding of processes Little GreatFocus ‘Important’ projects Internal processesApproach ‘top-down’ ‘bottom-up’Sustainability Momentum not sustained High level enthusiasmSuccess unsuccessful successful

2. What do you think are the main advantages and problems with the more participative approach?

Advantages: involved all employees included the people who knew most about the processes it is in the interest of those employees to have the internal process problems resolved non-threatening and inclusive sustainable and successful



Problems: the problems may not be solvable by ‘low level’ teams employees will be demoralized if changes do not take place spending time on the projects will reduce the time spent on actual jobs Employees may choose to work on inappropriate or unimportant issues.


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