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Team Members:

Puttoo Chitra Petit Vanessa Ramaully Nizaar Quirin Christelle Ramdass Dehishta Ramah Deveen

Introduction

ISO 9000 series is the best known example of quality standards ISO 9000 is regarded to be a key requirement to stay in business Registration of ISO 9000 is considered to provide companies with a competitive edge

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What is ISO 9000?


ISO 9000 series is a set of international quality standards. ISSUE: 1 It establishes and maintains quality management and quality assurance systems in organizations

ISSUE: 2 ISO 9000 deals with systems (processes) in which products are produced NOT with the technical specifications of product (Marquart, 1992)

ISSUE: 3 Processes the need to improve ISO 9000 standards also focus on continuous improvement and adaptation of quality systems (Williams, 1997).

ISSUE: 4 ISO 9000 standards give rise to an opportunity to assess a suppliers goods and services, in so doing quality assurance about the supplier's ability is given to customers (Lofgren, 1991).

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Historical Background of ISO 9000

1979 - 1st publication of the quality management standard BS 5750, issued by the British Standards Institute 1987 - The BS 5750 had been modified and accepted as the international standard ISO 9000 1994 - 1st Revision of ISO 9000 occurred. 2000 - 2nd Revision of ISO 9000 2008 - 3rd and the last Revision till date

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ISO 9000 PRINCIPLES

8 Management Principles
1.

2.
3. 4. 5. 6. 7. 8.

Customer Focus Leadership Involvement of People Process Approach System Approach to Management Continual Improvement Factual Approach to Decision-Making Mutually beneficial supplier relationship

Principle 1: Customer Focus

Since organisations depend on their customers, they should strive innovate and create value for them with the aim of enhancing their level of satisfaction.

Achievable if organisations strive to:

Understand current and future customer needs Meet customer requirements Exceed customer expectations

Ensure that the objectives of the organisation are linked to customer


needs and expectations

Measuring customer satisfaction and acting on the results Systematically managing customer relationship

Benefits

Increased in revenue and market share Effective use of organisations resources

Improvement in customer loyalty

Principle 2: Leadership

Leaders should establish and maintain a healthy internal environment in which people can become fully involved in achieving the organisations objectives

Achievable if leaders:

Consider the needs of all interested parties including customers, owners, employees, suppliers, local communities and society as a whole Establish a clear vision of organisations future Set challenging goals and targets Create and sustain shared values, fairness and ethical role models at all levels of the organisation

Benefits

Employees will understand and will be motivated towards the organisations goals and objectives Miscommunication between levels of organisations will be minimized Activities will be evaluated , aligned and implemented in a unified way.

Principle 3: Involvement of People

Involvement of people at all levels is the essence of all organisations since they contribute to the organisation success.

This principle implies that senior managers should:

Make people understand the importance of their contribution and role in the organisation Help employees to identify constraints to their performance Provide their staff the opportunity to enhance their competence, knowledge and experience Encourage team work and brainstorming

Benefits

Committed, motivated and involved within the organisation Draw satisfaction out of their work Demonstrate innovation and creativity in furthering the organisations objectives Eager to participate in and contribute to continual improvement `

Principle 4: Process Approach

The desired result is more efficiently achieved when activities and related resources are managed as a process

Input

Process

Output

Results can be achievable by:

Defining systematically the activities that are necessary to obtain a desired result Establish clear responsibility and accountability for managing key activites Focusing on the facors such as resources, methods and materials that will improve key activities of organisation Evaluating risks, consequences, impacts of activities on customer, supplier and other interested parties

Benefits

Help the organisation to lower costs Improved consistent and predictable results Focused and emphasized opportunities

Principle 5: System Approach to Management

Defining a system by identifying and developing a process that affect a given objective

The viability of this principle depend on the:

Structure of the system to achieve the organisations objectives in the most effective and efficient way Ability to understand the interpendencies between the processes of the system Continuous improvement of the system through measurement and evaluation

Benefits

Increase effectiveness and efficiency of the organisation Enable the organisation to focus effort on the key processes Integrate and align key processes in order to get best results

Principle 6: Continual Improvement

Continual improvement of the organization's overall performance should be a permanent objective of an organization that wishes to succeed and excel within its marketplace.

Achievable by:

Providing employees with training in the methods and tools of continual improvement which includes PDCA Cycle, problem solving, quality circles and kaizen Making continual improvement of products, processes and systems, an objective for every individual in the organisation Establishing goals to guide, measures to track continual improvement Recognising and acknowledging improvements

Benefits

Boost the organisations overall performance and its liquidity position Help the organisation to gain competitive advantage Flexibility to react quickly to opportunities

Principle 7: Factual Approach to decision making

Organisations manage the information, make decisions and take actions based on results of logical analysis.

This principle is largely dependent on the :

Accuracy and reliability of data and information Accessibility of data to those who need it Methods used to analyse data and information

Benefits

An increased ability to demonstrate the effectiveness of past decisions through reference to factual records. Increased ability to review, challenge and change opinions and decisions

Principle 8: Mutually beneficial supplier relationships

create competitive advantage through the development of strategic alliances or partnership with suppliers

Realistic if senior managers:

Establish relationships that balance shortterm gains with long term considerations Identify and select key suppliers Provide clear and open communication Share information and future plans

Benefits

Increased ability to create value to both parties Help the organisation to optimise resources and costs Increase its flexibility and speed to respond to customer needs, expectations and market changes

Steps Towards ISO Certification

Top management commitment Appointing the management representative Creating awareness of ISO Appoint an implementation team Training Time schedule Select element owners Review the present system Write the documents Install the new system Internal Audit Management review Registration

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Top Management Commitment


Support from the CEO and senior management

Appointing the Management Representative


Management representative Coordinate the implementation and maintenance of the quality system Each organization can design its own system that fits its specific needs and that fits the general requirements of the ISO standards Singels et al.
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Creating Awareness

Awareness of employees Quality culture Shift from traditional to quality-oriented organization

Appointing an Implementation Team

Integration of the quality framework at Operational,

Tactical, and Strategic levels Members from every departments and hierarchies of the organization.

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Training

Gain relevant skills and competencies to implement change Seminars

On the job training

Time Schedule

Time taken to implement quality system in the organization Time taken to complete registration procedures for ISO Vary according to size of the organization.

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Select Element Owners

Selected by members of implementation team Responsible for one or more system elements Ensure good implementation of elements of quality system Review the Present System Identify gaps between actual and future quality products Indication for improvement

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Write the Documents

Documents Quality policy and procedure manuals Companys policies Procedures records Work instructions The documents should be: Simple to read and understand Effectively applied to the day-to-day processes Too much documentation or complicated documentation will destroy the system Besterfield et al.

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Install the New System

Integration of policies, procedures and work instructions

Internal Audit

Assess the extent to which quality standards are met by the organization

Indicate room for improvement

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Management Review Assess efficiency and effectiveness of quality system


Review Input

Review Output

Systems performance Customer feedback Product and process performance Audit results Corrective actions Preventive actions

Improvement of effectiveness of the QMS and processes Improvement in the product related to customer requirement Resource needs

Registration

Choose a registrar Submit an application Conduct the registrars system audit

E.g., Mauritius Standards Bureau (MSB)

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CLAUSES FOR ISO 9000:2000


1. Scope 2. Normative references 3. Terms & Definitions 4. QMS 5. Management Responsibility 6. Resource Management

7. Product Realisation
8. Measurement, Analysis and Improvement
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1. SCOPE
2. NORMATIVE REFERENCES 3. TERMS AND DEFINITIONS

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4. What is a Quality Management System (QMS)?


It is a series of components, logically linked, that when taken together, give an organisation the controls and measures it needs to manage and improve how it produces product (Persse, 2006).

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4.2 DOCUMENTATION PROCESS:

QUALITY MANUAL
CONTROLS OF DOCUMENTS (also called, the Document Functions) CONTROL OF RECORDS

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The Documentation Pyramid

Policy

Procedures

Work Instruction Records

5. MANAGEMENT RESPONSIBILITY
Management Commitment
Customer focus

Quality policy

Planning

Responsibility, Authority & Communication

Quality Objectives

QMS Planning

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5.5 RESPONSIBILITY, AUTHORITY, AND COMMUNICATION

RESPONSIBILITY AND AUTHORITY


MANAGEMENT REPRESENTATIVE INTERNAL COMMUNICATION

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COMMUNICATION Communication process should be established to communicate the following:

The vision, mission and values of the organisation Operating policies The corporate objectives Plans for entering new markets, for new products and processes and for improvement Customer requirements, regulations and statutory requirements Product and process objectives Product and process information Problems Progress
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COMMUNICATION

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6. RESOURCE MANAGEMENT

PROVISION OF RESOURCE (people, suppliers, financial, natural, etc...) HUMAN RESOURCE (Competence, Awareness and Training) INFRASTRUCTURE
WORK ENVIRONMENT
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7. PRODUCT REALISATION

The steps for the Product Realisation are as follows:

PRODUCT REALISATION 1. Planning of Product Realisation 2. Customer - Related Processes


3. Design and Development 4. Purchasing 5. Production and Service Provision 6. Control of monitoring and measuring devices
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7.1 PLANNNING OF PRODUCT REALISATION


In planning the product realisation, the organisation shall decide on:

The Quality Objectives The need to establish the processes, documents and provide resources particular to the product

Required verification, validation, monitoring, inspection and test activities specific to the product and its criteria for

acceptance; and

Needed records to prove that the realisation processes and the resulting product or service meet requirements.
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7.2 Customer - Related Processes


It consists of three segments:

Determination of the requirements related to the product Review of requirements related to the product Customer Communication

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7.3 DESIGN & DEVELOPMENT


During the process of Design & Development, the organisation must determine the following criteria :
The

D&D stages

The

review, verification and validation which are appropriate to each D&D stage, and
The

responsibilities and authorities for D&D


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7.4 PURCHASING
3 key processes which are involved in the purchasing process:
Purchasing

process

Purchasing

information
of the purchased product

Verification

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7.5 PRODUCTION & SERVICE PROVISION


This can be cascaded into 5 phases which are as follows: Control of production and Service Provision Validation of processes for production and service provision Identification and traceability Customer property Preservation of Product

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7.6 CONTROL OF MONITORING AND MEASURING SERVICES

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8. MEASURING, ANALYSIS, AND IMPROVEMENT


The monitoring and measurement process lays emphasis on 4 things:
Customer Internal

Satisfaction

Audit

Monitoring Monitoring

and Measurement of Processes


and measurement of Product and

Service
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MEASURING: Control of nonconforming product


The organisation can deal with non conformity of products by:

1. Taking action to get rid of the detected nonconformity;


2. Authorising its use or release under concession; 3. Taking action to stop its original intended use or application.
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Improvement can be presented in 3 forms:

Improvement

Continual Improvement

Corrective Action
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Prevention Action
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Reasons and Benefits of ISO Certification

Rayner and Porter (1991): 20 SMEs 70% - marketing advantages as the principal benefits Street and Fernie (1992): 52 certificated Scottish manufacturers 1/3 - growth in the customer base - increased sales
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Mann and Kehoe (1994): ISO 9000 had greater impact on business performance but less impact than TQM.
Prasad and Naidus (1994): 870 small and medium sized American exporters competitive advantage

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Taylor (1995): senior executives in 115 ISO 9000 registered businesses in Northern Ireland 30 - pressure from customers
Terziovski et al (1995): no link between ISO 9000 certification and customer satisfaction

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Vloeberghs and Bellens (1996): Belgian certificate-holders greater client trust


Straw (1988): metal finishing industry repeat business and a steady increase in new business

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Institute of Quality Assurance (1991): 502 responded to survey 75% - improvements in product/service
Anon (1993): US and Canadian chemical industry 25% - customer demands and expectations as the most important reason for seeking registration 24.5% - enhanced customer satisfaction

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Brown and van der Wieles (1995): Western Australia pressure from customers was the primary motivation for seeking certification benefits experienced were improved quality awareness, improved awareness of problems, improved management control and improved customer service.

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Veritas Labs (1996): 48 certificated companies in the New York primary reason for seeking certification was pressure from existing customers increased employee motivation and personal accountability for job performance

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Reasons for Purchasing ISO 9000 Certification and ranked as per the most popular reason

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Francis Buttle (1996) also analyzed the benefits of ISO 9000 Certification

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Benefits of ISO 9000 Certification in 3 terms

Improvement: (e.g., rank 1-3) ISO 9000 is an excellent tool to develop a strong foundation of good processes and systems Marketing: (e.g. rank 4-6) ISO 9000 certification can effectively be used in marketing as it is a well-recognized standard for quality Customer Requirements: (e.g. rank 19) if your company provides products or services to other companies

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Whats wrong with ISO 9000?

Buttle (1996) identified eight major disappointments with becoming ISO 9000 certified. The main one cited was the time requirement to write the associated manuals high cost of implementation came a close second Once it was implemented, the highest ranked was the high cost of maintaining the standard, closely followed by the high volume of paper work.

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Stevenson and Barnes (2001) suggested the following problems with the standard:

unnecessary paper work cost (time, training, consultants, and registration) may never actually be recovered interfere with new and better ways of operating not industry-specific
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Some disappointments with ISO 9000 as identified by Douglas et al (2003):

Business not increased as much as expected Number of customer quality audits still conducted High costs involved

Increased complex paper work


Number of questionnaires still have to be complete

The standard offers no added value to the organization


Lack of emphasis on continuous improvement, among others.
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Despite offering a number of benefits, ISO 9000 did not meet user expectation in a number of areas, including reduction in cost and waste
Certification bodies exaggerating claims for the standard and thereby setting expectations at too high a level than with the standard underperforming

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CONCLUSION

THANK YOU FOR YOUR KIND ATTENTION !


Any question?

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