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SUITABILITY of ISO 9000 & TQM Quality IN unrest PART-I Compiled by M.Karikalan, L&T-TPPC, e-mail karikalan@y7mail
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Page 1: SUITABILITY OF ISO 9000 & TQM

SUITABILITY of ISO 9000 & TQM

Quality

IN

unrest

PART-I

Compiled by

M.Karikalan, L&T-TPPC, e-mail karikalan@y7mail

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2

Quality

IN

Unrest

PART-I

SUITABILITY OF ISO 9000 & TQM

Nov. 2014

Edition- 01

This presentation and the information, both in print and verbalized, are solely the views and opinions of the author.

M.Karikalan

# 12,SIVA VISHNU KOIL STREET,

M.G.R NAGAR,

CHENNAI,

TAMILNADU STATE,

INDIA.

PIN CODE- 600078

e-mail : [email protected]

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3

Dedication

This compiled book is affectionately dedicated to Mr. P.Sivasankaran (QM-Head,L&T-TPPC)

& Mr. G.Kannappan (Senior Manager-QM,L&T-TPPC).

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Enormous THANKS TO :

Mr.ABIMANIU PAKKI (L&T-TPPC)

Mr.P.PURNACHANDRAN (L&T-ECC)

Mr.R.RAMACHANDRAN (L&T-TPPC)

Mr.G.K.VENGATESH (Al Asab General Contracting Est)

Mr.P.SIVANASEN (Dynemic engineering services)

Mr.Mr.VIJAY RAJASEKARAPPA (L&T-TPPC)

Mr.SANDIPD SHAH (L&T POWER-EPC)

Mr.GAURAV KATYAL (L&T POWER-EPC)

Mr.SUMIT GURAYA (L&T POWER-EPC)

Mr.RAJESH CHOWLA (L&T-TPPC)

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Leadership is achieved, not ascribed [1]

CONSTRUCT AWARENESS

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Hill (1991) wrote that this [10] shortfall lay not with technical aspects, but with the "lacunae in the treatment of the social factors". TQM is more than technical issues relating to the quality of products and processes. It is a management process involving everyone in the organisation working together to continually improve every aspect of the organisation's quality to achieve

customer satisfaction. It is not a goal but a way of life for everyone in the organisation.

Askey and Dale (1994) and Bradley (1994) state that ISO 9000 can provide the basis for the development of a road map for TQM. Further research by Majerczyk and DeRosa (1994) identified one of the major benefits of adopting ISO 9000 as the common sense approach for building a TQM foundation.

. Quality never happens by mistake,

it is always the result of

intelligent effort.

(unknown)

DEMING AS POINTED OUT THE FOLLOWING NOTE:

Total Quality Management. Deming also states that 85% of quality

problems are caused by systems, procedures, or management, and only

15% of quality problems are caused by bad workmanship . Blaming

workers is not the way to cure quality problems. Incidentally, the 85% of

quality problems attributable to management includes problems traceable

to weaknesses or errors in the product design.

---W.E. Deming, Out of the Crisis, Massachusetts Institute of Technology, 1986

[Source : Metals Handbook Desk Edition, Second Edition was published in 1998,P267.]

Objectives

The objective of this compiled book is to support for understanding the Standard based quality,Total quality concepts. In this book, I have tried to provide the actual need of Quality to understanding ,Standard based quality,Total quality concepts with the help of expert’s book. I

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hope that This compilied book is usefull to make a better understanding to operators, supervisors, inspectors and engineers in the construction field (Blue-collar to Direct Leadership).

Would like to share with you the following story:

...........the administrator [1] often will not know what to do and thus cannot

be expected to tell the subordinate what to do, much less judge the work

after the fact. '' Often, the same is true in the private sector.

Many years ago the late French humorist Fernand Reynauld told the

following story. A man is hired by a vendor to sell oranges at a stand in an

outdoor public market. On his first day on the job our newly hired orange

salesman notices that despite his various attempts to attract the attention of

shoppers, no one bothers to even look at his oranges. He is just about ready

to give up when he notices, hidden behind some rags, a slate and some

chalk. "I've got it," he cried with joy, "I'll write a sign. But what to write?"

After giving it some thought our salesman, who was no Shakespeare, writes

the following words:

"Sold here beautiful oranges for cheap."

Proud of his newly acquired marketing skills, the man carefully places the

sign atop his oranges. Moments later the owner happens to walk by the

stand. He stops and carefully reads the sign aloud, pausing on every word:

"Sold here beautiful oranges for cheap."

Owner: What is the meaning of that sign?

Salesman: I am trying to promote your oranges.

Owner: Hum, what do you mean by "here," you are not selling oranges over

there, are you? Why do you need the word "here"?

Salesman: You are right, I did not think about that. The word "here" is kind

of redundant, I'll erase it. (The salesman reaches for a rag and erases the

word "here.")

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Owner: Are the oranges rotten?

Salesman: No, of course they are very nice oranges.

Owner: So why do you have the word "beautiful"? Customers can see that

these are beautiful oranges.

Salesman: You are right. I'll erase "beautiful."

Owner: Do you intend on giving away your oranges?

Salesman: No, of course not!

Owner: So why do you need the word "sold"?

Salesman: Yeah, that's true. (Proceeds to erase the word "sold.")

Owner: Why say "for cheap"? These are very nice oranges, you don't want

people to think that they are cheap oranges do you?

Salesman: Of course not! (Erases the words "for cheap.")

Owner: Are you selling bananas?

Salesman (without saying a word erases the last word on his sign and says

to the owner): I think I'll go sell fish.

Owner: Why is that?

Salesman: At least you can smell it.

We could be Remembe this story in our understanding

M.Karikalan.

TABLE OT CONTENTS

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1.0) Introduction

2.0) Conclusion

3.0) Standard based quality

5)The complementarity between total quality and standards-based quality

6)The horizontal and vertical dimensions of quality

7)The ISO 9000 standards

8)FACTS ABOUT THE CHANGES – ISO 9001 : 2008

9)benefits

9a)Tangible benefits

9b) Intangible benefits

9c)Improved employee motivation

9d)Improved working procedures

10)The relation between TQM and ISO 9000

11)Conclusion

1) INTRODUCTION : CHARACTERISTIC OF THE

CONSTRUCTION INDUSTRY

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The construction [12] industry has numerous problems because of its

complicated nature of operation (Kanji and Wong, 1998). This industry is

comprised of a multitude of occupations, professions and organizations

(Wong and Fung, 1999; Kanji and Wong, 1998; Sommerville, 1994). They

are involved in the different phases of a construction project, which,

include: feasibility, development, finance, concept development and

review, estimate, detailed engineering, procurement, construction and

start-up (Schultzel and Unruh, 1996). The client, consultants, contractor

and sub-contractors of a construction project all have a role to play in

delivering a quality project. Failure of any of the parties will seriously

affect the quality of the final project (Kanji and Wong. 1998).

Rowlinson and Walker (1995) point out that the construction industry

is also characterized by its non-standardization. Production processes

are to some extent different from one another. Hence, no universal

standard or specification can be applied to the product, which leads to

difficulties in quality assurance. Furthermore there are excessive changes

to the details of the design of a project are typical throughout the

construction process. They may be attributed to the lack of build ability

of the design produced or variations by the contractors for the sake of

speed and cost of production. Quality is often at risk because of the

excessive changes (Kanji and Wong, 1998).

APPROACH OF MANAGERS-AN OVERVIEW

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In a survey of over 2,500 managers, in a five-country[16] study, England (1978)

found a high degree of pragmatism amongst the managers in all countries except

India where moralistic emphasis of the managers of the 1960s and 1970s contrasted

sharply with the contemporary management scene elsewhere. The results of the

England study suggested that Indian managers paid much more importance to

organisational stability than the managers from other countries. For instance,

compared with US managers, Indian managers attached more importance

to employee welfare than to the goal of profit maximisation. England’s

findings also showed that the Indian managers more consistently valued obedience

and conformity and, subsequently, it was contended that Indian managers were

strongly against any value that signified change and innovation (Sinha, 1990).

………For many Indian managers, cross vergence means that the modern

technological and globalized world does, in fact, exist, but does not extend beyond

the boundaries of their professional role.

…..Another impact of liberalization and the greater involvement of MNCs is an

increased level of competition of Indian firms with the MNCs. This has raised

concerns about total quality management, workforce skills and pressure to

change from indigenous, costly and probably less effective technology to more

effective technology applications (Sparrow and Budhwar, 1996).

……….to have been able to build on the cultural characteristics of their people and

incorporate them into their organizational culture: quality circles thrive on

collectivism (Tayeb, 1990), ringi decision making cushions employees against

individual risk taking

(Hofstede, 1980), and close management-subordinate relationships provide an

atmosphere of emotional support (Tung, 1984, 1988). Indian managers do not

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appear to have succeeded in incorporating the cultural Characteristics of their

employees into their organizational culture.

2) CONCLUSION

Nowadays, there is a series of changes in continuously . Because, corporate

social responsibility,Total quality management concept, implementation of ISO

9000 and development of small scale industries is upwards. it creates a good

changes in our indian industries mindset. Managers from Indian organization are

open and upfront with subordinates and management. Employer treats their employee

fairly.Employee believe their employer’s motives and intentions are good. Employee

believes their employer’s motives and intentions are good.

CONTI (2007), ONE OF THE FATHERS OF THE EUROPEAN MODEL OF EXCELLENCE POINTED THE FOLLOWING,

3) STANDARDS-BASED QUALITY (ISO 9000) Standards are usually[2] intended to safeguard the interests of users:

consumers, industrial users, the community. Quality standards first

developed in the military field as a means of guaranteeing the quality of

supplies, and were soon adopted in the space, nuclear and energy

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industries and in the area of large scale procurements. As the US Military

Standards (MIL) became more familiar, they, or conceptually similar

standards catering for specific requirements, spread rapidly to a growing

number of sectors in the vast area of contractual purchase transactions, in

particular Original Equipment Manufacturer (OEM) supply agreements.

Standards were regarded as means of ensuring the quality of the goods

acquired. Quality standards were originally concerned with the object of

the purchase transaction, the product. They covered particular

requirements (safety, disturbance of the environment, resistance to

environmental forces, etc.), defectiveness on delivery (AQL) or during use

(reliability) and methods of measurement.

The principle is: assess the company's entire product quality management

and assurance system to obtain the maximum guarantee of the quality of

supplies.

4)QUALITY AS PERCEIVED BY THE PURCHASER AND BY

THE SUPPLIER

Given their origin, the standards-based quality culture and approach are

inevitably geared to the viewpoint of the purchaser. Equally inevitably, the

supplier tends to adopt a reactive attitude, supplying what is required and

nothing more, and simply 'passing the test' as regards assessment of his

quality assurance system by the customer or a third party. The supplier's

main concern is to meet his targets, there will be time for continuous

improvement later (these are extreme cases, used to highlight the type of

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attitude induced by standards; exceptions obviously exist, particularly now

that this attitude has been countered by a competitive view of quality)

In some ways, the development of the standards used for quality systems,

for example ISO 9000/EN 29000, is certainly a step towards total quality

(and forthcoming developments will move even further in this direction):

their systemic perspective and responsibility attribution model confirm this.

So does the incorporation in the standards system of a 'guide' to the

construction of the quality system (ISO 9004), which approaches quality

from the viewpoint of the supplier and is not linked to a contractual type of

relationship. But although quality system standards play a fundamental

role in relation to contractual relationships, in eliminating technical

obstacles to international trade and in spreading a basic quality culture,

they cannot nor should they claim to embrace the competitive aspects of

quality.

The translation of the basic concepts of total quality into corporate culture

and attitudes involves, in fact, company characteristics that, for the most

part, are intangible and therefore cannot be assessed in objective terms. A

reference model can be constructed, but the model cannot be frozen into a

standard, nor can its implementation be monitored with checklists to give

the assessor a sufficient degree of confidence about the company's

capabilities in terms of results.

Total quality, moreover, is dynamic, while a standard, by definition, is

static, even though it may be part of a sequence of steps designed to keep

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pace with a constantly changing scenario (Fig.QS-1). The belief held by

many people today that total quality and standards-based quality can be

combined into a single vision is unworkable; it is also pointless, since each

has its own role to play. Total quality is a proactive view of quality, the

view adopted by the supplier who, in the continuous search for competitive

differentials, regards standards, or any established result, as the threshold

for entry into the competitive arena: but real competition is open, it has no

fixed points of reference and is based solely on the supplier's ability

continuously to improve his performance. The standards-based view of

quality has developed from the conventional viewpoint of the purchaser

and cannot be entirely separated from its origins - and this is just as well.

The ISO 9000 development guidelines laid down by the ISO TC 176

committee for the 1990s (Marquardt et al., 1991) provide, correctly, for

diversifications at the level of the product (hardware, software, materials,

service). This approach is concerned with the purchase transaction, of

which the product is the object. An approach that focuses on the product -

and to that end provides for the assessment of the system that creates,

distributes and supports that product - is the correct approach for a

standard, whose primary aim is to safeguard the interests of users:

• the individual user, who is not particularly interested in the supplier's

view of total quality, but wants the maximum guarantee that he will be

supplied with 'good' products (and products that are 'originally good',

generated by processes that naturally create good products);

• the community, as regards personal safety, protection of the environment

and the economic importance of standards in international trade.

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5)THE COMPLEMENTARITY BETWEEN TOTAL QUALITY AND

STANDARDS-BASED QUALITY

Instead of trying to blend the two approaches to quality into an unlikely

combination (apart from anything else, this would only undermine

standards, which need a certain period of stability to realise their full

potential and therefore cannot match the rapid conceptual development of

total quality), it is better to

emphasise their complementarily, optimising each approach in relation to

its specific objectives and guaranteeing consistency between the two. Total

quality - or competitive quality – is important because it is closely linked

with the principles of competitiveness and the free market. Once quality

has been identified as a competitive factor (at the double level of quality of

goals and quality of execution), corporate creativity has no limit, it cannot

be regulated or even guided by standards.

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Standards, as has been seen, play a fundamental role. They mark the

consolidated stages of competitive development for the benefit of the

individual or community user. They represent platforms (the steps in

Fig.QS-1) on which suppliers with no contractual obligations can freely

build, and on which suppliers with contractual obligations can build in

'partnership with their customers. In both cases, the

platform is a basic level that can be required of any supplier who enters the

competitive arena, particularly the international marketplace, or of

suppliers of companies competing on international marketplaces. But the

fundamental role of standards,. today, is also related to the fact that our

industrial culture - at least in the West - is still predominantly reactive as far

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as quality is concerned. The maximum attention must be given to total

quality as the direction in which we should be moving - and fast - but it

would be wrong to act as though total quality were already a reality, as if

all suppliers today adopted a proactive approach.

The international ISO 9000 standards therefore playa strategically

important role today: for users, they guarantee that the supplier conforms

to fundamental product quality assurance requirements; for suppliers, they

provide a univocal point of reference (as long as a proliferation of variations

is avoided:

some may be justified by the inadequacy of standards, but others are based

on the mistaken assumption that they are following the moving target of

total quality).

Standards are strategically important also as a vehicle for spreading a

quality culture and basic quality tools to the myriad small/medium-sized

businesses that form the backbone of many economic systems. Many of

these companies know how to generate quality, but do not possess the

cultural tools to optimise quality and costs simultaneously, to communicate

on equal terms with their customers or to approach international

marketplaces. Standards also play a strategic role in helping to eliminate

the technical barriers that impede the free circulation of goods on

international markets.

6)THE HORIZONTAL AND VERTICAL DIMENSIONS OF QUALITY

The emphasis on the role of standards in a book on total quality is

necessary to avoid misunderstandings: the risk always exists that a

deliberate focus on a particular aspect will be interpreted as a de-emphasis

of other aspects. It also prevents misinterpretation of two expressions – the

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horizontal dimension and the vertical dimension of quality - which refer

respectively to standards and to total quality. In Fig.QS-2, standards are

placed on the horizontal planes, with each plane corresponding to a step in

Fig. QS-1. Standards are considered as a horizontal dimension because:

• they are basic platforms;

• they remain constant until they are replaced by new standards;

• conformity with standards is a prerequisite for competition, not a

competitive differential. Standards are the basis on which competitive

'pluses' are built.

Standards are intended for the widest possible diffusion, preferably

without variations, across all product/market sectors and all countries.

Total quality is considered as a vertical dimension because:

• it is a competitive dimension with no limits;

• it has no reference specifications or levels;

• the 'state of the art' evolves continually.

Some people insist that standards give a competitive advantage.For a

company at a lower level, reaching the standard level is clearly a significant

step forward; but since the standard is clearly defined and within the reach

of the average company - as it should be - it is more appropriate to regard

standardsconformity - and certification in particular - as a 'preliminary

qualification' for entering the real quality competition.

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This is the situation for individual companies. In the case of an economic

system, bringing the majority of small/medium businesses to a standard

level could constitute a significant competitive advantage: not only would it

remove restrictions as far as exports are concerned, it would help spread a

basic quality culture through the business community. This is a major

opportunity for Europe today. It should be clear, however, that for the

individual company the real competitive advantages over the

medium/long term can only come through competitive differentiation,

in other words, through the vertical dimension of quality. Unless

companies move beyond standards and adopt a proactive approach aimed

at achieving maximum value for users, they will be unable to compete with

or even act as suppliers to Japanese companies, which have been applying

Keizen - continuous improvement of all company activities - for years, or to

the Western companies who are following their example.

The vertical dimension is best suited to companies producing goods and

services for a market of potential users who are not individually known

beforehand, but whose individual requirements must be satisfied if they are

to be won over.

The horizontal dimension is best suited to companies that work on a

contractual 'customer/supplier' basis, where the main problem is to meet

specifications and standards to ensure conformity with the user's

requirements.

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It is no coincidence that Japan and the West have diverging views of

quality. As Professor Kume (1990) notes, Japan's main concern after the

Second World War was to export, above all to export large volumes of

goods whose level of quality would

guarantee their absorption by the market. Electronic consumer goods,

automobiles and cameras were manufactured not for large customers but

for the market. Quality levels therefore could not be agreed with the

customer beforehand, they had to

be the best possible - and improve all the time. This fostered the growth of a

proactive view of quality. The quality culture that evolved in the West, on

the other hand, was fostered chiefly by the MIL specifications and the

subsequent proliferation of standards. The view that quality means

conformity with standards is

still widespread, and certainly hinders the diffusion of a competitive

quality culture.

7)The ISO 9000 standards

The real importance of the ISO 9000 standards (EN 29000 in Europe) is that

they have produced a situation of international harmonisation, which

hopefully will be maintained despite the current shortcomings. Previously,

enormous differences existed between one country and another, one market

sector or one company and another, with significant costs both for

customers and suppliers.

One of the objections [30] is that standardization of work will destroy

creativity. Creative people in sales and product development especially use

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this argument. Another objection is that preparing standards is a

complicated and difficult job and, at the end of the day, the standards are

often not adhered to by the people concerned.

The problem of non-adherence is, in our view, caused by a lack of

understanding of what work standards should include and what should

not be included in the standards. The consequences may be that standards

are made too complicated and hence are very difficult both to follow and to

change. The standards act as barriers against continuous improvements

instead of supporting improvements.

It is important to realize that standards may be set in various ways but it is also

important—and may be more important—to realize that standards usually

include the following three items (Kondo, 1991):

1. The objective of the work: taking a production process as an example, this

includes the quality specifications or quality standards for the intermediate

or final products which must be made in the process.

2. Constraints on carrying out the work: these consist of restrictions which

must be adhered to in performing the work; items which ensure the safety

of employees or assure product quality are the most important of these.

3. The means and methods to be employed in performing the work. Item 1.

above must always be achieved and therefore it is important to include this

item in the work standard. Therefore it is also important to check and

discuss the objectives of the many different processes production as well as

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supporting processes—to secure that the objectives are existing, understood

and accepted. In too many cases objectives are not existing, not understood

and not accepted by the people responsible for the work or the people do

not understand the objective and the relationship to items 2. and 3. above.

Item 2. must always be obeyed or adhered to by whoever is responsible for

doing the work. There are usually no objections to including in the work

standards items which ensure the safety of employees.

The objections may emerge on the items which have been included in order

to assure product quality. The problem may be that too many of these items

have been included in item 2. of the work standards and hence the workers

feel that too many restrictions have been put on them. They do not feel

responsibility because of the many restrictions and they feel that the work is

not easy to do. It is therefore obvious that we should consider these

constraints very carefully and we should strive to eliminate as many of

them as possible. The fewer the restrictions listed under item 2. the greater

the workers feel the degree of freedom and responsibility.

We need to work out as to[4] which standard is applicable to us, and adopt

it so as to get the benefits of the systems. It is advisable to have continuous

touch with the national body for standards, and get the information on the

amendments in standards from time to time. In India, Bureau of Indian

Standards provides the information on the changes in standards through

their periodicals.

Following are the standards referred in ISO 9001:2008:

1. ISO 9004 – Managing for the sustained success of an organization – A quality management approach.

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2. ISO 10001 – Quality Management – Customer Satisfaction – Guidelines for codes of conduct for

organizations.

3. ISO 10002 – Quality Management – Customer Satisfaction – Guidelines for complaint handling in

organizations.

4. ISO 10003 – Quality Management – Customer Satisfaction – Guidelines for dispute resolution external

to organizations.

5. ISO 10005 – Quality Management Systems – Guidelines for quality plans.

6. ISO 10006 – Quality Management Systems – Guidelines for quality management in projects.

7. ISO 10007 – Quality Management Systems – Guidelines for configuration management.

8. ISO 10012 – Measurement Management Systems – Requirements for measurement processes and

measuring equipments.

9. ISO 10013 – Guidelines for quality management system documentation.

10. ISO 10014 – Quality Management – Guidelines for realizing financial and economic benefits.

11. ISO 10015 – Guidelines for training.

12. ISO 10017 – Guidelines for statistical techniques.

13. ISO 10019 – Guidelines for selection of quality management system consultants and use of their

services.

14. ISO 14001 – Environmental management Systems – Requirements with guidance for use.

15. ISO 19011 – Guidelines for quality and/or environmental management systems auditing.

16. IEC 60300-1, Dependability management – Part I, Dependability management systems.

17. IEC 61160 – Design review.

18. ISO/IEC 90003 – Software engineering – Guidelines for the application of ISO 9001 to computer

software.

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Five Tiers of Quality Management per ISO-9000 [11]

1. First Tier: The company should have a vision statement that calls

out quality as a goal. This is a quality policy. It is a document the

chief executive officer (CEO) and every other important officer signs.

2. Second Tier: The second tier is a quality manual that addresses all

the items and operations that can affect quality in the company operations.

All the topics in the ISO-9000 quality management standard must be

addressed.

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3. Third Tier: The third tier is a set of standard operating procedures

for every aspect of the company business and, in particular, for every

process that takes place in the company.

4. Fourth Tier: The fourth tier is a set of detailed work instructions for

operators to follow in running every process that goes on in the company.

Nothing is left to chance, education, or intelligence.

5. Fifth Tier: The fifth tier is a compendium of quality records in which

every operator writes down and acknowledges that the work instructions

were carried out daily. Records of other variables such as temperature,

humidity, brown-out voltages, and every conceivable perturbation would

also be recorded. These records are to be available for internal and external

audits to show that the instructions were carried out continuously.

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Legend : QCC-Quality control circle

Figure .Quality.1 [3]

For Information.: NASA (in their capacity[7] as controlling body for the US Space Program and with their requirement for the highest level of equipment reliability) was the first to produce a set of procedures, specifications and requirements. These became to be known as Military Specifications (Mil Specs) and manufacturers and suppliers, regardless of their size, were required to conform to these requirements if they wanted to provide equipment for this lucrative military market.

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ISO 9001 AND ISO 9004-GOVERNANCE AND PERFORMANCE EXCELLENCE

MODEL

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Table.ISO-1 is an outline[8] of the core requirements as specific responsibilities

whose accomplishment can be measured. A cursory look at the figure

shows that ISO 9001 is indeed descriptive of operations. Study of the

requirements reveals that the Standard is a comprehensive management

model. Several of the entries are supplemented by the guidelines of ISO

9004 in order to enable ISO 9001 to be useful for strategic assignments. For

example, Clause 6.4, Suppliers and Partnerships, describes an essential

consideration in this age of outsourcing. Unfortunately, the

clause numbering system of the latest version of ISO 9004 (2009), previously

correlated to that of ISO 9001, is now completely unrelated and introduces

an unnecessary confusion and inability to associate the two. Indeed, the two

standards seem uncorrelated in subject matter also, as ISO 9004 takes on

areas of concern completely out of context with ISO 9001.

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Table.ISO-1

From the legal point of view, documentation is a major asset of ISO

9001 because it provides records and describes internal controls. There

is a cycle of paperwork in all business transactions: sales orders, purchase

orders, job orders, and delivery orders. Figure 6-2 shows this cycle as it

might apply to manufacturing. Various records are used in this cycle for

customer requirements, design specifications, parts and materials,

fabrication and assembly, test and inspection, and handling and packaging.

This documentation defines a paper trail from customer expectations to

delivery. If customer dissatisfaction leads to litigation (legal action), this

paper trail(trace) will prove valuable to the defence from the perspective

( point of view ) of records and controls. Documentation reduces the risk

of liability.

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Of course, the documented system must be properly implemented. James

Kolka, an internationally known attorney specializing in standards

compliance, writes that ISO 9001 is a double- edged sword in litigation. It

could be used by the defense in the event of a lawsuit, but the outcome

depends upon the quality of the system and the quality of the paper trail.

He writes, “The good news about ISO 9000 is that you have the paper trail

in the event of a lawsuit and the bad news about ISO 9000 is that you have

the paper trail in event of a lawsuit.”

If a performer has a malfunctioning quality system traceable to

management misfeasance, the prosecution can use such evidence against

the defence. Conversely, if the paper trail reveals good business practices

and internal controls, the defense can use such evidence to demonstrate

prudent performance, thus reducing the risk of liability.

Quality and reliability of product are statistical properties. The probability

of failure of any product, no matter how good, is not zero. It is always

possible for a product, one of many, to fail. Producers know this and so do

judges. A “rare event” plea can carry weight in a single failure. Even when

great damage is done, negligence may be difficult to prove. But if the

operations that made the failed product are at fault,

there may well be systemic failure. This means the producer has no idea of

the quality of its products and strict liability or negligence can be more

easily established.

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Hence, the paper trail [47]will reveal a performer’s state of affairs one way

or another. A partial list of the documentation in a paper trail of business is

worth considering, in order to get a flavor of issues that might seem

bureaucratic to the efficiency expert, but that may be absolutely necessary

to the investigator:

• Authorizations • Measurements

• Change orders • Policies and procedures

• Contracts • Purchase orders

• Criteria and tolerances • Retention periods

• Delivery orders • Signatures

• Dispositions • Test and inspection

results

• Job orders • Traceability

Writing of the standards [8] known as ISO 9000:2008, …commented that

ISO 9004 is advisory only. Because ISO 9001 has contractual requirements,

many companies seeking ISO 9001 certification implement only this single

standard and more or less ignore ISO 9004. This short sightedness is at the

heart of a long held criticism: ISO 9001 is strong on form and weak on

substance. But the effectiveness of the Standard depends upon how well it

is implemented.

Moreover, the contractual status of ISO 9004 may be underestimated. In the

United States, guidance standards such as ISO 9000 and ISO 9004 are

viewed as components of a series along with ISO 9001 that can be used to

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33

examine issues such as product safety. Guidance documents that are part of

a series can be used to establish a company’s “due diligence” and “duty of

care” and can be used by courts to establish evidence of negligence.8 Even

though ISO 9004 is not contractual, a plaintiff could argue that it should be

reflected in the QMS of any company registering to ISO 9001 as a set of

good business practices.

According to Jack West, chairman of the U.S. Technical Advisory Group 176

and lead American delegate to the International Organization for

Standardization (2000), an enterprise needs both ISO 9001 and ISO 9004.

The first standard, ISO 9001, provides the form for governance. The second

standard, ISO 9004, provides a performance excellence model that can make

a company a world- class competitor. This is the substance of the ISO 9000

set of standards. West calls the two standardsa “consistent pair” that will

enhance market success.Thus, ISO 9001 is both a standard of governance

and, if fully complemented with ISO 9004, a standard of performance

excellence on a par with any other standard.

ISO 9000 is promoted [5]as a universal standard applicable to all types of

Organisations, in all sectors, large or small. However, it is thought to be

perfectly suited to organisations where there is a rather defined,

hierarchical or mechanistic structure as is evidenced in many

manufacturing sectors (Hazman and Jasmine (2009). The structural

dimensions (mechanic versus organic) and strategy orientation (control

versus creativity) of these companies might also influence the mainte-

-nance effectiveness of ISO 9000 in their companies. Hazman and Jasmine

(2009) suggest that the compatibility of the standard with the organisation

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34

structure might affect how these organisations maintain their ISO. They

then proposed a conceptual model of fit between ISO 9000 standard,

structure and management orientation. They suggest the following:

a. Perfect fit – The standard will be highly productive in sectors where the

primary managerial and organisational challenge is to reduce variation in

the process to achieve consistent customer outcomes. This is normally seen

in manufacturing sectors whereby control of operations is exercised by a set

of routine procedures in a defined, hierarchical or mechanistic structure.

Many low value added assembly operations and most record keeping

government agencies are exemplars of this quadrant.

b. Misfit 1 – The need for control as required by the standard will pull

organisations to fulfil the demand for control through greater

standardisation and institutionalis- - ation. This will result in organisations

being pulled into different directions. Many conflicts and tensions are

possible and frequent in sectors where control orientation is exercised

within a rather fluid or flexible structure. The ISO 9000 standard will not be

a good fit with the imperatives of this type of organisations. Examples of

organisations that fall under this quadrant are public universities and their

constituent units i.e. the faculties.

c. Perfect misfit – The ISO 9000 will be a perfect misfit for businesses and

industries where creativity and innovation is their primary strategy as they

need to institute highly flexible structures and practices. The normative

values of institutionalisation, documentation, systematisation and

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delineation embodied in the standard will militate against the need for

structural fluidity to stimulate innovation and creativity. This quadrant will

be populated by small to medium consultancies in all industries.

d. Misfit 2 – Organisations which have fairly mechanistic structures but

seek improvement through a highly managed process would find ISO 9000

quite friendly. Organisations that fall under this quadrant have very

defined and structured processes and systems but must constantly seek

improvement in their efficiency in order to stay competitive. Many

government agencies and contract manufacturers are in this quadrant as

the ills of the bureaucratic structure are overcome through a laboured and

limited process of improvement.

Spencer (1994) offered seven basic major doctrinal dimensions from which

an organisation can be identified whether it is mechanic or organic in

nature. The comparison of organisational models in relation to the seven

doctrinal dimensions of TQM is shown in Table.TQM.MO.1

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Figure.T6 shows the model for a quality[5] management system for service industries developed by Yang (2006).

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8)FACTS ABOUT THE CHANGES – ISO 9001 : 2008 [6]

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ISO 9001:2008 does not contain any new requirements

Technically called an amendment i.e.,

ISO 9001 : 2008 clause 4.1 GENERAL REQUIREMENTS

The Organization shall

a) Identy Determine the processes needed for the QMS and their application throughout the organization

e) Monitor, measure where applicable, and analyze these processes.

Note 2: When an organization chooses to outsource any process that affects

product conformity with to requirements, the organization shall control

over such processes. The type and extent of control to be applied to these

outsourced processes shall be defined within the QMS.

Note 3 Ensuring control over outsourced processes does not absolve the organization of the responsibility of conformity to all customer, statutory and regulatory requirements. The type and extent of control to be applied to the outsourced process can be influenced by factors such as

a)The potential impact of the outsourced process on the organization‟s capability to provide product that conforms to requirements

b)The degree to which the control for the process is shared

c)The capability of achieving the necessary control through the application of 7.4

ISO 9001 : 2008 clause 6.2 HUMAN RESOURCES

6.2.2 Competence, training, and awareness (changed the order) The organization shall

a) Determine the necessary competence for personnel performing work affecting product quality conformity to product requirements,

b) Where applicable, provide training or take other actions to satisfy these needs achieve the necessary competence. Ensure the effectiveness of the actions taken Ensure that the necessary competence has been achieved.

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9)benefits [17]

9a)Tangible benefits

The tangible benefits of ISO 9000 system implementation lower the internal

fixed and variable costs of an organization through increased efficiency and

improved quality of the company's operations. Examples of tan box 2.

These qualitative indications have been reported by a wide spectrum of

companies of different sizes and activities.

9b) Intangible benefits Intangible benefits include strategic considerations related to increased

competitiveness in new and existing markets, improved employee

motivation in a quality management culture, improved working conditions

due to the establishment of the quality system and the initiation of

systematic continuous improvement after certification has been achieved.

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Strategic considerations (markets). One of the most important intangible

benefits of an ISO 9000 quality system often involves enlarged market

accessibility and internal efficiencies, through which a company is able to

achieve a comparative advantage over its competitors.

Understandably, companies are hesitant to credit improved market share

solely to the ISO 9000 quality system. However, many organizations view

the implementation of an ISO 9000 quality system as a strategic planning

element in the medium-long term (Askey and Dale, 1994).

Market access is facilitated when the implementation of international

quality standards results in the increased confidence of economic agents or

regulators. Entering new markets and establishing subsidiaries is facilitated

if organizations have already voluntarily conformed to potential

requirements by showing good practices and overcoming technical barriers

to trade.

9c)Improved employee motivation. The ISO 9000 standards provide a basic

framework for implementing a quality management culture in which the

company's responsibility for its employees and clients and its concern for

its impact on society at large are central. By establishing a quality culture,

companies create an organization in which labour activity is not defined so

much in terms of the hierarchical structure of the organization as in terms

of one's contribution to the team (section, division, company). A recent

survey from Brazil indicates that ISO 9000 implementation tends to favour

aspects related to labour inputs in the production function of a company

(INMETRO/MICT, 1996). Guideline 4.18 requires that the company

identify, fulfil and evaluate the training needs of its employees. Human

resource development, together with clearly delegated traceable

responsibility, motivates personnel to participate in company affairs.

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43

Improved worker motivation has positive implications for the innovation of

a company's processes and quality of activities (i.e., continuous

improvement and consumer friendliness) and for the company's

productivity.

9d)Improved working procedures. Through the implementation of the

different requirements of the ISO 9004 standards, a company clearly defines

and documents its “way of doing things”. Establishing the quality system

documentation involves the evaluation of all company operations that may

affect quality. This may result in the following benefits. Decision making.

on quality issues is easier to control and involves more aspects of

management. The process of decision making becomes much more

formalized in a quality system because of the establishment of the

management review committee and quality system indicators.

Communication between different functional areas may be greatly

improved when the responsibilities of employees, work units and divisions

are clearly organized in the quality processes described in the quality

manual. Also, training familiarizes employees with TQM principals. Work

routines and conditions can become more effective, efficient and safe. If ISO

9000 has been combined with delegation and increased responsibilities,

most of the recurring problems are now solved at the implementation level

and no longer reach the manager's desk. In the documentation process, the

company's inefficiencies are detected and eliminated. Contractual

considerations with clients and suppliers may improve substantially

through enlarged control and evaluation procedures, especially those

required by the ISO 9001 model. Office administration may be greatly

improved because responsibilities and work systems are clearly defined.

Little time is lost when nonconformities are detected, and repetition of

work is avoided. The legislative obligations of the company become easier

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44

to identify when material and organizational processes are clearly

described and documented.

10)The relation between TQM and ISO 9000

The basis for TQM implementation is the establishment of a quality

management system which involves the organizational structure,

responsibilities, procedures and processes. The most frequently used

guidelines for quality management systems are the ISO 9000

international standards, which emphasize the establishment of a well-

documented, standardized quality system. The role of the ISO 9000

standards within the TQM circle of continuous improvement is presented

in figure 4.

Continuous improvement is a circular process that links the diagnostic,

planning, implementation and evaluation phases. Within this circular

process, the ISO 9000 standards are commonly applied in the

implementation phase. An ISO 9000 quality system also requires the

establishment of procedures that standardize the way an organization

handles the diagnostic and evaluation phases. However, the ISO 9000

standards do not prescribe particular quality management techniques or

quality-control methods. Because it is a generic organizational standard,

ISO 9000 does not define quality or provide any specifications of products

or processes. ISO 9000 certification only assures that the organization has in

place a well-operated quality system that conforms to the ISO 9000

standards. Consequently, an organization may be certified but still

manufacture poor-quality products.

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11)CONCLUSION : Stewart [9] define that standardization is the

foundation for the complete Production system. Without

standardization in an organization, it is like building a house upon

The sand; each day, the sand shift and can destroy any

improvements that have been made. Consequently, the foundation of

the house must be strong and immovable.

Figure .STD.1

The goals of the organization are achieved by having kaizen, which is the

Japanese word for continuous. The concept of kaizen regards having

continuous improvements in the organization, meaning that it is always

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46

possible to improve products, processes and methods, while using less

recourses (Bergman & Klefsjö, 2010).

The foundations of Lean Manufacturing can be symbolized as a building,

held up by the Two pillars; Built--‐in Quality (Jidoka) and Just--‐in--‐time

(JIT), see figure. STD.1 (Nicholas, 2010). The roof represents the goals of the

organization of having highest quality, lowest Costs and shortest lead--

‐time, whilst the foundation is represented by standardization and the

importance of having stable and reliable processes (Liker, 2009).

Quality has a three-fold [12] meaning in construction (Hart, 1994): it means

getting the job done on time; it means ensuring that the basic characteristics

of the final project fall within the required specifications; it means getting

the job done within budget. A quality construction project has to comprise

all these dimensions. Actually, quality in construction is directly connected

with conformance to specifications and fitness for use.

However, many authors believe that [13] the new revised ISO 9000:2000

series of standards is a significant improvement on the previous version in

terms of its conceptual simplification, its process-based vision and its

acknowledgement of the importance of customer satisfaction as a key

requirement for verifying the effectiveness of the quality system (Conti,

1999). The basic principles on which the new standards’ requirements are

based (as found in the ISO 9000:2000 document) are much more TQM-

oriented.

Although ISO 9000 is generic and can be applied to any organization, some

industrial sectors have shown a greater preference for this standard and

have adopted it more rapidly than others. This is in part because quality is a

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47

more important competition factor in some sectors than in others. For

example, sectors like mining and agriculture generally do not rely on

quality to compete, but on low production and transportation costs. ISO

9000 certification has been more prevalent in the manufacturing industry,

where quality and safety are most important to output, and services are

starting to represent an increasing share of certificates (figure 6.4). In 2000,

manufacture transporting accounted for 64 percent and services for 25

percent of worldwide certificates (ISO 2001).

Fiq,CER.1 values- approximately only [14]

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48

1. Construction

2. Basic metals and fabricated metal products

3. Electrical and optical equipment

4. Machinery and equipment

5. Wholesale and retail trade; repair of motor vehicles, motorcycles, and

personal and household goods

6. Rubber and plastic products

7. Chemicals, chemical products, and fi bers

8. Food products, beverages, and tobacco

These sectors register high certifi cation rates, either because quality is

considered to be an important competitive factor in these sectors or because ISO 9000 is particularly effective in increasing organizational efficiency in these sectors.

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49

Figure 1.1, Now,Where we are ?

*All the circumstances is in the hand of top management.

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50

Quality management evolutionary chart for reference on TABLE.TQM 1 [15]

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51

References:

[1] Quality and Power in the Supply Chain: What Industry Does for the Sake of Quality

James Lamprecht, Ph.D.

Boston Oxford Auckland

Johannesburg Melbourne New Delhi

[2] Building Total Quality by Tito Conti Springer-Science+Business Media, B.V.

[3] QUALITY MANAGEMENT AND PRACTICES, Edited by Kim-Soon Ng, Published by InTech,

Janeza Trdine 9, 51000 Rijeka, Croatia

[4] Total Quality Management Proceedings of the first world congress Edited by Gopal K. Kanji

[5] http://waikato.researchgateway.ac.nz/

[6] Amazon consulting Inc.

[7] ISO 9001: 2008 for Small Businesses (Fourth Edition) Ray Tricker, Published by Elsevier Ltd.

[8] The Role of Sarbanes-Oxley and ISO 9001 in Corporate Management

A Plan for Integration of Governance and Operations by WILLIAM A. STIMSON

[9] Cost of Poor Quality; definition and development of a process--‐based

Framework by Marcus Thomasson & Johanna Wallin, CHALMERS UNIVERSITY OF TECHNOLOGY 2013

[10] http://core.kmi.open.ac.uk/download/pdf/14343394.pdf

[11] Financial Justification of Nondestructive Testing Cost of Quality in Manufacturing Emmanuel P. Papadakis

[12] DEVELOPMENT OF QUALITY CULTURE IN THE CONSTRUCTION INDUSTRY http://eprints.utm.my/657/1/CM_59%5B1%5D._Development_Quality_Culture._Wan_Yusoff [13] http://www.qualityfoundation.in/downloads/wbut/Investigating_the_HR_Business%20Excellance.pdf [14]Quality Systems and Standards for a Competitive Edge J. Luis Guasch, Jean-Louis Racine, Isabel Sánchez, Makhtar Diop - THE WORLD BANK

http://siteresources.worldbank.org/EXTEXPCOMNET/Resources/2463593-

1213887855468/69_LAC_Quality_and_Standards_Pub_Nov_2007.pdf

[15] http://core.kmi.open.ac.uk/download/pdf/14343394.pdf [16] MANAGEMENT IN INDIA, Trends and Transition, Edited by Herbert J. Davis, Samir R. Chatterjee, Mark Heuer - Response Books,

A division of Sage Publications

[17] QUALITY MANAGEMENT AND COMPETITIVENESS THE DIFFUSION OF THE ISO 9000 STANDARDS IN LATIN AMERICA AND RECOMMENDATIONS FOR GOVERNMENT STRATEGIES, Hessel Schuurman UNITED NATIONS, Division of Production, Productivity and Management, Santiago, Chile, 1997