BBA Sem 5

Total Quality Management

Module 5

Dr. Ritu Rani

Assistant Professor
Department of Management
Studies
 Quality management system
• QMS, comprising a formal set of policies, processes and procedures established to
elevate consumer satisfaction. A QMS guides organizations as they standardize and
enhance quality controls across manufacturing, service delivery and other key business
processes.
• ISO standards for business, government and society as a whole make a positive
contribution to the world we live in. They ensure vital features such as quality, ecology,
safety, economy, reliability, compatibility, interoperability, conformity, efficiency and
effectiveness. They facilitate trade, spread knowledge, and share technological
advances and good management practice. ISO develops only those standards that are
required by the market.
• Consistent quality leads to happy, satisfied customers who become informal brand
ambassadors within their communities.
• Every organization wants to strive for excellence. Because, ultimately, the quality of a
product or service is what the customer gets out of it and is willing to pay for. Quality
management plays a crucial role in delivering a superior experience, which in turn
influences a company’s growth and performance.
 Quality management system
• A quality management system (QMS) is defined as a formalized system that documents processes,
procedures, and responsibilities for achieving quality policies and objectives. A QMS helps
coordinate and direct an organization’s activities to meet customer and regulatory requirements
and improve its effectiveness and efficiency on a continuous basis.
• ISO 9001:2015, the international standard specifying requirements for quality management
systems, is the most prominent approach to quality management systems. While some use the
term "QMS" to describe the ISO 9001 standard or the group of documents detailing the QMS, it
actually refers to the entirety of the system.
 Benefits

Here are six good reasons to consider investing in a quality management system:
• Brand reputation: This is priceless, of course. A brand is more likely to gain international
recognition when an organization surpasses established quality benchmarks.
• Customer retention: Consistently meeting, or exceeding, customer needs and expectations
fosters loyalty. When high standards are met or surpassed, why would customers go anywhere
else?
• Business sustainability: Consistently delivering excellence ensures and maintains a steady
supply of customers. Doing business sustainably, and producing minimal waste, is the best way
to grow and future-proof an organization.
• Compliance: Meeting regulatory, safety and quality standards is a must and a QMS seamlessly
facilitates this process.
• Competitive edge: Higher-quality products and services give businesses a competitive
advantage in complex times.
• Staff engagement: Employees who feel they are involved in quality
 Benefits
• Meeting the customer’s requirements, which helps to instill confidence in the
organization, in turn leading to more customers, more sales, and more repeat business
• Meeting the organization's requirements, which ensures compliance with regulations
and provision of products and services in the most cost- and resource-efficient manner,
creating room for expansion, growth, and profit
• These benefits offer additional advantages, including:
• Defining, improving, and controlling processes
• Reducing waste
• Preventing mistakes
• Lowering costs
• Facilitating and identifying training opportunities
• Engaging staff
• Setting organization-wide direction
• Communicating a readiness to produce consistent results
 ISO 9000
• The ISO 9000 series of standards celebrated its 30th anniversary in 2017.
• First published in March 1987, ISO 9001: Quality management systems -
Requirements has become the most successful standard in the history of the
International Organization for Standardization.
• The popularity of the ISO 9000 series paved the way for other management system
standards
• The ISO 9000 family consists of the world's best known standard for quality
management systems (QMS)
• ISO 9000 is defined as a set of international standards on quality management and
quality assurance developed to help companies effectively document the quality
system elements needed to maintain an efficient quality system. They are not specific
to any one industry and can be applied to organizations of any size.
• ISO 9000 can help a company satisfy its customers, meet regulatory requirements, and
achieve continual improvement. It should be considered to be a first step or the base
level of a quality system.
 ISO 9000
• The ISO 9000 series was created by the International Organization for Standardization
(ISO) as international requirements and guidelines for quality management systems. It
was originally introduced in 1987 and over the years has established itself in the global
economy having been adopted in over 178 countries with over one million
registrations.
• The phrase “ISO 9000 family” or “ISO 9000 series” refers to a group of quality
management standards which are process standards (not product standards).
• ISO 9000 Quality management systems – Fundamentals and Vocabulary, referenced in
all ISO 9000 Standards.
• ISO 9001 Quality management systems – Requirements, contains the requirementsan
organization must comply with to become ISO 9001 certified.
• ISO 9002 – Guidelines for the application of ISO 9001:2015
• ISO 9004 – Managing for the sustained success of an organization,
provides guidelines for sustaining QMS success through evaluation and performance
improvement.
• ISO 1901-1 provides guidance on auditing quality and environmental management
systems.
 ISO 9000

• ISO 9001:2015 is the current version of the ISO 9001 standard. ISO 9001
lists requirements, while the other standards in the 9000 family provide guidelines and
information. People often say “ISO 9000 certified“, but what they mean is they have
met the requirements of the ISO 9001 standard. Read more about ISO 9001
Certification.
• The ISO 9000 Series of Quality Standards is not industry-specific and is applicable to any
manufacturing, distribution, or service organization. It is managed by Technical
Committee (TC) 176, comprised of international members from many industries and
backgrounds.
ISO 9000:2015 describes the fundamental concepts and principles of quality management
which are universally applicable to the following:
• organizations seeking sustained success through the implementation of a quality
management system.
 ISO 9000
• customers seeking confidence in an organization's ability to consistently provide products and
services conforming to their requirements;
• organizations seeking confidence in their supply chain that their product and service
requirements will be met;
• organizations and interested parties seeking to improve communication through a common
understanding of the vocabulary used in quality management;
• organizations performing conformity assessments against the requirements of ISO 9001;
• providers of training, assessment or advice in quality management;
• developers of related standards.
ISO 9000 Quality Management Principles
 ISO 9000 Quality Management
Principles
1. Customer focus
1. Understand the needs of existing and future customers
2. Align organizational objectives with customer needs and expectations
3. Meet customer requirements
4. Measure customer satisfaction
5. Manage customer relationships
6. Aim to exceed customer expectations
7. Learn more about the customer experience and customer satisfaction
2. Leadership
1. Establish a vision and direction for the organization
2. Set challenging goals
3. Model organizational values
4. Establish trust
5. Equip and empower employees
6. Recognize employee contributions
7. Learn more about leadership
 ISO 9000 Quality Management Principles
3. Engagement of people
1. Ensure that people’s abilities are used and valued
2. Make people accountable
3. Enable participation in continual improvement
4. Evaluate individual performance
5. Enable learning and knowledge sharing
6. Enable open discussion of problems and constraints
7. Learn more about employee involvement
4. Process approach
8. Manage activities as processes
9. Measure the capability of activities
10.Identify linkages between activities
11.Prioritize improvement opportunities
12.Deploy resources effectively
13.Learn more about a process view of work and see process analysis tools
 ISO 9000 Quality Management
Principles
5. Improvement
1. Improve organizational performance and capabilities
2. Align improvement activities
3. Empower people to make improvements
4. Measure improvement consistently
5. Celebrate improvements
6. Learn more about approaches to continual improvement
6. Evidence-based decision making
7. Ensure the accessibility of accurate and reliable data
8. Use appropriate methods to analyze data
9. Make decisions based on analysis
10.Balance data analysis with practical experience
 ISO 9000 Quality Management
Principles
7. Relationship management
1. Identify and select suppliers to manage costs, optimize resources, and create value
2. Establish relationships considering both the short and long term
3. Share expertise, resources, information, and plans with partners
4. Collaborate on improvement and development activities
5. Recognize supplier successes
6. Learn more about supplier quality and see resources related to managing the
supply chain
 ISO 14000

ISO 14000 is defined as a series of international environmental management standards,

guides, and technical reports. The standards specify requirements for establishing
an environmental management policy, determining environmental impacts of products or
services, planning environmental objectives, implementing programs to meet objectives,
and conducting corrective action and management review.
ISO has developed standards that help organizations to take a proactive approach to
managing environmental issues: the ISO 14000 family of environmental management
standards which can be implemented in any type of organization in either public or
private sectors – from companies to administrations to public utilities.
 ISO 14000

• ISO 14000 standards and practices can be applied to any organization, regardless of size
or industry.
• ISO 14001:2015 is the most popular standard of the ISO 14000 family.
• The primary objective of the ISO 14000 series of standards is to promote effective
environmental management systems in organizations. The standards seek to provide
cost-effective tools that make use of best practices for organizing and applying
information about environmental management.
• The ISO 14000 family was developed in response to a recognized industry need for
standardization. With different organizational approaches to environmental
management, comparisons of systems and collaboration had proved difficult.
 ISO 14000

The ISO 14000 series is a family of environmental management standards developed by

the International Organization for Standardisation (ISO). The ISO 14000 standards are
designed to provide an internationally recognised framework for environmental
management, measurement, evaluation and auditing. They do not prescribe
environmental performance targets, but instead provide organisations with the tools to
assess and control the environmental impact of their activities, products or services. The
standards address the following subjects: environmental management systems;
environmental auditing; environmental labels and declarations; environmental
performance evaluation; and life cycle assessment.
 ISO 14000

The ISO 14000 family is designed to be implemented according to the same Plan-Do-
Check-Act (PDCA) cycle underlying all ISO management systems standards.
These tools can provide significant tangible economic benefits, including the following :
• Reduced raw material/resource use
• Reduced energy consumption
• Improved process efficiency
• Reduced waste generation and disposal costs
• Utilization of recoverable resources.
 PDCA

Plan Do Check Act

Environmental Conduct life cycle Conduct audits Communicate
management assessment and and and use
system manage evaluate environmental
implementation environmental environmental declarations
aspects performance and claims
 ISO 9000:2000

• ISO 9000:2000 refers to the ISO 9000 update released in the year 2000. ISO 9000:2000
is quite different from the original standard. The new standard is based on a process
model that any enterprise can use, whether they are a manufacturer, a chemical
processor or a service provider.
• The purpose of ISO 9000:2000 Quality Management System Standards is to provide
customers with confidence that suppliers, contractors, subcontractors, and vendors
have documented, effective and independently verified Quality Management Systems.
• The ISO 9000:2000 revision had five goals:
1. Meet stakeholder needs
2. Be usable by all sizes of organizations
3. Be usable by all sectors
4. Be simple and clearly understood
5. Connect quality management system to business processes
 ISO 9000:2000

In ISO 9000:2000, management responsibility is expanded so that management presides

over a multi-step version of the process:
• Devising policies.
• Establishing objectives and procedures for reviewing quality.
• Developing a plan to identify the resources necessary to meet established objectives.
• Organizing and establishing a quality management system (QMS).
• Establishing a management review program.
 ISO 9000:2000

Examples of ISO 9001:2000 requirements include:

• Customer complaint resolution
• Formal design reviews
• Testing of all deliverables
• Reviews of requirements before accepting contracts
• Regular audits to verify compliance and the effectiveness of procedures
 ISO 9000:2000

• ISO 9000:2000 is a series of standards developed by (ISO) International Organization for

standardization consisting of five (5) main quality standards:

• ISO 9000:2000 Quality Management Systems-Fundamentals and Vocabulary

ISO 9001:2000 Quality Management Systems -Requirements
ISO 9004:2000 Quality Management Systems -Guidelines for Performance
Improvements. ISO 10005 Quality Management -Guidelines for Quality Plans
ISO 19011 Guidelines for Auditing Quality/or Environmental Management System
Auditing
 ISO 26000

ISO 26000 is defined as the international standard developed to help organizations

effectively assess and address social responsibilities that are relevant and significant to
their mission and vision; operations and processes; customers, employees, communities,
and other stakeholders; and environmental impact.
ISO 26000 and Organizational Social Responsibility
 ISO 26000

The ISO 26000 standard provides guidance on:

• Recognizing social responsibility and engaging stakeholders
• Ways to integrate socially responsible behavior into the organization
• The seven key underlying principles of social responsibility:
• Accountability
• Transparency
• Ethical behavior
• Respect for stakeholder interests
• Respect for the rule of law
• Respect for international norms of behavior
• Respect for human rights
 ISO 26000
The seven core subjects and issues pertaining to social responsibility:
• Organizational governance
• Human rights
• Labor practices
• The environment
• Fair operating practices
• Consumer issues
• Community involvement and development
 ISO 26000

ISO 26000 aims to:

• Assist organizations in addressing their social responsibilities while respecting cultural,
societal, environmental, and legal differences and economic development conditions
• Provide practical guidance related to making social responsibility operational
• Assist with identifying and engaging with stakeholders and enhancing credibility of reports
and claims made about social responsibility
• Emphasize performance results and improvement
• Increase confidence and satisfaction in organizations among their customers and other
stakeholders
• Achieve consistency with existing documents, international treaties and conventions, and
existing ISO standards
• Promote common terminology in the social responsibility field
• Broaden awareness of social responsibility
 References
• Besterfield D.H., et al. Total quality management. N.Y. Pearson Education Publ;
2003.
• Juran J.M., Gryna F.M. Quality planning and analysis. New York: McGraw Hill
Publ; 1980.
• Deming W.R. Out of crisis. Chambers University Press; 1993.
THANK YOU