1.

Introduction

Everyone has had experiences of poor quality when dealing with business organizations. These experiences might involve an airline that has lost a passengers luggage, a dry cleaner that has left clothes wrinkled or stained, poor course offerings and scheduling at your college, a purchased product that is damaged or broken, or a pizza delivery service that is often late or delivers the wrong order. The experience of poor quality is exacerbated when employees of the company either are not empowered to correct quality inadequacies or do not seem willing to do so. We have all encountered service employees who do not seem to care. The consequences of such an attitude are lost customers and opportunities for competitors to take advantage of the market need. Successful companies understand the powerful impact customer-defined quality can have on business. For this reason many competitive firms continually increase their quality standards. For example, both the Ford Motor Company and the Honda Motor Company have recently announced that they are making customer satisfaction their number one priority. Ford is focusing on tightening already strict standards in their production process and implementing a quality program called SixSigma. Honda, on the other hand, is focused on improving customer-driven product design. Although both firms have been leaders in implementing high quality standards, they believe that customer satisfaction is still what matters most [1]. 1.1 Total Quality Management

In making quality as a priority means putting customer needs first. It means meeting and exceeding customer expectations by involving everyone in the organization through an integrated effort [1]. Total Quality Management (TQM) is an approach that seeks to improve quality and performance which will meet or exceed customer expectations. This can be achieved by integrating all quality-related functions and processes throughout the company. TQM looks at the overall quality measures used by a company including managing quality design and development, quality control and maintenance, quality improvement, and quality assurance. TQM takes into account all quality measures taken at all levels and involving all company employees [2]. 1.2 Principles of TQM

TQM can be defined as the management of initiatives and procedures that are aimed at achieving the delivery of quality products and services. A number of key principles can be identified in defining TQM, including [2]:

Executive Management Top management should act as the main driver for TQM and create an environment that ensures its success. Training Employees should receive regular training on the methods and concepts of quality. Customer Focus Improvements in quality should improve customer satisfaction. Decision Making Quality decisions should be made based on measurements. Methodology and Tools Use of appropriate methodology and tools ensures that non-conformances are identified, measured and responded to consistently. Continuous Improvement Companies should continuously work towards improving manufacturing and quality procedures. Company Culture The culture of the company should aim at developing employees ability to work together to improve quality. Employee Involvement Employees should be encouraged to be pro-active in identifying and addressing quality related problems.

2.0

Quality Management

QUALITY is the ability of a product or service to consistently meet or exceed customer expectations [3]. 2.1 Traditional vs. Modern Concept of Quality Control Modern Includes everyone from raw material, productivity, management The objective is to detect mistakes after completion or at the end of line of production. No specific methods, based on The objective is to detect the design, process, top

Traditional Usually involve one person or in small group

mistakes which it might occur during the production line before completion Use statistical value; control charts to monitor the quality of the product or service

experience of the quality examiner

2.2

Dimension of Quality Customer expectation can be broken down into a number of categories, or dimensions,

that customers use to judge the quality of a product or service. The dimensions used for goods are somewhat different from those used for services. Product quality is often judged on eight dimensions of quality below: Performance main characteristics of the product or service o I.e.; everything works: fit and finish, ride, handling, acceleration

Special Features extra characteristics o I.e.; Convenience: placement of gauges, High tech: cell phone, DVD player, Safety: anti-skid, airbags

Conformance how well a product or service corresponds to design expectation o I.e.; Car matches manufacturers specifications

Reliability consistency of performance without breakdown o I.e.; Infrequent need for repair

Durability the useful life of the product or service o I.e.; Useful life in miles, resistance to rust

Perceived quality indirect evaluation of quality (e.g., reputation) o I.e.; Top-rated

Aesthetics appearance, feel, smell, taste o I.e.; Exterior and interior design

Serviceability handling of complaints or repairs o I.e.; Service after sale

Instead, service quality is often described using following dimensions Convenience availability and accessibility of the service

I.e.; Was the service center conveniently located?

Responsiveness willingness of service providers to help customers and to deal with the problems o I.e.; Were customer service personnel willing and able to answer question?

Time speed which the service is delivered o I.e.; How long did the customer have to wait?

Reliability consistency to perform a service dependably, consistently, and accurately o I.e.; Was the problem fixed?

Assurance the knowledge shown by the personnel o I.e.; Did the customer service personnel seem knowledgeable about the repair?

Courtesy the way customer are treated by employees o I.e.; Were customer service personnel and the cashier friendly and courteous? the physical appearance of facilities, equipment, personal and

Tangibles

communication materials o 2.3 I.e; Were the facilities clean? Were personnel neat?

Consequences of Poor Quality Poor design or defective products or services can result in loss of business. Failure to

devote adequate attention to quality can damage a profit-oriented organizations reputation and leads to a decreased share of the market, or it can lead to increased criticism and controls for a government agency or non-profit organization. Furthermore the companys image will suffer horribly. Organization must pay special attention to their potential liability due to injury, damage or even death resulting from either faulty design or poor workmanship. This applies for both products and services. Liability for poor quality has been well established in the courts. An organizations liability costs can often be substantial, especially if large numbers of items are involved (e.g., an accident at a nuclear power plant) 4

Productivity and quality are often closely related. Poor quality can adversely affect productivity during the manufacturing process if parts are defective and have to be reworked or if an assembler has to try a number of parts before finding one that fits properly. Also, poor quality in tool and equipment can lead to injuries and defective outputs, which must be reworked or scrapped, thereby reducing the amount of usable output for a given amount of input. Similarly, poor service can mean having to redo the service and reduce service productivity. Cost to remedy a problem is a major consideration in quality management. The earlier a problem is identified in the process, the cheaper the cost to fix it. It has been estimated that the cost to fix a problem at the customer end is about five times the cost to fix a problem at the design or production stage. 2.4 Responsibility for Quality

All members of an organization have some responsibility for quality, these are some key areas of those responsibility: Top management has the ultimate for quality, they must institute programs to improve the quality; guide, direct, and motivate managers and workers. Designers which the quality product and service begins with them. This includes the features of the product or service, attention to the required process to manufacture a product and the service that will required delivering the service to the customers. Procurement department has responsibility for obtaining goods and services that will not detract from the quality of the organizations goods and services. Production/operations have the responsibility to ensure that processes yield products and services that conform to design specification. Monitoring processes and finding and correcting root causes of problems are important aspects of this responsibility. Quality assurance is responsible for gathering and analyzing data on problems and working with operations to solve problems. Packaging and shipping department must ensure that goods are not damaged in transit, which packages are clearly labeled, and that instructions are included, that all parts are included, and shipping occurs on schedule.

Marketing and sales department has the responsibility to determine customer needs and to communicate them to appropriate areas of the organization. In addition, it has the responsibility to report any problems with the products or services.

Customer service is often the first department to learn of problems. It has the responsibility to communicate the information to appropriates departments, deals in a reasonable manner with the customers, work to resolve problems, and follow up to confirm that the situation has been effectively remedied

2.5

Cost of Quality a) Internal Cost Failure cost: results from production of defective parts before delivery (rework, scrap, downtime) b) Appraisal cost: evaluating products (lab testing, inspector) Prevention cost: reducing potential for defective (training, awareness program) External cost occur after delivery (liabilities, warranty, sued by customer)

3.0 3.1

Employee Involvement Introduction of employee involvement In order to create a positive working environment that is based on high trust, exceptional customer service, collaborative teamwork, operational excellence, and creative problem solving, the leadership team must begin to understand, invest in, and be responsive to the needs of the group that represents the organizations most valuable assets, the employees. The return on such nominal investments will come in the form of higher levels of employee motivation, creativity, productivity, and commitment that will move the organization forward with greater profitability. A fundamental Total Quality Management precept is that employees must be involved.

3.2

Descriptions of employee involvement Employee involvement (EI) is creating an environment that involved employees in decision making that have an impact and action affecting their job. It is neither goal nor a tool. EI is a management and leadership philosophy about how 6

people are most enabled to contribute to continuous improvement and the ongoing success of their work organization. McGregors Theory Y first brought to managers the idea of a participative management style that employee involvement has taken many forms, including the job design approaches and special activities such as quality of work life (QWL) programs. Only a minority of organizations in worldwide industry could be truly said to be operating with the involvement of their employees. However, the trend over the last 10 years has certainly been to move towards this direction, often following the link of inward investors such as the Japanese, Germans and Americans. One of the countries that implement EI in their organizational sector is Japan. The Japanese have always recognized this approach and it is one of the reasons of their success in world markets. They place tremendous value on the integration of people with organizational objectives, equipment and processes. The employees force the organizations to address three key issues; communication, involvement and development. In fact the three issues can be used as a measure of an organizations maturity in the employment relationship. Peoples are tend to get confuse between communication systems such as team briefings with involvement. Involvement is more than just the exchange of information. It is the gradual but radical delegation of control to those closest to the process itself. There are several examples of true involvement such as self-managed teams, cell-based manufacture, autonomous work groups and high performance work systems. 3.3 The employee involvement model The employee involvement model was developed by Tannenbaum and Schmidt in the year 1958 acts as an effective guide for the accomplishment of the employee involvement. The model provides the method which the organization is involved in the decision making process. There are four levels which the organizations follow depending on the mode of operation.

I.

Tell: The leader makes the decision and informs the decision to the staff. The leader provides complete direction to the employee. The tell kind of strategy is useful on strategies like the safety concerns, government legislations and for the decisions that do not require any employees input.

II.

Sell: In the sell strategy the decision is taken by the company and then an attempt is made to communicate the decision so as to gain commitment from the staff. This strategy is used when the employees do not have much influence over the decision, but there is a requirement of complete employee involvement.

III.

Consult: In the employees are invited to pool in their opinions about the decision however the authority of final decision is still depends on supervisor himself.

IV.

Join: In this the employee and the supervisors take the decision in consensus. Both of them have an equal voice in the decision making process.

Employee involvement is worldwide applicable technique. There is no single option for employee involvement. It includes suggestion systems, teams, focus groups, surveys, self-directed work groups, incentive programs and more. The goal is to determine the most effective employee involvement options that will be linked to specific organizational goals. In order to implement employee involvement to an enterprise the following key actions need to take place: Giving employee the responsibility Training employee to accept responsibility Communicating and giving feedback Giving rewards and recognition If the offer of employee involvement is sincere and valid, it should meet the following six conditions: I. Management involves the union at the highest levels as an equal partner from planning, through implementation, and evaluation of employee Involvement. The union equally selects with management any consultants who are hired to set up and coordinate employee involvement committee. II. It is a voluntary process for both union and company. The union selects, elects, or appoints its representatives on the committees that deal with employee involvement.

III.

Collective bargaining and grievance matters are not a part of the program. These subjects remain outside of employee Involvement.

IV.

Management agrees to the proposition in writing that no workers can be laid off or downgraded as a result of ideas generated by the workers in employee involvement committees.

V.

Money savings of employee involvement are shared with workers through items such as more money in the paycheck, free training, upgrading, a shorter workweek, etc. The union and management jointly determine this.

VI.

Management actions on cooperation should be the same as management words. Management encourages a good relationship in It's labor relations with the union as it simultaneously seeks to settle grievances at the lower levels, does not force the union to take tons of cases to arbitration so as to bankrupt the union treasury, treats the officers and stewards of the union with equal respect, assures the right of stewards to be present at disciplinary interviews, and does not suddenly harass, pressure, or fire union representatives The right hand of management employee involvement cooperation should not be chopped off by the left hand of management hostility and confrontation with the union. Words and actions must be consistent.

3.4

Benefits of employee involvement Increase in ownership and commitment and retention of the employees Creates a harmonial environment Helps to achieve the employee satisfaction It is one of the most factors that help to promote team building.

3.5

Limitations of employee involvement Traditional management power of decision-making is shared with employees process Requires substantial supplementary investments including worker training, which pays off only with a considerable time lag.

Decisions may be delayed and valuable internal resources wasted in the

 Extensive EI practices are likely to lead to stronger bargaining power for employees and may distort corporate decisions, resulting in a deterioration of corporate performance

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IV.0

Quality Control Circle (QCC)

4.1

Introduction to QCC

A QCC is a small group of staff working together to contribute to the improvement of the enterprise, to respect humanity and to build a cheerful workgroup through the development of the staff's infinite potential. A QCC team of people usually coming from the same work area, who voluntarily meet on a regular basis to identify, investigate, analyze and solve their work-related problems [Ishikawa 1981]. It has been the Japanese experience that 95% of the problems in the workshop can be solved with simple quality control methods such as the 7 quality control tools. They are: Pareto diagrams, cause-and-effect diagrams, stratification, check sheets, histograms, scatter diagrams, and graphs & control charts. These tools will help QCCs to do brain-storming systematically and to analyze the problems critically. Then, through logical thinking and experience, most problems can be solved. In simple words, a QCC is a participative management system in which workers make suggestions and improvements for the betterment of themselves and the company. Some definitions of QCC are as follows 2: It is a small group of people doing similar work, meeting to identify, analyze, and solve product quality problems. They usually meet for one-half hour to one hour each week in or near their area. Membership is strictly voluntary and anyone who wishes to join is welcomed as a member. Each person is free to decline membership. An active circle will attract more people in the long run. It is a group of factory workers from the same area who usually meet for an hour each week to discuss their quality problems, investigate causes, recommend solutions, and take corrective actions when authority is in their purview. It is not a "system" nor a "fad" or "program", it is a way of life, a change in the way one's mind is set. It will not change the management or

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organizational structure, but it will change the way one relates to people within the work environment. 4.2 History of QCC

Japanese companies had an unwelcome reputation for producing cheap products after World War II. Known as cheap merchants of the world, their products prices were fairly competitive yet the quality was low. Today, however, Japanese products are known for their quality and reliability. Japanese companies undertook major steps, such as having their management personally take charge of the quality function; having quality-related training throughout the company hierarchy; and adopting the QCC concept as a means of enabling the workforce to participate in the quality activities of the company [Fukui 2001]. The Union of Japanese Scientists and Engineers, organized in 1946, played a major role in the training of management and engineers on quality. It organized in 1949, its Quality Control Research Group (QCRG), which was tasked with studying the international quality control field for information on how to rationalize the wartorn Japanese industries, how to improve quality of exports, and how to raise the living standards of the Japanese. The first QCC was organized in 1962, and from then on, the QCC movement grew, slowly at first, then with increasing speed. According to [Hosokawa 1995], the Chief Engineer of Hamamatsu Factory, Honda has its own unique network called Global Network, through which various Honda companies around the world are united toward one mission, to provide products with highest sufficiency to customers worldwide. The management policy assures a company environment in which the company can act with ambition and its employees can develop fresh ideas in a most efficient way. The harmonious flow of work is highly valued and so is the research and endeavor for the mission. So as to meet those criteria, QCC activities have been rigorously introduced since 1971. As of 1995, there were more than 13,500 QCC in the company worldwide. Honda refers to its small activities as NH Circle Activity. Its Circle activities are founded on a principle of continual creation of a NEW HONDA though pursuit of the next assignment based on current recognition [Hosokawa 1995]. 4.3 Characteristic of QCC

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Based on this definition, which has been adopted in many countries, the QCC enumerates the following features [Fukui 2001]: Small group The circle is normally composed of three to ten volunteers who come from the same workshop and are under the same supervisor. Keeping the group small enables the members to participate actively in QCC activities. If the group is small, the chances are high that members are able to foster better interpersonal relations and develop cohesiveness. Each member is able to define his role and responsibilities better, making him feel more secure in his job relations and see his importance to the group; thus, his self-esteem is developed. Continual control and improvements QCC continue to look for opportunities for improvement from the time they receive their inputs to the time they deliver their product or service to their customers. They employ the concept of the continual improvement. Because the customer is never satisfied, the QCC never stop looking for better ways of doing the work. Once a problem is solved, they move to solve other problems; thus, they are in a never-ending search for ways to satisfy the customer. Autonomous operation Team solve problems in their own workshops; so, they operate autonomously in the sense that they are free to choose the problems to solve, they identify what data to collect in order to better understand why the problems exist, and their members analyze these causes in detail until they are able to isolate the most critical cause of the problem. They are on their own when they think of possible solutions to eliminate this most critical cause, although they are free to consult supervisors, engineers, or facilitators for ideas. They decide how to implement their solution, confirm that the standard operating procedure is implemented, and show that the solution is effective.

Utilization of concept, tools and techniques

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The member works with the aid of data throughout its problem-solving activities. They show that a problem exists by collecting data (using a data collection form, like a checksheet) that they then summarize and analyze using simple statistical tools like graphs, scatter diagrams, cause and effect diagrams, Pareto diagrams, and histograms. They also use problem-solving techniques like matrix diagrams, the What, When, Where, Who, Why, How (5W1H) concept, the Sorting, Systematizing, Sweeping, Sanitizing, Self-discipline (5S) concept, the Man, Machine, Materials, Method, Environment (4M1E), and the Muda (wastefulness), Muri (excessiveness), Mura (dispersion)(3Mu) concept [Fukui 2001]. Part of Total Quality Management(TQM) Many companies introduce TQM or company-wide QCC activities as a company management tool in order to improve the quality of their products and services. In the TQM framework, management announces the companys mission and vision to its employees, and each one of them plays a significant role in implementing quality management activities. QCC activities play an essential role in a companys management system, the development of which will lead to an activation of quality management throughout the company. Self-Developmet A QCC contributes not only to the development of a sound working environment but also to the enhancement of individuals abilities and potentials. In other words, the activities lead also to self-development of individuals. Through the activities, each member can develop various qualities, such as sound personal relations, analytical skills, presentation ability, and knowledge on various QC tools. 4.4 Objectives of QCC The objectives of QCC according to [Fukui 2001] are: Establishment a pleasant workplace The atmosphere of a workplace has two dimensions: the psychological and the physical. It is important that people perceive that their jobs offer opportunities for them to fully develop their potentials and have a say in how work is done and

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that their workplace is conducive to producing quality products and services. When the companys employees are satisfied, its goal of ensuring customer satisfaction, the ultimate goal of the QCC activities, is not difficult to achieve.

Establishment of a state of control It is very important that people operate their tasks according to the specified way. This cannot be done by means of mechanization, automation, and elimination of manpower. It has to be controlled through human effort.

Enhancement of morale QCC activity is aimed at enhancing the morale of circle members. By achieving self-development though QCC activities, members can enhance their morale, both as individuals and as members of society.

Establishment of sound human relations QCC provide a place where people can solve problems with active communication toward the achievement of common objectives. It is in this respect that a QCC can contribute to develop human relations among its members and even with management. Members learn interpersonal skills through their discussion with other members, acquiring a sense for building up harmonious relationships.

Better income In the long run, with company income increases through QCC activities, the income of the members will often increase. The benefit of the circles can be measured not only by tangible impacts but also by intangible impacts.

Improvement in Quality Assurance There are many accidents and problems in a workshop that can be addressed in the QCC. It is often the case that problems are caused by operators minor errors. The ultimate goal of QCC activities is to achieve quality assurance. By solving problems in the workplace in a systematic manner, the QCC can achieve quality assurance in the workplace, which consequently leads to improvement in the quality of life of the individual operators.

4.5

Step of Implements QCC

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1. Management is made aware of the QCC process through a management briefing. 2. The feasibility of the QCCs is analyzed. 3. A steering committee is formed. 4. Co-coordinator and in-house instructor are selected. 5. Potential area for initial circles is selected. 6. QCC presentations are made to first-line supervisors in identified areas, divisions or departments. 7. Co-coordinators and middle management receive extensive training on the process and their roles. 8. Supervisors who are interested volunteer and receive training. 9. Following training, QCC presentations are made to the employees who report to the newly trained supervisors. 10. Employees volunteer to be members of a circle and receive training. 11. A circle is formed and begins work. 12. Additional circles are formed as interest broadens 13. Circles work in a systematic way in solving problems, not just discussing them. 14. Management must ensure that solutions achieve a quick implementation once they have been accepted. 15. Circles are not paid directly for their solutions, but management must ensure appropriate and proper recognition

In order to implement QCC successfully, the following guidelines have to be considered: 4.6 Participation is voluntary. Management is supportive. Employee empowerment is required. Training is integral part of programme. Members work as a team. Members solve problems not just identify them.

Major Problems Faced in Operating QCC

16

There are some problems always faced by QCC members in order to implement the QCC activities. Some of the problems are: 4.7 Getting management involvement and Union support Getting financial support Sustaining Quality Circle efforts. Follow-up of the projects completed by the members. Proper training.

Benefits of QCC

Programmes which are based on QCC practices have been introduced for a variety of reasons, but firms invariably find that the quality of product and service is improved as a result of QCC activities. QCCs reveal all sorts of faults that prevent good practices, thus improving job satisfaction and contributing to pride in workmanship. This leads to higher quality of products, increased awareness of quality, and continuous improvement. Another benefit is an improved two-way communication. The management becomes more concerned with the staff problems and, in turn, the staff becomes aware of the day-to-day problems of running an organisation. Communication between departments also improves. While QCCs work on their own area's problems, their systematic approach often reveals previously unsuspected causes of difficulties in related processes of the production flow. A QCC programme in general requires the same framework as ISO 9000 quality standards regarding the management structure and in-company training. Therefore, QCCs should be part of any company's Total Quality Programme. Everyone's commitment to improvement imposed by a QCC programme also helps to establish customer confidence. Although some companies do not set out to achieve a pure financial return, most find that the financial benefits considerably overrun the costs. Some have experienced ten-fold savings, taking into consideration the gains cumulated year after year. 5.0 Relationship between Quality and JIT Before further discuss the relationship between Quality and JIT, the term used need to understand clearly first. There are several terms included in this topic such as: 17

1. Total Quality Management (TQM) a philosophy that involves everyone in an organization in a continual effort to improve quality and achieve customer satisfaction

2. Just In Time (JIT) a highly coordinated processing system in which goods move through the system and services are performed, just as they are needed 3. Lean Operation a highly coordinated system that uses minimal resources and produces high-quality goods or services From the further study in Total Quality Management and Just In Time, the relationship between both of it can be described that: 1. Implementing JIT without TQM which includes entire organization can be problem

2. JIT is no respecter of boundaries; it requires all departments to respond to its needs 3. For JIT to bring about the benefits inherent in its philosophy, it must be part of a total quality system 4. TQM/JIT demands continuous improvement in definition of quality itself

5. TQM/JIT continuously pushes the exposure of problems back, towards the starting point of the process, until initiation point is reached which is prevention

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6. With TQM/JIT, output of any organization can be described as below:

Output = Value-Added Activities + Non-Value-Added Activities

6.0 6.1

ISO 9000 & ISO 14000 Introduction The International Organization for Standardization widely known as ISO is an international-standard-setting body composed of representatives from various national standards organizations. Founded on February 23 1947, the organization promulgates worldwide proprietary industrial and commercial standards. It has its headquarters in Geneva, Switzerland. ISO is a non-governmental

organization that forms a bridge between the public and private sectors. On the one hand, many of its member institutes are part of the governmental structure of their countries, or are mandated by their government. ISO promotes worldwide standards for the improvement of quality, productivity, & operating efficiency. ISO standards: make the development, manufacturing and supply of products and facilitate trade between countries and make it fairer provide governments with a technical base for health, safety and share technological advances and good management practice disseminate innovation safeguard consumers, and users in general, of products and services make life simpler by providing solutions to common problems

services more efficient, safer and cleaner

environmental legislation, and conformity assessment

The ISO 9000 and ISO 14000 families are among ISO's best known standards ever.

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The vast majority of ISO standards are highly specific to a particular product, material, or process. However, ISO 9001 (quality) and ISO 14001 (environment) are "generic management system standards". "Generic" means that the same standard can be applied to any organization, large or small, whatever its product or service, in any sector of activity, and whether it is a business enterprise, a public administration, or a government department. ISO 9001 contains a generic set of requirements for implementing a quality management system and ISO 14001 for an environmental management system.

6.2

ISO 9000 It is a set of international standards on quality management & quality assurance, critical to international business. The ISO 9000 family addresses "Quality management". This means what the organization does to fulfill: the customer's quality requirements, and applicable regulatory requirements, while aiming to enhance customer satisfaction, and achieve continual improvement of its performance in pursuit of these objectives The ISO 9000 family of standards represents an international consensus on good quality management practices. It consists of standards and guidelines relating to quality management systems and related supporting standards. ISO 9001:2008 is the standard that provides a set of standardized requirements for a quality management system, regardless of what the user organization does, its size, or whether it is in the private, or public sector. It is the only standard in the family against which organizations can be certified although certification is not a compulsory requirement of the standard. The other standards in the family cover specific aspects such as fundamentals and vocabulary, performance improvements, documentation, training, and financial and economic aspects. 6.2.1 ISO 9000 standard: 20

System requirements Management requirement Resource requirement Realization of requirements Remedial requirements

8 quality management principles form the basis of the latest version of ISO 9000: A customer focus Leadership Involvement of people A process approach A system approach to management Continual improvement Use of a factual approach to decision making

Mutually beneficial supplier relationships

6.3 ISO 14000 It is a set of international standards for assessing a companys environmental performance. The ISO 14000 family addresses "Environmental management". This means what the organization does to:
Minimize harmful effects on the environment caused by its activities Achieve continual improvement of its environmental performance.

6.3.1

ISO 14000 standards

Managements system Systems development and integration of environmental responsibilities into business planning Operations Consumption of natural resources and energy Environmental systems Measuring, assessing, and managing emissions, effluents, and other waste streams 21

The ISO 14000 family addresses various aspects of environmental management. The very first two standards, ISO 14001:2004 and ISO 14004:2004 deal with environmental management an systems and (EMS). ISO ISO 14001:2004 gives provides general the requirements for EMS guidelines. The other standards and guidelines in the family address specific environmental aspects, including: labeling, performance evaluation, life cycle analysis, communication and auditing. 7.0 Conclusion EMS 14004:2004

Overall, quality is the culmination of efforts of the entire organization and its supply chain. It starts with the assessment of customers need then translating information obtained into technical specifications to which goods or services must conform. The specifications guide the product and service design, process design, production of goods and delivery of services and service after sales or delivery. The poor quality may contribute to loss of market share liability claims, a decrease in productivity and an increase in costs. Modern quality management is directed in preventing mistakes rather than finding them after they occur and reducing process output variation. Employee involvement is an alternative approach of improving the quality of worker and increase the worker satisfaction. Quality circle control (QCC) is one of employee involvement method that been discussed in this report. The introduction of ISO 9000 and ISO 14000 international quality standards act as a key contributor to quality management also had been discussed in this report. In conclusion, total quality management is never-ending pursuit of quality that involves everyone in an organization. The driving force is customer satisfaction which is the key of continuous improvement. 8.0 References

1. http://www.wiley.com/college/sc/reid/chap5, Total Quality Management pg 135-137 2. Martin Murray, http://logistics.about.com/od/qualityinthesupplychain/a/TQM.htm, 3. William J.Stevenson (2010) Operation Management;An Asian Perspective,9th edition, McGraw Hill

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4. Susan M. Heathfield, http://humanresources.about.com/od/glossarye/a/employee_inv.htm 5. Beck, Joseph & Susan (1993), TQM: Implementing Continuous Improvement, Sterling Publishing Co, New York. 6. Bounds, Gregory, Dobbins, Gregory and Fowler, Oscar,(1995) Management: A Total Quality Perspective, International Thomson Publishing, Ohio. 7. Ryan, Joe (1998) Giving people the chance to sparkle, People Management, p.p. 40-42. 8. http://net1.ist.psu.edu/chu/course/tqm/t4.htm 9. Ryu Fukui, Nicholas Gibler, Rebecca Gonzlez-vila, Yoko Honda, Harue Inoue, Noriharu Kaneko, Ichiro Miyauchi, Susana Soriano, and Yuka Yagi. 2001. Handbook for TQM and QCC. Japan Economic Research Institute. 10. Hosokawa, Makoto. 1995. The Present Status and Future Trends on the Honda's Small Group Activity at 4 Major Global Regions. International Convention on Quality Control Circles. Union of Japanese Scientists and Engineers. 11. Ishikawa Kaoru. 1981. Nihonteki Hinshitsu Kanri: TQC towa nanika (Japanese Style Quality Control: What is TQC?). Tokyo: Union of Japanese Scientists and Engineers. 12. http://www.iso.org/iso/home.htm

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