UNIT-V

QUALITY SYSTEMS
 INTRODUCTION

• Today, more and more business and industry leaders

realize that in order to thrive, or even survive, in the
new global economy, their companies must become
truly world-class.
• And that means quality.
• Quality in your products and services. Quality in your
practices and procedures. Quality you maintain and
you can prove - because it is documented.
 INTRODUCTION
• Quality as a competitive weapon.
• And that is the reason for the growing
move to ISO 9000 certification.
• The best companies are starting to insist
on it. Your competitors may already be
pursuing it. And if you plan to do business
in Europe or Japan, it is absolutely
essential.
 DO YOU KNOW???
• The race for ISO certification has
already started. In the first half of 2003,
it is estimated that over 60,000
European companies are registered in
compliance with the ISO 9000
standards. In the U.S., over 1000
companies have been certified. (In
2005, the number of certified companies
more than doubled.)
What does the term "ISO" stand
for?
• The term ISO stands for the
International Organization for
Standardization. You would reasonably
assume that it ought to be IOS, but it
isn't. Apparently, the term ISO was
chosen (instead of IOS), because iso in
Greek means equal, and ISO wanted to
convey the idea of equality - the idea
that they develop standards to place
organizations on an equal footing.
 HISTORY OF ISO

• The International Standards Organization (ISO), in

Geneva, Switzerland, was founded in 1946 to
develop a common set of standards in
manufacturing, trade and communications.
• It is composed of the national standards institutes
and organizations of 97 countries worldwide,
including the American National Standards Institute
(ANSI).
 HISTORY OF ISO

• The ISO publishes thousands of standards, but

the ISO 9000 series is having a major impact on
international trade.
• First published in 1987, the standards have
been rapidly adopted by organizations in
Europe, Asia and North America. In addition,
there is a movement by several industries in the
EEC where ISO certification is now a
prerequisite to product certification. And that
trend is growing.
 HISTORY OF ISO

• The standards have been endorsed by the

American Society of Quality Control, the
European Standards Institutes, and by the
Japanese Industrial Standards Committee.
• In the U.S., the American Society for Quality
Control runs the Registrar Accreditation Board
(RAB), which is accountable to ISO when it
comes to certification. The RAB has recognized
over 40 certification bodies that have trained
certified auditors.
 FIRST
• Asia's first ISO certified saloon in Chennai

• What is the common strand that runs between

giant industrial groups like TVS, Tatas, Birlas
and the humbler Ramesh Gents' Hair Stylist on
the upmarket Nungambakkam High Road in
Chennai?
 ISO…
ISO is the world’s
leading developer
of International
Standards

ISO standards are

designed to be
implemented
worldwide.
 ISO.
ISO standards specify the requirements
• for state-of-the-art products, services,
• processes, materials and systems,
• and for good conformity assessment,
• managerial and organizational practice
 What exactly is ISO 9000?

• Documentation is at the core of ISO

9000 conformance. In fact, the
standards have been described as this:
• "Say what you do. Do what you say.
Write it down."
 What exactly is ISO 9000?
• ISO 9000 is a set of international
standards for both quality management
and quality assurance that has been
adopted by over 90 countries
worldwide.
• The ISO 9000 standards apply to all
types of organizations, large and small,
and in many industries.
 What exactly is ISO 9000?
• The standards require:
• A standard language for documenting
quality practices.
• A system to track and manage evidence
that these practices are instituted
throughout the organization.
• A third-party auditing model to review,
certify and maintain certification of
organizations.
 What exactly is ISO 9000?
• The ISO 9000 series classifies products into
generic product categories: hardware, software,
processed materials and services.
• ISO 9000 - Explains fundamental quality
concepts and provides guidelines for the
selection and application of each standard.
• ISO 9001 - Model for quality assurance in design,
development, production, installation and
servicing.
• ISO 9004 - Guidelines for the applications of
standards in quality management and quality
systems.
 What exactly is ISO 9000?
• The ISO 9000 series classifies products into
generic product categories: hardware, software,
processed materials and services.
• ISO 9000 - Explains fundamental quality
concepts and provides guidelines for the
selection and application of each standard.
• ISO 9001 - Model for quality assurance in design,
development, production, installation and
servicing.
• ISO 9004 - Guidelines for the applications of
standards in quality management and quality
systems.
 What are the basic functions of the
ISO 9000 standards?
• Simply stated, the ISO 9000 standards define
"quality" in ways that have been recognized and
accepted worldwide.

• The goal is to increase customer confidence in the

quality system used by their suppliers. The standards
are designed to:
• Establish consistent language and terminology
• Provide baseline quality practices that are accepted
internationally
• Reduce the need for costly on-site supplier
assessments
• It doesn't matter what size they are
or what they do.
• It can help both product and service
oriented organizations achieve
standards of quality that are
recognized and
respected throughout the world.
 Documentation

• ISO 9000 standards don't tell you how

to run your business. They only define
the critical documented elements that
must be taken into consideration to
produce a quality product.
 A Little Story

• This is a story about four people named

Everybody, Somebody, Anybody, and Nobody.
• There was an important job to be done and
Everybody was sure that Somebody would do it.
• Anybody could have done it, but Nobody did it.
• Somebody got angry about that, because it was
Everybody's job.
• Everybody thought Anybody could do it, but
Nobody realized that Everybody wouldn't do it.
• It ended up that Everybody blamed Somebody
when Nobody did what Anybody could have done!
 PURPOSE

• ISO's purpose is to facilitate

international trade by providing
a single set of standards that people
everywhere would recognize and
respect.
 purpose
• The purpose of ISO 9001 is to assure customers that
suppliers can provide quality products and services.

• You need to control the quality of your products and

services.
• You need to reduce the costs associated with poor
quality.
• Your customers want you to become certified.
• Your markets expect you to be certified.
• Your competitors are already certified
 Standards and guidelines Purpose

ISO 9000:2000, Quality management Establishes a starting point for

systems - Fundamentals and understanding the standards and defines
vocabulary the fundamental terms and definitions used
in the ISO 9000 family which you need to
avoid misunderstandings in their use.

ISO 9001:2000, Quality management This is the requirement standard you use to
systems - Requirements assess your ability to meet customer and
applicable regulatory requirements and
thereby address customer satisfaction.
It is now the only standard in the ISO 9000
family against which third-party certification
can be carried.
 This guideline standard provides guidance
ISO 9004:2000, Quality management
for continual improvement of your quality
systems - Guidelines for performance
management system to benefit all parties
improvements
through sustained customer satisfaction.

ISO 19011, Guidelines on Quality and/or Provides you with guidelines for verifying
Environmental Management Systems the system's ability to achieve defined
Auditing (currently under development) quality objectives. You can use this
standard internally or for auditing your
suppliers.

ISO 10005:1995, Quality management - Provides guidelines to assist in the

Guidelines for quality plans preparation, review, acceptance and
revision of quality plans.

ISO 10006:1997, Quality management - Guidelines to help you ensure the quality of
Guidelines to quality in project both the project processes and the project
management products.
 Gives you guidelines to ensure that a
ISO 10007:1995, Quality management - complex product continues to function
Guidelines for configuration management when components are changed
individually.

ISO/DIS 10012, Quality assurance Give you guidelines on the main features
requirements for measuring equipment - of a calibration system to ensure that
Part 1: Metrological confirmation system measurements are made with the
for measuring equipment intended accuracy.

ISO 10012-2:1997, Quality assurance for Provides supplementary guidance on the

measuring equipment - Part 2: application of statistical process control
Guidelines for control of measurement of when this is appropriate for achieving the
processes objectives of Part 1.

ISO 10013:1995, Guidelines for Provides guidelines for the development,

developing quality manuals and maintenance of quality manuals,
tailored to your specific needs.
 Provides guidance on how to achieve
ISO/TR 10014:1998, Guidelines for
economic benefits from the application of
managing the economics of quality
quality management.

ISO 10015:1999, Quality management - Provides guidance on the development,

Guidelines for training implementation, maintenance and
improvement of strategies and systems for
training that affects the quality of products.

ISO/TS 16949:1999, Quality systems - Sector specific guidance to the application

Automotive suppliers - Particular of ISO 9001 in the automotive industry.
requirements for the application of ISO
9001:1994
 ISO 9001 and ISO 14001 in
brief
• ISO 9001 and ISO 14001 are among ISO's most well
known standards ever.

• They are implemented by more than a million

organizations in some 175 countries.

• ISO 9001 helps organizations to implement quality

management.

• ISO 14001 helps organizations to implement

environmental management.
 Quality management
• ISO 9001 is for quality management.
• Quality refers to all those features of a product (or
service) which are required by the customer.
• Quality management means what the organization
does to
• ensure that its products or services satisfy the
customer's quality requirements and
• comply with any regulations applicable to those
products or services.
 Quality management (cont.)
• Quality management also means what the
organization does to
• enhance customer satisfaction, and
• achieve continual improvement of its
performance.
 Environmental management
• ISO 14001 is for environmental
management. This means what the
organization does to:
• minimize harmful effects on the
environment caused by its activities,
• to conform to applicable regulatory
requirements, and to
• achieve continual improvement of its
environmental performance.
 Generic standards
ISO 9001 and ISO 14001 are generic
standards.
Generic means that the same standards
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.
 Generic standards (cont.)
Generic also signifies that
• no matter what the organization's scope of
activity
• if it wants to establish a quality
management system, ISO 9001 gives the
essential features
• or if it wants to establish an
environmental management system,
ISO 14001 gives the essential features.
 Management systems
• Management system means what the organization
does to manage its processes, or activities in order that
• its products or services meet the organization’s
objectives, such as
• satisfying the customer's quality requirements,
• complying to regulations, or
• meeting environmental objectives
 Management systems
• To be really efficient and effective, the organization can
manage its way of doing things by systemizing it.
• Nothing important is left out.
• Everyone is clear about who is responsible for doing
what, when, how, why and where.
• Management system standards provide the organization
with an international, state-of-the-art model to follow.
 Management systems (cont.)
• Large organizations, or ones with
complicated processes, could not function
well without management systems.
• Companies in such fields as aerospace,
automobiles, defence, or health care
devices have been operating management
systems for years.
• The ISO 9001 and ISO 14001
management system standards now make
these successful practices available for all
organizations.
 Processes, not products
• Both ISO 9001 and ISO 14001 concern
the way an organization goes about its
work.
• They are not product standards.
• They are not service standards.
• They are process standards.
• They can be used by product
manufacturers and service providers.
 Processes, not products (cont.)
• Processes affect final products or
services.
• ISO 9001 gives the requirements for what
the organization must do to manage
processes affecting quality of its
products and services.
• ISO 14001 gives the requirements for
what the organization must do to manage
processes affecting the impact of its
activities on the environment.
 Certification and registration
• Certification is known in some countries
as registration.
• It means that an independent, external
body has audited an organization's
management system and verified that it
conforms to the requirements specified in
the standard (ISO 9001 or ISO 14001).
• ISO does not carry out certification and
does not issue or approve certificates,
 Accreditation
• Accreditation is like certification of the certification
body.
• It means the formal approval by a specialized body - an
accreditation body - that a certification body is competent
to carry out ISO 9001:2008 or ISO 14001:2004
certification in specified business sectors.
• Certificates issued by accredited certification bodies -
and known as accredited certificates - may be
perceived on the market as having increased credibility.
• ISO does not carry out or approve accreditations.
 Certification not a requirement
• Certification is not a requirement of ISO
9001 or ISO 14001.
• The organization can implement and
benefit from an ISO 9001 or ISO 14001
system without having it certified.
• The organization can implement them for
the internal benefits without spending
money on a certification programme.
 Certification is a business
decision
• Certification is a decision to be taken for
business reasons:
• if it is a contractual, regulatory, or market
requirement,
• If it meets customer preferences
• it is part of a risk management
programme, or
• if it will motivate staff by setting a clear
goal.
 ISO does not certify
• ISO does not carry out ISO 9001 or ISO
14001 certification.
• ISO does not issue certificates.
• ISO does not accredit, approve or control
the certification bodies.
• ISO develops standards and guides to
encourage good practice in accreditation
and certification.
 The ISO 9000 family
• ISO 9001 is the standard that gives the
requirements for a quality management
system.
• ISO 9001:2008 is the latest, improved
version.
• It is the only standard in the ISO 9000
family that can be used for certification.
• There are 16 other standards in the
family that can help an organization on
specific aspects such as performance
 The ISO 14000 family
• ISO 14001 is the standard that gives the requirements
for an environmental management system.
• ISO 14001:2004 is the latest, improved version.
• It is the only standard in the ISO 14000 family that can
be used for certification.
• The ISO 14000 family includes 21 other standards that
can help an organization specific aspects such as
auditing, environmental labelling, life cycle analysis…
The ISO Survey
 The ISO Survey (cont.)
• The worldwide total of certificates to
ISO 9001:2001 at the end of 2007 was
951 486.
• This was increase of 6 % over 2006 when
the total was 896 929 certificates.
• Certificates had been issued in 175
countries compared to 170 the previous
year.
The ISO Survey (cont.)
 The ISO Survey (cont.)
• The worldwide total of ISO 14001
certificates at the end of 2007 was 154
572.
• This was an increase of 21 % over 2006
when the total was 128 211.
• Certificates had been issued in 148
countries compared to 140 the year
before.
 Benefits of ISO 9001 and ISO
14001
• International, expert consensus on state-
of-the-art practices for quality and
environmental management.
• Common language for dealing with
customers and suppliers worldwide in
B2B.
• Increase efficiency and effectiveness.
• Model for continual improvement.
 Benefits of ISO 9001 and ISO
14001 (cont.)
• Model for satisfying customers and other
stakeholders.
• Build quality into products and services
from design onwards.
• Address environmental concerns of
customers and public, and comply with
government regulations.
• Integrate with global economy.
Benefits of ISO 9001 and ISO
14001 (cont.)
• Sustainable business
• Unifying base for industry sectors
• Qualify suppliers for global supply
chains
• Technical support for regulations
 Benefits of ISO 9001 and ISO
14001 (cont.)
• Transfer of good practice to developing
countries
• Tools for new economic players
• Regional integration
• Facilitate rise of services
 More information
• ISO 9000/ISO 14000 section on ISO Web
site:
www.iso.org
• ISO Management Systems magazine
www.iso.org/ims
• IMS Alerts free electronic newsletter
www.iso.org/imsalerts
Why is ISO 9000 Important?

• ISO 9000 is important because of its orientation.

• ISO 9000 is important because of its international

orientation. .
• ISO is also important because of its systemic
orientation.
• if you want to have a quality attitude you must have a quality
system. This is what ISO recognizes, and this is why ISO 9000
is important.
Why has ISO 9000 become so
important?

• For the first time, there is one

internationally accepted
standard of quality.
• There is a way to determine
and measure that quality.
• There is even a way to prove
it..
 DID YOU KNOW???
• In the U.S., the Department of Defense
(DoD) is considering replacing its MIL-Q
standard with the ISO 9000 series. The
U.S. Food and Drug Administration
(FDA) has plans to incorporate it into its
Good Manufacturing Practices policy
 What about TQM?
• Total Quality Management (TQM) is yet
another way of approaching quality
processes for your organization and
may help support your ISO 9000
certification.

• In fact, many of the practices and

policies of TQM are comparable to the
ISO 9000 model.
 What about TQM?
• Manufacturing experts agree that ISO 9000
certification provides a solid foundation for
developing a TQM system. And if undertaken
together, relatively little extra effort or expense is
needed to achieve both.
• Even two companies who do business with each
other may disagree on the standards. ISO 9000
standards are clearly defined and internationally
accepted. And that makes ISO 9000 an
excellent place to launch your TQM initiative
How can a company determine whether
it will benefit from ISO 9000
certification?
• International
• Does your company, or the companies you supply,
have a global focus?
• Do you, or others in your industry, derive a significant
amount of revenue from international business?
• Do you see that as a future growth opportunity for
your organization?
How can a company determine whether it
will benefit from ISO 9000 certification?

• New business
o Are you getting ISO 9000 inquiries from the companies
you sell to?
o Are there other companies you could do business with, if
you gained ISO 9000 certification?
o Do you do business with any government agencies?
Would that represent a new source of business for you in
the future?
How can a company determine whether it
will benefit from ISO 9000 certification?

• Quality
• Is quality an integral part of your entire
organization, across all functions?
• Is your company's reputation based on quality?
Is that one of the important selling points in the
industry in which you compete?
• Do you want to give your existing quality
assurance program a platform to improve
quality?
• Most importantly, do you see quality as a
competitive edge that could help you accomplish
your organization's goals in the 90s?
• If you answered "yes" to several of these
questions, your organization may benefit from
ISO 9000 certification.
 FACTS
• ITC Hotel Maurya Sheraton was the first hotel
in India to get ISO 14001. ...
• IndiaMART becomes the first ISO
Certified Dotcom Company
 Can I quantify exactly what it will be
worth?
• Unlike many TQM initiatives or general quality improvements,
the benefits of ISO 9000 certification have been studied and
quantified.
• In a September 1991 study for the British government, Survey of
Quality Consultancy Scheme Clients 1988-90, researchers
(Pera International and Salford University Business Service Ltd.)
contacted over 2300 firms. The survey of registered companies
found that:
o 89% reported greater operational efficiency
o 48% reported increased profitability
o 76% reported improvement in marketing
o 26% reported increased export sales
 Can it give a competitive edge?
• You can use ISO 9000 certification to
gain or maintain approved vendor
status, even when companies reduce
the number of their suppliers.
• You can enter new and lucrative
markets that were previously closed to
you.
 Can it give a competitive edge?

• You can successfully compete with

virtually any other company in your
industry.
• In fact, small and medium-sized
companies are using ISO 9000 to win
business away from much larger
organizations.
• Documentation is at the core
• "Documentation sounds simple, but it's
one of the principal things that must
happen with ISO 9000."
- Mark Morrow, Sr. Editor, Quality
Systems Update
What's so funny about ISO 9000?

• Arguing with an ISO

9000 auditor is like
wrestling with a pig
in mud . . .
Sooner or later you
realize the pig
enjoys it!
 How True Is The Story ?
• This is one of those stories that get circulated via fax from time to time.
Could the aerospace company described below get ISO certified? What
are your thoughts?
• Once upon time, an aerospace company in Maryland and a Japanese
automobile company decided to have a competitive boat race on the
Potomac river. Both teams practiced hard and long to reach their peak
performance. On the big day they both felt as ready as they could be.
• The Japanese won by a mile.
• Afterwards, the American team became very discouraged by the loss
and morale sagged. Corporate Management decided that the reason
for the crushing defeat had to be found. A "Continuous Measurable
Improvement" team was set up to investigate the problem and to
recommended appropriate corrective action. Their conclusion:
• The problem was that the Japanese team had eight people rowing and
one person steering, whereby the American team had one person
rowing and eight people steering. The American Company Steering
Committee immediately hired a consulting firm to do a study on the
management structure. After some time and millions of dollars, the
consulting firm concluded that "Too many people were steering and not
enough rowing!"
• To prevent losing to the Japanese again next year, the team's
management structure was totally reorganized to four Steering
Managers, three Area Steering Managers, one Staff Steering
Manager and a new performance system for the person rowing
the boat to give him more incentive to work harder. "We must
give him empowerment and enrichment. That should
accomplish our Total Quality Management goals!!"
• The next year the Japanese won by two miles.
• Humiliated, the aerospace company laid off the rower for poor
performance, sold the paddles, canceled all capital investment
for new equipment, halted development of a new boat, gave a
"High Performance" award to the consulting firm, then
distributed the money saved as bonuses to the senior
executives
 NEED
• Many manufacturers even have to undergo
customer-driven "quality audits," which can be
expensive and time-consuming.

• ISO 9000 practically eliminates the need for

many customer-driven quality programs.

• ISO 9000 certification is a uniform standard,

accepted and recognized internationally. So you
save money.
 NEED

• you begin to accrue benefits even before

you achieve ISO 9000 certification.
• The preparation for ISO 9000 registration
involves a close analysis of your existing
quality systems.
• ISO 9000 can improve overall business
efficiency
 NEED
• ISO 9000 can ensure timely, accurate,
accessible information

• ISO 9000 can help you develop "best

practices" and eliminate costly surprises

• ISO 9000 improves the quality of your

information
 NEED FOR ISO
• Companies who have achieved ISO 9000 certification
enjoy a significant advantage in satisfying their
customers and gaining new ones. It also helps maintain
approved vendor status, as the trend is to reduce the
number of suppliers.
• In fact, a recent study of certified companies revealed
that ISO 9000 certification had also brought unexpected
benefits, such as greater operational efficiency,
increased profitability, savings in administrative
costs, and improvements in marketing and sales
activity.
 NEED
• Standards make an enormous contribution
to most aspects of our lives - although
very often, that contribution is invisible.
• We are usually unaware of the role played
by standards in raising levels of quality,
safety, reliability, efficiency and
interchangeability - as well as in providing
such benefits at an economical cost.
 NEED
• ISO standards also have important
economic and social repercussions. ISO
standards make a positive difference, not
just to engineers and manufacturers for
whom they solve basic problems in
production and distribution, but to society
as a whole.
 NEED
. They are useful to
• industrial and business organizations of all
types,
• to governments and other regulatory bodies,
• to trade officials,
• to conformity assessment professionals,
• to suppliers and customers of products and
services in both public and private sectors,
• and, ultimately, to people in general in their roles
as consumers and end users
 NEED
• ISO standards contribute to making the development,
manufacturing and supply of products and services more
efficient, safer and cleaner.
• They make trade between countries easier and fairer.
• They provide governments with a technical base for
health, safety and environmental legislation.
• They aid in transferring technology to developing
countries.
• ISO standards also serve to safeguard consumers, and
users in general, of products and services - as well as to
make their lives simpler.
 NEED FOR ISO

• ISO 9000 is sweeping the world. It is

rapidly becoming the most important
quality standard.
• Thousands of companies in over 100
countries have already adopted it, and
many more are in the process of doing so.
Why?
• Because it controls quality.
• It saves money.
• Customers expect it.
• And competitors use it.
 NEED FOR ISO
• In a word, customers.
• More than just a quality standard, ISO 9000 has become a
competitive advantage.
• In many countries, ISO 9000 compliance is a must for
organizations that sell to buyers of industrial products. In the
U.S. and Canada, it is becoming increasing important to
manufacturers across all industries.
 NEED
• A simple but comprehensive set of instructions
(procedures, work instructions, etc) that enable
consistency of work practices and ease training
of new staff.
• Accurate reporting mechanisms that enable the
identification of adverse trends and the
implementation of effective corrective action.
• Achievement of specific goals.
• Improved worker confidence and participation.
 NEED
• Achievement of world’s best practice.
• Improved efficiency and productivity.
• Effective management of risk.
• Improved marketability of products locally and
internationally
• Reduction in paperwork
• Automation of document flows
• Improvement in morale
• Effective record management
 FACTS
• ISO Quality Standard Provides Corporations With Substantial
Financial Rewards
• U.S. publicly held companies traded on the New York Stock
Exchange that receive certification under the International
Standards Organization's 9000 quality standard show
significant improvement in financial performance compared to
those companies that have not pursued the standard, according
to researchers. In analyzing the impact of ISO 9000
certification on publicly traded firms, researchers from UCLA,
the University of Maryland and the Universidad Carlos III in
Madrid, found that there is a direct correlation with a firm's
return on assets.
 How ISO standards benefit
society
• For businesses, suppliers can base the
development of their products and
services on specifications that have wide
acceptance in their sectors. This, in turn,
means that businesses using International
Standards are increasingly free to
compete on many more markets around
the world.
 BENEFITS
• According to leading experts, the ISO 9000
standards result in greater operational
efficiency, increased productivity, reduced
overtime payments, reduced administrative
costs and the elimination of unnecessary
procedures.
• And while some people think that ISO 9000
benefits are mainly for large organizations,
studies have shown that they also produce
significant savings for smaller companies,
such as sub-contractors.
 BENEFITS
• For customers, products and services are
based on International Standards brings
them an increasingly wide choice of offers,
and they also benefit from the effects of
competition among suppliers.
• For governments, International
Standards provide the technological and
scientific bases underpinning health,
safety and environmental legislation.
 BENEFITS
• For trade officials International
Standards create "a level playing field" for
all competitors. International Standards
are the technical means by which political
trade agreements can be put into practice
 BENEFITS
• For developing countries, important
source of technological know-how. By
defining the characteristics that products
and services will be expected to meet on
export markets, International Standards
give developing countries a basis for
making the right decisions when investing
their scarce resources and thus avoid
squandering them.
 BENEFITS
• For consumers, conformity of products and
services to International Standards provides
assurance about their quality, safety and
reliability.
• For everyone, International Standards can
contribute to the quality of life in general by
ensuring that the transport, machinery and tools
we use are safe.
• For the planet we inhabit, International
Standards on air, water and soil quality, and on
emissions of gases and radiation, can contribute
to efforts to preserve the environment.
 FACTS
• DAV Centenary Public School has attained
international standards of quality by being
recommended for ISO 9001:2000. This is
perhaps the first school in the Rohtak, Jhajjar,
Sonepat, Bhiwani, Mohindergarh, Panipat,
Karnal, Rewari, Hisar and Sirsa region which
has been recommended for this certification.
The change in percentage gross profit of ISO 9000 registered companies
above a control of non-registered companies.
Performance of certified and non-certified companies in the industrial
machinery and computer industry
The ISO 9000 sample's average percentage deviation before and after
certification compared to non-certified organizations
 FACTS
• CINCINNATI, OH, January 1, 2005 — First
Vehicle Services, a leader in the fleet
management and maintenance industry,
announced today that it has become the first
and only company in the fleet management
market to receive ISO9001:2000 certification.
 CASE STUDY

BACKGROUND

'Tech. Co.' is a sales and distribution organisation based in the UK.

All products sold by the company are manufactured by its parent company
overseas. The products are high-technology products, they are sold to
business and government customers.

Originally the company had seven divisions (organised by product) and each
division had its own sales order function. It had recently centralised the sales
order functions - in a structural sense - but the people who worked within
product divisions still processed orders for the same products. The primary
change with centralisation was standardisation of working procedures.

Tech. Co. decided to register to ISO 9000 three years ago

•REASONS

•Government customers were insisting on it.

•It was also felt that the company might achieve some benefits from clarity of
working procedures.

•Registration to ISO 9000 meant the creation of nine manuals of procedures.

One for each type of product, one called quality and one for the warehouse.
The manuals documented what should be done at each stage of an order,
nothing had been left out.

•The standard procedures meant that people wouldn't get things wrong. The
organisation viewed salespeople as needing to be controlled - "They won't be
able to get away with giving administrators inadequate information and what
they provide has to be written down".

•It also saw advantages in controlling customers: "Because we have controlled

procedures we can prove to them what they have ordered if there is any
dispute".
 Has ISO 9000 contributed to
performance?
• SALES

There had been a cultural tradition of sales being 'heroes', they had
treated 'back office' staff work as drudgery, they were always
seeking last-minute changes and rarely were accurate with their
form-filling.

When asked whether the new procedures had improved

performance, no-one could say. There had been no collection of
data on the performance of the administrative practices prior to the
new procedures and hence it was not possible to determine whether
things were better or worse.
'GOODS RETURNED'

• Goods returned stayed at the same level as prior to registration (suggesting

no change to the performance of the system). What did change was the way
returned goods were handled?
• ISO 9000 has a requirement to control product which is returned by customers
('control of non-conforming product'). All goods returned by customers were
now held in 'quarantine', pending authorisation for release into the warehouse
(for re-use).

• After a considerable debate about what to do with returned product as

Tech. Co.'s products are sensitive to excesses of temperature and light a
compromise was developed.

• It was argued that product returned within fifteen days would be likely not to
have been subjected to adverse conditions. The procedure for returned product
required the warehouse supervisor to check date of receipt against date of
despatch and, where it fitted the new rule, to send a list of returned product to a
director for signature. Signatories were hard to find. When they were available,
they were not inclined to think of signing forms from the warehouse as their top
priority.
•But no-one asked: Why do we have product being returned? - with a view to
eradicating it.

•Have we ever had a problem with product being returned and then sent out
as another order? The answer, when asked, was no.

•If they had viewed their organisation as a system, they would have known
that returned product had not shown signs of fault and would have taken the
view that customers' receiving faulty goods would have been an unlikely
occurrence. In the unlikely event of a customer receiving faulty goods, the
organisation could respond by engaging in excellent 'repair'. A good way to
show customers what matters to you.
•Their view now, is that ISO 9000 is the foundation for other things to happen.
They felt that without it, they would have been unable to get a company-wide
focus for the quality effort.

•The managers argued that ISO 9000 registration produced benefits. Processes
were more clearly defined and that resulted in less waste or more efficiency.
They had recognised and sought to avoid unnecessary bureaucracy, and even
went a further step away from the norm by getting rid of procedures, using flow-
charts to provide clarity of focus.

•The extent to which ISO 9000 can or will improve economic performance will
depend on features of the Standard (and their interpretation) and features of the
company's current culture
CONCLUSION

The three most important benefits of ISO 9000 were seen as better
management control, greater awareness of procedural problems and
promotional value.

•Those most satisfied with the impact of ISO 9000 on their organisations
had sought the Standard for better management control and improved
customer service.

•Companies with ISO 9000 certification showed a significantly higher rate

of sales growth than the national average and were four times more likely
to have survived the recent recession.

•Company certificationÖhas grown by 10,000 certificates a year since

1992Öcertification in Europe has doubled every nine months since 1993
and there are now 95,000 certificates world-wide.
 QUALITY SYSTEM

Organizational Structure Procedures,

Processes and Resources needed to
implement Quality Management
 ISO 9001 : 2000

WHAT IS IT ? – WHAT DOES IT DO ?

• A Model for Quality Management Systems

• Defines Minimum Requirements for QM

Systems

• Provides a base line for Assessment and

Certification

COMMON SENSE MANAGEMENT

 ISO 9001 : 2000 - SCOPE

General
• Needs to demonstrate consistency
• Aims to enhance Customer Satisfaction
Application
• Generic and intended to be applicable to all
Organizations, Type, Size and Product
• Requirements that are not applicable can be
considered for exclusion
 THE FOUR ABSOLUTES OF
QUALITY
1. QUALITY IS CONFORMANCE TO
REQUIREMENTS
Do What you said you would do
2. THE SYSTEM FOR PRODUCING QUALITY IS
PREVENTION NOT APPRAISAL
Solve Problems permanently
3. THE PERFORMANCE STANDARD IS ZERO
DEFECTS
Right First Time and Every Time
4. QUALITY IS MEASURED BY THE COST OF NON-
CONFORMANCE
Repair / Rework is paid for out of Profits
 QUALITY CONTROL –
QUALITY ASSURANCE
• Quality Control is REACTIVE whereas
Quality Assurance is PROACTIVE
• Quality Control deals with DETECTION
Quality Assurance deals with PREVENTION
i.e. All the planned and systematic actions
necessary to prevent problems and ensure
confidence that the product will satisfy the
requirements for quality
 QUALITY ASSESSMENT

Comparison of a Quality Management

System with the requirement system
with the requirements of a standard or
standards to determine the degree of
compliance with the specified
requirements
 QUALITY ASSURANCE

Part of Quality Management, focused

on providing confidence that Quality
requirements will be fulfilled

ISO 9000 : 2000

 QUALITY MANAGEMENT
SYSTEMS

Management System to direct and

control an Organization with regard to
Quality

ISO 9000 : 2000

 QUALITY AUDIT

systematic, independent and

documented process for obtaining audit
evidence and evaluating it objectively
to determine the extent to which the
audit criteria are fulfilled

ISO 19011 : 2002

 AUDIT CRITERIA

Set of policies, procedures or

requirements

AUDIT EVIDENCE

Records, statements of fact or other

information, which are relevant to the
audit criteria and verifiable
 AUDITS

Objectives
• Determination of Compliance with specified
Requirements
• Identification of Weakness
• Management Tool for Improvement

Planned and Independent

Defined Standards and / or Procedures
 AUDIT OBJECTIVES

• To determine Compliance or Non-

Conformity of the Quality System
elements with specified requirements
• To determine the effectiveness of the
implemented Quality System in meeting
Quality objectives
• To afford an opportunity to improve the
Quality System
Cont…
 AUDIT OBJECTIVES

• To meet regulatory Requirements

• To Permit the listing of the Audited

Organization in the Register of Audited
Companies
 AUDITS

1st PARTY INTERNAL

2nd PARTY EXTERNAL
3rd PARTY EXTRINSIC
PRODUCT PROCESS
SERVICE SYSTEM
QUALITY FINANCIAL
ENVIRONMENTAL
 AUDITS

1st PARTY INTERNAL

• Required by ISO and Other Standards

• Any Trained personnel can be used
• Documentation Awareness
• Timing / Timescales easily adjusted to suit
individuals
• Advice / Assistance with corrective actions
• Must not replace responsibility for Quality
 AUDITS

2nd PARTY EXTERNAL

• Supplier or Sub-Contractor approval

• Quality Personnel-Role
• Choice of Standards
• Timing / Timescales more important
• Team Leader’s Authority
• The power of the contract
 AUDITS

3rd PARTY EXTRINSIC

• Totally Independent
• International / National Standards
• Qualified or Registered Assessors
• Timing / Timescales very important
• Team Leader only Recommends
 CONDUCT OF THE AUDIT

• Enter the area

• Introductions by guide
• Explain what you want to see
• Investigate to the depth necessary
• No problems found, move on
• Don’t keep on auditing until problems
are found
 SPECIFIED REQUIREMENTS

• Customer requirements
• Quality system requirements
– Manuals
– Procedures / work instructions
• Quality standard
• Legal requirements – statutory,
regulatory or industry body
• Regulations of registration body
 AUDIT PROGRAMME
RESPONSIBILITIES
Those assigned the responsibility for managing
the audit programme should
• Establish the objective and extent of the audit
programme
• Establish the responsibilities and procedures,
and ensure resources are provided
• Ensure the implementation of the audit
programme
• Ensure that appropriate audit programme
records are maintained, and
• Monitor, review and improve the audit
 AUDIT PROGRAMME
RESOURCES
When identifying resources for the audit
programme, consideration should be
given to
• Financial resources necessary to
develop, implement, manage and
improve audit activities
• Audit techniques

Cont…
 AUDIT PROGRAMME
RESOURCES
• Process to achieve and maintain the
competence of auditors, and to improve
auditor performance
• The availability of auditors and technical
experts having competence appropriate to
the particular audit programme objectives
• The extent of the audit programme and
• Travelling time, accommodation and other
auditing needs
 AUDIT PROGRAMME
PROCEDURES
Audit programme procedures should
address the following
• Planning and scheduling audits
• Assuring the competence of auditors
and audit team leaders
• Selecting appropriate audit teams and
assigning their roles and responsibilities
Cont…
 AUDIT PROGRAMME
PROCEDURES
• Conducting audits
• Conducting audit follow-up, if applicable
• Maintaining audit programme records
• Monitoring the performance and
effectiveness of the audit programme
• Reporting to top management on the
overall achievements of the audit
programme
 AUDIT PROGRAMME
IMPLEMENTATION
The implementation of an audit programme
should address the following:
• Communicating the audit programme to
relevant parties
• Coordinating and scheduling audits and other
activities relevant to the audit programme
• Establishing and maintaining a process for
the evaluation of the auditors and their
continual professional development
Cont…
 AUDIT PROGRAMME
IMPLEMENTATION
• Ensuring the selection of audit teams
• Providing necessary resources to the audit
teams
• Ensuring the conduct of audits according to
the audit programme
• Ensuring the control of records of the audit
activities
• Ensuring review and approval of the audit
reports, and ensuring their distribution to the
audit client and other specified parties
• Ensuring audit follow-up, if applicable
AUDIT PROGRAMME RECORDS

Records should be maintained to demonstrate

the implementation of the audit programme
and should include the following:
• Records related to individual audits, such as
– Audit plans
– Audit reports
– Nonconformity reports
– Corrective and preventive action reports, and
– Audit follow-up reports, if applicable
Cont…
AUDIT PROGRAMME RECORDS

• Results of audit programme review

• Records related to audit personnel
covering subjects such as
– Auditor competence and performance
evaluation
– Audit team selection, and
– Maintenance and improvement of
competence
 AUDIT PROGRAMME
MONITORING AND REVIEWING
The audit programme review should
consider, for example
• Results and trends from monitoring
• Conformity with procedures
• Evolving needs and expectations of
interested parties
• Audit programme records
• Alternative or new auditing practices, and
• Consistency in performance between audit
teams in similar situations
 AUDITOR ATTRIBUTES

• Must be proficient in sector

• Proficient in auditing Top Management
• Proficient in legal requirements
• Understand the process
• Understand the interaction of process
• Team player

Cont…
 AUDITOR ATTRIBUTES

Local Requirements
• Culture
• Practices
• Approach

Cont…
 AUDITOR ATTRIBUTES

Auditors must be flexible to -

• Changing situations
• Differing Management styles
• Differing Management / Employee levels

Auditors must be competent in -

• Reasoning of Non-Conformities
• Evaluating effectiveness of corrective action
Cont…
 AUDITOR ATTRIBUTES

• Open minded • Tenacious

• Diplomatic • Decisive

• Observant • Self reliant

• Perceptive • Ethical
 AUDITORS RESPONSIBILITIES

• Developing the audit schedule

• Ensure team is always punctual
• The agreed programme is adhered to
• Valid restrictions are observed
• Team members complete designated
tasks
• Confidentiality is preserved
Cont…
 AUDITORS RESPONSIBILITIES

• Arguments are avoided

• No criticism is levelled at individuals
• Chairs all meetings:- opening, review,
team and closing
• Summarise findings
• Makes recommendation
• Files audit report
 AUDITOR DUTIES

• Support the team leader

• Prepare checklist
• Arrive on time
• Participate at opening meeting
• Carry out assigned tasks
 AUDITOR DUTIES

• Keep to the timetable

• Document all findings
• Keep auditee informed
• Assist team leader with reports
• Safeguard all documents
• Maintain confidentiality
 AUDITOR TRAINING

Auditor Training should consider the following:

• Knowledge & Understanding of the standards
used to Audit Quality Systems
• Audit Techniques such as Examining,
Questioning, Evaluating and Reporting
• Additional skills needed to manage an audit
E.g.: Planning, Organizing, Communicating
and Directing
 COMMUNICATION
 The imparting, conveying or exchanging of ideas,
knowledge etc. whether by speech, writing or sings.
 Ensure that the message given is received……. and
understood
 Message content
 Words spoken
 Verbal style and sound
 Non-verbal
Facial expression
Body language
 OPEN QUESTIONS

Tell me:
• Who (does it)
• What (is done)
• Where (is it done)
• Why (is it done)
• When (does it get done)
• How (is it done; often is it done)
• Show me
 THE AUDIT CYCLE

PREPARATIONS
 Documentation Review
 Preliminary visit
 Audit Planning

PERFORMANCE
 Opening Meeting
 Gathering Information
Cont…
 THE AUDIT CYCLE

 Team Meetings
 Non-Conformity Reporting
 Closing Meeting

FOLLOW-UP ACTIONS
 Audit Report
 Corrective Action Verification
 Surveillance
 THE OPENING MEETING

• Introductions
• Confirm Standard, Scope and Audit Authority
• Confirm Audit Plan and Other arrangements
• Outline Audit Method
• Confirm Guides and their Authority
• Confirm Confidentiality
• Staff / Employee Issues
• Any Relevant Questions
• Close Meeting
 TEAM MEETINGS
• Discuss the Findings of Team
• Team Leader Agrefs:
– Non-Conformities
– Wording
– Categorization
• Resolve any Issues
• Identify any modifications to the programme as a
result of the findings to Date
OBJECTIVE
Ensure that the Team presents a unified
response at the wash-up meeting
 WASH-UP MEETINGS

• Presentation of findings to Date

• Resolution of any issues
• Agree Non-Conformity Categorization
• Obtain signatures and possible corrective
action completion dates
• Monitor Audit Progress
• Monitor Auditor / Company interrelationships
• Keep everyone informed. No surprises at the
closing meeting
 CLOSING MEETING AGENDA
• Thank Company and Guides

• Confirm Standard and Scope

• Disclaimer

• Confirm Confidentiality

• Define Categories of Non-Conformities

• Questions Deferred Cont…

 CLOSING MEETING AGENDA
• Findings Presented

• Team Leaders Summary

• Recommendations

• Questions Answered

• Corrective Action Dates Agreed

• Close Meeting
 RECOMMENDATIONS

The Company’s Quality System:

• Meets the Requirements of ISO 9001:2000
Registration to the agreed scope will be
recommended
• Will meet the requirements of ISO 9001:2000
Registration will be deferred until the
completion and verification of the necessary
corrective actions
• Does not meet the requirements of ISO 9001:
2000 Registration cannot be recommended
 FOLLOW-UP ACTIONS

• Deferred Registration
Close out or Down rate all outstanding Major
/ Hold point Non-Conformities. Clear as
many Minor / On-Going improvements as
possible

• Routine Surveillance visits

• Re-Registration
 AUDIT REPORT
• Report Identification

• Purpose, Objective and Scope of the Audit

• Details of Auditors, Dates etc

• Reference documents (e.g. Quality Manual,

Procedures)

• Summary of Audit Results as declared at the Closing

Meeting
Cont…
 AUDIT REPORT
• Details of all Non-Conformities and Observations

• Reference to any additional supporting Evidence

• Recommendations

• Conclusions

• Distribution
 NOTE TAKING

Recording the objective evidence:

• Admissible statements
• Document numbers and issue/revision
levels
• Identifiers
• Departments
• Name of auditee
Cont…
 NOTE TAKING

• Notes could be used as reference for:

– Immediate investigation
– Investigation later
– Use by a colleague
– Subsequent audits

• Notes must therefore be:

– Legible
– Retrievable

Cont…
 NOTE TAKING

• Notes taken during an audit are a

record of:
– The audit sample taken
– What was reported
– What was observed

• Notes may be referenced by

subsequent auditors
 NONCONFORMITY

A situation where there is a likelihood

that nonconforming product or service
will occur, or where the benefits of the
management standard are not being
realized, because of the absence of, or
lack of adherence to a procedure

Cont…
 NONCONFORMITY

• Non fulfillment of a requirement

• Specified requirements
– conditions of contract
– quality standard
– quality manual
– procedures
– legal regulatory requirements

Cont…
 NONCONFORMITY

• Manual is not conforming with the

quality standard
(intent)
• Practice is not in line with the intent
(implementation)
• Practice is not effective
(effectiveness)
 OBJECTIVE EVIDENCE

• Data supporting the existence or verity

of something – ISO 9000 : 2000
• May be obtained through observation,
measurement, test or other means
• May be stated or (preferably)
documented
• Can be verified
 ESTABLISH THE FACTS

• Get help form the auditee

• Discuss concerns
• Verify the findings
• Record all the evidence:
– exact observation
– where, what, etc…
• Establish why a nonconformity or otherwise
• State who (if relevant) – preferably by job title
Cont…
 ESTABLISH THE FACTS

• Use auditee’s terminology

• Make it retrievable

• Make it helpful

• Make it concise
CONSIDER THE SERIOUSNESS

Two questions to be answered -

• What could go wrong if the
nonconformity remains uncorrected

• What is the likelihood of such a thing

going wrong
 THE PURPOSE OF NCR’S

To convey your findings to the company in a

clear, concise and accurate way so that they
know exactly what needs to be done
To provide a record that gives an accurate
picture which can subsequently be reviewed
remotely from the company
To ensure that another auditor can follow up
the corrective action on your findings just as
easily as you would yourself
 NCR WORDING

 Report exactly what you observed

 Give a factual report, not a commentary or
opinion
 Write legibly – If you can’t – then print
 Choose your words with care for easy
reading
 Avoid the use of adjectives and adverbs
 Try to use words and phrases taken from the
chosen paragraph of the standard Cont…
 NCR WORDING

 Choose the requirement paragraph with care

as a guide to corrective action
 Establish “TRACEABILITY” in your report. Be
specific – Quote Details
 Report accurately – But no personal criticism
 Be sure that your report is based on
“UNSHAKEABLE” facts
 CERTIFICATION

Audit against the Requirements of ISO 9000 :

2000 by an accredited certification body
which approves then registers or certifies the
supplier resulting in:
Issue of a Certificate
Entry in the DTI Register
Use of LOGO on Literature

NOTE
CERTIFICATION BODIES DO NOT
ACCREDITATE SUPPLIERS
 ACCREDITATION

The term Accreditation in the context of

Quality Systems is used to denote
certification bodies who’s ability to audit
against the requirements of ISO 9000 has
been independently audited by a National
Authority using agreed criteria

NOTE
Most people assume Accreditation and
Certification to be the same thing – they
are not
A SYSTEMATIC APPROACH TO
QUALITY AUDITING
SELECT
(1)
(1) A Process or an
element of Q. system

No
DOCUMENTED?

Repeat
cycle as (2) 1st check only
necessary
DOC’N No
SATISFACTORY?
(2)

(3) Plus 2nd check

on documentation
PRACTICE No
SATISFACTORY?
(3)

RAISE
NC FORM

COMPLETE?

Yes
END
NCR CORRECTIVE ACTION CYCLE
NCR IDENTIFIED 3rd PARTY AUDIT

NCR ISSUED

PROBLEM INVESTIGATED
CORRECTIVE ACTION PLANNED

CORRECTIVE ACTION
IMPLEMENTED

CORRECTIVE ACTION
VERIFIED BY AUDIT

NO

YES
NOTIFY
CERTIFICATION BODY

CORRECTIVE ACTION VERIFIED

BY CERTIFICATION BODY

YES
NO
OK NCR ISSUED

FOR MAJOR NCR CORRECTIVE ACTION WILL BE VERIFIED BY AN

ADDITIONAL FOLLOW UP VISIT.

MINOR NCRs MAY BE VERIFIED AT A SUBSEQUENT SURVEILLANCE VISIT.

NON COMPLIANCE REPORT
NON-COMPLIANCE REPORT

STANDARD : AREA : NCR NO. :

NON COMPLIANCE : ( To be filled by Assessor )

PROPOSED CORRECTIVE ACTION : ( To be filled by Assessee )

Assessor Assessee MR Date

IMPLEMENTED CORRECTIVE ACTION :

( To be filled by Assessor )

ROOT CAUSE ANALYSIS :

( To be filled by Assessee )

Assessor Assessee MR Date

FOLLOW UP COMMENTS : ( To be filled by Assessor )