UNIT 5

QUALITY SYSYEMS ORGANIZING

AND IMPLEMENTATION
ISO 9004-2000
 ISO 9004-2000 is a Quality management system-
Guidelines for performance improvement.
 It is based on the same quality principles as ISO 9001-
2000.The focus of this standard is the improvement of
the process of the organization in order to enhance its
performance.
 When ISO 9001-2000 and ISO 9004-2000 are used
together the benefit to the organization are likely to
be greater than if only one is used. The two standard
have individual structure but different scopes.
 ISO 9004 is not intended to be used as guidance
document for compliance to ISO 9001.
 The purpose of ISO 9001 is to define the minimum requirements
needed to achieve customer satisfaction by meeting specific
product requirements.

 The purpose of ISO 9004 is to provide guidance on the

application and use of a quality management system to improve
the over all performance of the organization.

 The clauses of ISO 9004-2000 are based on the following eight

management principle:
1.Customer focus.
2.Leader ship.
3.Involvement of people.
4.Process approach.
5.System approach to management.
6.Continual approach.
7.Factual approach to decision making.
8.Mutually beneficial to supplier relationship.
 QUALITY AUDIT
 quality certificates are issued after conducting
quality auditing in a systematic manner.
 quality procedure insist that “document what
you do and do as per document”.
 hence the auditing procedure is aimed at
checking if the practices followed confirms with
the quality.
TYPES OF AUDIT:

First party audit – By your internal system

Conducted by the organization itself
Identifies non-conformities in the system
Suggests corrective actions

Second party audit

Conducted by purchaser on the supplier of goods.
Conducted to assess the suppliers ability to provide quality goods or
services.

THIRD PARTY AUDIT

Consultant/agency- Normally certification is accompanied eg:

ISO 9000 – valid for 3 years subject to success of 5 surveillance
audits. If there is non conformance you are given 3 months time
for corrective action. If there is non conformance in process, then
it is stated by auditors that it should be in place before the next
surveillance.
System audit:

 Checks whether the activities carried out in the

organization complies with documented systems
and procedures.

 Checks whether the organization meets its

obligations on the quality system.

 Checks whether management controls provided

meet the specific requirements.

 Can be performed externally or internally.

Process audit:

 Checks whether the manufacturing or processing

activities are carried out as per documented
procedures and standards.

 Checks for the adequacy, suitability and

effectiveness of the processes.

 Can be performed externally and internally.

Product audit:
 Checks whether the product conform to the
specified standard.

 Checks the accuracy of the measuring equipment

used and test procedures followed.

 Checks whether the products conform to the

environmental regulations.

 Can be performed externally or internally.

LEADERSHIP
JamesMacGregor Burns
One who instills purposes, not one who controls by brute force

Daimler
Chrysler’s CEO Bob Eton
“….Someone who can take a group of people to a place they don’t think they can go

CHARACTERISITCS OF LEADERSHIP:
•Priority Attention to External & Internal Customers
•Empower Subordinates
•Improvement Than maintenance
•Prevention than Cure
•Coordination than Competition among Depts
•Training & Guide Than Directing& Controlling
•Learn from problems
•Communication –Top to lower Mgt- vice versa
•Commitment to Quality
•Suppliers Based Quality not Price
•Organization Structure –Quality
•Encourage Team Work
LEADERSHIP CONCEPTS
o To become successful ,leader requires to understand human natures-Basic
needs, wants and abilities of people
o Gives Security & independence rewards & punishments, word of praise,
Trust& distrust.
o The leadership strategy shown in following Fig. explains that first concentrate
on people building, improve their self esteem and self worth. Train them to
work as a team.
o with the help of the team achieve the target. If this strategy is followed the
organization will be an ever booming and ever lasting organizations.

3. Target
1. People
Building
2. Team
Building
 EMPLOYEE INVOLVEMENT
Employee Involvement is one approach to
improving quality and productivity.
Motivation:- By Needs, Desire, Monetary
Benefits, Incentives, Promotions, Facilities,
Recognition, Etc.
Need For Employee Involvement
 To take Right Decision Making
 Full Knowledge & Skill to be used
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 Solve Problems
 Morale & Commitment
 Leadership
 Creativity & Innovation
MASLOW’S NEED THEORY

SELF -ACTUALISATION

ESTEEM

SOCIAL

SECURITY

SURVIVAL

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HERZBERG’S TWO-FACTOR THEORY
MOTIVATORS
 Recognition,
 Responsibility
 Achievement
 Promotion
 Work Environment

HYGIENE or DISSATISFIERS FACTORS

 Low Salary
 Minimum Benefits
 Poor Working Conditions,
 I ll Defined Organization Policies
 Partiality Perks

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MOTIVATED WORK FORCE
Know Thyself
Know your Employees
Establish a Positive Attitude
Share the goal
Monitor Progress
Develop Interesting Work-Job
Rotation, Enlargement & Enrichment.
Communicate & Celebrate Success

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TEAMS
DEFINITION
A Team is defined as a group of people working together to achieve
common Objectives or Goals.
WHY TEAMS WORK
 More Knowledgeable

 Special Abilities Pool Together

 More Interaction More Cordial Relationship & Better Job

 Better Communication

TYPES OF TEAMS
Process Improvement Team
Cross-Functional Team
Self Directed Teams
Natural Work Teams

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BARRIERS TO TEAM PROGRESS
 InsufficientTraining
 Incompatible Compensation
 First Line Supervisor Resistance
 Lack of Planning
 Lack of Management Support
 Lack Union Support
 Project Scope Too Large
 No Clear Measure of Success
 No Sufficient Time Given

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BENEFITS OF EMPLOYEE
INVOLVEMENT
 Empowering
 Better Decisions
 Better improvement
 Corrective Action
 Effective Cooperation &Communication
 Loyalty Increases & Floating Population Reduces
 More Money to Share

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EMPOWERMENT
 To invest people with authority –to tap the potential in
every worker (avoid the wastage of unrealized capacity)
 People have the ability, confidence and commitment to
take the responsibility and ownership to improve the
process, and initiate the necessary steps to satisfy
customer requirements within well-defined boundaries in
order to achieve organizational goals.

CONDITIONS for EMPOWERMENT

 Everyone must understand the need for change

 The system needs to change to the new paradigm
 The organization must enable its employees.
BENEFITS OF TQM
 Greater customer loyalty
 Market share improvement
 Higher stock prices
 Reduced service calls
 Higher prices
 Greater productivity

OBSTACLES IN TQM
Competitive markets
A competitive market is a driving force behind many of
the other obstacles to quality.
One of the effects of a competitive market is to lower
quality standards to a minimally acceptable level.
This barrier to quality is mainly a mental barrier caused
by a misunderstanding of the definition of quality.
Bad Attitudes
 The competitive environment, poor management
practice, and a general lack of higher
expectations have contributed to unproductive
and unhealthy attitudes.
 These attitudes often are expressed in popular
sayings, such as “It’s not my job” and “If I am not
broke, don’t fix it.
 Such attitude sayings stem from the popular
notion that management is always right and
therefore employees are” only supposed to
implement management decisions without
questioning.
 Lack of leadership for quality
Excess layers of management quite often lead to
duplication of duty and responsibility. This has made
the lower employees of an organization to leave the
quality implementation to be a management’s job.
In addition, quality has not been taken as a joint
responsibility by the management and the employees.
Coupled with the notion that management is infallible
and therefore it is always right in its decisions,
employees have been forced to take up peripheral role
in quality improvement.
 Deficiency of cultural dynamism
Every organization has its own unique way of doing
things. This is defined in terms of culture of the
organization.
The processes, the philosophy, the procedures and the
traditions define how the employees and management
contribute to the achievement of goals and meeting of
organizational objectives.
Inadequate resources for total quality management
 Since most companies do not involve quality in their
strategic plan, little attention is paid to TQM in terms
of human and financial resources. Much of the attention
is drawn to increasing profit margins of the
organization with little regard as to whether their
offers/ supply to customers is of expected quality.
Lack of customer focus.
 Most strategic plans of organizations are not customer
driven. They tend to concentrate much on profit-
oriented objectives within a given time frame.
 Little (if any) market research is done to ascertain the
product or service performance in the market relative
to its quality. Su
Lack of management commitment
 A quality implementation program will succeed only
if top management is fully committed beyond public
announcements. Success requires devotion and highly
visible and articulate champions