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INSTALLATION AND APPLICATION OF QUALITY MANAGEMENT SYSTEM IN A FOOD MANUFACTURER COMPANY In Partial Fulfillment of the Requirements for the Degree of Bachelor of Arts in Business Administration//International Finance MAY 2004 TABLE OF CONTENTS ABSTRACT 1. CONCEPT OF QUALITY 1.1 WHAT IS QUALITY 1.2 IMPORTANCE OF FOOD QUALITY 2 TOTAL QUALITY MANAGEMENT o DEFINITION OF TOTAL QUALITY MANAGEMENT o APPLICATION OF TOTAL QUALITY MANAGEMENT o TOOLS OF TOTAL QUALITY MANAGEMENT o PRINCIPLES OF TOTAL QUALITY MANAGEMENT 3 METHODOLOGY o WHAT IS ISO 9000 o ADVANTAGES OF ISO 9000 o DISADVANTAGES OF ISO 9000 o ISO 9000 IN FOOD INDUSTRY o IMPLEMENTATION OF ISO 9000 4 FINDINGS 5 CONCLUSION 6 REFERENCE ABSTRACT This paper's aim is to state importance of total quality management and how the total quality management can be installed and applied successfully. Firstly, I mentioned description of the quality and how important the quality concept is. Next, I explained the total quality management, and its principles and tools briefly. After let you detailed about total quality management, I selected ISO 9000 as a model of total quality management system. With the comments of user of ISO 9000, I stated benefits and potential problems of the ISO 9000. Finally, the importance of ISO 9000 in the food industry and the implementation of ISO 9000 is explained to show how the ISO 9000 can be applied in the business. WHAT IS QUALITY The concept of quality with respect to customer satisfaction has been with us since the beginning. However; the formal study of quality is relatively new, dating back to early part of the twentieth century. Over the years, we have seen a variety of definitions for quality. These definitions have ranged in length from a few words to comprehensive discussions. Here are some definitions proposed for "quality" by authorities: Quality is a physical or nonphysical characteristic that constitutes the basic nature of a thing or is one of its distinguishing features, Webster's New World Dictionary. ...read more.


* Understanding the interdependencies between the processes of the system. * Structured approaches that harmonize and integrate processes. * Providing a better understanding of the roles and responsibilities necessary for achieving common objectives and thereby reducing cross-functional barriers. * Understanding organizational capabilities and establishing resource constraints prior to action. * Targeting and defining how specific activities within a system should operate. * Continually improving the system through measurement and evaluation. Principal 6 : Continual Improvement Key Benefits : * Performance advantage through improved organizational capabilities. * Alignment of improvement activities at all levels to an organization's strategic intent. * Flexibility to react quickly to opportunities. Applying the principal of continual improvement leads to : * Employing a consistent organization-wide approach to continual improvement of the organization's performance. * Providing people with training in the methods and tools of continual improvement. * Making continual improvement of products, processes and systems an objective for every individual in the organization. * Establishing goals to guide, and measures to track, continual improvement. * Recognizing and acknowledging improvements. Principal 7 : Factual Approach to Decision Making Effective decisions are based on the analysis of data and information. Key Benefits : * Informed decisions * An increased ability to demonstrate the effectiveness of past decisions through reference to factual records. * Increased ability to review, challenge and change opinions and decisions. Applying the principal of factual approach to decision making leads to : * Ensuring that data and information are sufficiently accurate and reliable. * Making data accessible to those who need it. * Analysing data and information using valid methods. * Making decisions and taking action based on factual analysis, balanced with experience and intuition. Principal 8 : Mutually Beneficial Supplier Relationships An organization and its suppliers are interdependent and a mutually beneficial relationship enhances the ability of both to create value. Key Benefits : * Increased ability to create value for both parties. * Flexibility and speed of joint responses to changing market or customer needs and expectations. ...read more.


Moreover, quality is very important when it is related with the food industry because as I mentioned before "We are that we eat." The food we eat must be safe, clean, and healthy. To provide the food quality, companies who are in the food industry should have total quality management which is a management approach that places emphasis on continuous process and system improvement as a means of achieving customer satisfaction to ensure long-term company success. However, application of TQM is not so easy. There are five important key factors in effective application of TQM; leadership, goals, action plan, total organization commitment, and training. On the other hand, sometimes there may appear some problems in TQM and to solve these problems there are seven tools. For the requirements of the company's quality management system, ISO 9000 which is a set of worldwide standards, was established. While ISO 9000 has advantages, it has also disadvantages. However, Implementing the ISO 9000 is not easy. It starts with creating teams which determine new processes to meet the standard and the teams document the new process, and develop required records, forms, and work instructions. Next, the teams train staff members on how the new process works. When the new processes are complete, Internal Audits and Management Review meetings begin. After the system is used for 2 or 3 months before your registration audit, at least one cycle of internal audits and management reviews are completed. Now, it is time for registration. CONCLUSION If your company is currently doing business in Europe, or plans to expand into the European Community, ISO 9000 registration is your "quality passport" to gain a lot of money in international markets. In near future, especially in food industry, ISO 9000 will be a must to trade in international markets and for not to be behind of the other companies or in different point of view, to be in front of the other companies, you will have to have ISO 9000 registration. Dr. W. Edwards DEMING said "You do not have to do this. Survival is not compulsory" on the importance of ISO 9000. ...read more.

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