TOTAL QUALITY MANAGEMENT SYSTEM
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
. CONCEPT OF QUALITY
.1 WHAT IS QUALITY
.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.
Quality, as applied to the products turned out by industry, means the characteristic or group or combination of characteristics which distinguishes one article from another, or goods of one manufacturer from those of his competitors, or one grade for product from a certain factory from another grade turned out by the same factory, Radford.
There are two common aspects of quality, one of these has to do with the consideration of the quality of a thing as an objective reality independent of the existence of man. The other has to do with what we think, feel, or sense as a result of the objective reality; this subjective side of quality is closely linked to value, Shewhart
Quality is fitness for use, Juran
Quality is conformance to requirements, Crosby
Quality should be aimed at the needs of the consumer, present and future, Deming
Quality is the loss a product causes to society after being shipped, other than any losses caused by its intrinsic functions, Taguchi
Quality is the totality of features and characteristics of a product or service that bear on its ability to satisfy stated or implied needs, ISO 9000
Product quality encompasses those characteristics which the product must possess if it is to be used in the intended manner, Mizuno
On the other hand, consumers in different cultures define quality different.
In United States quality is determined by;
. Well-known name
2. Word of mouth
3. Past Experience
4. Performance
And while deciding to buy product they are influenced by;
. Price
2. Quality
3. Performance
In West Germany quality is determined by;
. Price
2. Well-known name
3. Appearance
4. Durability
And their buying decision is influenced by;
. Price
2. Quality
3. Appearance
In Japan quality is determined by;
. Well-known name
2. Performance
3. Easy to use
4. Durability
However, their buying decision is influenced by;
. Performance
2. Price
3. Easy to use
As you see, consumers in Japan do not look at the quality while they are buying the product in contrast of Americans and West Germans.
IMPORTANCE OF FOOD QUALITY
"We are what we eat" is an old proverb. Our nutritional status, health, physical and mental faculties depend on the food we eat and how we eat it. Access to good quality food has been man's main endeavour from the earliest days of human existence. Safety of food is a basic requirement of food quality. "Food safety" implies absence or acceptable and safe levels of contaminants, adulterants, naturally occurring toxins or any other substance that may make food injurious to health on an acute or chronic basis. Food quality can be considered as a complex characteristic of food that determines its value or acceptability to consumers. Besides safety, quality attributes include: nutritional value; organoleptic properties such as appearance, colour, texture, taste; and functional properties.
Food systems in developing countries are not always as well organised and developed as in the industrialised world. Moreover, problems of growing population, urbanisation, lack of resources to deal with pre- and post- harvest losses in food, and problems of environmental and food hygiene mean that food systems in developing countries continue to be stressed, adversely affecting quality and safety of food supplies. People in developing countries are therefore exposed to a wide range of potential food quality and safety risks.
TOTAL QUALITY MANAGEMENT SYSTEM
TQM 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. It utilizes the strengths and expertise of all the employees of a company as well as the statistical problem solving and charting methods of statistical process control. TQM is based on and relies on the participation of all memberes of an organization to continuously improve the processes, products, and services their company provides as well as the culture tehy work in.TQM can be viewed as a logical extension of the way in which quality-related practice has progressed. Originally quality was achieved by inspection-screening out defects before they were noticed by customers.
Most importantly, quality management encourages a long-term, never ending commitment to the improvement of the process, not a temporary program to be begun at one point in time and ended at another. The total quality process is a culture that top-level management develops within a company to replace the old management methods. Since the customer's needs, requirements, and expectations are always changing, the total quality management must be adaptable in order to pursue a moving target.
Armand Feigenbaum who is one of the famous quality gurus has defines TQM as:
" an effective system for integrating the quality development, quality maintenance and quality improvement efforts of the variousgroups in an organization so as to enable production and service at the most economical levels which allow for full customer satisfaction".
Genichi Taguchi was the director of the Japanese Academy of Quality and was concerned with engineering-in quality through the optimization of the product design combined with statistical methods of quality control. He encouraged interactive team meetings between workers and managers to criticize and develop product design. Taguchi's definition of quality uses the concept of the loss which is imparted by the product or service to society from the time it is created. His quality loss function includes such factors as warranty costs, customer complaints and loss of customer goodwill.
One of the other gurus, J.M. Juran, was also a key educator of the Japanese in quality management. He tried to get organizations to move away from the traditional manufacturing-based view of quality as 'conformance to specification' to a more user-based approach, for which he coined the phrase 'fitness for use'. He pointed out that a dangerous product could conform to specification but would not be fit to use. Juran was concerned about management activities and the responsibility for quality, but he was also concerned about the impact of individual workers and involved himself to some extent with the motivation and involvement of the workforce in quality improvement activities.
It would appear that the quality "gurus", A. Feigenbaum, K. Ishikawa, J.M. Juran, G.Taguchi, P.B. Crosby, provide different solutions to bringing about improvement in organizations. However, it has been suggested that "they are all taklking the same "language" but they use different dialects. In fact TQM is best thought of as a philosophy of how to approach quality management. It is a way of thinking and working in operations which lays partciular stress on the following:
* Meeting the needs and expectationsof customers
* Covering all parts of the organization
* Including every person in the organization
* Examining all costs which are related to quality, especially failure costs
* Developing the systems and procedures which support quality and management
* Developing a continuous process of improvement
APPLICATION OF TQM
TQM is a long-term process which demands both strong leaderships and sound management. In implementing TQM five major differences cited between companies with outstanding TQM practice records and the rest:
. Leadership: Leadership begins at the top with these key people absolutely committed to TQM as a way of life. They will accept nothing less than quality and have proved to possess the energy to persevere over the long run. The people who are recognized for global class quality communicate that it requires approximately siz years of hard work before the program is really cooking.
2. Goals: These companies have extremely ambitious goals that are not based on what they might be able to do, but on the achievements of other organizations that have been successful. By benchmarking others, they know the goals are attainable because other quality organizations already have achieved them.
3. Action Plan: Each of these quality orghanizations have ongoing action plans that are closely monitored. Goals without solid plans to obtain themwill be as successful as performance improvements gained by wishing instead of working. It just won't happen.
4. Total Organizational Commitment: Every person in every operation within the organization is attuned to quality. It is as important in marketing and finance as it is in design and engineering. Administration, human resources management, sales, and every other part of the organization must key to quality. Revolutionary changes in quality can happen only when the entire organization is tuned into excellence and working to improve performance in every area of the operation. Nothing less is acceptable.
5. Training: Each of the organization provides its people with ongoing training in every aspect of quality. Training is based on the strategic business plans which provide guidance to all aspects of the organization. Nothing is overlooked.
Some TQM implementations are received with open minds by workers and managers, and some are not. In most organizations which have not been traditionally focused on quality and worker involvement, TQM implementation presents significant challenges. There have been many TQM failures and partial successes. Success rates are running about 33 percent. Sometimes initial failures can be reversed and success ...
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5. Training: Each of the organization provides its people with ongoing training in every aspect of quality. Training is based on the strategic business plans which provide guidance to all aspects of the organization. Nothing is overlooked.
Some TQM implementations are received with open minds by workers and managers, and some are not. In most organizations which have not been traditionally focused on quality and worker involvement, TQM implementation presents significant challenges. There have been many TQM failures and partial successes. Success rates are running about 33 percent. Sometimes initial failures can be reversed and success is gained by "in-flight" adjustments through trial-and-error methods. The trial-and-error method is typically slow and tends to create both people and technology problems that might be prevented through a more appropriate TQM design and implementation. For initiating and implementing TQM in an organization five pragmatic guidelines should be looked out;
. Determine the real current environment. This important assessment requires management to determine how their people perceive the environment. Management beliefs and employee perceptions may be worlds apart. One method begins with a checklist developed especially for this purpose. Individual managers could hold small group discussions and assess the answers to these and other TQM-related subjects. The results could then be combined to provide an organization because employees see that the leadership is serious about understanding the situation which is a prerequisite for installing a TQM process. A second method that suits larger organizations is to have an organization that specializes in such assessments come in and complete an assessment survey. This can be a stock survey or one tailored to exact organizational needs. Some organizations now are able to complete a benchmarking survey for you so that solid strech goals can be developed.
2. Determine what the environment should be. Each work environment is and should be different. There are strengths and weaknesses in all of them. The organization must decide what their work environment should be, based on organizational vision, obejectives, goals, and plans. Then training and work activities must be designed to develop this work environment.
3. Outline the difference. The difference between where the environment is and where it should be becomes the focal point for goals, training, improvement projects, and the rewards and recognition program.
4. Develop the program. The program must be based on need. Training for training's sake and rewards and recognition for the wrong things lead to nothing more than confusion. Key areas to review include the following;
* Employee focus: Includes employee need,level of commitment, training requirements, rewards and recognition, skills, and the employee as a customer.
* Customer Focus: Includes all aspects of customer's needs, wants, and desires and the organizational plan to meet these requirements.
* Cultural Change: The basic culture of the organization must be changed to support quality. Myths and perceptions that do not support TQM must be uncovered and eliminated.
* Performance or Quality Teams: Teamwork is essential to TQM process. Everybody must be included in these teams, trained to participate as a team, and encouraged to be a real team player.
* Improvement projects: Voluntary efforts have proven less than satisfactory. Every team must be trained to handle improvement projects effectively. The projects must be tracked and their efforts rewarded.
5. The Kickoff. Getting started in a timely fashion is extremely important. Bold changes should be made at the outset. These should be followed by continuous change that exhibits the organization's seriousness about TQM. The chief executive should lead the charge. Battles are not won by armchair quarterbacks; they are won by field leaders who are out in front of the troops, leading through vision, solid goals, and example.
TOOLS OF TOTAL QUALITY MANAGEMENT
Up to now, the Japanese have studied and practiced what they term "total quality control" for 40 years. One of the leadersin this movement has been Kaoru Ishikawa. Ishikawa and other repeatedly point to the fact that Japanese industrial workers are among the world's finest in their level of education and quantitative skills. Consequently, one of the critical features of the Japanese approach to quality control is its focus on quantitative methods on the factory floor.
Based on his long experience in Japanese industry, Ishikawa states that as much as 95 percent of quality related problems in the factory can be solved with seven fundamental quantitative tools which are the chech sheets, scatter diagrams, cause-effect diagrams, pareto charts, control charts, flow charts and histograms.
. Check Sheets : A check sheet is any kind of a firm that is designed for recording data. In many cases, the recording is done so the patterns are easily seen while the data are being taken. Check sheets help analysis find the facts or patterns that may aid subsequently analysis. An example might be a drawing that shows a tally of the areas where defects are occuring or a check sheet showing the type of customer complaints.
2. Scatter Diagrams : A scatter diagram provides us the opportunity to view a data set in multiple dimensions in order to detect trends, spot best operating regions, explore cause-effect relationships, and so on. In order to use a scatter diagram, we must observe and record data in observation sets. They show the relationship between two measurements. An example might be a plot of productivity abd absenteeism. If the two items are closely related, the data points will form a tight band. If a random pattern results, the items are unrelated.
3. Cause-and-Effect Diagrams : Another tool for identifying quality issues and inspection points is the cause-and-effect diagram which is also known as Ishikawa diagram or fish-bone diagram. Cause-effect diagram was developed by Ishikawa for the purpose of representing the relationship between an effect and potential or possible causes influencing it. The CE diagram is an organized or structured pictur with the lines and twigs used to stratify and group causes. The effect is typically contained in a box on the right side, while causes appear in the left side. Three main benefits of using the CE diagram in the problem-prevention and the problem-solving process are;
* It provides a structure and focus for open discussion pf a specific quality concern or challenge.
* It forces us to discover many possible causes for a specific effect, making them visible and understandable.
* It encourages employee involvement at all levels and promotes better communication within the group or team.
4. Pareto Charts : Pareto charts are a method of organizing errors, problems, or defects to help focus on problem-solving efforts. They are based on the work of Vilfredo Pareto, a nineteenth-century economist. Pareto analysis indicates which problems may yield the greatest payoff. For instance, Pacific Bell discovered this when it tried to find a way to reduce damage to buried phone cable, the number-onecause of phone damages. Pareto analysis showed that 41% of cable damage was caused by construction work. Armed with this information, Pacific Bell was able to devise a plan to reduce cable cuts by 24% in one year, saving $6 million.
5. Control Charts : Control charts are graphic presentations of data over time that show upper and lower limits for the process we want to control. Control charts are constructed in such a way that new data can be quickly comparedto past performance data. We take samples of the process output and plot the average of these samples on a chart that has the limits on it. The upper and lower limits in a control chart can be in units of temperature, pressure, weight, length, and so on.
6. Flow Charts : Flow charts graphically present a process or system using annotated boxes and interconnected lines. They are a simple, but great tool for trying to make sense of a process or explain a process.
7. Histograms : Histogram is a graphical data summary tool which allows us to group observed data into cells, or predefined categories, in order to discover data location and dispersion characteristics. Also they show the range of values of a measurement and the frequency with which each value occurs.
PRINCIPLES OF QUALITY MANAGEMENT SYSTEM
Principle 1 : Customer Focus
Organizations depend on their customers and therefore should understand current and future customer needs, should meet customer requirements and strive to exceed customer expectations.
Key benefits:
* Increased revenue and market share obtained through flexible and fast responses to market opportunities.
* Increased effectiveness in the use of the organization's resources to enhance customer satisfaction.
* Improved customer loyalty leading to repeat business.
Applying the principle of customer focus typically leads to :
* Researching and understanding customer needs and expectations.
* Ensuring that the objectives of the organization are linked to customer needs and expectations.
* Communicating customer needs and expectations throughout the organization.
* Measuring customer satisfaction and acting on the results.
* Systematically managing customer relationships.
* Ensuring a balanced approach between satisfying customers and other interested parties (such as owners, employees, suppliers, financiers, local communities and society as a whole).
Principle 2 : Leadership
Leaders establish unity of purpose and direction of the organization. They should create and maintain the internal environment in which people can become fully involved in achieving the organization's objectives.
Key benefits:
* People will understand and be motivated towards the organization's goals and objectives.
* Activities are evaluated, aligned and implemented in a unified way.
* Miscommunication between levels of an organization will be minimized.
Applying the principle of leadership typically leads to:
* Considering the needs of all interested parties including customers, owners, employees, suppliers, financiers, local communities and society as a whole.
* Establishing a clear vision of the organization's future.
* Setting challenging goals and targets.
* Creating and sustaining shared values, fairness and ethical role models at all levels of the organization.
* Establishing trust and eliminating fear.
* Providing people with the required resources, training and freedom to act with responsibility and accountability.
* Inspiring, encouraging and recognizing people's contributions.
Principle 3 : Involvement of People
People at all levels are the essence of an organization and their full involvement enables their abilities to be used for the organization's benefit.
Key Benefits :
* Motivated, committed and involved people within the organization.
* Innovation and creativity in furthering the organization's objectives.
* People being accountable for their own performance.
* People eager to participate in and contribute to continual improvement.
Applying the principle of involvement of people typically leads to :
* People understanding the importance of their contribution and role in the organization.
* People identifying constraints to their performance.
* People accepting ownership of problems and their responsibility for solving them.
* People evaluating their performance against their personal goals and objectives.
* People actively seeking opportunities to enhance their competence, knowledge and experience.
* People freely sharing knowledge and experience.
* People openly discussing problems and issues.
Principle 4 : Process Approach
A desired result is achieved more efficiently when activities and related resources are managed as a process.
Key Benefits :
* Lower costs and shorter cycle times through effective use of resources.
* Improved, consistent and predictable results.
* Focused and prioritized improvement opportunities.
Applying the principle of process approach typically leads to :
* Systematically defining the activities necessary to obtain a desired result.
* Establishing clear responsibility and accountability for managing key activities.
* Analysing and measuring of the capability of key activities.
* Identifying the interfaces of key activities within and between the functions of the organization.
* Focusing on the factors such as resources, methods, and materials that will improve key activities of the organization.
* Evaluating risks, consequences and impacts of activities on customers, suppliers and other interested parties.
Principle 5 : System Approach to Management
Identifying, understanding and managing interrelated processes as a system contributes to the organization's effectiveness and efficiency in achieving its objectives.
Key Benefits :
* Integration and alignment of the processes that will best achieve the desired results.
* Ability to focus effort on the key processes.
* Providing confidence to interested parties as to the consistency, effectiveness and efficiency of the organization.
Applying the principle of process approach typically leads to :
* Structuring a system to achieve the organization's objectives in the most effective and efficient way.
* 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.
* Optimization of costs and resources.
Applying the principal of mutually beneficial supplier relationships leads to :
* Establishing relationships that balance short-term gains with long-term considerations.
* Pooling of expertise and resources with partners.
* Identifying and selecting key suppliers.
* Clear and open communication.
* Sharing information and future plans.
* Establishing joint development and improvement activities.
* Inspiring, encouraging and recognizing improvements and achievements by suppliers.
WHAT IS ISO 9000
ISO 9000 series is a set of world-wide standards that establishes requirements for companies' quality management system. ISO 9000 is being used world-wide to provide a framework for quality assurance. ISO 9000 becomes standard for design, development, production, installation, and service. This standard applies to manufacturing companies that design and build product.
The creation of the ISO 9000 series of international standards began in 1979 with the formation of a technical committeewith participants from 20 countries. Named the International Organization for Standardization, this Geneva-based association continues to revise and update the standards. The name "ISO 9000" has its origin in the Greek word "isos," meaning equal. The intent of the standards is to make comparisons between companies equal. ISO 9000 reqistration requires a third-party assessment of a company's quality standards and procedures and regular audits are made to ensure that the systems do not deteriorate. The ISO series provides detailed recommendations for setting up quality systems.
The purpose of the ISO standards is to faciliate the multinational exchange of products and services by providing a clear set of quality system requirements. Companies competing on a global basis are finding it necessary to adopt and adhereto these standards. The standards provide a baseline against which an organization's quality system can be judged. The generic nature of the standards allows the interested company to determine how the standards apply to its organization. Many companies use ISO 9000 as the foundation for their continuous improvement efforts. ISO 9000 is applicable to nearly all organizations, including manufacturers f pieces, parts, assemblies, and finished goods; developers of software; producers of processed materials, including liquids, gases, solids, or combinations; and service providers. ISO 9000 provides definitions and concepts, quality-management and quality-assurance standards, guidelines for auditing quality systems, and quality-assurance requirements for measuring equipment. On the other hand, ISO 9000 provides the framework to integrate a wide variety of quality information. If an organiation is seeking ISO certification, it would be wise to consider the ISO standards and incorporate them into their TQM initiative.
Documentation and record keeping are important aspects of ISO 9000. The documentation includes three distinct areas:
. The companywide quality manual containing policies, commitment statement, and objectives.
2. The procedures section containing operating procedures and the who, what, where, when, why, and how
3. The work instructions section containing operating instructions for processes, equipment, customer requirements, process control, and statistical analysis.
ISO 9000's target is to provide an assurance to the purchasersof products or services that they have been produced in such a way that they meet their requirements. The best way to do this, it is argued, is to define the procedures, standards, and characteristics of the management control system which governs the operation. Such a system will then help to ensure that the quality is 'built into' the operation's transformation processes. This is why ISO 9000 is seen as providing benefits both to the organizations adopting it and especially to customers. However, the adoption of ISO 9000 is not seen as beneficial by all authorities, and has been subject to some criticism.
ADVANTAGES OF ISO 9000
* Many operations do find that it provides a useful discipline to stick to 'sensible' procedures.
* Many operations have benefited in terms of error reduction, reduced customer complaints and reduced costs of quality
* The ISO 9000 audit ( when an organization is inspected to see if it warrants the award of the ISO, or local country, accreditation) is generally accepted and takes the place of other audits such as customer audits.
* Adopting ISO 9000 procedures can identify existing procedures which are not necessary and can be eliminated.
* Gaining the certificate demonstrates to actual and potential customers that the company takes quality seriously; it therefore has a marketing benefit.
DISADVANTAGES OF ISO 9000
* The emphasis on standards and procedures encourages 'management by manual' and over-systematized decision making.
* Choosing which of the various ISO 9000 series of standards to apply for is not always easy.
* The standards are too much geared to the engineering industries and some of the terms used are unfamiliar in other industries.
* The whole process of writing procedures, training staff and conducting internal audits is expensive and time consuming.
* Similarly, the time and cost of achievingand maintaining ISO 9000 registration is excessive.
* There is little encouragement or guidance in ISO 9000 on such important issues as continuous improvement and statistical quality control.
ISO 9000 IN FOOD SECTOR
The ISO 9000 series of standards consists of five separate standards within the ISO 9000 family. ISO 9000 and ISO 9004 provide guidelines for the selection of the appropriate quality management system and interpretation of the ISO 9000 series. ISO 9001, 9002 and 9003 represent three distinct models for a quality management system. Companies can register their quality management systems to only ISO 9001, 9002 or 9003. The first step to develop a document control system is to determine the business processes that are critical for meeting customer requirements. The next step is to ensure that the processes comply with every aspect of the standard. Among the first companies certified according to ISO 9000 are Heinz, Kellog, Nestle and PepsiCo.
ISO 9000 provides a mechanism to bring about systematic improvement but it does not improve performance by itself. Therefore, achieving ISO registration should not be equated with achieving world-class quality since the ISO 9001, 9002 and 9003 describe the minimum standards for a quality management system.
Over the last two decades an enhancement of life status and self-image took place. This led to demand for wholesome, unadulterated, nutritious and safe to eat products and goods. It is also expected that food manufacturers and retailers ensure the quality of the purchased food at all times.
Food products do not always meet consumer expectations and there are several reasons for this, among which the most frequently occurring are: poor quality raw materials, inadequate process control during production, poorly trained process operators and contamination by spoilage organisms, chemicals or foreign bodies.
Food companies in particular are required to implement ISO 9000 and Hazard Analysis Critical Control Point (HACCP) preferably within the frame of Total Quality Management.
The parameters by which food product quality may be measured include product compliance with specifications, legislation and industrial standards concerning characteristics such as composition, microbiology and food safety, colour, flavour, texture, shelf-life and packaging; product technical performance; price; cost benefits in use relative to competitive products; reliability of technical performance and/or product consistency from batch to batch.
ISO does not itself publish certifications of conformity to ISO 9000. This is within the independent responsibility of the various certification bodies around the world. Therefore, there is no 'official' central database of ISO 9000 certificates worldwide. Due to the absence of a central information bureau for the companies and their demand for adequate guidance on the implementation of ISO 9000 series, ISO undertook the annual survey of the new certifications awarded worldwide.
IMPLEMENTATION OF ISO 9000
Implementing an ISO 9000 quality system is no different from making any other major, fundamental, far-reaching change in the organization and it can take two years to see the results of the change. In simple terms, it is not easy to implement ISO 9000. the amount of pain, expense, time required to implement ISO 9000 depends upon
* The sophistication of the existing quality program
* The size of the facility
* The complexity of the process
Implementing an ISO 9000 quality system is, in fact, as simple as
* Knowing the requirements of the standard
* Understanding the facility and its processes
* Committing the resources
* Planning well
* Seeing it through
Add to both of these lists one other factor; the bisggest and most important of them all: management commitment. Without that, all else is for naught. According to Jim Ecklein of Augustine Medical, "top management needs to know a lot about ISO 9000 and we gave our managers a lot of training in it, got them walking, talking, breathing ISO."
Implementation of ISO 9000 differs from that of other quality programs in that it affects the entire organization. When faithfully and aggresively pursued, it results in that always coveted, seldom realized "culture transition" to an atmosphere of continuous improvement.
However, it is virtually impossible to get the benefits of ISO 9000 until we undergo a formal ISO 9000 implementation cycle. Don Van Hook of Strahman Valves says "we wrote an ISO 9000 quality manual but the consultant who came in and assessed it said it needed work; no way would be approved."
. TOP MANAGEMENT COMMITMENT
Deming, Juran, Crosby, Feigenbaum, Peters who are the most famous quality gurus said it. Every quality consultant says it and most company manager concur. Without it no quality initiative can succeed; with it no quality initiative including ISO 9000 implementation can fail. That shows how important top management commitment is.
Ireland's Lorcan Mooney, ISO 9000 consultant, implementor, and quality systems assessor, says: "The most significant pitfall in ISO implementation is the CEO being uncommitted, or opting out, or standing on the sidelines and expecting other people to do it." The creators of ISO understood that without management involvement and participation, nothing beneficial can happen, that's why Management Responsibility guidelines come first in the standard. The CEO can not delegate commitment and passion and resolve. The CEO can not remain passive, let alone skeptical, and expect to see results. It is said that 80 percent of success is showing up. With ISO 9000 implementation, the figure is more like 100 percent. Top management must show up.
"Top management has to be an active, daily, visible presence in the process. Top management people have to understand and do more than just accept the tenets of the ISO 9000 process. They have to lead it and do not necessarily have to get involved in the most important facts but they have to lead and drive and apply pressure when necessary" says Brian Burke who is the CEO of Container Products Corp.
2. ESTABLISH IMPLEMENTATION TEAMS
ISO 9000 is implemented not by magic, but by people. The first phase of implementation calls for the commitment of top management. The next step is to create a personnel structure to plan and oversee implementation.
The first component of this personnel structure, the most important after the CEO, is the management representative(MR). MR is the person within the facility who acts as interface between facility management and the ISO 9000 registrar. But the role is really much broader than that. The MR should act as the facility's "quality system champion," the protector of the vision. The MR must be a person with:
* Access to and total backing of the CEO
* Genuine and passionate commitment to quality in general and the ISO 9000 quality system in particular
* The clout, resulting from rank, seniority, or both, to influence managers and others of all levels and functions
* Detailed knowledge of quality methods in general and ISO 9000 in particular
Next, a top level implementation team is created. In firms this is called the Quality Action Council or Quality Steering Committee. The team is usually chaired by the MR and consists of the CEO, top managers, key functional managers and top union representatives(if applicable). The Quality Action Council is mainly a policy group. It sets objectives for quality system implementation, approves plans, evaluates reports, and prescribes changes as needed. The council also makes critical decisions about the quality system documentation. Its members should decide early on who is responsible for writing, editing, and approving the facility!a quality manual and who is responsible for second-tier documentation.
Next comes a network of Quality Action Teams. In small to midsize facilities, these teams are organized by department or function. Each is headed by the functional manager or department head, who in turn sits on the Quality Action Council. Large facilities have more elaborate action networks, but the objective is the same: to have a team of line people representing each critical facility function and process element. Whatever organization is devised, there must be a clear and visible reporting and communication network all the way up to the MR and the Quality Action Council.
All members of the Quality Action Teams should be knowledgeable about the process elements in which they work. That is the main criterion for membership. It is helpful, though not required, that they also should have some advanced familiarity with ISO 9000 quality systems.
3. AWARENESS
This step requires an awareness program. Beacuse the process is going to affect every member of the organization as well as require their input, it stands to reason that everyone should understand the quality system. They should know how it will affect day-to-day operations and the potential benefits. This information can be relayed through short, one-hour awareness training sessions.
4. TRAINING
The implementation team, supervisors, and internal audit team should be trained. The Quality Action Teams should take responsibility for providing specific training in their respective functional areas. This activity can be accomplished by sending team leaders for training and having them train the other team members or by bringing the training in-house for all team members through a one or two day seminar. The training program should emphasize the benefits that the facility expects to realize through its ISO 9000 quality system. The program should also stress the higher levels of participation and self-direction that the quality system renders to employees.
In addition, more general training needs are attendant to implementation and apply to virtually all facilities. Since the ISO 9000 quality system affects all areas and all personnel in the organization, it is wise to provide basic basic orientation in the quality system standard to all employees.
5.
TIME SCHEDULE
This activity develops a time schedule for the implementation and registration of the system. This time frame will vary, depending on the size and type of the organization and the extent of its existing quality system. Most organizations can complete the entire process in less than 1,5 years.
6. REVIEW THE PRESENT SYSTEM
The next step in the implementation process is to compare the facility's existing quality programs and quality system, if there is one, with the requirements of the standard. Perform a review of the present quality system. Copies of all the quality manuals, procedures, work instructions, and forms presently in use are obtained. These documents are sorted into the system elements to determine what is available and what is needed to complete the system. This activity is a gap analysis and can be performed by the element owners and their teams or by an external consultant.
7. DOCUMENTATION
Documentation is the most common area of non-conformance among the facilities wishing to implement ISO 9000 quality systems. It is essential to the ISO 9000 registration process because it provides objective evidence of the status of the quality system. This process should involve every employee, because the best person to write a work instruction is the one who performs the job ona a regular basis. The two basic rules of ISO documentation are "documenting what we do" and "doing what we document".
Under the ISO 9000 quality system, all work which affects quality must be planned, controlled, and documented. In other words, people whose work affects quality should know how to do that work in a way that maximizes quality. Toward that end, detailed written procedures and work instructions must be created where, as the standard states, the absence of same would adversely affect quality.
The process of creating and usine documentation is central to the effectiveness of quality system implementation. For one thing, the exercise is almost always educational.many facilities that find the creation of work procedures and instructions to be a difficult process are facilities that have never had such things before. Typically, important process work, even work with a serious impact on quality, is done in an unplanned, inconsistent manner.
Quality system documentation forces the facility, at all levels, to think through exactly what is being done and how it is being done. Most firms find this to be a positive learning experience. And there is one major pitfall to be avoided: make sure that procedures and work instructions are created by the people who actually do the work.
8. MANAGEMENT REVIEW
When the procedures have been completed and the quality system fleshed out, it is time to put the quality system into effect. In this important phase, management must pay close attention to results to make sure that the elements of the quality system are logical and effective. Effective review is what makes or breaks ISO 9000 implementation. One of the ISO consultant named Lorcan Mooney says " A serious threat to effective ISO 9000 implementation is failure to monitor development as the process proceeds. Especially it is helpful to begin the internal audit program immediately as part of implementation, thereby solving many implementation problems at the local level. The management review is used to determine the effectiveness of the system in achieving the stated quality goals.
9. REGISTRATION
Quality system registration is the assessmentand audit of a quality system by a third party, known as a registrar. This step requires three parts: choosing a registrar, submitting an application, and conducting the registrar's system audit. Considerations in choosing a registrar include cost, lead time, your customer's acceptance of the registrar, the registrar's accreditation, and familiarity with the industry. The application for registrar should also include supplying the registrar with the policy and procedure manuals for their review. The time involved in the registrar's system audit will vary depending on the size and complexity of the organization and the number of auditors involved. It is usually one to three days and will consist of an opening meeting to describe the process the auditors will follow, the audit itself, and a closing meeting to discuss the findings of the audit.
On the other hand registration is not the end of the process, only the beginning. From that point forward, the facility and the registrar are, in effect, married. The basic elements of this relationship are; payment of an annual fee, review and approval of quality system changes, and semiannual surveillance assessments.
To sum up, there are some key factors for a successful quality system:
. Start with a solid plan
2. know what you already have
3. know what you need to add in order to meet the standard
4. know the best way to add the needed components
5. Involve employees who understand the ISO standard and the quality system goals.
"Think about Americans is, we're always looking for the catch. We're always trying to figure out the easiest and least painful way to get something done. Usually this means paying someone to do the dirty work for us. But you can't do that with ISO. Because it's your system. It's about your facility, your products, your ways of doing things. You can't hire a consultant to plug ISO in in for you. A consultant can guide you, but that's all. You have to do the rest." Anthony COGGESHALL of Adhesives Research.
THREATS OF EFFECTIVE IMPLEMENTATION
Lack of CEO Commitment : If senior management consists of four or five people, and two of them are not cimmitted, over time they can be won over. But if the CEO is not committed, then in no way are you going to win in the long run.
Failure to involve everyone in the process : Ownership and empowerment are key to effective implementation. To help employees feel like owners of their activity, make them responsible for developing and documenting their procedures.
Failure to monitor progress and enforce deadlines.
FINDINGS
Quality is defined different by the authorities since the beginning but there is a common point of view, that is, it is a must for bringing up an organization. Also it is an important factor that influences the buying decision in big markets, however, its priority changes market to market. 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.
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