Your SlideShare is downloading. ×
Beyond ISO 9001 : Benefits to SMEs
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×

Introducing the official SlideShare app

Stunning, full-screen experience for iPhone and Android

Text the download link to your phone

Standard text messaging rates apply

Beyond ISO 9001 : Benefits to SMEs

1,708
views

Published on

Describes how organizations can go beyond mere ISO implementation, also adopt other Management tools, techniques, Management philosophies, Quality Award criteria and improve. …

Describes how organizations can go beyond mere ISO implementation, also adopt other Management tools, techniques, Management philosophies, Quality Award criteria and improve.

Talk given under auspices of Rajkot Management Association, Rajkot on 22nd October, 2010.

Published in: Business, Technology

1 Comment
1 Like
Statistics
Notes
  • I read your post . it was amazing.Your thought process is wonderful.The way you tell about things is awesome. They are inspiring and helpful.Thanks for sharing your information and stories.
    iso 9000
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here
No Downloads
Views
Total Views
1,708
On Slideshare
0
From Embeds
0
Number of Embeds
3
Actions
Shares
0
Downloads
84
Comments
1
Likes
1
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide

Transcript

  • 1. Excellence unLimited, Rajkot 1 A presentation given at Rajkot Management Association On 22nd October, 2010 at Rotary Hall, Vidyanagar Road, Rajkot, Gujarat, India
  • 2. Excellence unLimited, Rajkot 2 In this highly competitive world, and in Global meltdown situation, Darwinian Principle of “ Survival of the Fittest ” will prevail. It is, therefore, imperative for organizations to be fit. Systematic approaches provide them an opportunity to become fit, survive & grow.
  • 3. Excellence unLimited, Rajkot 3 ISO 9001 ( Quality Management System ) and TS 16949 ( Automotive QMS ) standards are one of systematic approaches and basic foundation stones on which, we have to build company improvement efforts.
  • 4. Excellence unLimited, Rajkot 4 But we must know, they are just basic foundation stones and a house or avenue cannot be built merely by foundation stones ! ( Unfortunately, most companies just stop here. )
  • 5. Excellence unLimited, Rajkot 5 What is ISO ? ISO stands for International Organization for Standardization. Why Standardization ? •Standardization renders consistent output, again and again, year after year. ( Examples . . . ) •Errors and variations are minimized, leading to reduction of wastages and time, thus saving costs. • It employs scientific Process and Systems approach.
  • 6. Excellence unLimited, Rajkot 6 ISO 9001 is a generic standard, that means it can be applied by any kind of institution, whether it be industry, business, trade, NGO, Govt., Educational or Health care institution.
  • 7. Excellence unLimited, Rajkot 7 Source : A C Neilson Annual surveys www.iso.org 9,82,832 Dec.’08
  • 8. Excellence unLimited, Rajkot 8 Rajkot and surrounding area’s share is @ 1%, i.e. about 500 certi. existing. Source : A C Neilson Annual surveys www.iso.org 37,958 Dec.’08
  • 9. Excellence unLimited, Rajkot 9 TS 16949 is ISO 9001 version specifically modified for automotive supply chain industries. It contains some additional tools like SPC, FMEA(Design & Process), COPQ, Risk Analysis, 5 Why, RCA, Supplier & Competitive Analysis, Preventive and Predictive Maintenance, Inventory Management, Pokayoke etc. Additionally, it mandates all its suppliers shall be ISO 9001 certified. It also mandates that its own laboratory may conform to ISO/IEC 17025. However, external lab must be ISO/IEC 17025 certified.
  • 10. Excellence unLimited, Rajkot 10 ISO 14001 OHSAS 18001 ISO 9001 Other beneficial standards are . . .
  • 11. Excellence unLimited, Rajkot 11 • ISO 14001 : 2004 – This is Environmental Management Standard for reducing pollution, saving natural resources, and reducing wastage. Other beneficial generic standards ( can be applied by all ) • OHSAS 18001 : 2007 -- This is Occupational health and safety standard, leading to better employee and other stakeholder health and safety. • M/S Preci-Max Rollers, Metoda, is having all 3 TS 16949, ISO 14001 and OHSAS 18001 certificates.
  • 12. Excellence unLimited, Rajkot 12 Other Sector specific beneficial standards • ISO 10006 : 2003 – This is ISO 9001 guidelines adopted for Projects • ISO 10014 : 2006 – This is ISO 9001 guidelines for realizing financial & economic benefits • ISO 22000 : 2005 – Food safety std.(equi. to HACCP) • ISO 27001 : 2005 – Information security standard • ISO 20000 : 2005 – IT service standard
  • 13. Excellence unLimited, Rajkot 13 All these standards help organizations to develop basic processes and systems, specific to business. However, they are not sufficient to get an edge over competitors. For this, organizations must employ other tried, tested and proven management tools and techniques. Let us discuss these management tools and techniques, one by one.
  • 14. Excellence unLimited, Rajkot 14 Continuous Improvement using Deming’s PDCA cycle Plan Do Check Act Planning through Quality policy, Quality plans or Procedures Doing = Carrying out activities as planned Acting= Bridging the gaps or resolving non-conformities and observances Checking= Checking whether planned activities are done or carrying out audits
  • 15. Excellence unLimited, Rajkot 15 • 5 S : This Japanese technique can bring out waste by visual control, What else can SMEs do in competition ? • COPQ : Identifying and reducing waste in every activity, thereby improving cost ( Almost 30% of cost due to various wastes ) • SPC : Analyze and identify process variation, cycle time, cost etc. and make corrections, • Kaizen : This Japanese technique can make continuous improvement possible, • Six Sigma : Abandon % variation mentality, adopt sigma concept and control processes.
  • 16. Excellence unLimited, Rajkot 16 • Based on Japanese words that begins with letter “ S ”, The 5 S Philosophy • Simplifies the work environment, • Reduces waste and non-value activities, • Focuses on workplace organization and standardized work procedures, • Improves quality, efficiency and safety .
  • 17. Excellence unLimited, Rajkot 17 5 - S5 - S THE 5 -KEYS TO WORKPLACE MANAGEMENTTHE 5 -KEYS TO WORKPLACE MANAGEMENT SEIRI = Sort , SEITON = Set in Order , SEISO = Shine , SEIKETSU = Standardize , SHITSUKE =Sustain the gains . “A place for everything and everything in its place.”
  • 18. Excellence unLimited, Rajkot 18 Examples of 5 SExamples of 5 S Factory Area Factory Floor
  • 19. Excellence unLimited, Rajkot 19 Examples of 5 SExamples of 5 S Tool Post Tool Rack Table Drawer Storage Area
  • 20. Excellence unLimited, Rajkot 20 Examples of 5 SExamples of 5 S Meeting Room Notice Board File Rack
  • 21. Excellence unLimited, Rajkot 21 Have you heard of 5 Wives and 1 Husband ?
  • 22. Excellence unLimited, Rajkot 22 Once fully implemented, 5 S gains are -Once fully implemented, 5 S gains are - • Employees feel better about where they work, • Increase morale, • Increase efficiency, • Lead to continuous improvement in the form of less waste, • Better quality and faster lead times, • Creates positive impression on customers, • Make the organization more profitable and competitive in the market place.
  • 23. Excellence unLimited, Rajkot 23 COPQ( Cost of Poor Quality ) It is about 4 to 30 % of revenue for established to new organizations .
  • 24. Excellence unLimited, Rajkot 24 COPQ Initially, one identifies only visible losses. They are : Customer returns, recalls, rejects, rework, waste, testing costs, inspection costs. These are normally 4 – 6 % of sales turnover.
  • 25. Excellence unLimited, Rajkot 25 COPQ When company gets experience, invisible losses also becomes apparent. They are : complaint handling, excessive field service expenses, premium freight cost, excessive inventory, excessive overtime, Unused capacity, excessive employee turnover, etc. These are normally 15 – 25 % of sales turnover.
  • 26. Excellence unLimited, Rajkot 26 COPQ 10 % expenses done for good quality, saves 90 % expenses for bad quality.
  • 27. Excellence unLimited, Rajkot 27 SPC ( Statistical Process Control ) “If you want to manage, you have to control. If you want to control, you have to measure.” By measurements , you get data. By analyzing data , you get information . Act on information and you improve . “In God we trust, for everything else, we require data” ~ HP
  • 28. Excellence unLimited, Rajkot 28 Purposes of application of Statistical techniques  Pinpointing problem areas  Identification of current quality status  Judgment regarding acceptance or rejection of lots  Improvement of processes  Control of Processes  Designing products and processes
  • 29. Excellence unLimited, Rajkot 29 SPC ( Statistical Process Control )
  • 30. Excellence unLimited, Rajkot 30 Pareto Analysis A simple tool for problem solving that involves, ranking all potential problems according to their contribution to cost or to total variation. “Pareto Analysis” can be used to arrange the causes in order to locate the largest contributor so that it can be acted upon first, concentrating on the “Vital Few” causes, temporarily ignoring the “Trivial Many” .
  • 31. Excellence unLimited, Rajkot 31 Pareto Analysis ( Rule of 80 : 20 ) e.g.  80 % of our specific problems are on account of the 20 % of the causes.  80 % of our revenue comes from 20 % of our vital customers.
  • 32. Excellence unLimited, Rajkot 32 Pareto Analysis 0 20 40 60 80 100 120 Cement S.Ash-Light S.Ash- Heavy S.Ash- Medium Caustic Bicarb Bromide Rejection analysis of products in a multi-product company
  • 33. Excellence unLimited, Rajkot 33 Cause & Effect / Fishbone / Ishikawa Diagram CD DIAGRAM FOR TOTAL PRODUCT VARIATION BASIC FACTORS ( BASIC TO MACHINE ) MACHINE AND INTERGRAL COMPONENTS IN OPERATION DESIGN & CONSTRUCTION TOTAL PRODUCT VARIATION THERMAL INFLUENCES LOADING & LOAD REVERSAL LUBRICATION POSITIONAL ERROR DYNAMIC BEHAVIOUR VIBRATIONS END PLAYS FITS CLEARANCES ALIGNMENTS DYNAMIC STATIC RIGIDITY MATERIALS LEAST COUNT SUITABILITY OF INSTRUMENT REPRODUCT- BILITY OF INSTRUMENT DIFFERENCE BETWEEN INDENTICAL TOOLS TOOLING TOOL DESIGN TOOL WEAR FEEDS & SPREADS OPERATIONAL SEQUENCE FIXTURE CLAMPING ENVIRONMENTAL CONDITIONS COOLANT MEASUREMENT OF WORK PIECE METHODS OF MANUFACTURE OPERATOR’S SKILL JOB SETTING OPERATOR’S EXPERIENCE MEASUREMENT DIFFERENCE ( INSPECTOR ) MAN SHAPE MATERIAL ( MACHINABILITY ) SUITABILITY TO CLAMPING / LOADING INPUT DIMENSIONS WORK PIECE EXTERNAL FACTORS ( EXTERNAL TO MACHINE )
  • 34. Excellence unLimited, Rajkot 34 Other management tools and techniques - • J – I – T : Just in Time • 5 Why : Ask “ Why ” five times for any problem • SWOT Analysis : Identifying company standing • VMV : Formulating Vision, Mission, Values • BSC : Balanced Score Card for strategy Deployment • Strategy : Long & short term strategy formulation
  • 35. Excellence unLimited, Rajkot 35 Management practices / philosophies • TQM, TPS, WCM, TPM are management practices adopted world over to give lasting benefits. • TQM : Total Quality Management • TPS : Toyota Production System or Lean Mfg. • WCM : World Class Manufacturing • TPM : Total Productive Maintenance
  • 36. Excellence unLimited, Rajkot 36 Award processes • There are several holistic Quality Award models that encompasses all best practices, are thoroughly documented, assessable and provide written feedback to applicant for further action and improvement. • Malcolm Baldrige National Quality Award (MBNQA), USA Its Indian versions being – 1.Ramkrishna Bajaj National Quality Award : IMC, Mumbai, 2.Rajiv Gandhi National Quality Award : BIS, New Delhi, 3.Golden Peacock National Quality Award : IOD, New Delhi, 4.Tata Business Excellence Model (In-house) : TQMS, Pune.
  • 37. Excellence unLimited, Rajkot 37 Award processes • European Federation of Quality Management (EFQM) Award, European Countries Its Indian version being – CII – EXIM Bank National Quality Award : CII, Bangalore. • The Deming Award : JUSE, Japan • The Shingo Prize : Shingo Foundation, Japan • TPM Excellence Award : JIPM, Japan
  • 38. Excellence unLimited, Rajkot 38 ISO 14001 OHSAS 18001ISO 9001 etc. TQM, TPS, WCM, TPM etc. National Quality Awards based on MBNQA, EFQM, Deming Award Etc. s it enough to have ISO only ? ISOs are just basic approaches Mgmt. tools Like 5S, COPQ, SPC, 6 Sig. etc order to compete, grow and sustain, u also need to adopt Mgmt. tools and WC practic
  • 39. Excellence unLimited, Rajkot 39 Any Questions ?
  • 40. Excellence unLimited, Rajkot 40 We, at Excellence unLimited, can help you in the whole journey, from very basic processes to utmost complex systems . . . It will be our pleasure to be associated with you. Be it for awareness, training, documentation, audits or maintenance and improvements. www.excellence-unlimited.com
  • 41. Excellence unLimited, Rajkot 41 Thank You