Assignments: 20%

Quizzes:
10%
Mid-term: 30%
Final:
40%
Total:
100%

What is the Standard?

Prerequisites

Grading

 Total:

: 40%

Assignments and class partic. : 5%

Quizzes:
: 5%
Mid-term:
: 30%

So far.

Assignments and class partic.

Quizzes:
Mid-term:
Project
Final:
Total:

: 10%
: 5%
: 30%
: 35
: 20%
100%

Using TQM theories and concepts, you are expected to

suggest how a company can achieve major levels of customer
satisfaction and overall efficiency improvements.

The goal of this assignment is to develop your

imagination for innovation through quality improvement.

Using TQM theories and concepts learned in class, you

will be expected to analyze one national or international
organization and seek ways to enhance quality provision for
the purpose of innovation

Project: Adopting TQM for

Innovation

 You have been appointed as a consultant by one of the companies in the

next slide as Quality Experts. The CEO of the company has had a new
realization that enhancing quality is the key to enhancing the performance
of his organization. He, however, aims to achieve high levels of innovation
through implementing Total Quality Management.
You are required to analyse different aspects of the organization and make
a presentation to the board members of the organization suggesting
quality measures that will enhance organisations ability to innovate in the
dynamic environment.
You are required to highlight current problems and challenges the
organization is facing and recommend solutions through the TQM model.
You must convince the board members on the rationality and practicality
of your recommendations.

Scenario

For example

 Everyone participates

Q&A

10 minutes Group
presentation

Individual Evaluation

Groups of no more than 5

35% of the Overall Grade

Appendix: Detailed WBS

with dates and individual
contributions

One joint 3-5 pages shortReport

Submit group names by

Friday, 14th Nov 2014

Evaluation

Section 1
Discuss definitions of quality in terms of your chosen organisation
Illustrate the current processes of inspection and assurance implemented
in the organisation
Discuss a range of approaches to quality management
Explain the similarities and differences between the different methods
Section 2
Discuss what is meant by customer satisfaction within the context of your
chosen organisation
Explain the meaning of continuous improvement within the context of
your chosen organisation
Illustrate the type of added values to be gained.
Describe the types of information made available to customers and the
importance given to effective marketing

Key Sections of the Report and

Presentation Must Cover

Section 3
Explain how quality management can be measured for at least 2 products
or services offered by the organisation
Evaluate the benefit of user and non-user surveys in determining
customer needs within your chosen organisation.
List the methods of consultation employed in one quality scheme to
encourage participation by under-represented groups
Identify the value of complaints procedures and analyse how they may be
used to improve quality
Section 4
Report on the role of self assessment in order to determine an
organisations current state of health
Evaluate the importance of communication and record keeping
Propose new systems or modifications to existing systems that could
improve service quality

..this is not the structure of the report..

Last Week

5 - 17

Patagonias culture supports the companys

business objectives and strategy by creating
conditions under which innovative and
creative clothing design can occur and
contributions to protecting the natural
environment can happen too.
As a result, the culture encourages learning
and the use of new skills.

Introduction

 Created by Yvon
Chouinard, and avid
alpine climber.
1965 Chouinard
Equipment was
formed.
1973 patagonia was
created
Patagonia redefined
fashion and
performance in many
outdoor sports.

company history

 Go Green!
Build the best product, cause no unnecessary harm,
use business to inspire and implement solutions to
the environmental crisis.
Patagonia's Mission Statement
patagonia creates clothing for climbing, skiing,
snowboarding, surfing, fly fishing, paddling and trail
running. These are all silent sports.

company philosophy

 No private offices
Child care
Healthy cafeterias
Two month paid leave for non-profit work

Patagonia redefined the work place in the late

1970s
Unique culture

company philosophy contd.

 100% organic cotton in all clothing

Reduced carbon footprint in all distribution centers,
offices, and stores. LEED (Leadership in Energy and
Environmental Design) Certified

Headquartered in Ventura, CA
Over 1000 employees
270 million dollars in annual consolidated revenue
(2007).
Donate at least 1% of revenue to environmental
causes.
Mid 1990s

general information

-Target DemographicDemographicEnvironmentally conscious

Expendable income
Non main-stream athletes- silent sport participants.
Outdoor enthusiasts
Adventure seeker

 Emphasis on employee morale

Focus on environmentalism.
merged quality along with conservation
Garment recycling
1% for the planet: unlike most corporate
companies Patagonia funds grassroots level
innovation and other activist groups.

Environmentalism

strengths

 Easy access to catalogs and newsletters

Keeping you in the loop

Few brick and mortar locations

Good website

Strong online channel

Customers are loyal and active believers in the Patagonia

brand

Exclusive Image

Patagonia guarantees its products performance

Quality

strengths contd.

 Lots of competition in sports apparel

Competition

Few brick and mortar locations. Not as accessible

as their competitors.

Location

Patagonia isolates some customer due to high end

merchandise

Price

weaknesses

Through the media, environmental issues are currently being

addressed
Use of organic materials
Protecting Arctic National Wildlife Refuge
Participating in environmental crises

Word of mouth
Web advertising
TV commercials
Focus on environmental conservation

opportunities

Sugoi Professional Athletic gear

Pearl Izumi- High performance apparel

Mountain Hardware - continuous

innovation

The North Face - high-performance

mountaineering apparel and equipment

threats

 Creating the highest quality tools and apparel

requires that these product developers continue to
keep their design skills sharp. One such developer
set out to do just that and found lynda.com online
training for Adobe Illustrator.
She loved the experience and began to spread the
word to coworkers, who in turn approached
Patagonias Training Director Lu Setnicka to see if the
company would be interested in providing lynda.com
training modules to others.

Patagonia goes to Lynda.com

Our product developers act as a bridge

between design teams and the factory, says
Setnicka. They use Illustrator to communicate
whats going on with a product, so its
important that they continually develop their
skills with the software.

 Setnicka has found the flexibility that lynda.com online training

offers to be immeasurably valuable. Employees can get online
and study whenever they want, wherever they are.
Some of our product developers travel to factories in other
parts of the U.S. or in other countries, says Setnicka. Even if
theyre on an overseas trip, they can go online and develop their
skills. Being able to access the training any time is a huge
advantage.
Shes also impressed by the wide range of curriculum thats
available through the multi-user license.
Different people have different training needs, she says. Some
employees need basic software skills, others need something
more technical. Its all available through the program.

RESULTS

quality bucket

Patagonia structures its training around the

companys core values: environmentalism, quality,
integrity, and not [being] bound by convention.
This unique approach opens up possibilities such as
parent education, management training and even
trips to help restore ecosystems in whats becoming
the largest national park in Patagonia, Chile. The kind
of skills-based training offered by lynda.com fits into
what Setnicka fondly calls the extremely important

Outputs and Outcomes

5 - 32

Transfer of training refers to trainees

effectively and continually applying what they
learned in training on their jobs.
The work environment plays an important role
in ensuring that transfer of training occurs.
Transfer of training is also influenced by
trainee characteristics and training design.

Transfer of Training

5 - 33

Climate for Transfer

Management and Peer Support
Opportunity to Perform
Technological Support

Work Environment

Create a Learning Environment

Apply Theories of Transfer
Use Self-Management
Strategies

Training Design

Ability

Motivation

Trainee Characteristics

Learning
Retention

Generalization
and
Maintenance

A Model Of The Transfer Process

This Week

Implementing a Quality Management System

Policies,
Processes
Procedures

What is a Quality Management System?

A Cultural Transition

Resources

Input
ORGANIZATION
WITH
LOUSY MANAGEMENT

39

Output

By...

Service Quality
Product Quality
Personnel Quality

Upgrading :

40

ISO 9000

A Proven Successful
Quality Assurance System

41

Customer focus
Leadership
Involvement of people
Process approach
System approach to management
Continual improvement
Factual approach to decision making
Mutually beneficial supplier relationships

QUALITY MANAGEMENT PRINCIPLES

42

Quality is:
1. defined by customer needs
2. defined in terms of fitness for
purpose
3. achieved through continuous
improvement
4. managed through prevention not
detection
5. getting it right at the first time
6. measurable

ISO 9000 is about QUALITY

43

I nternational
O rganization for
S tandardization

ISO stands for

44

 Plan what you do

Do what you planned &
record what you did
Check the results
Act on the difference

Self-manageable
P-D-C-A

45

CUSTOMER SATISFACTION
MANAGEMENT SUPPORTS
RESOURCES MANAGEMENT
PROCESS MANAGEMENT
RESULTS ANALYSIS

CONTINUOUS IMPROVEMENT

PLAN, DO, CHECK & ACT

with CONSISTENCY :

ISO 9000 REQUIRES :

46

UNSATISFACTORY OUTCOME

THE CONTINUOUS IMPROVEMENT MECHANISM

47

WORK IMPROVEMENT TEAM

UNSATISFACTORY OUTCOME

THE CONTINUOUS IMPROVEMENT MECHANISM

48

CAUSE INVESTIGATION

WORK IMPROVEMENT TEAM

UNSATISFACTORY OUTCOME

THE CONTINUOUS IMPROVEMENT MECHANISM

49

CORRECTIVE ACTION

CAUSE INVESTIGATION

WORK IMPROVEMENT TEAM

UNSATISFACTORY OUTCOME

THE CONTINUOUS IMPROVEMENT MECHANISM

50

PREVENTIVE ACTION

CORRECTIVE ACTION

CAUSE INVESTIGATION

WORK IMPROVEMENT TEAM

UNSATISFACTORY OUTCOME

THE CONTINUOUS IMPROVEMENT MECHANISM

51

REVIEW

PREVENTIVE ACTION

CORRECTIVE ACTION

CAUSE INVESTIGATION

WORK IMPROVEMENT TEAM

UNSATISFACTORY OUTCOME

THE CONTINUOUS IMPROVEMENT MECHANISM

52

REVIEW

PREVENTIVE ACTION

CORRECTIVE ACTION

CAUSE INVESTIGATION

WORK IMPROVEMENT TEAM

UNSATISFACTORY OUTCOME

THE CONTINUOUS IMPROVEMENT MECHANISM

53

21

Working Instruction
Reference Document

Q Procedures

Quality Manual

Quality Plan

54

Set the right conditions within your

organisation!

.but before

ISO 9000 - 20 Elements

55

Change

Requires
Leadership

RESILIENCE

Commitment

How to Engage your Employees?

Create a Trusting Environment

Be Inspirational

Be an Excellent Communicator

Create a Learning Evironment

Offer Rewards & Recognition

ISO 9001:
2008
Quality
Management
System

Management
Systems

ISO 22301
Business Continuity
Management

ISO 20000-1:2011
Service Management

ISO 31000 Risk

Management

ISO 27001-2005
Information
Security
Management
System

 ISO 14001 helps organizations to implement environmental

management.

ISO 9001 helps organizations to implement quality

management.

They are implemented by more than a million organizations

in some 175 countries.

ISO 9001 and ISO 14001 are among ISO's most well known
standards ever.

ISO 9001 and ISO 14001 in brief

4.1
4.2
4.3
4.4
4.5
4.6

Management Responsibility
Quality System
Contract Review
Design Control
Document & Data Control
Purchasing

ISO 9000 - 20 Elements

69

70

4.7 Control of Customer Supplied

Product
4.8 Product Identification and
Traceability
4.9 Process Control
4.10 Inspection and Test Status
4.11 Control of Inspection, Measuring and
Test Equipment.

ISO 9000 - 20 Elements

71

4.12 Inspection and Test Status

4.13 Control of Nonconforming
Product
4.14 Corrective & Preventive Action
4.15 Handling , Storage, Packaging,
Preservation and Delivery
4.16 Control of Quality Records
4.17 Quality Audits

ISO 9000 - 20 Elements

4.18 Training
4.19 Servicing
4.20 Statistical Techniques

ISO 9000 - 20 Elements

72

26

Setting up Steering Committee

Design of Management System
Training all Staff
Setting up documentation
system
5. Implementation
6. Monitoring & Evaluation

1.
2.
3.
4.

Stages in Implementing

73 27

 Surveillance Visit

Internal Q Audit

Maintenance of the system

Registration

Certification Audit

Internal Audit & Pre-assessment audit

Phases

74

28

Plan what you do

Do what you planned
Record what you did
Check the results
Act on the difference

Self-manageable

75

 Clearly listed requirements /

guidelines
World-wide acceptance

Standardized

76

 Inter-relationship of elements
Comprehensive
Team work

Systematic

77

 Needs defined by customer

Stress on customer satisfaction
Enhancement of quality culture

Customer-oriented

78

 Internal audit (Self-assessment)

Audit by 3rd party
The management system governs

Objectively assessed

79

 Data and record control

Document process

Clearly Documented

80

Human resources
planning and control
in
ISO 9001 QMS
81

82

Top management shall provide evidence of its

commitment to the development and improvement of
the quality management system by:
d) Ensuring the availability of necessary resources

5.1 Management commitment

83

Functions and their interrelations within the

organization, including responsibilities and
authorities, shall be defined and communicated
in order to facilitate effective quality
management.

5.5.2 Responsibility and

authority

84

The organization shall ensure communication

between its various levels and functions
regarding the processes of the quality
management system and their effectiveness.

5.5.4 Internal communication

85

The organization shall determine and provide,

in a timely manner, the resources needed
a) To implement and improve the processes of
the quality management system, and
b) To address customer satisfaction.

6.1 Provision of resources

86

Personnel who are assigned responsibilities

defined in the quality management system
shall be competent on the basis of applicable
education, training, skills and experience.

6.2.1 Assignment of personnel

87

The organization shall:

a) Identify competency needs for personnel
performing activities affecting quality;
b) Provide training to satisfy these needs;
c) Evaluate the effectiveness of the training
provided;

6.2.2 Training, awareness and

competency

88

d) Ensure that its employees are aware of he

relevance and importance of their activities
and how they contribute to the
achievement of the quality objective;
e) Maintain appropriate records of education,
experience, training and qualifications.

6.2.2 Training, awareness and

competency

89

The organization shall control its purchasing

processes to ensure purchased product conforms
to requirements.
The type and extent of control shall be dependent
upon the effect of subsequent realization
processes and their output.

7.4.1 Purchasing control

90

The organization shall evaluate and select

suppliers based on their ability to supply
product in accordance with the organizations
requirements.
Criteria for selection on periodic evaluation shall
be defined.
The result of evaluations and follow-up actions
shall be recorded

7.4.1 Purchasing control

91

Purchasing documents shall contain information

describing the product to be purchased,
including where appropriate:
- personnel

7.4.2 Purchasing information

Lecture 2% of the Overall Grade

What are the benefits of ISO?

 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.

(cont.)

Benefits of ISO 9001 and ISO 14001

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

(cont.)

Benefits of ISO 9001 and ISO 14001

Increased Productivity

Everyone Wins

What are the costs?

Complexity of processes

Size of Organization

State of Preparedness

Costs Determined by

1. Registrar
2. Internal

Costs

1.
2.
3.
4.
5.
6.
7.

Auditors Fees & Expenses

Application Fee
Registration Fee
Initial Assessment
Registration audit
Surveillance Audits
Re-registration

Registrar

1.
2.
3.
4.
5.
6.

Gap Analysis
Training
Documentation
Implementation
Internal Audits
Consultant

Internal Cost

Beware
of
The
Iceberg
Effect
Only
10%
Visible

Can we create Public good without

government participation?

In-Class Activity

A Case Study

Implementing ISO 9000:2001

Government Agency
Startup company
Provision of benefits
Customer base
150,000
Single location
Employees 34

NHF 2003

 Individual Benefits
Institutional Benefits
Health Promotions

=> 3 Core Processes

1. Hired Quality Management

Consultant
2. Conducted Gap Analysis
3. Established Quality Policy
4. Redefined Business
Processes

Steps to ISO 9000 Certification

7. Established Quality Metrics

8. Prepared Work Instructions

5. Quality Policies
6. Quality Objectives
21 Procedures

5. Company Wide Quality Seminars

6. Prepared Quality Manual (electronic records)

Steps to ISO 9000 Certification

 ISOQUAR Ltd (2005 2009)

NCBJ (2009 present)

10.Appointed Lead Auditors

11.Conducted Pre-Assessment Audits (2)
12.Contracted Registrar

9. Audit Training (34 employees)

9. Quality Training for ALL

Steps to ISO 9000 Certification

 2008, 2011

16.Re-Registration Audits

13.2 per year

15.Surveillance Audits

13.2 per year

14.Conducted Internal Audits

13.Audit Training (34 employees)

13.Registration Audit

Steps to ISO 9000 Certification

First Year US$ 18,000

How much does it cost?

Annual US$ 5,000

First Year US$ 18,000

How much does it cost?

 A QMS involves more

that HARD measures of
quality
SOFT Measures
Teamwork
Empowerment
Management style
Working
environment

NHF Experience

1. Shift in Management
Philosophy
2. Culture of Continuous
Improvement
3. Training is Key
4. Effective Communications
5. Recognition of
Achievements
6. Results in Improved
Productivity

Lessons Learnt

 Expansion through
Merger
Mature organization
Provision of benefits,
Supply Chain, Retail
Pharmacy
Customer base 450,000
Multiple Locations
Employees - 250

NHF UPDATE

Self-evaluation
Better social discourse
Better policies
Necessary for accountability

Mobilizes societal actors:

Political action
Market mechanisms

Reporting Assumption: information

disclosure is good

.direction and focus

..must for Decision-making

Page 124

The GRIs vision is that reporting on economic,

environmental, and social performance by all
organizations is as routine and comparable as
financial reporting.

www.globalreporting.org

Started 1997/8 first

Guidelines issued in 2000
Latest Guidelines (G4) issued
in 2013

Global Reporting Initiative (GRI)

Page 126

Disclosures (79 in all)

Profile
1. Economic, EC1-9
2. Environmental, EN1-30
3. Social performance
Labour practices LA1-14
Human rights HR1-9
Society SO1-8
Product responsibility PR1-9

Reporting Principles: Materiality, Stakeholder inclusiveness,

Sustainability context, Completeness, Balance, Clarity,
Accuracy, Timeliness, Comparability, Reliability

Reporting Guidance helps decide what to report on, and interpret the
Framework.

GRI reporting

Page 127

The external assurance report assesses whether

the report provides a reasonable and balanced
presentation of performance, taking into
consideration the veracity of data in the report as
well as the overall selection of content.

Is external, done by demonstrably competent people who are

independent, and state their relationship with the organisation
Is done systematically, evidence-based, and properly documented, to
defined procedures
Assesses the extent to which the organisation has applied the GRI
Reporting Principles
Results in an publicly-available opinion or conclusions

The best external assurance

Disclosure

Accountability

What next?
Change?

Page 129

Who we are and what we believe about sustainability and

our impact, what weve done, where we operate.
How the report was produced.

5. Management approach and performance indicators

4. Governance, commitments and engagement

3. Report parameters

2. Organizational profile

1. Strategy and analysis

Profile disclosures in GRI G3

Page 130

eg infrastructure development, enhanced learning and skilling in the community

Measure the economic impacts created as a result of the organizations economic

activities and transactions.

Indirect Economic Impacts

Includes info on wages compared to local minimum, spending on local suppliers, hiring
practices.

Information about interactions in specific markets

Market presence

Includes a Value-Added statement, consideration of climate change risks and

opportunities, pension obligations, government assistance received

Direct economic impacts of the organizations activities and the economic value
added by these.

Economic performance

Economic performance disclosures

in GRI G3

Consumption: direct and indirect; savings by

conservation and efficiency; incentives to save energy
Use, impact on sources, recycling
How activities affect it, and what has been protected
and restored; strategies for the future

Energy

Water

Biodiversity

Incentives to mitigate impact on environment;

packaging
Fines paid for non-compliance with regulations
Significant environmental impact of transporting goods
and employees
Analysis of total spend on environmental protection

Products and
services

Compliance

Transport

Overall
Page 131

Total amounts (in some detail); incentives to reduce

Emissions,
effluents, waste

Amount used, by weight and volume: % that is

recycled material

Materials

Environmental performance
disclosures in GRI G3

Investment and procurement practices

Non-discrimination
Freedom of association and collective bargaining
Child labour, Security practices, Indigenous
rights
Community, Corruption, Public policy
Anti-competitive, Compliance
Customer health & safety, Marketing
communications
Product and service labelling
Customer privacy Compliance

Human rights

Society

Product
responsibility

Page 132

Employment, Labour relations, Diversity

Health & safety, Training and education

Labour

Social performance disclosures in

GRI G3

Key stakeholders of a reporting system

 Increasing need for information

Voluntary codes of conduct, environmental and sustainability reports

OUTCOMES

WBCSD, Int. Chamber of Commerce, Rio 1992, Alliances with NGOs

(1990 - ) Global corporations as partners:

Codes of non-financial conduct, transparency, certifications

(1970 - ) Corporate responsibility and accountability

movement:

socially responsible investing and consumer activism

(1970 - ) Social movements for human rights and social

justice:

Roots of GRI

 Create Public Good

Quality of reports
Performance level

Create language
Facilitate a race to the top

By companies and other actors

Frame discourse on norms of conduct

Via continuous revisions of Guidelines

Create inclusive multistakeholder discourse

Standardize & unify non-financial reporting systems

Emulate standard financial reporting guidelines

GRI Founders Vision:

A Tool
-- An Institution

Which Standards/Forums are Most

Influential on Business Practice?

Today: 880 officially registered reporters

from 57 countries

GRI Uptake

880

Too instrumental
No explicit discussion of sustainability a global challenge
No explicit discussion of norms of behavior beyond the GRI mission
Inadequate information for activist users a global challenge
Inadequate information for some investors addressed through G3

Competitors for funding a global challenge

Too pro-business depends on funding and the speed of non-business uptake

Neglect of multistakeholder dialogue addressed through G3

Not enough readers!!

Insufficiently instrumental
Too many indicators addressed through the G3
Cumbersome process a global challenge
Unclear indicators resolved in G3
Data not verified - addressed through G3/evolving role of external verification
Insufficiently cross-comparable depends on uptake/too early stage

What critics say

Attract business participation

Bring everybody to table
Get funding
Assure future continuous process
Stay ideologically independent
Emulate financial reporting guidelines
Indicators of sustainability performance
Being and staying a public good

Formidable Challenges

No full consensus on shared vision

Inconsistent expectations
Comprehensiveness vs. efficiency
Comprehensiveness vs. simplicity
Resources inadequate for the task
Needing large constituency vs. ideological
independence

RESULT: Internal tensions among the

GRI stakeholders

Announcement