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QUALITY MANAGEMENT MODULE

PERSONAL ESSAY

ETSI CAMINOS CANALES Y PUERTOS


THIRD COURSE
TABLE OF CONTENTS
INTRODUCTION............................................................................................................................. 2
Why is Quality Management important?.............................................................................. 2
WEEK 1 .......................................................................................................................................... 2
Why are production systems increasingly complex? ............................................................ 2
In this context, how is the organisation of work evolving? .................................................. 2
How does it relate with what we know about human motivation? ..................................... 3
WEEK 2 .......................................................................................................................................... 3
Which are the different conceptions and understandings of "quality"? .............................. 3
How is the concept of quality evolving? ............................................................................... 3
Why is quality important for an organization? ..................................................................... 4
Which are the most relevant factors we should take into account in order to guarantee
quality in our organization? .................................................................................................. 4
WEEK 3 .......................................................................................................................................... 4
Review the eight principles (or fundamental concepts) underlying the quality
management systems we have explored this week (ISO9000 and EFQM)........................... 4
Analyze the existing similarities and differences between the principles underlying each
system. .................................................................................................................................. 5
Reflect on how this principles may transform an organization. ........................................... 5
WEEK 4 .......................................................................................................................................... 6
Reflect on the transformation businesses are undergoing regarding sustainability. ........... 6
Why do they care about sustainability?................................................................................ 6
How are they changing the way they operate? .................................................................... 7
How can they guarantee sustainability not only within their company's boundaries but
also throughout their supply chain? ..................................................................................... 7
CONCLUSION................................................................................................................................. 8
BIBLIOGRAPHY.............................................................................................................................. 9

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INTRODUCTION
Why is Quality Management important?
Quality management has become an essential part of all businesses. No matter what type of industry
you call your executive home, this topic is sure to be on the forefront of all business processes you
implement.
Quality management is the process of controlling, ensuring, and improving quality; both in business
operations and productivity. If customers are satisfied, chances are they feel they are receiving high-
quality products that are constantly improved upon in order to keep up with the ever-changing times.
Quality management is crucial to the success of a business. It takes place throughout an organisation
in several different areas. Teams are often formed for the purpose of implementing programs. These
programs cover the organisation as a whole and encompass every aspect of the business. For example,
managers must implement these processes in order to make sure their employees are performing up to
the highest of standards. In order to make this happen, various tools must be put into place that will aid
employees in completing various business tasks. These tools will then allow them to do this to the best of
their abilities.
Products and services are also important parts of quality management. No matter what a particular
organisation sells, quality is a necessary part of it. Customers expect good products and services and want
to know that their hard earned money is going toward something that will not only benefit them now, but
will also last for a long time.
A successful business is like a well-oiled machine. Team members work together to ensure their area
turns out quality work. All those areas come together in one big corporation that offers customers
products or services that serve a specific purpose. That is why it is important for managers to keep all
areas informed of what is going on in the organisation as a whole. If each area understands what the
others are doing and why they exist, the work turned out will be more uniform and pointed toward a
specific cause.
High quality means success. Happy customers will be returning ones and that is what every
organisation strives for at the end of the day. Quality management is a process that must receive constant
attention in order to be successful. That is why there are employees devoted to controlling, maintaining,
and improving quality on an ongoing basis.

WEEK 1
Why are production systems increasingly complex?
In order to begin answering this question, it is important to know what a production system is. A
production system is a set of interrelated elements designed to meet the individual and collective needs
of goods and services. Normally, when we talk about a production system we must focus on the
organisations of which it is composed. These organisations are formed by a group of people with an
established set of rules or standards that determine how they must operate at any time. This whole group
shares a common target or purpose for what they will use a series of financial, material and information
resources in order to achieve it.
According to the complexity of the production systems we must point out that one of the main issues,
if we want to call it so, is that we are living in a high-technology based time. This fact brings high complexity
in itself for products and processes aswell, so that we end up in high complex production systems. This is
not the only reason why production systems are becoming really complex. We can also talk about
logistical problems in terms of large volume of tasks and relationships between different structures inside
the organisation.
In this context, how is the organisation of work evolving?
All these factors affect the production systems of the company but also the general organisation of
work. In this context, it is remarkable to mention the Taylorism as a management theory and then its
influence in the actual organisation of work.
As said before, Taylorism is a management theory aimed to improve the economic efficiency by the
improvement of the labor productivity. This management philosophy separates the planning tasks from
the execution tasks, the indirect labor from the direct labor, estimates with accurate measurements,
introduces time control and considers the payment-by performance a method of wage determination.
Nowadays, Taylorism is considered obsolete but many of its topics, such as analysis, synthesis, logic,
empiricism, efficiency and work ethics are still very important on current management theories.

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Another important concept that affects the evolution of the organisation of work is the organisation
culture. This term refers to the organizations philosophy and values that hold it together, and is expressed
in the everyday life of the organizational performance. These philosophy and values can be seen as the
inner forms of working, interactions with the customers, future expectations and lessons learned that are
important enough to pass on the next generation. It is also based on personal and shared attitudes and
beliefs, and norms, behaviors and artifacts that are basically developed over the time and reflects how
the organization conducts its business.
All this defines a unique and own characteristic for every organinzation that is really hard to imitate
and has been developed over the time and according to the business experience.
How does it relate with what we know about human motivation?
These kind of new concepts, such as, organisational culture, production system, supply chain, etc.,
which we are dealing within the company world have been developing over time because of one key point
that is related with a human factor: the human motivation.
Motivation is defined as "a reason or reasons for acting or behaving in a particular way". In the context
of quality management, it refers to the process through which managers encourage employees to be
productive and effective. The factors stimulating the peoples behavior can be desire for money, success,
recognition or job-satisfaction.
Motivation can be divided into two different types: extrinsic and intrinsic. Extrinsic motivation relies
on factors outside of individual personal motives. Attributes of extrinsic motivation include recognition
awards, performance goals, bonuses, etc., but they also may be driven by the fear of failure and
punishment. On the other hand, intrinsic motivation is derived from intangible factors. As opposed to the
extrinsic motivation, the inspiration for acting on intrinsic motivation can be found in the action itself.
Attributes of intrinsic motivation include pursuit of knowledge, recognition, responsibility and
accomplishment.

WEEK 2
Which are the different conceptions and understandings of "quality"?
In business, engineering and manufacturing, quality has a pragmatic interpretation as the non-
inferiority or superiority of something. It is also defined as fitness for purpose. Quality is a perceptual,
conditional, and somewhat subjective attribute and may be understood differently by different people.
Consumers may focus on the specification quality of a product/service, or how it compares to competitors
in the marketplace. Producers might measure the conformance quality, or degree to which the
product/service was produced correctly.
How is the concept of quality evolving?
Over the past few decades there have been several leaders who have been instrumental to developing
the concept of quality as understood today.
Joseph M Juran is one of these key figures. Using eastern philosophies learnt in Japan, he advocated
the idea that quality related to "fitness for use".
Juran believed that this definition of quality fell into two key areas. Higher quality products had a
greater number of features which fit with the requirements of the consumer and also had fewer defects.
His book "Managerial Breakthrough" published in the 1960s was the first to offer a step-by-step
sequence for improvement, while the Juran Trilogy, published in the 1980s, produced the three definitive
quality management processes; quality planning, quality improvement and quality control.
Another founding father of quality, W Edwards Deming also took what he learnt in Japan and brought
it to the west. His 14 points were presented in his work "Out of the Crisis", published in 1982 and had
been learnt in Japan following the second world war.
His approach led to the creation of the theory of total quality management and linked the concept of
quality with efficient management.
Deming said managers were required to have a system of profound knowledge, comprised of
appreciation of a system, theory of knowledge, the psychology of change and knowledge about variation.
Philip Cosby is the man behind the four absolutes of quality management and furthered the idea that
quality was about conforming to a series of requirements, rather than reaching a poorly defined
benchmark of goodness.
His absolutes centred about the concept that quality should be prevented rather than detected and
corrected, the standard for performance should be zero deficits and quality should be measured by the
price of non-conformity.

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Crosby laid out 14 steps for quality improvement, ensuring that the principle is embedded throughout
the organisation and throughout all business processes.
Indeed, one of Crosby's most commonly quoted phrases is "If quality isn't ingrained in the
organisation, it will never happen."
Why is quality important for an organization?
Managing quality is crucial for small businesses. Quality products help to maintain customer
satisfaction and loyalty and reduce the risk and cost of replacing faulty goods. Companies can build a
reputation for quality by gaining accreditation with a recognized quality standard, such as ISO 9001,
published by the International Organization for Standardization.
Which are the most relevant factors we should take into account in order to guarantee quality
in our organization?
Your customers expect you to deliver quality products. If you do not, they will quickly look for
alternatives. Quality is critical to satisfying your customers and retaining their loyalty so they continue to
buy from you in the future. Quality products make an important contribution to long-term revenue and
profitability. They also enable you to charge and maintain higher prices.
Quality influences your companys reputation. The growing importance of social media means that
customers and prospects can easily share both favorable opinions and criticism of your product quality
on forums, product review sites and social networking sites, such as Facebook and Twitter. A strong
reputation for quality can be an important differentiator in markets that are very competitive. Poor quality
or a product failure that results in a product recall campaign can create negative publicity and damage
your reputation.
Accreditation to a recognized quality standard may be essential for dealing with certain customers or
complying with legislation. Public sector companies, for example, may insist that their suppliers achieve
accreditation with quality standards. If you sell products in regulated markets, such as health care, food
or electrical goods, you must be able to comply with health and safety standards designed to protect
consumers. Accredited quality control systems play a crucial role in complying with those standards.
Accreditation can also help you win new customers or enter new markets by giving prospects independent
confirmation of your companys ability to supply quality products.
Poor quality increases costs. If you do not have an effective quality control system in place, you may
incur the cost of analyzing nonconforming goods or services to determine the root causes and retesting
products after reworking them. In some cases, you may have to scrap defective products and incur
additional production costs to replace them. If defective products reach customers, you will have to pay
for returns and replacements and, in serious cases, you could incur legal costs for failure to comply with
customer or industry standards.

WEEK 3
Review the eight principles (or fundamental concepts) underlying the quality management
systems we have explored this week (ISO9000 and EFQM).
The Fundamental Concepts of Excellence (EFQM) outline the foundation for achieving sustainable
excellence in any organisation. They can be used as the basis to describe the attributes of an excellent
organisational culture. They also serve as a common language for top management.
There Fundamentals Concepts are:
1. Adding value for customers. Excellent organisations consistently add value for customers by
understanding, anticipating and fulfilling needs, expectations and opportunities.
2. Creating a sustainable future. Excellent organisations have a positive impact on the world around
them by enhancing their performance whilst simultaneously advancing the economic,
environmental and social conditions within the communities they touch.
3. Developing organisational capability. Excellent organisations enhance their capabilities by
effectively managing change within and beyond the organisational boundaries.
4. Harnessing creativity and innovation. Excellent organisations generate increased value and levels
of performance through continual improvement and systematic innovation by harnessing the
creativity of their stakeholders.
5. Leading with vision, inspiration and integrity. Excellent organisations have leaders who shape the
future and make it happen, acting as role models for its values and ethics.

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6. Managing with agility. Excellent organisations are widely recognised for their ability to identify
and respond effectively and efficiently to opportunities and threats.
7. Succeding through the talent of people. Excellent organisations value their people and create a
culture of empowerment for the achievement of both organisational and personal goals.
8. Sustaining outstanding results. Excellent organisations achieve sustained outstanding results that
meet both the short and long term needs of all their stakeholders, within the context of their
operating environment.
The International Organisation for Standardization (ISO) 9000 describes the fundamental concepts and
principles of quality management which are universally applicable to the following:
1. Customer focus. The primary focus of quality management is to meet customer requirements and
to strive to exceed customer expectations.
2. Leadership. Leaders at all levels establish unity of purpose and direction and create conditions in
which people are engaged in achieving the organizations quality objectives.
3. Engagement of people. Competent, empowered and engaged people at all levels throughout the
organization are essential to enhance its capability to create and deliver value.
4. Process approach. Consistent and predictable results are achieved more effectively and efficiently
when activities are understood and managed as interrelated processes that function as a
coherent system.
5. Improvement. Successful organizations have an ongoing focus on improvement.
6. Evidence-based decision making. Decisions based on the analysis and evaluation of data and
information are more likely to produce desired results.
7. Relationship management. For sustained success, an organization manages its relationships with
interested parties, such as suppliers.
Analyze the existing similarities and differences between the principles underlying each
system.
Both of them have a customer focus, leadership and people involvement. However EFQM gives an
emphasis not only on peoples involvement, but also on their development. Development and
involvement of people is presented as non-separated process. The models also recognize the importance
of the process and management of this process and that decision should be made on facts. Despite the
fact that each model has continual improvement as a principle, the EFQM includes innovations and
learning as principles to sustainable success. As far as partnership development is concerned ISO is limited
only with beneficial relationships with the suppliers, while the EFQM focuses on satisfying the needs of
all stakeholders, including shareholders, suppliers, customers and employees. Moreover, EFQM includes
principles such as Public responsibility and Result orientation, which are not covered in ISO. Thus, the
comparison of the principles shows that although ISO and EFQM have many common things, EFQM covers
them in wider scope.
As far differences of the models are concerned, one of the significant differences is the way models
measure and assess the performance of the organization. While ISO uses so called Quality Audit, EFQM
uses Self-assessment approach.
Differences of QA and SA
QA comparison of the organizational performance evidence with the standard to find out
whether findings comply or not with the standard;
SA identification of strengths, weaknesses and opportunities for further development of the
organization in areas presented by EFQM criteria;
QA comparison is made with the static standard;
SA comparison in dynamic with the continually improving points of excellence;
QA is implemented by qualified external auditor;
SA is implemented by trained employees within the company
QA function-based process and covers just one process in organization at one audit time
SA covers all functions and processes in organization
QA single procedure
SA five different approaches depends on maturity of organization and effort put in the SA.
Reflect on how this principles may transform an organization.
Customer focus. Sustained success is achieved when an organization attracts and retains the
confidence of customers and other interested parties. Every aspect of customer interaction provides an

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opportunity to create more value for the customer. Understanding current and future needs of customers
and other interested parties contributes to sustained success of the organization.
Leadership. Creation of unity of purpose and direction and engagement of people enable an
organization to align its strategies, policies, processes and resources to achieve its objectives.
Engagement of people. To manage an organization effectively and efficiently, it is important to involve
all people at all levels and to respect them as individuals. Recognition, empowerment and enhancement
of competence facilitate the engagement of people in achieving the organizations quality objectives.
Process approach. The quality management system consists of interrelated processes. Understanding
how results are produced by this system enables an organization to optimize the system and its
performance.
Improvement. Improvement is essential for an organization to maintain current levels of performance,
to react to changes in its internal and external conditions and to create new opportunities.
Evidence-based decision making. Decision making can be a complex process, and it always involves
some uncertainty. It often involves multiple types and sources of inputs, as well as their interpretation,
which can be subjective. It is important to understand cause-and-effect relationships and potential
unintended consequences. Facts, evidence and data analysis lead to greater objectivity and confidence in
decision making.
Relationship management. Interested parties influence the performance of an organization. Sustained
success is more likely to be achieved when the organization manages relationships with all of its interested
parties to optimize their impact on its performance. Relationship management with its supplier and
partner networks is of particular importance.

WEEK 4
Reflect on the transformation businesses are undergoing regarding sustainability.
Business sustainability, also known as corporate sustainability, is the management and coordination
of environmental, social and financial demands and concerns to ensure responsible, ethical and ongoing
success.
In a broader context, social, environmental and economic demands are considered the three pillars of
sustainability. Within the corporate world, they are sometimes referred to as thetriple bottom line. The
concept is a departure from the traditional concept of the bottom line, which evaluates all efforts in terms
of their short-term effect on profits.
In traditional corporate cultures, social and environmental concerns have typically been considered to
conflict with financial goals. Depletion of non-renewable resources, for example, is obviously not a
sustainable practice. However, because alternatives typically require investments
in infrastructure, continuing to rely upon fossil fuels is the least expensive short-term option.
The goal of sustainability requires a more extended timeline for return on investment but once initial
investments are made, they can actually lead to increased profitability.
Similarly, investments in socially ethical practices may initially cost a business money but typically lead
to enhanced recruitment, branding and public relations, which all tend to lead to increased profitability.
Why do they care about sustainability?
In today's increasingly competitive landscape, more and more companies are realizing that being
sustainable is more than an environmental gestureit makes long-term economic sense.
Here are some of the top reasons companies should care about sustainability:
Cost Savings. Sustainability is first about improving the bottom line.
Consumer demand. Being green not only saves money, it also creates new revenue by attracting
customers who care about a company's environmental footprint.
Risk mitigation. With energy costs rising and uncertainty in supply, it is important that companies
start re-thinking how they obtain and use inputs
Leadership. Traditionally, companies adopted sustainability strategies in order to comply with
government regulations and avoid fines. Now leading-edge corporations are embracing the
concept of sustainability in order to be a part of the conversation on environmental policy.
Tax incentives. According to Area Development, federal, state, and local governments offer a
range of financial incentives for undertaking environmentally-responsible activities.
These include investment-, production-, or consumption-based income tax credit, accelerated
depreciation for certain capital expenses, exemptions from state or local sales taxes, and cash
grants.

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Employee retention. Working for a bigger cause excites employees.
Brand reputation and publicity. Fostering positive consumer relations through sustainable
initiatives generates brand value and improves a company's image.
Resource limitations. Natural resources like fossil fuels and water are finite. As scarcity increases,
cost also increases.
Keeping up with the competition. Companies do believe sustainability is necessary to be
competitive in todays market.
New revenue opportunities. Companies are looking ahead to see how natural resources, climate
change, and energy can drive innovation and inspire new business models, products and services.
These are the factors that are going to determine future winners and losers in the marketplace.
How are they changing the way they operate?
Nowadays, more and more companies are coming up with a new understanding of sustainability as an
opportunity for innovation, competitive advantage, differentiation and growth.
This new idea suggests seven key approaches that businesses must adopt in order to transform their
strategies, business models and value chains.
1. Realism and context. Companies taking the most ambitious action on sustainability are also the
most realistic about the scale of the risks and are more likely to admit that business is not doing enough.
Understanding the challenge allows these companies to appreciate the opportunity for future growth in
providing solutions to sustainability issues and to target strategies to achieve it.
2. Growth and differentiation. There is the emergence of a two-speed world in sustainability, between
those companies still reacting to external expectations and focusing on incremental mitigation, and those
that see sustainability through a more expansive lens of growth. Many CEOs of leading companies say the
urgency of global challenges provides an opportunity to differentiate products and services, to access new
markets and to expand into new regions, countries and areas where their products can meet a pressing
need.
3. Value and performance. For companies seeking to go beyond incremental change and tackle global
sustainability issues, the challenge is twofold: not just to measure and manage metrics of reduction and
mitigation, but also to quantify the value of initiatives and more sustainable business models to the
company, and to track their impact on the communities in which they operate.
4. Technology and innovation. Leaders in the field are securing business advantage through innovative
research and development, as well as the deployment of technologies in order to tackle environmental
and social pressures. These range from investment in renewables and intelligent infrastructure enabled
by machine-to-machine communications technology, to new closed-loop business models.
5. Partnerships and collaboration. CEOs are more readily acknowledging the role of collaboration and
partnerships in meeting their ambitions on sustainability. These partnerships go across all sectors of
society and range from governments, policymakers and industry peers to consumers and NGOs.
6. Engagement and dialogue. There is an increasing recognition of the need to establish a constructive,
two-way dialogue with all stakeholders; consumers and local communities, regulators, policymakers,
investors, shareholders, employees and labour unions. Rather than simply acting and then
communicating, CEOs are actively engaging stakeholders to negotiate the role of their business in
addressing global challenges.
7. Advocacy and leadership. Progressive CEOs are clear that business efforts on their own are not
sufficient to set the global economy on track. Instead, they believe business should lead the way toward
defining and delivering a sustainable global economy, where business leaders' advocacy and public
commitment will be integral to further progress.
How can they guarantee sustainability not only within their company's boundaries but also
throughout their supply chain?
Supply chain sustainability is a holistic perspective of supply chain processes and technologies that
goes beyond the focus of delivery, inventory and traditional views of cost. This emerging philosophy is
based on a commonly accepted principle that socially responsible products and practices are not only
good for the environment, but are also important for long-term profitability.
In practice, supply chain sustainability can include projects to reduce energy costs and any form of
waste as well as ones to apply green technologies within transportation and logistics networks. A larger
shift involves a deeper level of collaboration with internal and external supply chain partners to reexamine
delivery methods, products, packaging and measurement systems.

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CONCLUSION
To conclude this paper we will focus on the key ideas we have been dealing with along this Quality
Management Module and those of which have allowed us to understand what quality actually is.
In its broadest sense, quality is a degree of excellence: the extent to which something is fit for its
purpose. In the narrow sense, product or service quality is defined as conformance with requirement,
freedom from defects or contamination, or simply a degree of customer satisfaction. In quality
management, quality is defined as the totality of characteristics of a product or service that bears on its
ability to satisfy stated and implied needs. Quality is also rapidly embracing the nature or degree of impact
an organisation has on its stakeholders, environment and society.
Meeting requirements. Specifications are an imprecise means of conveying subjective aspects. For
instance, the characteristics of friendliness or courtesy in a service industry are difficult to measure
reliably and repeatedly. Therefore, conformance to requirements is not necessarily all there is to achieving
quality.
Quality is a result. Quality is the result of a comparison between what was required and what was
provided. It is judged not by the producer but by the receiver. The judgement can be made of an intention,
as is the case when selecting suppliers, or an output, as is the case when purchasing a product or service.
Customer satisfaction. The only true measure of acceptable quality is customer satisfaction, which
takes into account both objective and subjective interpretations of the needs and expectations of
customers. If customers are satisfied with the products and services offered, the organisation has not only
correctly interpreted customer needs and expectations but it is also providing products and services of
acceptable quality.
Changing customer perceptions. Customer needs and expectations are constantly changing.
Awareness of new technology, legislation, problems, competitor products or services creates new wants
for customers. Therefore, it is vital for organisations to constantly improve quality so that satisfied
customers are retained as well as created.
What quality is not. Quality is not perfection, a standard, a procedure, a measure or an adjective. No
amount of inspection changes the quality of a product or service. Quality is not a specific characteristic of
an entity but the extent to which that characteristic meets certain needs. The value of the characteristic
is unimportant - it is how its value compares with customer needs that signifies its quality.
Why should an organisation be interested in quality? Every business exists not to make a profit, as
many would have us believe, but to create and retain satisfied customers. A business would have no
profits if it failed to create and retain satisfied customers. Providing products and services which meet
customer needs and expectations creates satisfied customers. Anticipating future needs and expectations
retains satisfied customers. Therefore, quality is vital to the survival of every enterprise.
What does quality apply to? Every product, service, process, task, action, decision can either be
acceptable or unacceptable. Hence, there is an intrinsic quality in everything that an organisation does.
Everyone must pay attention to quality, from the chief executive to the shopfloor across all functions in
an enterprise. It is as important for support staff to pay attention to quality as production staff.
How can quality be achieved? Several methods have evolved to achieve, sustain and improve quality.
They are known as quality control, quality improvement and quality assurance - collectively known as
quality management. Quality management is not the preserve of one manager but of all managers.
Quality is achieved through a chain of processes, each of which has to be under control and subject to
continual improvement.
The chain starts with top management expressing a firm commitment to quality, then:
establishing customer needs and expectations
designing products and services with features which reflect customer needs
building products and services so as to reproduce faithfully the design
verifying before delivery that products and services possess the features required
discovering and eliminating undesirable features in products and services
finding less expensive solutions to customer needs
making operations more efficient and effective
discovering what will delight customers and providing it
A variety of standards, philosophies, methodologies, tools, techniques and measures have been
developed to help organisations meet these goals:
management systems - ISO 9001, EFQM Model of Excellence
tools and techniques - process charts, failure mode and effects analysis, statistical process
control, quality function deployment

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BIBLIOGRAPHY

http://www.theguardian.com/sustainable-business/steps-corporate-sustainability-transformation
http://fortune.com/2015/09/24/sustainability-practices-in-business-intel-unilever-wal-mart-dupont/
https://en.wikipedia.org/wiki/Production_system
http://psychclassics.yorku.ca/Maslow/motivation.htm
https://en.wikipedia.org/wiki/Maslow%27s_hierarchy_of_needs
http://www.tutor2u.net/business/reference/quality-introduction
http://www.efqm.org/the-efqm-excellence-model
https://es.wikipedia.org/wiki/Normas_ISO_9000
http://creatingwhatmatters.co.nz/articles/10-ways-it-improves-business/
http://adingor.es/congresos/web/uploads/cio/cio2010/QUALITY_MANAGEMENT/1575-1582.pdf
http://sloanreview.mit.edu/article/managing-complex-production-processes/

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