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The term "Six Sigma" comes from a field of statistics known as process capability studies.
Originally, it referred to the ability of manufacturing processes to produce a very high proportion
of output within specification. Processes that operate with "six sigma quality" over the short term
are assumed to produce long-term defect levels below 3.4 defects per million opportunities
(DPMO).Six Sigma's implicit goal is to improve all processes to that level of quality or better.
Bill Smith first formulated the particulars of the methodology at Motorola in 1986. Six Sigma
was heavily inspired by six preceding decades of quality improvement methodologies such as
quality control, TQM, and Zero Defects. Six Sigma is a registered service mark and trademark
of Motorola Inc. As of 2006 Motorola reported over US$17 billion in savings from Six Sigma.
Six Sigma stands for Six Standard Deviations (Sigma is the Greek letter used to represent
standard deviation in statistics) from mean/perfection. Six Sigma methodology provides the
techniques and tools to improve the capability and reduce the defects in any process. The central
idea behind Six Sigma is that if you can measure how many “defects” you have in a process, you
can systematically figure out how to eliminate them and get as close to “zero defects” as
possible.To achieve Six Sigma Quality, a process must produce no more that 3.4 defects per
million opportunities. An opportunity is defined as a chance for nonconformance, or not
meeting the required specifications. This means one needs to be nearly flawless in executing key
processes. The process and culture is conditioned for zero defects rather than being one that
accepts that it is inevitable, and acceptable, that mistakes will occur. Hence Six Sigma delivers
substantial cost reductions, enhanced efficiencies, sustainable improvements and increased
stakeholder value.
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SIX SIGMA METRIC-
MOTOROLA METRIC-
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METHODOLOGY FOR SIX SIGMA-
Six Sigma has two key methodologies. DMAIC and DMADV, both inspired by W. Edwards
Deming's Plan-Do-Check-Act Cycle
1. Define the process improvement goals that are consistent with customer demands and
enterprise strategy.
2. Measure the current process and collect relevant data for future comparison.
3. Analyze to verify relationship and causality of factors. Determine what the relationship is,
and attempt to ensure that all factors have been considered.
4. Improve or optimize the process based upon the analysis using techniques like Design of
Experiments.
5. Control to ensure that any variances are corrected before they result in defects. Set up
pilot runs to establish process capability, transition to production and thereafter
continuously measure the process and institute control mechanisms.
DMADV- It is used to create new product or process designs for predictable, defect-free
performance.
1. Define the goals of the design activity that are consistent with customer demands and
enterprise strategy.
3. Analyze to develop and design alternatives, create high-level design and evaluate design
capability to select the best design.
4. Design details, optimize the design, and plan for design verification. This phase may
require simulations.
5. Verify the design, set up pilot runs, implement production process and handover to
process owners
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TOOLS FOR SIX SIGMA-
1. MINITAB
Minitab is a statistics package. Minitab is used in conjunction with the implementation of Six
Sigma, CMMI and other statistics-based process improvement methods.
Minitab 15, the latest version of the software, is available in 6 different languages (English,
French, German, Korean, Simplified Chinese, & Spanish).
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REVIEW OF LITERATURE
Six Sigma is becoming a cornerstone philosophy among the world’s leading corporations
because it has proven itself by generating substantial business returns. Six Sigma is also seen as a
great training ground for twenty-first century leadership. It is now fairly commonplace for people
who are well trained in Six Sigma to achieve top leadership positions.
Words from Six Sigma’s staunchest champion, Jack Welch: “We believed then and we are
convinced today . . . that there is an ‘infinite capacity to improve everything’—but there was no
methodology or disciple attached to that belief. There is now. It’s Six Sigma quality, along with
a culture of learning, sharing, and unending excitement. Daniel L. Quinn (2002,) ‘What is six
sigma?’
The first five years of Six Sigma at Motorola were very rewarding for the company. Sales grew
dramatically, better products were introduced with higher manufacturing capability and a focus
on quality, and the company's reputation soared. As a Motorola executive once said, "Our
Motorola badge could be used as a credit card." Such benefits of Six Sigma could not have been
realized by just focusing on a few projects. Instead, Six Sigma was an organization-wide,
leadership-driven, process- oriented, middle manager-led and employee-owned initiative. Gupta.
Praveen, (July 2001) issue of Circuits Assembly ‘The Birth of Six Sigma’
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Research process
1. RESEARCH OBJECTIVE-
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2. RESEARCH DESIGN-
a) Research papers
b) Books
c) Magazines
d) Internet
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Industries using six sigma
In India Wipro was one of the first companies to introduce six sigma into it’s application in
1997. Wipro’s every business from software development to hardware, FMCG, BPO, all
adapted six sigma into its processes.
In pharmaceutical industry, adaptation of six sigma technique helped the industry reduce waste
and rework involved in production. It was said that 5-10% of medicines produced during the
period were to be discarded or modified due to the defects. The adoption of six sigma helped the
pharmaceutical companies to reduce the error in production. The success story on the adoption of
six sigma prompted Pfizer to achieve the Pfizer global manufacturing mission of aiming at zero
defects through Right First Time.
Airline industry had to adapt six sigma technique for its survival. The increased cost of fuel, the
competition driven by low budget airline, etc has made the need for lower cost without a hit
quality the need of the hour. The number of errors in handling the calls from customers, and
ticketing is to be minimized drastically. It was with this intention that the airline industry adopted
the six sigma into the organization. Indian companies Kingfisher, Jet Airways and Indian airlines
all have adopted six sigma techniques into its processes
Hospitality services are another industry which are benefited by the adoption of six sigma
techniques, providing personalized services to each and every customer by bending to their
demands within the limited time without compromising the quality was aided by six sigma.
Steel industries like TISCO use this technique to minimize the inadequacies in the design,
imperfect products.
In 1998, Forbes magazine applauded the Mumbai Dabbawallahs for their way of functioning
with just 1 error in 8 million.
Logistics, insurance, call centers, all embrace the six sigma techniques for improving the quality
of services provided by them.
Irrespective of the type of industry, all companies adopt six sigma techniques as quality and
timely delivery are crucial for their survival.
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Introduction about Dabbawalas
The Dabbawalla business was founded by Mahadeo Havaji Bacche who inaugurated “The
Nutan Mumbai Tiffin Box Suppliers Trust” with a handful of illiterate employees and without
any capital investment. The Dabbawallas delivered either home-cooked meals from clients'
homes or lunches ordered for a monthly fee, from women who cook at their homes according to
the clients' specifications. The Dabbawallas' service was used by both working people and school
children. Though the work sounds simple, it is actually a highly specialized trade that is over a
century old and which has become integral to Mumbai's culture.
In 1998, Forbes Global magazine conducted a quality assurance study on the Dabbawallas'
operations and gave it a Six Sigma efficiency rating of 99.999999; the Dabbawallas made one
error in six million transactions.
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Believes of DABBAWALAHS
• Work is Worship.
• Serving People is serving god.
• Annadan is Mahadaan.
• The Decedents of the Dabbawalas were the warriors in army of Chatrapati Shivaji
Mahraj.
• Time is money.
• Unity is Power
Management Facts:
1. Time management and accuracy: Even though customers are growing, they have color
coding system, which ensures that every tiffin goes to correct person. This meal on wheel
system started from British Raj at 1850.
2. Customer is King: They are not being thought in any business schools. They just know to
serve the customer in best way.
3. No technical support: They have not more technical or logistic support. They perform
with almost 100% accuracy.
4. Marketing and advertising: They have distributed their leaflets with Microsoft laptops in
Mumbai, offering mini discount offer for food delivery.
5. Management Presentations: They have ‘Bombay Tiffin Box Supply Charity Trust’
which represent the whole system. Some of them asked to give presentations in about their
management skills.
Levels of Management:
The Trust is a co-operative body having three levels of management, viz.
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The Governing Council (also called as Panch Committee) holds meetings on the 15th day of
every month. Mukadams and dabbawallas are entitled to attend the meetings. At These meetings,
dabbawallas discussed their problems and business policies. The trust Collected Rs. 15 p.m. from
each member to maintain a welfare fund. The trust provides various services to its members,
including loan facilities for emergencies, educations expenses for children, health care etc. from
this welfare fund. The dabbawallas are organized in 15 to 20 members groups. Each group is
supervised by 4 mukadams.
Mukadams supervise to sorting dabbas (tiffin box), to keep records of payment, to settle
disputes, to search new customers and train new dabbawalas. Each group is financially
independent but work together in the delivery process. Each group serves its own customers
without hampering the interests of other.
Now the Dabbawalas are charging customers Rs. 250 to Rs.300 p.m. for their services.
Total monthly collection is shared equally among the members of the group.
Each dabbawala receives Rs. 5000 to Rs. 6000 p.m. after meeting all expenses like
railway monthly ticket, rent for handcarts, crates etc.
Newcomers who want to become dabbawala are initially hired on a salary, after
evaluating their performance they are offered membership (shareholders) of the trust and
assigned to one of the groups.
Each dabbawala is guaranteed to receive a monthly income and employment for life. As
there is no retirement age, he may work as long as he is physically fit. To become profit
sharing member of the trust, new dabbawala needs to pay a certain amount to the trust.
EXEUTIVE COMMITTEE
5 MEMBER
The entire system depends on teamwork and meticulous timing. Tiffins are Collected from
homes & taken to nearest Railway Station. Then they are sorted out for area-wise distribution, so
that single tiffin could change hands 3 to 4. Times in the course of its daily journey. Flow Logic
of Distribution
Work process-
Zone of destination
Grant road
(!2)
Point of
Church
aggregation
gate (10)
and sorting
Lower
A E parel (14)
B D
C
Distribution by carriers at
At this stage, the unloading takes place at the destination station. Re-arrangement of tiffins takes
place as per the destination area and destination building
In particular areas with high density of customers (Nariman Pt.,Fort , CST), a special crate is
dedicated to the area. This crate carries 150 tiffins and is driven by 3-4 dabbawalas.
4. Return journey
a) 1:15 - 2:00 pm – (At All Destination Stations) Here on begins the collection process
where the dabbawalas have to pick up the tiffins from the offices where they had
delivered almost an hour ago.
b) 2:00 - 2:30 pm - (At Destination Station) The dabbawalla’s meet for the segregation as
per the destination suburb.
c) 2:48 - 3:30 pm - The return journey by train where the group finally meets up after the
day’s routine of dispatching and collecting from various destination offices. Usually since
it is more of a pleasant journey compared to the earlier part of the day, the dabbawalas
lighten up the moment with merry making, joking around and singing.
d) 3:30 - 4:00 pm - (The Origin Station) This is the stage where the final sorting and
dispatch takes place. The group meets up at origin station and they finally sort out the
tiffins as per the origin area.
Dabbawala methodology
~ "Error is horror," said Talekar while explaining the operational motto. In the event of a
dabbawalla meeting with an accident en route, alternative arrangements are made to deliver the
lunchboxes.
For example, in a group of 30 dabbawallas catering to an area, five people act as redundant
members; it is these members who take on the responsibility of delivering the dabbas in case of
any untoward happenings.
~ The dabbawallas must be extremely disciplined. Consuming alcohol while on duty attracts a
fine of Rs 1,000. Unwarranted absenteeism is not tolerated and is treated with a similar fine.
~ The Gandhi cap serves as a potent symbol of identification in the crowded railway stations.
Not wearing the cap attracts a fine of Rs 25.
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Dabbawals got six sigma Certification by Forbes Group (error rate is 1 in 16 million
transactions and six sigma performances is 99.99%) Dabbawalas also got ISO 9001- 2000 for
Excellence in service. Six Sigma quality rating helps the organization streamline their delivery
systems, eliminate errors and achieve a cent percent accuracy
Around 5000 dabbawalas deliver about 200,000 tiffin boxes to factories and offices across
Mumbai with high labour intensive and with almost zero technology inputs. But they receive
international recognition after 115 years of glorious service. Every year their business grows by
25000 to 30000 tiffin boxes. They lose a few customers too each year but are more than
compensated with the additions. Actually they grow annually by about 10%. Till the time people
will feel hungry their business will keep growing. They have started advertising on dabbas by
putting stickers on them. This brings in extra income. Mumbai dabbawalas deliver mainly during
day time. They are not night bird. But India shifts to a 24 hours X 7 days work culture, the tiffin
boxes’ network would also work under the moon and stars. The trust faces the cut-throat
competition from the growth of fast food centers like Pizza Hut, Mac Donald’s etc. While there
are thousands of die-hard customers, rapid urbanization, increasing personal transportation and
availability of different kinds of fast food have drawn a good chunk of the younger generation
away from the home made food. But there is an increasing number of people who are health
conscious and feel that home cooked food suits their stomach and health. Even some customers
now send water along with their tiffins. Knowing this very issue the trust do not bother about the
competition. Today, the dabbawala delivers not only homemade food but also picks up food
from caterers and delivers them to offices. The food from caterers are still small segments of the
total operation. Most people want to eat homemade food in the offices without the bother of
having to carry a cumbersome tiffin box.
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\COLOUR CODING
CODING OF DABBAS
1-11 - Church gate CHURCHGATE
12 - Marine lines
13 -Grant road,
14 -Bombay central
15 -Lower panel
16 -Dadar (west)
17 -Dadar (East), Andheri(East, West)
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SWOT Analysis
Strengths:
• Customer satisfaction
• No substitutes to home cooked food in Indian scenario hence threat to the dabbawalla
service is not an issue at least in the foreseeable future.
Weaknesses:
Opportunities
• Catering
Threats
• Change in timings
• Company transport
• Ticket restaurant
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PORTER’S FIVE FORCES-
Porter's theories, which are the basis for classical management principles, define the scope and
nature of competition a company faces to attain leadership. Surprisingly, the dabbawalas are
following these very principles in spite of their ignorance of the same."
ii) Current competition: Porter's five forces theory states that strategy is determined by
a unique combination of activities that deliver a different value proposition than
competitors or the same value proposition in a betterway.The dabbawallas do face
competition from fast food joints as well as office canteens. However, since neither of
these serve home food, the dabbawallas' core offering remains unchallenged. They have
also tied up with many catering services and hotels to cater to the vast number of office
goers.
iii) Bargaining power of buyers: The delivery rates of the dabbawallas are so nominal
(about Rs 300 per month) that one simply wouldn't bargain any further.
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Also, their current monopoly negates any scope of bargaining on the part of their customers.
Thus, we encounter a perfect win-win combination for the customers as well as the dabbawallas.
iv) Bargaining power of sellers: The dabbawallas use minimum infrastructure and practically
no technology, hence they are not dependent on suppliers. Since they are a service-oriented
organisation, they are not dependent on sellers to buy their product. Hence, sellers do not assume
any prominence as would be the case in a product-oriented company.
The strategy map framework in Porter's theory allows companies to identify and link together the
critical internal processes and human, information and organisation capital that deliver the value
proposition differently or better.
Human capital is the greatest driving force in the dabbawalla community; as a result, they are
not dependent on suppliers or technology, thus negating the seller's power in the equation.
v) Threat of a new substitute product or service: As substitutes to home cooked food are not
seen as a viable alternative in the Indian scenario, the threat to the dabbawalla service is not an
issue atleast in the foreseeable future. This gives them a leeway to probably expand their already
existing network into newer cities as demand increases in these places as well.
So, will these people next target the other metros in India? Only time will tell.
• Only investment is the hard work, honesty, promptness and time management.
• Low cost offices.
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• Very cheap hand cart.
• Easy to maintain cycles- Fuel is free air ( God given Fuel)
• Use public space for sorting.
• No IT or HR department.
3. Just serve your customer-Nothing Else
• Dabbawalas always deliver food on time- even during heavy rains.
• On time without wearing a watch.
• They do not try impress or bother customer with unsolicited offer.
• Bothering customer with unsolicited offer forces them to discontinue even existing services
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Dabbawala collection is group wise but transport is shared with other group. Competition
is only up to collection.
• Profit is shared equally within each group after deducting expenses.
• World‘s most democratic organization.
Achievements
1. Documentaries made by :
• BBC ,UTV, MTV, ZEE TV, AAJ TAK, TV TODAY, SAHARA SAMAY, STAR
TV, CNBC TV 18, CNN, SONY TV, TV TOKYO, NDTV.
3. Invitations from :
• CII for conference held in Bangalore, IIML, IIMA, CII Cochin, CII Delhi, Dr.
Reddy’s Lab Foundation Hyderabad, SCMHRD Pune, SCMHRD Nasik, Sadahana
– Pune, Rotary Club – Bangalore, NIQR at Chennai
• City Invited for marriage of Hon. Prince Charles of England on 9th April, 2005.
4. Other achievements :
• Participated in “Deal Ya No Deal Contest” by Sony Entertainment Television
• Registered with Ripley's “ believe it or not”.
• Name in “GUINESS BOOK of World Records”.
• World record in Best Time Management with Six Sigma rating
5. Radio:
• German Radio Network, Radio Mirchi, Radio Mid-day, FM – Gold, BBC Radio,
Radio
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Conclusion
The concept of ‘dabbawala’ comes into picture in one of India’s big and busiest cities– where
people can enjoy the fresh homemade lunch every day. What a wonderful service they provide. It
is not just a service but a vocation. Their main aim is customer satisfaction. The trust shows how
these illiterate or semiliterate dabbawalas have mastered the art of logistics management,
supply chain management, customer service,Just-in-time management, team work and
problem solving. People cannot believe that uneducated people can provide such an efficient
service. Even people of foreign countries (like U. K., Italy etc.) are amazed that uneducated
dabbawalas can carry out such type of business so accurately. Actually the uneducated have an
ability to memorize and retain more as opposed to the educated who are used to writing down
everything. So they claim that “our head is our computer and Gandhi cap in the computer covers
to protect it from the sun or rain.” The white–capped, white–shirted dabbawalas shot the
limelight when they were awarded the six sigma rating, but it was Prince Charles’ meeting with
them in Mumbai in November 2003 that really helped them. He was the first celebrity who
visited them. R. Megde said “Many people talk about us, but Prince Charles was the first famous
person who met the dabbaswala and encouraged them Hard work and sincerity of dabbawalas are
the two main factors to reach such levels of efficiency with such an untrained work force. They
got six sigma rating of highest operational efficiency without using any paper work or computer.
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Evolution of Six Sigma at Wipro
Wipro is the first Indian company to adopt Six Sigma. Today, Wipro has one of the most mature
Six Sigma programs in the industry ensuring that 91% of the projects are completed on schedule,
mush above the industry average of 55%.
As the pioneers of Six Sigma in India, Wipro has already put around ten years into process
improvement through Six Sigma. Along the way, it has scaled Six Sigma ladder, while helping to
roll out over 1000 projects.Six Sigma at Wipro simply means a measure of quality that strives for
near perfection so that it could transform itself in a world class organization.
At Wipro, it means:
(i) Have products and services meet global benchmarks
(ii) Ensure robust processes within the organization
(iii) Consistently meet and exceed customer expectations
(iv) Make Quality a culture within.
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Implementation of Six Sigma at Wipro
Wipro has adopted the project approach for Six Sigma, where projects are identified on the basis
of the problem areas under each of the critical Business Processes that adversely impacts the
business significantly.
Wipro has evolved following Six Sigma methodologies
Currently 15000+ employees are trained in Six Sigma methodologies. Wipro has also built up a
Six Sigma skill base of over 180 certified black belts while helping to roll out over a 1000
projects.
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Reaping the Benefits:
The financial gain that Wipro has achieved by using Six Sigma has been one of the high points.
The Six Sigma process resulted in an achievement of close to 250%, 6 minutes for 1 MB transfer
and 18 minutes for average data transfer. The set target was 200%.
Six Sigma concepts have played an important role in:
Improving performance through a precise quantitative understanding of the customer’s
requirements thereby bringing in customer focus
Improving the effectiveness in upstream processes of the software development life cycle
by defect reduction (software defects reduced by 50%) and cycle time reduction (rework
in software down from 12% to 5%).
Waste elimination and increased productivity up to 35%.
Cost of failure avoidance (installation failures down from 4.5% to 1% in hardware
business).
Tangible cost savings due to lower application development cost for customer.
Analysts remarked that Six Sigma was an indisputable success at Wipro whether in term of
customer satisfaction, improvement in internal performance, or in the improvement of
shareowner value.
The results of achieving Six Sigma are rapid and overwhelming at Wipro Its unique
methodology provides Six Sigma knowledge and skills to the client, enabling the client to create
ownership, generate results and sustain success. The maturity of Wipro’s quality processes takes
the benefits to another level, ensuring that the customers benefit from:
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Resources invested in Six Sigma by WIPRO
The graph represents the number of black belts in the organization from 1997-98 till 2006-
07, this graph clearly depicts the sharp increase in the number of professionals.
The graph represents the savings made by WIPRO due to implementation of six sigma.
And by looking at the two graphs i.e. the resources employed and the savings incurred it
can be seen that they represent “A DIRECT RELATION TO EACH OTHER”.
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INTENATIONAL ORGANISATION FOR STANDARDS (ISO)
ISO (International Organization for Standardization) is the world's largest developer and
publisher of International Standards.
ISO is a network of the national standards institutes of 159 countries, one member per
country, with a Central Secretariat in Geneva, Switzerland, that coordinates the system.
ISO is a non-governmental organization that forms a bridge between the public and private
sectors. On the one hand, many of its member institutes are part of the governmental
structure of their countries, or are mandated by their government. On the other hand, other
members have their roots uniquely in the private sector, having been set up by national
partnerships of industry associations.
Therefore, ISO enables a consensus to be reached on solutions that meet both the
requirements of business and the broader needs of society.
What standards do
ISO standards:
make the development, manufacturing and supply of products and services more
efficient, safer and cleaner
facilitate trade between countries and make it fairer
provide governments with a technical base for health, safety and environmental
legislation, and conformity assessment
share technological advances and good management practice
disseminate innovation
safeguard consumers, and users in general, of products and services
make life simpler by providing solutions to common problems
ISO standards provide technological, economic and societal benefits.
For businesses, the widespread adoption of International Standards means that suppliers
can develop and offer products and services meeting specifications that have wide
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international acceptance in their sectors. Therefore, businesses using International
Standards can compete on many more markets around the world.
For innovators of new technologies, International Standards on aspects like
terminology, compatibility and safety speed up the dissemination of innovations and
their development into manufacturable and marketable products.
For customers, the worldwide compatibility of technology which is achieved when
products and services are based on International Standards gives them a broad
choice of offers. They also benefit from the effects of competition among suppliers.
For trade officials, International Standards create "a level playing field" for all
competitors on those markets. The existence of divergent national or regional
standards can create technical barriers to trade. International Standards are the
technical means by which political trade agreements can be put into practice.
For the planet we inhabit, International Standards on air, water and soil quality, on
emissions of gases and radiation and environmental aspects of products can
contribute to efforts to preserve the environment.
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The ISO brand
Democratic
Every full member of ISO has the right to take part in the development of any standard which
it judges to be important to its country's economy. No matter what the size or strength of that
economy, each participating member in ISO has one vote. Each country is on an equal
footing to influence the direction of ISO's work at the strategic level, as well as the technical
content of its individual standards.
Voluntary
Market-driven
ISO only develops standards for which there is a market requirement. The work is mainly
carried out by experts from the industrial, technical and business sectors which have asked for
the standards, and which subsequently put them to use.
Consensus
ISO standards are based on international consensus among the experts in the field.
Consensus, like technology, evolves and ISO takes account both of evolving technology and
of evolving interests by requiring a periodic review of its standards at least every five years
to decide whether they should be maintained, updated or withdrawn. In this way, ISO
standards retain their position as the state of the art.
Globally relevant
ISO standards are technical agreements which provide the framework for compatible
technology worldwide. They are designed to be globally relevant - useful everywhere in the
world.
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How to recognize an ISO standard
In paper form, an ISO standard is published in A4 format - which is itself one of the ISO
standard paper sizes. It may be anywhere between a four-page document and one several
hundred pages' long. ISO standards are also available as electronic downloads and many are
available as part of a collection on CD or in handbook. An ISO standard carries the ISO
logo and the designation, "International Standard".
ISO has more than 18 000 International Standards and other types of normative documents in
its current portfolio. ISO's work programme ranges from standards for traditional activities,
such as agriculture and construction, through mechanical engineering, manufacturing and
distribution, to transport, medical devices, information and communication technologies, and
to standards for good management practice and for services.
The vast majority of ISO standards are highly specific to a particular product, material, or
process. However, ISO 9001 (quality) and ISO 14001 (environment) are "generic
management system standards". "Generic" means that the same standard can be applied to
any organization, large or small, whatever its product or service, in any sector of activity, and
whether it is a business enterprise, a public administration, or a government department. ISO
9001 contains a generic set of requirements for implementing a quality management system
and ISO 14001 for an environmental management system.
ISO's origins
In 1946, delegates from 25 countries met in London and decided to create a new international
organization, of which the object would be "to facilitate the international coordination and
unification of industrial standards". The new organization, ISO, officially began operations
on 23 February 1947, in Geneva, Switzerland.
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Who can join ISO
Full members, known as member bodies, each have one vote, whatever the size or
strength of the economy of the country concerned.
Correspondent members pay reduced membership fees. They are entitled to
participate in any policy or technical body as observers, with no voting rights.
Subscriber members also pay reduced membership fees. They are institutes from
countries with very small economies that nevertheless wish to maintain contact with
international standardization.
Although individuals or enterprises are not eligible for membership, both have a range of
opportunities for taking part in ISO's work:
All strategic decisions are referred to the ISO members, who meet for an annual General
Assembly. The proposals put to the members are developed by the ISO Council, drawn from
the membership as a whole, which resembles the board of directors of a business
organization.
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ISO Council meets twice a year and its membership is rotated to ensure that it is
representative of ISO's membership.
ISO's national members pay subscriptions that meet the operational cost of ISO's Central
Secretariat. The subscription paid by each member is in proportion to the country's Gross
National Income and trade figures. Another source of revenue is the sale of standards.
However, the operations of ISO Central Secretariat represent only about one fifth of the cost
of the system's operation. The main costs are borne by the member bodies that manage the
specific standards development projects and the business organizations that provide experts
to participate in the technical work. These organizations are, in effect, subsidizing the
technical work by paying the travel costs of the experts and allowing them time to work on
their ISO assignments.
ISO launches the development of new standards in response to the sectors that express a
clearly established need for them. An industry or business sector communicates its
requirement for a standard to one of ISO's national members. The latter then proposes the
new work item to ISO as a whole. If accepted, the work item is assigned to an
existing technical committee. Proposals may also be made to set up technical committees to
cover new scopes of activity.
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At the end of 2006, there were 3 041 technical bodies in the ISO system, including 193 ISO
technical committees.
The focus of the technical committees is specialized and specific. In addition, ISO has three
general policy development committees that provide strategic guidance for the standards'
development work on cross-sector aspects. These committees ensure that the specific
technical work is aligned with broader market and stakeholder group interests. They are:
ISO standards are developed by technical committees comprising experts from the industrial,
technical and business sectors which have asked for the standards, and which subsequently
put them to use. These experts may be joined by representatives of government agencies,
testing laboratories, consumer associations, non-governmental organizations and academic
circles.
The experts participate as national delegations, chosen by the ISO national member institute
for the country concerned. These delegations are required to represent not just the views of
the organizations in which their participating experts work, but of other stakeholders too.
According to ISO rules, the member institute is expected to take account of the views of the
range of parties interested in the standard under development. This enables them to present
a consolidated, national consensus position to the technical committee.
ISO standards are developed by experts from the sectors which have asked for them.
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How ISO standards are developed
The national delegations of experts of a technical committee meet to discuss, debate and
argue until they reach consensus on a draft agreement. This is circulated as a Draft
International Standard (DIS) to ISO's membership as a whole for comment and balloting.
Many members have public review procedures for making draft standards known and
available to interested parties and to the general public. The ISO members then take account
of any feedback they receive in formulating their position on the draft standard.
If the voting is in favour, the document, with eventual modifications, is circulated to the
ISO members as a Final Draft International Standard (FDIS). If that vote is positive, the
document is then published as an International Standard.
Every working day of the year, averages of eight ISO meetings are taking place somewhere
in the world. In between meetings, the experts continue the standards' development work by
correspondence. Increasingly, their contacts are made by electronic means and some ISO
technical bodies have already gone over entirely to working electronically, which speeds up
the development of standards and cuts travel costs.
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