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Common statistical tool for management or Seven Quality Tools

The Seven Tools

Histograms, Pareto Charts, Cause and Effect Diagrams, Run Charts, Scatter Diagrams, Flow Charts, Control Charts

Ishikawas Basic Tools of Quality

Kaoru Ishikawa developed seven basic visual tools of quality so that the average person could analyze and interpret data.

These tools have been used worldwide by companies, managers of all levels and employees.

Slide 1 of 3

Histogram Defined
A histogram is a bar graph that shows frequency data. Histograms provide the easiest way to evaluate the distribution of data.

Slide 2 of 3

Creating a Histogram
Collect data and sort it into categories. Then label the data as the independent set or the dependent set.
The characteristic you grouped the data by would be the independent variable. The frequency of that set would be the dependent variable.

Each mark on either axis should be in equal increments. For each category, find the related frequency and make the horizontal marks to show that frequency.

Slide 3 of 3

Examples of How Histograms Can Be Used

Histograms can be used to determine distribution of sales. Say for instance a company wanted to measure the revenues of other companies and wanted to compare numbers.

Pareto Charts
Slide 1 of 4

Pareto Chart Defined

Pareto charts are used to identify and prioritize problems to be solved. They are actually histograms aided by the 80/20 rule adapted by Joseph Juran.
Remember the 80/20 rule states that approximately 80% of the problems are created by approximately 20% of the causes.

Pareto Charts
Slide 2 of 4

Constructing a Pareto Chart First, information must be selected based on types or classifications of defects that occur as a result of a process. The data must be collected and classified into categories. Then a histogram or frequency chart is constructed showing the number of occurrences.

Pareto Charts
Slide 3 of 4

An Example of How a Pareto Chart Can Be Used

Actual chart is on the next slide

Pareto Charts
Slide 4 of 4

Cause and Effect Diagrams

Slide 1 of 4

Cause and Effect Diagram Defined

The cause and effect diagram is also called the Ishikawa diagram or the fishbone diagram. It is a tool for discovering all the possible causes for a particular effect. The major purpose of this diagram is to act as a first step in problem solving by creating a list of possible causes.

Cause and Effect Diagrams

Slide 2 of 4

Constructing a Cause and Effect Diagram

First, clearly identify and define the problem or effect for which the causes must be identified. Place the problem or effect at the right or the head of the diagram. Identify all the broad areas of the problem. Write in all the detailed possible causes in each of the broad areas. Each cause identified should be looked upon for further more specific causes. View the diagram and evaluate the main causes. Set goals and take action on the main causes.

Cause and Effect Diagrams

Slide 3 of 4

An Example of When a Cause and Effect Diagram Can Be Used

This diagram can be used to detect the problem of incorrect deliveries. When a production team is about to launch a new product, the factors that will affect the final product must be recognized. The fishbone diagram can depict problems before they have a chance to begin.

Cause and Effect Diagrams

Slide 4 of 4
Diagram of the Incorrect Deliveries Example:

Scatter Diagrams
Slide 1 of 4

Scatter Diagrams Defined

Scatter Diagrams are used to study and identify the possible relationship between the changes observed in two different sets of variables.

Scatter Diagrams
Slide 2 of 4

Constructing a Scatter Diagram First, collect two pieces of data and create a summary table of the data. Draw a diagram labeling the horizontal and vertical axes.
It is common that the cause variable be labeled on the X axis and the effect variable be labeled on the Y axis.

Plot the data pairs on the diagram. Interpret the scatter diagram for direction and strength.

Scatter Diagrams
Slide 3 of 4

An Example of When a Scatter Diagram Can Be Used

A scatter diagram can be used to identify the relationship between the production speed of an operation and the number of defective parts made.

Scatter Diagrams
Slide 4 of 4

An Example of When a Scatter Diagram Can Be Used (cont.)

Displaying the direction of the relationship will determine whether increasing the assembly line speed will increase or decrease the number of defective parts made. Also, the strength of the relationship between the assembly line speed and the number of defective parts produced is determined.
Example obtained from: <>

Flow Charts
Slide 1 of 3

Flow Charts Defined

A flow chart is a pictorial representation showing all of the steps of a process.

Flow Charts
Slide 2 of 3

Creating a Flow Chart

First, familiarize the participants with the flow chart symbols. Draw the process flow chart and fill it out in detail about each element. Analyze the flow chart. Determine which steps add value and which dont in the process of simplifying the work.

Flow Charts
Slide 3 of 3

Examples of When to Use a Flow Chart

Two separate stages of a process flow chart should be considered:
The making of the product The finished product

Run Charts
Slide 1 of 3

Run Charts Defined

Run charts are used to analyze processes according to time or order.

Run Charts
Slide 2 of 3

Creating a Run Chart

Gathering Data
Some type of process or operation must be available to take measurements for analysis.

Organizing Data
Data must be divided into two sets of values X and Y. X values represent time and values of Y represent the measurements taken from the manufacturing process or operation.

Charting Data
Plot the Y values versus the X values.

Interpreting Data
Interpret the data and draw any conclusions that will be beneficial to the process or operation.

Run Charts
Slide 3 of 3

An Example of Using a Run Chart

An organizations desire is to have their product arrive to their customers on time, but they have noticed that it doesnt take the same amount of time each day of the week. They decided to monitor the amount of time it takes to deliver their product over the next few weeks.

Control Charts
Slide 1 of 3

Control Charts Defined

Control charts are used to determine whether a process will produce a product or service with consistent measurable properties.

Control Charts
Slide 2 of 3

Steps Used in Developing Process Control Charts

Identify critical operations in the process where inspection might be needed. Identify critical product characteristics. Determine whether the critical product characteristic is a variable or an attribute. Select the appropriate process control chart. Establish the control limits and use the chart to monitor and improve. Update the limits.

Control Charts
Slide 3 of 3

An Example of When to Use a Control Chart

Counting the number of defective products or services
Do you count the number of defects in a given product or service? Is the number of units checked or tested constant?


Six Sigma Means 3.4 Defects in 1,000,000 MOTOROLA

Six Sigma is a business concept that answers customers demand for high quality and Defect-free Business process. Six Sigma was born in Motorola and developed by Mikel J. Harry. Motorola won Malcolm Baldridge Quality Award. Six Sigma is carried out as projects and mostly uses DMAIC method

Eg: Godrej -G E Assembly Plant

Defective Components were coming at the rate of 3,00,000 for one Million Parts.
Applying Six Sigma saved Rs 4 Crores Mr. Vijay Krishna, C.E.O, Godrej-G E. Were not talking about intangible savings here. Six Sigma has given us the power to measure and control costs. And that goes straight to our bottom line

Process capability is simply a measure of how good a metric is performing against established standard(s).

Upper and Lower Standards (Specifications) Spec (Low er) Out of Spec In Spec

Single Standard (Specification) Spe c

Spec (Upp er)

Out of Spec In Spec

Out of Spec

Probab ility

Probab ility

Probabil 30 ity


Process Variability Total Amount Cp Outside Limits Typical Action to be taken


4.56 % (45,500 ppm)

2700 ppm

Heavy Process Control, Sorting rework, Etc.

Heavy process Control, Inspection Reduced Inspection, Selected use of Control Charts


4 1.33

64 ppm





Process Total Amount Variability Cp Outside Limits 5 1.67 1 ppm Typical Action to be taken Spot Checking, Selected use of Control Charts Reduced for Control, Uniformity in process inputs

6 2.00


USL Process LSL Mean


Cp = Design Width / Process Width Cp = USL LSL / UCL - LCL



Competitive Level World Class


< 10%

4 3

6,210 66,807

15%-20% 20%-30%

World Class
High Quality Industry Average



> 40%

Industry Average

Six Sigma Implementation

Five-phases process
1.Establishing Management Commitment

2.Information Gathering


4.Developing Monitoring Systems

5.Business Process to Be improved

are chosen

6.Conducting Six Sigma Projects


Continuous Improvement

Six Sigma - Three Dimensions

Customer Process A Process B Vendor






Driven by customer needs

Process Map Analysis

Led by Senior Mgmt




Upper/Lower specification limits

35 30 25 20 15 10 5 0 L K A F B C G R


100% 80% 60% 40% 20% 0% D

Enabled by quality team.

Process variation


Cumulative Frequency

Pareto Chart








Determine Bench mark

Set Baseline

Determine Customer requirements

Get Customer Commitment

Map Flow process


Develop Defect Measurement

Develop Data Collection process

Collect Data

Create Forms

Compile and Display Data


Verify Data

Draw Conclusions From Data Test Conclusions

Determine Improvement Opportunities

Determine Root Causes


Create Improvement Ideas Create Models


Set Goals
Create Problem Statement

Create Solution Statement Implement Improvement Methods


Monitor Improvement Progress

Measure Improvement Statistically

Assess Effectiveness

Make Needed Adjustments


Table 1: Companies And The Year They Implemented Six Sigma

Company Name
Motorola (NYSE:MOT) Allied Signal (Merged With Honeywell in 1999) GE (NYSE:GE) Honeywell (NYSE:HON) Ford (NYSE:F)

Year Began Six Sigma



1995 1998 2000


Table 2: Six Sigma Cost And Savings By Company Year Motorola 19862001 Allied Signal 1998 GE 1996 79.2 0.2 0.3 0.2 0.2 15.1 ND 0.5 2 3.3 356.9(e) ND 16 1 4.5 Revenue ($B) Invested ($B) % Revenue Invested Savings ($B) % Revenue Savings







19961999 Honeywell 1998 1999




4.4 3


23.6 23.7


0.5 0.6

2.2 2.5

Key: $B = $ Billions, United States (e) = Estimated, Yearly Revenue 1986-1992 Could Not Be Found ND = Not Disclosed Note: Numbers Are Rounded To The Nearest Ten


The Quality Team

Master Black Belt
- Thought Leadership

- Expert on Six Sigma - Mentor Green and Black Belts

Black Belt

Green Belt

- Backbone of Six Sigma Org Black Belt - Mentor Green Belts - Full time resource - Deployed to complex or high risk projects Green Belt
- Part time or full time resource

Green Belt

- Deployed to less complex projects in areas of functional expertise


Scope of Six Sigma

Manufacturing Service Industries Hospitals Insurance Call Centre


Quality as a competitive weapon. And that is the reason for the growing move to ISO 9000 certification. The best companies are starting to insist on it. Your competitors may already be pursuing it. And if you plan to do business in Europe or Japan, it is absolutely essential.

What does the term "ISO" stand for?

The term ISO stands for the International Organization for Standardization. You would reasonably assume that it ought to be IOS, but it isn't. Apparently, the term ISO was chosen (instead of IOS), because iso in Greek means equal, and ISO wanted to convey the idea of equality - the idea that they develop standards to place organizations on an equal footing.

The International Standards Organization (ISO), in Geneva, Switzerland, was founded in 1946 to develop a common set of standards in manufacturing, trade and communications. It is composed of the national standards institutes and organizations of 97 countries worldwide, including the American National Standards Institute (ANSI).

The ISO publishes thousands of standards, but the ISO 9000 series is having a major impact on international trade. First published in 1987, the standards have been rapidly adopted by organizations in Europe, Asia and North America. In addition, there is a movement by several industries in the EEC where ISO certification is now a prerequisite to product certification. And that trend is growing.

Asia's first ISO certified saloon in Chennai What is the common strand that runs between giant industrial groups like TVS, Tatas, Birlas and the humbler Ramesh Gents' Hair Stylist on the upmarket Nungambakkam High Road in Chennai?

ISO is the worlds leading developer of International Standards

ISO standards are designed to be implemented worldwide.

ISO standards specify the requirements for state-of-the-art products, services, processes, materials and systems, and for good conformity assessment, managerial and organizational practice

What exactly is ISO 9000?

Documentation is at the core of ISO 9000 conformance. In fact, the standards have been described as this: "Say what you do. Do what you say. Write it down."

What exactly is ISO 9000?

ISO 9000 is a set of international standards for both quality management and quality assurance that has been adopted by over 90 countries worldwide. The ISO 9000 standards apply to all types of organizations, large and small, and in many industries.

What exactly is ISO 9000?

The standards require: A standard language for documenting quality practices. A system to track and manage evidence that these practices are instituted throughout the organization. A third-party auditing model to review, certify and maintain certification of organizations.

What exactly is ISO 9000?

The ISO 9000 series classifies products into generic product categories: hardware, software, processed materials and services. ISO 9000 - Explains fundamental quality concepts and provides guidelines for the selection and application of each standard. ISO 9001 - Model for quality assurance in design, development, production, installation and servicing. ISO 9004 - Guidelines for the applications of standards in quality management and quality systems.

What exactly is ISO 9000?

The ISO 9000 series classifies products into generic product categories: hardware, software, processed materials and services. ISO 9000 - Explains fundamental quality concepts and provides guidelines for the selection and application of each standard. ISO 9001 - Model for quality assurance in design, development, production, installation and servicing. ISO 9004 - Guidelines for the applications of standards in quality management and quality systems.

What are the basic functions of the ISO 9000 standards?

Simply stated, the ISO 9000 standards define "quality" in ways that have been recognized and accepted worldwide. The goal is to increase customer confidence in the quality system used by their suppliers. The standards are designed to: Establish consistent language and terminology Provide baseline quality practices that are accepted internationally Reduce the need for costly on-site supplier assessments

It doesn't matter what size they are or what they do. It can help both product and service oriented organizations achieve standards of quality that are recognized and respected throughout the world.


ISO 9000 standards don't tell you how to run your business. They only define the critical documented elements that must be taken into consideration to produce a quality product.

A Little Story
This is a story about four people named Everybody, Somebody, Anybody, and Nobody. There was an important job to be done and Everybody was sure that Somebody would do it. Anybody could have done it, but Nobody did it. Somebody got angry about that, because it was Everybody's job. Everybody thought Anybody could do it, but Nobody realized that Everybody wouldn't do it. It ended up that Everybody blamed Somebody when Nobody did what Anybody could have done!

ISO's purpose is to facilitate international trade by providing a single set of standards that people everywhere would recognize and respect.

The purpose of ISO 9001 is to assure customers that suppliers can provide quality products and services. You need to control the quality of your products and services. You need to reduce the costs associated with poor quality. Your customers want you to become certified. Your markets expect you to be certified. Your competitors are already certified

Standards and guidelines ISO 9000:2000, Quality management systems - Fundamentals and vocabulary

Purpose Establishes a starting point for understanding the standards and defines the fundamental terms and definitions used in the ISO 9000 family which you need to avoid misunderstandings in their use.

ISO 9001:2000, Quality management systems - Requirements

This is the requirement standard you use to assess your ability to meet customer and applicable regulatory requirements and thereby address customer satisfaction. It is now the only standard in the ISO 9000 family against which third-party certification can be carried.

ISO 9004:2000, Quality management systems - Guidelines for performance improvements

This guideline standard provides guidance for continual improvement of your quality management system to benefit all parties through sustained customer satisfaction. Provides you with guidelines for verifying the system's ability to achieve defined quality objectives. You can use this standard internally or for auditing your suppliers.

ISO 19011, Guidelines on Quality and/or Environmental Management Systems Auditing (currently under development)

ISO 10005:1995, Quality management Guidelines for quality plans

Provides guidelines to assist in the preparation, review, acceptance and revision of quality plans.

ISO 10006:1997, Quality management Guidelines to quality in project management

Guidelines to help you ensure the quality of both the project processes and the project products.

Gives you guidelines to ensure that a ISO 10007:1995, Quality management complex product continues to function Guidelines for configuration management when components are changed individually.

ISO/DIS 10012, Quality assurance requirements for measuring equipment Part 1: Metrological confirmation system for measuring equipment

Give you guidelines on the main features of a calibration system to ensure that measurements are made with the intended accuracy.

ISO 10012-2:1997, Quality assurance for measuring equipment - Part 2: Guidelines for control of measurement of processes

Provides supplementary guidance on the application of statistical process control when this is appropriate for achieving the objectives of Part 1.

ISO 10013:1995, Guidelines for developing quality manuals

Provides guidelines for the development, and maintenance of quality manuals, tailored to your specific needs.

ISO/TR 10014:1998, Guidelines for managing the economics of quality

Provides guidance on how to achieve economic benefits from the application of quality management.

ISO 10015:1999, Quality management Guidelines for training

Provides guidance on the development, implementation, maintenance and improvement of strategies and systems for training that affects the quality of products.

ISO/TS 16949:1999, Quality systems Automotive suppliers - Particular requirements for the application of ISO 9001:1994

Sector specific guidance to the application of ISO 9001 in the automotive industry.

Why is ISO 9000 Important?

ISO 9000 is important because of its orientation.

ISO 9000 is important because of its international orientation. . ISO is also important because of its systemic orientation.

if you want to have a quality attitude you must have a quality system. This is what ISO recognizes, and this is why ISO 9000 is important.

Why has ISO 9000 become so important?

For the first time, there is one internationally accepted standard of quality. There is a way to determine and measure that quality. There is even a way to prove it..

What about TQM?

Total Quality Management (TQM) is yet another way of approaching quality processes for your organization and may help support your ISO 9000 certification. In fact, many of the practices and policies of TQM are comparable to the ISO 9000 model. .

What about TQM?

Manufacturing experts agree that ISO 9000 certification provides a solid foundation for developing a TQM system. And if undertaken together, relatively little extra effort or expense is needed to achieve both. Even two companies who do business with each other may disagree on the standards. ISO 9000 standards are clearly defined and internationally accepted. And that makes ISO 9000 an excellent place to launch your TQM initiative

How can a company determine whether it will benefit from ISO 9000 certification?
International Does your company, or the companies you supply, have a global focus? Do you, or others in your industry, derive a significant amount of revenue from international business? Do you see that as a future growth opportunity for your organization?

How can a company determine whether it will benefit from ISO 9000 certification?
New business o Are you getting ISO 9000 inquiries from the companies you sell to? o Are there other companies you could do business with, if you gained ISO 9000 certification? o Do you do business with any government agencies? Would that represent a new source of business for you in the future?

How can a company determine whether it will benefit from ISO 9000 certification?
Quality Is quality an integral part of your entire organization, across all functions? Is your company's reputation based on quality? Is that one of the important selling points in the industry in which you compete? Do you want to give your existing quality assurance program a platform to improve quality? Most importantly, do you see quality as a competitive edge that could help you accomplish your organization's goals in the 90s?

ITC Hotel Maurya Sheraton was the first hotel in India to get ISO 14001. ... IndiaMART becomes the first ISO Certified Dotcom Company

Can it give a competitive edge? You can use ISO 9000 certification to gain or maintain approved vendor status, even when companies reduce the number of their suppliers. You can enter new and lucrative markets that were previously closed to you.

Can it give a competitive edge?

You can successfully compete with virtually any other company in your industry. In fact, small and medium-sized companies are using ISO 9000 to win business away from much larger organizations.

Documentation is at the core "Documentation sounds simple, but it's one of the principal things that must happen with ISO 9000." - Mark Morrow, Sr. Editor, Quality Systems Update

What's so funny about ISO 9000?

Arguing with an ISO 9000 auditor is like wrestling with a pig in mud . . . Sooner or later you realize the pig enjoys it!

Many manufacturers even have to undergo customer-driven "quality audits," which can be expensive and time-consuming. ISO 9000 practically eliminates the need for many customer-driven quality programs. ISO 9000 certification is a uniform standard, accepted and recognized internationally. So you save money.

you begin to accrue benefits even before you achieve ISO 9000 certification. The preparation for ISO 9000 registration involves a close analysis of your existing quality systems. ISO 9000 can improve overall business efficiency

ISO 9000 can ensure timely, accurate, accessible information ISO 9000 can help you develop "best practices" and eliminate costly surprises

ISO 9000 improves the quality of your information


Companies who have achieved ISO 9000 certification enjoy a significant advantage in satisfying their customers and gaining new ones. It also helps maintain approved vendor status, as the trend is to reduce the number of suppliers. In fact, a recent study of certified companies revealed that ISO 9000 certification had also brought unexpected benefits, such as greater operational efficiency, increased profitability, savings in administrative costs, and improvements in marketing and sales activity.

Standards make an enormous contribution to most aspects of our lives - although very often, that contribution is invisible. We are usually unaware of the role played by standards in raising levels of quality, safety, reliability, efficiency and interchangeability - as well as in providing such benefits at an economical cost.

ISO standards also have important economic and social repercussions. ISO standards make a positive difference, not just to engineers and manufacturers for whom they solve basic problems in production and distribution, but to society as a whole.

. They are useful to industrial and business organizations of all types, to governments and other regulatory bodies, to trade officials, to conformity assessment professionals, to suppliers and customers of products and services in both public and private sectors, and, ultimately, to people in general in their roles as consumers and end users

ISO standards contribute to making the development, manufacturing and supply of products and services more efficient, safer and cleaner. They make trade between countries easier and fairer. They provide governments with a technical base for health, safety and environmental legislation. They aid in transferring technology to developing countries. ISO standards also serve to safeguard consumers, and users in general, of products and services - as well as to make their lives simpler.


ISO 9000 is sweeping the world. It is rapidly becoming the most important quality standard. Thousands of companies in over 100 countries have already adopted it, and many more are in the process of doing so. Why? Because it controls quality. It saves money. Customers expect it. And competitors use it.


In a word, customers. More than just a quality standard, ISO 9000 has become a competitive advantage. In many countries, ISO 9000 compliance is a must for organizations that sell to buyers of industrial products. In the U.S. and Canada, it is becoming increasing important to manufacturers across all industries.

A simple but comprehensive set of instructions (procedures, work instructions, etc) that enable consistency of work practices and ease training of new staff. Accurate reporting mechanisms that enable the identification of adverse trends and the implementation of effective corrective action. Achievement of specific goals. Improved worker confidence and participation.

Achievement of worlds best practice. Improved efficiency and productivity. Effective management of risk. Improved marketability of products locally and internationally Reduction in paperwork Automation of document flows Improvement in morale Effective record management

How ISO standards benefit society

For businesses, suppliers can base the development of their products and services on specifications that have wide acceptance in their sectors. This, in turn, means that businesses using International Standards are increasingly free to compete on many more markets around the world.

According to leading experts, the ISO 9000 standards result in greater operational efficiency, increased productivity, reduced overtime payments, reduced administrative costs and the elimination of unnecessary procedures. And while some people think that ISO 9000 benefits are mainly for large organizations, studies have shown that they also produce significant savings for smaller companies, such as sub-contractors.

For customers, products and services are based on International Standards brings them an increasingly wide choice of offers, and they also benefit from the effects of competition among suppliers. For governments, International Standards provide the technological and scientific bases underpinning health, safety and environmental legislation.

For developing countries, important source of technological know-how. By defining the characteristics that products and services will be expected to meet on export markets, International Standards give developing countries a basis for making the right decisions when investing their scarce resources and thus avoid squandering them.

For consumers, conformity of products and services to International Standards provides assurance about their quality, safety and reliability. For everyone, International Standards can contribute to the quality of life in general by ensuring that the transport, machinery and tools we use are safe. For the planet we inhabit, International Standards on air, water and soil quality, and on emissions of gases and radiation, can contribute to efforts to preserve the environment.


In the present day, environmental matter is not limited only in one country or specific area. The environmental impact effects everywhere and leads to problem all over the world. Environmental conservation has become so complicated that it causes pressure to all business organizations. The International Organization for Standardization had led to the development of the International Standard for environmental management system series (ISO 14000).


After the success of the ISO9000 series of quality standards in 1987, the International Standards Organization is nearing completion and publication of a comprehensive set of standards for environmental management. This series of standards is designed to cover the whole area of environmental issues for organizations in the global marketplace.

The structure of the standards is as follows: Environmental Management Systems (EMS) Environmental Auditing and Related Environmental Investigations (EA) Environmental Labeling (EL) Environmental Performance Evaluation (EPE) Life Cycle Assessment (LCA) Terms and Definitions (T&D) ISO 14000 Series is the set of standards relating to environmental management system. Generally, the standard used for certification is
ISO 14001 Environmental Management Systems Specifications with Guidance for Use.


The ISO 14000 series is a set of standards concerning EMS including the activities of designing, producing, delivering and servicing. The concept of the standard is to enable the organization to continually develop and improve its EMS. Although the series comprises of many standards, the standard ISO 14001 is used as the direction for EMS certification.


Any organization: manufacturers and service organizations. Any activities of each organization may cause the environmental aspects and impacts such as noise, dust, waste, contaminants in manufacturing process and ineffectively resources consumption in servicing. These can be minimized by implementing EMS. Although each country has already had her own environmental regulations, organizations are able to apply ISO 14000 series effectively within their system on voluntary basis and the benefit obtained is not only for organizations themselves but their society also.


ISO 14000 is a series of voluntary international standards pertaining to environmental issues. They are designed to reduce the environmental effects from all aspects of business activities. It is believed that higher efficiency would be realized and "the cost of doing business" would also be reduced , by minimizing business exposure to environmental issues.

What is not ISO 14000

Is not a PRODUCT and PERFORMANCE standard.

Does not establish levels of pollutants or performance.

Does not establish test standards. Does not involve initial performance testing. Does not requires or establish final performance goal.

Does not require the meeting of zero emissions.

Does not mandate best practice technology. Does not require disclosure of performance levels. Does not require disclosure of audit results.


The reasons for developing these national standards stemmed from the European success terms of the ISO 9000 Quality Management Standards, and from the "green movement" in Europe. These standards were envisioned to provide a market-driven, competitive attitude in business. ISO 14000, which is an evolution of ISO 9000 standards, is designed to address process improvements in these environmental areas by way of energy audits, hazardous materials management, and other techniques

ISO 14000 holds great promise for reduced waste and higher material quality because it emphasizes the elimination of waste early in the procurement process, especially in industries such as coatings where there are significant amounts of raw material input.

ISO 14000 identifies and eliminates all waste that enters production through current procurement practices before it enters the manufacturing environment.

When ISO 9000 quality management systems are integrated with ISO 14000 environmental systems, the two processes support each other. Opportunities for better quality practices exist in the quest for better environmental practices, and better environmental processes are often the result of improved quality. A merged system, which is currently available, is often the answer for companies seeking improvement in both areas.

Historically, document disarray and communication redundancies have made implementation of ISO 9000 and ISO 14000 slow and costly. .
The advent of new Web-based technologies, however, makes it possible for companies to host entire documentation, project management, and training systems for the implementation of ISO 9000 and ISO 14000 standards, significantly reducing the cost of each individual component and minimizing the time to implementation.


Organizational Evaluation Standards

Product Evaluation Standards

Organizational evaluation standards are operational and effective because, the focus was on the process rather than the product. The development and acceptance of product evaluation standards will be much more difficult.

The structure of the standards is as follows: Environmental Management Systems (EMS) Environmental Auditing and Related Environmental Investigations (EA) Environmental Labeling (EL) Environmental Performance Evaluation (EPE) Life Cycle Assessment (LCA) Terms and Definitions (T&D)


EMS 14001 specification

EA 14010 general principles 14011 audit procedures 14012 auditor criteria

EPE 14031 guidelines


Environmental Labeling 14020 Basic Principles 14021 Self Discipline 14022 Symbols 14023 Testing and Verification 14024 Third Party

Environmental Aspects in Product Standards Guide 64 EAPS Guide

Life Cycle Assessment 14040 principles Framework 14041 Goals and Definition 14042 Impact Assessment 14043 Improvement Assessment


ISO 14000 Standard 14001:1996 Title Environmental Management Systems Specification with Guidance for Use Environmental Management Systems General Guidelines on Principles, Systems and Supporting Techniques Guidelines for Environmental AuditingGeneral Principles General Description Main organizational environmental standard and the ISO standard to which an EMS is formally registered Complementary document to ISO 14001 which provides more information and assistance in understanding and implementing the EMS standard. Covers the concepts of environmental auditing which can be used separately to create an organizational environmental audit program or is used to implement a program in support of the ISO 14001 EMS audit requirements Thrust Area Organizational





ISO 14000 Standard 14011:1996

Title Guidelines for Environmental Auditing Audit Procedures: Auditing of Environmental Management Systems Guidelines for Environmental Auditing: Qualification Criteria for Environmental Auditors

General Description Provides additional detail into the auditing of an EMS.

Thrust Area Organizational


Presents the consensus international requirements for certification as an environmental auditor; each national registration accreditation organization is charged with developing and implementing the program for registering auditors to the national program. Series that includes requirements for selfdeclaration, testing and validation and symbols used


1402014025 :1998

Environmental Labeling

Product specific

ISO 14000 Standard 14031:2000

Title Guidelines on Environmental Performance Evaluation

General Description Presents methods for monitoring and measuring the environmental performance of an organization or elements within the organization Provides principles and framework, inventory analysis, impact assessment and interpretation of the environmental aspects associated with specific products or services including the design, manufacture, distribution, inventory, use .

Thrust Area Organizational

14040:1997 14041:1998 14042:1999 14043:1999

Life Cycle Assessment



Terms and Definitions

Details the terminology and use of ISO 14000 specific language for consistency of meaning to support the efforts of developing and implementing the standards


ISO Guide 64:1997 (formerly 14060)

Guide for the Inclusion of Environmental Aspects in Product Standards

Provides guidelines to specification writers to consider and incorporate environmental aspects.



Prevention of pollution.
Continual Environmental Improvement. Commitment to comply with Environmental Laws and Regulations Applicable in size and scope.

ISO 14000 Policy, Continued

Establish framework for setting and reviewing objectives and targets Documented, implemented, maintained, and communicated to employees. Available to the public


ISO-14001, outlines 18 elements that must be followed if a facility wishes to be in conformance. The 18 elements are divided into six clauses Six clauses are

4.1 General Requirements 4.2 Environmental Policy 4.3 Planning 4.4 Implementation & Operation 4.5 Checking & Corrective action 4.6 Management review


Ensure commitment to the EMS and define policy that:

Is based on companys mission and values. is appropriate to the nature, scale and environmental impacts of the business includes a commitment to continual improvement includes a commitment to comply with relevant environmental legislation and regulations

is documented, maintained and communicated to all employees is available to public


Environmental aspects of activities, products, or services that the organization can control must be established, maintained, and kept up to date, in order to determine which can have significant impacts on the environment.
The organization shall insure that the aspects related to these significant impacts are considered in setting its environmental objectives.


Define Scope Periodically Review and Update

Define Process

Record Results

Gather Data

Evaluate Impacts

Assemble appropriate people

Identify Environmental Aspects

Identify Environmental Impacts

Example: Environmental Aspects

Activity Aspect Potential Impact Regulated Rating

MSW Air Emissions Combustion (Nox, SO2, metals, dioxin, CO)

Air quality degradation, smog, acid deposition



Residuals Handling
Boiler water production

Residuals (ash) Disposal

Chemical spills/release s

Land/water Yes contamination

Land/water Yes contamination Aesthetics Yes



Recyclables Windblown Receiving Litter



Procedures to ensure that the company can identify legal and other environments requirements are required to be established and maintained.
It is also required to know how the organization Access and identify legal and other requirements Keep track of changes to legal and other requirements Communicate relevant information about legal and other requirements to employees


Documented environmental objectives and targets for each relevant function and level within the organization are required to be established and maintained.

These set objectives and targets must address legal consideration and other requirements, the facility's significant environmental aspects, technological options, financial/ operational/business requirements, and views of interested parties.
These objectives and targets must be consistent with the environmental policy.


A program(s) for achieving set objectives and targets is required to be established and maintained.
The program must include designated responsible parties for achieving objectives and targets at each relevant function and level of the organization and the means and timeframe by which the objectives and targets are to be achieved. In addition, the program must be amended as needed to ensure that the environmental management program applies to new developments and new or modified activities, products, or services.


Roles, responsibilities, and authorities are required to be defined, documented, and communicated to facilitate effective environmental management. Sufficient resources must be provided to implement and control the environmental management system.

A specific management representative(s) must be appointed to ensure that EMS requirements are established, implemented, and maintain in accordance with the standard.
The management representative must have defined roles, responsibilities, and authority for reporting on EMS performance to top management


Appropriate training for all personnel whose work may create a significant impact on the environment must be identified. Procedures are required to be established and maintained to make employees aware of: The importance of conformance with the environmental policy and procedures and with EMS requirements, The potential environmental impacts of work activities Roles and responsibilities in achieving conformance with policy, procedures, EMS requirements

Procedures for internal communication between levels and functions of the company are required to be established and maintained. Procedures must also be developed for receiving, documenting and responding to relevant communication from external parties. Finally, processes for external communications must be considered and the decision recorded.


Information describing core elements of the management system and their interaction is required to be established and maintained.
The information must also provide direction to related documentation. ISO 14000 requires documentations much similar to ISO 9000 which makes integration of two systems easier.


Procedures for controlling all documents required by the standard are required to be established and maintained. These procedures must ensure the following: The documents can be located , The documents are periodically reviewed,and approved by authorized personnel, The current versions are available at locations where operations essential to the functioning of EMS are done. Obsolete documents are promptly removed Further, documentation must be legible,


Operations and activities associated with the significant environmental aspects are required to be identified. These activities must be planned,and an organization must: establish and maintain documented procedures to cover situations where their absence could lead to deviations from the environmental policy and the objectives and targets, stipulate criteria in the operational procedures, and establish and maintain procedures related to the environmental aspects and communicating those relevant procedures and requirements to suppliers and contractors


Procedures to identify potential for and respond to accidents and emergency situations, are required to be established and maintained. In addition, the emergency procedures must be reviewed and revised, when necessary, especially after an accident or emergency situation. Where practicable, it is required that these procedures are periodically tested through drills, exercises, etc.


Develop and maintain procedures to regularly monitor and measure performance against objectives and targets Maintain and document program for calibrating monitoring equipment Identify and investigate non-conformance and implement corrective and preventative action Establish and maintain program to conduct periodic internal audits The organization must also maintain a documented procedure for periodically evaluating compliance with relevant environmental laws and regulations



for defining responsibility and authority for handling and investigating nonconformance, taking action to mitigate any environmental impacts, and for corrective and preventive action completion, are required to be established and maintained. Environmental incidents includes emission, chemical spills

All environmental incidents require full evaluation of root cause, initial response, and identification and implementation of corrective and/or preventative action

4.5.3: RECORDS.
Procedures for identification, maintenance, and disposition of environmental records are required to be established and maintained. The records must be legible, identifiable and traceable to the activity involved.

The records must be stored/maintained so that they are readily retrievable and protected against damage, deterioration, or loss.
Retention times must be established and recorded. Records must be maintained, as appropriate, to demonstrate conformance to the standard.


A program and procedures for conducting periodic environmental system audits are required to be established and maintained. The audit program/procedures must: determine whether the EMS conforms to requirements of the standard and has been properly implemented and maintained

ensure that information on the audit results are provided to management


The audit program/procedures must: be based on the environmental importance of the activity concerned and results of previous audits

cover audit scope, frequency, methodologies, and responsibilities and requirements for conducting audits, and reporting results.


Review is to involve the top management in the EMS continuous improvement process. Conduct Annual (at least) Management Review of EMS to ensure: Its continuing suitability, adequacy and effectiveness Adequate information is collected to perform the management review Address the need for changes to policy, environmental aspects, objectives,elements of the environmental management system.

A continual cycle of planning, implementing, reviewing and improving the actions that an organization takes to meet its environmental obligations.

Environmental Management System

Serves as a tool to improve environmental performance Provides a systematic way of managing an organizations environmental affairs Is the aspect of the organizations overall management structure that addresses immediate and long-term impacts of its products, services and processes on the environment Gives order and consistency for organizations to address environmental concerns through the allocation of resources, assignment of responsibility and ongoing evaluation of practices, procedures and processes Focuses on continual improvement of the system

Environmental Management System

An EMS follows a Plan-Do-Check-Act Cycle, or PDCA. The diagram shows the process of first developing an environmental policy, planning the EMS, and then implementing it. The process also includes checking the system and acting on it. The model is continuous because an EMS is a process of continual improvement in which an organization is constantly reviewing and revising the system.

This is a model that can be used by a wide range of organizations from manufacturing facilities to service industries and government agencies

Environmental management system model

1. Environmental policy Initially, the organizations top management should have commitment and define the policy on EMS which is used for the direction of implementing and improving its EMS.

2. Planning In order to achieve environmental policy, at least, the organization should : Identify the environmental aspects of its activities and specify those which have significant impacts on the environment. Identify legal and other requirements to which the organization involved. Establish objectives and targets of its activities having impacts to environment. Establish environmental programs for achieving its objectives and targets.

3. Implementation In order to achieve environmental planning, at least, the organization should : Define roles, responsibilities and authorities for facilitating EMS effectively. Communicate to the staffs at each level for the importance of conformance to the environmental policy; provide appropriate training to personnel performing the tasks to gain their knowledge and competence. Establish and control documentation relating to EMS. Control operations and activities to meet the specified objectives and targets. Identify potential accidents and emergency situations for preventing and mitigating the environmental impacts that may be associated with them and periodically test such procedures where practicable.

4. Checking and corrective action

To ensure that the organization is performing in accordance with the stated EMS programmes, at least, the organization should: Monitor and measure its operations and activities against the organizations plans. Identify non-conformance and take action to mitigate any impact caused. Record the on-going activities of the EMS. Conduct periodic EMS audits. 5. Management review The organizations top management should review and continually improve its EMS, with the objective of improving its overall environmental performance.

Environmental management system model

Some unique and important characteristics of ISO 14001 are:

It is comprehensive: all members of the organization participate in environmental protection, the EMS considers all stakeholders, and there are processes to identify all environmental impacts.

It is proactive: it focuses on forward thinking and action instead of reacting to command and control policies.
It is a systems approach: it stresses improving environmental protection by using a single environmental management system across all functions of the organization.

Legal and other requirement

Compliance to laws and regulations Issuance of consent and permit conditions Organization specific codes and programmes that it voluntarily subscribes. Standards and guidelines in the regions where the organization undertakes business.


Policy and Defined organization and responsibilities Defined and documented standard practices Control of critical operations Document control Training Records system Internal audits

Corrective action system

Management review for continual improvement


ISO 9000
1.Encourage organizations to institute quality assurance management programs.

ISO 14000
1.Deals with the management of the environmental effects of an organization

2.The major system requirements are defined by customers

2.Customers as well as many additional stakeholders

3.Includes evaluation of suppliers 3.Include methods of evaluating and review of customer contracts. environmental impacts and systems 4.The goals of a quality system are generally quite clear 4.The situation for environmental systems is not so straightforward