Fundamentals of Quality Initiatives with Mark Johnen in cooperation with the National Highway Institute

1. Fundamentals ofQuality Initiativeswith Mark Johnenin cooperation with theNational Highway Institute We will begin promptly at 1:00 p.m. EDT.

2. Poll: E-learning is the best way to learn Yes No

3. Poll: In baseball, how many outs are there in an inning? 2 3 4 6 9

4. Live Meeting Practice Practice asking the instructor a question (Please make them one word answers!!!) Practice “raising” your hand for a question or a comment. (from the “map” at the bottom of the window) For sites with more than one participant, decide how you will respond to polls, questions, etc. For example: the number of years of experience with quality programs. After you have completed these actions, let me know that I can move on in the simplest manner you have identified in Live Meeting.

5. Fundamentals ofQuality Initiativeswith Mark Johnenin cooperation with theNational Highway Institute

6. Poll: In relation to the rest of your duties, how important is managing Quality? Unimportant Not particularly important Slightly important Moderately important Very important

7. Fundamentals of Quality Initiatives Objectives: Understand Key Concepts of ISO, Six Sigma, and Baldridge Quality Systems Identify resources including AASHTO to find more information on quality programs Describe types of organizations using the various different quality initiatives

8. Question: Discuss the importance of QualityDiscuss the importance of Quality

9. Question:

10. Introduction toISO Quality Systems9000 / 14000

11. Poll: Are you familiar with ISO? Yes No

12. The meaning of ISO The International Organization for Standardization (ISO) is a worldwide federation of national standards bodies from 130 countries.  ISO derived from Greek 'isos‘ Meaning 'equal‘ or 'standard‘ ISO administers over 11,000 standards covering 97 categories The ISO 9000 and ISO 14000 families are among ISO's most widely known standards ever. ISO 9000 and ISO 14000 standards are implemented by some 634,000 organizations in 152 countries. ISO 9000 has become an international reference for quality management requirements in business-to-business dealings, and ISO 14000 is well on the way to achieving as much, if not more, in enabling organizations to meet their environmental challenges. The ISO 9000 and ISO 14000 families are among ISO's most widely known standards ever. ISO 9000 and ISO 14000 standards are implemented by some 634,000 organizations in 152 countries. ISO 9000 has become an international reference for quality management requirements in business-to-business dealings, and ISO 14000 is well on the way to achieving as much, if not more, in enabling organizations to meet their environmental challenges.

13. ISO Fundamentals Say what you do Do what you say Prove it Documentation

14. ISO Certification Not delivered on behalf of ISO itself ISO Directory Lists accreditation & certification bodies No mechanism governing the mutual recognition of registration certificates guidelines prepared by the ISO Committee on conformity assessment Whereas ISO 9001:2000 and ISO 14001:2004 certificates are not delivered on behalf of ISO itself, the need has been felt for ISO to play a role in the dissemination of information on the national programmes in operation in various countries. This directory is intended to contribute to meeting that demand. This directory lists accreditation (where one exists), then certification bodies by country (in alphabetical order). However, readers should bear in mind that certification bodies operate across national boundaries regardless of the country where their headquarters are located, or of their accreditation status at home or abroad. There is no ISO mechanism governing the mutual recognition of registration certificates delivered by third-party bodies to companies whose QMS or EMS has been assessed. However, to promote convergence amongst national practices, guidelines prepared by the ISO Committee on conformity assessment (ISO/CASCO) have been published in the collection of ISO/IEC guides. Whereas ISO 9001:2000 and ISO 14001:2004 certificates are not delivered on behalf of ISO itself, the need has been felt for ISO to play a role in the dissemination of information on the national programmes in operation in various countries. This directory is intended to contribute to meeting that demand. This directory lists accreditation (where one exists), then certification bodies by country (in alphabetical order). However, readers should bear in mind that certification bodies operate across national boundaries regardless of the country where their headquarters are located, or of their accreditation status at home or abroad. There is no ISO mechanism governing the mutual recognition of registration certificates delivered by third-party bodies to companies whose QMS or EMS has been assessed. However, to promote convergence amongst national practices, guidelines prepared by the ISO Committee on conformity assessment (ISO/CASCO) have been published in the collection of ISO/IEC guides.

15. The ISO 9000 & 14000 family ISO 9000 family focus is on quality management, meaning how does an organization fulfill: The customer's quality requirements Applicable regulatory requirements Enhanced customer satisfaction Continual improvement of its performance ISO 14000 family is primarily concerned with environmental management, meaning how does an organization: minimize harmful effects on the environment caused by its activities achieve continual improvement of its environmental performance The vast majority of ISO standards are highly specific to a particular product, material, or process. However, the standards that have earned the ISO 9000 and ISO 14000 families a worldwide reputation are known as "generic management system standards". "Generic" means that the same standards can be applied: - to any organization, large or small, whatever its product- including whether its "product" is actually a service,- in any sector of activity, and - whether it is a business enterprise, a public administration, or a government department. "Generic" also signifies that no matter what the organization's scope of activity, if it wants to establish a quality management system or an environmental management system, then such a system has a number of essential features for which the relevant standards of the ISO 9000 or ISO 14000 families provide the requirements. "Management system" refers to the organization's structure for managing its processes - or activities - that transform inputs of resources into a product or service which meet the organization's objectives, such as satisfying the customer's quality requirements, complying to regulations, or meeting environmental objectives. The vast majority of ISO standards are highly specific to a particular product, material, or process. However, the standards that have earned the ISO 9000 and ISO 14000 families a worldwide reputation are known as "generic management system standards". "Generic" means that the same standards can be applied: - to any organization, large or small, whatever its product- including whether its "product" is actually a service,- in any sector of activity, and - whether it is a business enterprise, a public administration, or a government department. "Generic" also signifies that no matter what the organization's scope of activity, if it wants to establish a quality management system or an environmental management system, then such a system has a number of essential features for which the relevant standards of the ISO 9000 or ISO 14000 families provide the requirements. "Management system" refers to the organization's structure for managing its processes - or activities - that transform inputs of resources into a product or service which meet the organization's objectives, such as satisfying the customer's quality requirements, complying to regulations, or meeting environmental objectives.

16. What is the ISO 9000 family? The ISO 9000 family consists of: ISO 9000: 2000 Quality management systems - Fundamentals and vocabulary ISO 9001: 2000 Quality management system – Requirements ISO 9004: 2000 Quality management system - Guidelines for performance improvement Associated with the above are: ISO 10012 Quality assurance requirements for measuring equipment ISO 19011 Auditing quality and environmental management systems Associated with the above are: ISO 10012 Quality assurance requirements for measuring equipment ISO 19011 Auditing quality and environmental management systems

17. ISO 9001: 2000 This is the key standard of the family. Quality management system Requirements  The standard clauses or areas are: Quality management system Management responsibility Resource management Product realization Measurement analysis and improvement The Quality Assurance standard lays down the requirements that a quality system should meet, but does not dictate how they should be achieved. 2000 year edition of the standard covers all three of the levels hitherto met by ISO 9001, ISO9002 and ISO 9003. The Quality Assurance standard lays down the requirements that a quality system should meet, but does not dictate how they should be achieved. 2000 year edition of the standard covers all three of the levels hitherto met by ISO 9001, ISO9002 and ISO 9003.

18. ISO 9001: 2000 Five key statements. The organization shall: Determine the needs and expectations of customers and other interested parties Establish policies, objectives and a work environment necessary to motivate the organization to satisfy these needs Design, resource and manage a system of interconnected processes necessary to implement the policy and attain the objectives Measure and analyze the adequacy, efficiency and effectiveness of each process in fulfilling its purpose and objectives Pursue the continual improvement of the system from an objective evaluation of its performance. Over 250 individual requirements in ISO 9001 2000 year edition of the standard covers all three of the levels hitherto met by ISO 9001, ISO9002 and ISO 9003. The requirements are applicable to any kind of organization: profit, or non-profit, manufacturing, hardware or software, service, commercial or community (government) Over 250 individual requirements in ISO 9001 2000 year edition of the standard covers all three of the levels hitherto met by ISO 9001, ISO9002 and ISO 9003. The requirements are applicable to any kind of organization: profit, or non-profit, manufacturing, hardware or software, service, commercial or community (government)

19. Poll: What does ISO 9000: 2000 contain? Quality Management systems Fundamentals and vocabulary System Requirements Guidelines for performance improvement

20. ISO 9000: 2000  ISO 9000 has two sections: Fundamentals of quality management systems Presents general approach In plain language A 'systems' and 'process' approach Illustrates why ISO requirements are necessary Contains the quality management principles The vocabulary of quality management systems defines terms used in 9000 family standards To facilitate translation Retains common roots ISO 9000 has two sections: The fundamentals of quality management systems present a good general approach to the subject and provide, in plain language, a description of the 'system' approach, the 'process' approach and many of the features dealt with in the other standards, illustrating why the requirements are necessary. It also contains the quality management principles, which were derived from earlier editions and used as a basis for developing the requirements and guidance provided in the current family of standards. An appreciation of these principles is vital to the interpretation and implementation of the requirements and guidelines contained in ISO 9001 and ISO 9004. The vocabulary defines the terms used in the 9000 family of standards in such a manner that they can be used in any language but retain common roots. There have been some changes in the way some terms are defined, notably: Quality: degree to which a set of inherent characteristics fulfils requirements.Requirement: need or expectation that is stated, generally implied or obligatory.Customer satisfaction: customers' perception of the degree to which the customer's requirements have been fulfilled. ISO 9000 has two sections: The fundamentals of quality management systems present a good general approach to the subject and provide, in plain language, a description of the 'system' approach, the 'process' approach and many of the features dealt with in the other standards, illustrating why the requirements are necessary. It also contains the quality management principles, which were derived from earlier editions and used as a basis for developing the requirements and guidance provided in the current family of standards. An appreciation of these principles is vital to the interpretation and implementation of the requirements and guidelines contained in ISO 9001 and ISO 9004. The vocabulary defines the terms used in the 9000 family of standards in such a manner that they can be used in any language but retain common roots. There have been some changes in the way some terms are defined, notably: Quality: degree to which a set of inherent characteristics fulfils requirements.Requirement: need or expectation that is stated, generally implied or obligatory.Customer satisfaction: customers' perception of the degree to which the customer's requirements have been fulfilled.

21. What the 9000 family is NOT NOT a series of product standards NOT a quality management system Does NOT describe a quality management system What the 9000 family is not The ISO 9000 family is not a series of product standards - it contains no product requirements. The family is not a quality management system and does not describe a quality management system - it is a series of generic standards for quality management systems. The standards in the family are not a guarantee of product or service quality. Customer focused leadership produces satisfied customers not standards An ISO 9001 audit will demonstrate that an organization has the minimum requirements for a quality management system that give assurance of its capability to meet specified and implied requirements that will satisfy the customer. Implementation of the 1994 series resulted in many people claiming that the standards did not prevent organizations producing substandard product. The 2000 edition clearly requires organizations to satisfy their customers and undertake continual improvement of their quality management systems therefore compliance with ISO 9001: 2000 should result in significant benefits to organizations and their customers.What the 9000 family is not The ISO 9000 family is not a series of product standards - it contains no product requirements. The family is not a quality management system and does not describe a quality management system - it is a series of generic standards for quality management systems. The standards in the family are not a guarantee of product or service quality. Customer focused leadership produces satisfied customers not standards An ISO 9001 audit will demonstrate that an organization has the minimum requirements for a quality management system that give assurance of its capability to meet specified and implied requirements that will satisfy the customer. Implementation of the 1994 series resulted in many people claiming that the standards did not prevent organizations producing substandard product. The 2000 edition clearly requires organizations to satisfy their customers and undertake continual improvement of their quality management systems therefore compliance with ISO 9001: 2000 should result in significant benefits to organizations and their customers.

22. Question: Certified Steel? Laboratories? HySteel Technology and R&D power. It always pays attention to develop new products. In order to satisfy the recent market needs, it invented new oil drill pipe and conduit that were specially used for oil field drilling. Its products have successfully passed the international quality certification, such as ISO9002, API, TUV etc. With this it has built up a strict quality guarantee system. ¡ñSustainable development management and good environment protection measures. The subject pays much attention to its sustainable development and how to protect the environment. Recently it has passed the certification of environment management system ISO14000, and got the green pass-card. At present, the subject is trying to achieve the three goals: first is to keep the environment amicable, producing cleanly etc which is called ¡°Green Works¡±; the second is pushing management information system which is regarded as ¡°Digit Works¡±; the last one is to improve the quality of staff, to strengthen the core competence, to create a new-style corporate culture named ¡°Century Works¡±. Quad-Lock Components ISO 9001: 2000 Certified For a company to survive, it has to distinguish itself from the competition. Many companies simply create flashy packaging or inventive advertising to accomplish this differentiation; few companies invest the time and resources necessary to establish a benchmark setting for their operation. Effective May 2002, both Quad-Lock panels and ties are being manufactured by ISO certified companies. Quad-Lock is the only Insulating Concrete Form (ICF) to have its main components manufactured by ISO certified companies Rocky Mountain Laboratories was founded in 1983 as an independent surface chemistry and microanalysis laboratory to serve the needs of industrial, academic, and governmental clients. Our objective — to provide real-world solutions for industries with materials and process development needs — is as fundamental to our organization today as when we began. Over the years we have strived to adapt our services to the specific needs of these clients. The Quality Management System at Rocky Mountain Laboratories, Inc. has been certified to the ISO 9001:2000 System by QMI, North America's largest registrar. Certified Steel? Laboratories? HySteel Technology and R&D power. It always pays attention to develop new products. In order to satisfy the recent market needs, it invented new oil drill pipe and conduit that were specially used for oil field drilling. Its products have successfully passed the international quality certification, such as ISO9002, API, TUV etc. With this it has built up a strict quality guarantee system. ¡ñSustainable development management and good environment protection measures. The subject pays much attention to its sustainable development and how to protect the environment. Recently it has passed the certification of environment management system ISO14000, and got the green pass-card. At present, the subject is trying to achieve the three goals: first is to keep the environment amicable, producing cleanly etc which is called ¡°Green Works¡±; the second is pushing management information system which is regarded as ¡°Digit Works¡±; the last one is to improve the quality of staff, to strengthen the core competence, to create a new-style corporate culture named ¡°Century Works¡±. Quad-Lock Components ISO 9001: 2000 Certified For a company to survive, it has to distinguish itself from the competition. Many companies simply create flashy packaging or inventive advertising to accomplish this differentiation; few companies invest the time and resources necessary to establish a benchmark setting for their operation. Effective May 2002, both Quad-Lock panels and ties are being manufactured by ISO certified companies. Quad-Lock is the only Insulating Concrete Form (ICF) to have its main components manufactured by ISO certified companies Rocky Mountain Laboratories was founded in 1983 as an independent surface chemistry and microanalysis laboratory to serve the needs of industrial, academic, and governmental clients. Our objective — to provide real-world solutions for industries with materials and process development needs — is as fundamental to our organization today as when we began. Over the years we have strived to adapt our services to the specific needs of these clients. The Quality Management System at Rocky Mountain Laboratories, Inc. has been certified to the ISO 9001:2000 System by QMI, North America's largest registrar.

23. What is the ISO 14000 family? The ISO 14000 family consists of: ISO 14001: 2004 - Environmental management systems -- Requirements with guidance for use ISO 14004: 2004 - Environmental management systems -- General guidelines on principles, systems and support techniques ISO 14015: 2001 - Environmental management -- Environmental assessment of sites and organizations (EASO) ISO 14040: (series) - Life cycle assessment

24. What is ISO 14000? Management tools for organizations to: Control their environmental aspects Improve their environmental performance The whole ISO 14000 family. The ISO 14000 family consists of standards relating to environmental management systems (EMS) and others which are tools to help the organization realize its environmental policy, objectives and targets, and classify them by application: - at the organizational level (implementing EMS, conducting environmental auditing and related investigations, and evaluating environmental performance); - to products and services (using environmental declarations and claims, conducting life cycle assessment), addressing environmental aspects in product standards, and understanding terms and definitions).The whole ISO 14000 family. The ISO 14000 family consists of standards relating to environmental management systems (EMS) and others which are tools to help the organization realize its environmental policy, objectives and targets, and classify them by application: - at the organizational level (implementing EMS, conducting environmental auditing and related investigations, and evaluating environmental performance);

25. What is ISO 14001? An international standard for environmental management systems (EMS) Can be applied to almost any industry

26. What is an ISO 14001:2004-based EMS? A management tool enabling an organization of any size or type: To control the environmental impact of its activities, products or services To continually improve its environmental performance Does not specify levels of environmental performance ISO 14001:2004 provides a framework for an overall, strategic approach to an organization's environmental policy, plans and actions What is an ISO 14001:2004-based EMS? An environmental management system meeting the requirements of ISO 14001:2004 is a management tool enabling an organization of any size or type to control the environmental impact of its activities, products or services, and to improve its environmental performance continually. An environmental management system makes possible a structured approach to setting environmental objectives and targets, to achieving these and to demonstrating that they have been achieved. How does it work? ISO 14001:2004 does not specify levels of environmental performance - so how, you ask yourself, can it improve things? Well, if it specified levels of environmental performance they would obviously have to be specific to your business activity - which would call for a specific EMS standard for each businesses. That's not the intention. ISO has many other standards dealing with specific environmental issues. The intention of ISO 14001:2004 is to provide a framework for an overall, strategic approach to your organization's environmental policy, plans and actions. ISO 14001:2004 gives the generic requirements for an environmental management system. The underlying philosophy is that whatever your business, the requirements of an effective EMS are the same. This has the effect of establishing a common "language" or framework for communicating about environmental management issues between organizations and their customers, regulators, the public and other other stakeholders. Another point is that because ISO 14001:2004 does not lay down levels of environmental performance, the standard can to be implemented by a wide variety of organizations, whatever their current level of environmental maturity. However, a commitment to compliance with applicable environmental legislation and regulations is required, along with a commitment to continuous improvement - for which the environmental management system provides the framework. What's in the EMS standards? ISO 14004:2004 provides guidelines on the elements of an environmental management system and its implementation, and discusses principal issues involved. ISO 14001:2004 specifies the requirements for such an environmental management system. Fulfilling these requirements demands objective evidence which can be audited to demonstrate that the environmental management system is operating effectively in conformance with the standard. What if my business implemented an ISO 14001:2004 EMS? ISO 14001:2004 is a tool that can be used for internal purposes: to provide assurance to management that you are in control of your processes and activities having an impact on the environment. Employees, in turn, may be happier if assured that they are working for an environmentally responsible organization. ISO 14001:2004 can also be used for external purposes: to provide assurance to stakeholders - such as customers, the community and regulatory agencies. Conformity to ISO 14001:2004 can be used to support what your organization claims about its own environmental policies, plans and actions. It is suitable for both suppliers' declarations of conformity, assessment of conformity by an external stakeholder - such as a business client - and for certification of conformity by an independent certification body.What is an ISO 14001:2004-based EMS? An environmental management system meeting the requirements of ISO 14001:2004 is a management tool enabling an organization of any size or type to control the environmental impact of its activities, products or services, and to improve its environmental performance continually. An environmental management system makes possible a structured approach to setting environmental objectives and targets, to achieving these and to demonstrating that they have been achieved. How does it work? ISO 14001:2004 does not specify levels of environmental performance - so how, you ask yourself, can it improve things? Well, if it specified levels of environmental performance they would obviously have to be specific to your business activity - which would call for a specific EMS standard for each businesses. That's not the intention. ISO has many other standards dealing with specific environmental issues. The intention of ISO 14001:2004 is to provide a framework for an overall, strategic approach to your organization's environmental policy, plans and actions. ISO 14001:2004 gives the generic requirements for an environmental management system. The underlying philosophy is that whatever your business, the requirements of an effective EMS are the same. This has the effect of establishing a common "language" or framework for communicating about environmental management issues between organizations and their customers, regulators, the public and other other stakeholders. Another point is that because ISO 14001:2004 does not lay down levels of environmental performance, the standard can to be implemented by a wide variety of organizations, whatever their current level of environmental maturity. However, a commitment to compliance with applicable environmental legislation and regulations is required, along with a commitment to continuous improvement - for which the environmental management system provides the framework. What's in the EMS standards? ISO 14004:2004 provides guidelines on the elements of an environmental management system and its implementation, and discusses principal issues involved. ISO 14001:2004 specifies the requirements for such an environmental management system. Fulfilling these requirements demands objective evidence which can be audited to demonstrate that the environmental management system is operating effectively in conformance with the standard. What if my business implemented an ISO 14001:2004 EMS? ISO 14001:2004 is a tool that can be used for internal purposes: to provide assurance to management that you are in control of your processes and activities having an impact on the environment. Employees, in turn, may be happier if assured that they are working for an environmentally responsible organization. ISO 14001:2004 can also be used for external purposes: to provide assurance to stakeholders - such as customers, the community and regulatory agencies. Conformity to ISO 14001:2004 can be used to support what your organization claims about its own environmental policies, plans and actions. It is suitable for both suppliers' declarations of conformity, assessment of conformity by an external stakeholder - such as a business client - and for certification of conformity by an independent certification body.

27. Benefits of ISO 14001 Assigns accountability and provides environmental due diligence for directors, management and workers Reduces environmental impact Improves compliance record Improves operating efficiency Reduces raw material/resource use Reduces waste generation and disposal costs Manages utilization of recoverable resources

28. Conceptual Framework ISO 14001 EMS Environmental Policy The policy is the driver for implementation of the EMS The policy demonstrates the performance requirements of the company’s management system At a minimum, the policy must commit to regulatory compliance, continual improvement and prevention of pollution Environmental Planning Activities - eg: ditching Significant aspects - eg: water control Objectives - eg: minimize impacts on water quality Targets - eg: commitment to meet objective Environmental programs - eg: action plan Implementing Environmental Operating Procedures For staff Assigns roles and responsibilities for activities Highlights key functions/decisions to manage environmental risks Consistent with ISO framework for QA monitoring and external audits Environmental Field Procedures For Licensees/Contractors Assigns roles and responsibilities Highlights key considerations around activities Ensures workers have all knowledge necessary for success Does not direct work (how to's) Does not paraphrase Code Documentation and record keeping Training and awareness Communication Emergency preparedness and response Checking and Corrective Action Monitoring and measurement Non-conformance and corrective and preventive action Records EMS audits “Top management” periodically reviews the EMS, focusing on improving its overall effectiveness. Review audit results with Mid-Managers Ensure that the EMS remains relevant Focus of system is on the key areas (significant aspects) Objectives and targets are appropriate Procedures are appropriate Continual Improvement Does not replace code Set own performance bar Some non-conformance expected HOW non-conformance addressed is as important as non-conformance itself Opportunities to remedy non-conformancesEnvironmental Policy The policy is the driver for implementation of the EMS The policy demonstrates the performance requirements of the company’s management system At a minimum, the policy must commit to regulatory compliance, continual improvement and prevention of pollution Environmental Planning Activities - eg: ditching Significant aspects - eg: water control Objectives - eg: minimize impacts on water quality Targets - eg: commitment to meet objective Environmental programs - eg: action plan Implementing Environmental Operating Procedures For staff Assigns roles and responsibilities for activities Highlights key functions/decisions to manage environmental risks Consistent with ISO framework for QA monitoring and external audits Environmental Field Procedures For Licensees/Contractors Assigns roles and responsibilities Highlights key considerations around activities Ensures workers have all knowledge necessary for success Does not direct work (how to's) Does not paraphrase Code Documentation and record keeping Training and awareness Communication Emergency preparedness and response Checking and Corrective Action Monitoring and measurement Non-conformance and corrective and preventive action Records EMS audits “Top management” periodically reviews the EMS, focusing on improving its overall effectiveness. Review audit results with Mid-Managers Ensure that the EMS remains relevant Focus of system is on the key areas (significant aspects) Objectives and targets are appropriate Procedures are appropriate Continual Improvement Does not replace code Set own performance bar Some non-conformance expected HOW non-conformance addressed is as important as non-conformance itself Opportunities to remedy non-conformances

29. Summary: EMS - SOPs Both cover planning, construction, maintenance of roads/drainage Both use same checklists EMS procedures follow ISO framework SOPs also cover internal admin tasks EMS aimed at licensees and contractors SOPs not intended for external use

30. Question: BOC is committed to the conscientious stewardship of its sites, products and services. Management of environmental issues that are relevant to the Group’s businesses are overseen by the safety, health, environment and quality (SHEQ) function, operating at a global and local business unit level. Group environmental strategies help to improve business performance in sites across the world. Many BOC business units have programs to achieve ISO 14001 environmental certification. 30 key industrial sites around the world are ISO 14001 certified whilst all others operate under the Group’s integrated management systems and standards (IMSS) which has been certified as complying with and supporting ISO 14001. Pirelli Communications Cables and Systems North America PCCSNA is ISO 9000:2000, ISO 14001 and TL 9000 registered BOC is committed to the conscientious stewardship of its sites, products and services. Management of environmental issues that are relevant to the Group’s businesses are overseen by the safety, health, environment and quality (SHEQ) function, operating at a global and local business unit level. Group environmental strategies help to improve business performance in sites across the world. Many BOC business units have programs to achieve ISO 14001 environmental certification. 30 key industrial sites around the world are ISO 14001 certified whilst all others operate under the Group’s integrated management systems and standards (IMSS) which has been certified as complying with and supporting ISO 14001. Pirelli Communications Cables and Systems North America PCCSNA is ISO 9000:2000, ISO 14001 and TL 9000 registered

31. NEPA & ISO 14001 National Environmental Policy Act Most principles applied during design phase ISO 14001 EMS approach A flexible, systematic way to factor environmental protection and enhancement into all phases of transportation decision-making and program delivery ISO supports NEPA compliance, reducing potential NEPA impact while improving performance One of the major challenges of implementing both Sections 101 and 102 of NEPA has been how to apply the NEPA principles and process in transportation planning, construction, maintenance, and operations. Since NEPA and/or its principles have been applied mostly during the design phase, it has been difficult to address environmental considerations before and after. As you know, FHWA is always promoting mechanisms to meet the environmental commitments made during the design phase in construction, maintenance, and operations.The ISO 14001 Environmental Management System approach offers a flexible, voluntary, and systematic way to factor environmental protection and enhancement into all phases of transportation decision-making and program delivery. The Plan>Do>Check>Act model is basically just a sound management approach which can be applied in any activity. You can choose to comply or go beyond compliance, depending on the conditions.ISO 14001 and NEPA skillfully used in concert offer the opportunity to better manage transportation program delivery to achieve excellent environmental and transportation performance. Improving governance, quality and efficiency of water services These ISO standards will help: · Facilitate the dialogue among stakeholders, including users, local or regional or national water public authorities, public or private operators of the water utilities, non governmental organisations, research organisations, laboratories; · Develop a mutual understanding of functions and tasks; · Provide methods and tools to define, at the relevant local level, objectives and specifications, and assess performance; · Monitor performance for monitoring and managing the water utilities and possibly benchmarking them.One of the major challenges of implementing both Sections 101 and 102 of NEPA has been how to apply the NEPA principles and process in transportation planning, construction, maintenance, and operations. Since NEPA and/or its principles have been applied mostly during the design phase, it has been difficult to address environmental considerations before and after. As you know, FHWA is always promoting mechanisms to meet the environmental commitments made during the design phase in construction, maintenance, and operations.

32. When should ISO be used? To gain competitive advantage To confirm we are taking the right approach When should ISO 9001 be used? To gain competitive advantage Like all ISO standards, their use is voluntary, unless a specific business sector makes them a market requirement or a government issues regulations making their use obligatory. Not having ISO 9001 certification does not mean that an organization will not be able to do business. However, if an organization does not have ISO 9001 certification it may give its customer a reason to choose a competitor because of the assurance of quality that that competitor can provide. To confirm we are taking the right approach The original ISO 9001 was designed to be used when customers placed orders on suppliers for products and services through a contract. Therefore, the requirements of ISO 9001 used to reflect an order-driven organization. However, the standards are being used increasingly for situations outside this field, e.g. law practices, schools, government departments and many service industries in which the customer does not seek a demonstration of capability but needs to ensure that the organization has a systematic approach to the fulfillment of requirements that will create and retain satisfied customers. ISO 9001 is not a panacea for turning around a troubled company. ISO 9001 is a model - a series of requirements which experience has shown would prevent failure. It is not a prescription of everything that an organisation must do and should be used as a framework to confirm that all the right things are being done to ensure customer satisfaction. There has to be good management, professionalism and genuine desire to satisfy customers for it to work. How should the ISO 9000 family be used? Put simply, a company should use: ISO 9000 to comprehend the principles of quality management, the function of quality management systems and the correct use of termsISO 9001 to assess a quality management system or specify generic requirements for a quality management systemISO 9004 to improve the quality management systemISO 10012 where measuring equipment is neededISO 19011 to manage an internal and external audit programme When should ISO 9001 be used? To gain competitive advantage Like all ISO standards, their use is voluntary, unless a specific business sector makes them a market requirement or a government issues regulations making their use obligatory. Not having ISO 9001 certification does not mean that an organization will not be able to do business. However, if an organization does not have ISO 9001 certification it may give its customer a reason to choose a competitor because of the assurance of quality that that competitor can provide. To confirm we are taking the right approach The original ISO 9001 was designed to be used when customers placed orders on suppliers for products and services through a contract. Therefore, the requirements of ISO 9001 used to reflect an order-driven organization. However, the standards are being used increasingly for situations outside this field, e.g. law practices, schools, government departments and many service industries in which the customer does not seek a demonstration of capability but needs to ensure that the organization has a systematic approach to the fulfillment of requirements that will create and retain satisfied customers. ISO 9001 is not a panacea for turning around a troubled company. ISO 9001 is a model - a series of requirements which experience has shown would prevent failure. It is not a prescription of everything that an organisation must do and should be used as a framework to confirm that all the right things are being done to ensure customer satisfaction. There has to be good management, professionalism and genuine desire to satisfy customers for it to work. How should the ISO 9000 family be used? Put simply, a company should use: ISO 9000 to comprehend the principles of quality management, the function of quality management systems and the correct use of termsISO 9001 to assess a quality management system or specify generic requirements for a quality management systemISO 9004 to improve the quality management systemISO 10012 where measuring equipment is neededISO 19011 to manage an internal and external audit programme

34. Introduction to the Six Sigma Quality System

35. Poll: Are you familiar with Six Sigma? Yes No

36. What is Six Sigma (Six s)? Six Sigma (6s) Management Philosophy Continual Improvement Integrates quality & daily work Processes / measures viewed from “customer” point of view Six Sigma (6s) Process Capability A statistical measure of processes Measures ability to meet customer “CTQs”(CTQ: Critical-to-Quality) Six Sigma (6s) Measurement Measurement to six standard deviations  Let's start with the term "six sigma." Motorola coined the term in 1986. As those who have worked in quality for a while know, this term has statistical roots in the technique known as process capability analysis. Prior to the Japanese industrial invasion of U.S. markets, quality practitioners were happy with three sigma quality, which translates to about three errors or defects per 1,000 items for processes in a state of statistical control. Motorola discovered that its processes weren't in statistical control--estimates based on field failure data indicated that Motorola's processes apparently drifted by an average of ±1.5 standard deviations. In a conversation with ex-Motorola trainer Mikel Harry, I learned that he considers the Cpk index--which measures short-term process variability under statistical control--worthless. Harry prefers the Ppk index, which measures actual performance rather than process capability. (Note that many experts, including me, disagree strongly with Harry on this issue.) In any case, before computing expected process failures, Motorola adds this 1.5 standard deviation. Thus, when we hear that a six sigma process will produce 3.4 parts-per-million (PPM) failures, we find that this PPM corresponds to the area in the tail beyond 4.5 standard deviations above the mean for a normal distribution. Six Sigma is a quality management program to achieve "six sigma" levels of quality. It was pioneered by Motorola in the mid-1980s by Bob Galvin, who succeeded his father and the founder of Motorola as head of the company, Paul Galvin, and by Motorola engineer Bill Smith. It has since spread to many other manufacturing companies, including GE, Honeywell and Microsoft. However, it can be applied wherever the control of variation is desired. In recent years, it has begun to branch out into the service industry, and in 2000, Fort Wayne, Indiana became the first city to implement the program in a city government. Some, claiming that Six Sigma's impact has not yet been fully realized, advocate an open source approach so that the principles of Six Sigma might be more widely adopted. In statistics, sigma refers to the standard deviation of a set of data; "six sigma", therefore, refers to six standard deviations. Mathematically, assuming that defects occur according to a standard normal distribution, this corresponds to approximately two quality failures per billion parts manufactured. In practical application of the Six Sigma methodology, however, the rate is taken to be 3.4 per million; see below. Initially, many believed that such high process reliability was impossible, and three sigmas (67,000 defects per million opportunities, or DPMO) was considered acceptable. However, market leaders have measurably reached six sigmas in numerous processes. Design for six sigma (DFSS) is a process used in the development of new products or services to ensure that they can be manufactured, or can operate, at Six Sigma levels. The core of the process is understanding the customer requirements. This is achieved by using a number of tools such as the "house of quality". Other statistical tools, similar to those used in traditional six sigma processes, are used to ensure that the product is designed in a way that satisfies the customer's requirements with few (i.e. six sigma) defects  Let's start with the term "six sigma." Motorola coined the term in 1986. As those who have worked in quality for a while know, this term has statistical roots in the technique known as process capability analysis. Prior to the Japanese industrial invasion of U.S. markets, quality practitioners were happy with three sigma quality, which translates to about three errors or defects per 1,000 items for processes in a state of statistical control. Motorola discovered that its processes weren't in statistical control--estimates based on field failure data indicated that Motorola's processes apparently drifted by an average of ±1.5 standard deviations. In a conversation with ex-Motorola trainer Mikel Harry, I learned that he considers the Cpk index--which measures short-term process variability under statistical control--worthless. Harry prefers the Ppk index, which measures actual performance rather than process capability. (Note that many experts, including me, disagree strongly with Harry on this issue.) In any case, before computing expected process failures, Motorola adds this 1.5 standard deviation. Thus, when we hear that a six sigma process will produce 3.4 parts-per-million (PPM) failures, we find that this PPM corresponds to the area in the tail beyond 4.5 standard deviations above the mean for a normal distribution. Six Sigma is a quality management program to achieve "six sigma" levels of quality. It was pioneered by Motorola in the mid-1980s by Bob Galvin, who succeeded his father and the founder of Motorola as head of the company, Paul Galvin, and by Motorola engineer Bill Smith. It has since spread to many other manufacturing companies, including GE, Honeywell and Microsoft. However, it can be applied wherever the control of variation is desired. In recent years, it has begun to branch out into the service industry, and in 2000, Fort Wayne, Indiana became the first city to implement the program in a city government. Some, claiming that Six Sigma's impact has not yet been fully realized, advocate an open source approach so that the principles of Six Sigma might be more widely adopted. In statistics, sigma refers to the standard deviation of a set of data; "six sigma", therefore, refers to six standard deviations. Mathematically, assuming that defects occur according to a standard normal distribution, this corresponds to approximately two quality failures per billion parts manufactured. In practical application of the Six Sigma methodology, however, the rate is taken to be 3.4 per million; see below. Initially, many believed that such high process reliability was impossible, and three sigmas (67,000 defects per million opportunities, or DPMO) was considered acceptable. However, market leaders have measurably reached six sigmas in numerous processes. Design for six sigma (DFSS) is a process used in the development of new products or services to ensure that they can be manufactured, or can operate, at Six Sigma levels. The core of the process is understanding the customer requirements. This is achieved by using a number of tools such as the "house of quality". Other statistical tools, similar to those used in traditional six sigma processes, are used to ensure that the product is designed in a way that satisfies the customer's requirements with few (i.e. six sigma) defects

37. Standard Deviation Diagram Dark blue is less than one standard deviation from the mean. For the normal distribution, this accounts for 68% of the set. For the normal distribution, two standard deviations from the mean (blue and brown) account for 95%. For the normal distribution, three standard deviations (blue, brown and green) account for 99.7%. In practice, one often assumes that the data are from an approximately normally distributed population. If that assumption is justified, then about 68% of the values are at within 1 standard deviation away from the mean, about 95% of the values are within two standard deviations and about 99.7% lie within 3 standard deviations. This is known as the "68-95-99.7 rule". Six standard deviations account for 99.99%. Many corporations have adopted this measure (known as Six Sigma) for Quality Control and try to achieve a defect rate of 3.4 per million.Dark blue is less than one standard deviation from the mean. For the normal distribution, this accounts for 68% of the set. For the normal distribution, two standard deviations from the mean (blue and brown) account for 95%. For the normal distribution, three standard deviations (blue, brown and green) account for 99.7%. In practice, one often assumes that the data are from an approximately normally distributed population. If that assumption is justified, then about 68% of the values are at within 1 standard deviation away from the mean, about 95% of the values are within two standard deviations and about 99.7% lie within 3 standard deviations. This is known as the "68-95-99.7 rule". Six standard deviations account for 99.99%. Many corporations have adopted this measure (known as Six Sigma) for Quality Control and try to achieve a defect rate of 3.4 per million.

38. Isn’t 99.9% defect-free good enough? 1 hour of unsafe drinking water every month 2 long or short landings at every American airport each day 400 letters per hour which never arrive at their destination 500 incorrect surgical operations each week 4,000 incorrect drug prescriptions per year Half of all concrete tests fail at a 500 ton test rate. Let’s get real here. Is it truly necessary to go for zero defects? Here are some examples of what life would be like if 99.9% were "good enough:" Here are some examples of what life is like at less than Six Sigma Here are some examples of what life would be like at Six Sigma 13 WRONG DRUG PRESCRIPTIONS PER YEAR 10 NEWBORNS ACCIDENTALLY FALLING FROM THE HANDS OF NURSES OR DOCTORS EACH YEAR 1 LOST ARTICLE OF MAIL PER HOUR SUDDENLY, THE QUEST FORSIX SIGMA ISN'T SO BAD Let’s get real here. Is it truly necessary to go for zero defects? Here are some examples of what life would be like if 99.9% were "good enough:" Here are some examples of what life is like at less than Six Sigma Here are some examples of what life would be like at Six Sigma 13 WRONG DRUG PRESCRIPTIONS PER YEAR 10 NEWBORNS ACCIDENTALLY FALLING FROM THE HANDS OF NURSES OR DOCTORS EACH YEAR 1 LOST ARTICLE OF MAIL PER HOUR SUDDENLY, THE QUEST FORSIX SIGMA ISN'T SO BAD

39. DMAIC Basic methodology to improve existing processes Define out of tolerance range. Measure key internal processes critical to quality. Analyze why defects occur. Improve the process to stay within tolerance. Control the process to stay within goals.

40. DMADV Basic methodology of introducing new processes. Define the process and where it would fail to meet customer needs! Measure and determine if process meets customer needs. Analyze the options to meet customer needs. Design in changes to the process to meet customers needs. Verify the changes have met customer needs.

41. What is a Six s Black Belt? Master black belt--Masters of technical and organizational proficiency Train, coach & assist black belts Black belt--Technical leaders actively involved in organizational change and development process Support green belts Green belt --team leaders capable of forming and facilitating six sigma teams and managing six sigma projects from concept to completion. Motorola also adopted the terms "black belt" and "green belt." Here is a summary of these various responsibilities:   Master black belt--This is the highest level of technical and organizational proficiency. Because master black belts train black belts, they must know everything the black belts know, as well as understand the mathematical theory on which the statistical methods are based. Masters must be able to assist black belts in applying the methods correctly in unusual situations. Whenever possible, statistical training should be conducted only by master black belts. If it's necessary for black belts and green belts to provide training, they should only do so under the guidance of master black belts. Because of the nature of the master's duties, communications and teaching skills should be judged as important as technical competence in selecting candidates.   Black belt--Candidates for technical leader (black belt) status are technically oriented individuals held in high regard by their peers. They should be actively involved in the organizational change and development process. Candidates may come from a wide range of disciplines and need not be formally trained statisticians or engineers. However, because they are expected to master a wide variety of technical tools in a relatively short period of time, technical leader candidates will probably possess a background in college-level mathematics, the basic tool of quantitative analysis. College-level course work in statistical methods should be a prerequisite.  Six sigma technical leaders work to extract actionable knowledge from an organization's information warehouse. Successful candidates should understand one or more operating systems, spreadsheets, database managers, presentation programs and word processors. As part of their training they will be required to become proficient in the use of one or more advanced statistical analysis software packages.   Green belt --Green belts are six sigma team leaders capable of forming and facilitating six sigma teams and managing six sigma projects from concept to completion. Typically, green-belt training consists of five days of classroom training and is conducted in conjunction with six sigma team projects. Training covers facilitation techniques and meeting management, project management, quality management tools, quality control tools, problem solving, and exploratory data analysis. Usually, six sigma black belts help green belts choose their projects prior to the training, attend training with their green belts and assist them with their projects after the training.    Although the martial arts terms described above are common, they are by no means universal. Companies and consulting firms often create their own titles to describe the work done by these technical leaders.  Unfortunately, there is no standard describing the body of knowledge people with these titles must master, let alone licensing or certifying credentials. Today, obtaining recognition as a six sigma expert involves little more than plunking down six-digit sums of money to attend six sigma training offered by consulting firms. Motorola also adopted the terms "black belt" and "green belt." Here is a summary of these various responsibilities:   Master black belt--This is the highest level of technical and organizational proficiency. Because master black belts train black belts, they must know everything the black belts know, as well as understand the mathematical theory on which the statistical methods are based. Masters must be able to assist black belts in applying the methods correctly in unusual situations. Whenever possible, statistical training should be conducted only by master black belts. If it's necessary for black belts and green belts to provide training, they should only do so under the guidance of master black belts. Because of the nature of the master's duties, communications and teaching skills should be judged as important as technical competence in selecting candidates.   Black belt--Candidates for technical leader (black belt) status are technically oriented individuals held in high regard by their peers. They should be actively involved in the organizational change and development process. Candidates may come from a wide range of disciplines and need not be formally trained statisticians or engineers. However, because they are expected to master a wide variety of technical tools in a relatively short period of time, technical leader candidates will probably possess a background in college-level mathematics, the basic tool of quantitative analysis. College-level course work in statistical methods should be a prerequisite.  Six sigma technical leaders work to extract actionable knowledge from an organization's information warehouse. Successful candidates should understand one or more operating systems, spreadsheets, database managers, presentation programs and word processors. As part of their training they will be required to become proficient in the use of one or more advanced statistical analysis software packages.   Green belt --Green belts are six sigma team leaders capable of forming and facilitating six sigma teams and managing six sigma projects from concept to completion. Typically, green-belt training consists of five days of classroom training and is conducted in conjunction with six sigma team projects. Training covers facilitation techniques and meeting management, project management, quality management tools, quality control tools, problem solving, and exploratory data analysis. Usually, six sigma black belts help green belts choose their projects prior to the training, attend training with their green belts and assist them with their projects after the training.    Although the martial arts terms described above are common, they are by no means universal. Companies and consulting firms often create their own titles to describe the work done by these technical leaders.  Unfortunately, there is no standard describing the body of knowledge people with these titles must master, let alone licensing or certifying credentials. Today, obtaining recognition as a six sigma expert involves little more than plunking down six-digit sums of money to attend six sigma training offered by consulting firms.

42. Six Sigma Organizational Architecture CEO Quality Leader/ Manager (QL/QM)  Master Black Belt (MBB) Process Owner (PO)  Black Belt (BB) Green Belt (GB) Roles and ResponsibilitiesQuality Leader/Manager (QL/QM) - The quality leader's responsibility is to represent the needs of the customer and to improve the operational effectiveness of the organization. The Quality function is typically separated from the manufacturing or transactional processing functions in order to maintain impartiality. The quality manager sits on the CEO/President's staff, and has equal authority to all other direct reports. Master Black Belt (MBB) - Master Black Belts are typically assigned to a specific area or function of a business or organization. It may be a functional area such as human resources or legal, or process specific area such as billing or tube rolling. MBBs work with the owners of the process to ensure that quality objectives and targets are set, plans are determined, progress is tracked, and education is provided. In the best Six Sigma organizations, process owners and MBBs work very closely and share information daily. Process Owner (PO) - Process owners are exactly as the name sounds – they are the responsible individuals for a specific process. For instance, in the legal department there is usually one person in charge -- maybe the VP of Legal -- that's the process owner. There may be a chief marketing officer for your business -- that's the process owner for marketing. Depending on the size of your business and core activities, you may have process owners at lower levels of your organizational structure. If you are a credit card company with processes around billing, accounts receivable, audit, billing fraud, etc., you wouldn't just have the process owner be the chief financial officer, you would want to go much deeper into the organization where the work is being accomplished and you can make a big difference. Black Belt (BB) - Black Belts are the heart and soul of the Six Sigma quality initiative. Their main purpose is to lead quality projects and work full time until they are complete. Black Belts can typically complete four to six projects per year with savings of approximately $230,000 per project. Black Belts also coach Green Belts on their projects, and while coaching may seem innocuous, it can require a significant amount of time and energy. Green Belt (GB) - Green Belts are employees trained in Six Sigma who spend a portion of their time completing projects, but maintain their regular work role and responsibilities. Depending on their workload, they can spend anywhere from 10% to 50% of their time on their project(s). As your Six Sigma quality program evolves, employees will begin to include the Six Sigma methodology in their daily activities and it will no longer become a percentage of their time -- it will be the way their work is accomplished 100% of the time.Roles and ResponsibilitiesQuality Leader/Manager (QL/QM) - The quality leader's responsibility is to represent the needs of the customer and to improve the operational effectiveness of the organization. The Quality function is typically separated from the manufacturing or transactional processing functions in order to maintain impartiality. The quality manager sits on the CEO/President's staff, and has equal authority to all other direct reports. Master Black Belt (MBB) - Master Black Belts are typically assigned to a specific area or function of a business or organization. It may be a functional area such as human resources or legal, or process specific area such as billing or tube rolling. MBBs work with the owners of the process to ensure that quality objectives and targets are set, plans are determined, progress is tracked, and education is provided. In the best Six Sigma organizations, process owners and MBBs work very closely and share information daily. Process Owner (PO) - Process owners are exactly as the name sounds – they are the responsible individuals for a specific process. For instance, in the legal department there is usually one person in charge -- maybe the VP of Legal -- that's the process owner. There may be a chief marketing officer for your business -- that's the process owner for marketing. Depending on the size of your business and core activities, you may have process owners at lower levels of your organizational structure. If you are a credit card company with processes around billing, accounts receivable, audit, billing fraud, etc., you wouldn't just have the process owner be the chief financial officer, you would want to go much deeper into the organization where the work is being accomplished and you can make a big difference. Black Belt (BB) - Black Belts are the heart and soul of the Six Sigma quality initiative. Their main purpose is to lead quality projects and work full time until they are complete. Black Belts can typically complete four to six projects per year with savings of approximately $230,000 per project. Black Belts also coach Green Belts on their projects, and while coaching may seem innocuous, it can require a significant amount of time and energy. Green Belt (GB) - Green Belts are employees trained in Six Sigma who spend a portion of their time completing projects, but maintain their regular work role and responsibilities. Depending on their workload, they can spend anywhere from 10% to 50% of their time on their project(s). As your Six Sigma quality program evolves, employees will begin to include the Six Sigma methodology in their daily activities and it will no longer become a percentage of their time -- it will be the way their work is accomplished 100% of the time.

43. Six Sigma Program In 1988, Motorola Corp. became one of the first companies to receive the Malcolm Baldrige National Quality Award One of Motorola's most significant contributions was to change the discussion of quality from one where quality levels were measured in percentages (parts per hundred) to a discussion of parts per million or even parts per billion. In 1988, Motorola Corp. became one of the first companies to receive the Malcolm Baldrige National Quality Award. The award strives to identify those  excellent firms that are worthy role models for other businesses. One of Motorola's innovations that attracted a great deal of attention was its Six Sigma program. Six Sigma is, basically, a process quality goal. As such, it falls into the category of a process capability (Cp) technique. The traditional quality paradigm defined a process as capable if the process's natural spread, plus and minus three sigma, was less than the engineering tolerance. Under the assumption of normality, this translates to a process yield of 99.73 percent. A later refinement considered the process location as well as its spread (Cpk) and tightened the minimum acceptable so that the process was at least four sigma from the nearest engineering requirement. Motorola's Six Sigma asks that processes operate such that the nearest engineering requirement is at least plus or minus six sigma from the process mean. Motorola's Six Sigma program also applies to attribute data. This is accomplished by converting the Six Sigma requirement to equivalent conformance levels (see Figure 1). One of Motorola's most significant contributions was to change the discussion of quality from one where quality levels were measured in percentages (parts per hundred) to a discussion of parts per million or even parts per billion. Motorola correctly pointed out that modern technology was so complex that old ideas about acceptable quality levels were no longer acceptable.In 1988, Motorola Corp. became one of the first companies to receive the Malcolm Baldrige National Quality Award. The award strives to identify those  excellent firms that are worthy role models for other businesses. One of Motorola's innovations that attracted a great deal of attention was its Six Sigma program. Six Sigma is, basically, a process quality goal. As such, it falls into the category of a process capability (Cp) technique. The traditional quality paradigm defined a process as capable if the process's natural spread, plus and minus three sigma, was less than the engineering tolerance. Under the assumption of normality, this translates to a process yield of 99.73 percent. A later refinement considered the process location as well as its spread (Cpk) and tightened the minimum acceptable so that the process was at least four sigma from the nearest engineering requirement. Motorola's Six Sigma asks that processes operate such that the nearest engineering requirement is at least plus or minus six sigma from the process mean. Motorola's Six Sigma program also applies to attribute data. This is accomplished by converting the Six Sigma requirement to equivalent conformance levels (see Figure 1). One of Motorola's most significant contributions was to change the discussion of quality from one where quality levels were measured in percentages (parts per hundred) to a discussion of parts per million or even parts per billion. Motorola correctly pointed out that modern technology was so complex that old ideas about acceptable quality levels were no longer acceptable.

44. City of Fort Wayne Water main replacement construction bid costs reduced from an average of $61.00 per foot to $50.00 per foot – saving over $315,000 in 2003.Cost per change order for transportation engineering projects was reduced by 50%, resulting in over $170,000 savings to date.More change orders are now within the project tolerance level. The result is a savings of $217,000. Other benefits include higher quality transportation projects, increased customer satisfaction and lower costs to the city.Responses to pothole complaints reduced from an average of 21 hours to 3 hours. http://www.cityoffortwayne.org/6sigma.htm

45. Question: 3M, Dell, Dow, GE, HP, Intel, Motorola, Seagate, Xerox and even the US Men's Olympic Team 3M, Dell, Dow, GE, HP, Intel, Motorola, Seagate, Xerox and even the US Men's Olympic Team

46. Internet Links Here are a number of Internet links that might be helpful in finding additional information on this and related topics. http://www.isixsigma.com/ - i Six Sigma homepage - Six Sigma Quality Resources for Achieving Six Sigma Results http://www.ge.com/sixsigma/ - GE Six Sigma homepage

48. Introduction to the Baldridge Quality Program

49. Poll: Are you familiar with the Baldrige Quality Program? Yes No

50. What is the Baldrige Award? Malcolm Baldrige National Quality Award and the Baldrige National Quality Program established by Congress in 1987 To jumpstart growing US quality movement To recognize quality achievements of U.S. companies To publicize successful strategies Designed and managed by Commerce Department’s National Institute of Standards and Technology (NIST) In 1987, jumpstarting a small, slowly growing U.S. quality movement, Congress established the Malcolm Baldrige National Quality Award and the Baldrige National Quality Program to promote quality awareness, to recognize quality achievements of U.S. companies, and to publicize successful strategies. Now considered America’s highest honor for business excellence, the Baldrige award is presented annually to U.S. companies by the President of the United States. Awards may be given in each of three categories: manufacturing, service, and small business. The Commerce Department’s National Institute of Standards and Technology (NIST) was selected by Congress to design and manage the Baldrige award and program because of its long-standing role in helping U.S. companies compete, its world-renowned expertise in quality control and assurance, and its reputation as an impartial third party. While the award is the centerpiece, the broader Baldrige National Quality Program is helping not only award applicants but many other American businesses and organizations become more competitive and higher performers. “The Malcolm Baldrige National Quality Award is playing a vital role in helping the United States gain the edge in a fiercely competitive global marketplace,” said Secretary of Commerce William Daley. Now, other countries, including Japan, are emulating this American program. In a recent letter to Secretary Daley, the chairman of the newly established Japan Quality Award committee said, “As the Malcolm Baldrige National Quality Award celebrates its first decade, the major contribution that it is making to United States business practices and to the continued vitality and growth of the economy is becoming increasingly clear. The 31 companies recognized with awards provide models of leadership ... both in the United States and overseas.” A Technology Administration, NIST’s primary mission is to promote U.S. economic growth by working with industry to develop and apply technology, measurements, and standards. It carries out this mission through four interwoven programs: $ a highly visible quality outreach program associated with the Malcolm Baldrige National Quality Award that recognizes continuous improvements in quality management by U.S. manufacturers, service companies, educational organizations, and health care providers. $ Measurement and Standards Laboratories that provide technical leadership for vital components of the nation’s technology infrastructure needed by U.S. industry to continually improve its products and services; $ a rigorously competitive Advanced Technology Program providing cost-shared awards to industry for development of high-risk, enabling technologies with broad economic potential; and $ a grassroots Manufacturing Extension Partnership with a nationwide network of local centers offering technical and business assistance to smaller manufacturers. In fiscal year 1998, NIST operated on a budget of about $790 million with nearly 3,300 staff members at its sites in Gaithersburg, Md., and Boulder, Colo. News and general information about NIST programs are available at www.nist.gov, or you can call inquiries at 301-975-NIST or email: inquiries@nist.gov. T E N Y E A R S o f B U S I N E S S E XC E L L E N C E f o r A M E R I C A Since 1988, when the first Malcolm Baldrige National Quality Awards were pre-sented to three companies, the Baldrige National Quality Program, managed by the Commerce Department’s National Institute of Standards and Technology, has grown in stature and impact. Today, the Baldrige program, the award’s criteria for performance excel-lence, and Baldrige award-winning companies are imitated and admired worldwide. Following are some of the program’s 10-year highlights: $ Called “the single most influential document in the modern history of American business,” more than 1.7 million copies of the Baldrige criteria for performance excel-lence have been distributed. That number does not include the copies available in books and from state and local award programs or from the World Wide Web. $ For the past four years, a hypothetical stock index, made up of publicly traded U.S. companies that have received the Malcolm Baldrige National Quality Award, has outperformed the Standard & Poor’s 500 by almost 3-to-1. $ With the October 1998 passage of legislation, NIST will establish and manage Baldrige awards for performance excellence for education organizations and health care providers. They will be eligible to apply for the Baldrige award in 1999. $ State and local quality programs—many modeled after the Baldrige program—have grown from fewer than 10 in 1991 to over 50 in 1997. Forty-four states currently have programs, and that number is expected to grow.In 1987, jumpstarting a small, slowly growing U.S. quality movement, Congress established the Malcolm Baldrige National Quality Award and the Baldrige National Quality Program to promote quality awareness, to recognize quality achievements of U.S. companies, and to publicize successful strategies. Now considered America’s highest honor for business excellence, the Baldrige award is presented annually to U.S. companies by the President of the United States. Awards may be given in each of three categories: manufacturing, service, and small business. The Commerce Department’s National Institute of Standards and Technology (NIST) was selected by Congress to design and manage the Baldrige award and program because of its long-standing role in helping U.S. companies compete, its world-renowned expertise in quality control and assurance, and its reputation as an impartial third party. While the award is the centerpiece, the broader Baldrige National Quality Program is helping not only award applicants but many other American businesses and organizations become more competitive and higher performers. “The Malcolm Baldrige National Quality Award is playing a vital role in helping the United States gain the edge in a fiercely competitive global marketplace,” said Secretary of Commerce William Daley. Now, other countries, including Japan, are emulating this American program. In a recent letter to Secretary Daley, the chairman of the newly established Japan Quality Award committee said, “As the Malcolm Baldrige National Quality Award celebrates its first decade, the major contribution that it is making to United States business practices and to the continued vitality and growth of the economy is becoming increasingly clear. The 31 companies recognized with awards provide models of leadership ... both in the United States and overseas.” A Technology Administration, NIST’s primary mission is to promote U.S. economic growth by working with industry to develop and apply technology, measurements, and standards. It carries out this mission through four interwoven programs: $ a highly visible quality outreach program associated with the Malcolm Baldrige National Quality Award that recognizes continuous improvements in quality management by U.S. manufacturers, service companies, educational organizations, and health care providers. $ Measurement and Standards Laboratories that provide technical leadership for vital components of the nation’s technology infrastructure needed by U.S. industry to continually improve its products and services; $ a rigorously competitive Advanced Technology Program providing cost-shared awards to industry for development of high-risk, enabling technologies with broad economic potential; and $ a grassroots Manufacturing Extension Partnership with a nationwide network of local centers offering technical and business assistance to smaller manufacturers. In fiscal year 1998, NIST operated on a budget of about $790 million with nearly 3,300 staff members at its sites in Gaithersburg, Md., and Boulder, Colo. News and general information about NIST programs are available at www.nist.gov, or you can call inquiries at 301-975-NIST or email: inquiries@nist.gov. T E N Y E A R S o f B U S I N E S S E XC E L L E N C E f o r A M E R I C A Since 1988, when the first Malcolm Baldrige National Quality Awards were pre-sented to three companies, the Baldrige National Quality Program, managed by the Commerce Department’s National Institute of Standards and Technology, has grown in stature and impact. Today, the Baldrige program, the award’s criteria for performance excel-lence, and Baldrige award-winning companies are imitated and admired worldwide. Following are some of the program’s 10-year highlights: $ Called “the single most influential document in the modern history of American business,” more than 1.7 million copies of the Baldrige criteria for performance excel-lence have been distributed. That number does not include the copies available in books and from state and local award programs or from the World Wide Web. $ For the past four years, a hypothetical stock index, made up of publicly traded U.S. companies that have received the Malcolm Baldrige National Quality Award, has outperformed the Standard & Poor’s 500 by almost 3-to-1. $ With the October 1998 passage of legislation, NIST will establish and manage Baldrige awards for performance excellence for education organizations and health care providers. They will be eligible to apply for the Baldrige award in 1999. $ State and local quality programs—many modeled after the Baldrige program—have grown from fewer than 10 in 1991 to over 50 in 1997. Forty-four states currently have programs, and that number is expected to grow.

51. Baldrige Quality Systems Criteria for Performance Excellence Leadership Strategic Planning Customer & Market Focus Information & Analysis Human Resource Focus Process Management Business Results

52. The Baldrige System Why Baldrige is systematic • Supports development of repeatable processes • Based on fact and information • On- going evaluation & improvement • Each part of system impacted by and interacting with other parts • Learning in and across organization Why Baldrige is systematic • Supports development of repeatable processes • Based on fact and information • On- going evaluation & improvement • Each part of system impacted by and interacting with other parts • Learning in and across organization

53. What is Performance Excellence? • Delivery of ever- improving value to customers, contributing to market place success • Improvement of overall organizational effectiveness and capabilities • Organizational and personal learning

54. How Do Organizations Achieve Performance Excellence? • Effective organizations use a common methodology to move towards Organizational Excellence: – Define the organizational goals and framework for achieving them – Assess the organization’s performance against the goals and framework – Continually adjust where improvement opportunities are uncovered

55. Baldrige Core Values • Visionary Leadership • Customer-Driven Excellence • Organizational and Personal Learning • Valuing Employees and Partners • Agility • Focus on the Future Managing for Innovation • Management by Fact • Social Responsibility • Focus on Results and Creating Value •Systems Perspective Baldrige Core Values as defined by theCriteria are values and concepts that are the foundation for integrating key requirements within a results- oriented framework. Core Values The Criteria’s Foundation • Visionary Leadership • Customer- Driven Excellence • Organizational and Personal Learning • Valuing Employees and Partners • Agility • Focus on the Future • Managing for Innovation • Management by Fact • Social Responsibility • Focus on Results and Creating Value •Systems Perspective Baldrige Core Values as defined by theCriteria are values and concepts that are the foundation for integrating key requirements within a results- oriented framework. Core Values The Criteria’s Foundation • Visionary Leadership • Customer- Driven Excellence • Organizational and Personal Learning • Valuing Employees and Partners • Agility • Focus on the Future • Managing for Innovation • Management by Fact • Social Responsibility • Focus on Results and Creating Value •Systems Perspective

56. Baldrige Award Process Companies submit details of company processes, business results, achievements, and improvements Applicants receive 300 to 1,000 hours of review & detailed feedback on strengths and opportunities for improvement The best, most cost-effective, & comprehensive business health audit an organization can get Whether they intend to apply or not, many companies assessing their performance against the Baldrige criteria are improving their competitive advantage, productivity, and customer and employee satisfaction and are achieving stronger financial performance and overall business results. Since a team of outside experts reviews all applications for the award, going through this process brings even greater benefits than self-assessment using the award criteria. To apply, companies must submit details of company processes, business results, achievements, and improvements in answer to questions in the criteria. (Since many applications contain proprietary information, applications are kept confidential.) While there is a fee—$4,500 for large firms and $1,500 for small companies (under 500 employees)—many businesses think the price of applying is well worth the money. All applicants receive 300 to 1,000 hours of review and a detailed feedback report on the company’s strengths and opportunities for improvement from business and quality experts on the award’s mostly private-sector Board of Examiners. “The application and review process for the award is the best, most cost-effective, and comprehensive business health audit you can get,” said Arnold Weimerskirch, former chair, Baldrige award Panel of Judges, and vice president of quality, Honeywell, Inc. Just as the Baldrige program urges organizations constantly to improve, the criteria and the program are reviewed annually with that same goal in mind. A wide range of stakeholders—the private-sector award examiners; the business community, including business school leaders; companies that have applied for the award; and members of leading trade and professional associations—provide advice on improvements. As a result, NIST has revised and streamlined the criteria to focus more sharply on overall performance excellence and a full composite of business results as integral parts of today’s management practice. Whether they intend to apply or not, many companies assessing their performance against the Baldrige criteria are improving their competitive advantage, productivity, and customer and employee satisfaction and are achieving stronger financial performance and overall business results. Since a team of outside experts reviews all applications for the award, going through this process brings even greater benefits than self-assessment using the award criteria. To apply, companies must submit details of company processes, business results, achievements, and improvements in answer to questions in the criteria. (Since many applications contain proprietary information, applications are kept confidential.) While there is a fee—$4,500 for large firms and $1,500 for small companies (under 500 employees)—many businesses think the price of applying is well worth the money. All applicants receive 300 to 1,000 hours of review and a detailed feedback report on the company’s strengths and opportunities for improvement from business and quality experts on the award’s mostly private-sector Board of Examiners. “The application and review process for the award is the best, most cost-effective, and comprehensive business health audit you can get,” said Arnold Weimerskirch, former chair, Baldrige award Panel of Judges, and vice president of quality, Honeywell, Inc. Just as the Baldrige program urges organizations constantly to improve, the criteria and the program are reviewed annually with that same goal in mind. A wide range of stakeholders—the private-sector award examiners; the business community, including business school leaders; companies that have applied for the award; and members of leading trade and professional associations—provide advice on improvements. As a result, NIST has revised and streamlined the criteria to focus more sharply on overall performance excellence and a full composite of business results as integral parts of today’s management practice.

57. Baldrige Award Examiners The Baldrige National Quality Program annually seeks a board of experts capable of evaluating organizations eligible for the Malcolm Baldrige National Quality Award. The Award Program includes five eligibility categories: manufacturing, service, small business, health care, and education. Category coverage and balance are important factors in selecting the Board of Examiners' members. The goal is to ensure broad representation from many industries, companies, and organizations including those from for-profit, not-for-profit, and public sectors.  Whether they intend to apply or not, many companies assessing their performance against the Baldrige criteria are improving their competitive advantage, productivity, and customer and employee satisfaction and are achieving stronger financial performance and overall business results. Since a team of outside experts reviews all applications for the award, going through this process brings even greater benefits than self-assessment using the award criteria. To apply, companies must submit details of company processes, business results, achievements, and improvements in answer to questions in the criteria. (Since many applications contain proprietary information, applications are kept confidential.) While there is a fee—$4,500 for large firms and $1,500 for small companies (under 500 employees)—many businesses think the price of applying is well worth the money. All applicants receive 300 to 1,000 hours of review and a detailed feedback report on the company’s strengths and opportunities for improvement from business and quality experts on the award’s mostly private-sector Board of Examiners. “The application and review process for the award is the best, most cost-effective, and comprehensive business health audit you can get,” said Arnold Weimerskirch, former chair, Baldrige award Panel of Judges, and vice president of quality, Honeywell, Inc. Just as the Baldrige program urges organizations constantly to improve, the criteria and the program are reviewed annually with that same goal in mind. A wide range of stakeholders—the private-sector award examiners; the business community, including business school leaders; companies that have applied for the award; and members of leading trade and professional associations—provide advice on improvements. As a result, NIST has revised and streamlined the criteria to focus more sharply on overall performance excellence and a full composite of business results as integral parts of today’s management practice. Whether they intend to apply or not, many companies assessing their performance against the Baldrige criteria are improving their competitive advantage, productivity, and customer and employee satisfaction and are achieving stronger financial performance and overall business results. Since a team of outside experts reviews all applications for the award, going through this process brings even greater benefits than self-assessment using the award criteria. To apply, companies must submit details of company processes, business results, achievements, and improvements in answer to questions in the criteria. (Since many applications contain proprietary information, applications are kept confidential.) While there is a fee—$4,500 for large firms and $1,500 for small companies (under 500 employees)—many businesses think the price of applying is well worth the money. All applicants receive 300 to 1,000 hours of review and a detailed feedback report on the company’s strengths and opportunities for improvement from business and quality experts on the award’s mostly private-sector Board of Examiners. “The application and review process for the award is the best, most cost-effective, and comprehensive business health audit you can get,” said Arnold Weimerskirch, former chair, Baldrige award Panel of Judges, and vice president of quality, Honeywell, Inc. Just as the Baldrige program urges organizations constantly to improve, the criteria and the program are reviewed annually with that same goal in mind. A wide range of stakeholders—the private-sector award examiners; the business community, including business school leaders; companies that have applied for the award; and members of leading trade and professional associations—provide advice on improvements. As a result, NIST has revised and streamlined the criteria to focus more sharply on overall performance excellence and a full composite of business results as integral parts of today’s management practice.

58. Question: 3M, Dell, Dow, GE, HP, Intel, Motorola, Seagate, Xerox and even the US Men's Olympic Team 3M, Dell, Dow, GE, HP, Intel, Motorola, Seagate, Xerox and even the US Men's Olympic Team

59. Question:

60. Baldridge Internet Links Here are a number of Internet links that might be helpful in finding additional information on this and related topics. http://www.baldrige.gov/index.html - Malcolm Baldrige National Quality Program homepage http://www.nist.gov/ - National Institute of Standards and Technology homepage

61. What Makes the Difference? Six Sigma ISO 9001:2000 Registration Baldrige Criteria for Performance Excellence Six Sigma • concentrates on measuring product quality and improving process engineering. • drives process improvement and cost savings. ISO 9001:2000 Registration • is a product/service conformity model for guaranteeing equity in the marketplace. • concentrates on fixing quality system defects and product/service nonconformities. Baldrige Criteria for Performance Excellence • focus on performance excellence for the entire organization in an overall management framework. • identify and track all-important organizational results: customer, product/service, financial, human resource, and organizational effectiveness. Eastman Chemical Company is a leading international company that produces more than 1,000 chemicals, fibers, and plastics. According to Joe Wilson, Director of Corporate (1993 Recipient in Manufacturing) Open to All Approaches: STMicroelectronics, Inc.–Region Americas continued on the next pageSix Sigma • concentrates on measuring product quality and improving process engineering. • drives process improvement and cost savings. ISO 9001:2000 Registration • is a product/service conformity model for guaranteeing equity in the marketplace. • concentrates on fixing quality system defects and product/service nonconformities. Baldrige Criteria for Performance Excellence • focus on performance excellence for the entire organization in an overall management framework. • identify and track all-important organizational results: customer, product/service, financial, human resource, and organizational effectiveness. Eastman Chemical Company is a leading international company that produces more than 1,000 chemicals, fibers, and plastics. According to Joe Wilson, Director of Corporate (1993 Recipient in Manufacturing) Open to All Approaches: STMicroelectronics, Inc.–Region Americas continued on the next page

62. What Makes the Difference? Six Sigma • concentrates on measuring product quality and improving process engineering. • drives process improvement and cost savings. ISO 9001:2000 Registration • is a product/service conformity model for guaranteeing equity in the marketplace. • concentrates on fixing quality system defects and product/service nonconformities. Baldrige Criteria for Performance Excellence • focus on performance excellence for the entire organization in an overall management framework. • identify and track all-important organizational results: customer, product/service, financial, human resource, and organizational effectiveness. Six Sigma • concentrates on measuring product quality and improving process engineering. • drives process improvement and cost savings. ISO 9001:2000 Registration • is a product/service conformity model for guaranteeing equity in the marketplace. • concentrates on fixing quality system defects and product/service nonconformities. Baldrige Criteria for Performance Excellence • focus on performance excellence for the entire organization in an overall management framework. • identify and track all-important organizational results: customer, product/service, financial, human resource, and organizational effectiveness. Eastman Chemical Company is a leading international company that produces more than 1,000 chemicals, fibers, and plastics. According to Joe Wilson, Director of Corporate (1993 Recipient in Manufacturing) Open to All Approaches: STMicroelectronics, Inc.–Region Americas continued on the next pageSix Sigma • concentrates on measuring product quality and improving process engineering. • drives process improvement and cost savings. ISO 9001:2000 Registration • is a product/service conformity model for guaranteeing equity in the marketplace. • concentrates on fixing quality system defects and product/service nonconformities. Baldrige Criteria for Performance Excellence • focus on performance excellence for the entire organization in an overall management framework. • identify and track all-important organizational results: customer, product/service, financial, human resource, and organizational effectiveness. Eastman Chemical Company is a leading international company that produces more than 1,000 chemicals, fibers, and plastics. According to Joe Wilson, Director of Corporate (1993 Recipient in Manufacturing) Open to All Approaches: STMicroelectronics, Inc.–Region Americas continued on the next page

63. Internet Links Here are a number of Internet links that might be helpful in finding additional information on this and related topics. http://www.iso.org/iso/en/ISOOnline.frontpage - International Organization for Standardization homepage http://www.ge.com/sixsigma/ - GE Six Sigma homepage http://www.isixsigma.com/ - i Six Sigma homepage - Six Sigma Quality Resources for Achieving Six Sigma Results http://www.baldrige.gov/index.html - Malcolm Baldrige National Quality Program homepage http://quality.transportation.org/?siteid=38 - AASHTO Standing Committee on Quality homepage

64. http://quality.transportation.org/?siteid=38 AASHTO Standing Committee on Quality homepage

65. Internet Links Here are a number of Internet links that might be helpful in finding additional information on this and related topics. http://www.nphq.org/index.cfm - National Partnership for Highway Quality (NPHQ) homepage http://www.epa.gov/compliance/nepa/ - National Environmental Policy Act (NEPA) homepage http://nepa.fhwa.dot.gov/ReNepa/ReNepa.nsf/home - FHWA’s homepage supporting NEPA http://www.nist.gov/ - National Institute of Standards and Technology homepage http://www.asq.org/ - American Society for Quality homepage http://www.iqfnet.org/IQF/ - International Quality Federation homepage

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