New definition of quality: “Degree to which a set of inherent characteristics fulfils requirements” ISO 9000:2000, Quality management systems – fundamentals and vocabulary.
WHAT IS ISO • ISO (pronounced aizo) is a Greek word that means equal. • It is a set of international standards prepared by the International Organisation for Standardization, a voluntary body that has representation from more than 100 countries and is headquartered in Geneva
History of ISO The International Organization for Standardization (ISO) was formed in 1946 in Geneva Switzerland. The ISO’s intention was to promote the development of international standards and related activities so as to foster the increased trade of products and services between countries. ISO was initially focused on of the increasing technological complexities in engineering and defence industries where consequences of failure were very high. Today the ISO 9000 standards have been mandated by many governments and organizations around the world.
Purpose of ISO • Harmonise standards at international level. • Ensure consistency of output • Make organisations more competitive by reducing wastage at various places in the company
ISO 9000 Standards • A number of standards have been issued since its inception about 50 years ago. • The first set of harmonised standards on Quality Assurance were issued in the year 1987. • Subsequent revision was done in the year 1994. • Last revision has been done in 2000 • New structure is process based and more generic in nature, • Clearly based on the Plan – Do – Check – Act principle • Recommendatory in nature. • They do not over-ride the laws of any country.
ISO – 9000:2000 Family The previous 20 standards are now replaced by four: • ISO 9000: Quality Management Systems – Fundamental & Vocabulary • ISO 9001: Quality Management System – Requirements • ISO 9004: Quality Management System – Guidance for performance improvement • ISO 19011: Guidelines for auditing quality & environmental management systems.
ISO-9001:2000 Major Clauses in new ISO 9001:2000 • Quality Management Systems • Management Responsibility • Resource Management • Product Realization • Measurement, Analysis & Improvement
Quality Management Principles • Customer Focus • Leadership • Involvement of People • Process Approach • System Approach • Continual Improvement • Factual Approach to Decision Making • Mutually Beneficial Supplier Relationship
Customer Focus Organizations depend on customer Determine customer needs & expectations Requirements Principle 1 Customer Satisfaction
Leadership Leaders establish unity of purpose, direction and internal environment in which people become fully involved. Principle 2
Involvement of people • People at all levels are the essence of the organization. • Their full involvement enables using their abilities to the benefit of the organization Principle 3
Process Approach A desired result is more efficiently achieved when resources and activities are managed as a process. Principle 4
System Approach Identifying, understanding and managing a system of interrelated processes for a given objective contributes to effectiveness and efficiency. Principle 5
Continual Improvement Continual improvement is a permanent objective of the organization. Principle 6
Factual Approach to Decision Making Effective decisions are based on the logical and intuitive analysis of data and information. Principle 7
Mutually Beneficial Supplier Relationship Mutual beneficial relationships between an organization and its suppliers enhance the ability of both organizations to create value. Principle 8
ISO Citibank Kenya • Citibank Kenya Operations & Technology has been certified for ISO 9001:2000 • The Certification was done by Bureau Veritas in October 2001.
Benefits of ISO Standards • Customers • Company • Employees
Customers • Quality Service • Increased Confidence in Service • Less number of non-compliance's. • Improved Supply/Consistent Quality • Helps in Planning Activity • Competitive Pricing/Lead Time Reduction
Company • Reduced Number of defects • Increased Customer Satisfaction • Consistency in Output • Assured Customer/Market Share • Reduction in costs due to reduction of defects • Involvement of Personnel and consequent Higher Productivity
Employees • Defined Directions • Improved Performance • Better and improved relation. • Increases Motivation • Job Satisfaction • Involvement • Pride of working in an ISO 9000 company.