ISO 9001:2000 Protocol of Standards - ISO 9001:2000 Protocol of Standards - Maybe the way in lighting our next step Maybe the way in lighting our next step

and/or the dream route to excellenceand/or the dream route to excellence

Ivan MencerIvan Mencer

Faculty of EconomicsFaculty of Economics

University of RijekaUniversity of Rijeka

Dubrovnik, October 11, 2003Dubrovnik, October 11, 2003

In general, our In general, our MissionMission is:

To teach and create new knowledge in each specific field of interest!

So, the So, the visionvision could be: could be:

the continuos improvement of our processes! the continuos improvement of our processes!

If so, there is just one way of playing the game:If so, there is just one way of playing the game:

evolution, not revolution!evolution, not revolution!

How to follow this way, and what method should be used?How to follow this way, and what method should be used?

First answerFirst answer could be: could be:

Adapt, not adopt! (?)Adapt, not adopt! (?)

Following first possible answer, the second answer is:Following first possible answer, the second answer is:

Benchmarking!Benchmarking!

Benchmarking is the process of identifying, understanding, and Benchmarking is the process of identifying, understanding, and adapting outstanding practices and processes from organizations adapting outstanding practices and processes from organizations

to improve its performance. [to improve its performance. [John Macdonald, The quality John Macdonald, The quality revolution in retrospect, The TQM Magazine, Volume 10-Number revolution in retrospect, The TQM Magazine, Volume 10-Number

5. MCB University Press, 1998, pp. 321-3335. MCB University Press, 1998, pp. 321-333 ] ]

How to adapt? How to catch the experience of the best, or How to adapt? How to catch the experience of the best, or just to try following them? How to use our gathered just to try following them? How to use our gathered experience , corporate culture, or shared values and experience , corporate culture, or shared values and

system of thinking on Croatian universities?system of thinking on Croatian universities?

World industry practices offer some solutions, such as World industry practices offer some solutions, such as quality protocols that are based on thoughts and quality protocols that are based on thoughts and

experiences of the best companies in world such as experiences of the best companies in world such as GGeneral Motorseneral Motors, , FordFord, , 3M3M, , MotorolaMotorola, , IBM, DuPont, General IBM, DuPont, General

Electric, Eastman Kodak, British Telecom Electric, Eastman Kodak, British Telecom and and Philips Philips ElectronicElectronic. .

Some possibilities are:Some possibilities are:

1) ISO protocol of standards1) ISO protocol of standards

2) Malcolm Baldrige National Quality Award2) Malcolm Baldrige National Quality Award

3) European Quality Award3) European Quality Award

4) Six Sigma4) Six Sigma

5) Deming (14), or Ishikawa(11), Feigenbaum (19), 5) Deming (14), or Ishikawa(11), Feigenbaum (19), Crosby’s (14) set of pointsCrosby’s (14) set of points

5) Other Oscars such as Deming’s Price in Japan.5) Other Oscars such as Deming’s Price in Japan.

Please, remember!Please, remember!

In our case, these protocols could be used, but not for In our case, these protocols could be used, but not for marketing purposes.marketing purposes.

The principal motivation is to concentrate on using our The principal motivation is to concentrate on using our experience and experience of the others universities on experience and experience of the others universities on

the way to reach never ending story - the excellence of our the way to reach never ending story - the excellence of our processes.processes.

Why?Why?

The answers are simple!The answers are simple!

(1) to satisfy the objects of Bologna’s process and(1) to satisfy the objects of Bologna’s process and

(2) to follow the way on route to excellence. It means, not to be the best in comparison to the others. Just to be

better, and better in addition to ourselves.

What to suggest? Which approach is the best?What to suggest? Which approach is the best?

Maybe ISO’s approach! (?)Maybe ISO’s approach! (?)

Why?Why?

Because, the ISO as a platform for quality management, is:Because, the ISO as a platform for quality management, is:

(1) the oldest international system of standards, (1) the oldest international system of standards,

(2) in average, the most popular in the world, and(2) in average, the most popular in the world, and

(3) the best known and mostly used in Croatian industry.(3) the best known and mostly used in Croatian industry.

Little history of a Quality Management StandardsLittle history of a Quality Management Standards

The modern thought about quality was becoming in the The modern thought about quality was becoming in the period between two world wars, in the year 1931, when period between two world wars, in the year 1931, when

W.S. Shewhart of Bell Laboratories published his “Economic W.S. Shewhart of Bell Laboratories published his “Economic Control of Quality of Manufacture Product”.Control of Quality of Manufacture Product”.

1)1) In 1959, U.S. department of defense developed MIL-Q- In 1959, U.S. department of defense developed MIL-Q-9858, which was a system for quality management.9858, which was a system for quality management.

2)2) These system was revised in 1963. These system was revised in 1963.

3)3) In 1968 it was adopted by NATO as its Allied Quality In 1968 it was adopted by NATO as its Allied Quality Assurance Publication 1 (AQAP-1).Assurance Publication 1 (AQAP-1).

4)4) In 1970 AQAP-1 was adopted by the United Kingdom In 1970 AQAP-1 was adopted by the United Kingdom Ministry of Defence.Ministry of Defence.

5)5) In 1979 the British Standards Institute establish BS In 1979 the British Standards Institute establish BS 5750, which addressed the organization and 5750, which addressed the organization and

documentation necessary to produce consistent quality.documentation necessary to produce consistent quality.

6)6) In 1980 was formed Committee on Quality by In 1980 was formed Committee on Quality by International Organization for Standardization in Geneva.International Organization for Standardization in Geneva.

7)7) In 1987, 91 member nations of ISO published a series of In 1987, 91 member nations of ISO published a series of five quality assurance standards (ISO 9001, 9002, 9003 five quality assurance standards (ISO 9001, 9002, 9003

and 9004). The series ware based on BS 5750.and 9004). The series ware based on BS 5750.

8)8) In 1987 was establish another system of quality in U.S, In 1987 was establish another system of quality in U.S, the Malcolm Baldrige National Quality Award. In 2001, for the Malcolm Baldrige National Quality Award. In 2001, for the first time, Malcolm Award was given to an university - the first time, Malcolm Award was given to an university -

University of Wisconsin - Stout (Menomonie) University of Wisconsin - Stout (Menomonie)

9)9) Six Sigma was establish by Six Sigma was establish by MotorolaMotorola in the year 1987 in the year 1987

10)10) In 1994 ISO 9000 from 1984 was revised. In 1994 ISO 9000 from 1984 was revised.

11)11) In 2000 ISO, as the result of continuos improvement, In 2000 ISO, as the result of continuos improvement, implement new approach, strictly based on eight implement new approach, strictly based on eight

management principles, as follows:management principles, as follows:

11.111.1. . Customer focusCustomer focus

11.2.11.2. LeadershipLeadership

11.311.3. . Involvement of peopleInvolvement of people

11.4.11.4. Process approachProcess approach

11.511.5. . System approach to managementSystem approach to management

11.611.6. . Continual improvementContinual improvement

11.711.7. . Factual approach to decision makingFactual approach to decision making

11.8.11.8. Mutually benefit supplier relationshipMutually benefit supplier relationship

What is qualityWhat is quality??

Quality was used over the years to describe attributes Quality was used over the years to describe attributes such as beauty, goodness, expensiveness, freshness and such as beauty, goodness, expensiveness, freshness and

above all luxury.above all luxury.

Quality is:Quality is:1. Any of the features that make something what it is 1. Any of the features that make something what it is

characteristic, element, attributecharacteristic, element, attribute2. Basic nature, character, kind2. Basic nature, character, kind

3. The degree of excellence which a thing possesses3. The degree of excellence which a thing possesses4. Excellence, superiority4. Excellence, superiority

5. Position, capacity, role…5. Position, capacity, role…[Webster’s New World College Dictionary, Macmillan, 1996, New [Webster’s New World College Dictionary, Macmillan, 1996, New

York, USA, p.1099]York, USA, p.1099]

ISO 8042:1994. definition of quality is: ISO 8042:1994. definition of quality is:

The totality of characteristics of an entity that bear on its The totality of characteristics of an entity that bear on its ability to satisfy stated and implied needs.ability to satisfy stated and implied needs.

ISO 9000:2000 defines quality as:ISO 9000:2000 defines quality as:

The degree to which a set of inherent characteristics fulfils The degree to which a set of inherent characteristics fulfils requirements.requirements.

It needs to be added that the same standard defines the It needs to be added that the same standard defines the product as a result of a process.product as a result of a process.

Still one warning! It is extremely important to differ the Still one warning! It is extremely important to differ the term quality and grade.term quality and grade.

Quality is meeting the needs and expectation of the Quality is meeting the needs and expectation of the customer.customer.

Practically, quality is the gap between how good Practically, quality is the gap between how good something is and how good it possibly could be, and that something is and how good it possibly could be, and that

we should continually focus on narrowing that gap.we should continually focus on narrowing that gap.[Lynda King Taylor, Quality:Total Customer Service, The Sunday [Lynda King Taylor, Quality:Total Customer Service, The Sunday

Times Business Skills, London 1992, p.140]Times Business Skills, London 1992, p.140]

Quality is a result of continual fight to overcome Quality is a result of continual fight to overcome our weaknesses.our weaknesses.

So, when we mention the term quality, our expression So, when we mention the term quality, our expression could be understood as (1) a matter of individual could be understood as (1) a matter of individual

perception (taste) and (2) the system of all characteristics perception (taste) and (2) the system of all characteristics (elements) of an entity.(elements) of an entity.

Some basic information about ISO 9001:2000Some basic information about ISO 9001:2000

Figure 1 Conceptual presentation of QMS modelFigure 1 Conceptual presentation of QMS model

The structure of ISO 9001:2000 is, as followsThe structure of ISO 9001:2000 is, as follows::

4 Quality Management System4 Quality Management System

4.1 General requirements4.1 General requirements4.2 Quality manual4.2 Quality manual

4.2.3 Control of documents (4.2.3 Control of documents (obligatory requirementobligatory requirement))4.2.4 Control of records (4.2.4 Control of records (obligatory requirementobligatory requirement))

(continue)(continue)

5 Management responsibility5 Management responsibility

5.1 Management commitment5.1 Management commitment5.2 Customer focus5.2 Customer focus5.3 Quality policy5.3 Quality policy

5.4 Planning5.4 Planning5.4.1 Quality objectives 5.4.1 Quality objectives

5.4.2. Quality management system planning5.4.2. Quality management system planning5.5 Responsibility and authority5.5 Responsibility and authority

5.5.2 Management representative5.5.2 Management representative5.5.3 Internal communication5.5.3 Internal communication

5.6 Management review5.6 Management review5.6.1 General5.6.1 General

5.6.2 Review input5.6.2 Review input5.6.3 Review output5.6.3 Review output

(continue)(continue)

6 Resources management6 Resources management

6.1 Provision of resources6.1 Provision of resources6.2 Human resources6.2 Human resources

6.2.1 General6.2.1 General6.2.2 Competence, awareness and training6.2.2 Competence, awareness and training

6.3 Infrastructure6.3 Infrastructure6.4 Work environment6.4 Work environment

(continue)(continue)

7 Product realization7 Product realization

7.1 Planning of realization processes7.1 Planning of realization processes7.2. Customer related processes7.2. Customer related processes

7.2.1 Determination of requirement related to the product7.2.1 Determination of requirement related to the product7.2.2 Review of requirements related to the product7.2.2 Review of requirements related to the product

7.2.3 Customer communication7.2.3 Customer communication7.3.Design and development planning7.3.Design and development planning

7.3.1 Design and development planning7.3.1 Design and development planning7.3.2 Design and development inputs7.3.2 Design and development inputs

7.3.3 Design and development outputs7.3.3 Design and development outputs7.3.4 Design and development review7.3.4 Design and development review

7.3.5 Design and development verification7.3.5 Design and development verification7.3.6 Design and development validation7.3.6 Design and development validation

7.3.7 Control of design and development changes7.3.7 Control of design and development changes

(continue) (continue)

7.4 Purchasing7.4 Purchasing7.4.1 Purchasing process7.4.1 Purchasing process

7.4.2 Purchasing information7.4.2 Purchasing information7.4.3 Verification of purchased product7.4.3 Verification of purchased product

7.5 Production and service provision7.5 Production and service provision7.5.1 Control of production and service provision7.5.1 Control of production and service provision

7.5.2 Validation of processes for production and service 7.5.2 Validation of processes for production and service provisionprovision

7.5.3 Identification and traceability7.5.3 Identification and traceability7.5.4 Customer property7.5.4 Customer property

7.5.5 Preservation of product7.5.5 Preservation of product7.6 Control of monitoring and measuring devices7.6 Control of monitoring and measuring devices

8 Measurement, analysis and improvement8 Measurement, analysis and improvement

8.1 General8.1 General8.2 Monitoring and measurement8.2 Monitoring and measurement

8.2.1 Customer satisfaction8.2.1 Customer satisfaction8.2.2 Internal audit (8.2.2 Internal audit (obligatory requirementobligatory requirement ) )8.2.3 Monitoring and measurement of processes8.2.3 Monitoring and measurement of processes8.2.4 Monitoring and measurement of product8.2.4 Monitoring and measurement of product

8.3 Control of non conforming product(8.3 Control of non conforming product(obligatory obligatory requirement)requirement) 8.4 Analysis of data 8.4 Analysis of data

8.5. Improvement8.5. Improvement8.5.1 Continual improvement8.5.1 Continual improvement

8.5.2 Corrective action (8.5.2 Corrective action (obligatory requirementobligatory requirement ) )8.5.3 Prevention action (8.5.3 Prevention action (obligatory requirementobligatory requirement ) )

Malcolm Baldrige National Quality AwardMalcolm Baldrige National Quality Award is consisted is consisted on seven core categories. Each category gathered some on seven core categories. Each category gathered some

items with point values.items with point values.

The structure is, as follows:The structure is, as follows:

1. 1. LeadershipLeadership (95 point values) (95 point values)2. 2. Information and analysisInformation and analysis (75 point values) (75 point values)

3. 3. Strategic Quality PlanningStrategic Quality Planning (60 point values) (60 point values)4. 4. Human Resource Development and ManagementHuman Resource Development and Management

(150 point values)(150 point values)5. 5. Management and Process of QualityManagement and Process of Quality (140 point (140 point

values)values)6. 6. Quality and Operational ResultsQuality and Operational Results (180 point values) (180 point values)7. 7. Customer Focus and SatisfactionCustomer Focus and Satisfaction (300 point values) (300 point values)

All together point values 1000All together point values 1000

Nevertheless, ISO standards are maybe closer to us than Nevertheless, ISO standards are maybe closer to us than Malcolm’s approach.Malcolm’s approach.

Figura 2 The potential role and real position of ISO in TQM Figura 2 The potential role and real position of ISO in TQM continual improvement processescontinual improvement processes

Whether we accept the potential strength of ISO Whether we accept the potential strength of ISO 9001:2000 model for implementing a specific framework 9001:2000 model for implementing a specific framework

for reaching a constant quality level, which assures a for reaching a constant quality level, which assures a continual improvement process, it is quite reasonable to continual improvement process, it is quite reasonable to

propose some details, such as:propose some details, such as:

1 Top management must take charge of quality 1 Top management must take charge of quality management implementation and their unconditional management implementation and their unconditional

commitment to quality constitutes the cornerstone of the commitment to quality constitutes the cornerstone of the system.system.

2 Personnel throughout the organization must be exposed 2 Personnel throughout the organization must be exposed to training in quality management.to training in quality management.

3 Quality improvement must be viewed as a continuos 3 Quality improvement must be viewed as a continuos process.process.

4 Participation of the work force in quality improvements 4 Participation of the work force in quality improvements must be secured.must be secured.

For us, ISO protocol of standards, or any other system of For us, ISO protocol of standards, or any other system of quality management do not have to be a platform of being quality management do not have to be a platform of being

involved in the award process. We, in academic involved in the award process. We, in academic community, do not need to get a formal award. community, do not need to get a formal award.

ISO could be the way, becauseISO could be the way, becauseISO set of quality standards, as the result of outstanding ISO set of quality standards, as the result of outstanding

experience from the West, guarantees faster way to experience from the West, guarantees faster way to achieve quality goals than wasting time to find our own achieve quality goals than wasting time to find our own

framework of quality. framework of quality. The problem is not to adapt to western experience, but to The problem is not to adapt to western experience, but to

put together our own experience in a consistent put together our own experience in a consistent framework of quality.framework of quality.

In Croatia there are some good examples:In Croatia there are some good examples:

Faculty of Maritime Studies University of Rijeka.Faculty of Maritime Studies University of Rijeka.

This Faculty has been pressed to implement the ISO This Faculty has been pressed to implement the ISO 9001:2000, under the STCW convention prepared by IMO, 9001:2000, under the STCW convention prepared by IMO,

London 1978 and 1995.London 1978 and 1995.

www.pfri.hrwww.pfri.hr

It also must be mentioned that some firms in Rijeka that It also must be mentioned that some firms in Rijeka that have an ISO 9001:2000 and 14001:1995 certifications are have an ISO 9001:2000 and 14001:1995 certifications are in big business problems, thanks to non clever strategic in big business problems, thanks to non clever strategic

decisions.decisions.

The certifications can not help to overcome these The certifications can not help to overcome these problems. The ISO framework can exclusively help if top problems. The ISO framework can exclusively help if top

management decisions are not mindless.management decisions are not mindless.

If we follow suggestions of an expert who is passionate for If we follow suggestions of an expert who is passionate for quality, ideal quality system could be:quality, ideal quality system could be:

1. Quality-centric focus on continual improvement using 1. Quality-centric focus on continual improvement using Six SigmaSix Sigma in all areas of the company - not just the in all areas of the company - not just the

manufacturing department.manufacturing department.

2. 2. ISO 9001:2000ISO 9001:2000 provides good model on how to provides good model on how to structure a quality system.structure a quality system.

3. 3. ISO 9001:2000ISO 9001:2000 approach on documentation system approach on documentation system using the same structure.using the same structure.

4. 4. The Baldrige criteriaThe Baldrige criteria as an auditing tool for those who as an auditing tool for those who want to identify areas of strength and area for want to identify areas of strength and area for

improvement. improvement.

[Scott Dalgleish, My Ideal Quality System, Quality, Bensenvillle, [Scott Dalgleish, My Ideal Quality System, Quality, Bensenvillle, IL, July 2003, p 14] IL, July 2003, p 14]