“approaches to quality – the certification scenario

QUALITY MANAGEMENT

“Approaches to Quality –“Approaches to Quality –The Certification Scenario”The Certification Scenario”

Introductory LectureIntroductory Lecture

MARIA MARIA GISELLA CONCAGISELLA CONCA

LIUC - Castellanza February - May 2001

CERTIFICATION: UPTAKE AND STANDARDSCERTIFICATION: UPTAKE AND STANDARDS

CONTENTS

ØØ HISTORICAL EVOLUTION AND BUSINESS SIGNIFICANCE OFTHE QUALITY CONCEPT

ØØ THE QUALITY PRINCIPLES IN SMEs: PREVENTION, THECUSTOMER, PROCESSES AND RESOURCES

ØØ THE UPTAKE OF QUALITY SYSTEM CERTIFICATION : SCENARIO DATA

ØØ THE ISO EN UNI STANDARD FOR QUALITY MANAGEMENTAND QUALITY ASSURANCE

ØØ ISO-EN-UNI 8402 TERMS AND DEFINITIONS

© M.G. Conca

•CERTIFICATION under the ISO 9000standards

•QUALITY ASSURANCE

•RELIABILITY (quality over time)

•STATISTICAL QUALITY CONTROL

•QL INSPECTION (100% inspection)

1992

1987

1950

1920

YEAR Evolution of methodologies

The pathway of western companiesThe pathway of western companies M. G. M. G. ConcaConca 1996 -2001 1996 -2001

EVOLUTION OF METHODOLOGIES:a reference timeline


2000

•VISION 2000

•TQM - Business Excellence

•SELF-ASSESSMENT

•EUROPEAN QUALITY AWARD

•DYNAMIC QUALITY SYSTEMS

•CERTIFICATION under the ISO9000 standards

•QUALITY ASSURANCE

•RELIABILITY (quality over time)

•STATISTICAL QUALITY CONTROL

•QL INSPECTION (100% inspection)

1992

1987

1950

1920

YEAR Evolution of methodologies

The pathway of western companiesThe pathway of western companies © M. G. M. G. ConcaConca 1996 -2001 1996 -2001



2000

IIIIII- - QLQL of the of theCOMPANYCOMPANYSYSTEM SYSTEM as aas awholewhole

IIII- - QL QL of theof thePROCESSESPROCESSES

II- - QLQL of the of thePRODUCTPRODUCTsystemsystem

Company system involved

CUSTOMERCUSTOMER

COMPANYCOMPANY 11

100%100%inspectioninspection

QUALITY, THE CUSTOMER AND THESUPPLIER


SDA - Bocconi 1997 © M.G. Conca

SUPPLIERSUPPLIER CUSTOMERCUSTOMER

COMPANYCOMPANY33

SelectionSelectionofof

supplierssuppliersMPMP

11

100%100%inspectioninspection

22

StatisticalStatisticalControlControl



SDA - Bocconi 1997 © M.G. Conca

THE QUALITY “GURUS”THE QUALITY “GURUS”

ÜÜ DEMING:DEMING: The The statisticalstatistical approach approach,, the role of the role of leadershipleadership, , the Deming cycle (P,D,C,A)the Deming cycle (P,D,C,A)

ÜÜ JURANJURAN:: The pragmatic -The pragmatic - gradual approach, gradual approach, control, control, planningplanning, , improvementimprovement

ÜÜ FEIGENBAUMFEIGENBAUM:: ““TQCTQC” (Total Quality Control” (Total Quality Control))

ÜÜ CROSBYCROSBY:: Quality as an Quality as an iinvestmentnvestment which produceswhich producesprofits, and not as a cost;profits, and not as a cost; “Quality is free”;“Quality is free”;

ÜÜ ISHIKAWAISHIKAWA:: “Company Wide Quality Control”, Quality“Company Wide Quality Control”, Quality ClubsClubs..

P

DC

A

Orientation towardOrientation towardRATIONALRATIONALPROCESSPROCESS

MANAGEMENTMANAGEMENT

Orientation towardOrientation towardMEASURING ANDMEASURING AND

STRIVING FORSTRIVING FORCUSTOMERCUSTOMERsatisfactionsatisfaction

Enhancement ofEnhancement ofRESOURCES RESOURCES andand

improved relations withimproved relations withINSTITUTIONALINSTITUTIONAL

PARTNERSPARTNERS

MEASUREMENT MEASUREMENT andandIMPROVEMENTIMPROVEMENT

ofofPERFORMANCEPERFORMANCE

Orientation towardOrientation towardPLANNING PLANNING andand

CONTINUALCONTINUALINNOVATIONINNOVATION

QUALITY PRINCIPLES IN SMEsQUALITY PRINCIPLES IN SMEs

1999 © M.G. Conca

ESSENCE OF QUALITYESSENCE OF QUALITY

Corrective Actions

Corrective Actions

QPrevention

Corrective Actions

Source: F. Galetto, Quality: some statistical methods for Managers, 2nd edition, CUSL, Torino, 1996

WHAT PREVENTION MEANSWHAT PREVENTION MEANS

1.WELL DEFINEDSPECIFICATIONSFOR EVERYACTIVITY

2.DETERMINING THECAUSES OF ERRORAND ELIMINATINGTHEM FOR GOOD

3.DO IT RIGHT FIRSTTIME

INSTEAD OF

INSTEAD OF

INSTEAD OF

CHASING AFTERANOMALOUS AND ILL-

DEFINED SITUATIONS

CHECKING ANDDETECTING

INDEFINITELY

REDOING ATHIGHER COST

THE DEMING CYCLETHE DEMING CYCLE

AA PP

CC DD

P = PLAN PLAN thoroughly before actingD = DO IMPLEMENT the devised planC = CHECK ASSESS whether the outcome is positiveA = ACT STANDARDISE if the outcome was positive

THE STEPS OF THE DEMING CYCLETHE STEPS OF THE DEMING CYCLE

ØØ PLANPLAN::- describe the real process- identify customer expectations- identify the characteristics of the

suppliers- create the measurement system- data collection, organisation and

analysis- analysis of problems and identification of the underlying

causes- devise actions for improvement- assessment of priorities (cost-

benefit analysis)

ØØ DODO::- approval of projects and

implementation within a restricted sphere (possible trial)

ØØ CHECKCHECK::- assess the results of the corrective actions

ØØ ACTACT::- global and definitive implementation of correctiveactions- verify customer satisfaction and

initiate a new improvement cycle

THE EXTERNAL CUSTOMER AND THEINTERNAL CUSTOMER

THE EXTERNAL CUSTOMER AND THEINTERNAL CUSTOMER

SUPPLIERS EXTERNAL CUSTOMERS

COMPANY

Source: T. Conti, How to build Total Quality, III ed., Sperling & Kupfer Editori, Milano, 1992

THE PROCESS AS A LINK IN THE VALUECHAIN

THE PROCESS AS A LINK IN THE VALUECHAIN

ADDED VALUEADDED VALUEINPUTINPUT OUTPUTOUTPUT CUSTOMERCUSTOMER

RESULT

-a sequence of actions, each with added value, which starting from acertain number of inputs, produce the desired outputs. (EFQM,1994)-a set of interrelated activities which produce a result that has addedvalue for the customer.(Hammer, Champy, 1993)

THE COMPANY AS A FLOW OF PROCESSESTHE COMPANY AS A FLOW OF PROCESSES

INPUT

PARALLEL FLOW

PARALLEL FLOW

OUTPUT

Source: T. Conti, How to build Total Quality, III ed., Sperling & Kupfer Editori, Milano, 1992

FUNCTIONAL VALUES FOR THE DEVELOPMENTOF COMPANIES ENGAGING IN E-BUSINESS

FUNCTIONAL VALUES FOR THE DEVELOPMENTOF COMPANIES ENGAGING IN E-BUSINESS

COST EFFECTIVENESSCOST EFFECTIVENESSPRODUCTIVITYPRODUCTIVITY

RESPECT,RESPECT,ENHANCEMENTENHANCEMENT

ANDANDDEVELOPMENT DEVELOPMENT OFOF

RESOURCESRESOURCES(tangible and(tangible and

intangible, etc...)intangible, etc...)

ENTREPRENEURIALENTREPRENEURIALCREATIVITY ANDCREATIVITY AND

SYSTEMATICSYSTEMATICINNOVATIONINNOVATION(partnerships)(partnerships)

CUSTOMERCUSTOMERSERVICE, CARE ANDSERVICE, CARE AND

LOYALTYLOYALTY

2001 © M.G. Conca

92,61092,610

9,2409,240 10,52610,5261,4401,440

10,15910,159

00

2000020000

4000040000

6000060000

8000080000

100000100000

EuropeEurope(74.70%)(74.70%)

FarFarEastEast

(7.45%)(7.45%)

Australia andAustralia andNewNew

ZealandZealand(8.49%)(8.49%)

SouthSouthAmericaAmerica(1.16%)(1.16%)

NorthNorthAmerica (USA andAmerica (USA and

Canada)Canada)(8.19%)(8.19%)

Source: Il Sole 24 ore, December 1995 data

THE UPTAKE OF CERTIFICATIONTHE UPTAKE OF CERTIFICATION

Comparison by geographical areaComparison by geographical area

©© SDA BOCCONISDA BOCCONI - M.G. - M.G. CONCACONCA

Europe(excluding GB)

29%

Australia andNew Zealand

7% Canada1%

USA

6%

South America1%

Asia 6%

Africa3%

Great Britain

47%

Source: ISO 9000 News June 1995

THE UPTAKE OF CERTIFICATION (continued)THE UPTAKE OF CERTIFICATION (continued)


N° Country No. of Certifications1 Great Britain 44,1072 USA 5,9543 Germany 5,8754 Australia 5,2995 France 4,2776 Holland 4,1987 Italy* 3,1468 Japan 1,8279 South Africa 1,627

10 Switzerland 1,52011 Ireland 1,41012 Canada 1,29013 Belgium 1,22614 Denmark 1,18315 New Zealand 1,18016 Taiwan 1,060

NUMBER OF CERTIFICATIONS IN THE WORLDNUMBER OF CERTIFICATIONS IN THE WORLD

*2730 by SINCERT accredited registrarsSource: ISO 9000 News June 1995, updated to 31/3/95

121 417583 1,026

1,507

2,139

2,730

3,883

1,000

2,000

3,000

4,000

5,000

6,000

30/0

6/92

31/1

2/92

30/0

6/93

31/1

2/93

31/1

2/94

30/0

6/95

31/1

2/95

30/0

6/96

5,156

30/0

6/94

GROWTH OF CERTIFIED COMPANIES IN ITALYGROWTH OF CERTIFIED COMPANIES IN ITALY

Source: SINCERT, data updated to 30/6/97

30/0

6/97

9,262

9,000


2296

454 471 402

277181 160 148

121 94 88 8055 79 55

24 15 17 109

3510

929871 852

578

401 357275 201 196 185 185 152 119 96 74 42 34 19 10

0

500

1000

1500

2000

2500

3000

3500

Lom

bard

y

Emili

a R.

Piedm

ont

Venet

iaLat

ium

Tusc

any

Campa

nia

Liguria

Umbr

ia

Friuli V

.G.

March

es

Apulia

Sicily

Abruzz

o

Trentin

o

Sardi

nia

Calabr

ia

Basilic

ata

Valle d

'Aost

aMol

ise

NUMBER OF SINCERT-CERTIFIED COMPANIESNUMBER OF SINCERT-CERTIFIED COMPANIES

Source: SINCERT, 30/6/’97


Region Data'96 Data '97 Var%

Abruzzo 119 51%Basilicata 34 100%

Calabria 42 180%Campania 357 123%Emilia 929 105%

Friuli 196 108%Latium 578 109%

Liguria 275 46%Lombardy 3510 53%

Marches 185 110%Molise 10 11%

Piedmont 871 85%Apulia 185 131%Sardinia 74 67%

Sicily 152 176%Tuscany 401 122%

Trentino 96 74%Umbria 201 66%

Valle d'Aosta 19 90%Venetia 852 112%

CERTIFIED COMPANIES IN ITALY BY REGIONCERTIFIED COMPANIES IN ITALY BY REGION

7917

15160454

94277

1482296

889

47180

2455

18155

121

10

402

Source: SINCERT, 30/6/’97


ISO - TERMS AND DEFINITIONSISO - TERMS AND DEFINITIONSISO - TERMS AND DEFINITIONS

WHAT IS ISO?

- International standardisation organisation- Set up in 1947 by approximately 90 members

PURPOSE AND SCOPE OF APPLICATION OF THEISO 8402 STANDARD

- Defines the basic quality-related terms applied toproducts and services for the drafting andimplementation of standards for company qualitysystems.

ISO STANDARDS AND GUIDELINESISO STANDARDS AND GUIDELINESISO STANDARDS AND GUIDELINES

STANDARDS:

ISO 9001, 9002 and 9003 - Documents applicable to WarrantySituations, “contractual” quality for different levels and areasof the organisation.

GUIDELINES:

ISO 8402 - Terminology;

ISO 9000-1 - General introductory document;

ISO 9004-1 - Guidelines for managing company qualitysystem elements (internal use);

ISO 9004-2 - Guidelines for service activities

THE ISO 9000 STANDARDS: MODELSFOR QUALITY ASSURANCE

THE ISO 9000 STANDARDS: MODELSTHE ISO 9000 STANDARDS: MODELSFOR QUALITY ASSURANCEFOR QUALITY ASSURANCE

ISO 9001: 1994 Quality systems - Model for qualityassurance in design, development,production, installation and servicing.

ISO 9002: 1994 Quality systems - Model for qualityassurance in production, installation andservicing.

ISO 9003: 1994 Quality systems - Model for qualityassurance in final inspection and testing.

11

22

33

1 - Revision ISO 9001: 1987



THE QUALITY SYSTEM 3.6THE QUALITY SYSTEM 3.6THE QUALITY SYSTEM 3.6

Note(1): the quality system should only include those elementswhich are necessary for achieving the quality goals.

Note(2): an organisation’s quality system must be designedchiefly to meet the internal needs of the organisationat the management level. It is broader in scope than therequirements, which may interest a particular customerwho only evaluates the part of the quality system that isrelevant to him.

Note(3): it may be necessary to demonstrate the implementationof specific parts of the quality system for the purposes ofcontractual or mandatory quality assessment.

The organisational structure, the procedures, theprocesses and resources necessary for implementingquality management

Source: UNI EN ISO 8402 October ‘95 Quality Management and Quality Assurance Termsand Definitions