Assignment: 4

1. Discuss the eight principles of the ISO 9000 standard

The ISO 9000 is a family of standards and guidelines related to the quality management
system (QMS). It sets the requirements for the assurance of quality and for managements
involvement.
The ISO 9000 eight principles from total quality management are as follows:
1. Customer Focus: - Customer focus means to understand the needs of the
customers and to fulfill that needs, and strive to exceed customer requirements.
2. Leadership: - Leadership means establishing unity of purpose and
organizational direction and provide an environment that promotes employees
involvement and achievement of objective.
3. Involvement of People: - Involvement of people means taking advantage of
fully involved employees and using all their abilities for the benefit of the
organization.
4. Process Approach: - Recognize that things accomplished are the results of
processes and that processes along with related activities and resources must be
managed.
5. System Approach to Management: - The multiple interrelated processes that
contribute to the organizations effectiveness are a system and should be
managed as a system.
6. Continual Improvement:-Continual improvement should be a permanent
objective applied to the organization and to its people, processes, systems, and
products.
7. Factual Approach to Decision Making: - Decisions must be based on the
analysis of accurate, relevant, and reliable data and information.
8. Mutually Beneficial Supplier Relationships: - The organization and the
supplier both get benefited from one anothers resources and knowledge which
is valuable to both of them.

2. Discuss Pareto Charts

A Pareto chart, is a vertical bar graph in which values are plotted in decreasing order of
relative frequency from left to right. Pareto charts are extremely useful for analyzing
what problems need attention first because the taller bars on the chart, which represent
frequency, clearly illustrate which variables have the greatest cumulative effect on a
given system.
The Pareto chart provides a graphic depiction of the Pareto principle, a theory
maintaining that 80% of the output in a given situation or system is produced by 20% of
the input. The Pareto chart is one of the seven basic tools of quality control. The

independent variables on the chart are shown on the horizontal axis and the dependent
variables are shown as the heights of the bars.
Usage and Benefits of Pareto Charts
Pareto Charts are very useful tools to focus attention and apply resources to the "big"
problem areas in business.
Often people know how to make improvements to a process but they are not aware of the
point from where they should start working. This is where the Pareto charts can help.
There can be different types of errors and problems in a process like customer
dissatisfaction, complaints, measurement irregularities, employee attrition and
unnecessary delays and these errors round up to create major discrepancies in the process
outputs.
Pareto Charts help you identify following issues:
What are the largest issues facing your team or business
What 20% of sources are causing 80% of the problems (80/20 Rule)
Where should you focus your efforts to achieve the greatest improvements

3. Discuss fishbone diagrams

The fishbone diagram is also often called a cause-and-effect diagram which helps to
focus a group, thereby reducing irrelevant discussions. Such diagrams separate causes
from symptoms and force the issue of data collection. This chart is simply a means of
visualizing how the various factors associated with the process affect the process output.
The cause-and-effect diagram provides a graphic view of the entire process that is easily
interpreted by the brain. The cause-and-effect diagram serves as an excellent reminder
that the items noted on it are the things the company needs to pay attention to if the
process is to continually improve.

Fishbone Diagram
Each cause or reason for imperfection is a source of variation. Causes are usually
grouped into major categories to identify these sources of variation. The categories
typically include
People: Anyone involved with the process
Methods: How the process is performed and the specific requirements for doing it, such
as policies, procedures, rules, regulations and laws
Machines: Any equipment, computers, tools, etc. required to accomplish the job
Materials: Raw materials, parts, pens, paper, etc. used to produce the final product
Measurements: Data generated from the process that are used to evaluate its quality
Environment: The conditions, such as location, time, temperature, and culture in which
the process operates

4. Discuss histograms
Histograms are used to chart frequency of occurrence. Following are the uses of
histogram:

To display large amounts of data values in a relatively simple chart form

To tell relative frequency of occurrence
To easily see the distribution of the data
To see if there is variation in the data
To make future predictions based on the data

There are two types of data that are related with processes which are attributes and
variables data. The output product of a certain process either has or does not have an
attribute. Data that shows results of when something is measured is known as variable
data.

Histogram is a TQM tool basically used by the management to improve organization

quality and production, especially quality management chart business. Analysts examine
the TQM effect on profitability and productivity on an organization and develop the
corresponding management strategy. It is a widespread organization methodology that is
applied horizontally in all directions.

5. Discuss control charts for variables

Control chart is a very powerful and effective tool for the tracking and control of
processes. It is used to separate the special causes from the common causes which helps
in evaluating problems and findings solutions for them.

The above control chart depicts data is plotted over time. The data stays between the
upper control limit (UCL) and the lower control limit (LCL) while varying about the
centerline or average only so long as the variation is the result of common causes (i.e.,
statistical variation). Whenever a special cause impacts the process, one of two things
will happen: Either a plot point will penetrate UCL or LCL. When a penetration or a
lengthy run appears, this is the control charts signal that something is wrong that requires
immediate attention. As long as the plots stay between the limits and dont congregate on
one side or the other of the process average line, the process is in statistical control. If
either of these conditions is not met, then we can say that the process is not in statistical
control.

6. Discuss flowcharts and give a simple example

Flowcharts are used in a total quality setting for charting the inputs, steps, functions, and
outflows of a process to understand more fully how the function works and who or what
has input into and influence on the process, its inputs and outputs, and even its timing.
The survey is used to obtain relevant information from sources that otherwise would not
be heard from in the context of providing helpful data.

Types of flow-chart:
High-Level Flowchart
A high-level flowchart shows the major steps in a process. It illustrates a "birds-eye
view" of a process; such a flowchart offers a basic picture of the process and identifies
the changes taking place within the process
Detailed Flowchart
The detailed flowchart provides a detailed picture of a process by mapping all of the steps
and activities that occur in the process. This type of flowchart indicates the steps or
activities of a process and includes such things as decision points, waiting periods, tasks
that frequently must be redone (rework), and feedback loops.
Simple flowchart for making a tea is shown below:

Tea making Flowchart

7. Explain what is an FMEA

Failure mode and effects analysis (FMEA) tries to identify all possible potential failures
of a product or process, prioritize them according to their risk, and set in motion action to
eliminate or reduce the probability of their occurrence. FMEA just tries to identify all the
possible types (modes) of failures that could happen to a product or a process before they
happen. FMEA tells the organization where its resources should be applied, and this is
very important because all possible failures are not equal and the organization should
always deploy its resources to correct the problems that are most critical.
Types of FMEA's

System - focuses on global system functions

Design - focuses on components and subsystems
Process - focuses on manufacturing and assembly processes
Service - focuses on service functions
Software - focuses on software functions

Advantages of FMEA:
Reduced costs (materials, re-work, late change, recalls etc.)
Fault / accident prevention
Customer satisfaction
Enhances teamwork, understanding and cross-functional working relationships
Identification of critical areas of the system (Root Cause Analysis)
Exchange of ideas and knowledge

8. Provide an overview of the Toyota practical problem solving process

Toyotas Practical Problem-Solving Process is a methodology composed by eight
different steps that aim at achieving a total quality approach by implementing continuous
improvement
The 8 steps of the Toyota Business Process are:
1. Clarify the problem

Clarify the problem includes alignment to the Ultimate Goal or Purpose and to identify
the Ideal situation, current situation and the gap

2. Breakdown the problem

Breakdown the problem requires breakdown into manageable pieces using the 4Ws and
finding the Prioritized Problem, Process, and Point of Cause.
3. Set a target
Set a Target is to the Point of Cause and Determine How much and By when.
4. Analyze the root cause
Analyze Root Cause is to brainstorm multiple Potential Causes by asking WHY and to
determine Root Cause by going to see the process.
5. Develop countermeasures
Develop Countermeasures is to brainstorm countermeasures, narrow using criteria,
develop a detailed action plan, and gain consensus.
6. See countermeasure
Through means to share status of plan by reporting, informing and consulting and build
consensus, never give up, think and act persistently
7. Evaluate both results and process
Determine if the target was achieved and evaluate 3 viewpoints, and look at process and
results
8. Standardize successful processes
Standardize Successful practices, share results and start the next round of kaizen

9. Explain a total quality decision making process

Decision making is the process of selecting one course of action from among two or more
alternatives. Decision making is a critical task in a total quality setting. The discipline of
decision analysis provides the process and tools necessary for making quality
decisions. The decision-making process is a logically sequenced series of activities
through which decisions are made.

Decision Making Model

1) Identify or anticipate the situation:

a. Identify the problem or look for opportunities which can be worthwhile
b. Identify whether it will make difference
c. How much important it is to solve the problem
2) Gather the facts:
a. What is relevant and what is not relevant to the decision?
b. What do you need to know before you can make a decision
3) Consider Alternatives:
a. List all of the various alternatives available
b. Evaluate each alternative in light of the facts
4) Choose the Best Alternative, Implement, Monitor, and Adjust:
a. Select the best alternative and implement it.
b. After implementing, monitor the progress.
c. Adjust the requirements accordingly.

10. Explain why quality tools are important

Quality tools are important as they help us to improve the current processes, services
and products. Quality tools like the Pareto charts, cause-and-effect diagram, check
sheets, histograms, control charts, stratification, FMEA, flowcharts, five-S, surveys,
and design of experiments are used to eliminate waste and reduce errors, defects, and
injuries. It helps us to separate important from the trivial, to help identify and isolate
the causes of problems, for charting inputs, functions, and outflows of a process in
such a way that all the available information makes sense and can be seen together as
a whole which wouldnt be possible without charts. Quality tools help to achieve all
of the following:

Increase productivity
Lower scrap and rework costs
Improve product reliability
Decrease time-to-market cycles
Decrease customer service problems
Increase competitive advantage

EXECUTIVE SUMMARIES
1. My first job taught me that no detail is too small, not even the size
of the hole in a shampoo bottle.
In this article, Meg Whitman CEO at HP briefly describes her experience being
a graduate student and a working professional. After her graduation from
business school she was all set to enter a professional life, she bought new
briefcase and professional clothes. She started thinking of hypothetical
business plans and read case studies to gain more knowledge of professional
life. She started as a marketing manager at Proctor & Gamble. As she joined,
she was assigned a designing task which did not match her academic
background. However, her thorough research helps her crack first assignment
of her professional life learning lots of new things. She mentions though her
first lesson in marketing as, it is very essential that a marketing personnel
should thoroughly understand the needs, desires and the things that most of
customers dislike. Being a marketing manager, listening to customer is very
vital, it is saying that customer defines your product. Active listening
strengthens the relationships between customer and businesses or brand.
Supervisors should carefully listen to each and every employee as developing
a product is collective effort and it requires lots of different perspectives
which a single person cannot define. Inspired from her first lesson as a
marketing manager at P&G, she takes input from her employees, partners
and customers at HP to make challenging business decisions. The success
and failure of any business depends on analysis done on inputs from various

people. To sum-up, it is truly said that customer satisfaction is the only key
for long term survival of businesses.
2. Summer Jobs Are Your First Shot at the Grown-Up World. Soak Up
as Much as You Can
Adena Friedman, President at NASDAQ, describes her journey from summer
internship at Cool Heat through becoming CEO of Nasdaq. She was hired as a
bookkeeper at Cool Heat, while she was still in college. First job in ones life
teaches him or her most important lessons of life such as punctuality, how to
deal with real world situation, how the work is done and many more things.
Later on she worked for U.S senator Ben Cardin, it was wonderful experience
walking through most powerful buildings of US. However, she focused on
getting work done and always asking for more work from the staff. Though it
was annoying to staff at times but their generosity in replies to her taught her
the most important lesson of politeness. She describes internship as the
opportunity where you can develop yourself in particular area with
appropriate skills, you can make your colleagues and supervisor believe that
you are ready to accept bigger responsibilities of the organization. Internships
are the gateway to fulltime opportunities. After her MBA, she joined as an
intern in NASDAQ. Gradually she progressed to become President of Nasdaq
with all her dedication towards work. Throughout the years she has observed
the bright interns at NASDAQ, she recommends the four most important
qualities that every intern should adopt:
1. Intellectual curiosity:
Interns can stand out from the rest by showing enthusiasm to learn
something from this valuable opportunity. Also there curiosity in business can
differentiate them from others.
2. Eagerness to accept challenges:
Apart from meaningful projects, there are always some entry level jobs or
other assignments which do not match the field of education, however
interns should always show eagerness to complete those task and learn some
new skills from them.
3. Respect for Hierarchy:
Asking lots of questions is a good sign, however sitting in front of CEO and
asking questions to him or her shows your lack of understanding towards
hierarchy. Interns should ask questions regarding business to their immediate
supervisors understanding their responsibilities and avaibility of time.
4. Friendliness:
Team work is most important feature of organization. Interns should behave
in a way which can help increase their contacts with professional people,
which can be beneficial at start of their career. In the essence, apart from
smartness, communication skills are equally important.
To wrap up, she mentions that at NASDAQ apart from knowledge and skills,
interns are taught how to behave in front of senior management. Interns are
tested giving them measureable amount of responsibility. Interns possessing

all of the above qualities are granted full time opportunities at NASDAQ. Thus
internships are gateway to full time opportunities if performed well.
3. How Winning This Contest Changed My Life
Oprah Gail Winfrey winner of Presidential Medal of Freedom is an AfricanAmerican entrepreneur, talk show host, actress, producer and philanthropist.
She is well known in US and entire world for The Oprah Winfrey talk show.
In this article she mentions the opportunity and achievement that changed
her life from being a poor girl from a struggling family to become a successful
individual. It started in summer of 1971, when she used to work as a baby
sitter for 50 cents an hour. During that time local radio station in Nashville
sponsored a contest named Miss Fire Prevention .This contest is all about
voice if the contestants. Surprisingly she won the contest and was called at
the studio to claim the prize. Apart from materialistic prizes such as branded
digital watch and digital clock radio, the best gift she received was
broadcasting job at the radio station. Local DJ and one another person were
very impressed with her voice. They were amazed by such a voice at the age
of 17.To sum up, each and every individual have some breakthroughs which
turned their life in a positive way. Also there are some incidents which creates
negative impact in individuals life.