03/02/17

Quality Policy, Standards,

and Systems
By Prof. Jerome T. Alvarez

What’s in a Name?
ISO is derived from the Greek “isos”, meaning equal.

Quality Policy
Quality Standard in Government
We, the employees of Global Brands Company, Inc., commit to be the supplier of choice in
the construction chemicals industry. Consistent with this commitment, we will implement and maintain a
documented ISO 9000 - based Quality Management System to:

• partner with our suppliers so that only qualified inputs and raw materials are used in our products
and services;
• continually improve our operation so that only value-adding processes are performed into
our products and services; and
• develop and sustain our capability to meet our customers’ product
specifications and service expectations.

We will be guided by this policy to:

• differentiate our products and services from the competition; and,
• continuously meet and improve on our management goals and objectives.

All these we commit as policy and be the supplier of choice in the construction chemicals industry.

Standard SpecificaOon
•  the document that prescribes the requirements
•  Can be wriMen set of technical, dimensional,
or performance requirements. with which the product or service has to
conform. (ISO)
•  Can be an accepted process or procedure.
•  Should include drawings or other documents that
•  InternaOonal Standards give world-class indicate the means and criteria used to check
specificaOons for products, services and
conformity.
systems, to ensure quality, safety and
efficiency. They are instrumental in •  “Document as you do, Do as you are
facilitaOng internaOonal trade. documented.”

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•  ISO is an independent, non-governmental internaOonal organizaOon with a •  What are the benefits of ISO InternaOonal Standards?
membership of 163 naOonal standards bodies. –  ISO InternaOonal Standards ensure that products and services
are safe, reliable and of good quality.
•  Through its members, it brings together experts to share knowledge and develop –  For business, they are strategic tools that reduce costs by
voluntary, consensus-based, market relevant InternaOonal Standards that support minimizing waste and errors and increasing producOvity.
innovaOon and provide soluOons to global challenges. –  They help companies to access new markets, level the playing
field for developing countries and facilitate free and fair global
•  Established in In 1946 when delegates from 25 countries met at the InsOtute of trade.
Civil Engineers in London and decided to create a new internaOonal organizaOon •  How does ISO develop standards?
‘to facilitate the internaOonal coordinaOon and unificaOon of industrial standards’.
–  Standards are developed by the people that need them,
through a consensus process.
•  On 23 February 1947 the new organizaOon, ISO, officially began operaOons. –  Experts from all over the world develop the standards that are
required by their sector. This means they reflect a wealth of
•  ISO’s Central Secretariat is located in Geneva, Switzerland. Learn more: internaOonal experience and knowledge.
hMp://www.iso.org

Popular Quality Standards and

Systems
ISO Non-ISO
•  ISO 9000 – Quality Management •  Six Sigma
•  ISO 14000 – Environmental Management •  HACCP – Hazard Analysis CriOcal Control
•  ISO has published more than 21000 •  ISO/TS 16949 – AutomoOve Standards Point

InternaOonal Standards and related • 

• 
ISO 22000 – Food Safety Management
ISO 45001 – OccupaOonal Health and Safety
•  OHSAS - OccupaOonal Health and Safety
Advisory Services
documents, covering almost every industry, • 
• 
ISO 27001 – InformaOon Security
ISO 26000 – Social Responsibility
•  OHSMS – OccupaOonal Health and Safety
Management System
from technology, to food safety, to agriculture •  ISO 50001 – Energy Management •  JCI – Joint Commission InternaOonal
•  ISO 3166 – Country Codes
and healthcare. •  ISO 4217 – Currency Codes
•  ISO 639 – Language Codes
•  ISO 8601 – Date and Time format
•  ISO 20121 – Sustainable events
•  ISO 13485 – Medical Devices
•  ISO 31000 – Risk Management
•  ISO 37001 – AnO-Bribery Management
System

ISO 9000 ISO 9001:2015

•  The ISO 9000 family of quality management systems standards is •  Sets out the criteria for a quality management
designed to help organizaOons ensure that they meet the needs of
customers and other stakeholders while meeOng statutory and system and is the only standard in the family that
regulatory requirements related to a product or program. can be cerOfied to (although this is not a
•  7 Quality Management Principles: requirement).
–  Customer Focus
–  Leadership •  It can be used by any organizaOon, large or small,
–  Involvement of People regardless of its field of acOvity. In fact, there are
–  Process Approach over one million companies and organizaOons in
–  System Approach to Management
–  ConOnual Improvement
over 170 countries cerOfied to ISO 9001.
–  Factual Approach to Decision Making •  Learn more:
–  Mutually Beneficial Supplier RelaOonships
Read more: h4p://www.iso.org/iso/pub100080.pdf hMp://www.iso.org/iso/iso_9001.pptx

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ISO 9001:2015 ISO 14000

•  ISO 9001:2015 does not require any documented
•  The ISO 14000 family of standards provides pracOcal tools for
procedures, and there are only three pieces of companies and organizaOons of all kinds looking to manage their
required documented informaOon that must be environmental responsibiliOes.
“maintained”: •  ISO 14001:2015 and its supporOng standards such as ISO
–  the scope of the quality system 14006:2011 focus on environmental systems to achieve this.
–  your quality policy
•  The other standards in the family focus on specific approaches such
–  your quality objecOves as audits, communicaOons, labelling and life cycle analysis, as well
as environmental challenges such as climate change.
•  “The organizaOon shall maintain documented
informaOon to the extent necessary to support •  Download ISO PresentaOon:
the operaOon of processes” hMp://www.iso.org/iso/iso_14001final.pptx

ISO 22000 ISO 27001

•  The ISO 22000 family of InternaOonal Standards addresses food safety •  The ISO 27000 family of standards helps organizaOons keep informaOon
management. assets secure.

•  ISO’s food safety management standards help organizaOons idenOfy and •  Using this family of standards will help your organizaOon manage the
control food safety hazards. As many of today's food products repeatedly security of assets such as financial informaOon, intellectual property,
cross naOonal boundaries, InternaOonal Standards are needed to ensure employee details or informaOon entrusted to you by third parOes.
the safety of the global food supply chain.
•  ISO/IEC 27001 is the best-known standard in the family providing
•  ISO 22000, Food safety management systems -- Requirements for any requirements for an informaOon security management system (ISMS) - a
organizaOon in the food chain is under revision, with the dram version systemaOc approach to managing sensiOve company informaOon so that it
available for purchase from early 2017. The final updated version is remains secure. It includes people, processes and IT systems by applying a
expected late 2018. risk management process.

•  Learn more: hMps://www.iso.org/obp/ui/#iso:std:iso:22000:ed-1:v1:en •  Learn More:
hMps://www.iso.org/obp/ui/#iso:std:iso-iec:27001:ed-2:v1:en

ISO 45001 ISO 45001

•  OccupaOonal health and safety management
systems
•  Provides a framework to improve employee
safety, reduce workplace risks and create
beMer, safer working condiOons.

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ISO/TS 16949 Six Sigma

•  ISO/TS 16949:2009, in conjuncOon with ISO 9001:2008, defines the •  Started at Motorola (mid-1980s) by Bill Smith à
quality management system requirements for the design and
development, producOon and, when relevant, installaOon and General Electric (mid-1990s)
service of automoOve-related products.
•  A business improvement approach that seeks to
•  ISO/TS 16949:2009 is applicable to sites of the organizaOon where find and eliminate causes of defects and errors in
customer-specified parts, for producOon and/or service, are manufacturing and service processes by focusing
manufactured.
on outputs that are criOcal to customers and a
•  ISO/TS 16949:2009 can be applied throughout the automoOve clear financial return for the organizaOon.
supply chain.
•  The term six sigma is based on a staOsOcal
•  Learn more: measure that equates to 3.4 or fewer errors or
hMps://www.iso.org/obp/ui/#iso:std:iso:ts:16949:ed-3:v1:en defects per million opportuniOes (dpmo).

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Differences Between Six Sigma and TQM

•  TQM is based largely on worker empowerment and teams; Six
Sigma is owned by business leader champions.
•  TQM acOviOes generally occur within a funcOon, process, or
individual workplace; Six Sigma projects are truly cross-
funcOonal.
•  TQM training is generally limited to simple improvement tools
and concepts; Six Sigma focuses on a more rigorous and
advanced set of staOsOcal methods and DMAIC methodology.
•  TQM is focused on improvement with liMle financial
accountability; Six Sigma requires a verifiable return on
investment and focus on the boMom line.

StaOsOcal Basis of 3.4 DPMO

Example: CalculaOng the Sigma Level

A k-sigma quality level saOsfies the equaOon: k × process standard deviaOon = tolerance
range/2
Here, k × σ = 12σ/2; thus, k = 6

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DPMO and Sigma Levels Understanding the Sigma

If your yield is:

Your DPMO is: Your Sigma is:
Differences
Sigma Area Spelling Money Time Distance

Floor space of a 1.5 misspelled $2.7 million

30.9% 690,000 1.0 3 1/2 months Coast-to-

3σ small hardware words per page indebtedness per $1
per century coast trip
store in a book billion in assets
45 minutes
62.9% 308,000 2.0
Floor space of a 1 misspelled $63,000 indebtedness of freeway
2 1/2 days per

4σ typical living word per 30 per $1 billion in driving (in
century
room pages in a book assets any
93.3 66,800 3.0 direcOon)
Size of the 1 misspelled $570 indebtedness A trip to
30 minutes per

5σ boMom of your word in a set of per $1 billion in the local
99.4 6,210 4.0 telephone encyclopedias assets
century
gas staOon
1 misspelled
4 steps in
99.98 320 5.0
6σ
Size of a typical word in all of the $2 indebtedness per
6 seconds per
any
diamond books contained $1 billion assets century
direcOon

in a small library
99.9997 3.4 6.0
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Understanding the Sigma

Difference
The Components of Six Sigma:
• • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •
• • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •
• • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •

•  People Power
• • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •
• • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •
• • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •
• • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •
• • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •
• • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •
• • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •

•  Process Power
• • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •
• • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •
• • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •
• • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •
• • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •
• • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •
• • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •
• • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •
• • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •
• • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •
• • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •
• • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •
• • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •
• • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •
• • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •
• • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •
• • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •
• • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •
• • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •
• • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •
• • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •
• • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •
• • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •
• • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •
• • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •
• • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •
• • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •
• • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •
• • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •
• • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •
• • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •
• • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •
• • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •

Suppose a process produced 294,118 units of product.

4σ Capability: Defect Dots = 1849
6σ Capability: Defect Dots = 1

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6 Sigma - People Power:

The Belts Six Sigma Teams
•  Champions: Senior-level managers who promote and lead the deployment
of Six Sigma in a significant area of the business.
ExecuOve Leader
•  Master Black Belts: Full-Ome Six Sigma experts who are responsible for Six
Sigma strategy, training, mentoring, deployment, and results.
Champion/Sponsor •  Black Belts: Fully-trained Six Sigma experts with extensive technical
training who perform much of the technical analysis required in Six Sigma
projects, usually on a full-Ome basis.
Master Black Belt •  Green Belts: FuncOonal employees who are trained in introductory Six
Sigma tools and methodology and work on projects on a part-Ome basis,
assisOng Black Belts while developing their own knowledge and experOse.
Black Belt •  Team Members: Individuals from various funcOonal areas who support
specific projects.

Green Belt Green Belt Green Belt

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6 Sigma - Process Power:

DMAIC—Five Step Process DMAIC Tools and Techniques

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