ISO 9000 Implementation (ECCH Case-

Study)
Can System Improvement Lower Role
Stress???
Prepared By:
SLG - 7
Sarat Gopinath (2010106)
Sarika Sinha (2010107)
Saurabh Prabhu Dessai (2010108)
Servesh Jasra ((2010109)
Shambhavi Verenkar (2010110)
Shivangi Pathak (2010111)
Snehil Prashant (2010112)
 Introduction to ISO 9000

 The ISO 9000 family of standards relate to quality management systems

and are designed to help organizations ensure they meet the needs of
customers and other stakeholders. The standards are published by ISO,
the International Organization for Standardization and available
through National standards bodies.

 ISO 9000 deals with the fundamentals of quality management systems,

on which the family of standards is based. 
 Corbett et al  showed that certified organizations achieved
superior return on assets  compared to otherwise similar organizations
without certification.
 Introduction to ISO 9000 contd.
 The quality policy is a formal statement from the management which is understood
and followed at all levels and by all employees.
 Decisions about the quality system are made based on recorded data and the system
is regularly audited and evaluated for conformance and effectiveness.
 Records should show how and where raw materials and products were processed, to
allow products and problems to be traced to the source.
 The business needs to determine customer requirements and create systems for
communicating with customers about product information, inquiries, contracts,
orders, feedback and complaints.
 When developing new products, the business needs to plan the stages of
development, with appropriate testing at each stage. It must test and document
whether the product meets design requirements, regulatory requirements and user
needs.
 The business needs to regularly review performance through internal audits and
meetings. Determine whether the quality system is working and what improvements
can be made. It must deal with past problems and potential problems. It must keep
records of these activities and the resulting decisions, and monitor their
effectiveness. It needs a documented procedure for internal audits..
 Introduction of Public Sector Units (PSU) in
India

Problems faced by India after independence

 Predominantly an agrarian economy with a weak industrial base
 High inequalities in income
 low levels of employment
 regional imbalances in economic development
 lack of trained manpower
 inadequate investments and infrastructure facilities

Development of Public Sector as an instrument for self-reliant

economic growth
 Indian PSUs

Railways,
The Posts and Telegraphs,
The Port Trusts,
The Ordinance Factories,
All India Radio
Banks
 Indian PSU
Pre-liberalization scenario

No competition
 Monopoly
 All PSUs were operating in protected Indian market
 No competition from national as well as international players
Cost plus working model
 Pricing strategy based on a fixed percentage of profit
 No incentive to reduce the cost of production
Seniority based promotions
 Instead of Performance linked incentives promotions were
based on the age and no. of years one has worked in the
organization
 Performance appraisal done in form of annual confidential
reports , dependent on senior employees
Absolute job security
 No layoff policies
 Reduce motivation level among employees
 No incentive to perform with excellence
High concern for compliance to the regulating authority
Political interference
Excessive government control
Corruption and nepotism
Multiple conflicting demands
Poor quality of products and low efficiency
Customer dissatisfaction
Thank you