ISO 9000 - PowerPoint PPT Presentation

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ISO 9000

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ISO 9000 International Organization for Standardization Internationally accepted guidelines for quality management and standards Cost of quality = 20 - 25 percent of ... – PowerPoint PPT presentation

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Title: ISO 9000


1
ISO 9000
  • International Organization for Standardization
  • Internationally accepted guidelines for quality
    management and standards
  • Cost of quality 20 - 25 percent of sales

2
Quality and Strategic Cost Management
  • Quality and profitability are related
  • Premium on quality leads to larger market share
  • Premium on quality leads to higher ROI

3
Elements of TQM
  • Continuous improvement
  • Customer focus
  • Employee involvement

4
IMAs TQM Process
  • Year One
  • Quality council and staff
  • Executive quality training
  • Quality audits
  • Gap analysis
  • Strategic quality improvement plans
  • Year Two
  • Employee quality training
  • Quality teams
  • Establish measurement system and goals
  • Year Three
  • Revise compensation system
  • Launch external initiatives (value chain)
  • Review and revise

5
Other Quality Thoughts
  • Poor quality is disastrous for service industries
  • Increased quality increased productivity
  • True management accountants must increase their
    focus on quality

6
Ansari MMQC
  • Quality costs costs incurred to ensure
    products/services meet customers expectations
  • Features
  • Performance

7
MMQC
  • Strategic Implications of Quality Cost System
  • Supports quality as a strategic adv.
  • Provides the total cost of quality to a product
  • Assists in avoiding non-productive time

8
MMQC
  • Types of quality costs
  • Prevention
  • Appraisal
  • Internal failure
  • External failure

9
MMQC
  • Quality Management System
  • Understand customer requirements
  • Establish quality goals
  • Set work processes (P)
  • Perform work monitor output (A I)
  • Deliver product monitor cust. satisf.(E)
  • Perform root cause analysis

10
MMQC
  • Quality Cost and Customer Satisfaction
  • Total firm spending
  • Spending by category
  • Amount of financial benefits
  • Focus on customer quality concerns
  • Elimination of root causes

11
MMQC
  • Value Index
  • Develop customer perf. rankings
  • Estimate quality costs for each element
  • Compute the value index
  • Cust. Perf. / Cost
  • Root cause analysis and fish bones

12
MMQC
  • Attribute Implications
  • Technical
  • Improved decision relevance
  • Process understanding
  • Behavioral
  • Focus on Customer Requirements
  • Improved quality attitudes
  • Better mgt. Visibilitybut watch out for
    padding
  • Cultural
  • Quality as a way of life
  • Quality as an ethical value
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