Professional Documents
Culture Documents
COM
THE
Time
IS
Now
ISO 9001:2015
For those who still prefer print journals, an annual print volume
of both journals will be available for purchase through the ASQ website.
FEATURES
16 Ready or Not 24 Under the Wire 32 No Joking Matter 38 For Best Results
The basics behind ISO Knowing the seven A recent study centered Combine quality function
9001:2015 and advice quality management on management deployment and design
for organizations principles that ISO systems standards thinking to make the
transitioning to the 9001:2015 is built raises questions on most of the product
revised standard. around will help the overall average development process.
your organization effect of standards
by Govind Ramu implement or on organizational by Patrícia Moura e Sá
transition to the performance.
revised standard.
by Pavel Castka and
by Mark Durivage Charles J. Corbett
INSIDE
January 2018
VOLUME 51 ● NUMBER 1 EXCLUSIVES
at qualityprogress.com
Back to Basics
The column translated into Spanish.
8 10 14 51
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Just nine months remain until the deadline to certify to the certification, the importance of finding the right registrar and
ISO 9001:2015 quality management standard, and much like consultant, and other tips for successful implementation.
the months leading up to the birth of a baby, it is a time rife Many are racing to the finish line with ISO 9001, but after
with worry, confusion, research, planning and probably some the dust clears, you may want to spend some time thinking
notable discomfort. After the certification deadline arrives in about “Why?” Are standards really a driving force in quality
mid-September, ISO 9001:2008 certificates will no longer be improvement? “No Joking Matter,” p. 32, details the results of
valid, and life begins anew. a study on management systems standards and their overall
In advance of the standard’s release, and leading up to impact on organizations’ performance.
today, QP has worked to provide information and resources to Finally, I mentioned ASQ’s many resources to help you
help ease the transition. This month, we help you with a final through your ISO 9001 transition journey. We made it easy
check on where you are in the process, and we provide you a for you to access them by listing them all in one place. Turn to
summary of the many valuable resources you can find avail- “The Clock Is Ticking,” pp. 22-23.
able from ASQ: online, in video and in print, and in person.
Perhaps you are well on your way or already certified to the
standard. If so, congratulations! For those who still have work
to do, read “Ready or Not,” p. 16. Author Govind Ramu’s mes-
sage is clear: Don’t delay another minute. Many certification
bodies won’t conduct transition audits after May, so the time
is now to get one scheduled so there is time to complete any
post-audit work.
“Under the Wire,” p. 24, details the seven quality man-
agement principles ISO 9001:2015 is built around and Seiche Sanders
also provides some useful tips on how to get prepared for Editor in Chief and Publisher
MUST READ
I really enjoyed the November
issue of QP. The history is quite
es”
m o ri
S
EM ORIE e noble. While W. Edwards Deming
HE M er M
N KS F
OR T
t o “ R e a d 4 - 4 5) : submitted only one paper, he definitely
TH A se .3
spon r 2017, pp ection.
supported the publication. I wrote a monograph
I n r e e s for him on psychology, and he told me to put it
emb t his
(Nov s, QP, for tories. , Doha, Qat
ar in Quality Progress piece by piece. My QP article,
k s
Th a n a m a z i n g u m a r S h a rm
a “Theory and Practice of Employee Recogni-
l y A r vi n d K tion” (December 1992), currently is read more
Re a l frequently than any other article I have authored.
Thanks for the good work!
Brooks Carder, Del Mar, CA
As manufacturing processes become Steel Ltd., a major Japanese steel manufacturer, has
been falsifying its quality data since at least 2007.
more automated through new
The scandal affects about 500 companies, including
technologies such as 3-D printing,
last month's question ê Boeing, General Motors and Ford.
artificial intelligence and robotics, Nissan and Subaru also have been in the spotlight
employees must learn new skills to recently for flawed vehicle inspections. For decades,
keep up with the changes. both automakers used unauthorized employees to
What automated technologies has conduct final safety checks at their Japanese factories.
your organization adopted? How What can these organizations do to recover from these
have they changed your role? What is serious scandals? What can other organizations do to
prevent something like this from happening to them?
your opinion of the changes?
Ethan Jerry Mings, Oakville, Ontario: Peter Verhoeff, Tilburg, Netherlands:
One approach is to better understand how What can organizations do to recover?
ethics are used in daily decision making Take the blame, be honest and open
throughout the organization. Often, ethics up in light of initiatives to improve their
Send us your take at editor@asq.org. and values are crafted, posted and forgot- way of working. What can they do to
ten. Instead, the decision-making checklist prevent serious scandals? Create a cul-
should incorporate an ethics element to ture of trust and openness, and ensure
ensure all decisions are sound. Decisions mechanisms are available to report any
without an ethics check that can be veri- misconduct.
fied through an audit can leave individuals,
teams and organizations exposed. David Knowlton, Jefferson, MA, says:
Change will happen when the bottom
Anish Shah, Minneapolis-St. Paul, writes: line continues to go down, not up. The
Perform root cause analysis and follow organization’s management will have
plan-do-check-act to possibly recover at to provide evidence of conformance to
a faster pace rather than be consumed their customers and potentially change
by the sudden downfall due to a bad their culture.
reputation.
My organization received
250 assembled electronics
components. Out of 125 sold
so far, two are defective.
How many of the remaining
125 components would I
have to test to have some
confidence that no defects
remain? Would I use a
hypergeometric sampling
table or ASQ Z1.4?
OUR RESPONSE
When I am asked a statisti- Based on binomial the probability of drawing For example, if the AQL =
cal question like this, I try probability, an observed a face card changes as the 0.25, the minimum required
to understand the situation failure rate of 2/125 = 0.016 cards are dealt. This affects sample size is 50 and the
by asking several questions, and the assumption that the odds that a particular acceptance criteria are A=0,
such as: the units sold are similar to hand (such as a straight) R=1. So, if you sample 50
++ How expensive are the the remaining units, there is will be a winning hand. Card units and find no defects,
components? about an 87% chance that counters give themselves you can conclude, with
++ If the components are at least one more defec- away if they systematically about 90% confidence, that
relatively inexpensive, does tive unit is in the remaining increase their bets as the the population defect rate
it make sense to reject the inventory. Releasing the stack of cards diminishes. is less than or equal to the
remainder of the lot? remaining inventory without You certainly may use AQL.
++ What is the impact to testing is not a good option. the American National The AQL values in the
customers if they receive a Hypergeometric sampling Standards Institute (ANSI) ANSI/ASQ Z1.4 table are
defective assembly? is inappropriate in this situ- and ASQ quality control given in percentages, so
++ Is the testing ation. You have a relatively standard Z1.4 to make a 0.25 is 0.25%, or 2.5 defects
non-destructive? small population, but you more-informed decision. per thousand. The ANSI/
++ How expensive and time don’t know how many The normal inspection table ASQ standard does not
consuming is the screening defects are in the remaining is based on about 90% con- guarantee or “give con-
test? inventory. fidence that the population fidence that no defects
Because you already have Compare this to a classic defect rate is at or below remain.” 1 It can only show
identified two failures, the application of hypergeomet- the acceptance quality that the defect rate in the
likelihood is high that there ric sampling used by card limit (AQL) if the number of population is less than or
are additional defective counters at a casino. They defects found in the sample equal to the acceptance
assemblies in your remaining know how many face cards is less than or equal to the level, as specified by the
inventory. are in a full deck and that acceptance level. AQL.
REFERENCE
1. American National Standards
Institute (ANSI) and ASQ, ANSI/
ASQ Z1.4 Sampling Procedures
and Tables for Inspection by
Attributes (2008).
M A N U FAC T U R I N G
The State of
Manufacturing
Big changes reshape the industry’s total real output. In 2009, the manufacturing
future skills requirements sector’s real output took a dive and was the lowest it had been
since 1997. Over the past three years, however, the real output
has been on the rise. In the third quarter of 2017, the industry’s
With the Great Recession in 2008, manufacturing took a big total real output had increased 17.7% since 2009, approaching
hit. Between 2008 and 2009, the U.S. manufacturing industry’s its all-time high of 19.9% at the end of 2007.⁴
total real output—the measurement of the value of the goods an
industry produces—dropped almost 21%. In the same timeframe, What about jobs in the future?
about 15% of manufacturing jobs were cut. While manufacturing activity, output and jobs trended
It’s been a long struggle over the past 10 years, but there's good upwards last year, there is still a concern about the long-term
news for quality professionals and the workforce of the future: future of manufacturing jobs in the United States. Recent
Manufacturing is making a comeback. years have seen a redefinition of the traditional manufacturing
job role due to automation. As processes become more pro-
2017 snapshot ductive, fewer workers are required to accomplish the same
In 2017, two major factors contributed to the manufacturing indus- amount of work.
try’s boost—a weaker U.S. dollar and a stronger U.S. economy. Things like robotics, 3-D printing and artificial intelligence
A weaker U.S. dollar makes it easier for companies to sell their have cut down considerably on the number of human work-
products abroad—products are cheaper, and cheaper products ers a manufacturer needs, and that has many people worried
mean more buyers. In 2017, the U.S. dollar was about 9% below the about the future of jobs.
most-traded currencies.¹ But according to “Jobs Lost, Jobs Gained: Workforce
On the other hand, the U.S. economy has the lowest unemploy- Transitions in a Time of Automation,” a December 2017 report
ment rate since 2009 at just 4.1% and has steadily added jobs over by business and economics research firm McKinsey Global
the past seven years.² A thriving economy and a steady rise in jobs Institute (MGI), all that worry might be unnecessary.
means people are more willing to spend their hard-earned money, “Today there is a growing concern about whether there
thus the demand for manufactured products increases domestically. will be enough jobs for workers, given potential automation.
Add these two factors together—a weaker dollar and a stronger History would suggest that such fears may be unfounded:
economy—and the result is more manufacturing jobs. Last year, Over time, labor markets adjust to changes in demand for
American factories added jobs faster than in the past three years. workers from technological disruptions, although at times with
As of December 2017, 138,000 manufacturing jobs were added in depressed real wages,” the report said.⁵
the United States, a sharp contrast to the 34,000 jobs lost in 2016 Regardless, automation will have a real impact on the job
and the meager 62,000 jobs added in 2015.³ market. The report goes on to say that about one-third of
Another good indicator of the recovery of manufacturing is employee activities in about 60% of occupations have the
Rajeev Chadha
current position education
EDITOR’S NOTE: To mark the 50th anniversary of the debut of Quality Progress in January
1968, each month this year, editors will highlight a different element of the magazine
throughout its history. This month, we bring back a couple brief articles included in the
magazine’s news digest—originally titled “News You Might Need”—from January 1968.
Drink First—Park Later, Change will cost millions for these “The second is the duration of
companies—not to mention the cost of 9,192,631,770 periods of radiation cor-
Standardization Is Great
removing jammed rings from parking responding to the transition between the
meters once the new rings appear. two hyperfine levels of the fundamental
DETROIT—Elmer Ploof has problems In the meantime, Elmer Ploof is open state of the atom of cesium 133.”
by the bushel basket. He’s in charge of to suggestions. Two important advantages of the
parking meter collections here. Accord- atomic definition:
ing to the STANDARDS INSTITUTE It can be generated by a suitable
REPORTER, Elmer is not happy about Conference Adopts Atomic clock with sufficient precision (+/-1 part
overflowing bushel baskets of pull-rings Second as International in a hundred billion or better) to meet
from soft drink and beer cans sitting in Unit of Time the most exacting demands of current
the city treasury safe. metrology, and
Since people found rings do nicely at PARIS—The 13th General Conference It is available to anyone who has
the curb if nickels are scarce, woes have on Weights and Measures adopted a new access to or who can build an atomic
been mounting. Chicago reports a del- international unit of time, the second, clock controlled by the specified cesium
uge of about 70,000 rings a month. Ideas during its last meeting here. Agreeing to radiation, and one can compare other
clicking through your mind? Unless replace the existing definition based on high-precision clocks directly with such
you have lots of old cans in the house, the earth’s orbital motion around the sun a standard in a relatively short time (an
be aware that can companies intend to by an “atomic definition,” the Conference hour or so as against years with the
change rings. decided that: astronomical standard).
DECISION MAKING
Shades
testing must be documented before
a lot may be shipped. But on Friday
evening at 6 p.m., when everyone
has left for the day, you find yourself
Of Gray
standing in front of an impatient UPS
employee with a pallet of product
ready to be shipped and a lot release
record missing a date next to the
technician's signature.
Per your organization’s procedure,
this shipment should not leave your
Know the importance of analyzing facility. Per your own common sense,
everyone’s bottom line it seems ridiculous to send the UPS
employee away empty-handed and
by Denise Wrestler let the product sit in the warehouse
until Monday morning when the tech-
nician is back in the office to correct
“You can do whatever you want as long as it’s docu- his or her error.
mented and justified—and legal.” I live by this phrase, On the one hand, model QA
mostly because it’s my stock response to the age-old employees should follow the rules
question, “Are we allowed to do 'such and such'?” But 100% of the time. After all, it’s not
also because I truly believe in what it stands for. your fault the technician forgot to
As quality assurance (QA) professionals, we spend write the date. On the other hand, this
a lot of time making critical decisions that are black shipment may be what saves your
or white, yes or no, true or false, and pass or fail. But organization from losing an account
sometimes we’re confronted with decisions that fall because of another late delivery.
somewhere in the gray area between the right and How hard would it be to document
wrong answer. a minor deviation to your procedure?
In most situations, answering a question is as sim- How upset would the sales team
ple as finding the answer in a procedure or guidance be to learn something as minor as
document. For some of the more particular situations, a missing date was the reason the
however, interpreting vaguely worded regulations may product wasn’t shipped on time?
be required. What are the repercussions of your
No matter how a situation or question is handled, it is decision either way?
the responsibility of every QA professional to analyze the For larger, complex projects with
risk in the decision that is made, ensure that stakeholders many moving parts, risk analysis
involved are considered in the decision, and ensure that tools, which could require substantial
the decision is followed through. time and resources, may be used.
Failure mode and effects analysis
So many parts, so many tools (FMEA) is common in most industries
No matter how large or small the decision, risk analysis and forces an organization to look
always should be involved. For small, quick decisions, the at failure modes and their causes
possible effects of each decision should be considered. and effects, and to rank each failure
Take, for example, a typographical error on a lot- based on its severity, likelihood of
release record. Your procedure clearly states that a occurrence and likelihood of detec-
technician's signature and date verifying final lot release tion. FMEA is a great tool; however,
Major changes
ISO 9001:2015 introduces the following major changes:
High-level structure. The International Organization
for Standardization (ISO) created Annex SL to provide
a uniform, high-level structure, identical core text, and
common terms and definitions for all management system
standards (such as ISO 9001, ISO 14001 and ISO 37001).2
This uniform structure helps organizations that imple-
ment multiple management systems easily address the
common requirements across all management systems.
However, it’s not just about finding the same clause
reference across all management systems. Having com-
mon core text, terms and definitions makes integrating
management systems easier and reduces redundancy in
documentation, infrastructure and resources.
If you are transitioning only one management system,
such as ISO 9001 or ISO 14001, this high-level structure is
TA B L E 1
Organizational issues
External issues Internal issues
Economic situation (growth) in certain regions is not Core competency limiting organization’s ability to
conducive to grow business. make technology breakthrough.
Exchange rates are highly fluctuating. Product and service performance.
informational only and no action is required. Orga- been a perception that it is a standard for the manu-
nizations that decide to keep their existing quality facturing industry.
manuals may prefer to align their manuals with the The current revision ensures that requirements are
new high-level structure, although it is not required. applicable to products and services. Control of moni-
ISO 9001:2015—Annex provides the following guid- toring and measuring equipment, for example, is now
ance: “There is no requirement in this International referred to as monitoring and measuring resources.
Standard for its structure and Resources can be hardware or
terminology to be applied to the survey instruments.
An organization should
documented information of an Design and development are
evaluate its business needs
organization’s quality manage- applicable to products and ser-
and expectations, risks and
ment system.”3 vices. Similar to how a physical
opportunities to determine
Less emphasis on docu- product or software is designed,
the level and extent of docu-
mentation. The current revision services also can be designed.
mented information required
significantly reduces documen- Services output also can be
to effectively manage its
tation requirements. A quality verified and its performance
quality systems.
manual and mandatory doc- validated simulating a customer
umented procedures, for example, no longer are environment. Product nonconformance is physically
required. ISO 9001:2015 only requires organizations identified and quarantined for disposition. A service
to maintain documented information about the scope nonconformance may be electronically identified as
of the quality management system (QMS), the quality a transaction identification number and analyzed for
policy and the quality objectives, and information remedial measures.
deemed by the organization as necessary for the
effectiveness of the QMS. New requirements
That said, an organization should evaluate its busi- ISO 9001:2015 also introduces the following new
ness needs and expectations, risks and opportunities requirements:
to determine the level and extent of documented Context of the organization. Every organization,
information required to effectively manage its quality large or small, should plan for its future. This happens
systems. in several ways.
Improved applicability for services. Although ISO Large organizations formally conduct strategic
9001 is applicable to all industries, there always has planning annually using tools such as environmental
TA B L E 2
Training courses
Comprehensive classroom and web-based
courses get you trained on the revised standard:
++ “ISO 9001:2015—The Path Forward.”
++ “ISO 9001:2015 Comprehensive Transition Training:
Clause By Clause Concepts And Requirements.”
++ “ISO 9001:2015—Auditor Transition Training.”
++ “ISO 9001:2015 An Overview.”
++ “Documentation in ISO 9001 Training.”
++ “ISO 9001:2015 Requirements From A To Z.”
asq.org/training/catalog
Articles
Do you feel the need to read? Curl up with one of many arti-
cles on different aspects of the revision from the last several
years. Here's just a small sample:
++ “Keep Calm and Prepare for ISO 9001:2015.” Basic anal-
ysis of ISO 9001:2015 and what the changes mean, how to
meet the new requirements, and resources available.
qualityprogress.com
++ “Read, Set, Transition.” Effective ISO 9001:2015 transi-
tioning strategies. qualityprogress.com
++ “All Hands on Deck.” A template on what ISO 9001:2015 is,
why it changed, and how it affects your staff.
Ask the Standards
qualityprogress.com Experts blog
++ “The Influence of Human Factors on ISO 9001:2015 Com- Got a question? Ask the ASQ experts,
pliance.” Changes in the revision that focus more on the who have already weighed in on many
people within an organization. asq.org/pub/jqp ISO 9001:2015-related queries from those
transitioning to the new standard.
asqasktheexperts.com
22 QP January 2018 ❘ qualityprogress.com
Ticking
Time is running out. But ASQ’s got
you covered. Since the revision to the
international ISO 9001 standard was
published in 2015, ASQ has become
the central hub for information on key
developments of ISO 9001:2015 and
advice on transitioning to the revision.
Here are just some of those resources
and where you can find them.
Books
ASQ Quality Press has published several books related to
the revision. Here are a few favorites:
++ ISO 9001:2015 Explained, fourth edition.
++ ISO 9001:2015 Handbook for Small and Medium-Sized
Businesses, third edition.
++ ISO 9001:2015 Internal Audits Made Easy, fourth edition.
++ ISO Lesson Guide 2015, fourth edition.
++ The ISO 9001:2015 Implementation Handbook.
++ How to Audit ISO 9001:2015.
++ The Magic of ISO 9001: How to Make It Fully Materialize.
++ A Practical Field Guide for ISO 9001:2015.
asq.org/quality-press
Webcasts
On-demand presentations from experts on topics such as:
++ “ISO 9001:2015—Elevating Quality With Risk Based Thinking."
++ “Guidance on Conforming to ISO 9001:2015—
Advice and Examples From an Auditor.”
++ “ISO 9001:2015 for Small and Medium-Sized
Businesses.”
++ “Document Control System Compliance.”
asq.org/quality-resources/webcasts
Standards Central
A collection of ASQ resources and news about management systems
standards, including ISO 9001:2015, ISO 14001 and ISO 9000.
asq.org/quality-resources/standards
asq.org/knowledge-center/standards/standards-iso-9001-2015.html
ASQTV
30+ interviews with top experts on the revision to help you prepare.
Topic areas include the basics of the revision, key changes such as
risk-based thinking, the effect on industry and transition tips. Here
are a few specific topics:
The Standard ++ “Selecting an ISO 9001 Registrar and Consultant.”
Still neeed a copy? ISO 9001:2015: ++ “Transitioning: Advantages, Expected Investment and Advice.”
Quality management systems— ++ “Transitioning: Auditing Considerations.”
Requirements is available at: ++ “ISO 9001:2015—15 Things You Must Know Now.”
asq.org/quality-press/ ++ “ISO 9001:2015: Your Big Questions Answered.”
display-item?item=T1040 videos.asq.org/product-category/channel/quality-standards
Just the
Facts
Before transi-
tioning to ISO
9001:2015, first
take the time to
understand how
the standard is
structured around
seven quality man-
agement principles.
Allocate enough
time and resources
to properly plan
and set realistic
deadlines. Man-
agement must be
there to provide
adequate support,
including the
resources neces-
sary to meet the
project goals and
deadlines.
Don’t overlook
the importance of
finding the right
registrar early in
the process.
Certification Considerations
CONSIDER THESE POINTS TO COMPLY WITH EACH OF THE
10 CLAUSES CONTAINED IN ISO 9001:2015.
which indicates the employee grid listing supplier risk (low, status. Additionally, using
level of competence for each medium and high) and applying the specific, measurable,
job or function. more controls to high-risk achievable, relevant and time
Monitoring and measuring suppliers is an effective way to bound approach is a good way
resources (calibration) is best manage supplier and receiving to determine verification of
supported by a spreadsheet or inspection requirements. effectiveness requirements.
computer program that pro- 9. Performance evaluation: Although ISO 9001:2015
vides a visual calibration status. Performance evaluation should does not require a quality
Using a document change order include a comprehensive manual, I strongly suggest
(DCO) form and index is a great internal audit program using the creating one. The manual
way to manage document and process approach that audits by provides a good, high-level
engineering changes. The form the key processes identified in overview of the QMS and can
should include a checklist of Section 4—Planning. help employees understand
consideration and activities to A standardized agenda the processes and their
ensure changes will not have an and minutes for management interactions. Additionally, a
unintended negative impact on review are necessary to ensure quality manual is a great tool
products, services and the QMS. compliance with ISO 9001:2015. to provide customers and
8. Operation: One of the best I suggest adding more topics, potential customers during
practices is the integration of including an assessment of the audits. The quality manual
the work instruction in the batch context of the organization, also is a great place to include
record. This helps ensure the interested parties, and whether a compliance matrix. The
most recent work instruction there are any new risks and purpose of a compliance matrix
is available at the point of use opportunities. is to provide a table of the ISO
and the employees are using Using an action item log is a 9001:2015 requirements and
the documentation. Many great way to provide visibility where they are addressed.
organizations also use photos to actions assigned during ISO 9001:2015 also does not
in the work instructions to management review and require the appointment of a
clarify specific tasks, including prevents the action items from management representative.
inspections. Photos also are slipping away. Again, I strongly suggest
used to document quality alerts 10. Improvement: An issue appointing a designated
to make the operators and management log is a valuable individual to the role of
inspectors aware of previous tool to capture audit findings, management representative
quality issues. nonconformance reports, (usually a person from the
Maintaining a risk-based supplier corrective action quality function) so that
supplier program is a good requests and complaints. consistent messaging can be
way to focus the organization’s The log is most useful when maintained during certification,
limited resources where they due dates are assigned, and registration and supplier audits.
are needed most. Creating a color coded to indicate their —M.D.
Best practice is to include a discussion and assign ++ Clause 8.5—Product and service provision.
project responsibilities during regular management ++ Clause 8.6—Release of products and services.
meetings. If already certified, record the responsibili- Processes that require more customization need an
ties in the management review minutes or action item active, hands-on approach by the organization. These
log. processes must be understood and documented.
Another piece of advice when transitioning to Consultants who say, “This is the way it should be
ISO 9001:2015: Get buy-in from those who will be done” are not doing their job. I have seen many QMSs
affected. It is important to include the affected team that were implemented by consultants that were not
members in the implementation process. Share with fully embraced, resulting in a QMS that was literally
them the risks of not having the certification and the square peg in the round hole with less-than-favor-
the opportunities the organization may enjoy after able results. Even if the organization is not currently
becoming certified. certified with documented processes, there are still
Management also must fully support the certifi- processes and interactions in place that must be
cation process by being actively engaged, providing thoroughly understood.
resources necessary for a successful implementation An additional consideration is that, “One size does
or transition, and keeping the entire organization not fit all.” A QMS for an organization with 20 employ-
informed of the project’s status. As an auditor, it’s ees will probably not suffice for an organization with
easy to identify whether management is involved and 200 employees, just as a QMS for an organization
engaged. Just because they attend opening and clos- with 20 remote employees will probably not work for
ing meetings does not guarantee they are involved an organization with 20 employees at one facility.
and engaged. Organizations with multiple facilities also should
consider a common QMS. One advantage of this
Customization is critical is when corrections are made due to audits and
From my experience, purchasing an off-the-shelf customer complaints, for example. Corrections can
ISO 9001 system rarely works. Of course, in my be deployed to the entire organization, potentially
consulting practice, there are “canned” procedures. preventing the same issues at other facilities.
But procedures always must be modified to fit the
situation. Certain processes require less customiza- The right registrar
tion, including: Choosing the proper ISO registrar is also extremely
++ Clause 6.1—Risks and opportunities. important. Make sure the registrar is accredited by
++ Clause 7.1.5—Monitoring and measuring resources. a reputable third-party accreditation agency. For
++ Clause 7.2—Competence awareness and training. example, ANSI-ASQ National Accreditation Board is
++ Clause 7.4—Communication. the most widely recognized third-party accreditor for
++ Clause 7.5—Documented information. QMSs.1
++ Clause 8.7—Nonconforming outputs. I recently encountered my first organization that
++ Clause 9.1—Monitoring measurement analysis and used an unaccredited registrar for ISO 9001 cer-
evaluation. tification. While preparing for the audit, I noticed
++ Clause 9—Internal audit. the organization’s quality manual was last revised
++ Clause 9.3—Management review. in 2006, and the ISO certification was for ISO
++ Clause 10.2—Corrective action. 9001:2008. This was my first experience with a
Certain subsystems require more customization, “certification mill.” The way this unaccredited registrar
such as: worked was the organization had to send a check
++ Clause 7.1—Resource management. along with its annual internal audit, and magically, a
++ Clause 8.1—Operational planning and control. certificate would arrive a few days later.
++ Clause 8.2—Requirements for products and The registrar also should be investigated to ensure
services. it has the auditor expertise that aligns with the
++ Clause 8.3—Design and development of products organization’s products and services. For example, it
and services. would not be appropriate for a certification auditor
++ Clause 8.4—Externally provided processes, prod- with a customer service background to audit a man-
ucts and services. ufacturer of printed circuit boards. Have the registrar
Just the
Facts
A recent study—
centered on
management
systems stan-
dards—examined
three areas: the
diffusion and
adoption of the
standards, the
impacts of the
standards, as well
as the governance
of them.
Many questions
remain unan-
swered. More
input from the
management
systems standards
community, how-
ever, could open
the door for addi-
tional research
and insight.
TA B L E 1
Just the Organizations put considerable effort Among those, quality function deployment
Facts into developing innovative products and (QFD) and design thinking (DT) are partic-
services capable of delivering value to ularly relevant. Possible connections and
Quality function customers and users. Reducing devel- overlaps are explored between QFD and
deployment (QFD) opment costs and the risks of failure, and DT by looking at their core principles, main
and design think-
ing (DT) are used improving time-to-market performance are stages and associated tools.
to help organiza- key priorities.
tions understand
customer needs Acknowledging that customers don’t What is QFD?
when developing buy product or service features but rather QFD is a method used for translating
new products and
services. the functionalities and benefits associated customer requirements into appropriate
with them, organizations constantly look for technical requirements across each stage of
QFD trans-
forms customer methods and approaches to assist them in product development.1, 2 Everything starts
requirements understanding customer needs and prob- with the voice of the customer (VOC), and
into technical
requirements lems. The existence of problems calls for the product specifications are derived from cus-
for a product, creation of multidisciplinary teams and the tomer needs rather than the feelings of the
and DT combines
customer insights early incorporation of user feedback. organization’s technicians or marketers.
and proto- A wide range of methods and tools have The idea of emphasizing customers’ needs
typing to find
solutions to com- been developed to guide the design of new and wants as they are expressed prevents
plex problems. solutions with the purpose of making the the product development team from jumping
process as effective and efficient as possible. to conclusions about what customers are
House of quality efits that customers will derive from using a product
or service, are an outcome of this stage and provide
a high-level specification for the design of the new
product or service.
3. Implementation. When innovation moves from the
Importance weight
Competitive
Customer
analysis
Room 1
Whats
Room 3
Relationship matrix possible.
4. Prototype. Build basic prototypes of the most prom-
ising ideas.
5. Obtain feedback. Learn from users’ reactions to the
Room 6 prototypes.
Technical importance As shown in Figure 2, DT calls for divergent and con-
vergent thinking. Early in the process, divergent thinking
Room 7
is essential for generating many alternative responses,
Features planning including original and unexpected ideas. It requires mak-
ing unforeseen combinations, recognizing links among
remote associates and transforming information into
Room 8 unexpected forms.10 Creativity largely depends on this.
Target values
Yet, later in the process, it’s important to foster con-
vergent thinking, such as the application of conventional
TA B L E 1
QFD vs. DT
QFD DT
++ Concurrent engineering—some design activities ++ Problem formulation and solution go hand in hand.
View of the design can occur at the same time (parallel). ++ The process is iterative and continual refinement is
process ++ The process is iterative. pursued.
++ Human-centered design ethos.
++ Observational techniques and empathic design.
User-centered ++ Listens to customer needs early in the process. ++ Considers everyone who will be affected by the
design ++ Observes customers in their own environments. product or service, not only the customer or end
user.
++ Interdisciplinary project team works collaboratively.
Nature of the ++ Functional representation—design. ++ Members are expected to have different personality
project team ++ Users might be part of the team. types and backgrounds.
++ Users can be part of the engineering team and
Participation of are at least involved in determining require- ++ Users can be involved throughout the entire
users in the project ments (HoQ R1) and evaluating the project in design process or during certain phases, such as
team comparison to other competitors’ offerings determining requirements and testing.
(HoQ R5).
++ The user typically is the end user.
Focus ++ B2C and B2B projects. ++ Not much emphasis on B2B projects.
++ Except for the earlier stages of VOC collection
Problem-solving where methods are open and creative, the ++ The whole design process calls for creativity, as well
approach process calls for structured and rational as human intuition and emotion.
reasoning.
creative ideas in a short period of best described metaphorically as a The nature of the project team in
time. system of spaces rather than a pre- both methods is identical. It should
++ Prototypes. Prototypes facilitate defined series of orderly steps.”12 be diverse to incorporate a wide
communication by making ideas QFD and DT assume that the range of perspectives and improve
tangible and should be as simple design process is iterative, but DT the quality and consistency of
and inexpensive as possible at goes to the point of assuming that decisions. While QFD mentions the
early stages—just enough to problem formulation and solution importance of having cross-func-
obtain useful feedback. inform each other. Also, the idea of tional teams, DT potentially has a
successive refinement is clearer in more open view because it stresses
Comparing DT and QFD DT. the importance of involving peo-
Looking at the way each method Although QFD and DT are both ple with different skills, ways of
regards the design process, the level user-centered design approaches thinking and experiences (inde-
of user involvement, the nature of that value data gathered through pendent of them belonging to a
the project team and the embedded direct observation in close contact department, function or area). Thus,
problem-solving approach, Table 1 with users in their natural setting, DT DT advocates not only functional
(p. 41) summarizes some similarities ranks higher in this regard because it representation but, essentially,
and differences between the two incorporates empathic design. representation of different learning
approaches. Empathic design allows the styles.13
QFD and DT share a view of designer to identify with the chal- Significant differences exist in the
the design process that fights the lenges of the end-user. Though methods’ approaches to problem
traditional step-by-step, sequen- user involvement in testing occurs solving. QFD is considerably more
tial approach. QFD uses the idea in both methods, it is more explicit linear and well-structured. The
of concurrent engineering to call in DT. Similarly, user participation sequence of matrixes calls for a
attention to the importance of in value creation is more passive in logical reasoning often based on
developing some tasks in parallel to QFD (essentially contributing with deductive, causal-effect links. In
speed up the process and integrate opinions about product or service DT, however, the entire innovation
simultaneously the expertise of dif- concepts that were generated by process is deeply human because
ferent functions when making some others), whereas in DT, value is it relies on people's ability to be
decisions. According to author Tim co-created with users more actively intuitive, recognize patterns and
Brown, in DT, “the design process is taking part in the creativity process. construct ideas that have functional
TA B L E 2
DT = design thinking
QFD = quality function deployment
process, especially when interaction with users is critical, expertise and creativity of R&D teams.
whereas QFD is stronger at later stages after the product What can’t be neglected is the importance of putting
or service concept has been chosen and production and ideas to the test to understand how they can be converted
delivery processes must be designed to prepare full-scale into value, as perceived by those who use the products and
implementation. services that result from innovative processes.
QFD can benefit from the lessons given by DT where
REFERENCES
concept and prototype testing is concerned, integrating 1. John R. Hauser and Don Clausing, “The House of Quality,” Harvard
tools that call for user involvement at these critical stages. Business Review, Vol. 66, No. 3, 1988, pp. 63-73.
Innovation demands experimentation, and DT clearly is 2. Damian Rogers and Filippo A. Salustri, “A Quality Function
Deployment Method Pattern Language for Efficient Design,” paper
ahead in this regard. presented at the International Conference on Engineering Design,
Aug. 24-27, 2009.
A word of caution 3. Hauser and Clausing, “The House of Quality,” see reference 1.
4. Anne M. Smith, Moira Fischbacher and Francis A. Wilson, “New
Despite QFD and DT stressing the importance of listening Service Development: From Panoramas to Precision,” European
to users’ needs and expectations when developing new Management Journal, Vol. 35, No. 5, 2007, pp. 370-383.
products and services, it is important to acknowledge some 5. Ulla Johansson-Sköldberg, Jill Woodilla and Mehves Çetinkaya,
“Design Thinking: Past, Present and Possible Futures,” Creativity and
limitations of these approaches. Innovation Management, Vol. 22, No.2, 2013, pp. 121-146.
In fact, users often are inexperienced in imagining and 6. Tim Brown and Jocelyn Wyatt, “Design Thinking for Social
articulating possible innovation for new products and Innovation,” Stanford Social Innovation Review, Winter 2010, pp.
30-35.
services. Even if empathic design tries to overcome these 7. Sara L. Beckman and Michael Barry, “Innovation as a Learning
limitations, sometimes, radical innovations come from the Process: Embedding Design Thinking,” California Management
Review, Vol. 50, No. 1, 2007 pp. 25-56.
8. Tim Brown, Change by Design, HarperCollins
e-books, 2009.
Create the customer-centered culture of excellence. 9. Beckman and Barry, “Innovation as a
Win leadership challenges ignored by LSS, ISO and others. Learning Process: Embedding Design
Make visible the possible you cannot see. Thinking,” see reference 7.
10. Arthur Cropley, “In Praise of Convergent
Inspire, engage, delight and triumph with C3. Thinking,” Creativity Research Journal, Vol. 18,
No. 3, 2006, pp. 391-404.
11. Ibid.
• Manager of Quality/
Organizational
Excellence
• Quality Inspector
• Quality Technician
• Reliability Engineer
• Supplier Quality
Professional
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Innovation mperative
STANDARDS
Whereto After
ISO 9001:2015?
Moving beyond quality management to innovation management
by Peter Merrill
September 2018 is coming fast, require any new work and transition is quite straightforward.
and those who have not transi- That is far from true.
tioned yet to ISO 9001:2015 are To get real value from the new standard, you must link it to your
probably in a last-minute panic. business strategy, as well as the external and internal issues that
Unfortunately, a number of auditors create the context of the organization. The attendant risks are prior-
have given the false impression that itized, and a plan containing measurable objectives is developed to
the new ISO 9001 standard does not mitigate those risks.
FIGURE 1
Plan Do
6 8
Planning Operations
4 5 7
Context Leadership Support
Innovation
10 9
Improvement Performance
Act Check
IMS standard
Interestingly, these are also the first steps
in an innovation strategy, and the ISO Inno-
vation Management System (IMS) standard goes
much deeper into innovation strategy in Clause
5—Leadership.
For those organizations that have already transitioned to
ISO 9001:2015 and have found the true value of the new standard,
there’s good news: The new ISO 50501 Innovation Management is
due for publication at the end of this year, and its structure will fit Clause 4.2—Interested parties gets
perfectly with ISO 9001. you asking who will be your potential
So here is your opportunity to integrate innovation into your busi- customers for future innovative offer-
ness. The plan-do-check-act (PDCA) structure diagram for the IMS is ings. This, of course, relates closely to
shown in Figure 1. opportunities.
These strategic challenges—espe-
Clause 4—Context cially the marketplace challenges—give
Starting with Clause 4—Context, you probably conducted a quality you the fuel for your innovation engine.
management system (QMS) strengths, weaknesses, opportunities Which of your products are declining?
and threats (SWOT) analysis for ISO 9001, and you probably focused Which of your customers are going
on the weaknesses and threats to identify risks in your ISO 9001 quiet? Build your list of threats and
QMS. opportunities in preparation for clause
I’ve heard some people say that they didn’t know why the stan- 6, which—in the innovation stan-
dard mentioned opportunities in Clause 6—Planning. Well, here’s dard—we will reverse the title to call it
why: The opportunities—and also the threats—give you drivers for “opportunity and risk.”
innovation. See Figure 2. Good businesses look for opportunity
first, and then calculate the associated
risk.
FIGURE 2
Clause 5—Leadership
SWOT analysis Before moving to clause 6, however,
clause 5 addresses leadership. I’m
so glad that the term “management
Strengths Weaknesses responsibility” is gone and now replaced
4.1 Identify the
external and internal with the language of business. The inno-
issues relevant to the vation principles in ISO 50501 address
strategic direction the need for leaders who are coura-
of the organization. Opportunities Threats geous and look to the future. Leaders
will certainly be responsible for devel-
SWOT = strengths, weaknesses, opportunities and threats oping a culture of innovation. (More on
FIGURE 3
Innovation process
This is familiar territory for a quality
professional. You need a diverse
cross-functional team of people
familiar with the issue you are going
Concept
to address.
solution
ISO 50501 Clause 8.2—Managing
innovation initiatives gives you a
comprehensive checklist of what you
Opportunity Validation
should consider as you plan your
Innovation initiative.
process Clause 8.3 gives you the pro-
cess elements, and you will see it is
similar to the model I have used for
Working many years (see Figure 4). The main
Deployment
solution difference is that I see the innovation
process as a continual cycle, and not
a linear process that starts and stops.
looking for creativity, which is only one of the competences in innova- Similar to the PDCA model, right?
tion. Clause 7.5 provides considerable detail on competences needed.
The awareness and communication clauses are similar to ISO 9001, Clause 8.3.2—Opportunity
but with much more supporting information. Although ISO 9001 does The process starts in clause 8.3.2
not now require a manual, most organizations are continuing to use by identifying opportunities. If you
one, and this is where you can build in your innovation practices as in are choosing to work on a process
the documentation clause 7.8—especially given that many of them will innovation, you will probably start
be new to you. with a gemba walkabout to under-
stand what is and isn’t happening in
Clause 8—Operation the process. If it is a product you are
In Alice’s Adventures in Wonderland, when the white rabbit asked the trying to innovate, you will talk to the
king where to begin its journey, the king replied, “Begin at the begin- customer and ask questions such as,
ning and go on till you come to the end; then stop.” 1 “Where do you waste time?” “What
That is the way we tend to approach standards. I certainly encour- are the biggest hassles?” or “Which
age you to do that in your first read of the standard. When it comes to requirements are unclear or hard to
implementation, however, I suggest a different approach. meet?"
Take a moment to think about change management. Implementing You also should do some process or
innovation management is a major change. The model in Figure 3 is one product benchmarking and find out
I use often. It stresses the importance of initiating change by identifying what other people are doing in your
a burning platform and by a core team getting an early win. area of interest. You should collect a
That early win is going to come here in clause 8 using your innovation large volume of data and information,
process. This is the heart of your IMS. Yes—start drafting your strategy. which you analyze to arrive at a clear
Yes—start planning the culture change. But you will find out what inno- problem definition.
vation is really like right here in the process.
If you have created an ISO 9001:2015 quality manual, I suggest you Clause 8.3.3—Concept solution
create a new working draft “Quality and Innovation Management” This is where you take the knowledge
manual and consider creating a temporary clause 8.9 in the draft from clause 8.3.2 and use techniques
manual. Just call it, “Innovation Process.” ISO 50501 refers to innovation such as creative problem solving
initiatives in clauses 8.1 and 8.2. For the moment, you are going to have (often called ideation) to find concept
just one initiative while you prototype your innovation process. solutions. These are just ideas at this
Settle on a product that is fading or a process that is constantly point. This is where divergent thinking
creates radical new solutions. Traditional problem solving used in the of the IMS and the management
world of quality finds solutions within the status quo, repairing a broken review, both of which are quite simi-
step in a process or clarifying requirements. Creative problem solving lar to ISO 9001:2015.
finds an entirely new product or process.
Albert Einstein famously said, “No problem can be solved with the Clause 10—Improvement
same level of consciousness that created it.”2 This is where you step After a solution is delivered, there
out of the box. Find many alternatives, and collect and analyze data on is always learning to be gained. The
whether a solution is easy to copy, has high risk, has high cost or will impact may not be that anticipated,
take a long time to implement. and weaknesses and gaps should be
dealt with rapidly. This is where the
Clause 8.3.4—Validate concepts strength of system thinking in an ISO
Now you develop the “proof of concept” and prototype—either virtually management system strikes home.
or in reality—to find the weaknesses of a limited number of preferred The system forces you to take action.
solutions. The innovators’ maxim is “Fail early and fail fast,” and we do My aim here has been to introduce
this before we have incurred significant cost. Analyze the time, cost and you to the structure and thinking
risk data and test whether the solution can be copied. You may choose in ISO 50501 and show you the
to protect the IP you have created, and that was addressed back in opportunity to move beyond quality
clause 7. management to innovation man-
agement. As professed in ASQ’s
Clause 8.3.5—Working solutions Innovation Division, “Innovation is
“Ease of use” is the maxim here. Too often, developers try to add their quality for tomorrow.”
own pet ideas instead of going back to the user needs collected in
REFERENCES
clause 8.3.2. This is where prototyping validates the new service or 1. Lewis Carroll, Alice’s Adventures in
product and not just the concept. Wonderland, Macmillan Publishers
We solidify business partner relationships and mitigate risks. If a International Ltd., 1865.
2. Peter Merrill, Innovation Never Stops,
new offering has been developed for a specific customer, the trials and ASQ Quality Press, 2015.
tests with that customer will uncover areas of difficulty so they can be
removed. Clauses 8.3.3 to 8.3.5 in ISO 50501 will have a lot of align-
ment with clause 8.3 in ISO 9001:2015. I suggest you hold off trying to
mesh them immediately. Learn from this first innovation experience
and understand the process. The ISO 50501 process has a bigger scope
than clause 8.3 in ISO 9001:2015.
PROCESS CAPABILITY
The Birth of
Specifications by Lynne B. Hare
Unlike Sandro Botticelli’s God-given. But the origin is defi- the veneration and hesitancy to
depiction of the birth of Venus, nitely the ceiling tile. question.
specifications do not ride in from Why the confusion? Well, Ask around. Find someone
the sea on a half shell. No—they sometimes specifications have who has been in your organiza-
actually come from ceiling tiles. This been around so long that their tion a long time. This might take a
revelation may come as a shock to spanning of generations gives the while, but it can have its rewards.
many who think specifications are appearance of divine origin, hence In moments of candor, he or she
Conforming to specifications If you put too much milk in the pudding mix, it
won’t pud. A nut and a bolt won’t conjoin if their
mutual dimensions don’t permit. In many situa-
#3 tions, the establishment of specifications is costly,
requiring careful study and consumer research,
but it is almost always value-added. Performance
Measured key process indicator
#2
key.
#1 Third, and perhaps most importantly, there
Capability
Performance
Standard Issues
IATF 16949:2016
Troublesome
Transitions
A closer look at two difficult IATF 16949 requirements
by R. Dan Reid
The International Automotive Task Force (IATF) has released information on ++ Resources (see ISO 9001:2015,
the most-cited IATF 16949:2016 clauses during initial audits for organiza- clause 7).
tions transitioning from ISO Technical Specification (TS) 16949:2009. ++ Specifying responsibilities and
One such clause—control of production and service provision—was discussed authorities (power to act, for
in the November 2017 Standard Issues column.1 This month’s column focuses on example) (see ISO 9001:2015,
two more clauses generating major nonconformances in IATF 16949 transition subclause 5.3.1).
audits: internal auditor competency and total productive maintenance (TPM). ++ Addressing risks and oppor-
tunities (see ISO 9001:2015,
Internal auditor competency clauses 6.1 and 10.3).
IATF 16949:2016, Subclause 7.2.3—Internal auditor competency generated ++ Process evaluation and update,
the most major nonconformances in the transition audits performed through as needed (see ISO 9001:2015,
August 2017. Internal auditors often missed nonconformances in the quality subclauses 9.1.1 and 9.1.3).
management systems (QMS) they were auditing with alarming regularity, which ++ Process and QMS improve-
may have contributed to the number of findings against this clause so far. ments (see ISO 9001:2015,
This may be due to a misunderstanding regarding what processes internal clause 10.3).3
auditors can audit while remaining impartial. Auditors must have competency To meet the intent of the
to audit the processes assigned to them, which often means they must audit requirements, processes must
their own function or department. Purchasing people likely aren’t competent to be documented to indicate the
effectively audit engineering and some other functions. The standard for audi- inputs, outputs and sequence of
tor impartiality is that auditors must not audit their own work, but they should the process steps. This is referred
be able to audit their own function. to as the process approach. The
Under the new standard, auditors must examine the following aspects of International Accreditation Forum
each QMS process as required by ISO 9001:2015, clause 4.4:2 has communicated to its certifi-
++ Inputs. cation bodies that the use of the
++ Outputs (intended results or intended outcomes). process approach is one of the
++ Sequence of processes. most important requirements for
++ Interactions between processes. a QMS.
++ Process metrics. Further, the IATF added new
++ Process controls (see ISO 9001:2015, subclause 8.5.1). requirements for internal and
TPM
Another new requirement under
IATF 16949, outlined in subclause
8.5.1.5, is for an organization to
maintain a “documented total
preventive maintenance system.”
This is different from the typical
requirement of a documented
process or procedure. This differ-
ence in clause terminology could
be causing some confusion in the
transition audits. Further, because
this is a new requirement, main-
tenance employees may not be
familiar with writing effective pro-
cess documentation to address
the new requirements.
An IATF 16949-compliant
TPM system must include the
second-party auditor competency by incorporating the process approach, following:
among other things. Under IATF 16949, a documented process must be used 1. Identification of appropriate
to verify auditor competency. The auditor competency process must include and adequate process equip-
verification of auditor competency in several specified requirements and skills. ment for quality and capacity.
See Figure 1 (p. 56) for an example of an auditor competency process based 2. Availability of replacement
on the new IATF requirements, including the October 2017 IATF Sanctioned parts (carried over from ISO/
Interpretations that amended the original IATF 16949 auditor competency TS 16949:2009).
requirements. 3. Adequate resources for
ISO 19011 lists principles and personal attributes that are necessary prereq- machine, equipment and facil-
uisites for being an effective auditor. The ISO 19011 auditing principles include ity maintenance.
integrity and fair presentation. IATF is concerned with third-party auditors 4. Packaging and preserving
adhering to these principles and attributes. For example, auditors should not equipment, tooling and gaging
Auditor personal
attributes criteria Attributes met? No End
(ISO 19011)
Yes
QMS auditor? No
Yes
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PADDLE JOYSTICK
Footnotes
Musings on Internal Quality Unique to this text is the middle digital rather than human monitoring and
Audits: Having a Greater Impact section which provides wonderful analysis of processes is changing audit-
DUKE OKES ❚ ASQ QUALITY PRESS ❚ 2017 ❚ context to aspects of auditing (includ- ing. For a current perspective on auditing
130 PP. ❚ $14 MEMBER ❚ $24 LIST (BOOK) ing a section on governance) that is not in a nutshell, this is an excellent book.
covered in other books. As a statistician, —I. Elaine Allen, San Francisco, CA
Audits are either performed in-process the inclusion of a discussion of analytics
or after the project or task is completed. and the examination of risk is important.
They are designed to identify errors or This is included later in the appendixes
weaknesses in the process and to detect that list important questions to ask when
problems that might cause an unaccept- planning an audit or evaluating an audit.
able outcome. There are a lot of good examples listed
This book is a compiled set of training in the first appendix, and I wish the book
materials that provide robust methods was substantially longer so that these
for performing an audit after covering examples could be used to illustrate
basic auditing principles and methods. It applications of the techniques discussed
gives new perspectives on the auditing in section one.
process. Also included are appendixes The last chapter on audits in the future
with audit scenarios, and audit planning is interesting but could be an expanded
and risk management auditing questions. section examining whether reliance on
This book guides organizations in pursu- warehouses, sales offices, trucks and
ing a supply chain strategy through the ships, and distribution centers. Here the
implementation of four visions. These focus is lowering logistical costs. The
visions are needed for a business to integrated supply chain must have a
sustain its competitive advantage and common information base and mechan-
survival. The author explains and pro- ics in place to share this information
vides examples of successes and failures among all participants. The objective
detailing how organizations can use their goal for this vision is to keep information
supply chain and sourcing to increase processing costs low.
revenue, lower business risk, improve This book shows that pursuing a senior executive leaders must be proac-
profitability and achieve excellence. supply chain strategy provides a great tive rather than reactive with strategies
Strategically, the supply chain is a opportunity for a sustainable compet- to capitalize on the supply chain threats
chain of resources used to support a itive advantage as it encompasses all and opportunities.
product in the marketplace for target logistics activities, customer-supplier The author notes collaborative rela-
customers. This vision helps improve partnerships, new product development tionships should focus on reducing the
margins and product sales. Functionally, and introduction, inventory management uncertainty in operating environments.
the supply chain procures materials and and facilities. In the future, supply chain business
converts them into saleable products. The author points out that it is better processes will need continuous improve-
This vision focuses on lowering costs to rely on the operational excellence ments to achieve and sustain world-class
across the supply chain. The logis- across the supply chain that provides efficient performance status.
tics-transportation vision is the physical value to the customers than to rely only —John J. Lanczycki, Jr.
path of a product. It embraces factories, on cost-cutting. Chief executives and West Springfield, MA
by Gary Kirsch
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