ACTIVITY 7

1. Define the following terms

A. ISO 9001
ISO 9001:2015 outlines quality management system criteria when an
organization:
● Must demonstrate its capacity to consistently supply products and services that
fulfill the demands of customers as well as any statutory and regulatory
requirements, and
● Strives to promote customer satisfaction through the successful use of the
system, including mechanisms for system improvement and verification of
compliance with customer and relevant legislative and regulatory requirements.
All ISO 9001:2015 standards are general and designed to apply to any enterprise,
regardless of its form or size, or the goods and services it delivers.

B. Lean Service

Lean management is a management strategy that promotes the notion of

continuous improvement, a long-term approach to work that deliberately aims to create
tiny, incremental improvements in operations to increase efficiency and quality. The
basic goal of lean management is to generate value for the customer by optimizing
resources and creating a consistent workflow based on actual consumer requests. It
attempts to remove any waste of time, effort, or money by identifying each step in a
business process and then updating or eliminating stages that do not provide value. The
concept has its origins in the industrial industry.

C. Pareto Chart

A Pareto Chart is a graph that shows the frequency of flaws as well as the
cumulative impact of those problems. Pareto charts may be used to identify which
problems should be prioritized in order to get the largest overall improvement.
Let us build on this definition by dissecting a Pareto Chart into its constituent parts.
1) A Pareto Chart is a cross between a bar graph and a line graph. On the Pareto Chart
below, notice the existence of both bars and a line.
2) Typically, each bar symbolizes a different sort of fault or issue. The height of the bar
indicates any significant unit of measurement, which is frequently the frequency of
occurrence or cost.
3) The bars are displayed in ascending order (from tallest to shortest). As a result, you
can observe which problems are more common at a glance.
4) The line depicts the total proportion of faults.
 D. Cause-and-effect Analysis

Professor Kaoru Ishikawa, a quality management pioneer, developed Cause and

Effect Analysis in the 1960s. The approach was later included in his 1990 book,
"Introduction to Quality Control." This implies that you can discover and solve the root
cause the first time, rather than having the problem reoccur. Because they resemble the
skeleton of a fish, the diagrams produced by this form of analysis are commonly
referred to as fishbone diagrams. To use this strategy, write your problem in a box on
the left-hand side of a piece of paper. Then, from the box to the other side of the page,
draw a straight line. Draw many lines that stretch out from your long horizontal line once
you've written out the problem. You are now going to brainstorm all of the possible
causes of this problem. Systems, equipment, materials, external factors, persons
involved in the situation, and so on are examples of these.

E. Six Sigma

Motorola, USA, developed Six Sigma in 1986 as a method of corporate

governance. After Jack Welch made Six Sigma the main focus of his business strategy
at General Electric in 1995, it became famous and is now used in numerous industries,
including BDA. Six Sigma is a word that comes from industrial terminology, especially
from concepts related to statistical modeling of production processes. Six Sigma aims to
improve the quality of process results by identifying and eliminating the causes of errors
in manufacturing and business processes and reducing variability. It uses various
methods, including statistical techniques, and builds a specialized infrastructure of
people who are experts in these methods within the organization. Every Six Sigma
project carried out within an organization follows a predetermined process with
measurable financial goals of reducing costs and/or increasing profits. Six Sigma has 2
methods, but DMAIC is generally used because it defines the problem and the
objectives of the project.

2. Enumerate and explain the 3 Principles of Deming’s teaching in Continuous

Improvement

1. Customer satisfaction.
To boost customer satisfaction, a firm must contact and communicate with
consumers regularly. It is necessary to understand and assess all unique client
demands during these contacts and discussions, and to respond properly. Even if the
items in rival marketplaces are identical, contentment leads to high retention rates.
Shoppers and merchants, for example, use frequent shopping and credit cards to
improve customer happiness; many high-end businesses also provide membership
cards and discount incentives on those cards to keep customers loyal. The higher the
degree of satisfaction, the stronger the customer's sentimental attachment to the
specific brand of goods as well as the provider. This contributes to the formation of a
strong and healthy customer-supplier connection. This bonding binds the customer to
that specific source, making desertion extremely unlikely. As a result, customer
satisfaction is a critical aspect that every supplier should prioritize daily to create a
reputable position in the worldwide market and increase business and profit.

2. Management by facts.
The most effective management approach is fact-based management. It is based
on knowing what data is required to make a choice, obtaining the data, and correctly
interpreting the data to reach a decision. This sort of decision-making can also involve
groups, although it is more commonly associated with the use of decision-making tools.
The bias of an effective company is toward fact-based management.

3. Respect for people.

Employees at all levels of seniority must understand the significance of respect in
the workplace. Respect at work is an essential component in creating a good working
environment. Mutual respect in the workplace communicates to all employees that their
accomplishments, talents, and traits are respected. Being respected and treated with
respect contributes to a healthy work culture in which people feel fulfilled, loyal,
engaged, and encouraged to achieve their maximum potential. Employees that do not
respect others are unprofessional and endanger the company's health and profitability.

3. Enumerate and discuss the Quality Tools for Analysis for Problem Solving

Check Sheet
A check sheet is used to record simple facts and data that occur on the factory
floor over time. The page is created in such a manner that the potential causes of
inaccuracy are already listed. More options can be added by users. The data relevant to
the mistakes are then recorded daily. This information can then be utilized in
brainstorming sessions as proof. A check sheet offers the raw materials for users to find
the problems they need to be aware of before they can resolve them.

Run Chart
A run chart depicts the performance of a process over time. It displays a line
graph with data points drawn in chronological order, indicating the temporal sequence of
process data. These data points reflect process output measurements, counts, or
percentages. They demonstrate process stability or trends. These charts serve as the
foundation for statistical control charts, however, they are not as strong or effective.
Histogram
A histogram is a method of organizing data points according to their specified
ranges and user value. It's a graphical or visual depiction of statistical data or
information. A histogram is a type of bar graph that comprises multiple ranges of data
presented in varying heights. It is commonly used in statistics and mathematics. It is a
graph that contains numerous data points and arranges them into ranges that readers
may readily grasp.

Pareto Chart
The Pareto Chart is a basic but effective chart for determining where the bulk of
issues in a process originate. Using a Pareto Chart early in the problem-solving process
is an efficient way to reduce the project complexity. The Pareto Ctoregularlyhart ranks
the relative frequency of flaws and so serves as a prioritizing tool for process
improvement initiatives, allowing them to be ordered to "get the most bang for the buck"
or "select the low-hanging fruit."

Flowchart
A flowchart is a graphical depiction of sequential phases in a process. It is
regarded as a general tool since it has a wide range of uses and may be used to
demonstrate several processes. It can be used to define a project plan, service or
administrative process, or a manufacturing process, for example. Furthermore, because
a flowchart is one of the seven fundamental quality tools, it may be utilized as a process
analysis tool.

Cause-and-Effect Diagram
When working as a team to solve an issue, there are frequently several
perspectives on the underlying cause. The Cause and Effect diagram, often known as
the fishbone because the structure resembles a fish skeleton or the Ishikawa diagram
named after its creator, Dr. Ishikawa, is a visual representation of cause and effect. It
highlights probable explanations for an effect or problem and encourages you to
investigate all possible causes, not just the most obvious. The fishbone diagram, one of
the seven fundamental tools of Quality, is most commonly used in circumstances when
little or no quantitative data is available for analysis, as well as in brainstorming
sessions to organize ideas into meaningful categories.

Scatter Diagram
A scatter plot is a sort of chart that is used to observe and graphically represent
the relationship between variables. The variables' values are indicated by dots. Because
the placement of the dots on the vertical and horizontal axes informs the value of the
relevant data point, scatter plots employ Cartesian coordinates to depict the values of
the variables in a data set. Scatter plots are sometimes referred to as scattergrams,
scatter graphs, and scatter charts.

Control Chart
The Control Chart, often known as the C-chart, is a sort of control chart that is
used to monitor count-type data, which is typically the total number of conformities per
unit. It is also occasionally used to track the total number of events that occur in a
particular unit of time.

4. Define “Benchmarking” and enumerate the 4 steps.

In business, benchmarking is the practice of comparing your company's

performance to that of other industry leaders. Benchmarking may be used for your
company's operations, sales, and goods. Cost, quality, time, and customer satisfaction
are all common measurements. For example, if you managed a technology firm and
wanted to examine how your sales compared to industry standards, you'd most likely
compare your figures to those of large corporations like Google or Apple. Benchmarking
is used by businesses to enhance their own procedures and operations. You may find
holes in your own processes and sales by looking at how market leaders have achieved
their goals. Benchmarking is used by nearly every firm in every industry as part of its
continuous and never-ending improvement plan. The benchmarking process involves
five steps: (1) select a critical process that needs improvement; (2) identify an
organization that excels in the process; (3) contact the benchmark firm, make a visit,
and study the process; (4) analyze the findings, and (5) improve your process
accordingly

5. Enumerate and discuss the 3 Key Components of ISO Standards

Planning
It is required for the organization to plan activities to address the risks and
opportunities identified. The business must also determine how to incorporate and apply
the activities into its quality management system procedures, as well as assess their
performance. Actions made to manage risks and opportunities must be appropriate to
the possible impact on product and service conformance. Risk management options
include, but are not limited to, avoiding risk, accepting the risk to seek an opportunity,
removing the risk source, modifying the possibility or consequences, sharing the risk,
retaining risk via educated decision-making, or applying standards such as ISO.
Control
Create and maintain records as proof of compliance with regulations and to
demonstrate the effectiveness of the quality management system.
Create a documented procedure for defining the controls required for records:
● Identification
● Storage
● Protection
● Retrieval
● Retention
● Disposition
● Maintain legibly, easily recognized, and retrievable records.

Documentation
A quality management system requires ISO 9001 document control. Although
companies have freedom in how they document their quality management system
(QMS), the standard outlines how businesses generate the documentation required to
show process design, operation, and control, as well as QMS installation and
continuous improvement. Organizations that seek to show ISO compliance for
certification, registration, contractual obligations, or other reasons must produce proof of
an effective quality management system implementation (QMS). You must be able to
give objective proof of the efficacy of procedures as well as the overall quality
management system. This objective evidence can be gathered by observation,
measurement, testing, or any other method.