CHAPTER-1

INTRODUCTION

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A product is said to be of quality if it is free from any manufacturing defect deficiency or
significant variation. .in order to do so certain specific standards need to be set so that uniformity
is achieved in the entire set of products being manufactured. The standard defined should be
such that the features and specifications offered by the product should be capable to meet the
implied need of the product.

A quality standard is a detail of the requirements, specifications, the various guidelines and
characteristics to be able to meet its quality by the product in order to meet the purpose of the
product, process or the service. ISO international standards are the most widely accepted set of
quality standards adopted by majority of firms across countries. In case if a company fails to
meet its quality standard, it may end up losing the trust of the customer and henceforth its market
share.

For example say a car manufacturer found some major issue with its car and calls for a product
recall, by doing so it can lose its long built brand equity. By investing in quality one can cut
down on huge loses and win a satisfied customer base.

NEED OF QUALITY STANDARDS (ISO 9000)

Becoming ISO 9001 certified means to pass a physical ISO 9001:2015 certification audit by
registrar (a certifying agency).
1. Meet Customer Requirements
Many companies want ISO 9001 certification just to satisfy one customer requirement. The
customer states that it will only do business with vendors that are certified as ISO 9001
compliant, so to get (or keep) the business they need that certification. The problem with these
companies is that they’re looking for a short-term payoff. They see nothing but that one benefit
— we need money — and ignore the long-term benefits, like “if we keep the customer well
satisfied, they will want to come back again and again”.
They don’t embrace the concept of quality through continual improvement. They don’t
understand that continued customer satisfaction is the ultimate goal of a QMS. In other words,
these companies haven’t “bought into the program”. See, you may obtain a piece of paper (that
ISO certificate) that claims ISO 9001 certification without seeing much actual quality or
improvement. Focusing only on that one benefit — your immediate gain — without putting the
customer in front will end up costing you much more in the long run. Hopefully, some of the

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quality management system ideas may rub off and eventually stick…but wouldn’t you rather
have a plan than trust to luck?
2. Get More Revenue and Business from New Customers
Once you earn your ISO 9001 certification, you can advertise your quality certification and
respond to requests for quotes (RFQ) from companies that make ISO 9001 certification a “must-
have”. ISO 9001 certification can open up new markets you were virtually unable to do business
with before your certification.

3. Improve Company and Product Quality

A quality management system standard is all about quality (really!) so, of course, one result of
adopting a QMS should be an improved level of quality for the entire organization —
every process, and every product. There are many definitions of “quality”, but Philip Crosby and
Joseph Juran provide two of the best. Crosby defined it as “conformance to requirements”; Juran
called it “fitness for use”. A well-designed, effectively implemented ISO 9001 Quality
Management System will put your company on the Road to Quality.
4. Increase Customer Satisfaction with your Products
Quality means whatever you produce will work as your customers expect. You will meet not
only their stated requirements — you will meet more of their implied requirements, too. Quality
also means far fewer complaints and doing a better job of resolving those you do. If your quality
management system is working correctly, you should know what your customers expect and you
should be providing it, resulting in increased customer satisfaction.
5. Describe, Understand, and Communicate Your Company Processes
The ISO 9001 QMS standard requires that you identify and describe your processes
using business metrics, the purpose of which is to better manage and control your business
processes. Quality objectives form the center of your system. Metrics are used to understand and
communicate your system’s performance relative to your quality objectives. If you make an
honest attempt to conform to the requirements of getting ISO 9001 certification, you’ll learn
more about your business.
6. Develop a Professional Culture and Better Employee Morale
Implementing an ISO 9001 Quality Management System can empower employees. Your QMS
will provide them with clear expectations (quality objectives and job descriptions), the tools to
do their job (procedures and work instructions), and prompt, actionable feedback on their

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performance (process metrics). The result? An improved company culture and a more
professional staff!
7. Improve the Consistency of Your Operations
What is consistency? Well, one way to think of it is “decreased variation”. Reducing the
variation in your processes is the definition of consistency. Is your customer better served by you
supplying them with a consistent product — same dimensions, same weight, same tolerances,
same output every time — or by your products being unpredictable and “all over the place”? (I
hope you’re not thinking too hard on this.)
Of course, they won’t accept variation, and neither should you! And how do you decrease
variation? Increase control of your processes! Control comes from having a clear target to shoot
for (objective), collecting data on the process (metrics), and understanding how to adjust the
process (procedures and work instructions) to maintain the target output. If your ISO 9001 QMS
is working, you should be increasing operational…and product…consistency.
8. Focus Management and Employees
We’ve discussed quality objectives, metrics, and procedures used within an Management
System. Having the right objectives, metrics, and procedures, management and
employees should be able to focus better on what’s important. Yet, this isn’t always the case —
it’s easy to lose focus over a period of time.
The ISO 9001 QMS has a way to ensure the company stays focused, and that’s quality
auditing. Internal audits, registration (and surveillance) audits, and self-process audits. ISO 9001
certification requires that the company periodically audit its quality processes. Regular process
audits and as-needed audits, when done correctly, provide the objective feedback needed to
correct any deviations from the quality path and keep the company focused on its goals.
9. Improve Efficiency, Reduce Waste, and Save Money
An ISO 9001 Quality Management System isn’t perfect; no process and no one is perfect. (Why
else would the standard devote a clause to “continual improvement”?) A well-run
QMS does enable your company to approach perfection. As your processes improve, become
more consistent, and you achieve your target objectives with greater regularity, you will see
tangible results. Your process waste will decrease, for one.

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Waste is money lost forever. Waste results from poor quality and inefficiency. Inefficiency
results from variation and inconsistent processes. Reduce variation, improve consistency, and
you’ll have less waste…and more money. It’s that simple!
10. Achieve International Quality Recognition
ISO 9001 is a worldwide standard administered by the International Organization for
Standardization (ISO), based in Switzerland. ISO 9001 is currently in use by over one
million organizations around the world! It is truly a worldwide standard for quality! Obtaining
ISO 9001 certification puts your company in a very select group.

ISO 9000
ISO 9000 is a set of international standards of quality management that have become
increasingly popular for large and small companies alike. "ISO is grounded on the 'conformance
to specification' definition of quality, " wrote Francis Buttle in the International Journal of
Quality and Reliability Management. "The standards specify how management operations shall
be conducted. ISO 9000's purpose is to ensure that suppliers design, create, and deliver products
and services which meet predetermined standards; in other words, its goal is to prevent non-
conformity." Used by both manufacturing and service firms, ISO 9000 had been adopted by
more than 100 nations as their national quality management/quality assurance standard by the
end of 1997.

This quality standard was first introduced in 1987 by the International Organization for
Standards (ISO) in hopes of establishing an international definition of the essential
characteristics and language of a quality system for all businesses, irrespective of industry or
geographic location. Initially, it was used almost exclusively by large companies, but by the mid-
1990s, increasing numbers of small-and mid-sized companies had embraced ISO 9000 as well.
In fact, small and moderate-sized companies account for much of the growth in ISO 9000
registration over the past several years. The total number of ISO 9000 registrations in the United
States increased from a little more than 2, 200 in 1993 to more than 17, 000 in 1998; of those 17,
000 registrations, nearly 60 percent were held by companies with annual sales of $100 million or
less.

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The increased involvement of small and midsized firms in seeking ISO 9000 registration is
generally attributed to several factors. Many small businesses have decided to seek ISO 9000
certification because of their corporate customers, who began to insist on it as a method of
ensuring that their suppliers were paying adequate attention to quality. Other small business
owners, meanwhile, have pursued ISO 9000 certification in order to increase their chances of
securing new business or simply as a means of improving the quality of their processes. "The
pressure for companies to become ISO 9000-certified is absolutely increasing and will continue
to increase," predicted one management consultant in an interview with Nation's Business. "The
question many smaller companies have to ask is when, not if, they get ISO 9000-registered."

ELEMENTS OF ISO 9000 QUALITY MANAGEMENT SYSTEMS

The standards of ISO 9000 detail 20 requirements for an organization's quality management
system in the following areas:

 Management Responsibility
 Quality System
 Order Entry
 Design Control
 Document and Data Control
 Purchasing
 Control of Customer Supplied Products
 Product Identification and Tractability
 Process Control
 Inspection and Testing Control of Inspection, Measuring, and Test Equipment
 Inspection and Test Status
 Control of Nonconforming Products
 Corrective and Preventive Action
 Handling, Storage, Packaging, and Delivery
 Control of Quality Records
 Internal Quality Audits
 Training

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  Servicing
 Statistical Techniques

MODELS OF ISO 9000

The ISO 9000 quality standards are broken down into three model sets—ISO 9001, ISO 9002,
and ISO 9003. Each of these models, noted Industrial Management contributors Stanislav
Karapetrovic, Divakar Rajamani, and Walter Willborn, "stipulate a number of requirements on
which an organization's quality system can be assessed by an external party (registrar)" in
accordance with the ISO's quality system audits standard. "A quality system, " they added,
"involves organizational structure, processes, and documented procedures constituted towards
achieving quality objectives."

Each of the three sets concentrates on a different quality area. ISO 9001 is the most wide-
ranging, for it specifies the various operating requirements in such areas as product design and
development, production, installation, and servicing. ISO 9002 is concerned with quality
assurance at the production and installation stages. ISO 9003 covers testing and inspections. As
Karapetrovic, Rajamani, and Willborn noted, "if the minimum requirements are met [for the
above operating areas], a registrar accredited by a national accreditation institution issues a
certificate of compliance and the organization's quality system becomes ISO 9001, 9002, or 9003
registered."

It is worth noting that certification is handed out for individual quality systems, not companies;
this means that one company may hold more than one ISO 9000 registration. Moreover, Harvey
R. Meyer pointed out in Nation's Business that "the standards do not certify the quality of a
product or service. Rather, they attest that a company has fully documented its quality-control
processes and consistently adheres to them. If that's done, quality products and services generally
follow."

In addition to ISO 9000, two related quality standards emerged in American industries in the late
1990s. ISO 14000, also known as the Environmental Management Systems Standards, is
intended to combine environmental management systems with the ISO 9000 quality system. The
second system, QS9000 is an adaptation of ISO 9000 to meet the specific needs of the "big

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three" American automobile manufacturers—Ford, General Motors, and Daimler Chrysler. Both
systems were expected to have a substantial impact on U.S. companies.

ADVANTAGES OF ISO 9000

The advantages associated with ISO 9000 certification are numerous, as both business analysts
and business owners will attest. These benefits, which can impact nearly all corners of a
company, range from increased stature to bottom-line operational savings. They include:

 Increased marketability—Nearly all observers agree that ISO 9000 registration provides
businesses with markedly heightened credibility with current and prospective clients
alike. Basically, it proves that the company is dedicated to providing quality to its
customers, which is no small advantage whether the company is negotiating with a long-
time customer or endeavoring to pry a potentially lucrative customer away from a
competitor. This benefit manifests itself not only in increased customer retention, but also
in increased customer acquisition and heightened ability to enter into new markets;
indeed, ISO 9000 registration has been cited as being of particular value for small and
mid-sized businesses hoping to establish a presence in international markets.
 A reduced operational expense—Sometimes lost in the many discussions of ISO 9000's
public relations cache is the fact that the rigorous registration process often exposes
significant shortcomings in various operational areas. When these problems are brought
to light, the company can take the appropriate steps to improve its processes. These
improved efficiencies can help companies garner savings in both time and money. "The
cost of scrap, rework, returns, and the employee time spent analyzing and troubleshooting
various products are all considerably reduced by initiating the discipline of ISO 9000, "
confirmed Richard B. Wright in Industrial Distribution.
 Better management control—The ISO 9000 registration process requires so much
documentation and self-assessment that many businesses that undergo its rigors cite
increased understanding of the company's overall direction and processes as a significant
benefit.
 Increased customer satisfaction—Since the ISO 9000 certification process almost
inevitably uncovers areas in which final product quality can be improved, such efforts

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 often bring about higher levels of customer satisfaction. In addition, by seeking and
securing ISO 9000 certification, companies can provide their clients with the opportunity
to tout their suppliers' dedication to quality in their own business dealings.
 Improved internal communication—The ISO 9000 certification process's emphasis on
self-analysis and operations management issues encourages various internal areas or
departments of companies to interact with one another in hopes of gaining a more
complete understanding of the needs and desires of their internal customers.
 Improved customer service—The process of securing ISO 9000 registration often serves
to refocus company priorities on pleasing their customers in all respects, including
customer service areas. It also helps heighten awareness of quality issues among
employees.
 Reduction of product-liability risks—Many business experts contend that companies that
achieve ISO 9000 certification are less likely to be hit with product liability lawsuits, etc.,
because of the quality of their processes.
 Attractiveness to investors—Business consultants and small business owners alike agree
that ISO-9000 certification can be a potent tool in securing funding from venture capital
firms.

DISADVANTAGES OF ISO 9000

Despite the many advantages associated with ISO 9000, however, business owners and
consultants caution companies to research the rigorous certification process before committing
resources to it. Following is a list of potential hurdles for entrepreneurs to study before
committing to an initiative to gain ISO 9000 certification:

 Owners and managers do not have an adequate understanding of the ISO 9000
certification process or of the quality standards themselves— some business owners have
been known to direct their company's resources toward ISO 9000 registration, only to
find that their incomplete understanding of the process and its requirements results in
wasted time and effort.
 Funding for establishing the quality system is inadequate—Critics of ISO 9000 contend
that achieving certification can be a very costly process, especially for smaller firms.

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 Indeed, according to a 1996 Quality Systems Update survey, the average cost of ISO
certification for small firms (those registering less than $11 million in annual sales) was
$71, 000.
 Heavy emphasis on documentation—The ISO 9000 certification process relies heavily on
documentation of internal operating procedures in many areas, and as Meyer stated,
"many say ISO's exacting documentation requirements gobble up time. Indeed, there are
horror stories about companies losing substantial business because a documentation
obsession redirected their priorities." According to Nation's Business, small business
owners need to find an appropriate balance between ISO documentation requirements,
which are admittedly "one is ISO 9000's hallmarks, " and attending to the fundamental
business of running a company: "Strike a balance among obsessively writing down every
employee's task, offering training for the work, and letting common sense dictate how a
task is to be performed."
 Length of the process—Business executives and owners familiar with the ISO 9000
registration process warn that it is a process that takes many months to complete. The
1996 Quality Systems Update survey indicated that it took businesses an average of 15
months to move from the early stages of the process to passage of the final audit, and that
processes of 18-20 months or even longer were not that uncommon.

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 CHAPTER-2
LITERATURE REVIEW

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 LITERATURE REVIEW

(Choppin, 1995) in his article talks about the study of total quality management (TQM)
which demonstrates a divergence of cultures. It explains how success stems from developing
a unique model of TQM, reflecting the business ethics and purpose of the organization. One
organization focuses on teamwork; another has strong process control, while a 3rd develops
strong internal customer relationships. On the larger canvas, TQM provides a direction and a
framework for morality in business. It considers and rewards the effort of those directly
involved, both inside and outside the organization. While the principles of total quality may
appear in different forms, those developed by the British Quality Foundation represent the
core of most TQM initiatives.

Owlia and Aspinwall (1997) conclude that customer orientation is a more problematic
principle of TQM when applied to universities because of special nature of many academics
whose motivation to work is often independent of market issues. The effectiveness of
leadership is adversely affected by individualism among academic staff and due to absence
of team working.

According to Hodson & Thomas, (2003) Quality Assurance “emphasis compliance and
accountability”. So in quality assurance certain standards are adopted by the institutions to
promise good outcome to the customer. Thus the main purpose behind evaluations of faculty
and system is to keep a check on the standards (Lillie, 2003). Universities are giving quality
assurance more preference so that they can promote their business in the market (Delanty,
2001).

Increase in competition and development of the education industry lead to shortage of

resources, this directed to the realization of a creation of system where the available resource
give maximum payoff (Piana & Agasisti, 2009). Universities are under extreme inspection,
so they have to go through constant strategic changes from role to the infrastructure. These
exercises are conducted by referring to the managerial approaches from the literature

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 (Tom Noone, 2008) in his article discusses about Deming's philosophy through his 14-
principles which helps a service sector to attain quality. The principles indicate what
management needs to do to ensure that they and their employees are able to deliver good
service quality to its customers. The purpose of this paper is first, to select and describe six of
the 14 principles and explain their implications for organisational management; and second,
to highlight the relevance of these principles within higher education. Six of Deming's
principles help in transforming organisational management and discuss the application of
these to management within the area of higher education. The selection of these six
principles, for discussion is not due to their more importance for quality, but because they
important for management in higher education.

(Satish, 2009) This paper examines the role of quality management concepts towards
enhancing classroom learning. The article talks about cooperative learning and how it can
enhance the learning process among students as the teaching shifts from teacher oriented to
student oriented. Collected data were analyzed using factor analysis to arrive at specific focus
areas to improve learning. It is found that specific quality management concepts can assist
towards increased classroom learning for students. This research broadens the scope of the
applicability of quality management tools for enhanced students learning across varied
cultural settings.

(Muralikrishnan, 2009) through his paper tries to project a method from the parlance of
management into the arena of higher education thereby anticipating the relative improvement
of quality consciousness among all constituents so as to enhance their effectiveness and
competence.

(Lunenburg, 2010)In his article, sets the framework for transforming schools using Deming’s
14 TQM principles. The concepts formulated by Total Quality Management (TQM) founder,
W. Edwards Deming, have been suggested as a basis for achieving excellence in schools. It is
an opportunity to conceptualize a systematic change for schools.

(Kato, 2010) in his paper seeks to shed some light on the importance of Japanese-style
management and Total Quality Management (TQM) in higher education institutions. This

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 paper begins by describing management concepts and relates these concepts to Japanese-
style management and TQM in universities. Then review on the Japanese-style management
and TQM, management in higher education institutions with the implementation of ISO 9000
is discussed. This paper also examines the role of management system in universities in
shaping their mission and vision, and concludes with suggestions that can facilitate
awareness from staff in the organization that would promote their cooperation for successful
implementation of ISO 9000.

(Thapa, 2011) concludes by saying Total Quality Management (TQM) is the latest in a
parade of models, recipes, programs, frameworks, and slogans for guiding academic reform.
It provides a tool to help ensure this quality. The management in TQM means everyone is the
manager of their own responsibilities because everyone in the institution, whatever their
status, position or role is. Information and technologies have brought sea changes in
education and has therefore changed the interpretation of the term quality. TQM advocates
that everything and everybody in the organization is involved in the academic institutions for
continuous improvement. As it is applied to education, TQM faces new challenges due to
diversity in nature of students and educators, large and multileveled classrooms,
technological advances and new paradigms in educational content and delivery. Despite these
issues education must maintain quality across classrooms, schools and institution. This article
highlights the need of TQM to improve overall quality of education in Nepal.

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 CHAPTER-3
OBJECTIVES OF THE
STUDY

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 1) To study about the meaning of “Quality Standards”.

2) To analyze various impact of Quality Standards on the consumers.

3) To study the role of Quality Standards in Management Decisions.

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 CHAPTER-4
RESEARCH
METHODLOGY

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RESEARCH METHODOLOGY

Research Methodology

Research Methodology is a way to systematically solve the research problem. It deals with the

objective of a research study, the method of defining the research problem, the type of

hypothesis formulated, the type of data collected, method used for data collection and analyzing

the data etc. the methodology includes collection of primary and secondary data.

Sources of Data Collection –

 Primary Data - It refers to first hand data gathered by the researcher himself. It includes

observations, questionnaire, personal interview etc.

 Secondary Data – It implies second hand information which is already collected by

someone else such as government publications, websites, books, internal records etc.

Since, our project does not involve any type of market analysis and is solely for study

purpose, it is based merely on secondary data.

Secondary data is collected from -

 Websites

 Journals

 Newspaper Articles

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 CHAPTER-5
CONCLUSION

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“Create quality, aims and can improve at any stage of the idea – raw materials – finished product
and every step of the decision-making process. Design and improvement of the quality system is
not an end in itself, but a means to increase efficiency in the long run, by taking into
consideration of all factors and endogenous and exogenous, so with a strategic vision.”

In world trade, for buyers and sellers to work together there must be trust. Standards can provide
the necessary bridge of confidence and understanding that builds mutual trust, helping trade to
thrive. Sales are the lifeblood of any business, so the implementation of standards helps sales.
This is the case whatever the size of the business or the sector they are operating in.

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 CHAPTER-6
BIBLIOGRAPHY

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References:

Buttle, Francis. "ISO 9000: Marketing Motivations and Benefits." International Journal of
Quality and Reliability Management. July 1997.

Johnson, P.L. ISO 9000: Meeting the New International Standards. McGraw-Hill, 1993.

Kanji, G.K. "An Innovative Approach to Make ISO 9000 Standards More Effective." Total
Quality Management. February 1998.

Karapetrovic, Stanislav, Divakar Rajamani, and Walter Willborn. "ISO 9000 for Small Business:
Do It Yourself." Industrial Management. May-June 1997.

Online References:

https://www.referenceforbusiness.com/small/Inc-Mail/ISO-9000.html

www.referenceforbusiness.com

https://www.iso.org/home.html

https://www.researchgate.net/publication/258848595_The_Influence_of_Online_R
eviews_on_Consumers'_Attributions_of_Service_Quality_and_Control_for_Servic
e_Standards_in_Hotels

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