Quality Matters

Employee Handbook

AnAn
Introduction
to ISO
9001:2000
Introduction
to QS
9000

About this Booklet:

This booklet is produced by Bywater in order to assist organizations in the
communication of key Quality messages to employees. The messages included
are designed to provide staff with the answers to the most commonly asked
questions regarding the individual's role in an organization's Quality initiative
and to 'de-mystify' the terminology and jargon used in pursuit of its Quality
objectives. Since first being published in 1994, Quality Matters booklets have
sold over 150,000 copies.

About Bywater:
Bywater is one of the world's leading providers of Quality Management
consulting and training services. Since 1982 Bywater has undertaken over 2000
Management System consulting projects and assisted with over 1000
registrations to ISO 9001 and 9002. Bywater has delivered Quality Skills
training to tens of thousands of delegates worldwide, including over 25,000
auditors on IRCA/IATCA/IEMA approved auditor training courses.

Clients Include:
AMEC, BAE Systems, BT, Kellogg, Brown & Root, Cincinnati Bell, Dow Corning,
GlaxoSmithKline, ICI, ICL, Kodak, Kraft Foods, MOD including divisions within
the Army, Navy and Royal Air Force, Philips, Pitney Bowes, Novartis, Shell and
United Utilities.

Consulting and Training Services

For further information on Bywater and its range of consulting and training
services, please contact any of the offices listed on the inside back cover of
this publication, or visit any of the following websites:

July 2003

In Europe:
www.bywatertraining.co.uk
In North America: www.bywater-consulting.com
In the Asia Pacific: www.bywater.com.au

CONTENTS
Page

Introduction

What is Quality?
Why does it matter?
Who are our customers?
What do they want?
The Needs of Interested Parties

What happens when we dont get it right?

What are we doing about Quality?

What is a Quality Management System?

11

What is QS-9000?

12

Where will our QS-9000 System be documented?

14

What is a Quality System audit?

16

What does QS-9000 require us to do?

17

How can you help?

26

INTRODUCTION
In todays competitive world, one of the most important things which
separates leading companies from their followers is QUALITY.
Even companies who already have a reputation for producing Quality
goods or services must work at improving everything they do in order to
stay ahead. Its called QUALITY MANAGEMENT.

This booklet has been produced to explain what WE are doing to bring
Quality Management into our organization.
We have decided to develop and introduce a Quality Management System
(QMS) based on the QS-9000 standard developed by Ford, Chrysler
and General Motors. QS-9000 uses the International Standard ISO
9001:1994 Section 4 as its basis.
The following pages should help you understand whats involved and what
it will mean for us all.
4

So... What is "QUALITY"?..

Quality is meeting agreed requirements. Its all those things that please
our customers and keep them coming back.
... and Why does it matter?..
Without customers, we have no business!
Who are our customers?..
They are one in a group of FIVE Stakeholders or Interested Parties.
and What do they want?..
EXTERNAL CUSTOMERS
SHAREHOLDERS

SUPPLIERS

EMPLOYEES
XYZ Inc

SOCIETY
5

THE NEEDS OF THESE "INTERESTED PARTIES"

EXTERNAL CUSTOMERS
want:

Requirements Met
Value For Money

EMPLOYEES
want:

Job Security
Fair Pay

SHAREHOLDERS
want:

Profit
Long Term Business

SUPPLIERS
want:

To be Approved
Business Partners
Long Term
Supply Contracts

SOCIETY
wants:

Legal Requirements
Adhered to
Good Business Ethics

These are some examples - you'll be able to think of many more. It is

important we meet the requirements of ALL Interested Parties.
But to do this we all need to work together - each one of us contributing
towards doing the right things "RIGHT FIRST TIME - EVERY TIME".
6

To understand how we can do this, think of our company as a series of

steps.
B
U
S
I
N
E
S
S
P
R
O
C
E
S
S

The path from the first

step through to the final
step is called our
BUSINESS PROCESS.

Each step has an

INTERNAL CUSTOMER
and an INTERNAL
SUPPLIER.

We need to recognize all the internal customer/supplier relationships

linking every step of our Business Process.

It only takes one of us, as an internal supplier

to fail to meet the requirements of our internal customers
for the whole chain to fall apart, resulting in something we don't want:
DISSATISFIED CUSTOMERS.
7

WHAT HAPPENS WHEN WE DONT GET IT RIGHT?..

In the past we have sometimes failed to supply what our EXTERNAL
CUSTOMERS wanted because the INTERNAL CUSTOMER/SUPPLIER
links broke down somewhere.
Our INTERNAL failures create an image to our EXTERNAL CUSTOMERS.
This image may make us seem as if we are:
EXPENSIVE
UNRELIABLE

UNRESPONSIVE

LACKING
UNDERSTANDING

INCONSISTENT

UNHELPFUL

CARELESS

By not doing things right first time we:

waste time

cause hassle to others

stress ourselves
waste money and materials
introduce low morale
cause our customers to look elsewhere.
We need a way to make sure that each and every link is strong and does not fail - ALL OF THE TIME.
8

WHAT ARE WE DOING ABOUT QUALITY?..

Were used to checking jobs, information etc., and we often try to fix
mistakes or do the job again. But if the failure has already reached the
customer, it may be too late.
QUALITY is NOT something which can be guaranteed by checking
others people's work and detecting their errors.
PREVENTING errors from ever happening is the key.
Problems and errors are like fires ...they cause a lot of disruption, they take a lot of time and effort to
stop, and they cause an awful lot of damage.
Dont be a Firefighter...Fighting Fires is COSTLY AND IS TOO LATE,
because the damage will already
have been done...

PREVENT FIRES STARTING!

"Preventing Fires" is QUALITY MANAGEMENT

9

QUALITY MANAGEMENT focuses on PREVENTING FAULTS by

ensuring the job is done right in the first place.
This means all individuals in the process are responsible for their own
Quality.
To do this they need to:

JOHN, WOULDNT IT
BE EASIER TO TAKE THE
OIL CAN TO THE DRUM?

I NEVER THOUGHT OF
THAT. WEVE ALWAYS
DONE IT THIS WAY!

know what to do
know how to do it
measure how well they do it
take corrective action
have the resources to do it
want to do a good job.

It will mean THINKING about everything we do!

QUALITY IS ACHIEVED BY INTENT, NOT BY ACCIDENT.
We will have formal systems which ensure that we meet our customers'
requirements effectively and efficiently by:

determining the best way to do things, writing it down and sticking

to it

providing clear and accurate written instructions so that, if we are

unsure or forget, we can look it up

keeping records to show we are in control

If things DO go wrong, we must put them right
and find a way to prevent the same things happening again.
This is called a 'CORRECTIVE ACTION'
10

SO...WHAT IS A QUALITY MANAGEMENT SYSTEM?...

A QUALITY MANAGEMENT SYSTEM includes everything we do, or
dont do, which can affect the Quality of the product or service we
provide to our customers.
We are developing OUR QMS by examining what we presently do and
then writing down what we agree is the best way for us to ensure our
customers get what they expect.
We will need to identify:

WHY is it necessary to do it?

WHO is responsible for it?
WHAT is required to be done?
WHEN is it to be done?
WHERE is it to be done?
and HOW is it to be done?

In addition, we need to identify WHERE all the inputs come from and
where they all go.
By doing this we will increase our understanding of how we work, which
means we will be able to control it better. Also we will increase our
understanding of where potential problems arise so that we can
prevent them. We will all benefit because there will be:
CY
TEN
NSIS
MIST
AKES
INCO
HASSLE
WAS
TING
TE
FIGH
ESS
FIRE
STR

YOU CAN
KEEP THE
PAST!

WITH FEWER PROBLEMS

I CAN BE FAR
MORE CREATIVE

improved consistency
fewer mistakes
less misuse of resources
less hassle
less stress
less firefighting
improved teamwork
more satisfied customers
more customers wanting to do business with us.
11

WHAT IS QS-9000?
QS-9000 is a Quality System Standard for the automotive industry
which has been developed by Chrysler, Ford and General Motors with
input from the Truck Manufacturers.
QS-9000 replaces:

Chrysler's Supplier Quality Assurance Manual

Ford's Q-101 Quality System Standard

and

General Motors' NAO Targets for Excellence

General Motors' Europe General Quality Standard for Purchased

Materials

Truck Manufacturers' Quality System Manuals

This new standard is designed to make our lives easier and our
organization more efficient and effective.
QS-9000 requires us to provide documented evidence that we have
control over a number of activities which impact on the quality of
product we supply to our customers and that we continuously improve our
performance.
It refers us to a number of specific customer reference manuals which
identify particular requirements that we must address in our business
processes.
12

QS90
0

ts

or

em
en

ct
Se
ire
me

uir
eq
yR
tar
lem
en

qu
nts

pp

Re

Su

cfic

ISO
9000

QS-9000

e
Sp

QS-9000

00
0
9
S-

Customer Specific Requirements

00
90
S-

QS
9
00
The standard comprises 3 sections:
Section 1

ISO 9000 and supplementary requirements and

interpretations. The ISO 9000 Series of Quality System
Standards is internationally recognized as the basis for
effective Quality Management Systems.

Section II

Sector specific requirements not included within Section

I, but required by Chrysler, Ford, General Motors and the
Truck Manufacturers.

Section III Customer specific requirements to meet the individual

needs of either Chrysler, Ford, General Motors or the
Truck Manufacturers.
13

WHERE WILL OUR QS-9000 SYSTEM

BE DOCUMENTED?..

QUALITY
MANUAL
The
Organization
and its Policies

PROCEDURES
For groups of people

JOB/WORK INSTRUCTIONS
For individuals

Invoice

Training
Record

Log Sheet

Sales Order
Maintenance
Check

Delivery
Note

QC

RECORDS/REFERENCES
Objective evidence that we are doing what we say we will do.

It will also refer us to a number of Customer Reference Manuals

where relevant for:

Advanced Product Quality Planning (APQP) and Control Plan

Failure Mode and Effects Analysis (FMEA)

Measurement Systems Analysis (MSA)

Fundamental Statistical Process Control (SPC)

Production Part Approval Process (PPAP)

Quality System Assessment (QSA)

14

Wont that involve lots of extra work for everyone?

Not at all! Its simply applying common sense working SMARTER, not HARDER!

All this won't happen overnight or by accident.

Well need to:
PLAN carefully
INVOLVE everyone in whats happening
AUDIT our System to check everythings OK
CONTINUOUSLY look for ways to improve (AUDITING is one way
of achieving this)
15

WHAT IS A QUALITY MANAGEMENT SYSTEM AUDIT?..

An AUDIT is a simple way of monitoring our QMS. Its a check that we
are actually doing what we say in our procedures and work instructions that is, our AGREED way of working. It also evaluates that we are
meeting our objectives by following these procedures.
Wherever we are failing to follow our agreed way of working and/or
objectives are not being met, it will be highlighted in an objective
NO BLAME way.
The important point to remember is that the
Audit checks the QUALITY MANAGEMENT
SYSTEM and not the people.
BUT the QUALITY MANAGEMENT SYSTEM
needs us all to be committed to making it work.
We want to be sure that our QMS is effective, reliable and easy to
operate. Our QMS will be measured against the requirements of
QS-9000.
It details requirements for areas of our business which may be audited
by an external organization to see how well we measure-up.
If we can demonstrate that we meet all the requirements of QS-9000 to
an independant third party Registrar, we can become a Registered
Company.
We can then show our customers that we are committed to meeting
THEIR requirements and that we also have a means of continually making
improvements through our QMS, which would reduce the need
for our customers to carry out their own audits.
16

SO... WHAT DOES QS-9000 REQUIRE US TO DO?...

Section I - ISO 9000 Based Requirements

MANAGEMENT
RESPONSIBILITY

! Our most senior executives will be expected to:

produce a Quality Policy clearly stating

objectives and commitment to Quality AND
make sure everyone in the organization
understands it

allocate enough resources and trained

personnel for performing the work

select a management representative to

co-ordinate the QMS

regularly review the QMS to make sure it is

still suitable and effective

develop Business Plans which are regularly

reviewed and communicated throughout the
organization

measure customer trends and levels of

satisfaction.

17

QUALITY
SYSTEM

CONTRACT
REVIEW

3
DESIGN
CONTROL

! Our System must:

be fully documented

satisfy our customers' requirements and

expectations

reflect the needs of our organization

define how the requirements for Quality will

be met

demonstrate, through planning, that we do

and will meet requirements.

! When we bid for business or receive

an order or contract, we must check that we:

completely understand each customer order

are able to meet it exactly at the required

time

! We must:

control the way we organize, carry out,

review and check what we design

have qualified, authorized personnel to do

that work.

Please note that this element applies to design

responsible suppliers only.

18

DOCUMENT AND
DATA CONTROL

PURCHASING

6
CONTROL OF
CUSTOMER
SUPPLIED
PRODUCT

! We must ensure that all documents and

data which form part of our Quality System,
and reference documents supplied by our
customers are CONTROLLED, AUTHORIZED
and that:

the latest issues are available where they

are needed

changes are recorded and issued in writing

old/obsolete issues are removed from

circulation, to avoid confusion

any special product characteristics are

identified on documents.

! When purchasing materials or services key to

our processes and products, we must:

select our suppliers carefully, then only use

those on our approved lists or those approved
by our customers

monitor how well they meet our needs using

QS-9000 as the basis

always specify exactly what we require and

provide technical leadership to our suppliers.

! If we have materials or products on "Free

Issue" from our customers, we must:

ensure we can easily identify them

handle and store them as carefully as we

would our own materials

report any damage/shortages or defects

back to the customer.
19

PRODUCT
IDENTIFICATION
AND
TRACEABILITY

8
PROCESS
CONTROL

INSPECTION
AND
TESTING

10

! We must be able to identify clearly our

products in a way which enables us to control
them. For example:

what is it?

when was it made?

where was it made?

what specification was used?

which customer was it sent to?

! By examining our business process from

beginning to end, we can identify those
activities which affect Quality. We will then:

provide written instruction to control those

activities

set standards to be worked to and ensure

our processes are capable of meeting them

monitor that the standards are being met

in the way we have described

look to continuously improve our processes in

consultation with our customers.

! We must have planned inspection/verification at

all critical stages of our processes:

at receipt of raw material and packaging

during the production process

on completion of the finished product

during storage, packaging and distribution.

20

CONTROL OF
INSPECTION,
MEASURING AND
TEST EQUIPMENT

11

INSPECTION
AND TEST
STATUS

12

! We must ensure that any control equipment

is calibrated e.g. scales, gauges, time/
temperature controls.
They must be on a controlled list and we must:

be able to measure to the accuracy we

require

protect so that they remain reliable

maintain to ensure continuing accuracy

mark with a unique identification mark

and with next check date

calibrate by trained personnel to set

methods.

! We need a way of identifying the test or

inspection status of the product throughout
design, production, storage and delivery.
It should be easy to see:

whether the product has been inspected/

tested

whether or not it is acceptable

who is authorized to make decisions about

its release to the customer.

21

CONTROL OF
NON-CONFORMING
PRODUCT

13
CORRECTIVE AND
PREVENTIVE
ACTION

14

HANDLING,
STORAGE,
PACKAGING,
PRESERVATION
AND DELIVERY

15

! If a product does fail, we must make sure that:

it is segregated from good stock to avoid

being used by mistake

only authorized decisions are taken about

whether to reprocess or reject it

we plan to reduce the level of non-conforming

product.

! Whenever a problem occurs or we can see it

might occur, we must:

correct it immediately (if that is possible)

formally investigate the cause

take action to prevent it happening again

document and check that the actions have

been effective

analyze processes to determine potential

problems.

! At all stages of our process we must handle,

store, package and label our materials/products
in such a way as to encourage good stock rotation
and prevent:

damage

contamination

deterioration

misuse

! Our goal is 100% on time delivery.

22

CONTROL OF
QUALITY
RECORDS

16

INTERNAL
QUALITY
AUDITS

17
TRAINING

18

! Records which demonstrate that we are doing

what we say we are, must be:

identified

legible

accurate

filed to keep them safe

easily retrieved

retained for the period of time we specify or

by agreement with our customers.

! Our internal audit process will ensure that we:

examine the activities we perform against

what we have planned to do

control the Planning, Performance,

Reporting and Follow-up of the audit

have suitably trained, independent

personnel to carry out the audits.

! To make sure we have the right people for the

right jobs we will need to:

identify peoples training needs

provide that training in the most

appropriate way

keep records of that training

ensure activities affecting Quality are only

assigned to people with the appropriate
knowledge and skills

evaluate the effectiveness of training provided.

23

SERVICING

19
STATISTICAL
TECHNIQUES

! Where servicing is carried out as part of our

normal business contract, we must control:

the design and use of equipment used

the use of trained and qualified personnel

stocks of spare parts and their availability

working methods.

! Wherever we use sampling methods or apply

analysis, we should base them on established

statistical techniques.

20
Section II - SECTOR SPECIFIC REQUIREMENTS
PRODUCTION PART
APPROVAL PROCESS

! Before going into full scale production of a

part/component, it is normally necessary to

submit a sample to our customer. In addition,
we also need to provide supporting data which:

shows that the part/component meets our

customer's requirements

is properly recorded and filed

confirms that the relevant materials used

have been purchased from approved sources.

24

CONTINUOUS
IMPROVEMENT

2
MANUFACTURING
CAPABILITIES

! Continuous Improvement is important.

We must:

develop specific and measurable

improvement projects

provide evidence that we are continually

improving our processes in the short,
medium and long term.

! In order to demonstrate that we possess the

necessary manufacturing capabilities, we must

show that:

when planning facilities, equipment and

processes, input from cross-functional
teams is considered

the layout of our plant is designed to

manufacture products in an efficient and
effective manner

we have production processes or built-in

design features which prevent the
manufacture of non-conforming product

all tooling and gauges used meet design

specifications and are properly managed.

Section III - CUSTOMER SPECIFIC REQUIREMENTS

In addition to the above, there is a need for us to
meet any customer specific requirements
requested by Chrysler/Ford/General Motors or
Truck Manufacturers. These requirements
normally advise us of additional controls we need
to implement in order to satisfy our customers'
needs and ensure we get it right first time - every
time!
25

SO... HOW CAN YOU HELP?..

You can help in a number of different ways.
So that we take into consideration what we presently do and how we do
it, we need to involve all of our people.
Your input will be important when we begin to:

examine our processes

develop our QMS
implement the documentation
review and audit the QMS

ITS GOT TO BE RIGHT

BECAUSE I HELPED
TO PRODUCE IT

We will write the documents ourselves

to ensure that they are accurate. That
way the QMS will be based on what
we do, not what we think we do.
YOU CAN HELP US DO THIS.

When we audit the QMS

we are only fooling ourselves
if we are not open and honest.

YOU COULD BE INVOLVED AS AN AUDITOR OR AN AUDITEE

26

ITS YOUR QMS TO HELP MEET

YOUR CUSTOMERS REQUIREMENTS.

WE TALK ABOUT QUALITY ALL THE

TIME - EVEN AT LUNCH

OF COURSE I
BELIEVE IN QUALITY
- I CAUSE IT!

YOU CAN HELP TO BRING ABOUT IMPROVEMENT

IN THE QUALITY OF OUR SERVICE AND
ENCOURAGE OTHERS TO DO THE SAME.

REMEMBER.....WE ARE ALL INVOLVED IN QUALITY.

27

WE NEED THE COMMITMENT OF EVERY

EMPLOYEE OF THE COMPANY TO MAKE OUR QMS WORK
PEOPLE CAN SUGGEST IDEAS...

AUDIT WILL GIVE US IMPROVEMENT IDEAS...

MEASUREMENT WILL GIVE US IMPROVEMENT OPPORTUNITIES...

OUR QUALITY MANAGEMENT SYSTEM WILL ENSURE

THAT WE NEVER SLIP BACK.

y
alit
Qu
t
c
du
ess
Pro tiven ency
ec Effici
fits ing
f
f
E d
d ene
g
an rease er B Chan
Incustom se to s
C pon eed
N
s
sts
Re arket
Co
M
ced
u
d
Re

OUR AIM IS
CONTINUAL IMPROVEMENT!
28

This booklet was prepared by Bywater

for use in conjunction with in-company
Quality Awareness and Education
programs.
Bywater Ltd. 2003
The copyright of the material herein is
vested in Bywater Ltd. Neither the
whole nor any part of this document
may be disclosed to any third party or
be reproduced, stored in any retrieval
system or transmitted in any form by
any means (electronic, mechanical,
reprographic, recording or otherwise)
without the prior consent of the
copyright owner.

Europe

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A Bywater Quality Awareness Publication

2003