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4.1 Introduction to JIT Production System

The just-in-time (JIT) inventory system is a management strategy that aligns raw-material orders
from suppliers directly with production schedules. Companies employ this inventory strategy to
increase efficiency and decrease waste by receiving goods only as they need them for the
production process, which reduces inventory costs. This method requires producers to forecast
demand accurately.
JIT - Background and History
JIT is a Japanese management philosophy which has been applied in practice since the early 1970s
in many Japanese manufacturing organizations. It was first developed and perfected within the
Toyota manufacturing plants by Taiichi Ohno as a means of meeting consumer demands with
minimum delays. Taiichi Ohno is frequently referred to as the father of JIT.
Toyota was able to meet the increasing challenges for survival through an approach that focused
on people, plants and systems. Toyota realized that JIT would only be successful if every
individual within the organization was involved and committed to it, if the plant and processes
were arranged for maximum output and efficiency, and if quality and production programs were
scheduled to meet demands exactly.
JIT manufacturing has the capacity, when properly adapted to the organization, to strengthen the
organization’s competitiveness in the marketplace substantially by reducing wastes and improving
product quality and efficiency of production.
There are strong cultural aspects associated with the emergence of JIT in Japan. The Japanese
work ethic involves the following concepts.

 Workers are highly motivated to seek constant improvement upon that which already
exists. Although high standards are currently being met, there exist even higher standards
to achieve.

 Companies focus on group effort which involves the combining of talents and sharing
knowledge, problem-solving skills, ideas and the achievement of a common goal.

 Work itself takes precedence over leisure. It is not unusual for a Japanese employee to
work 14-hour days.

 Employees tend to remain with one company throughout the course of their career span.
This allows the opportunity for them to hone their skills and abilities at a constant rate
while offering numerous benefits to the company.
These benefits manifest themselves in employee loyalty, low turnover costs and fulfilment of
company goals.
JIT Focuses on doing work systematically by removing excess work, eliminate waste (MUDA),
unevenness (MURA) and unreasonableness (MURI) and raise their productivity.

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Just in Time or JIT is a management philosophy that strives to eliminate the sources of
manufacturing waste by producing the right part in the right place at the right time.

How Does Just-in-Time Inventory Work?

The just-in-time (JIT) inventory system minimizes inventory and increases efficiency. JIT
production systems cut inventory costs because manufacturers receive materials and parts as
needed for production and do not have to pay storage costs. Manufacturers are also not left with
unwanted inventory if an order is canceled or not fulfilled.
One example of a JIT inventory system is a car manufacturer that operates with low inventory
levels but heavily relies on its supply chain to deliver the parts it requires to build cars on an as-
needed basis. Consequently, the manufacturer orders the parts required to assemble the vehicles
only after an order is received.
For JIT manufacturing to succeed, companies must have steady production, high-quality
workmanship, glitch-free plant machinery, and reliable suppliers.
Advantages and Disadvantages of JIT
JIT inventory systems have several advantages over traditional models. Production runs are short,
which means that manufacturers can quickly move from one product to another. Also, this method
reduces costs by minimizing warehouse needs. Companies also spend less money on raw materials
because they buy just enough resources to make the ordered products and no more.

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 Quality and Reliability Engineering (3171929)
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The disadvantages of JIT inventory systems involve potential disruptions in the supply chain. If a
raw-materials supplier has a breakdown and cannot deliver the goods promptly, this could
conceivably stall the entire production line. A sudden unexpected order for goods may delay the
delivery of finished products to end clients.
4.2 Kanban System
A Kanban system is a means to achieve Just-in-time (JIT) production. It works on the basis that
each process on a production line pulls just the number and type of components the process
requires, at just the right time. The mechanism used is a Kanban card. This is usually a physical
card but other devices can be used. Two kinds of Kanban cards are mainly used:
A Withdrawal Kanban - specifies the kind and quantity of product which a manufacturing process
should withdraw from a preceding process. The withdrawal Kanban illustrated (right) shows that
the preceding process which makes this part is forging, and the person carrying this Kanban from
the subsequent process must go to position B-2 of the forging department to withdraw drive
pinions. Each box of drive pinions contains 20 units and the shape of the box is `B'. This Kanban
is the 4th of 8 issued. The item back number is an abbreviation of the item.

A Production-ordering Kanban - specifies the kind and quantity of product which the preceding
process must produce. The one illustrated (right) shows that the machining process SB-8 must
produce the crankshaft for the car type SX50BC-150. The crankshaft produced should be placed at
store F26-18. The production-ordering Kanban is often called an in-process Kanban or simply a
production Kanban.

Using Kanban on a production line

Each process (area, cell) on the production line has two Kanban `post-boxes', one for withdrawal
and one for production-ordering Kanban. At regular intervals a worker takes withdrawal Kanban
that have accumulated in his process post-box, and any empty pallets, to the location where
finished parts (components, assemblies) from the preceding process are stored. Each full pallet has
attached to it one or more production-ordering Kanban which he removes and puts in the

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appropriate post-box belonging to the process that produced the parts. The worker now attaches a
withdrawal Kanban to the pallet and takes it back to his own process area. When this new pallet
begins to be used, its withdrawal Kanban is put back into the withdrawal post-box. At each process
on the line, production-ordering Kanban are periodically removed from their post-box and used to
define what parts and quantities to produce next.
When and How Kanban are effective
Kanban help simplify planning and to fine-tune production to meet changing customer demand of
up to + or - 10%. The system requires planned monthly and weekly production schedules. Kanban
simplify day to day flexibility, and changes to the production schedule need only to be given to the
final assembly process and will then automatically work their way back up the line. Kanban
systems can be tightened by removing cards or by reducing the number of parts on a pallet. The
effect will be to speed the flow through the process and hence reduce lead times. However, it also
makes the system more vulnerable to breakdowns and other causes of dislocation. By identifying
the areas within the line that are causing disruption, efforts can be made to improve them. Thus,
the overall efficiency of the line is raised by tackling the key points
Other types of Kanban also used are Supplier Kanban - to withdraw goods from external suppliers,
and two types of Signal Kanban, which are inserted near the bottom of a stack of items. These
automatically initiate production of batch produced items when the stock reaches a pre-set re-order
level.
Single card Kanban systems
In a single-card Kanban system, parts are produced and bought according to a daily schedule, and
deliveries to the user are controlled by a `conveyancing' (withdrawal) Kanban. In effect, the single-
card system is a push system for production coupled with a pull system for delivery to the point of
use. Single-card Kanban controls deliveries very tightly, so that the using work centre never has
more than a container or two of parts and the stock point serving the work centre is eliminated.
Single-card systems work well in companies in which it is relatively easy to associate the required
quantity and timing of component parts with the schedule of end products. These are usually
companies with a relatively small range of end products, or products which are not subject to
rapid, unexpected changes in demand levels.
Case study Kanban

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4.3 JIT and Quality Production

4.4 Total Productive Maintenance (TPM):

TPM was developed in 1960 and consist of 5S foundation and eight supporting activities.
The goal is to achieve:
1.No breakdowns
2.No Small stops or slow running
3.No Defects
4.NO accidents
8 Pillars of TPM:

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1. Autonomous maintenance: Autonomous maintenance means ensuring your operators are fully
trained on routine maintenance like cleaning, lubricating and inspecting, as well as placing that
responsibility solely in their hands. This gives machine operators a feeling of ownership of
their equipment and increases their knowledge of the particular piece of equipment. It also
guarantees the machinery is always clean and lubricated, helps identify issues before they
become failures, and frees up maintenance staff for higher-level tasks.
Implementing autonomous maintenance involves cleaning the machine to a "baseline" standard
that the operator must maintain. This includes training the operator on technical skills for
conducting a routine inspection based on the machine's manual. Once trained, the operator sets
his or her own autonomous inspection schedule. Standardization ensures everyone follows the
same procedures and processes.
2. Focused improvement: Focused improvement is based around the Japanese term "kaizen,"
meaning "improvement." In manufacturing, kaizen requires improving functions and processes
continually. Focused improvement looks at the process as a whole and brainstorms idea for
how to improve it. Getting small teams in the mindset of proactively working together to
implement regular, incremental improvements to processes pertaining to equipment operation
is key for TPM. Diversifying team members allows for the identification of recurring problems
through cross-functional brainstorming. It also combines input from across the company so
teams can see how processes affect different departments.
In addition, focused improvement increases efficiency by reducing product defects and the
number of processes while enhancing safety by analyzing the risks of each individual action.
Finally, focused improvement ensures improvements are standardized, making them repeatable
and sustainable.
3. Planned maintenance: Planned maintenance involves studying metrics like failure rates and
historical downtime and then scheduling maintenance tasks based around these predicted or
measured failure rates or downtime periods. In other words, since there is a specific time to
perform maintenance on equipment, you can schedule maintenance around the time when
equipment is idle or producing at low capacity, rarely interrupting production.
Additionally, planned maintenance allows for inventory buildup for when scheduled
maintenance occurs. Since you'll know when each piece of equipment is scheduled for
maintenance activities, having this inventory buildup ensures any decrease in production due
to maintenance is mitigated.
Taking this proactive approach greatly reduces the amount of unplanned downtime by
allowing for most maintenance to be planned for times when machinery is not scheduled for
production. It also lets you plan inventory more thoroughly by giving you the ability to better
control parts that are prone to wear and failure. Other benefits include a gradual decrease in
breakdowns leading to uptime and a reduction in capital investments in equipment since it is
being used to its maximum potential.
4. Quality maintenance: All the maintenance planning and strategizing in the world is all for
naught if the quality of the maintenance being performed is inadequate. The quality
maintenance pillar focuses on working design error detection and prevention into the

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production process. It does this by using root cause analysis (specifically the "5 Whys") to
identify and eliminate recurring sources of defects. By proactively detecting the source of
errors or defects, processes become more reliable, producing products with the right
specifications the first time.
Possibly the biggest benefit of quality maintenance is it prevents defected products from
moving down the line, which could lead to a lot of reworks. With targeted quality
maintenance, quality issues are addressed, and permanent countermeasures are put in place,
minimizing or completely eliminating defects and downtime related to defected products.
5. Early equipment management: The TPM pillar of early equipment management takes the
practical knowledge and overall understanding of manufacturing equipment acquired through
total productive maintenance and uses it to improve the design of new equipment. Designing
equipment with the input of people who use it most allows suppliers to improve
maintainability and the way in which the machine operates in future designs.
When discussing the design of equipment, it's important to talk about things like the ease of
cleaning and lubrication, accessibility of parts, ergonomically placing controls in a way that is
comfortable for the operator, how changeovers occur and safety features. Taking this approach
increases efficiency even more because new equipment already meets the desired
specifications and has fewer startup issues, therefore reaching planned performance levels
quicker.
6. Training and education: Lack of knowledge about equipment can derail a TPM program.
Training and education apply to operators, managers and maintenance personnel. They are
intended to ensure everyone is on the same page with the TPM process and to address any
knowledge gaps so TPM goals are achievable. This is where operators learn skills to
proactively maintain equipment and identify emerging problems. The maintenance team learns
how to implement a proactive and preventive maintenance schedule, and managers become
well-versed in TPM principles, employee development and coaching. Using tools like single-
point lessons posted on or near equipment can further help train operators on operating
procedures.
7. Safety, health and environment: Maintaining a safe working environment means employees
can perform their tasks in a safe place without health risks. It's important to produce an
environment that makes production more efficient, but it should not be at the risk of an
employee's safety and health. To achieve this, any solutions introduced in the TPM process
should always consider safety, health and the environment.
Aside from the obvious benefits, when employees come to work in a safe environment each
day, their attitude tends to be better, since they don't have to worry about this significant
aspect. This can increase productivity in a noticeable manner. Considering safety should be
especially prevalent during the early equipment management stage of the TPM process.
8. TPM in administration: A good TPM program is only as good as the sum of its parts. Total
productive maintenance should look beyond the plant floor by addressing and eliminating
areas of waste in administrative functions. This means supporting production by improving
things like order processing, procurement and scheduling. Administrative functions are often

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the first step in the entire manufacturing process, so it's important they are streamlined and
waste-free. For example, if order-processing procedures become more streamlined, then
material gets to the plant floor quicker and with fewer errors, eliminating potential downtime
while missing parts are tracked down.

ISO 9000 Family

The ISO 9000 family is a set of five quality management systems (QMS) standards by the
International Organization for Standardization (ISO) that help organizations ensure they meet
customer and other stakeholder needs within statutory and regulatory requirements related to a
product or service. ISO 9000 deals with the fundamentals of QMS, including the seven quality
management principles that underlie the family of standards. ISO 9001 deals with the requirements
that organizations wishing to meet the standard must fulfill. ISO 9002 is a model for quality
assurance in production and installation. ISO 9003 for quality assurance in final inspection and
test. ISO 9004 gives guidance on achieving sustained organizational success.
Third-party certification bodies confirm that organizations meet the requirements of ISO 9001.
Over one million organizations worldwide are independently certified, making ISO 9001 one of
the most widely used management tools in the world today. However, the ISO certification process
has been criticized as being wasteful and not being useful for all organizations.
ISO 9000 series Quality Management Principles

1. Customer focus

 Understand the needs of existing and future customers

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 Align organizational objectives with customer needs and expectations

 Meet customer requirements

 Measure customer satisfaction

 Manage customer relationships

 Aim to exceed customer expectations

 Learn more about the customer experience and customer satisfaction

2. Leadership

 Establish a vision and direction for the organization

 Set challenging goals

 Model organizational values

 Establish trust

 Equip and empower employees

 Recognize employee contributions

 Learn more about leadership

3. Engagement of people

 Ensure that people’s abilities are used and valued

 Make people accountable

 Enable participation in continual improvement

 Evaluate individual performance

 Enable learning and knowledge sharing

 Enable open discussion of problems and constraints

 Learn more about employee involvement

4. Process approach

 Manage activities as processes

 Measure the capability of activities

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 Identify linkages between activities

 Prioritize improvement opportunities

 Deploy resources effectively

 Learn more about a process view of work and see process analysis tools

5. Improvement

 Improve organizational performance and capabilities

 Align improvement activities

 Empower people to make improvements

 Measure improvement consistently

 Celebrate improvements

 Learn more about approaches to continual improvement

6. Evidence-based decision making

 Ensure the accessibility of accurate and reliable data

 Use appropriate methods to analyze data

 Make decisions based on analysis

 Balance data analysis with practical experience

 See tools for decision making

7. Relationship management

 Identify and select suppliers to manage costs, optimize resources, and create value

 Establish relationships considering both the short and long term

 Share expertise, resources, information, and plans with partners

 Collaborate on improvement and development activities

 Recognize supplier successes

 Learn more about supplier quality and see resources related to managing the supply
chain

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Evolution of ISO 9000 standards

1987 version

ISO 9000:1987 had the same structure as the UK Standard BS 5750, with three "models" for
quality management systems, the selection of which was based on the scope of activities of the
organization:

 ISO 9001:1987 Model for quality assurance in design, development, production,

installation, and servicing was for companies and organizations whose activities included
the creation of new products.

 ISO 9002:1987 Model for quality assurance in production, installation, and servicing had
basically the same material as ISO 9001 but without covering the creation of new products.

 ISO 9003:1987 Model for quality assurance in final inspection and test covered only the
final inspection of finished product, with no concern for how the product was produced.

1994 version

ISO 9000:1994 emphasized quality assurance via preventive actions, instead of just checking final
product, and continued to require evidence of compliance with documented procedures. As with
the first edition, the down-side was that companies tended to implement its requirements by
creating shelf-loads of procedure manuals, and becoming burdened with an ISO bureaucracy. In
some companies, adapting and improving processes could actually be impeded by the quality
management system.

2000 version

ISO 9001:2000 replaced all three former standards of 1994 issues, ISO 9001, ISO 9002, and ISO
9003. Design and development procedures were required only if a company does, in fact, engage
in the creation of new products. The 2000 version sought to make a radical change in thinking by
actually placing front and center the concept of process management (the monitoring and
optimization of a company's tasks and activities, instead of just inspection of the final product).
The 2000 version also demanded involvement by upper executives in order to integrate quality
into the business system and avoid delegation of quality functions to junior administrators.
Another goal was to improve effectiveness via process performance metrics: numerical
measurement of the effectiveness of tasks and activities. Expectations of continual process
improvement and tracking customer satisfaction were made explicit.

ISO 9000 Requirements include:

 Approve documents before distribution;

 Provide correct version of documents at points of use;

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 Use your records to prove that requirements have been met; and

 Develop a procedure to control your records.

2008 version

ISO 9001:2008 in essence re-narrates ISO 9001:2000. The 2008 version only introduced
clarifications to the existing requirements of ISO 9001:2000 and some changes intended to
improve consistency with ISO 14001:2004. There were no new requirements. For example, in ISO
9001:2008, a quality management system being upgraded just needs to be checked to see if it is
following the clarifications introduced in the amended version.

ISO 9001 is supplemented directly by two other standards of the family:

 ISO 9000:2005 "Quality management systems. Fundamentals and vocabulary"

 ISO 9004:2009 "Managing for the sustained success of an organization. A quality

management approach"
2015 version
In 2012, ISO TC 176 – responsible for ISO 9001 development – celebrated 25 years of
implementing ISO 9001[43] and concluded that it was necessary to create a new QMS model for
the next 25 years. They subsequently commenced the official work on creating a revision of ISO
9001, starting with the new QM principles. This moment was considered by important specialists
in the field as the "beginning of a new era in the development of quality management systems." As
a result of the intensive work from this technical committee, the revised standard ISO 9001:2015
was published by ISO on 23 September 2015. The scope of the standard has not changed;
however, the structure and core terms were modified to allow the standard to integrate more easily
with other international management systems standards.
The new ISO 9001:2015 management system standard helps ensure that consumers get reliable,
desired quality goods and services. This further increases benefits for a business.
The 2015 version is also less prescriptive than its predecessors and focuses on performance. This
was achieved by combining the process approach with risk-based thinking, and employing the
Plan-Do-Check-Act cycle at all levels in the organization.
Some of the key changes include:

 High-Level Structure of 10 clauses is implemented. Now all new management system

standards released by ISO will have this high-level structure

 Greater emphasis on building a management system suited to each organization's particular

needs

 A requirement that those at the top of an organization be involved and accountable,

aligning quality with wider business strategy

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 Risk-based thinking throughout the standard makes the whole management system a
preventive tool and encourages continuous improvement

 Less prescriptive requirements for documentation: the organization can now decide, in
addition to the mandatory documents and records, what documented information it needs
and in what format it should be

 Alignment with other key management system standards through the use of a common
structure and core text

 Inclusion of Knowledge Management principles

 Quality Manual & Management representative (MR) are no longer mandatory

ISO 14000 Series
ISO 14000 is a family of international standards that provide guidance and tools for organizations
to improve their environmental performance.
Other standards in the family include ISO 14004 (Guidance on Environmental Management
Systems), ISO 14015 (Environmental Assessment of Sites and Organizations), and ISO 14024
(Environmental Labeling).
The ISO 14000 family was first developed due to a rising need for standard operating procedures
and policies for businesses to use to build their own EMS.
Basic principles of ISO 14000
There are a number of important concepts at the core of the ISO 14000 family of standards,
including the Plan-Do-Study-Act cycle, continuous improvement, and broader incentives for
environmental maintenance and management.
What is an EMS?
An EMS, or environmental management system, is a set of policies and procedures designed to
help organizations:

 Reduce negative environmental impact

 Improve efficiency and operational effectiveness

Just like a quality management system, an EMS is a set of guidelines for continuous improvement,
based on proven methods of business process management and optimization.
It’s essentially a statement of:

 What the EMS is going to do

 How it’s going to do it

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 Who’s going to do it

 And when it will get done

An effective EMS is made up of clearly defined policies and procedures, actionable steps, and
well-documented records of the responsibilities and accountabilities of all relevant personnel.
Here are the six core elements of an EMS, according to the ISO 14001 standard:
1. Environmental policy
Clearly outline the environmental policy.
This is a clearly written statement outlining a business’s objectives and targets, in the context of
their environmental policy. It includes principles on environmental sustainability as well as
performance indicators relating to the EMS.
Policy should always be clearly communicated both internally and externally, as well as fully
implemented.
2. Planning
Make complete, thorough plans for implementing the EMS.
With clear, thorough planning, organizations stand to assess the environmental impact of all
operations. The purpose of planning is to develop a process for identifying compliance
requirements, documenting targets and objectives, and creating a plan for deployment.
3. Implementation
After planning, this step involves the execution of those plans.
This step will also incorporate adjustments and even building of new processes to adapt to
changing requirements. It’s important that organizations clearly define, document, and
communicate their implementation procedures for purposes of training and compliance
contingency. Well-documented processes also make it easier to improve upon those processes.
Scope of this section also includes emergency response planning and preparedness.
4. Study & correct
After implementing the most basic EMS, observe how it functions, and make corrections or
optimizations as needed.
This step involves the management of new and existing procedures to make sure KPIs are hit and
that the EMS is functioning as it should be. Organizations will benefit from establishing a system
for documentation as well as conducting audits of the EMS.
5. Management review

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This could really tie in with the previous section, but it’s important to have a distinguished review
of the EMS conducted by management, to make sure that everything is functioning within the
scope of successful performance. Management will be best positioned to assess this kind of
effectiveness.
6. Continuous improvement
Every EMS will utilize principles of continuous improvement to enable organizations to optimize
all aspects of the system.
Through establishment of targets and objectives in the context of wider environmental goals,
organizations can achieve continuous process improvement with methods such as Plan-Do-Study-
Act.
Principles of environmental management
Standards outlined in the ISO 14000 family are designed with key principles of environmental
management in mind:
1. To encompass environmental management systems and the environmental aspects of
products
2. To not be restricted by country or region
3. To uphold and promote public interest as well as the interests of those who use and be
affected by the standards
4. To be cost-efficient, robust, and adapt to many different needs, requirements, and
circumstances, at any scale, globally
5. As part of their flexibility, to be suitable for internal and/or external verification
6. To utilize scientific evidence and principles
7. To continuously improve upon existing principles of environmental management
8. To be actionable, practical, and useful for organizations using them
Benefits of ISO 14000 compliance
1. Improved environmental performance
2. Improved internal management
3. Improved company image and customer satisfaction
4. Improved public relations
5. Improved government relations
6. Improved profits

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7. Increased corporate social responsibility

8. Optimized resource allocation and organization
9. More satisfied stakeholders and employees
10. Advantages over competition in various markets
11. Fewer non-tariff trade barriers
12. Fewer regulatory problems and inspections
13. Probably fewer fines related to compliance and regulation
14. Reduced overhead costs
15. Reduced insurance costs
16. Reduced costs of production
QS 9000
Quality System Requirements QS-9000 defines the fundamental quality system expectations of
Chrysler, Ford, General Motors, participating truck manufacturers and other subscribing
companies for internal and external suppliers of production and service parts and materials.
QS-9000 was developed by the Chrysler/Ford/General Motors Supplier Quality Requirements
Task Force, with a lot of help from various support groups such as the Automotive Industry Action
Group, the Supplier Advisory Council and the International Organization for Standardization.
Previously, each company developed their own expectations for supplier quality systems and the
corresponding assessment documents. Thus, QS-9000 is a harmonization of Chrysler's Supplier
Quality Assurance Manual, Ford's Q-101 Quality System Standard and GM's North American
Operations Targets for Excellence, with input from truck manufacturers. QS-9000 supersedes all
of these documents and GM Europe's General Quality Standard for Purchased Materials.
Applicability and deadlines
QS-9000 applies worldwide to all internal and external suppliers of production and service parts
and materials to the Big Three and to participating truck manufacturers. Requirements vary among
the Big Three. Chrysler requires all tier-one suppliers to be registered by July 31, 1997. GM
requires registration by December 31, 1997. Both Chrysler and GM require third-party
registration. At this time, Ford does not require third-party registration. Instead, Ford has stated
that its suppliers must be in compliance. Ford has threatened that there will be stiff penalties if a
supplier claims to be in compliance but then fails an audit conducted by Ford.
Given the approaching deadlines, the level of effort required and the fact that registrars have
backlogs of business, it will be virtually impossible for all tier-one suppliers to meet the stated
deadlines. This causes speculation that the Big Three may offer some tolerance on meeting these

Prepared By: Mr. Amit Thakkar, Mr. Tushar Thakar

 Quality and Reliability Engineering (3171929)
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dates, but any supplier who has not responded appropriately to these requirements and deadlines is
risking losing business.
In order to qualify as a new supplier to the Big Three, the supplier must first be compliant with
QS-9000. Therefore, those companies that may be serving only the aftermarket now but who have
a strategic intent to move into the OEM business are advised to become registered.
Relationship to ISO 9000

QS-9000 requirements divide into three sections, the first of which is based on the ISO 9001
standard.

Section I: ISO 9000-Based Requirements. This section is the most comprehensive of the three
sections and contains the overall architecture for the quality system. The architecture is precisely
the same as in ISO 9001. That is, it groups all requirements into one of 20 subsets called elements.
Every element and every word of ISO 9001 is repeated. However, other requirements, agreed to by
the Big Three, are added to each element, expanding this section by about 50 percent more than
ISO 9001. Thus, although Section I is "based" on ISO 9001, it goes deeper into each of the 20
elements and is significantly more demanding. See the sidebar on page 68 for an identification of
the 20 elements.

Section II: Sector-Specific Requirements. This section describes requirements on three topics that
are not in ISO 9001:

1. -- Production Part Approval Process -- verifies that production changes produce

acceptable products and are acceptable to their customers.

2. -- Continuous Improvement -- a fundamental tenet of QS-9000 aimed at opportunities

for improvement in quality, delivery and cost.

3. -- Manufacturing Capabilities -- for examination and ongoing control of the

manufacturing facilities, planning processes, tool design and fabrication, and tooling
management. In effect, by adding Section II, the elements are expanded from 20 to 23.

Section III: Customer-Specific Requirements. This section provides requirements that are unique to
either Chrysler, Ford, GM or the truck manufacturers.

Comparing QS-9000 with ISO 9000

There are very significant differences in QS-9000 compared with ISO 9001. They include:

 QS-9000 is much more prescriptive. ISO 9001 describes what must be done, but there is
flexibility in how you do it. By contrast, QS-9000 often states how something must be
done.

Prepared By: Mr. Amit Thakkar, Mr. Tushar Thakar

 Quality and Reliability Engineering (3171929)
Semester VII

Chapter Name-4: JUST IN TIME, QUALITY MANAGEMENT, TOTAL PRODUCTIVE

MAINTANANCE AND ISO

 To satisfy QS-9000, suppliers must be able to demonstrate that their quality system is,
indeed, effective. You must keep quality records of gains accomplished while developing
and implementing the QS-9000 requirements because the registrar will insist on proof of
gains as a condition for registration.
Contrary to a logical assumption, being ISO 9000 registered does not attest to the quality of
your products nor to the effectiveness of your procedures. The core requirements to gain an
ISO 9000 registration is that you document what you do and you demonstrate to the
registrar that you are doing what you have documented.
Some companies foolishly approach ISO 9000 as an exercise in documentation, failing to
see the business improvement opportunity that a legitimate project offers. In the end, they
gain nothing but a claim that they are registered. What's worse, they have locked
themselves into current procedures, many of which may be neither efficient nor effective.

 QS-9000 requires suppliers to manage and develop their supply base. For example, they
shall require 100-percent on-time delivery performance from their subcontractors, and they
must have a system for monitoring their delivery performance, including tracking premium
or excessive freight. You must perform subcontractor quality system development using
sections I and II of QS-9000 as a fundamental quality system requirement.

 QS-9000 requires suppliers to establish and document an inventory management system to

continuously optimize inventory turns over time, assure stock rotation and minimize
inventory levels.

 QS-9000 requires suppliers to have a documented process for determining customer

satisfaction.

 For key process equipment, QS-9000 requires a preventive maintenance plan, including
predictive maintenance methods.

 There must be provisions for a continuous improvement system. Suppliers must

demonstrate knowledge of various measures and techniques for continuous improvement,
and they shall use those that are appropriate, such as: cost of quality, design of
experiments, value analysis and benchmarking.
These and other differences -- far too many to list here -- make QS-9000 far more difficult,
rigorous and demanding to implement than ISO 9000. The good news is that it is such a superb
template for running a business, that companies would be well-advised to gain compliance
with it, regardless of whether a customer requires it. Approached properly, companies can
make big gains in both the market side and the cost side of their business.
Observed trends in quality systems
At the present, the QS-9000 requirements are imposed on tier-one suppliers only. But, with the
specific requirement to develop their tier-two suppliers, it's only a matter of time until we see the
requirements being directly or indirectly imposed throughout the industry's customer supply chain.

Prepared By: Mr. Amit Thakkar, Mr. Tushar Thakar

 Quality and Reliability Engineering (3171929)
Semester VII

Chapter Name-4: JUST IN TIME, QUALITY MANAGEMENT, TOTAL PRODUCTIVE

MAINTANANCE AND ISO

The government has dropped quality specifications like MIL-Q-9858A, which it has used for years
to control suppliers, in favor of ISO 9000.
As in the automotive industry, other industries are using ISO 9000 as a base, then adding
supplements to develop their own industry-specific quality standards. For example, the aerospace
industry has just released a new standard, ASE ARD9000, that mirrors the general architecture and
intent of QS-9000. It defines the fundamental quality system expectations of the government,
Boeing and other major airframe companies for internal and external suppliers of production and
service parts and materials.
All suppliers of production and service parts and materials, for any major industry, will be wise to
take heed. Eventually, business and growth in stockholder value will go to those who have
developed effective quality systems with provisions for continuous improvement. Others will
disappear, or be so far down the supply chain that they will be of little consequence.

Prepared By: Mr. Amit Thakkar, Mr. Tushar Thakar