New Edition of ISO 9004 – Path to Sustained Success

Performance Improvement Solutions for Your Business Needs December 2009

In this issue

  • New Edition of ISO 9004 – Path to Sustained Success
  • New ISO Standard for Effective Management of Risk
  • CMMI Versus ISO 9001
  • In the News
  • Training Courses
  • Greetings!

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    New Edition of ISO 9004 – Path to Sustained Success

    The just-published new edition of ISO
    9004 provides organizations with a model for
    sustained success in today’s complex, demanding,
    and ever-changing environment. ISO 9004:2009-
    “Managing for the sustained success of an
    organization-A quality management approach,”
    the third edition of the standard first published in
    1987. It is intended to support the achievement of
    sustained success by any organization, regardless of
    size, type, or activity, using a quality management

    “While the goal is initially to ensure the production
    of ‘good’ products and services, leading to the
    achievement of customer satisfaction, the longer-term
    purpose is to ensure the economic survival of the
    organization. The new edition gives guidance on how
    an organization should adopt a systematic approach
    to achieve this,” says Bob Alisic, leader of the task
    group responsible for the ISO 9004:2009.

    ISO 9004:2009 provides guidance for
    the continual improvement of an organization’s overall
    performance, efficiency, and effectiveness based on a
    process-based approach. It focuses on meeting the
    needs and expectations of customers and other
    relevant parties over the long term, and in a balanced

    Compared to ISO 9001:2008, which ensures
    quality management of products and services while
    enhancing customer satisfaction, ISO 9004:2009
    provides a broader perspective of quality
    management, particularly for performance
    improvement. It will prove useful to organizations
    whose top management wishes to move beyond ISO
    9001 in pursuit of ongoing improvement, measured
    through the satisfaction of customers and other

    ISO 9004:2009 allows organizations to enhance the
    quality of product and service delivery to their
    customers by promoting self-assessment as
    important tool to enable organizations to:

    • Benchmark their level of maturity, covering
      leadership, strategy, management system, resources,
      and processes
    • Identify their strengths and weaknesses
    • Identify opportunities for either improvements or
      innovation, or both.

    The self-assessment tool may
    become a
    key element during the strategic planning processes
    in any organization.

    “The objectives of
    customer satisfaction and product quality are
    extended in ISO 9004:2009 to include the satisfaction
    of interested parties and the performance of the
    organization. The combination of ISO 9001 and ISO
    9004 will allow you to get the most of your quality
    system,” says Jose Dominguez, a leader of the ISO
    9001 task group.

    ISO 9004:2009 replaces ISO 9004:2000. It
    makes substantial changes to the structure and
    contents of the earlier edition based on eight years’
    experience of implementing the standard worldwide,
    and introduces changes intended to improve
    consistency with ISO 9001 and other management
    system standards. An example of an important
    change (maybe the most important one) in the
    structure of ISO 9004, is that the “body” of the standard
    starts with the chapter giving guidance on how to
    manage an organization aiming for sustained
    success and not how to build a quality management

    Although ISO 9004:2009
    complements ISO 9001:2008 (and vice versa), it can
    also be used independently. It is not intended for
    third-party certification, regulatory, or contractual use,
    nor as a guide to the implementation of ISO
    . To help users get the best out of the
    standard, an annex gives a clause-by-clause
    correspondence between ISO 9001:2008 and ISO

    Purchase ISO 9004:2009 at the

    ANSI E-Store for $149.00
    or at the ASQ
    Store for $76.00, member price
    for a backorder

    New ISO Standard for Effective Management of Risk

    A new International Standard, ISO 31000:2009,
    Risk management – Principles and guidelines
    will help organizations of all types and sizes to
    manage risk effectively. ISO 31000 provides
    principles, framework and a process for managing
    any form of risk in a transparent, systematic and
    credible manner within any scope or

    At the same time, ISO is publishing

    ISO Guide 73:2009, Risk management
    , which complements ISO 31000 by
    providing a collection of terms and definitions relating
    to the management of risk.

    Kevin W. Knight,
    Chair of
    the ISO working group that developed the standard
    explains, “All organizations, no matter how big or
    small, face internal and external factors that create
    uncertainty on whether they will be able to achieve
    their objectives. The effect of this uncertainty is ‘risk’
    and it is inherent in all activities.” “In fact,” he
    continued “it can be argued that the global financial
    crisis resulted from the failure of boards and executive
    management to effectively manage risk. ISO 31000 is
    expected to help industry and commerce, public and
    private, to confidently emerge from the crisis.”

    The standard recommends that organizations
    develop, implement and continuously improve a risk
    management framework as an integral component of
    their management system.

    “ISO 31000 is a
    practical document that seeks to assist organizations
    in developing their own approach to the management
    of risk. But this is not a standard that organizations
    can seek certification to
    . By implementing ISO
    organizations can compare their risk management
    practices with an internationally recognized
    benchmark, providing sound principles for effective
    management. ISO Guide 73 will further ensure that all
    organizations are on the same page when talking
    about risk,” said Mr. Knight.

    ISO 31000 is designed to help organizations:

    • Be aware of the need to identify and treat risk
      throughout the organization
    • Improve the identification of opportunities and
    • Improve stakeholder confidence and trust
    • Establish a reliable basis for decision making and
    • Effectively allocate and use resources for risk
    • Enhance health and safety performance, as well
      as environmental protection

    ISO 31000 and ISO Guide 73 can be applied to any
    public, private or community enterprise, association,
    group or individual. The documents will be useful to:

    • Those responsible for implementing risk
      management within their organizations
    • Those who need to ensure that an organization
      manages risk
    • Those needing to evaluate an organization’
      practices in managing risk
    • Developers of standards, guides procedures and
      codes of practice relating to the management of risk.

    CMMI Versus ISO 9001

    The Software Engineering Institute (SEI) published a
    report earlier this year, CMU/SEI-2009-SR-005, that
    compares CMMI-Development, v1.2, to the ISO
    9001:2000 international quality standard. Note:
    Since the more recent ISO 9001:2008 edition didn’t
    add any new requirements or clause numbering to
    ISO 9001:2000, the SEI comparison remains valid.

    The report is meant for anyone with
    knowledge of either the Capability Maturity Model
    Integration (CMMI ) Product Suite or the International
    Organization for Standardization (ISO) 9000 family of
    standards, that is interested in learning more about
    the other process standard.

    The CMMI-DEV, v1.2, comparison to ISO 9001:2000
    notes their similarities and differences. The report
    points out that it is not intended to be an exhaustive or
    authoritative comparison, nor does it provide specific
    guidance for deciding which model or standard to

    Organizations that are implementing
    both ISO 9001 and the CMMI Development model will
    benefit from understanding the areas that are covered
    fully by both bodies of knowledge, as well as, areas
    not covered by both. While the two bodies of
    knowledge were developed independently and for
    different purposes, they have important connections
    and are largely consistent with each

    The report is organized into four
    sections. The first
    section provides a brief overview of the report’s focus
    and organization. The next two sections describe the
    two bodies of knowledge, i.e., the world of ISO 9000
    and the world of CMMI-DEV. The final section provides
    a comparative analysis of the two bodies of
    knowledge. Finally, the appendices identify the report
    contributors, acronyms, terminology differences,
    resources, and references.

    Download the 70 page Free Report in PDF format
    from SEI web page.

    In the News

    The American Society for Quality (ASQ) invites
    business professionals to register for a Free

    that spotlights how service quality measurement, data
    analysis, and planning can positively affect your
    business. The webinar, “Intro to Service Quality
    Measurement,” will be available on demand via the ASQ web site.

    Manufacturers Struggle to Hire High-Skilled
    Workers Despite Double-digit Unemployment

    employers across the country continue to shed
    hundreds of thousands of jobs, many manufacturers
    are facing an ironic dilemma. As they eliminate
    positions-mainly repetitive, assembly type jobs-they
    still have unfilled job openings for high-skilled
    workers. According to a recent survey conducted by
    Deloitte, The Manufacturing Institute, and
    Oracle, “almost one-third of responding companies
    report some level of shortages today.”

    shortages of high-skilled workers are particularly
    acute within “the most profitable companies,
    aerospace and defense, and life science sectors,”
    and among “skilled production workers, scientists,
    and engineers.” “This is certainly an employer’s
    market, but not as much with manufacturers,” says
    Mark C. Tomlinson, executive director and general
    manager of the Society of Manufacturing Engineers.

    The survey also shows that many
    manufacturers are “not acting” on finding these types
    of workers or are depending on largely
    ineffective “traditional approaches to managing and
    developing their employees,” like current performance,
    rather than on the latest “talent management trends”
    such as “lean and industry-recognized skills

    Respondents to this survey also
    reported dissatisfaction with the skills of their cur­rent
    employees. Nearly half indicated many workers have
    inadequate basic employability skills, such as
    attendance, timeliness, and work ethic, while 46
    percent reported inadequate problem-solving skills,
    and 36 percent indicated insufficient reading, writing,
    and communication skills.

    Baldrige Program Calls for

    Each year the Baldrige
    Program recruits experts from business, education
    organizations, health care providers, nonprofit
    organizations, and other groups to serve on the Board
    of Examiners for the Malcolm Baldrige National Quality
    Award. Examiners evaluate applications for the award
    and prepare feedback reports to applicants that cite
    strengths and opportunities for

    The application form for the
    2010 Board of Examiners is now available online.

    Applications must be submitted electronically; the
    deadline is 2 p.m. EST on Jan. 7, 2010.

    ASQ Lean and Six Sigma Conference

    ASQ Lean and Six Sigma
    – 10th Anniversary March 8-9th, 2010
    Phoenix, Arizona. Learn from proven firsthand
    applications, technical applications, and best

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