Standards and Standardization for SMEs and Subcontractors Jose Edgar S. Mutuc [email protected]...

Standards and Standardization for SMEs and Subcontractors

Standards and Standardization for SMEs and SubcontractorsJose Edgar S. [email protected] Edgar S. [email protected]

Business ManagementBusiness Management

What does an owner/manager manage?

How does he know what is right or what is wrong with what he is managing?

Does everybody in the organization know what is right and what is wrong?

What does an owner/manager manage?

How does he know what is right or what is wrong with what he is managing?

Does everybody in the organization know what is right and what is wrong?

Supply chain managementSupply chain management

Management as applied to suppliers and subcontractors

Management requires a basisSTANDARDS

Management as applied to suppliers and subcontractors

Management requires a basisSTANDARDS

What are standards?What are standards?

http://www.ilo.org/public/english/index.htm

http://www.ilo.org/public/english/index.htm

What are standards?What are standards?

Standards are preferred output and/or performance

To make a stand and make operational a philosophy, principle or value

To maintain and improveInternal organizational processesCustomer satisfaction processesAttainment of other external

requirements

Standards are preferred output and/or performance

To make a stand and make operational a philosophy, principle or value

To maintain and improveInternal organizational processesCustomer satisfaction processesAttainment of other external

requirements

Types of standardsTypes of standards

Conceptual and concrete standards

Product and process standards Internal standards and external

standards International, national and

industry standardsQuantitative and qualitative

standards

Conceptual and concrete standards

Product and process standards Internal standards and external

standards International, national and

industry standardsQuantitative and qualitative

standards

Product standardsProduct standards

Letter size bond paper = 8.5” x 11”

ATM and credit cards = 5.4cm x 8.5cm

A, AA and AAA batteriesFilms 110, 135Big Macs and quarter pounders

Letter size bond paper = 8.5” x 11”

ATM and credit cards = 5.4cm x 8.5cm

A, AA and AAA batteriesFilms 110, 135Big Macs and quarter pounders

Domestic & Commercial, Sports & Leisure Equipment

Domestic & Commercial, Sports & Leisure Equipment

Automatic controls for household use

Body care equipment Cleaning appliances Domestic commercial and industrial

heating appliances Electric heaters Gas heaters Heaters in general Heaters using other sources of

energy Liquid fuel heaters Solid fuel heaters Domestic electrical appliances in

general Equipment for children Equipment for entertainment Camping equipment and camp-

sites Equipment for entertainment in

general

Automatic controls for household use

Body care equipment Cleaning appliances Domestic commercial and industrial

heating appliances Electric heaters Gas heaters Heaters in general Heaters using other sources of

energy Liquid fuel heaters Solid fuel heaters Domestic electrical appliances in

general Equipment for children Equipment for entertainment Camping equipment and camp-

sites Equipment for entertainment in

general

• Other equipment for entertainment• Playgrounds• Theatre, stage and studio equipment and work stations• Toys• Furniture• Home economics in general• Home textiles. Linen• Items of art and handicrafts• Kitchen equipment• Cooking ranges, working tables, ovens and similar appliances• Cookware, cutlery and flatware• Dishwashers• Domestic refrigerating appliances• Trolleys for supermarket use• Sports equipment and facilities Musical instruments

REPUBLIC OF THE PHILIPPINESDEPARTMENT OF LABOR

ManilaDEPARTMENT ORDER NO. 4



Pursuant to Section 2 of Republic Act No. 679, as further amended by Presidential Decree No. 148, commonly known as the Woman and Child Labor Law, the following occupations are hereby declared hazardous to young workers, without prejudice to other occupations that may subsequently be declared as such:

HAZARDOUS OCCUPATIONS TO YOUNG WORKERS A. Farming, Fishing, Hunting, Logging, and Related

Occupations fishermen (deep sea and offshore) divers of (sponge, pearl and shell) logging (as cutter, sawyer, stripper, cable installer, feller) charcoal burner (big scale)

Pursuant to Section 2 of Republic Act No. 679, as further amended by Presidential Decree No. 148, commonly known as the Woman and Child Labor Law, the following occupations are hereby declared hazardous to young workers, without prejudice to other occupations that may subsequently be declared as such:

HAZARDOUS OCCUPATIONS TO YOUNG WORKERS A. Farming, Fishing, Hunting, Logging, and Related

Occupations fishermen (deep sea and offshore) divers of (sponge, pearl and shell) logging (as cutter, sawyer, stripper, cable installer, feller) charcoal burner (big scale)





D. Craftsman, Production, Process and Related Occupations spinners and winders (textile) fiber and plastic preparers bleacher, dyer and finisher of textiles using chemicals tool maker, machinist, plumber, welder, flame cutter and

plater electrical and electronic fitter sawyer and woodworking machine setter and operator furnace and oven workers in brick making furnace man and kilnman in the manufacture of glass

and ceramics distiller of alcoholic beverages tanner blacksmith, hammersmiths, forgeman slaughtering and killing large cattle (carabao, cow,

horses) extraction of lard and oil

D. Craftsman, Production, Process and Related Occupations spinners and winders (textile) fiber and plastic preparers bleacher, dyer and finisher of textiles using chemicals tool maker, machinist, plumber, welder, flame cutter and

plater electrical and electronic fitter sawyer and woodworking machine setter and operator furnace and oven workers in brick making furnace man and kilnman in the manufacture of glass

and ceramics distiller of alcoholic beverages tanner blacksmith, hammersmiths, forgeman slaughtering and killing large cattle (carabao, cow,

horses) extraction of lard and oil

The ISO 9000 family is primarily concerned with "quality management". This means what the organization does to fulfill:

the customer's quality requirements, and

applicable regulatory requirements, while aiming to enhance customer satisfaction, and achieve continual improvement of its

performance in pursuit of these objectives.

The ISO 9000 family is primarily concerned with "quality management". This means what the organization does to fulfill:

the customer's quality requirements, and

applicable regulatory requirements, while aiming to enhance customer satisfaction, and achieve continual improvement of its

performance in pursuit of these objectives.

International International Organization for Organization for StandardizationStandardization



The ISO 14000 family is primarily concerned with "environmental management". This means what the organization does to:minimize harmful effects on the

environment caused by its activities, and

to achieve continual improvement of its environmental performance.

The ISO 14000 family is primarily concerned with "environmental management". This means what the organization does to:minimize harmful effects on the

environment caused by its activities, and

to achieve continual improvement of its environmental performance.

McDonald’s Standards of Business Conduct


The promise of the Golden Arches

“The basis for our entire business isthat we are ethical, truthful and dependable.It takes time to build a reputation.We are not promoters. We are business people with a solid, permanent, constructive ethical program that will be in style

...years from now even morethan it is today.” — R a y K r o c , 1 9 5 7

The promise of the Golden Arches

“The basis for our entire business isthat we are ethical, truthful and dependable.It takes time to build a reputation.We are not promoters. We are business people with a solid, permanent, constructive ethical program that will be in style

...years from now even morethan it is today.” — R a y K r o c , 1 9 5 7



Personal Accountability We accept personal accountabilityWe communicate openly/Business Integrity LineWe act in the best interest of the System Our Commitment to Employees Human rights and the lawRespect and dignityHealth and safety Our Commitment to Customers Cleanliness and safetyMarketingFair competition and antitrust

Our Commitment to Business Partners and CompetitorsOwner/operator relationshipsSupplier relationshipsSharing informationCompetitor relationshipsGifts, favors & business entertainment

Personal Accountability We accept personal accountabilityWe communicate openly/Business Integrity LineWe act in the best interest of the System Our Commitment to Employees Human rights and the lawRespect and dignityHealth and safety Our Commitment to Customers Cleanliness and safetyMarketingFair competition and antitrust

Our Commitment to Business Partners and CompetitorsOwner/operator relationshipsSupplier relationshipsSharing informationCompetitor relationshipsGifts, favors & business entertainment



Our Commitment to Shareholders Corporate governance and internal controlsProtecting company assetsConfidential informationInside information and securities tradingBusiness records and communications Our Commitment to Communities The letter and spirit of the lawPolitical activitiesGovernment inquiriesEnvironmentCommunicating with the public

Our Commitment to Shareholders Corporate governance and internal controlsProtecting company assetsConfidential informationInside information and securities tradingBusiness records and communications Our Commitment to Communities The letter and spirit of the lawPolitical activitiesGovernment inquiriesEnvironmentCommunicating with the public

Wal-Mart’s ES ProgramWal-Mart’s ES Program

Wal-Mart’s ES program has four fundamental objectives:

1. Ensure compliance with legal requirements, as well as the additional requirements embodied in the

Wal-Mart Standards for Suppliers.2. Verify that suppliers and factory management

practices are in accordance with the Standards for Suppliers.

3. Ensure that the audit teams are executing the Ethical Standards program consistently.

4. Encourage adoption of changes through education of suppliers and factories that will result in an

improved quality of life for the workers who make the merchandise we

Wal-Mart’s ES program has four fundamental objectives:

1. Ensure compliance with legal requirements, as well as the additional requirements embodied in the

Wal-Mart Standards for Suppliers.2. Verify that suppliers and factory management

practices are in accordance with the Standards for Suppliers.

3. Ensure that the audit teams are executing the Ethical Standards program consistently.

4. Encourage adoption of changes through education of suppliers and factories that will result in an

improved quality of life for the workers who make the merchandise we

Work standardWork standard

Determinecustomer’s need

If complaint,

request customer’s

records

Receive & analyze

customer’s record

Provide info &

propose resolutio

n

Customer accepts

resolution

Update customer’s record

Not accept

GTE Directories customer-complaint resolution process

Workplace standardsWorkplace standards

Furniture standards are guidelines, which serve as tools for developing the physical components of a work environment.

They also enable organizations to link their strategic goals with effective workplace design.

Ultimately, standards serve as guidelines to maintain a consistent approach to cost, quality, design, and health and safety issue.

Furniture standards are guidelines, which serve as tools for developing the physical components of a work environment.

They also enable organizations to link their strategic goals with effective workplace design.

Ultimately, standards serve as guidelines to maintain a consistent approach to cost, quality, design, and health and safety issue.


From: Cornell University Ergonomics webhttp://ergo.human.cornell.edu/AHTutorials/typingposture.html


Workers maintain awkward shoulder, elbow, and wrist postures while sewing because of improper table height causing fatigue and health risks.

Workers maintain awkward shoulder, elbow, and wrist postures while sewing because of improper table height causing fatigue and health risks.

What are standards for?What are standards for?

“Create order out of chaos”Ensure desirabilityUniformity and consistencyInteroperability and interchangeabilityAnticipate and minimize problemsPredictability

Improve organizational measures such as efficiency, effectiveness, productivity and eventually profitability

“Create order out of chaos”Ensure desirabilityUniformity and consistencyInteroperability and interchangeabilityAnticipate and minimize problemsPredictability

Improve organizational measures such as efficiency, effectiveness, productivity and eventually profitability

Characteristics of standards

Characteristics of standards

Anticipated or required performance

Involves an need and objective Involves an agreement Involves a set of conditions and/or

circumstances Involves a period of time

Anticipated or required performance

Involves an need and objective Involves an agreement Involves a set of conditions and/or

circumstances Involves a period of time

What is standardization?What is standardization?

Process of producing technical specifications or precise criteria to be used as rules, guidelines or definitions

Adapting and implementing these specifications to ensure that the materials, products, services, processes and systems are interconnected

the activity consists of the processes of formulating, issuing and implementing standards.

Process of producing technical specifications or precise criteria to be used as rules, guidelines or definitions

Adapting and implementing these specifications to ensure that the materials, products, services, processes and systems are interconnected

the activity consists of the processes of formulating, issuing and implementing standards.

What and where to standardize

What and where to standardize

Standards for SMEs and subcontractors

Standards for SMEs and subcontractors

ProductProcessSkill and trainingTools and equipmentWork placeWork environmentGovernment

ProductProcessSkill and trainingTools and equipmentWork placeWork environmentGovernment

Setting up standardsSetting up standards

Identify the need, the area and objective

Determine quantitative and/or qualitative standard

Set up the standard and its conditions

Present and clarify the standardTrain Implement conditions and standardsMonitor and revise accordingly

Identify the need, the area and objective

Determine quantitative and/or qualitative standard

Set up the standard and its conditions

Present and clarify the standardTrain Implement conditions and standardsMonitor and revise accordingly

Standards at McDonald’sStandards at McDonald’s

Burger fat content is 17 – 22.5% (83% lean chuck and 17% choice plates)

French Fries scoopBag-in-box packaging for milk750 page franchisees operations

manual32 slices of 1 lb cheeseFrench fries to be cut 9/32 of an inch

thickEveryday windows have to be cleaned

Burger fat content is 17 – 22.5% (83% lean chuck and 17% choice plates)

French Fries scoopBag-in-box packaging for milk750 page franchisees operations

manual32 slices of 1 lb cheeseFrench fries to be cut 9/32 of an inch

thickEveryday windows have to be cleaned

Setting Fries Standards at McDonald’s

Setting Fries Standards at McDonald’s

Was not determined by temperature of oil in the vat

Variety of potato Curing of potatoes Solid contents Storage facilities at the farms Potatoes were perfectly cooked when

the oil in the vat recovered by 3 degrees from its low point => automated potato frying

Was not determined by temperature of oil in the vat

Variety of potato Curing of potatoes Solid contents Storage facilities at the farms Potatoes were perfectly cooked when

the oil in the vat recovered by 3 degrees from its low point => automated potato frying

Wal-Mart Ethical Standards Program Milestones


1992 Wal-Mart’s Factory Certification program was established, including Standards for Suppliers. Efforts were focused on Bangladesh and China.

1993-96 First Factory Certification program manual was developed, and began auditing factories directly

manufacturing for Wal-Mart.1997-2001 Factories in Egypt, Pakistan,

India, and Nicaragua were added.



2003 Wal-Mart began training its buyers, suppliers and factory managers on Wal- Mart Supplier Standards. More than 4,600 representatives of suppliers and factories were trained globally.

A product quality assurance program was also established, including reviews by internal audit.

2004 Trained more than 7,900 suppliers and factory managers, including officials

associated with the 1,100 new factories added to our program.

2003 Wal-Mart began training its buyers, suppliers and factory managers on Wal- Mart Supplier Standards. More than 4,600 representatives of suppliers and factories were trained globally.

A product quality assurance program was also established, including reviews by internal audit.

2004 Trained more than 7,900 suppliers and factory managers, including officials

associated with the 1,100 new factories added to our program.

“While other food retailers were spending 90 percent of their

time on the supply side of business, its suppliers allowed McDonald’s

to spend more time on operations.”

“While other food retailers were spending 90 percent of their

time on the supply side of business, its suppliers allowed McDonald’s

to spend more time on operations.”

Standards and Standardization for SMEs and Subcontractors Jose Edgar S. Mutuc [email protected]...

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