University of Moratuwa Sri Lanka CONSTRAINTS IN IMPLEMENTATION OF ISO 9000 QUALITY MANAGEMENT SYSTEM ELEMENTS IN SRI LANKAN INDUSTRIES AND THEIR CAUSES Master of science in Operational Research Department of Mathematics E M S N EKANAYAKE September 2004 University of Moratuwa 82329 5 i oh- 5 1 £b°O0b. 8 3 82329 CONSTRAINTS IN IMPLEMENTATION OF ISO 9000 QUALITY MANAGEMENT SYSTEM ELEMENTS IN SRI LANKAN INDUSTRIES AND THEIR CAUSES E M S N EKANAYAKE This thesis was submitted to the department of Mathematics of the University of Moratuwa is a partial fulfilment of the requirements for the degree of Master of Science Department of Mathematics University of Moratuwa Sri Lanka September 2004 DECLARATION The work presented in the thesis in part or whole has not been submitted for any other academic qualification at any institution. E M S N Ekanayake (Candidate) Dr. M Indralingam (Supervisor) iii ABSTRACT This research indicates that ISO 9000 elements that relate to an organization quality system are hard to implement compared to elements that relate to operational procedures. The elements that are identified as difficult to implement and related to an organization quality system are: corrective and preventive actions, design control, management responsibility, statistical techniques, process control, document and data control and quality system. The elements that are perceived as easy to execute are: inspection and test status, packaging, preservation and delivery, and inspection and testing. In addition, it has been found that companies that market their products in foreign countries, or engage in intense interaction with foreign partners, perceive a lesser difficulty in practicing the requirements of ISO 9000 series of standards compared to companies that do not have fair market shares in foreign countries, or lack of foreign interactions. iv ACKNOWLEDGEMENT It is with greatest respect and veneration that I express my sincere thanks to my supervisor Dr. M Indralingam, The Coordinator of the MSc in Operational Research of Department of Mathematics, University of Moratuwa. Without the knowledge, advice and guidance, which was imparted to me by my supervisor I may not have been able to complete the project successfully. I would like to take this opportunity to thank, The Head of the Department and all the staff members of the Department of Mathematics, University of Moratuwa. I would also like to thank Mr A Wickramasooriya, The Director of Sri Lanka Standards Institution, Mrs. M B D Neelakanthi, The Assistant Director of Sri Lanka Standards Institution, and all the industrial personnel participated in questionnaire survey, for providing me relevant information and data to carry out this research. It is my obligation to thank all my friends for their support and I gratefully acknowledge the support and encouragement given by my family. » CONTENTS Pre-chapters Page No: Title i Declaration ii Abstract iii Acknowledgement iv Contents v List of tables vii Chapters 1.0 Introduction and Research Problem 1 1.1 Introduction to ISO 9000 1 1.2 Overview of ISO 9000 series of standards 1 1.3 How ISO standards benefit society 3 1.4. Research Problem 5 2.0 Literature Review 9 3.0 Methodology & Hypothesis testing 15 3.1 Methodology 15 3.2 Hypothesis testing 16 4.0 Analysis of Results 17 4.1 Causes of obtain the ISO 9000 Certification 17 4.2 Constraints in implementation of ISO 9000 elements 17 4.3 The links between Causes of obtain the ISO 9000 Certification With Constraints in implementation of ISO 9000 elements 19 4.4 The link between Foreign Market Share with Constraints in implementation of ISO 9000 elements 22 4.5 The link between Company's ownership with Constraints in implementation of ISO 9000 elements 22 4.6 Advantages of the implementation of ISO 9000 25 4.7 The links between Causes of obtain the ISO 9000 Certification with Advantages of the implementation of the ISO 9000 27 vi 5.0 Discussion & Conclusion 29 5.1 Constraints in implementation of ISO 9000 elements 29 5.2 The links between Causes of obtain the ISO 9000 Certification with Constraints in implementation of the ISO 9000 elements 30 5.3 The link between Foreign Market Share with Constraints in implementation of the ISO 9000 elements 32 5.4 The link between company's ownership with Constraints in implementation of the ISO 9000 elements 33 5.5 Advantages of the implementation of the ISO 9000 34 5.6 The links between Causes of obtain the ISO 9000 Certification with Advantages of the implementation of the ISO 9000 35 5.7 Conclusion 36 References 38 Appendix 1 40 Appendix II 44 Appendix III 48 vii f LIST OF TABLES Table Page 4.2 Mean scores of the constraint levels in implementation of twenty 18 ISO 9000 elements 4.3 T- test results for Causes of obtain the ISO 9000 Certification with 20 Constraints in implementation of ISO 9000 elements 4.4 T-test for Market share with Constraints in implementation of ISO 23 elements 4.5 T-test for Company ownership with Constraints in implementation of 24 ISO 9000 4.6 The links between Causes of obtain the ISO 9000 Certification with 26 Advantages of the implementation of ISO 9000 Appendix 1 1. Test results for Causes of obtain the ISO 9000 Certification with 40 Constraints in implementation of ISO 9000 elements 2. Test results for Foreign Market Share with Constraints in implementation 41 of ISO 9000 elements 3. Test results for company's ownership with Constraints in implementation 42 of ISO 9000 elements 4. Test results for Causes of obtain the ISO 9000 Certification with 43 Advantages of the implementation of ISO 9000 Appendix III Correspondence between ISO 9001:1994 and ISO 9001:2000 44 viii