Powered by hydro and steam power, at the end of the 18th century mechanical production facilities began to replace human labour. What is today known as the Industrial Revolution allowed for a far more efficient use of resources such as labour and soil. During the Second Industrial Revolution towards the end of the 19th century manual labour started to be increasingly replaced by mass production (as developed by Frederick Winslow Taylor), the introduction of assembly-line work (promoted by Henry Ford) thanks to the use of electricity. The introduction of electronic control systems and information technology in the 1970s finally heralded the Third Industrial Revolution. All three industrial revolutions have brought about accelerated processes and a degree of automation. In an increasingly global market the Internet of Things (products, production facilities, tools) connects the real with the virtual world and Cyber Physical Systems (CPS) are the foundation of the Fourth Industrial Revolution (Industry 4.0 – see Figure 1). CPS is an umbrella term for software-intensive embedded systems (ES) which are based on connected, integrated hardware- and software components in products or industrial production facilities (smart production) that are able to communicate with each other. Exactly these global markets with geographically diverse production locations, the changes brought about by Industry 4.0, CPS and ES pose new challenges for the established process management systems of companies used to steer and manage suppliers and partners. These challenges pertain all Industries irrespective of the nature of the products and services produced. This paper will examine the requirements and opportunities that follow from these developments. In the second chapter will focus on the increasingly complex Business to Business (B2B) demands placed on Total Quality Management (TQM) systems in the context of the ‘Control of externally provided processes, products and services’. The central question of the term paper is to evaluate the extent of ISO norms can assume a supporting function in this regard, particularly such norms that belong to the ISO 9000 family. The starting point is chapter 8.4 of ISO norm 9001:2015 ‘Control of externally provided processes, products and services’.
Table of Contents
1 Introduction
2 New Drivers of Supplier and Partner Management Systems
2.1 Industry 4.0 and Internet of things (IoT) – Impact on present-day production
2.2 Smart Factory
2.3 Hybrid Value Creation
2.4 Demands of Industry 4.0 to Control of externally provided processes, products and services in the realm of Supply Chain Management (10)
2.5 IoT supply network places new demands on Supply Management
3 Control of externally provided processes, products and services
3.1 ISO 9000 family of quality standards
3.2 External Provider – Recommendations of the ISO 9000 Family
3.2.1 ISO 9000:2015 Fundamental
3.2.2 ISO 9001:2015 Requirements
3.2.3 ISO 9004 Guidelines
4 SWOT ISO 9001:2015 chapter 8.4: Control of externally…
4.1 Strengths
4.2 Weaknesses
4.3 Opportunities
4.4 Threats
5 TQM
6 Conclusion
Objective and Themes
This paper examines how ISO quality standards, particularly the ISO 9000 family, can support organizations in managing the complex challenges posed by Industry 4.0, IoT, and global B2B supply chains, with a specific focus on the control of externally provided processes, products, and services.
- Impact of Industry 4.0 and IoT on production and supply chain management.
- New requirements for supplier and partner integration in real-time environments.
- Evaluation of ISO 9001:2015 (Chapter 8.4) as a framework for controlling external providers.
- SWOT analysis of the ISO 9000 family in the context of digital transformation.
- Integration of broader TQM concepts for long-term organizational success.
Excerpt from the Book
2.2 Smart Factory
Smart Factory (German: „intelligente Fabrik“) is a term that originates in the field of production engineering research. It is part of the high-tech strategy of the German government and part of its project ‘Zukunftsprojekt Industry 4.0’. The term envisions a production environment in which production facilities and logistical systems are able to organize themselves without the need of human intervention. The technological basis are CPS that communicate with each other with the help of the Internet of Things. Part of this future scenario is the communication between product and production facility: products carry their respective production information in a machine-readable way, e.g. in the case of a radio: Frequency Identification Chips (RFID). On the basis of this data the path of the product through different production steps and facilities can be managed. Currently, there is also testing being carried out concerning the use of other transmission techniques such as WiFi, Bluetooth, color and QR codes. RFID are key innovation drivers in production and work processes as they allow for localization on the process level as well as for documentation and authentication of products and services. They are being used in products and the production process and offer new challenges as well as opportunities in the context of the supply chain process.
Summary of Chapters
1 Introduction: Provides an overview of the industrial revolutions and introduces the central research question regarding the role of ISO norms in managing external providers within the context of Industry 4.0.
2 New Drivers of Supplier and Partner Management Systems: Analyzes how technological shifts like Industry 4.0, IoT, and Smart Factories create new demands for supply chain management and supplier integration.
3 Control of externally provided processes, products and services: Examines how the ISO 9000 family of standards, including ISO 9001 and ISO 9004, addresses the requirements for managing external providers.
4 SWOT ISO 9001:2015 chapter 8.4: Control of externally…: Evaluates the strengths, weaknesses, opportunities, and threats associated with using ISO 9001:2015 to manage suppliers in a digital landscape.
5 TQM: Discusses how Total Quality Management expands upon ISO norms by treating quality as an overarching policy goal involving all employees and departments.
6 Conclusion: Summarizes the necessity of robust quality management frameworks for integrating suppliers in an increasingly digital and globalized industrial environment.
Keywords
Industry 4.0, Internet of Things, IoT, Smart Factory, Cyber Physical Systems, Supply Chain Management, ISO 9001:2015, Total Quality Management, TQM, Quality Management, Supplier Management, External Providers, Business to Business, B2B, Digital Transformation.
Frequently Asked Questions
What is the primary focus of this paper?
The paper evaluates how ISO standards, specifically the ISO 9000 family, can assist companies in controlling and integrating externally provided processes, products, and services amidst the challenges of Industry 4.0.
What are the key themes addressed?
The core themes include digital transformation in manufacturing (Industry 4.0/IoT), the resulting complexity in supplier management, and the applicability of quality management standards to these new technical realities.
What is the central research question?
The research seeks to determine to what extent ISO norms can function as a supporting framework for managing external providers in an era defined by connected, cyber-physical production systems.
Which scientific method does the author employ?
The author utilizes a literature-based analysis combined with a SWOT analysis to evaluate the effectiveness of the ISO 9001:2015 standard in the modern industrial context.
What is covered in the main body of the text?
The main body covers the technological drivers of Industry 4.0, the specific requirements of the ISO 9000 family, a detailed SWOT analysis of ISO 9001, and the role of TQM in fostering quality-driven organizational culture.
Which keywords define this work?
Key terms include Industry 4.0, Internet of Things (IoT), Smart Factory, Supply Chain Management, ISO 9001:2015, and Total Quality Management (TQM).
How does Industry 4.0 change the role of a supplier?
Suppliers evolve from traditional vendors into active, real-time integrated partners within the value creation chain, playing roles in development, innovation, and core production processes.
What is the significance of the "Smart Factory" concept here?
The Smart Factory represents a production environment where facilities and systems communicate via the Internet of Things without human intervention, necessitating new forms of process documentation and authentication.
Why does the author discuss the ISO 9001:2015 revision specifically?
The 2015 revision is critical because it shifted the terminology from simple "procurement" to the "control of externally provided processes, products and services," reflecting a more comprehensive view of supply chain risks and integrations.
- Quote paper
- Patrick Haug (Author), 2016, Control of Externally Provided Processes, Products and Services, Munich, GRIN Verlag, https://www.grin.com/document/415417
