Chair’s Message Fall 2006

Happy Holidays to all:

photo: Dak Murthy
Dak Murthy

If you missed our annual September 58th Ott conference this year at Rutgers Newark, you missed an exciting meeting with great topics and great speakers. I also got a chance to meet and greet many of you.

We also held our October general meeting recently Bud gave a great presentation on "Force Field Analysis".

I look forward meeting all of you for our November 14th General meeting.  Dr. William Latzko will give his presentation on “Control Charts: What They Are”. He is a great speaker and recognized for his presentations throughout the industry.  I look forward meeting all of you.

In keeping with our objectives, the Deming Conference (December Atlantic City) is already set for 2007. The program details are complete. We set the Conference for the week of December 4 through December 8, 2006, returning to the Tropicana Hotel in Atlantic City. Those of you that attended in 2005, I am sure will agree this is a first class location and one of the most educational Conferences offered anywhere in the world. This conference is the lifeblood of this section.

Check our Web site ( for more details.

We are already working on the 2007 Annual Metropolitan (59th OTT) Section Conference.  We are looking for volunteers to work on mailing lists, publicity, registration, and arrangements. If you would like to work on the committee please let me know.

You can reach me at Anyone
wishing to present or exhibit at the 2007 Annual Metropolitan Section should also let me know.

Remember you are also welcome to attend an executive board meeting, check the schedule and register by contacting:

Mr. William I. Martin
Customized Management Systems, Ltd.
18-65 211 St Suite 2F
Bayside, NY 11360-1814
By Phone/Fax:
(718) 631-2375

We have submitted our business plan for the 2006/2007-year. We have set many goals and we will strive to achieve with your support. I have the privilege to serve as chair of the Metro section. Without your support or input, we may not be addressing your concerns or needs as members. So feel free to contact any board member, or me, we need your input.

Have a wonderful Thanksgiving

Dak Murthy P.E.; CQE; C.Q.M.
Chair 2006 – 2007

Past Chair’s Message

Hello Fellow members:

Photo: Joe Borden
Joe Borden

The time has come to pass the torch, so to speak, to the new Chair. Check the Web site for the slate of officers for the 2006 – 2007 year.

The 2005 – 2006 ASQ calendar year is over. I look back and wonder where the time went; we held one of our most successful Deming Conferences ever this year. We also had some success on the local level, but it never ceases to amaze me as to why the regular section meetings are so poorly attended.

At the executive board level we continue to excel, attendance is great and the board meetings are always a challenge. Our latest Section Award brings us the Silver Level. I hope that next years Chair can announce that we achieved the Gold level.

The new slate of officers is ready to take over and our planning sessions for events for the next year are almost complete. I hope as you get to read this; the 2006 – 2007 events calendar will be up and running.

The 2006 Deming Conference (December Atlantic City) is set. The Conference will be held the week of December 4 through December 8, 2006 at the Tropicana Hotel in Atlantic City.

Please remember, if you are interested in any of our committees we are always open to new executive board members and need your support. 

The 58th Annual Metropolitan (OTT) Section Conference and returned to the Rutgers Campus in Newark New Jersey for the 2006 conference. We are looking for volunteers to work on mailing lists, publicity, registration, and arrangements for the 2007 Conference. If you would like to work on the committee please let us know. You can reach us at Anyone wishing to present or exhibit at the 2007 Annual Metropolitan Section should also let us know.

Remember you are also welcome to attend an executive board meeting, check the schedule and register with:

Mr. William I. Martin
Customized Management Systems, Ltd.
18-65 211 St Suite 2F
Bayside, NY 11360-1814
By Phone/Fax:
(718) 631-2375

It has been a privilege to serve as Chair of the Metro section.

Joe Borden P.E.; CQA
Metro Section Chair 2005 – 2006

Sustainability and Quality

Photo: W. J. Latzko, Ph.D.
W. J. Latzko, Ph.D.
The concept of sustainability has been around for some decades. The recent Conference in New York on Global Initiative saw several billion dollars pledged, much of which helps to achieve sustainability. So what is sustainability?

The Bruntland Report (The UN World Commission on Environment and Development) developed a definition in 1987 that read: “Sustainable development meets the needs of the present without compromising the ability of future generations to meet their own needs.” Or, as Professor James Weldon of Fordham University put it, “Sustainability is having a seat when the music stops.”

For many years, the use of natural resources without replenishment was the norm in the Industrial revolution. The resources were so plentiful that no one thought that we could deplete them. Unlike nature, that recycles, we have great areas of waste. Environmental Standards such as ISO 14000 attempt to address this issue. But, the problem goes further. Sustainability goes beyond environmental issues. As Hitchcock and Willard (2006) stated, “Sustainability is different from the environmental movement in that it recognizes the need for a healthy economy. Nature does have certain limits that we must learn to live within or suffer the consequence.” They concluded, “We need to get better, not bigger”.

Of the roughly six billion people on Earth one billion lives well. (That is us.) About two billion get by. The other three billion have trouble surviving. This division is a source of conflict. Sustainability can help bring all this population to a level of living that we wish for.

So where does quality come in. There are certain aspects where we, as quality professionals, have already done much good. Our profession helps in the reduction of waste and the efficient use of our resources.

We can do more.

We can help in the design for environment. When our organizations plan new products and services, we can use our specialized knowledge to make sure that they plan on the replenishment of resources.

We can help them with Life Cycle Assessment and Life Cycle Costing. (This reminds me of Deming’s, “Don’t buy on Price Tag Alone”).

We can help in getting rid of harmful products in creating added value and help make sure that at the end of its useful life the residual of the products do not cause harm. We should ask if the materials we plan to use are or will become one of five classes: carcinogens, teratogens (cause birth defects), endocrine disruptors, mutagens (cause mutation of genetic code), or persistent bioaccumulative toxins ( PBT- harmful chemicals that accumulate in the body).

Deming showed us that our profession can help in another aspect of sustainability: the creation of jobs. He said that if we improve quality → costs decrease because of less rework, fewer mistakes, fewer delays, snags → productivity improves → capture the market with better quality and price → stay in business → provide jobs and more jobs!

Clearly, quality plays a big role in sustainability.

Reference List

Hitchcock, D. E. & Willard, M. L. (2006). The Business Guide to Sustainability: Parctical Strategies and Tools for Organizations. London: Earthscan.

2006 Certification Results

Congratulations to the following members who recently passed their ASQ Certification Examinations in June.

Certified Quality Auditor:
Leana S. Rahman
Michael Dodoo
Kristen P. Force
James R. Jenkins
Symon G. Syjongtian

Certified Quality Engineer:
Phillip Fischer

Certified Improvement Associate:
Nidal Eid

Six Sigma Green Belt
Kris R. Crosby

Certified Software Quality Engineer
Shachar Kedem

NY/NJ Metropolitan Section Officers for 2006-2007


Dakshina (Dak) K. Murthy

(201) 955-5783

Chair Elect

Joseph Paperman

(516) 293-0949 x13

Vice Chair

Susan K. Watson

(718) 558 3881


Tom Barlow

(516) 293-0949 x39


Joseph G. Borden

(646) 252-3940

Past Chair

Joseph G. Borden

(646) 252-3940

2006– 2007 Committee Chairs




Arrangements Chair

Satish Larioa

(732) 549-7539

Audit Committee Chair

Satish Laroia

(732) 549-7539

Awards Chair

Satish Larioa

(732) 549-7539

Deming Conference

Walter Young
Satish Laroia

(610) 341-5640

(732) 549-7539

Education Committee

Louis Pasteelnick
Russell A Ferretti

(973) 895-3523
(212) 672-1222

Examining Committee Chair

William I. Martin

(718) 631 -2375

Hospitality Committee Russell A Ferretti
Louise Johnson
(212) 672-1222
(646) 252-3950
Internet Liaison Chair

William J. Latzko

(201) 868-5338

Koality Kid Chair

William P. Werner

(973) 627-2450

Membership Chair

Andrew W. Frohn (718) 558-3870

N.E.Q.C. Council Delegate

Louis Pasteelnick

(973) 895-3523

Newsletter Editor

William J. Latzko

(201) 868-5338

Nominating Committee Chair

Satish Larioa

(732) 549-7539


William I. Martin

(718) 631 -2375

Section Management Chair Susan K. Watson
(718) 558 3881
SharePoint Manager Ruth Pennoyer
(973) 325-7592

NJ Governor’s Award for Performance Excellence to be Presented at QNJ Annual Conference

By Tom Ligas, Executive Director QNJ

The Governor’s Award for Performance Excellence will be presented to three organizations at Quality New Jersey’s 17th Annual Conference on May 16, 2006 by either Governor Jon Corzine or Gary Rose, Head of the Governor’s Office of Economic Growth and Chair of the Governor’s Economic Council. This award, which uses the Malcolm Baldrige National Quality Award criteria, recognizes organizations that have demonstrated successful results through the deployment of a comprehensive integrated quality framework.

The recipients of the 2005 Governor’s Award for Performance Excellence are Reimbursement Services Inc., Jersey Shore University Medical Center and Virtua Health. All three will receive the Bronze Level Governor’s Award.

Reimbursement Services Inc. is an employee benefits brokerage and consulting firm headquartered in Mt. Laurel with 73 employees and serving small and mid-size companies throughout New Jersey, Eastern Pennsylvania, Northern Delaware and Manhattan, New York.

Jersey Shore University Medical Center in Neptune is a division of Meridian Hospitals Corporation, within Meridian Health. It is a university affiliate of The University of Medicine and Dentistry of New Jersey’s (UMDNJ) Robert Wood Johnson Medical School. JSUMC has about 2,900 employees and provides inpatient care, outpatient care, emergency care and community care.

Virtua Health is a non-profit healthcare delivery system, headquartered in Marlton. It is the result of a 1998 merger between Memorial Health Alliance and West jersey Health System, which have been serving South jersey for more than a century. Virtua Health has hospitals, ambulatory surgical centers, out-patient services, long-term care and sub-acute rehabilitation facilities, and a medically-based fitness center.

Quality New Jersey will also recognize two organizations for taking another step along their Quality journey via Baldrige-based assessments – Raritan Valley Community College and Cablevision NJ Field Operations.

At the conference, the First Annual Best Practices in Business Award will be presented to RCI Vacation Network Group for their “Topgrading: Building Capabilities for Execution” initiative addressing employee talent management. This award was selected from the First Annual Best Practices in Business Conference held February 2, 2006. NJBIZ publisher Chad Beatty welcomed sixty people from a variety of organizations and functions to hear ten presentations designed to share best practices from the business community. The Second Annual Best Practices in Business Conference will be held in February 2007.

A re-presentation of the Second Annual Innovation in State Government Award will also occur at QNJ’s Annual Conference. On May 1, 2006 QNJ and the NJ State Department of Personnel will co-presented this Award to the Department of Transportation for their “Best Management Practices in Transportation Security – Partnership Between the Public and Private Sectors” initiative. Special Merit Innovation Awards will also be presented to the NJ Housing & Mortgage Finance Agency for their “NJ Housing Resource Center” initiative and to the NJ Lottery for their “Harnessing The Power Of Cultural Differences For Successful Multi-Cultural Collaboration” initiative.

These awards were selected from the Fourth Annual Best Practices in State Government Workshop held October 19, 2005. State Treasurer John McCormac welcomed 90 attendees from various state government departments. The conference, designed to share best practices among state agencies, to recognize the good work being done in government and to allow for networking opportunities, featured 14 presentations selected from a record 37 submissions. Attendees gave the workshop high marks. “I was happy to say I worked for the State of New Jersey after this conference” said a DOT employee. A Labor & Workforce Development employee remarked “I can say this was the best conference I ever attended”.

In October 2006, the Fifth Annual Best Practices in Government Workshop will be open to all government organizations in NJ, including local and federal.

QNJ, a private not-for profit organization, administers the Governor’s Award for Performance Excellence and advises organizations of all sizes and in all segments, including business, education, healthcare, government and non-profit, on improving their performance. By participating in QNJ, organizations can share best practices, benchmark other organizations, and receive Baldrige training and discounted consulting services. In addition to identifying improvement opportunities, the Governor’s Award process and two other Baldrige-based assessments provide valuable consulting advice for a fraction of what it would cost to obtain it elsewhere. For more information on QNJ, please visit

Sarbanes-Oxley and Quality Control

Photo: W. J. Latzko, Ph.D.
W. J. Latzko, Ph.D.

The purpose of the act

There is a great deal of interest by the quality community in the Sarbanes-Oxley act of 2002 (H. R. 3763). Senator Paul S. Sarbanes and Congressman Michael G. Oxley, created this act to set rules for CEO’s, CFO’s, their attorneys, and their auditors for the creation of financial reports used by investors (e.g. Annual Reports). What prompted this act was the disclosure of major wrong doings in large corporations and major auditing firms. The purpose of the act is to give investors the truth, the whole truth and nothing but the truth.

The alphabet soup

The act spawned a whole set of acronyms which refer to its implementation and interpretation. One hears of SOX, PCAOB, COSO, COBIT and similar acronyms. We will try to clarify some of these terms and show how they fit in.

The act’s requirements and the PCAOB

SOX refers to the Sarbanes-Oxley act itself. One can find the 66 pages of the act at It is worth reading but be warned that it is not light reading.

Title I, the first real chapter of the act, sets up a non-profit corporation called the Public Company Accounting Oversight Board (PCAOB). It is the function of the PCAOB “to oversee the audit of public …, in order to protect the interests of investors and further the public interest in the preparation of informative, accurate, and independent audit reports for companies the securities of which are sold to, and held by and for, public investors.”

The act requires the PCAOB to set standards and register public accounting firms. Your editor was told that over 1200 firms have applied and that, to-date, over 800 are registered. You see can full details at the PCAOB’s web site under “Registration”.

The act uses the words “quality control” 15 times with four additional mentions of the word “quality”. In all cases, this refers to the auditing firm. The use of the word “quality” relates solely to the financial integrity of the audit report issued by the external auditors.

Sections 302 and 404 require that management establish and maintain internal controls. In both cases, these controls are for assuring that the financial reports are accurate and true. Welytok (2006, p. 156) distinguishes the way the term “internal Control” is used in the two sections. She indicates that in Section 302, the act refers to “disclosure controls and procedures. In Section 404 the act refers to “internal control over financial reporting”. Nowhere does the act require quality control of the audited company.


Since companies collect most financial data these days on computers, the IT Governing Institute (ITGI) established a standard for information technology (IT). This set of standards they call, “Control Objectives for Information and Related Technology”. This standard results in the acronym COBIT. You can access the standard at . The organization developed a subset that specifically addresses the financial aspects required by Sarbanes-Oxley. The organization places the subset standard on its web site at


COSO stands for the Committee of Sponsoring Organizations of the Treadway Commission. “The SEC specifically refers to [COSO] as an acceptable framework for management’s internal control assessment.” (Welytok, 2006, p. 159) Again, the issue is financial reporting not quality control in the sense in which we apply it.

Sarbanes-Oxley and Quality

The Sarbanes-Oxley act has some similarities with ISO 9000. Both are inspection or audit oriented. Both are procedure driven. Both maintain the status quo as far as quality is concerned. In this writer’s opinion, the Sarbanes-Oxley act is valuable for the financial and investing sector. It does not advance quality in its present state. The only group required to look at quality control is the public auditing profession of 800 to 1200 firms. One can read their quality control methods at by going to the bottom of the page and entering the name of an Audit Firm. The PCAOB has set some interim standards for the control of quality of the auditors. One can view these standards at

Reference List

Welytok, J. G. (2006). Sarbanes-Oxley for Dummies.