Prepared By: Amos Ojwang

Dept Managemnt Science

TOPIC ONE

Introduction

Whatever type of organization you work in – a hospital, a university, a bank, an

insurance company, local government, an airline, a factory – competition is rife:
competition for customers, for students, for patients, for resources, for funds.
Any organization basically competes on its reputation – for quality, reliability,
price and delivery – and most people now recognize that quality is the most
important of these competitive weapons. If you doubt that, just look at the way
some organizations, even whole industries in certain countries, have used quality
to take the heads off their competitors.
American, British, French, German,
Italian, Japanese, Spanish, Swiss, Swedish organizations, and organizations from
other countries have used quality strategically to win customers, steal business
resources or funding, and be competitive. Moreover, this sort of attention to
quality improves

For any organization, there are several aspects of reputation which are important:
1 It is built upon the competitive elements of quality, reliability, delivery, and
price, of which
quality has become strategically the most important.
2 Once an organization acquires a poor reputation for quality, it takes a very long
time to
change it.
3 Reputations, good or bad, can quickly become national reputations.
4 The management of the competitive weapons, such as quality, can be learned
like any
other skill, and used to turn round a poor reputation, in time.

The total quality concept as a business strategy began to grow in popularity in the
United States in the late 1980s and early 1990s. However, individual elements of
the concept — such as team building, problem-solving tools,
statistical process control, design of experiments, customer service, and process
documentation — have been used by some organizations for years.

1
Total quality management (TQM) is the integration of all functions
and processes within an organization in order to achieve continuous
improvement of the quality of goods and services. The goal is customer
satisfaction

1.1 HISTORICAL DEVELOPMENT OF TQM

 Quality Inspection Stage

Quality Management started with simple inspection-based systems. Under such a system, one
or more characteristics of a product are examined or tested and compared with specified
requirements to assess its conformity (Kanji and Asher, 1993).

This system is used to appraise incoming products, manufactured components and assemblies
at appropriate points in the production process. It is undertaken mainly by staff employed
specifically for this purpose. Products which do not conform to specifications may be scrapped,
reworked or sold as lower quality items. In some cases, inspection is used to grade the finished
products. The system is an after-the-fact screening process with no prevention content other
than, perhaps, the identification of suppliers, operations in workers’ manufacturing non-
conforming products.

 Quality control stage.

Under a system of quality control, product testing and documentation control become the way
to ensure greater process control and reduced non-conformance to quality standard. Typically,
characteristics of such systems were date performance collection, feedback to earlier stages in the
process and self-inspection.

While screening inspection was again, the main mechanism for preventing products which were
outside the specifications from being shipped to customers, Quality control measures led to
greater process control and a lower incidence of non-conformance.

2
  Quality Assurance Stage

The quality assurance stage came with the change away from product quality towards system
quality. In this stage, an organization sets up a system for controlling what is being done and the
system is audited to ensure that it is adequate both in design and use. A major part of this change
is the use of both second-party and third-party audits to assess the efficiency of the system. The
major characteristics of this stage are the use of quality manuals, procedures, work instructions,
quality planning, quality audits, etc. The fundamental difference is that quality assurance is
prevention-based while quality control is inspection-based.

 Total Quality Management Stage

Total quality management stage is the highest level, involving the application of quality
management principles to all aspects of the business. Total quality management requires that
the principles of quality management be applied to every branch and at every level in an
organization. Typical of an organization going through a total quality process would be a clear
and unambiguous vision, few interdepartmental barriers, time spent on training, excellent
supplier and customer relations and the realization that quality is not just product quality but also
the quality of the whole organization, including sales, finance, personnel and other non-
manufacturing functions.

3
TOPIC TWO
2.0 CONCEPTS FROM QUALITY GURUS

An extensive review of literature was carried out to identify the primary elements necessary for
the successful implementation of TQM. Over the past few decades, writers such as Deming,
Crosby, Juran, Feigenbaum, Ishikawa, Taguchi and others have developed certain propositions
in the area of quality management. Their insights into quality management provide a good
understanding of quality management principles. An example of one such proposition is: quality
is a responsibility of the whole organization, rather than of the quality department. There are
many such propositions covering different aspects of quality management practices. The
following sections present the main ideas proposed by these quality gurus.

2.1 CONTRIBUTION OF EDWARD DEMING TO QUALITY MANAGEMENT:

(Oct. 14/1900, Dec. 20/1993):

Deming is widely regarded as the master who developed Japan’s “road Map” to quality. The
road map is basic, simple, consists of readily available technology, and relies on common sense.
Deming defines quality as “satisfying the customer, not merely to meet his expectations, but to
exceed them”. Deming’s philosophy thus starts and finishes with the customers.

The means to improve quality lie in the ability to control and manage systems and processes
properly, and the role of management responsibilities to achieving this. Deming is associated
with statistical process control and other problem-solving methods which aim to improve
processes and reduce the inevitable variation which occurs from “common causes” and “special
causes” in production. “Common causes” of variations are systematic and are shared by many
operators, machines or products. They include poor product design non-conforming incoming
materials, and poor working conditions. These are the responsibilities of management. “Special
causes” relate to the lack of knowledge or skill or poor performance. These are the
responsibilities of employees.

Deming stresses the responsibilities of top management to take the lead in changing processes
and systems. Top management is responsible for most quality problems. Management should
give employees clear standards for what is considered acceptable work and provide the methods
to achieve it. These methods include the appropriate working environment and climate for work-
free of faultfinding, blame or fear. Deming also strongly promotes employee participation.

4
These are set out in his 14 points or guidelines for managers (Deming, 1986). The 14 points put
forward by Deming are listed below.

1. Create a constancy of purpose to improve products and services-take a longer term view,
and innovate;
2. Adopt the new philosophy- accept the management style which promotes constant
improvement;
3. Cease dependence on mass inspection-concentrate on improving processes;
4. End the practice of awarding business on the basis of price tag alone, building up
relationships with fewer suppliers to understand jointly specifications of and uses for
materials and other inputs;
5. Constantly and forever improve the system – search continually for problems in all
processes. It is management’s job to work on the system;
6. Institute modern methods of training on the job – for all, to make the best use of every
employee;
7. Institute modern methods of supervision – managers to focus on quality not numbers;
8. Drive out fear – so that people work more effectively;
9. Break down barriers between departments –team working to tackle problems;

10. Eliminate numerical goals for the workforce – eliminate slogans and exhortation, make
reasonable requests of the workforce;

11. Eliminate work standards and numerical quotas – focus on quality and provide support;

12. Remove barriers that rob workers of pride in their work - for example, defective materials,
poor tools, lack of management support;

13. Institute a vigorous program of education and training – for continual updating and
improvement;

14. Create a top management structure to push every day on the above 13 points. Top
management commitment is where it begins and ends.

2.2 CONTRIBUTION OF PHILIP CROSBY TO QUALITY MANAGEMENT:

Crosby defines quality as conformance to requirements. The requirements of a product

need to be defined and specified clearly so that they are properly understood. His maxim
is that higher quality reduces costs and raises profits. Quality cost is used as a tool to help

5
achieve that goal. Quality is measured by the quality cost. His categories of quality costs are
similar to those of Juran – prevention, appraisal and failure. The aim is zero defects, of
getting it right first time. This requires an emphasis on prevention rather than after-the-fact
inspection. Crosby also presents the quality management maturity grid which may be used
by organizations to assess their quality management maturity. The five stages are
uncertainly, awakening, enlightenment, wisdom, and certainty. These can be used to assess
progress on a number of “measurement categories” such as management understanding and
attitude, the status of quality in the organization, problem handling, cost of quality as a
percentage of sales, quality improvement actions. The quality management maturity grid
and the cost of quality measures are the two main tools for managers to assess the seriousness
of their quality problems. Crosby provides 14 steps quality improvement (Crosby, 1979,
1984). The 14 steps are listed below.

1) Management commitment – to make clear where management stands on quality;

2) Quality Improvement team – to set up a high-level cross-functional team to run
the quality improvement program;
3) Quality measurement – to provide a display/report of current and potential non-
conformance problems in an objective manner;
4) The cost of quality – to define the ingredients of the cost of quality and explain
its uses as a management tool;
5) Quality awareness – to provide a systematic method for resolving problems
identified;
6) Corrective action – to provide a systematic method for resolving problems
identified;
7) Zero defects (ZD) action- preparatory activities for ZD program – launching;
8) Employee education – define the type and extent of supervisor training;
9) ZD day - popularize ZD philosophy and raise quality consciousness;

10) Goal setting – goals and commitments are set by employees for themselves and
their groups;

11) Error – cause removal – develops a method for employees to communicate with
the management regarding error-cause removal;

12) Recognition of good work in the quality process – to appreciate employees with
superior performance;

6
 13) Quality councils – brings together the professional quality staff for a planned
communication on a regular basis;

14) Do it over again – emphasize that quality improvement never ends and is a
constant effort.

Crosby (1984) claims “Mistakes are caused by two factors lack of knowledge and lack of
attention”. Education and training can eliminate the first cause, and a personal commitment to
excellence (zero defects) and attention to detail will cure the second.

2.3 CONTRIBUTION OF JOSEPH JURAN TO QUALITY MANAGEMENT:

Juran consider quality management as these basic processes (Juran Trilogy); quality planning,
quality control, and quality improvement (Juran and Gryna, 1993). Juran defines quality as
“Quality is customer satisfaction” or “Fitness for use”. In his view, the approach to managing for
quality consists of:

1) The sporadic problem is detected and acted upon by the process of quality control;
2) The chronic problem requires a different process, namely quality improvement;
3) Such chronic problems are traceable to an inadequate quality planning process.

Like Deming Juran believes most quality problems are due to management, not employees. He
also states that the distinction between chronic and sporadic problems is essential because there
are two different approaches to handling the problems. Chronic problems require the principle
of “breakthrough”, while sporadic problems require the principle of “control” (Juran and Gryna,
1970).

He further elaborates the sequence of activities required for “breakthrough” and “control”.
These are respectively a follows:

“Breakthrough” activities (quality improvement) (Juran and Gryna, 1970) include:

1) Breakthrough in attitudes – convincing those responsible that a change in quality level is

desirable and feasible;
2) Discovery of the vital few projects – determining which quality problem areas are
important;
3) Organizing for breakthrough in knowledge – defining the organizational mechanism for
obtaining the knowledge for achieving a breakthrough;

7
 4) Creation of a steering arm – defining and staffing a mechanism for directing the
investigation for quality improvement;
5) Creation of a diagnostic arm – defining and staffing a mechanism for executing the
technical investigation;
6) Diagnosis – collecting and analyzing the tact’s required and recommending the action
needed;
7) Breakthrough in cultural pattern – determining the effect of a proposed change on the
people involved and finding ways to overcome resistance to change;
8) Breakthrough in performance- obtaining agreement to take action;
9) Transition to the new level – implement the change.

“Control” activities (Juran and Gryna, 1993) include:

1) Choosing the control subject: i.e. choosing what we intend to regulate;

2) Choosing a unit of measure;
3) Setting a goal for the control subject;
4) Creating a sensor which can measure the control subject in terms of the unit of measure;
5) Measuring actual performance;
6) Interpreting the difference between actual performance and the goal;
7) Taking action (if any) on the difference.

“Planning” activities (Juran and Gryna, 1993) include:

1) Establish the quality goal;

2) Identify customers;
3) Discover customer needs;
4) Develop product features;
5) Develop process feature;
6) Establish process controls and transfer to operations.

2.4 CONTRIBUTION OF ARMOUND FEIGENBAUM TO QUALITY

MANAGEMENT

Feigenbaum defines quality as the “total composite product and service characteristics of
marketing engineering, manufacture and maintenance through which the product and service in
use will meet the expectations of the customer” (Feigenbaum, 1988). He states that total quality

8
management covers the full scope of the product and service “life cycle” from product
conception through production and customer service. The quality chain, he argues, starts with
the identification of all customers’ requirements and ends only when the product or service is
delivered to the customer who remains satisfied. Thus, all functional activities, such as marketing,
design, engineering, purchasing, manufacturing, inspection, shipping, accounting, installation and
service etc are involved in and influence the attainment of quality. Effective total quality control
requires, therefore a high degree of functional integration. Furthermore, it guides the
coordinated actions of people, machines and information to achieve quality goals. He stresses a
system approach to quality. The total quality control consists, he claims, of four main stages.
They are described as follows:

1) Setting quality standards;

2) Appraising conformance to these standards;
3) Acting standards are not met;
4) Planning for improvement in these standards.

The emphasis is on the prevention of poor quality rather than detecting if after the event. He
argues that quality is an integral part of the day-to-day work of the line, staff and operatives of an
organization. It cannot be effectively separated from other activities undertaken by employees
and any attempt to do so more would than likely result in substandard quality. He, like most
other gurus, considers effective staff training and education to be an essential component of
TQM. He states that education and training should address the three vital areas of quality
attitudes, quality knowledge and quality skills.

2.5 CONTRIBUTION TO TAORE ISIKAWA TO QUALITY MANAGEMENT

Ishikawa defines quality as the “development, design production and service of a product than is
most economical, most useful, and always satisfactory to the costumer”. He argues that quality
control extends beyond the product and encompasses after-sales service, the quality of
management, the quality of individuals and the company itself. He advocates employee
participation as the key to the successful implementation of TQM. Quality articles he believes
are an important vehicle to achieve this. In his work like all other gurus, he emphasizes the
importance of education. He states that quality begins and ends with education. He has been
associated with the development and advocacy of universal education in the seven QC tools
(Ishikawa, 1985). These tools are listed below:

9
 1) Process flow chart;
2) Check sheet;
3) Histogram;
4) Pareto chart;
5) Cause – effect diagram (Ishikawa diagram);
6) Scatter diagram
7) Control chart.

Ishikawa’s concept of total quality control contains six fundamental principles:

1) Quality first – not short-term profits first;

2) Customer orientation – not producer orientation;
3) The next step is your customer – breaking down the barrier of sectionalism;
4) Using facts and data to make presentations – utilization of statistical methods;
5) Respect for humanity as a management philosophy, full participatory management;
6) Cross – functional management.

2.6 CONTRIBUTION GENICHI TAGUCHI TO QUALITY MANAGEMENT

Taguchi emphasizes an engineering approach to quality. Taguchi defines quality as the “loss
imparted to the society from the time a product is chipped”. Examples of loss include: failure to
reach ideal performance, failure to meet the customer’s requirements, breakdowns, and harmful
side-effects caused by products (Taguchi, 1986). Thus, the smaller the loss, the more desirable
the product. The key elements to Taguchi’s quality concepts are briefly stated below:

1) Quality improvement should concentrate on reducing the variation of the product’s key
performance characteristics from its target value;
2) The loss suffered by a customer due to a product’s performance variation is often
approximately proportional to the square of the deviation of the performance
characteristics from its target value;
3) The final quality and cost of manufactured products are determined to a large extent by
the engineering design of the product and the manufacturing process;
4) A product’s or process’s performance variation can be reduced by exploiting the non-
linear effects of the product or process parameters on the performance characteristics.

10
TOPIC THREE

3.0 QUALITY CONCEPTS

3.1 Views of quality concepts

There are five views that explain the meaning of quality:

Transcendent view

User Based View

Product Based View

Manufacturing Based View

Value Based View

1. Transcendent View

According to this view quality is neither “Mind” nor matter but a third entity that is
independent of the two, we know it when we see it but we cannot say what it is. It is a
condition of excellence that implies fine quality as distinct from poor quality.

2. User Based View

Quality is like beauty and it is in the eyes of the beholder. Quality is a matter of subjective
personal appreciation personal tastes and preferences.

3. Product Based View

11
It consists of a number of objectives measurable, characteristics such as features reliability,
efficiency and durability. The differences in quality amongst quality or attribute of a product
refer to amount of unpaid attribute contained in each unit of priced attribute of products.

4. Manufacturing Based View

Quality is conformance to standards that is set by official body of professional organization

such as Kenya Bureau of Standards and ISO. According to this approach quality refer to
conformance, customer’s requirement. Philip Crosby draws this approach when he defined
quality as freedom from defect. Quality is the degree to which a specific product conforms
to desire or a manufacturing specification.

5. Value Based View

It is the bargain value or best. Quality is simply the best or the buying value or ones money
or worth of product.

The degree of excellence at acceptance cost. According to this approach quality means the
best under two customers’ conditions.

- Actual use of product

- The selling price of that product

3.2. CORRELATES OF QUALITY

There are six correlates that further enhances the understanding of quality

Price

12
 Market Share

Advertisement

Cost

Production

Profitability

1. Price

This takes the economists view that assumes that assumption higher quality can be
produced only at a higher cost. This is mainly because of additional labor, materials and
capital in such situation. The higher the price, the higher the quality. This correlate of
quality makes the following assumption:

Consumer has sufficient information to evaluate different products.

2. Market Share

The relationship between the market share and quality depends on how quality is
referred to define if a high quality product is seen or with superior performance and a
large number of product features it is generally more explosive and is made a smaller
volume.

3. Advertisement

13
 The purpose of advertising is to inform, persuade and remind. There is a correlation
between advertising and quality, which is normally based on attempt and distinguish
search goods and experienced goods.

The attribute of such goods can be determined by the product itself. The experience of
goods and other hand can usually be ranked after purchase of new products.

4. Cost

The relationship between cost and quality fall into two category

- Quality as direct product

A situation where =R.R – T.C, there is a positive relationship between the two so that
the higher the quality the higher the cost of production. This is related to the fact
that quality difference to reflect variation in performance features and durability.
Consumers tend to believe that expensive products require expensive components
which are more durable and can make a product perform better.
- Quality and indirect cost where they are inversely related.
The higher the quality the lower the cost of producing those products the reasoning
behind this inverse relationship normally arises when consumers consider the cost of
improving quality.

5. Productivity

In this situation, quality believes in positively correlated to productivity. This is normally

seen from manufacturing point of view where production of quality goods means less the
work, less scraps, less returns and more time directed to manufacturing central products
which leads to fewer wastage of materials.

6. Profitability

Focuses on two main routes

Route= T.R – T.C

Market Share

14
Where improvement in product performance and other dimensions of quality leads to increase
in sales and larger market share.

This normally increases total revenue and hence higher profits.

Though the cost side

Where there are fewer defects or errors of quality and less cost and fewer products failures.
These results however result to manufacturing and service cost.

15
TOPIC FOUR

4.1 DIMENSIONS OF QUALITY

There are eight dimensions of quality

Performance

Quality features

Durability

Reliability

Aesthetics

Conformance

Service

Perceived quality

1. Performance

These refer to the primary operating characteristics of a product and this dimension is a
combination of the user based and product based view to quality. This is normally seen as
including measurable and produces of quality where different ranks can be ranked objectively
on one dimension of performance.

The connection between quality and performance normally depends on two circumstances

- Individual preferences
- Difference in terms of quality languages.

2. Quality features

16
These refer to the secondary characteristics that tend to supplement product basic function. In
these case the live that offers free drinks in affright or extra service in a hotel or an automobile
fitted with air conditioner and music system give an extra quality consideration.

3. Durability

This is a measure of product failure and life. It has booth economic and technical dimension
where technical dimension refer to the list that the consumer get from a product before it is
physically deteriorates.

4. Reliability

Refers to the ability of products that has been manufactured not fully within a specific time period
of time in use.

These measures liability considers the means time of he first failure rate by units of time where
one is using the product because the measure of dimension of quality requires product in use for
some period of time.

5. Conformance

These are measures of degree to which a product design and operating characteristic meets the
pre-determined standard of the organization. There are two main approaches to conformance.

- The one that equates performance with its specification

- The one that equates conformance with loss of function.

6. Services

This refers to speed, competence and case to repair and ways of offering your product and ways
of offering the product. The consumers are not only concerned about the products writing down
but also that elapse before the services is registered to normal.

7. Aesthetics

This is closely related to user-based approach to quality. It refers to how the product looks, hot
it sounds, how it smells and how it tastes. It is purely the matter of personal judgment deals with
beauty, attractiveness as reflection of individual preferences.

17
 8. Perceived Quality

Consumers are not always posse to complete information about a product or service attribute,
but can make use of indirect measures as the only way of comparing different brands, products
durability for instance can only be entered from various tangible and intangible aspects of that
product.

4.2 COST OF QUALITY

There are four costs of quality

Prevention cost

Appraisal Cost

Internal Failure cost

External failure cost

Where a product is not designed to the expected standard as when you do not get its results fast,
these will result in various quality cost. Generally there are four types of cost of quality.

- Prevention cost
- Appraisal Costs
- Internal failure costs
- External failure costs

1. Prevention cost

Prevention cost is normally plans and are incurred before the actual operation or production of
goods and services. There are six types of prevention cost.

- Product or services requirement

- Quality Assurance
- Quality Planning
- Inspection Equipment
- Trainers
- Miscellaneous cost

18
 2. Appraisal cost

These are cost associated with suppliers and customer evaluation of purchased material,
processes as well as product service to assure conformance with specified requirement.

Appraisal costs include:

- Specification
- Quality Audit
- Inspection Equipment cost
- Vender rating cost

3. Internal failure cost

This cost occurs when results of work fail to reach the design quality standard and are detected
before being transferred to the final customer. There are also six types of internal failure costs:

- Waste
- Scrap
- Rework or moderation
- Re-inspection
- Poor grading failure analysis.

4. External failure cost

These are cost that occur when a product or service fail to reach the designed quality
standards and not detected until after transfer to the final consumer. External failure
costs include Repair and servicing of returned refused good.

19
TOPIC FIVE

5.0 QUALITY MANAGEMENT PRINCIPLES

The following text is an integral reproduction of the content of the document “Quality
Management Principles”.

5.1 Introduction

This document introduces the eight quality management principles on which the quality
management system standards of the revised ISO 9000:2000 series are based. These principles
can be by senior management as a framework to guide their organizations towards improved
performance. The principles are derived from the collective experience and knowledge of the
international experts who participate in ISO Technical Committee ISO/TC 176, Quality
Management and quality assurance, which is responsible for developing and maintaining the ISO
9000 standards.

The eight quality management principles are defined in ISO 9000:2000, Quality management
systems fundamentals and vocabulary, and in ISO 9004:2000, Quality Management systems
Guidelines for performance improvements.

This document gives the standardized descriptions of the principles as they appear in ISO
9000:2000 and ISO 9004:2000. In addition, it provides examples of the benefits derived from
their use and of actions that managers typically take in applying the principles to improve their
organizations’ performance.

 Principle 1 Customer Focus

 Principle 2 Leadership
 Principle 3 Involvement of people
 Principle 4 process approach
 Principle 5 System approach to management
 Principle 6 Continual improvement
 Principle 7 Factual approach to decision making
 Principle 8 Mutually beneficial supplier relationships
 The next step.

5.2 Main Principles

20
 1. Customer Orientation

Organizations depend on their customers and therefore should understand current and future
customer needs, should meet customer requirements and strive to exceed customer expectations.

Key Benefits:

 Increased revenue and market share obtained through flexible and fast responses to
market opportunities
 Increased effectiveness in the use of the organization’s resources to enhance customer
satisfaction
 Improved customer loyalty leading to repeat business

Applying the principle of customer focus typically leads to:

 Researching and understanding customer needs and expectations.

 Ensuring that the objectives of the organization are linked to customer needs and
expectations.
 Communicating customer needs and expectations throughout the organization
 Measuring customer satisfaction and acting on the results
 Systematically managing customer relationships
 Ensuring a balanced approach between satisfying customers and other interested parties
(such as owners, employees, suppliers, financiers, local communities and society as a
whole).
 Role of Supplier.

2. The Leadership Principal

Leaders establish unity of purpose and direction of the organization. They should create and
maintain the internal environment in which people can become fully involved in achieving the
organization’s objectives.

Key benefits:

 People will understand and be motivated towards the organization’s goals and objectives
 Activities are evaluated, aligned and implemented in a unified way

21
  Miscommunication between levels of an organization will be minimized.

Applying the principle of leadership typically leads to:

 Considering the needs of all interested parties including customers, owners, employees,
suppliers, financiers, local communities and society as a whole.
 Establishing a clear vision of the organization’s future.
 Setting challenging goals and targets.
 Creating and sustaining shared values, fairness and ethical role models at all levels of the
organization.
 Establishing trust and eliminating far.
 Providing people with the required resources, training and freedom to act with
responsibility and accountability.
 Inspiring, encouraging and recognizing people’s contributions.
3. Involvement of people

People at all levels are the essence of an organization and their full involvement enables their
abilities to be used for the organization’s benefit.

Key Benefits:

 Motivated, committed and involved people within the organization

 Innovation and creativity in furthering the organization’s objectives
 People being accountable for their own performance
 People eager to participate in and contribute to continual improvement

Applying the principle of involvement of people typically leads to:

 People understanding the importance of their contribution and role in the organization
 People identifying constraints to their performance
 People accepting ownership of problems and their responsibility for solving them.
 People evaluating their performance against their personal goals and objectives
 People actively seeking opportunities to enhance their competence, knowledge and
experience
 People freely sharing knowledge and experience
 People openly discussing problems and issues

22
 4. Process approach to quality

A desired result is achieved more efficiently when activities and related resources are managed
as a process.

Key Benefits

 Lower costs and shorter cycle times through effective use of resources
 Improved, consistent and predictable
 Focused and prioritized improvement opportunities

Applying the Principle of process approach typically leads to:

 Systematically defining the activities necessary to obtain a desired result.

 Establishing clear responsibility and accountability for managing key activities
 Analyzing and measuring of the capability of key activities
 Identifying the interfaces of key activities within and between the functions of the
organization.
 Focusing on the factors such as resources, methods, and materials that will improve key
activities of the organization.
 Evaluating risks, consequences and impacts of activities on customers, suppliers and
other interested parties.
5. System approach to quality management

Identifying, Understanding and managing interrelated processes as a system contributes to the

organization’s effectiveness and efficiency in achieving its objectives.

Key benefits:

 Integration and alignment of the processes that will best achieve the desired results.
 Ability to focus effort on the key process
 Providing confidence to interested parties as to the consistency, effectiveness and
efficiency of the organization.

Applying the principle of system approach to management typically leads to:

23
  Structuring a system to achieve the organization’s objectives in the most effective and
efficient way
 Understanding the inter-decencies between the processes of the system
 Structured approaches that harmonize and integrate processes
 Providing a better understanding of the roles and responsibilities necessary for achieving
common objectives and thereby reducing cross-functional barriers.
 Understanding organizational capabilities and establishing resource constraints prior to
action.
 Targeting and defining how specific activities within a system should operate
 Continually improving the system through measurement and evaluation

6. Principal of Continuous Improvement/Kaizen

Continual improvement of the organization’s overall performance should be a permanent

objective of the organization:

Key benefits:

 Performance advantage through improved organizational capabilities

 Alignment of improvement activities at all levels to an organization’s strategic intent
 Flexibility to react quickly to opportunities

Applying the principle of continual improvement typically leads to:

 Employing a consistent organization-wide approach to continual improvement of the

organization’s performance
 Providing people with training in the methods and tools to continual improvement
 Making continual improvement of products, processes and systems on objectives for
ever, individual in the organization
 Establishing goals to guide, and measures to track, continual improvement
 Recognizing and acknowledging improvements.
 Importance of organizational ability
 Importance of procedural devices or techniques
 Benchmarking

24
  Performance Management
 Focus on the 3 dimension
- People
- Organization
- Process

7. Principle of management by facts

Effectiveness decisions are based on the analysis of data and information

Key benefits:

 Informed decisions
 An increased ability to demonstrate the effectiveness of past decisions through reference
to factual records
 Increased ability to review, challenge and change opinions and decisions.

Applying the principle of factual approach to decision making typically leads to:

 Ensuring that data and information are sufficiently accurate and reliable
 Making data accessible to those who need it
 Analyzing data and information using valid methods
 Making decisions and taking action based on factual analysis, balanced with experience
and intuition.

8. Mutually beneficial supplier relationships

An organization and its suppliers are interdependent and a mutually beneficial relationship
enhances the ability of both to create value.

Key benefits:

 Increased ability to create value for both parties

 Flexibility and speed of joint responses to changing market or customer needs and
expectations
 Optimization of costs and resources

Applying the principles of mutually beneficial supplier relationships typically leads to:

25
  Establishing relationships that balance short-term gains with long-term considerations
 Pooling of expertise and resources with partners
 Identifying and selecting key suppliers
 Clear and open communication
 Sharing information and future plans
 Establishing joint development and improvement activities
 Inspiring, encouraging and recognizing improvements and achievements by suppliers.

The next step:

This document provides a general perspective on the quality management principles underlying
the ISO 9000:2000 series. It gives an overview of these principles and shows how, collectively,
they can form a basis for performance improvement and organizational excellence.

There are many different way of applying these quality management principles. The nature of
the organization and the specific challenges it faces will determine how to implement them.
Many organizations will find it beneficial to set up quality management systems based on these
principles.

The requirements of quality management systems and supporting guidelines are given in the ISO
9000 –Selection and use.

Further information on the ISO 9000 standards is available from ISO’s national member
institutes or from the ISO Central Secretariat ISO 9000 inquiry service. Sales enquiries should
also be directed to the ISO members or to the ISO Central Secretariat Sales department.

ISO publishes the bimonthly ISO Management System, which provides updates on these
families of standards and news on their implementation around the world. A Spanish-language
edition is published by the Spanish national standards institute AENOR.

26