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Quality Management

Principles
Become
CEO Management
Practices

original presentation by Marsha Ludwig-Becker


adapted by Eric Whichard for Sept 2007 program
Objectives
Review the ISO 9004-2000 standards

Quality Management Principles


(QMPs)

Explore how these principles


can be applied
are being applied
should be applied in practice

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ISO 9004-2000

http://www.asq.org/qualitypress/displayitem/
index.html?item=T2104E&author=
ANSI/ISO/ASQ%20Q90042000

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ISO 9004-2000
ISO 9004-2000 is the guidance standard
related to ISO 9001-2000

in the Introduction, section 0.1 General of ISO 9004

adopting a quality system should be a strategic decision...

influenced by varying needs, objectives, etc....

this standard based on eight (8) quality management principles

no intent to imply uniformity

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ISO 9004-2000
in the Introduction, section 0.1 General of ISO 9004
further...

purpose of organization is to

identify / meet / exceed needs of customers /


other interested parties (stakeholders)
achieve competitive advantage
in an effective / efficient manner

achieve / maint / improve performance / capabilities

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ISO 9004-2000
in the Introduction, section 0.1 General of ISO 9004
further...

application of QMPs provides benefits


and helps manage costs and risks

customer loyalty, repeat business


response to market opportunities
costs, cycle time, revenue, market share, profitability
alignment, competitive advantage
confidence (of all stakeholders)
value creation (for all stakeholders)
involved and motivated people

so, lets have a look at the QMPs...

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Quality Management Principles
the Quality Management Principles are:
A framework for leading an organization
by focusing on the needs of customers
and other stakeholders.

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What are the Eight (8) Quality
Management Principles?
1. Customer Focus
2. Leadership
3. Involvement of People
4. Process Approach
5. Systematic Approach to Management
6. Continual Improvement
7. Factual Approach to Decision-Making
8. Mutually Beneficial Supplier Relationships*

Lets walk through them one by one...

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Principle 1: Customer Focus
understand, strive to meet and exceed customer expectations.*

Organizations depend on their customers and should


understand needs, current & future
meet / exceed those needs

to achieve
business performance & effectiveness
customer loyalty

through
market / customer research
alignment of objectives with needs
measurement of customer satisfaction
balance among needs / interests of all stakeholders

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Principle 1: Customer Focus
understand, strive to meet and exceed customer expectations.*

Quality is perceived according to Kano


Think about what delights you as a customer

From: Ludwig-Becker, M., Electronics Quality Management Handbook, McGraw-Hill, 1997,


p.67 from Juran and Gyrna, Quality Planning and Analysis, 3rd Ed. McGraw-Hill, 1993,p. 247,
used with permission 10
Principle 1: Customer Focus
understand, strive to meet and exceed customer expectations.*

What is the status of Customer Focus in YOUR world


today?

What do you like? What would you change?

Who does it well? Poorly?

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Principle 2: Leadership
unity, purpose, and involvement*

Leaders establish
unity of purpose and direction
environment where people are involved

to achieve
communication, motivation, alignment
organizations objectives

through
considering needs of all parties
vision, values, goals, targets, etc
fairness, respect, ethics, trust (elim. fear)
providing resources, removing road-blocks
inspiring, encouraging, recognizing

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Vision Led Value Driven Leadership

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Principle 2: Leadership
unity, purpose, and involvement*

Leadership skills must be cultivated

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Principle 2: Leadership
unity, purpose, and involvement*

How do the leaders in your life perform in these


respects?

How about YOU as a leader?

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Principle 3: People Involvement
People...are the essence of the organization...

People at all levels


are the essence
their full involvement
organizations benefit (& those of its stakeholders)

to achieve
motivation, innovation, creativity
accountability, participation, contribution

through their understanding of


their roles and goals
importance of their contributions
strengths, opportunities, knowledge, experience
constraints, issues, problems (trust)

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Principle 3: People Involvement

Three facets of
empowerment (each
depends on the others)

Knowledge of what to
do, when to do it

Will to do what needs


to be done
Figure 3.1a: The Empowerment Cube
The wherewithal to do
it
*Guest Editorial, by John Troyer, Quality Digest,
Oct. 1996, p. 64

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Principle 3: People Involvement
People...are the essence of the organization...

How well are you involved by the leaders of the


organizations in which you participate?

How well do you as a leader involve others?

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Principle 4: Process Approach
...related resources and activities are managed as a process.*
A process approach
achieves desired results more efficiently
manages related resources, activities, etc. as a process

to achieve
lower costs, reduce cycle times
consistency, predictability... improvement

through
defining result... process... inputs...
responsibility, accountability, measurement / analysis
identifying interfaces, interdependencies
focus on critical factors, best opportunities, risks, etc/

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Principle 4: Process Approach
related resources and activities are managed as a process.*

Everything done is involved in a process


Suppliers... Inputs... Process... Outputs... Customers (SIPOC)
Voice of the customer loops back to beginning (PDCA)

Note: Figure 3.3 from ISO 9000-1: 1994, p. 4

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Principle 4: Process Approach

Baldrige Approach, Category 6: Process Management

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Principle 4: Process Approach
related resources and activities are managed as a process.*

Regarding the processes that you encounter, how


well are they managed?

Are they managed as processes, or otherwise?

How / how well do you manage your processes?

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Principle 5: Systems Approach
...managing a system [for] effectiveness and efficiency*

Systems are
collections of interrelated processes
their interfaces, interdependences, etc.
that are best managed as a whole (system)

to achieve
efficiency, effectiveness, improvement
confidence in capability

through
thorough definition and understanding
especially of the KEY processes
measurement, evaluation
responsibility accountability

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Principle 5: Systems Approach
A Business System of Processes

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Principle 6: Continual Improvement
...the object of an organization that wishes to stay in business.*

Continual improvement
in overall performance
permanent objective

improving
capability, flexibility
alignment, agility

through
see above...
and below

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Principle 6: Continual Improvement
Phases of continuous process improvement (see next chart)
Awareness, Resistance, Expansion, Integration and finally
Regeneration, or Continuous Improvement

Strategies for Implementation


1. Commitment
2. Training
3. Targeting and Deployment
4. Resources
5. Measurements
6. Management Structure
7. Systems Alignment
8. Communication and Information*

*Doherty, Steve D., A Blueprint for Excellence,


Quality Progress, April 1991, p. 84-85
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Principle 6: Continual Improvement
Blueprint for Excellence at the Air Force Logistics Command (AFLC)

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Principle 7: Factual Approach...
based on.. analysis of data and information.*

Cant manage what you cant measure


In God we trust. All others, bring data

supports improvement
better decisions, results
verifiable gains, means to hold them

Measure, collect data


Analyze it
Make results available
Use them

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Principle 7: Factual Approach...

From: As Easy as Two Plus Two, News for a Change, Association


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for Quality and Participation, Cincinnati, OH., Nov. 1997, p. 4
Principle 7: Factual Approach to Decision-Making
Measuring Business Processes

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From: Kordupleski, R., Rust, R, and Zahorik, A, Why Improving Quality Doesnt Improve
Quality, California Management Review, vol.38, no. 3, Spring 1993, p. 91
Principle 7: Factual Approach...
based on.. analysis of data and information.*

Are you a facts and figures sort or person?

A go with the gut type?

How about those you work with?

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Principle 8: Mutually Beneficial Supplier
Relationships
enhance the ability of the organization to create value.*

A Win-Win approach

Both organizations can create more value


Better flexibility, speed, optimization

Balance short / long term


Pool expertise, share information
Better communication
Joint efforts
Mutual respect, recognition

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Summary: the eight QMPs
1. Customer Focus
2. Leadership
3. Involvement of People
4. Process Approach
5. Systematic Approach to Management
6. Continual Improvement
7. Factual Approach to Decision-Making
8. Mutually Beneficial Supplier Relationships*

See Self Assessment for QMP Implementation


included in 9004-2000

See also
http://www.iso.org/iso/iso_catalogue/management_standards/iso_9000_iso_14000/qmp.htm
for further elaboration

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Further thoughts?

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Further thoughts?

THANK YOU

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Sources

California Management Review, S549 Haas School of Business


#1900, Berkeley, CA 94720, cmr@haas.berkeley.edu
ANSI/ISO/ASQ Q9004-2000, Quality Management Systems--
Guidelines for performance improvements, American Society for
Quality (ASQ), P.O. Box 3005 Milwaukee, WI 53201, 2000;
http://standardsgroup.asq.org
The Informed Outlook, International Forum for Management Systems,
Inc., 15913 Edgewood Dr.Montclair, Virginia 22026,
www.informintl.com
ANSI/ASQC Q9001- 1994, Quality Management and Quality
Assurance Standards--Guidelines for Selection and Use, ASQ,
Milwaukee, WI, 1994
Ludwig-Becker, M., Electronics Quality Management Handbook,
McGraw-Hill, 1998, becker2@worldnet.att.net

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Sources

Manufacturing Systems (A Cahners publication) April 1997 or see


http.www.manufacturingsystems.com
Quality Digest, 1350 Vista Way., P.O. Box 882,Red Bluff, CA 96080,
qualitydig@qof.com
Quality Management Principles Internet site:
http:www.wineasy.se/qmp/about.html and ISO 9004: July 1998, p.415-
416 & ISO/CDI ISO 9000-1998, p. 2
Quality Progress, American Society of Quality, 611 E. Wisconsin Ave.,
P.O. Box 3005, Milwaukee, WI 53201
For Quality Function Deployment (QFD)Lou Cohens book, How to
Make QFD Work for You, (Addison-Wesley, 1995) as well as the QFD
internet page:http.www//akao.larc.nasa.gov/dfc/qfd.html

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