Since the establishment of ISO 9000 international quality management standards in 1987, many companies in the world have implemented the system. The number of ISO 9000 certificates awarded grew by nearly 27% in 1999 compare to 1998, demonstrating the impact of ISO’s quality management standards on business activities worldwide. These are among the findings revealed by the ninth cycle of The ISO Survey, which updates the ISO 9000 certification picture to the end of 1999. The survey shows that twelve years after the ISO 9000 quality management standards were first published, their use is still increasing. Up to the end of 1999, 343,643 ISO 9000 certificates have been awarded worldwide.
More than twenty years ago, people working in industries and commerce talked about the concept of TQM and did something for TQM in their companies.
Today the competition in business world is extremely fierce. In order to increase market share and maintain business growth, companies are very concerned about the improvement of the quality of their products, services and customer satisfaction. More and more companies are introducing the ISO 9000 quality system all over the world.
A company that has been awarded the ISO 9002 quality management standard is the law firm Andreas Neocleous & Co. Andreas Neocleous & Co is among a few law firms in the world to be awarded with the ISO 9002 for all the legal services that it offers. By obtaining the certification of ISO 9002 quality management standard, the firm is merely laying the foundation for the implementation of the total quality Management within its operations.
The Term Paper on Quality Management In Business
... rest of the world. Companies began to introduce quality management procedures. This new trend was known as Total Quality Management in the world. (Asq.org, 2014) Quality Management Approaches for ... process improvement I have selected ISO management standards to propose new modifications. Here are the common principles of ISO management standards: •Customer focus •Leadership •Involvement of ...
Some companies and individuals think that ISO 9000 is just another name for TQM. The aim of this article is to investigate the relationship between ISO 9000 quality management standard and TQM and to provide a clearer picture for companies which are considering implementing these two quality improvement processes.
What is Quality
Quality can be interpret as “Customer’s expressed and implied requirements are met fully”. This is a core statement from which some eminent definitions of quality have derived. Some of the definitions are: “the totality of features and characteristics of a product or service that bears on its ability to meet a stated or implied need” (ISO standards of 1994), “fitness for use” (Juran and Gryna, 1998), and “conformance to requirement” (Crosby, 1979).
It is important to note that satisfying the customer’s needs and expectations is the main idea behind these definitions. Therefore it is imperative for a company to identify such needs early in the product/service development cycle. The ability to define accurately the needs related to design, performance, price, safety, delivery, and other business activities and processes will place a firm ahead of its competitors in the market. In 1992 Crosby broadened his definition for quality by adding an integrated notion to it: “Quality meaning getting everyone to do what they have agreed to do and to do it right the first time is the skeletal structure of an organisation, finance is the nourishment, and relationships are the soul”. Some Japanese companies find that ‘conformance to a standard’ reflects too narrowly to the actual meaning of quality and consequently have started to use a newer definition of quality as “providing extraordinary customer satisfaction”.
Total Quality Management
To understand the relationship between the ISO 9000 quality management standards and the TQM, we need to look at them individually and then comparatively. In this way we can understand each one and then explore their relationships, commonalties and differences.
The Research paper on Decision In Mangement Management Tqm Quality
... example. Total Quality Management, by definition, encompasses teamwork and thus, gives new meaning to the decision making process. Individuals ... responsibility. Total Quality Management (TQM), is a philosophy which states that the goal is "to meet customer expectations 100 ... increased in the 19 th century, ownership of companies was divided among shareholders. Management gradually became separated ...
A good starting point is a definition of TQM: “a well-planned, company wide process, integrated into the company’s business plan, that achieves the goal of never ending continuous improvement of all business processes in order to satisfy customer requirements, both internal and external” (M. Kirchner).
The definition suggests that TQM is a process and a journey, not a destination. It is a philosophy, a culture and a way of doing business.
Witcher defines TQM as:
Total: Every person in the firm is involved.
Quality: Customers requirements are met exactly.
Management: senior executives are fully committed.
Feigenbaum defines TQM as “the total quality control’s organisation-wide impact”.
The Basic principles of TQM Success
The basic principles in implementing successfully a TQM process are the following:
-Leadership.
-Commitment and strong support from management at all levels.
-Total customer satisfaction.
-Training and education for all employees.
-Total involvement-TQM must be promoted throughout the company.
-Employee empowerment.
-Decisions based on data (rather than intuition or guesswork).
-Ownership.
-Teamwork and co-operation at all levels in the organisation.
-Very good communication throughout the organisation.
-Continuous improvement.
-Reward and recognition.
Fortune magazine (October 18, 1993) did a survey of companies implementing TQM that identified the following successful implementation keys:
-The CEO must be visibly involved and committed.
-Customer focus is critical.
-TQM must be linked to a very few clearly defined strategic goals.
-Changes must be linked to a clear financial payback (don’t wait forever)
-Don’t adopt an “off the shelf” quality process.
Throughout the TQM process, problems may arise at any point. Many organisations have run into many problems while implementing the TQM process such as; the management not being fully committed to the overall mission, uncertainty within the organisation due to a lack of focus on quality and loss of excitement of the TQM process when it is not an immediate success.
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1. 0 Introduction Knowledge management can be considered to be an essential strategic function in any organisation today. As the world becomes more globalised, and traditional structures of intermediation are removed whilst new ones are created, it is clear that knowledge, and consequently a learning organisation is one that is more likely to find unique sources of competitive advantage, and be ...
Moreover, many companies fail in implementing TQM because they don’t take into account the most critical cause-and-effect relationship. When considering strategic objectives CEOs refer to market share, profitability and return on investment, without realising that these metrics, eventhough valuable, are only effects which cannot be totally controlled. A widely accepted notion is that to control effects, total customer satisfaction must be controlled and identified. The above notion is justified as it is repeatedly proved that satisfied customers keep coming back with more business. Therefore, the primary focus of any TQM implementation must be total customer satisfaction.
In order to avoid the failure of TQM, the following things must be considered. Management must avoid overstating the benefits of TQM. They should emphasise that the TQM process is a long slow journey, and that results are not going to appear over night. Management should also prevent TQM from being implemented as a solution to a particular problem. TQM is not a problem solver for one department, but rather a way of life for the entire organisation.
Most organisations on the TQM journey pass through five distinct phases.
Phase 0 is the usual starting point. Product and service quality is stable.
Phase 1 is the awakening. At this stage, top management begins to vision. They develop and document a vision of improved quality, along with a strategic quality plan. Total customer satisfaction becomes the new focus.
Phase 2 is the progression towards quality improvement. Root-cause analysis, corrective action and process measurements and improvements begin during this phase.
Phase 3 is the point at where business and manufacturing processes are under control. Procedures and work instructions have been developed and effectively implemented. Training and education are continuing.
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This topic will elaborate on the types of users, types of systems, differences between data and information, types of management levels and types of management information systems. Topic 2: System Concepts In topic 2, you will be introduced to types of models, concept of system elements; namely the system standard. Generally, the system standard is the performance level achieved by the system ...
Phase 4 is the designing of products/services and processes according to the requirements of customers.
Phase 5 is the new corporate quality culture. All employees have a “do it right the first time” attitude. The culture is orientated towards defect and problem prevention rather than corrective action.
The TQM Paradigm
The TQM paradigm has the following elements:
-Developing a corporate quality policy.
-Designing and implementing a quality system.
-Developing measures for capturing quality costs and benefits from improved quality.
-Encouragement of teamwork and participation of the management and the workforce.
-Continuous education and training to foster employee attitudes, management beliefs and value system.
-Usage of problem solving tools and techniques.
-Benchmarking of business results and processes.
-Improvement of managerial and technical processes.
-Integrating the customers’ and suppliers’ expectations.
-Carrying out quality audits and reviews on a continuous basis.
To implement successfully TQM, most organisations must make a major paradigm shift. In many situations, the conventional wisdom is, “solving a crisis is success”. However, the TQM wisdom is, “not having a crisis is success”. The latter is much harder to measure, but in successful organisations, prevention is the established culture and philosophy.
ISO 9000 International Quality Management Standards and Guidelines
The ISO 9000 family of international quality management standards and guidelines has recently been revised. These revised standards are now identified by the “2000” in their designation. (ISO 9000:2000).
Before, ISO 9000 was a set of five guideline standards that define the requirements for an effective quality system. Of those five guideline standards, only three were certification standards (ISO 9001, 9002 and 9003); both ISO 9000 and 9004 were guidelines for the other three.
Now the three standards ISO 9001, ISO 9002, ISO 9003 have been integrated into the new ISO 9001:2000.
The standards, guidelines and technical reports which make up the ISO 9000 family are:
STANDARDS AND GUIDELINES
PURPOSE
ISO 9000:2000, Quality management systems – Fundamentals and vocabulary
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Establishes a starting point for understanding the standards and defines the fundamental terms and definitions used in the ISO 9000 family which you need to avoid misunderstandings in their use.
ISO 9001:2000, Quality management systems – Requirements
This is the requirement standard you use to assess your ability to meet customer and applicable regulatory requirements and thereby address customer satisfaction. It is now the only standard in the ISO 9000 family against which third party certification can be carried.
ISO 9004:2000, Quality management systems – Guidelines for performance improvements
This guideline standard provides guidance for continual improvement of your quality management system to benefit all parties through sustained customer satisfaction.
ISO 19011, Guidelines on quality and/or environmental management Systems Auditing
Provides you with guidelines for verifying the system’s ability to achieve defined quality objectives. You can use this standard internally or for auditing your suppliers.
ISO 10005:1995, Quality Management – Guidelines for quality plans
Provides guidelines to assist in the preparation, review, acceptance and revision of quality plans.
ISO 10006:1997, Quality Management – Guidelines to quality in project management
Guidelines to help you ensure the quality of both the project processes and the project products.
ISO 10007:1995, Quality Management – Guidelines for configuration management
Gives you guidelines to ensure that a complex product continues to function when components are changed individually.
ISO/DIS 10012, Quality assurance requirements for measuring equipment – Part 1: Metrological confirmation system for measuring equipment
Give you guidelines on the main features of a calibration system to ensure that measurements are made with the intended accuracy.
ISO 10012-2:1997, Quality assurance for measuring equipment – Part 2: Guidelines for control of measurement processes
Provides supplementary guidance on the application of statistical process control when this is appropriate for achieving the objectives of Part 1.
The Term Paper on Total Quality Management Customer Process Tqm
... The ISO 9000 standards are as follows: ISO 9000: Gives guidelines on the selection of quality assurance and quality management systems. ISO 9001: Establishes the model for quality assurance ... process that integrates the whole).Some principles and practices of total quality management (TQM) may differ among firms and industries, but there is unanimous ...
ISO 10013:1995, Guidelines for developing quality manuals
Provides guidelines for the development, and maintenance of quality manuals, tailored to your specific needs.
ISO/TR 10014:1998, Guidelines for managing the economics of quality:
Provides guidance on how to achieve economic benefits from the application of quality management.
ISO 10015:1999, Quality management – Guidelines for training
Provides guidance on the development, implementation, maintenance and improvement of strategies and systems for training that affects the quality of products.
ISO/TS 16949:1999,Quality systems – Automotive suppliers – Particular requirements for the application of ISO 9001:1994
Sector specific guidance to the application of ISO 9001 in the automotive industry.
The purpose of ISO 9000 quality management standards is stated in clause 0 of ISO 9000 (“Guidelines for selection and use”):
Most organizations – industrial, commercial or governmental – produce a product or service intending to satisfy a user’s needs or requirements. Such requirements are often incorporated in ‘specifications’. However, technical specifications may not in themselves guarantee that a customer’s requirements will be consistently met. For example, there may be deficiencies in the specifications or in the organizational system to design and produce the product or service. Consequently, this has led to the development of quality system standards and guidelines that complement relevant product or service requirements given in the technical specification.
When seeking ISO 9000 certification, it has to be considered that it:
-Establishes a minimalist quality management system that facilitates consistent quality.
-Specifies what processes need to be in place.
-Is a process standard, not a product standard.
-Is not a TQM process but does contain many TQM elements.
-Requires ongoing audits (internal and external), plus re-certification.
-Is expensive.
-Requires you to document what you do and do what you document.
ISO 9000 standards provide the company with a quality system that:
-Standardizes, organizes and controls operations.
-Provides for consistent dissemination of information.
-Improves various aspects of the business based on the use of statistical data and analysis.
-Encourages improvement.
-Runs the business in a controlled and disciplined manner.
-If non-conformances occur, the cause can be determined and eliminated in order to prevent recurrences.
If we read section 1.0 (Scope) of the ISO 9000 standards we find two keys: Prevent problems (non-conformances) before they occur and detect problems (non-conformances) if they do occur.
The ISO 9000 quality management standards sets out the methods that can be implemented in an organization so as to ensure that customers’ requirements are fully met. Not only does a fully documented quality management system ensure the customers’ requirements are met, but also the organization’s requirements will be met, both internally and externally and at an optimum cost. This is the result of efficient utilization of the available resources – material, human and technological.
The overall benefits of an ISO 9000 quality management system are the following:
Increase Revenue
– Access wider geographic markets by complying with a globally recognised standard.
– New customers who require ISO 9000 compliance.
Preserve Existing Revenue
– Reduce customer rejection of products/services because of poor quality.
– Improve customer loyalty.
Reduce Costs
– Reduce or eliminate repetition of work.
– Reduce warranty and customer support costs.
– Reduce management time spent on “putting out fires”.
– Improve productivity by “doing it right the first time”.
ISO 9000 AS A ROUTE TO INTRODUCING AND IMPLEMENTING TQM
Going for ISO 9000 registration is a good way of measuring your progress and monitoring your maintenance status. It can bring marketing benefits, but should be regarded as the beginning of a continuous improvement process (TQM), rather than the end. Visualize two circles, one about the size of a soccer ball and one about the size of a tennis ball. Now overlay the two circles so that the smaller is inside the larger one. The large circle represents TQM and the small one ISO 9000. TQM is a larger, more comprehensive system, but almost everything in ISO 9000 is also in TQM.
An analysis of both ISO 9000 quality management standards and TQM lead to the following conclusions:
-A quality management system can be based on the principles of TQM and/or ISO 9000.
-Both TQM & ISO 9000 include ‘continuous improvement’.
-For most organizations, ISO 9000 establishes necessary process discipline and control, which is typically a prerequisite to the broader demands of TQM.
-ISO 9000 requirements are minimum success requirements for almost all business.
-ISO 9000 is the primary stepping-stone towards TQM for most organizations.
All around the world, in many developed and developing countries, TQM and ISO 9000 are promoted by government bodies and many firms. The UK’s Department of Trade and Industry has published a full range of booklets and videos on TQM. The Single European Marketing Directive on Standards and Certification stipulates that ISO 9000 should be encouraged among its member countries. Many Japanese companies have introduced successfully TQM and ISO 9000. In 1992, the Chinese Government required that all foreign manufacturers investing in China and exporting their goods should seek ISO 9000 registration. All this evidence has supported one theme: ISO 9000 and TQM are the passports to success.