Principles a practical approach

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1 The eight Quality Management Principles a practical approach The eight Quality Management Principles (QMP s) are as fundamental and integral a part of the IS0 9000:2000 series as the requirements for management review and preventive action, and provide a platform for deploying good management practice throughout the organization. BY JOHN HELE John Hele is a Business Support Manager with the British Standards Institution (BSI). He has been involved with quality for nearly 27 years, including 17 with BSI and the other 10 with a defence contractor, dealing with materials technology. He has overall responsibility for quality management systems within BSI Management Systems, including responsibility for the ISO 9000:2000 revisions through membership of ISO technical committee ISO/TC 176 s Subcommittee 2, where he works on user support. BSI, 389 Chiswick High Road, London W4 4AL, United Kingdom. Tel Fax John.Hele@ bsi-global.com Web T The QMP s provide top management with the framework for introducing good management practice he eight Quality Management Principles (QMP s) are as fundamental and integral a part of the IS0 9000:2000 series as management review and preventive action. The QMP s not only provide the foundation for the rest of the series requirements and guidance, but more importantly provide top management with the framework for introducing good management practice to underpin the organization s management systems. When ISO decided to embark upon the revision of the ISO 9000 series, those involved in the development of the standards decided through experience and knowledge of management systems that the principles would provide a framework to help organizations towards continual improvement. For an organization to gain the most from the ISO 9000:2000 series, they should first read and implement ISO 9000 and ISO In order to understand the concepts and philosophies behind the standards, the user should start with the Introduction and Fundamentals sections of ISO 9000:2000, Quality management systems Fundamentals and vocabulary. The user will note there the references to interested parties. These are explained more fully in ISO 9004:2000, Quality management systems Guidelines for performance improvements, and they should be considered when introducing a management system based on the ISO 9000:2000, series in conjunction with the QMP s. The eight QMP s are: Customer focus Leadership Involvement of people Process approach System approach to management Continual improvement Factual approach to decision making Mutually beneficial supplier relationships. For the ISO 9000:2000 series of standards to work effectively, a clear understanding of the principles is required together with how they work in conjunction with the requirements of ISO 9001:2000, Quality management systems Requirements. Each of the principles has its own part to play in the management of the organization, but the main benefit is derived from looking at the principles as one homogeneous set of enablers that top managers can use and develop for the benefit of their organization. 36 ISO Management Systems March-April 2003

2 Customer focus Organizations depend on their customers and therefore should understand current and future customer needs, should meet customer requirements and strive to exceed customer expectations. Without customers, an organization cannot exist. There are many facets to the relationship with the customer, but probably the most important one is to understand what the customers current and future requirements are. By establishing this understanding, the organization will be able to focus on what its customers current needs are and plan for their future needs with, in some cases, the help of the organization s suppliers. It is vital that strategically, the top management of the organization understands the overall and market needs of their current and future customers so that it can make any necessary plans and arrangements to meet these requirements. Clearly, the relationships that are developed with customers are key to the well-being of the organization and its customers. These relationships are tested to determine the level of satisfaction that the customer has with the organization s product, also taking into account the customer s perception of the service that delivered the product. The results of these satisfaction measures should be fed into the strategic information that top management uses to determine the future strategy and resource needs of the organization. Communication should also play a large part in the relationship with clients and with these relationships, communication should be twoway, the customer having a clear understanding of how to request help and information, as well as whom they should contact. Leadership 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. The opening line of the Introduction to ISO 9001:2000 states: The adoption of a quality management system should be a strategic decision of an organization. Strategy should be agreed and communicated from the highest level, in other words those that lead the organization. Section 5, Management responsibility, of ISO 9001 should be specifically owned and addressed by the most senior management. It is only through good communication with the rest of the organization that the policies and objectives will be known and monitored, and it also provides the impetus for the organization to improve, as well as motivating the workforce to strive for a better future. Although top management has overall responsibility for the entire management system, it should pay special attention to Clause 4.1, Quality management system General requirements, which should be used as a checklist for establishing the system. Top managers should also note that they are responsible for resources (Clause 5.1e), so the whole of Section 6, Resource management, is also applicable. For top management to clearly understand what goes on within the organization, as well as understanding the current and future needs of their customers, it will need to be involved in the management review process. With the ISO 9000:2000 series, it is now a strategic activity of management to seek continual improvement in order to establish and improve upon customer satisfaction. Management will also need to take into consideration the interested parties of the organization that are outlined in ISO 9004:2000. These are:! customers! suppliers! the organization and its shareholders (if it has any)! staff, and! society. ISO Management Systems March-April

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. People are the essence of any organization. Without them, the organization would not exist, yet their treatment at times leaves a lot to be desired. The requirements of the ISO 9000:2000 series have now addressed this potentially damaging area by making sure that the people within an organization are communicated to, know and understand the relevance and importance of their activities, and how these contribute to their own and the organization s objectives. People who know and understand their role have increased morale and feel more motivated and, it is hoped, want to come to work as opposed to having to. ISO 9001:2000 now asks that the competencies of all staff are known and evaluated with a view to making sure that they have the right skills to do their job effectively. How these skills are acquired is not important it is the fact that they have them in order to do their job which counts. Process approach A desired result is achieved more efficiently when activities and related resources are managed as a process. The process approach is one of the cornerstones of the standard. Processes should be looked at as to what happens to produce a product or deliver a service from an organization, i.e. what do you do to deliver the product or service to your customer? For any organization to provide its customers with what has been agreed, the organization should work as one team with a common goal not, as is often the case, where the structure of the organization makes its operate as a series of independent functions. All organizations should see themselves as providing services, whether they produce products or deliver services the only difference is the end product. Therefore, the processes should be throughout the organization and not just in the area that directly provides the products and services. It is important to determine the interaction of each process with other processes that will have an effect on or input to that process. The whole system should be seen as one homogenous system with no part being in isolation. The organization should then look at each activity of the process and determine the threats and risks to that activity. From this analysis, the right level of documentation/instructions can be made available in balance with the competencies of those who operate the processes. 38 ISO Management Systems March-April 2003

4 System approach to management Identifying, understanding and managing interrelated processes as a system contributes to the organization's effectiveness and efficiency in achieving its objectives. Having processes is one thing they also need to be managed. The organization should look at the interdependences of the processes and how these can be integrated into one system. For the processes to work effectively, however, the organization should be asking itself the following questions:! Who is responsible for the process or who owns the process?! Does that person make sure that the sequence of the process is correct and, where other processes interact, that these do so in an effective way?! Who is responsible for ensuring that there are adequate resources people and equipment for the process to be effective?! Who is responsible for the measurement and monitoring of the process?! Who is responsible for ensuring that the process is being improved where this is necessary? By reviewing the above points periodically, management should be able to ensure processes that operate in accordance with management policy achieve business objectives. To aid this, knowing clearly how the processes should be managed also helps when deciding and defining the roles, responsibilities and authorities required within the organization to ensure that the processes are as efficient and effective as possible. Continual improvement Continual improvement of the organization's overall performance should be a permanent objective of the organization. For any organization, continual improvement should not be seen as a daunting task. It should, however, be seen as a permanent objective of the organization. There are always areas of the business where improvements can be made. The sources of information for achieving this are multiple, such as the following:! Look at the customer feedback information and see what it is telling you about your organization and its products and services.! Look at the various threats and risks to the business and where improvements can be made to mitigate those risks.! What feedback are you receiving from the staff within the business that may be suggesting where improvements can be made to improve morale and motivation?! Where might you be able to make improvements with your products/services by discussing various aspects with your suppliers?! What information can you glean from internal reviews/audits to indicate opportunities and areas for improvement? Before you embark upon the improvement cycle, you must decide what the situation is in the area where the improvements are to be made, i.e. measure the situation now, otherwise, when you come to see if an improvement has been made you will have nothing to compare the new situation with. Only carry out improvements that are going to help your organization. If a suggested improvement is not ultimately going to produce dividends, then the chances are you should not be doing it. ISO Management Systems March-April

5 Factual approach to decision making Effective decisions are based on the analysis of data and information. Making decisions on facts that have been clearly analysed and presented should be the goal of any business. If ISO 9001:2000 is used in the spirit of the standard, then there will be factual evidence produced that, once analysed, can be used to make decisions throughout the business on a range of subjects such as: continual improvement; the enhancement of processes; improving customer satisfaction; improving staff morale and motivation, and for the top management of the organization to make the right decisions taking into account the needs and views of all interested parties. Making the right decisions for the organization is never easy, but using the factual information with experience and intuition can only help. Mutually beneficial supplier relationships An organization and its suppliers are interdependent and a mutually beneficial relationship enhances the ability of both to create value. Suppliers should be seen by any business as being as important as customers are. Think what would happen if there were no suppliers? You would probably not be in business. Where would you buy your materials and services? It is important to have good relations with your suppliers as it is in their interest as much as it is yours. Remember, you are their customers and they want in general to do the best for you, but probably cannot if they are not fully aware of all your requirements. This is certainly the case for many smaller businesses that rely heavily on their suppliers. Do you as an organization let your suppliers know of not only your requirements, but also the current and future needs of your customers so that between you, you can put in place plans for future products and services? It is also probable that there may be a chance to optimize resources to the benefit of both you and your suppliers. Communications will also be enhanced and improved by having good relationships with your suppliers who will help resolve problems when these arise. By having these relationships with your suppliers, there is value for both the organization and the suppliers. It is also probable that, when required, both parties can act together quickly to take advantage of different opportunities. Conclusion In conclusion, the QMP s are the bedrock (together with considering the requirements of interested parties) of the ISO 9000:2000 series. The standards are now true management system standards and as such should be driven, controlled and reviewed by the most senior management within the organization, taking into account the concepts and philosophies behind the principles, when introducing or updating their management systems. 40 ISO Management Systems March-April 2003

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