THE ISO QUALITY MANAGEMENT PRINCIPLES AND THE EFQM MODEL

THE ISO QUALITY MANAGEMENT PRINCIPLES AND THE EFQM MODEL Laurențiu Aurel MIHAIL 1 ABSTRACT: this article intends to present a useful approach regarding correlation that exists between 8 quality, according with Vision 2000 of ISO 9001, stard that is base of ISO / TS 16949:2009, too. The proposed approach is useful for implementation for auditing quality systems for automotive sector (but not only, taking in consideration fact that stard ISO 9001:2008 is included in ISO/TS 16949:2009). The takes an appropriate approach for al, taking in consideration system s maturity, refore, being complementary to accredited certification following ISO stards for quality. KEY WORDS: quality system, quality, EFQM. 1 INTRODUCTION The phenomenon of economical social globalization is, nowadays, a well known truth. In automotive sector, that is, practically, biggest actor in machine building (manufacturing) industrial sector, this fact is an everyday reality. The automobiles that are designed in one country may be assembled in anor one, with parts made in anor third, fourth or fifth country, so on. Organizations operating in automotive sector have to improve continuously product s intrinsic quality quality of related services, to reduce material labor costs, waste vulnerability in supply chain, hence, to attract some of best engineering talents work are following perfectly synchronized industrial systems. Only in this manner final assembly O.E.M. (Original Equipment Manufacturer) plants can be satisfied. The quality is a vector that acts an important role in this approach. Therefore, quality systems are, toger with or kind of systems, stardized for being better relatively uniformly implemented in global industry. Talking about automotive sector, one of most globalised one within global production industry, is well known incidence of ISO/TS 16949 certification, matory at least for OEM s tier 1 suppliers. This is main reason 1 Universitatea Transilvania din Brașov, Facultatea de Inginerie Tehnologică și Management Industrial, Departamentul Ingineria Fabricației, str. Mihai Viteazul nr. 5, cod 500036, Brașov, România E-mail: L.Mihail@unitbv.ro that makes this certification so precious (ISO/TS 2009). His main aim is to minimize supply chain risks, OEM s pushing all risks on ir supplier s responsibility, by synchronizing ir systems as strictly as possible. This synchronization is made possible by various means, one of m being stardization approach of all activities certification system. Because of quality impact in industrial world, it appears science of quality, as a relatively new branch of science. Therefore, re are, already, several main schools of thinking in this area, which are presented in next paragraphs. Practically, re are two main schools of thinking on quality each of m seeing it relatively differently. One views quality as of success or elimination of failure (Hoyles, 2005). They both may be considered valid, each of m approaching subject from a different point of view. The "success" school is characterized by five Figure 1. The main aspects that characterize "success" school 6 ACADEMIC JOURNAL OF MANUFACTURING ENGINEERING, VOL. 10, ISSUE 3/2012

Figure 2. The main aspects that characterize "failure elimination" school main aspects: - The scope; - The rules; - The criteria; - The alternatives; - The opportunity. The "failure elimination" school is characterized by five different aspects: - The utility; - The influence factors; - The control; - The verification of control; - The error proofing. In an ideal world, if it is possible to design products, services processes that could not fail it can be achieved ultimate goal. Success means not only that products, services processes fulfill ir designed function but, also, that function is what s desire to receive much more than that supplier being constrained to overtake s expressed quality requirements. 2 GENERALITIES REGARDING THE QUALITY MANAGEMENT PRINCIPLES To determinate right things to do underst why se things are necessary to be done re is needed a set of. For achieving that target of an objective it is not needed (for any activity, from any process) to get lost in all details because in this manner it is possible to lose sight of targeted objective. By details it must not be understood designed details, but noise factors (Taguchi & Chowdhury, 2004) that can impede us to reach desired target of objective. The noise factors, according with environment in which activate process, can be very different: e.g. fear of reprisals, temperature, political climate, humidity, atmospheric pressure, undisciplined operators, etc.. Like a person without very well established followed cannot be a respectfully one, a quality system, that don t follow a set of, cannot be taken in consideration by interested parties. A quality principle is defined by ISO/TC 176 as a comprehensive fundamental rule or belief, for leading operating an, aimed at continually improving performance over long term by focusing on s while addressing needs of all or interested parties (TC176, 2011). Therefore, systems that allow lean functioning of this industrial sector must be based on some. The vision 2000 of ISO 9000 family of stards reference se ones, as being bridge between old type approach new one, regarding quality systems. The ISO/TS 16949:2009, being based on ISO 9001:2008, it respects se, too (ISO, 2009, Cecolin, 2009). The 8 quality are (ISO 9001, 2008): - Customer focus; - Leadership; - Involvement of people; - Process approach; - System approach to ; - Continual ; - Factual approach to decision making; - Mutually beneficial supplier relationship. 3 THE QUALITY MANAGEMENT PRINCIPLES AND THE EFQM MODEL Between eight quality Excellence used by British Quality Foundation EFQM (European Framework for Quality Management) re is a very close match. The Excellence (EFQM, 2011) consists of eight criteria that are used to assess overall strengths of an measure his progress towards best in class. The model is based on premise that s satisfaction, people s (employee) satisfaction impact on society are achieved through leadership driving policy strategy, people, partnerships resources, processes leading ultimately to in overall business results. The fundamental concepts of 7 ACADEMIC JOURNAL OF MANUFACTURING ENGINEERING, VOL. 10,ISSUE 3/2012

Figure 1. The fundamental concepts of (EFQM, 2011) according with European Framework for Quality Management are: - Achieving balanced results; - Adding value for s; - Leading with vision, inspiration integrity; - Managing by processes; - Succeeding through people; - Nurturing creativity innovation; - Building partnership; - Taking responsibility for a sustainable future. As it is shown in Tables 1,, 8 (that present correlation between business concepts quality systems (3, 6, 7)), it exists a correlation between eight fundamental concepts (EFQM, 2011) with eight quality (ISO, 2009). Also, in same tables it is presented a comparison between old new approach of business concepts, according with EFQM. Although number of concepts remains at eight ir naming looks relatively same, a detailed reading of definition for each concept shows content has been enriched significantly relatively to previous approach represents very well aspects that can be found back in s that targets (EFQM, 2011). Putting on first place involve fundament of quality assurance, because quality is defined by (table 1). The leadership is fundament by which can be managed for satisfying, with his explicit implicit requirements, regarding product / or service. Leader is person that is educated, is open minded, is a good technician in his branch, etc. The leadership can be considered to be social intelligence within al environment (table 2). The quality can be obtained by people with people. Therefore, employees all or EFQM Customer focus The is final arbiter of product service quality loyalty, retention market share gain are best optimized through a clear focus on needs of current potential s. 2003 EFQM Leadership constancy of purpose The behavior of an 's leaders creates a clarity unity of purpose within an environment in which its people can excel. Table 1. Principle 1 - Customer 2010 Adding Value for Customers Now, focus is on clearly defining communicating value proposition on engaging s actively in product service design processes. s know that s are ir primary reason for being strive to innovate create value for m by understing anticipating ir needs expectations. Table 2. Principle 2 - Leading 2010 Leading with Vision, Inspiration & Integrity The concept is now more dynamic, it focuses on ability of leaders to adapt, react gain commitment of all stakeholders for ensuring ongoing success of. s have leaders who shape future make it happen, acting as role models for its values ethics. 8 ACADEMIC JOURNAL OF MANUFACTURING ENGINEERING, VOL. 10, ISSUE 3/2012 Customer focus Organizations depend on ir s refore should underst current future needs, meet requirements strive to exceed expectations. Leadership Leaders establish unity of purpose direction for. They should create maintain internal environment in which people can become fully involved in achieving 's objectives.

EFQM People development involvement The full potential of stakeholders of an is best released through shared values a culture of trust empowerment, which encourages involvement of everyone. Table 3. Principle 3 - People 2010 Succeeding through People The focus is now on creating a balance between strategic needs of personal expectations aspirations of people to gain ir commitment ir continual engagement. s value ir people create a culture of empowerment for balanced achievement of al personal empowerment for balanced achievement of al personal goals. Involvement of people People at all levels are essence of an ir full involvement enables ir abilities to be used for 's benefit. interested parties must be taken in consideration as equal partners for accomplishing targeted indicators, which are translated in quality (table 3). The process approach in, also, best way for searching accomplishing quality as quality assurance quality (table 4). The process has to be measured as inputs outputs by process s indicator, that underlines his performances. The documentation is, also, easier by managing business through his processes. These are some reasons that push leaders to perform within al environments managing it by process approach. The process mapping, a relatively apparently symbolic approach for non specialists, is a critical step in developing an efficient system. The continual innovation in whatever activity, process business detail is a matory requirement not only because of reference stards used for certification or requirements for classification according European, Japanese, American business systems, but, also, because concurrence 2003 EFQM Management by processes facts Organizations perform more effectively when all interrelated activities are understood, systematically managed decisions concerning current operations planned s are made using reliable information that includes stakeholder perceptions. Table 4. Principle 4 Process 2010 EFQM model Managing by Processes The focus is now on how processes are designed to deliver strategy, with scope to exp beyond classic boundaries of. s are managed through structured strategically aligned processes using fact-based decision making to create balanced sustained results. globalised market economy push business 9 ACADEMIC JOURNAL OF MANUFACTURING ENGINEERING, VOL. 10,ISSUE 3/2012 2000 quality Process approach A desired result is achieved more efficiently when related resources activities are managed as a process. Factual approach to decision-making Effective decisions are based on analysis of data information. Systems approach Identifying, understing managing interrelated processes as a system contributes to 's effectiveness efficiency in achieving its objectives owners to action in this direction. The progress means efficiency based on innovation (table 5). The seriousness is main fundament in all kind of inter-human relationships. This idea is accentuated in cases that relationships are based on sentiments /or money. The business relationships are based on both of m,, especially on second specified one financial terms. Therefore mutual relationships, recognized all over world by international legal directives laws, are fundament of solid risk-less business relations (table 6). According with a compilation of several reference stards used for certification of systems (quality, environment, safety, hygiene, social accountability, information security, etc.), referenced in ISO 9004:2009 (ISO, 2009), excellent is one that respects

Table 5. Principle 5 Innovation, 2010 EFQM Continuous learning, innovation Organizational performance is maximized when it is based on sharing of knowledge within a culture of continuous learning, innovation Nurturing Creativity & Innovation The concept now recognizes need to develop engage with networks engaging all stakeholders as potential sources of innovation creativity. s generate increased value levels of performance through continual systematic innovation by harnessing creativity of ir stakeholders. Continual Continual of 's overall performance should be a permanent objective of., employees, society, environment, suppliers, not only. The social responsibility of s from industrial sector has a bigger impact, especially for industrial sectors spread at global level, as is automotive industry (table 7). As much time as countries involved in automotive business are from all kind of countries, can be assured only by taking in consideration a vast range of aspects: culture, politics, habitudes, religion, etc. The social responsibility takes in consideration not only labor law ethics, but all aspects that influence activities from processes. The Table 6. Principle 6 Partnership based relations 2010 EFQM Partnership development Building Partnerships Mutually beneficial supplier relationships 1 2 3 1 2 3 The concept has been extended to include partnerships beyond supply chain to recognize that se should be based on sustainable mutual benefits to succeed. s seek, develop maintain trusting relationships with various partners to ensure mutual success. These partnerships may be formed with s, society, key suppliers, educational bodies or non-governmental s. An works more effectively when it has mutually beneficial relationships, built on trust, sharing of knowledge integration with its partners. 10 ACADEMIC JOURNAL OF MANUFACTURING ENGINEERING, VOL. 10, ISSUE 3/2012 An its suppliers are interdependent a mutually beneficial relationship enhances ability of both to create value. Table 7. Principle 7 Social responsibility 2003 EFQM Corporate Social Responsibility The long-term interest of its people are best served by adopting an ethical approach exceeding expectations regulations of community at large. 2010 Taking Responsibility for a Sustainable Future The concept now focuses on actively taking responsibility for s activities managing its impact on wider community. s embed within ir culture an ethical mindset, clear values highest stards of al behavior, all of which enable m to strive for economic, social ecological sustainability. Public responsibility In ISO 9004, Clause 5.2.2 is specified that success of depends on understing considering current future needs expectations of interested parties. social responsibility regards all parties involved in a business, which have a role to play in s success.

Table 8. Principle 8 Measurable results EFQM Results orientation Excellence is dependent on balancing satisfying needs of all relevant stakeholders. 2010 Achieving Balanced Results Focus is now on developing key set of results required to monitor progress against vision, mission strategy, enabling leaders to make better effective timely decisions. s meet ir mission progress towards ir vision through planning achieving a balanced set of results that meet both short long term needs of ir stakeholders, where relevant, exceed m. Results orientation ISO 9004 through Clause 5.2.2 recommend that an should identify its interested parties maintain a balanced response to ir needs expectations. Finally, all results must be measurable because only measurable activities can be managed (organized, planned, controlled, analyzed optimized / improved). One of main quality tools that can be used for measuring processes are Key Performance Indicators (KPI). 4 CONCLUDING REMARKS The fundamental concepts of expressed by EFQM are a unique powerful way to define status of being excellent in a comprehensive way. Also, 8 EFQM fundamental concepts 8 quality system, are unnumbered; y have no order of sequence, weight or importance (EFQM, 2011). Which of se 8 are most important to pursue depends on current state specific environment in which an lives in what it aspires to become in future. The present article is a state of art comparison regarding fundamental aspects that are base of quality, being useful for all professionals that start ir career in this branch or for already certified professionals, for completing ir vision. As future developments, taking account of globalization, present article can be starting point for future comparisons between ISO quality American / or Japanese quality model. 5 REFERENCES Cecolin, F., SIGMA_Q: System of Integration for a Global Management Addressed to Total Quality, Advances in Manufacturing Engineering, Quality Production Systems MEQAPS 09, Included in ISI/SCI Web of Science Web of Knowledge, Transilvania University of Brasov, Brasov, Romania, September 24-26, 2009, ISBN 978 960 474 121 2, ISSN 1790 2769. http://www.tc176.org/ accessed at 10.02.2011 http://www.efqm.org/en/ accessed at 01.02.2011 Hoyles, D., Automotive Quality Systems Hbook second edition, Elsevier Ltd, 2005, ISBN: 978-0-7506-6663-3, USA ISO 9004:2009, Managing for Sustained Success of an Organization. A Quality Management Approach, International Stard Organization, 2009 ISO/TS 16949:2009 Quality Management Systems Particular requirements for application of ISO 9001:2008 for automotive production relevant service part s, International Stard Organization, 2009. Mihail, L.A., Negruș, A.M., Chiru, A., The Automobile Environment, Chapter 34, The Incidence Quality Principles for Management Systems of Automotive Industry Suppliers, pp. 451 462, Edited by Anghel Chiru, Cambridge Scholars Publishing, ISBN (10): 1-4438-2972-2, ISBN (13): 978-1-4438-2972-4, United Kingdom, 2011 Taguchi, G., Chowdhury, S., Wu, Y., Tacughi s Quality Engineering Hbook, John Willey & Sons Inc. ASI Consulting Group LLC Livonia Michigan, United States of America, 2004, ISBN: 0-471-41334-8 6 NOTATION The following symbols are used in this paper: EFQM =European Framework for Quality Management; O.E.M. = Original Equipment Manufacturer; KPI = Key Performance Indicators. 11 ACADEMIC JOURNAL OF MANUFACTURING ENGINEERING, VOL. 10,ISSUE 3/2012