The Principles of Quality Management
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The document discusses the evolution and importance of quality management systems (QMS), emphasizing the ISO 9000 family of standards that guide organizations in meeting customer needs. It outlines the historical development of QMS phases, key principles of quality management, and the cost implications of quality management practices. The document underlines the critical role of customer satisfaction and continual improvement in enhancing organizational performance.
The Principles of Quality Management
- 1. EUROPEAN UNION WATER INITIATIVE PLUS FOR THE EASTERN PARTNERSHIP Support of Water Policy Reforms towards Integrated Water Resources Management Workshop on laboratory basics and fundamentals of ISO Certification
- 2. The Principles of Quality Management Cristina Trimbacher 2
- 3. Overview History/Development of Quality Management Systems Quality understanding and quality costs Development of Quality Management Standards The ISO 9000 family of standards The PDCA-Circle What is Quality? Customers? The eight ISO 9001 principles of quality management Benefits of a quality management system 3
- 4. Development of Quality Management Systems Quality, Quality Control and Quality Management are becoming more and more central tasks of future- oriented companies ! Quality Management derived from: • Quality control/Inspections in industry after the 2nd world war • Shift from manufacturing to service orientation 4
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- 6. Development of QMS: Phase I Phase I: Insufficient supply of goods/Seller s Market • Economy of scarcity in post-war period (until 1963) • Customers must buy what is sold/available • Customers are seen as „bothersome“ „inconvenient“ • Determination of capability characteristics, design and quality without involvement of customers Therefore focus on production/manufacturing • Volume sales, volume growth • Quality for staff of minor importance 6
- 7. Development of QMS: Phase II Phase II: supply and demand balanced/Consumer market • Through volume growth (Phase I) balance between supply and demand • Shifting of quality requirements from seller/producer to customer/purchaser • First agreements for Acceptable Quality Levels (AQL) • And based on this first systematic measures for quality control and quality assurance • Beginning of statistical quality assurance ! 7
- 8. Development of QMS: Phase III Phase III: oversupply of goods /competition market: • Increasing competition of suppliers • Customers can therefore ask for zero-defect goods • Customers are also interested in the quality control systems of suppliers in order to avoid errors = PREVENTION ! • Supplier audits esp. in automobile industry and their suppliers get established • First certifications of quality control systems for confidence building and as a marketing instrument 8
- 9. Development of QMS: Phase IV Phase IV: change and enhancement of the understanding of a product • Quality of goods is self evident • services = intangible products are criteria for purchase decisions of customers • Certification expands to companies in the service sector (tertiary sector) • Customer satisfaction becomes more and more a measure of quality • Qualified staff members are necessary resources in companies, organisational culture and models are developed (up to Total quality management or TQM) • Implementation of QMS in administrations 9
- 10. Development of QMS: Phase V Phase V: linking-up of suppliers/customers, Quality of services, Environmental aspects, sustainability: • Optimisation of the customer-supplier system, linking-up of different companies in the process of product development • Internationalisation: only certified QM Systems can build up confidence • Start of implementation of environmental management systems in companies and administrations The Quality Management System becomes part of an integrative Management System! 10
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- 12. Quality understanding Quality has become a question of economic survival In previous years, very often production did not match the market • Customer needs were not considered • Instead, technically feasible and economically reasonable goods were developed Result: 90% of customers avoid products or services 12
- 13. Quality understanding Customer satisfaction is a matter of great concern in any Quality Management System 13
- 14. Quality understanding • Avoid up to 90% the product/service Unsatisfied customers • Report at least nine other persons, that they are not satisfied Unsatisfied customers • Only 4% of customers contact directly the company for complaints Unsatisfied customers 14
- 15. Who are your customers ? 15 hmmm?? Clients…. What?? Who??
- 16. Quality costs For many companies QM costs are still additional costs! • Costs for set-up & implementation of a QMS are known; savings derived from QMS are considerable, but not well known – barrier ! Error/failure costs • Non quality and not detecting errors/failures/deviations in different stages of a product development process (conception, construction, planning) lead to enormous costs or inefficient use of human resources 16
- 17. Quality costs 1-10-100 rule • Costs of one failure increase with each phase being later detected by a factor of 10 • One dollar spent on prevention will save 10 dollars on correction and 100 dollar on failure costs could be translated: One working day (wd) spent on prevention will save 10 wd on correction and 100 wd on failure costs. Source: Total Quality Management, Joel E.Ross 17
- 18. Development of Quality Management Standards First technical guidelines for quality control in the 50ties Impulse from the United States • High quality requirements at the military, in space flight and later on high safety requirements in nuclear power stations • 1st QM-Standard MIL-Q- 5 of 1 5 , Title “Quality program requirements" • 1987 international series of Quality Management Standard ISO 9000 18
- 19. The ISO 9000 family of standards The ISO 9000 family of standards are related to quality management systems and designed to help organizations ensure that they meet the needs of customers and other stakeholders they are not specific to products or services, but apply to the processes that create them ! 19
- 20. The ISO 9000 family of standards The standards are of generic nature ! They can be used by both manufacturing and servicing organizations. 20
- 21. Four Core Standards 1. ISO 9000: definitions, vocabulary, fundamentals incl. PCDA cycle (Deming cycle) 2. ISO 9001: requirements of the quality management system, process approach 3. ISO 9004: Guidelines for performance improvements • The standard is based on a number of quality management principles including a strong customer focus, the motivation and implication of top management, the process approach and continual improvement. 4. ISO 19011: guidelines for quality and/or environmental management systems audit 21
- 22. Four Core Standards Of these, only ISO 9001 is a certifiable standard i.e. ISO 9001 is the only standard that you can be assessed against with the others being for guidance and information purposes only ! https://www.iso.org/home.html 22
- 23. The PDCA Cycle for continual improvement • DO• CHECK • PLAN• ACT Request corrective actions Establish objectives and processes Implement the plan, execute the process Study actual results and compare to expected 23 iterative four-step management method for the control and continual improvement of processes and products Created by Mr. William Edwards Deming (1900-1993) • American physicist, statistician and pioneer in the field of quality management
- 24. How would you define Quality ? 24 What?? Quality ?? Hmmm, no idea ??
- 25. What is quality ? Definition of ‚Quality (ISO 9000:2015) • The degree to which a set of inherent characteristics fulfils requirements. Customers are interested that the product/service they buy meets the expected quality 25 Source: shareicon.net
- 26. What is a quality management system? a way of defining how an organization can meet the requirements of its customers and other stakeholders affected by its work In a formalized system • with documented processes, procedures and responsibilities for achieving quality goals • to improve its effectiveness and efficiency on a continuous basis. 26
- 27. The ISO 9001:2015 quality management principles 27
- 28. The ISO 9001:2015 quality management principles 1. Customer focus Organisations depend on their customers should understand current and future customers needs Should meet customers requirements And strive to exceed customers expectations 28
- 29. The ISO 9001:2015 quality management principles 2. Leadership Leaders establish unity of purpose and direction of the organisation They should create and maintain the internal environment in which people become fully involved in achieving the organisation s objective Increased effectiveness and efficiency Better coordination of the organization s processes 29
- 30. The ISO 9001:2015 quality management principles 3. Engagement of people People at all levels are the essence of an organization ! Their full involvement enables their abilities to be used for the organisation s benefit 4. Process approach A desired result is achieved more efficiently when activities and related resources are understood and managed as interrelated process PDCA-Cycle can be applied to all processes and whole quality management system 30
- 31. The ISO 9001:2015 quality management principles 5. Improvement Continual improvement of the organization s overall performance should be permanent objective of the organisation To react on changes To create new opportunities 31
- 32. The ISO 9001:2015 quality management principles 6. Evidence-based to decision making Effective decisions are based on the analysis of data and information Facts, evidence and data analysis lead to greater objectivity and confidence in decision making 7. Relationship management A mutually beneficial relationship with all relevant interested parties enhances the ability to create value 32
- 33. Costs of Quality Management Implementation • Working time of laboratory staff • Time of personnel responsible for quality management issues • Training of staff • Hardware/Software • External advice Certification • Audit • Certificate 33 Maintenance Regular costs for keeping your QM- System alive and for further improvement • Update of documentation • Repair & services • Quality training • Quality assurance • Quality planning
- 34. Benefits of Quality Management Build quality into products and services from design onwards Increase efficiency and effectiveness by early recognizing problems -> risk based planning! Model for continual improvement Model for satisfying customers and other stakeholders reduce time spent on unproductive tasks employees satisfaction and more commitment to the organisation improved promotion of corporate image 34
- 35. Thank you for your attention! Cristina Trimbacher Quality Manager Testing Laboratory for Environmental, GMO & Fuel Analysis Calibration Laboratory for Air Quality Control T: +43-(0)1-313 04/5868 F: +43-(0)1-313 04/5222 cristina.trimbacher@umweltbundesamt.at 35