Quality Management Principles Become CEO Management Practices original

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 standard’s Quality Management Principles (QMPs) • Explore how these principles – can be applied – are being applied – should be applied in practice 2

ISO 9004 -2000 http: //www. asq. org/quality-press/display-item/ index. html? item=T 2104 E&author= ANSI/ISO/ASQ%20 Q 9004 -2000 3

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 4

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 5

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, let’s have a look at the QMPs. . . 6

Quality Management Principles • the Quality Management Principles are: – A framework for leading an organization – by focusing on the needs of customers – and other stakeholders. 7

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* Let’s walk through them one by one. . . 8

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 9

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, Mc. Graw-Hill, 1997, p. 67 from Juran and Gyrna, Quality Planning and Analysis, 3 rd Ed. Mc. Graw-Hill, 1993, p. 247, 10 used with permission

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? 11

Principle 2: Leadership unity, purpose, and involvement* • Leaders establish – unity of purpose and direction – environment where people are involved • to achieve – communication, motivation, alignment – organization’s 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 12

Vision Led Value Driven Leadership 13

Principle 2: Leadership unity, purpose, and involvement* • Leadership skills must be cultivated 14

Principle 2: Leadership unity, purpose, and involvement* How do the leaders in your life perform in these respects? How about YOU as a leader? 15

Principle 3: People Involvement People. . . are the essence of the organization. . . • People at all levels – are the essence – their full involvement – organization’s benefit (& those of it’s 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) 16

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. 1 a: The Empowerment Cube – The wherewithal to do it *Guest Editorial, by John Troyer, Quality Digest, Oct. 1996, p. 64 17

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? 18

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/ 19

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 20

Principle 4: Process Approach Baldrige Approach, Category 6: Process Management 21

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? 22

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 23

Principle 5: Systems Approach A Business System of Processes 24

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 25

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 26

Principle 6: Continual Improvement Blueprint for Excellence at the Air Force Logistics Command (AFLC) 27

Principle 7: Factual Approach. . . based on. . analysis of data and information. * • “Can’t manage what you can’t 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 28

Principle 7: Factual Approach. . . From: “As Easy as Two Plus Two”, News for a Change, Association for Quality and Participation, Cincinnati, OH. , Nov. 1997, p. 4 29

Principle 7: Factual Approach to Decision-Making Measuring Business Processes From: Kordupleski, R. , Rust, R, and Zahorik, A, “Why Improving Quality Doesn’t Improve Quality”, California Management Review, vol. 38, no. 3, Spring 1993, p. 91 30

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? 31

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 32

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_catalogue/management_standards/iso_9000_iso_14000/qmp. htm for further elaboration 33

Further thoughts? 34

Further thoughts? THANK YOU 35

Sources • California Management Review, S 549 Haas School of Business #1900, Berkeley, CA 94720, cmr@haas. berkeley. edu • ANSI/ISO/ASQ Q 9004 -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 Q 9001 - 1994, Quality Management and Quality Assurance Standards--Guidelines for Selection and Use, ASQ, Milwaukee, WI, 1994 • Ludwig-Becker, M. , Electronics Quality Management Handbook, Mc. Graw-Hill, 1998, becker 2@worldnet. att. net 36

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 Cohen’s 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 37