QUALITY MANAGEMENT PRINCIPLES

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2 QUALITY MANAGEMENT PRINCIPLES It gives an overview of these principles and shows how, collectively, they can form a basis for performance improvement and organizational excellence. There are many different ways of applying these quality management principles. The nature of the organization and the specific challenges it faces will determine how to implement them

3 Eight Quality Management Principles (ISO 9OOO Series) Principle 1 Customer focus Principle 2 Leadership Principle 3 Involvement of people Principle 4 Process approach Principle 5 System approach to management Principle 6 Continual improvement Principle 7 Factual approach to decision making Principle 8 Mutually beneficial supplier relationships

4 Principle 1 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. To be able to be relevant in today s competitive business environment, the customer must be KING.

5 Key Benefits Increased revenue and market share obtained through flexible and fast responses to market opportunities Increased effectiveness in the use of the organization s resources to enhance customer satisfaction Improved customer loyalty leading to repeat business.

6 Principle 2 Leadership Leadership is crucial in getting everybody involved to focus on the customer, to continually improve and to focus on the facts. Strong and good leadership influences people, empower them through education and training and above all provide the vision necessary to achieve the quality goals. 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.

7 Key Benefits People will understand and be motivated towards the organization s goals and objectives Activities are evaluated, aligned and implemented in a unified way Miscommunication between levels of an organization will be minimized.

8 Principle 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. The management of quality is not a responsibility of a department, but a collective responsibility. Everyone must buy into the idea of quality management and be empowered to do so. This requires strong leadership. (Eg the story of the security man who took the keys home because he was not informed of an impending interview the next day)

9 Key Benefits Motivated, committed and involved people within the organization Innovation and creativity in furthering the organization s objectives People being accountable for their own performance People eager to participate in and contribute to continual improvement.

10 Principle 4 Process Approach A desired result is achieved more efficiently when activities and related resources are managed as a process.

11 Key Benefits Lower costs and shorter cycle times through effective use of resources Improved, consistent and predictable results Focused and prioritized improvement opportunities.

12 Principle 5 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.

13 Key Benefits Integration and alignment of the processes that will best achieve the desired results Ability to focus effort on the key processes Providing confidence to interested parties as to the consistency, effectiveness and efficiency of the organization.

14 Principle 6 Continual Improvement Excellent organisations are those that have the ability to re-invent themselves when the times changes to be relevant. They do this through continual improvement. Continual improvement means to pause and take stock of what has been done against what was intended to see if results are on track or there are some Gaps to fill. The aim of the evaluation is to sustain customer interest in the business.

15 Key Benefits Performance advantage through improved organizational capabilities Alignment of improvement activities at all levels to an organization s strategic intent Flexibility to react quickly to opportunities.

16 Principle 7 Factual Approach to Decision Making Effective decisions are based on the analysis of data and information. To achieve excellence, all decisions must be based on facts and not on Feelings or on personal whims. As soon as emotions sets in, it clouds ones judgements from the true picture and it would lead to managing only the symptoms of the problem instead of the root of the problem. This is what Deming calls Tampering

17 Key Benefits Informed decisions An increased ability to demonstrate the effectiveness of past decisions through reference to factual records Increased ability to review, challenge and change opinions and decisions.

18 Principle 8 Mutually Beneficial Supplier Relationships An organization and its suppliers are interdependent and a mutually beneficial relationship enhances the ability of both to create value

19 Key Benefits Increased ability to create value for both parties Flexibility and speed of joint responses to changing market or customer needs and expectations Optimization of costs and resources.

20 Questions and Contributions

21 The Roots Of Our Problems Are: Wealth Without Work, Pleasure Without Conscience, Knowledge Without Character, Commerce Without Morality, Science Without Humanity, Worship Without Sacrifice, Politics Without Principles. - Mohandas K. Gandhi -

22 Thank you