Influence of quality management systems on the environmental changes and the work conditions in industry

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1 Influence of quality management systems on the environmental changes and the work conditions in industry D. Zawada-Michulka': R. Strulak' and A. A1 - Hassan2 l Technical University of Szczecin, Szczecin, Poland University of Szczecin, Szczecin. Poland Abstract In this paper we introduce the influence of quality management systems on the environmental changes and the work conditions in industry. More specifically, we discuss system based on the issues of IS0 norms series 9000, which have become popular in Poland. Because of the fact that quality systems mean more or less radical mental, political, institutional and organisational changes which are based on knowledge development and information, we must look for not only modem technologies and new techniques of philosophical conception, but also high managing technologies. The application of these technologies (quality management systems) will allow for much more efficient solutions of the company management problems and flexible disposability in terms of environmental conditions. 1 Introduction At the same time in history that sociotechnical systems theory was postulated, ergonomics emerged as a necessary science, and TQM was formulated to improve industrial operations. World War I1 created a multitude of man-machine interface problems and a social need for ergonomics. Following the war in response to the need to rebuild Europe, the sociotechnical school integrated the structural and human perspectives. At about this time, W. E. Deming agreed to apply his knowledge to Japan in order to help assist that war-tom nation with their rebuilding efforts. Deming's methods (theory expressed in the 14 points of

2 Deming) have become recognised as the cornerstone of the modern TQM or total quality management movement which landed on the shores of the U.S. and Europe in the early 1980's and continues today. Deming's theory is expressed in his 14 points, which have become the basis for the transformation of American and European industry. The 14 points apply anywhere, to small organisations as well as to large ones, to the service industry as well as to manufacturing. They apply to a division within a company. 2 Quality Management If we want to speak about Quality Management, we must know the definition of quality. That is, quality as applicable to industry. One of the attraction of quality is that it is something positive. There are a lot of definitions of quality. We want to introduce one which is most popular. It is definition by the IS vocabulary. IS defmes quality as: "The totality of features and characteristics of a product or service that bear on its ability to satisfy stated or implied needs." Following the IS descriptions, quality management can be defmed as: "That aspect of the overall management function that determines and implements the quality policy." Quality policy is defined as: "The overall quality intentions and direction of an organisation as regards quality as formally expressed by top management". With growing global competition, Quality Management is becoming increasingly important to the leadership and management of all organisations. Quality Management Principles provide understanding of and guidance on the application of Quality Management. By applying the following eight Quality Management Principles. organisations will produce benefits for customers, owners, people, suppliers and society at large. Principle 1 - Customer-Focused Organisation Organisations depend on their customers and therefore should understand current and future customer needs, meet customer requirements, and strive to exceed customer expectations. Principle 2 - Leadership Leaders establish unity of purpose and direction of organisation. They should create and maintain the internal environment in which people can become fully involved in achieving the organisation's objectives. Principle 3 - Involvement of People People at all levels are the essence of an organisation and their full involvement enables their abilities to be used for the organisation's benefit. Principle 4 - Process Approach A desired result is achieved more efficiently when related resources and activities are managed as a process.

3 Principle 5 - System Approach to Management Identifying, understanding, and managing a system of interrelated processes for a given objective improves the organisation's effectiveness and efficiency. Principle 6 - Continual Improvement Continual improvement should be a permanent objective of the organisation. Principle 7 - Factual Approach to Decision Making Effective decisions and actions are based on the analysis of data and information. Principle 8 - Mutually Beneficial Supplier Relationships An organisation and its suppliers are independent and a mutually beneficial relationship enhances the ability to create value. A prominent way of applying quality management is known as TQM. Total Quality Management is a team-based management system, which aims to continuously improve performance through the continual improvement of processes. It utilises various "quality tools" and cross-functional process improvement teams. There are three central or core values in TQM: teamwork, customer focus and continuous improvement. 3 IS0 norms series 9000 Part of this philosophy in Polish companies and enterprises, where many changes are taking place, is the very popular system based on the issues of IS0 norms series The IS series of standards gives guidelines for selection and use (IS l), generic guidelines for application (IS and ) and a guide for dependability programme management (9000-4lIEC 300.1); models for quality assurance or quality systems (IS0 9001, 9002 and 9003) and guidelines for quality management and quality systems elements (IS , , and ). IS0 9001, 9002 and 9003 can be seen as norms against which the conformity of an organisation's quality assurance system can be certified. For an IS0 9001, 9002 or 9003 certificate, conformity to standards across a range of operations must be achieved and maintained by an organisation. The operations covered by the standards refer to around twenty different fields ranging from the responsibilities of directors and purchasing procedures, through to the control of equipment, and training. Not all organisations which have used the standards to improve business have applied for certification. For some organisations certification has a low priority; they are mainly interested in improvement as such and make use of the IS standards and guidelines for internal purposes. Quality assurance is aimed at all those planned and systematic actions necessary to provide adequate confidence that a product or service will satisfy given requirements for quality. For effectiveness, quality assurance usually requires a continuing evaluation of factors that affect the adequacy of the design or specifi-

4 cation for intended applications, as well as verifications and audits of production, installation and inspection operations. Providing confidence may involve producing evidence. Within an organisation, quality assurance serves as a management tool. In contractual situations, quality assurance also serves to provide confidence in the supplier. Some organisations see this as their way of quality management. It is not only the product or service that has to be of the desired quality. That is not to say they neglect the quality of the products and services. Rather, within their vision is the belief that the internal organisation must be in place in order to obtain results in terms of more material value, more commercial value, more socialisation value and intellectual value by continuous improvement, customer focus, etc. Several of the organisations use IS models and guidelines as an important element of their quality management. For them having a quality system based on the IS series of standards provide a means of demonstrating to their customers that international standards have been installed in the organisation. In addition, achieving certification based on IS0 9001, 9002 or 9003 seems to be an important way to show that the organisation is able to define its processes and to discipline its activities. By applying the principles behind IS0 9000, organisations contribute to the achievement of uniformity of performance and reliability. Figure l : Structure of IS norms. IS Quality systems - Model for quality assurance in designldevelopment, production, installation and servicing. IS Quality systems - Model for quality assurance in production, installation and servicing. IS Quality systems - Model for quality assurance in final inspection and test. IS Quality management and quality system elements. 4 Quality Management Principles When we investigate quality management, we must remember about the principles, which are used in this management. The basic principle of quality management calls, that: changing behaviour is probably the most critical area in the process of change. People do not necessarily resist change - they resist being

5 changed. It is important to give people time to understand the true needs and the process of change. Leaders promote open communication and clear vision of the organisation's future. The stronger culturelvalues towards the market place, the less need for policy, instructions, organisational charts, etc. Leaders empower and involve people to achieve the organisation's objective. Communications flows in both directions: and in four ways: Listening Talking Writing Body language and on two levels: Thoughts Feelings. Fully involved people will be innovative and creative in furthering the organisation's objectives. It is beneficial for the organisation when people are satisfied with their job and are actively involved in their personal growth and development. kpplying the Principles to Quality Assurance and Quality Management. Principle Customer-Focused Organisation Leadership Involvement of People Assure conformance to defined customer requirements. Ensure effective response to customer feedback. Set and deploy policy and verifiable objectives, provide resources and establish an environment for Quality. Establish competency levels, train and qualify personnel. Provide clear authority and responsibility. Beyond IS Understand current and future customer needs and expectations. Address customer loyalty. Measure customer satisfaction and act on it. Establish vision, direction and shared values. Set challenging goals and implement strategies to achieve them. Coach, facilitate, and empower people. Create personal ownership of an organisations goals, by using it's peoples knowledge and experience, and through education achieve involvement in operational decisions and process improvement.

6 Process Approach System Approach to Management Continual Improvement Establish, control and maintain documented processes. Establish and maintain a suitable and effective documented Quality Management System. Through management review, internal/external audits and correctivelpreventive actions, continually improve the effectiveness of the Quality Management System. Explicitly identify internallexternal customers and suppliers of processes. Focus on use of resources in process activities, leading to effective use of people, equipment, methods and materials. Identify a set of processes in a system. Understand their interdependencies. Align the processes with the organisations goals. Measure results against key objectives. Set realistic and challenging improvement goals, provide resources and give people the tools, opportunities and encouragement to contribute to continual improvement of processes. Factual Approach to Decision Making Management decisions and dons on the Quality Management Systems are based on the analysis of factual jata and information gained from reports on audits, corrective action, noncon- Forming products, customer complaints and other resources. Decisions and actions are based on the analysis of data and information to maximise productivity and to minimise waste and rework. Effort is placed minimising cost, improving performance and market share through the use of suitable tools and technology. Mutually Beneficial Supplier Relationships Adequately define and document requirements to be met by sub-contractors. Review and evaluate their performance to control the supply of quality products and services. Establish strategic alliances or partnerships, ensuring early involvement and participation defming the requirements for joint development and improvement of products, processes and systems. Develop mutual trust, respect and commitment to customer satisfaction and continual improvement.

7 6 Organisational culture As described, the implementation of modem methods of management is rather difficult. Why? It is an easy answer. People are afraid of change. Organisational changes are difficult, time-consuming and expensive processes for companies and their personnel (Hammer and Champy, 1993). To manage and facilitate change processes in organisations, different approaches, methods and tools have been developed. They include participatory methods for design and implementation of organisational changes and simulation games for teaching and simulating new work processes. Moreover, management involvement and support have been found to be very important in successful organisational changes. Hames (199 1) has shown the importance of cultural factors in implementing quality programs. Successful transformation to quality was found to need a fundamental remodelling of organisational and management culture. Organisational culture indicates how people are used to think, act, make decisions and participate in an organisation. Schein (1985) has defined organisational culture as a set of core values, behavioural norms, artefacts and behavioural patterns, which govern the way people in an organisation interact with each other and invest energy in their jobs and in the organisation at large. 7 Conclusion The best prescription is knowledge. The implementation of modem methods of management is difficult because people are afraid of change. We must make them believe and break their resistance. Very helpful in this regard will be organizational culture. References 1. James A. F. Stoner, R. Edward Freeman, Daniel R. Gilbert, J. R., Kierowanie, Ed. By Polskie Wydawnictwo Ekonomicwe, Warszawa IS , Quality - Vocabulary. 3. Internet sources. 4. T. W. Hardjono, S. Ten Have, W. D. Ten Have, The European Way to Excellence, Directorate - General I11 Industry, European Commission. 5. Hames, R. D. Managing the process of cultural change. International Journal of Quality and Reliability Management, 8 (3, pp Hammer M., Champy J., Reengineering the corporation. New York: Harper Business. 7. Schein E. G. Organizational culture and leadership.