ISO9000: 2000 quality management systems standards: TQM ...



ISO9000: 2000 quality management systems standards: TQM focus

Journal of American Academy of Business, Cambridge; Hollywood; Sep 2002; C P Kartha;

Volume: 2 , Issue: 1

Abstract:

The international Standards Organization in 1987 developed a set of quality standards, the IS09000 series, as a model for quality assurance standards in design, development, production, installation and service. The purpose behind the deployment of these standards was to simplify the global exchange of goods and services by developing a common set of quality standards. They provide a universal framework for quality assurance and quality management. The standards were revised in 1994. The most recent revision of these standards, IS09000: 2000 was published on December 15, 2000. It adopts a systems approach to quality management and includes TQM principles and procedures.

INTRODUCTION

Global competition and demand for better quality requirements by customers in recent years resulted in an emerging need for countries to develop guidelines and standards for identifying and addressing quality issues. The International Standards Organization in 1987 developed a set of quality standards known as IS09000, subsequently updated and revised in 1994, as a model for quality assurance and quality management for organizations involved in design, development, production, installation and service.

The purpose behind the deployment of IS09000 was to simplify the international exchange of goods and services by requiring a common set of quality standards. The European Community nations adopted IS09000 as the model for international standards for quality and required registration to these standards mandatory for doing business with other nations. In the mean time, the Big Three automobile manufacturers in the U.S. developed QS9000, an extended version of the IS09000 standards, and required that all its suppliers obtain registration to these standards in order to qualify for new contracts as well as for renewing existing contracts.

These developments generated immense interest in companies all over the world to actively begin the implementation of the various requirements in the standards to obtain certification. For most organizations, working towards certification was no longer an option but a necessity for survival in a competitive global market. The most recent revision of these standards, IS09000: 2000, was published on December 25, 2000.. These standards have a structure based on the principles of Total Quality Management. They define the requirements for quality management systems that enable an organization's capability to provide products that meet customer and applicable regulatory requirements. They provide a process-oriented structure and a more logical sequence of the contents. The requirements are consolidated into four main sections:

Management Responsibility,

Resource Management,

Product and/or Service Realization and,

Measurement, Analysis and Improvement.

IS09000: 2000

The latest revision of IS09000 was published in December 2000. A committee, ISO/TC 176, with representations from 36 countries was charged with the responsibility for revision. User surveys revealed that companies were looking for closer alignment of their management system with the way they actually ran their businesses. Specifically, the survey showed that the users wanted improvements in the areas of better harmonization and integration of management systems, demonstration of continuous improvement as a requirement, customer focus, user friendliness and process orientation.

This version of standards is based on eight principles, which are basic tenets of TQM. Some of the most significant aspects of this revision include its emphasis on using a process approach, using information from the system to facilitate continuous improvement, and use of customer satisfaction in improvement process. This revision also attempts to address the needs and interests of organizations in specific sectors such as telecommunication and automotive. The IS09000:2000 Standards consist of four parts:

1. IS09000: Quality Management Systems-Fundamentals and Vocabulary. It provides definitions of key terms.

2. IS09001: Quality Management Systems-Requirements; provides a set of minimum requirements for a quality management system.

3. IS09004: Quality Management Systems-Guidance for Performance Improvement; it focuses on improving the quality management system beyond the minimum requirements.

4. IS019011: Guidelines on Quality and Environmental Auditing.

The standard is based on a process model approach and structures elements into four major sections:

1. Management Responsibility,

2. Resource Management,

3. Product Realization and

4. Measurement, Analysis and Improvement.

ISO 9000:2000 QUALITY MANAGEMENT PRINCIPLES

The eight quality management principles as defined by ISO with explanations as to how they should be interpreted in the standards are listed below. They closely reflect the basic principles of TQM.

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.

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Principle 2: Leadership

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.

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.

Principle 4: Process Approach

A desired result is achieved more efficiently when activities and related resources are managed as a process.

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.

Principle 6: Continual Improvement

Continual improvement of the organization's overall performance should be a permanent objective of the organization.

Principle 7: Factual Approach to Decision Making

Effective decisions are based on the analysis of data and information.

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.

The "key benefits" of each principle and "where the application of each principle would lead to" are discussed in the ISO website along with details on several other aspects of the new revision.

IS09001: 2000 REQUIREMENTS

The IS09001: 2000 consists of four major sections: Management Responsibility; Resource Management; Product Realization; and Measurement, Analysis and Improvement. Together they form a process-based quality management system model or a "process model" which is the basis of the new revision. The process linkages are presented in clauses 4 to 8 in the requirements of the new standards.

The elements in IS09001: 2000 specify requirements for a quality management system for organizations that need to demonstrate its ability to consistently provide products that meet customer and applicable regulatory requirements and aim to enhance customer satisfaction. These standards have been organized in a user-friendly format with terms that are easily recognized by all business sectors. The term "organization" rather than "supplier" refers to the unit to which the standards apply. Also, the term "supplier" has replaced the term "subcontractor."

IMPLEMENTATION ISSUES

The emphasis on process-related structure and its focus on the use of information from the system for continuous improvement requires companies to initiate a thorough review and revision of their quality processes. The transition is probably easier for organizations that already use a process-oriented approach in their current documentation. It is widely recognized that ISO 9000:2000 standards are proving to be beneficial since they force each organization to look at their business from a process perspective.

DISCUSSION

Based on the user survey, the ISO technical committee responsible for revising the 1994 standards listed the seven most demanded improvements. They were the following:

1. Use of simple language and terminology,

2. Facilitate integration into one management system,

3. Address continuous improvement,

4. Use a process model approach to quality management,

5. Improve compatibility with other management system standards,

6. Address customer satisfaction more strongly and,

7. Finally, make the standards more business oriented.

An analysis of the major changes and improvements in the 2000 revision attests to the fact that the revised version addressed all these issues and more. These standards adopts a process model approach with customer requirements as the input and customer satisfaction as the output.

Fundamental principles underlying the Total Quality Management philosophy such as process approach, customer focus, and continuous improvements based on measurable objectives are incorporated into the various elements of the standard. The organization of elements into a process-based quality management system with process linkages established through clauses 4 through 8 made a logical sequencing of its contents. In section 4, the standards expanded the requirements to "monitor, measure, and improve" to all processes on quality management systems. Many of the requirements ensure that the top management is actively involved in quality system management.

These include the requirement that the management to use the information from the quality management system to implement improvements (sections 5.3, 8.4 and 8.5). The responsibility of the management includes clearly understanding their customer's requirements and transforming these requirements into products that ensure customer satisfaction. Under this system, management must communicate the importance of meeting customer requirements, integrate IS09000 into business plans, set measurable objectives and conduct management reviews. Organizations must view work as a process and manage a system of inter-related processes. They must have a planned process for improvement. More accountability is required in the evaluation of training effectiveness in meeting quality objectives.

These standards have explicit requirements for achieving customer satisfaction and continual improvement; a logical structure; an approach based on managing organizational processes; easy to use by service sector organizations and by small businesses; built on eight universal quality management principles; and possibility of going beyond certification to achieve satisfaction not just by customers, but of all interested parties, such as employees, shareholders and society as a whole. The standards incorporate many of these principles, but is still not a comprehensive business performance framework as provided by the Baldrige criteria. Perhaps the standards need to provide more assurance that meeting the requirements will prevent defective products. The registration only examines compliance to a quality management system. The set of good management practices provided by the standards for initiating a quality system, however, can be extremely valuable to organizations starting to develop formal quality management systems.

The latest survey by ISO showed that over 408,000 organizations worldwide have achieved IS09000 certification by the end of the year 2000, an increase of about 65,000 from the previous year. In an earlier survey of companies in U. S. and Canada, conducted jointly by Quality Systems Update and Deloitte and Touche, companies that have achieved registration under the IS09000 standards reported substantial annual savings as a consequence. More than half of the respondents also anticipated recouping the cost of registration in less than 40 months. It also confirmed suspicions that many companies were required to seek registration in the coming years, and that more companies view registration as a critical market tool. It is reasonable to expect that more and more companies will be seeking IS09000 registration in the foreseeable future.

REFERENCES

1. ISO Website (iso.ch)

2. IS09000: 2000 Quality Management Systems, Revision, November 2000.

3. Malcolm Baldrige National Quality Award, 2000 Award Criteria, U.S. Department of Commerce, National Institute of Standards and technology, Gaithersburg, MD 20899.

Author

Dr. C. P. Kartha, University of Michigan-Flint, MI

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