MSc Project Management

GBEPM 620
Quality Management

Quality Management Systems

and Quality Awards

1
Quality Management Systems

ISO Definition of Quality

2
 Quality is…
❑ a standard which can be accepted by both the supplier
and the customer;
❑ giving complete satisfaction to the customer;
❑ complying consistently with an agreed level of
specification;
❑ providing products and services at an acceptable cost;
❑ providing products and services that have auditable
proof that they are ‘fit for the purpose’;
❑ the totality of features or characteristics of a product
or service that bear on its ability to satisfy a given
need.

Quality is not about…

❑ complying with a specification (as it is possible that

the specification may be wrong!);
❑ being the best (since achieving this ideal may be very
costly and could exceed the price that the customer is
prepared to pay);
❑ producing products and services that are ‘fit for the
purpose’ at the point of delivery – as that ‘purpose’
may be completely different to the customers’ actual
needs!

3
 Some Questions Answered by a Quality Management System

Who is Responsible for Managing Quality in an Organisation?

❑ In the current 2015 edition of ISO 9001, the role of

‘Management Representative’ (i.e. Quality Manager)
has been eliminated as this responsibility has now
become:
A management approach centred on quality
based on the participation of all its members
and aiming at long term success through
customer satisfaction and benefits to all
members of the organisation and society.
❑ Which, in other words, means that everyone in the
organisation is now collectively responsible for the
quality of the organisation, its products and its
services!

4
 What is a Quality Management System?

❑ A set of interrelated or interacting elements to

establish the overall intentions and direction of an
organisation related to quality as formally expressed
by Top Management and to achieve those objectives.
(ISO 9000)
❑ It is the structure, policies, procedures, processes and
resources needed to implement a quality managed
structure of organizational responsibilities, activities,
resources and events that together provide processes
focused on achieving Quality Policy and quality
objectives to meet customer requirements.

Ingredients of a Successful Quality Management System

5
 Why a Quality Management System?
❑ An appropriate quality management system (QMS)
will enable the objectives set out in the quality policy
to be accomplished
❑ The International Organisation for Standardisation
(ISO) 9000:2015 series sets out methods by which a
QMS can be implemented to ensure that the specified
customer requirements are met
❑ A quality system may be defined simply as an
assembly of components which include
leadership/management responsibilities, process, and
resources

Systematic Approach to Process Management

6
 Quality Organisation

To be successful, an organisation (whether large or

small) must:
✓ be able to offer products and services that satisfy
a customer’s expectations;
✓ agree with the relevant standards and
specifications of a contract;
✓ be available at competitive prices;
✓ be able to supply products and services at a cost
that will still bring a profit to that organisation.

Proving the Organisation’s Capability

7
 ISO 9000 Quality Management Systems
❑ ISO 9000:2015 “BS EN ISO 9001:2015 Quality
Management Systems – Requirements” is the current
International Standard
❑ Detailed information on the ISO 9000:2015 family of
standards, may be found on the web sites: www.iso.ch
❑ ISO 9001:2015 employs a process approach, which
incorporates the Plan-Do-Check-Act (PDCA) cycle and
risk-based thinking; it links QMS to product/service and
process quality through a focus on demonstrating
customer satisfaction and continuous improvement
❑ ISO 19011: 'Guidelines for auditing management systems'
provides guidance on the management of an audit
programme, on the planning and conducting of an audit of
a management system, and on the competence and
evaluation of an auditor and an audit

Quality Management Principles and ISO 9000

❑ The ISO 9001:2015 standard is based on the adoption of seven
quality management principles: customer focus, leadership,
engagement of people, process approach, improvement, evidence-
based decision making, and relationship management
❑ Understanding and managing interrelated processes as a system
contributes to an organisation’s effectiveness and efficiency in
achieving its intended results
❑ The Supplier-Input-Process-Output-Customer (SIPOC) methodology
is recommended as the means of understanding the design and
interdependencies of the processes of an organisation
❑ The integration of the PDCA process into the ISO 9001:2015
standard dovetails perfectly with the process based approach in the
standard; PDCA can be applied to all processes and to the QMS as
a whole
❑ Risk-based thinking is essential for establishing and then
maintaining the effectiveness of a QMS; the 2015 version of the
standard requires that organisations plan and implement actions to
address risks and opportunities

8
Schematic Representation of the Elements of a Single Process

Quality Management System Design and ISO 9000

❑ The seven clauses that form ISO 9001:2015 are:
▪ context of the organisation
▪ leadership
▪ planning
▪ support
▪ operation
▪ performance evaluation
▪ improvement
❑ The management system requirements under these
headings are specified and detailed in the standard
❑ A significant change with the process based format of the
2015 standard is the requirement for performance
evaluation, along with a factual approach to decision
making
❑ This embeds the good process guidance mentioned
above as a clear requirement

9
The Quality System & Never-Ending Improvement

10
ISO 9000 Family of Standards

❑ ISO 9001:2015 - sets out the requirements of

a quality management system
❑ ISO 9000:2015 - covers the basic concepts
and language
❑ ISO 9004:2018 - focuses on how to make a
quality management system more efficient and
effective
❑ ISO 19011:2011 - sets out guidance on
internal and external audits of quality
management systems.

ISO 9001:2015
▪ ISO 9001:2015 sets out the criteria for a quality
management system and is the only standard in the
family that can be certified to. It specifies the
requirements for a QMS that organizations can use to
develop their own programs.
▪ This 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.
▪ Using ISO 9001:2015 helps ensure that customers get
consistent, good quality products and services, which
in turn brings many business benefits.

11
Seven Quality Management Principles

1-Customer Focus
“The primary focus of quality management is to
meet customer requirements and to strive to exceed
customer expectations.”
✓ Understand the needs of existing and future
customers
✓ Align organizational objectives with customer needs
and expectations
✓ Meet customer requirements
✓ Measure customer satisfaction
✓ Manage customer relationships
✓ Aim to exceed customer expectations
✓ Learn more about the customer experience and
customer satisfaction

12
2-Leadership
“Leaders at all levels establish unity of purpose and
direction and create conditions in which people are
engaged in achieving the quality objectives of the
organization.”

✓ Establish a vision and direction for the organization

✓ Set challenging goals
✓ Model organizational values
✓ Establish trust
✓ Equip and empower employees
✓ Recognize employee contributions
✓ Learn more about leadership

3-Engagement of People
“It is essential for the organization that all people
are competent, empowered and engaged in
delivering value. Competent, empowered and
engaged people throughout the organization enhance
its capability to create value.”

✓ Ensure that people’s abilities are used and valued

✓ Make people accountable
✓ Enable participation in continual improvement
✓ Evaluate individual performance
✓ Enable learning and knowledge sharing
✓ Enable open discussion of problems and constraints
✓ Learn more about employee involvement

13
4-Process Approach
“Consistent and predictable results are achieved
more effectively and efficiently when activities are
understood and managed as interrelated processes
that function as a coherent system.”

✓ Manage activities as processes

✓ Measure the capability of activities
✓ Identify linkages between activities
✓ Prioritize improvement opportunities
✓ Deploy resources effectively
✓ Learn more about a process view of work and use
process analysis tools

5-Improvement

“Successful organizations have an ongoing focus on

improvement.”

✓ Improve organizational performance and

capabilities
✓ Align improvement activities
✓ Empower people to make improvements
✓ Measure improvement consistently
✓ Celebrate improvements
✓ Learn more about approaches to continual
improvement

14
6-Evidence-Based Decision Making

“Decisions based on the analysis and evaluation of

data and information are more likely to produce
desired results.”

✓ Ensure the accessibility of accurate and reliable

data
✓ Use appropriate methods to analyze data
✓ Make decisions based on analysis
✓ Balance data analysis with practical experience
✓ Use tools for decision making

7-Relationship Management
“For sustained success, organizations manage their
relationships with interested parties, such as
suppliers.”
✓ Identify and select suppliers to manage costs,
optimize resources, and create value
✓ Establish relationships considering both the short and
long term
✓ Share expertise, resources, information, and plans
with partners
✓ Collaborate on improvement and development
activities
✓ Recognize supplier successes
✓ Learn more about supplier quality and how to manage
the supply chain

15
ISO 9001:2015 – QMS Structure
1. Scope
2. Normative Reference
3. Terms and Definitions
4. Context of Organisation
5. Leadership
6. Planning
7. Support
8. Operation
9. Performance Evaluation
10.Improvement

QMS Structure Outlined (1/2)

4. Context of Organization – addresses needs and
expectations of interested parties, scope of QMS
5. Leadership – addresses management commitment,
policy, roles, responsibility and authority
6. Planning – includes risks, opportunities, objectives
and plans to achieve them, the planning of changes
7. Support – includes resources, competence,
awareness, communication, documented information

16
QMS Structure Outlined (2/2)
8. Operation – includes planning and control,
determine market needs, interaction w/customers,
planning process, control of external provisions of
goods/services, production of goods, provision of
services, release of goods/services, non-conforming
goods/services
9. Performance Evaluation – includes monitoring,
measurement, analysis and evaluation, internal audit,
management review
10. Improvement – addresses non-conformity and
corrective action, improvement

Quality Management System Costs

❑ The main requirement of a Quality Management

System is to:
possess a system by which an organisation can
aim to reduce and eventually eliminate
nonconformance to specifications, standards
and customer expectations in the most cost
effective and efficient manner
❑ How much an organisation benefits from its QMS is
directly related to the money it invests in quality.

17
 Quality Management System Costs

Quality Management System Benefits

The main benefits of Quality Management are:

✓ an increased capability to provide products and
services that consistently conform to agreed
specifications;
✓ a reduction in administration and production costs
because of less wastage and fewer rejects;
✓ a greater involvement and motivation within an
organisation’s workforce;
✓ improved customer relationships through fewer
complaints, thus increasing sales potential.

18
 Quality Awards

Quality Awards
If your organization is seeking Quality
Leadership, then quality awards can play a
significant part in helping you along the
journey.

Quality awards provide an excellent source

for monitoring progress and identifying
opportunities for improvement.

19
Quality Awards
▪ From TQM to Business Excellence
✓ An overall way of working that
balances stakeholder interests and
increases the likelihood of sustainable
competitive advantage
✓ Long-term organizational success
through operational, customer-related,
financial and marketplace performance
excellence.

Organisational Self-Assessment

• Quality Awards and/or Excellence Model

principal use
• The comprehensive, systematic, and regular
review of an organization’s activities and
results against a specified model
• Identification of strengths, weaknesses and
opportunities for improvement

20
Business Excellence Principles
• Leadership and Constancy of Purpose
• Customer Focus
• Results Orientation
• Management by Processes and Facts
• People Development and Involvement
• Continuous Learning, Innovation and
Improvement
• Partnership Development
• Public Responsibility

Major Quality Awards

▪ The Deming Prize (Japan - 1951)

▪ Malcolm Baldrige National Quality Award
(US - 1987)
▪ European Quality Award (European Union
- 1991)

21
 Quality Award Models
✓ Quality frameworks may be used as the basis for awards,
for a form of “self-assessment” or as a description of what
should be in place
✓ The Deming Prize in Japan was the first formal quality
award framework established by JUSE in 1950;
examination viewpoints include: top management
leadership and strategies, TQM frameworks, concepts
and values, QA and management systems, human
resources, utilization of information, scientific methods,
organizational powers, realization of corporate objectives
✓ The USA Baldrige Award aims to promote performance
excellence and improvement in competitiveness through a
framework of several categories which are used to assess
organizations: leadership, strategic planning, customer
and market focus, information and analysis, human
resource focus, process management, business results

Baldrige Criteria for Performance Excellence Framework

22
 Quality Award Models continued

✓ The European (EFQM) Excellence Model operates

through a simple framework of performance improvement
through involvement of people in improving processes
✓ The full Excellence Model is a non-prescriptive framework
for achieving good results: customers, people, society,
key performance – through the enablers: leadership,
strategy, people, processes, products, systems,
partnerships and resources
✓ The framework includes feedback loops of learning,
innovation and creativity and proposed weightings for
assessment
✓ A revised model was published by EFQM in 2019

23
The Simple Model for improved performance

P
R
O
C
PEOPLE E PERFORMANCE
S
S
E
S

Achieve better performance through the involvement

of all employees (people) in the continuous
improvement of their processes

The EFQM Excellence Model

24
Revised EFQM Model 2019

25