QUALITY MANAGEMENT SYSTEM

(QMS) & QUALITY AWARD (QA

 INTRODUCTION TO QMS AND QUALITY
AWARD

Quality has become an essential element for organizational competitiveness,

especially for improving customer expectations and organizational performance
(Prybutok and Cutshall 2004; Evans and Lindsay 2009; Yang 2009). Quality
management system (QMS) links all function within an organization, as well as
external parties such as customers and suppliers. The emphasis of QMS helped
to establish several national or regional awards:
• The Deming Prize
• The Malcolm Baldrige National Quality Award (MBNQA)
• Europian Foundation for Quality Management (EFQM)
• Australian Business Excellence Award (ABEA)
• China Quality Award (CQA)
 ISO 9000

ISO 9000 is a family of standards and guidelines related to the quality

management system (QMS). It sets the requirements for the assurance of quality
and for management’s involvement.
ISO 9000 is applicable to any organization, whether in the private or the public
sector, whether large or small, and applies to those components of the
organization that can have an impact on product or service quality.
 THE EIGHT PRINCIPLES: ISO 9000’S
BASIS

1. Understand the customer’s needs, meet the customer’s requirements, and strive to exceed the
customer’s expectations.
2. Establish unity of purpose and organizational direction and provide an environment that promotes
employee involvement and achievement of objectives.
3. Take advantage of fully involved employees, using all their abilities for the benefit of the
organization.
4. Recognize that things accomplished are the results of processes and that processes along with
related activities and resources must be managed.
5. The multiple interrelated processes that contribute to the organization’s effectiveness are a system
and should be managed as a system.
6. Continual improvement should be a permanent objec- tive applied to the organization and to its
people, pro- cesses, systems, and products.
7. Decisions must be based on the analysis of accurate, relevant, and reliable data and information.
8. Both the organization and the supplier benefiting from one another’s resources and knowledge
results in value for all.
 ISO 9000’S OBJECTIVE

• The original aim of ISO 9000 was to ensure that the products or services
provided by registered organizations were consistently fit for their intended
purpose
• Then the current version of ISO 9000 raised the standard’s aim to a new level.
Customer focus and continual improvement, along with the other six quality
management principles that have been incorporated into the standard, are
intended to make registered organizations more competitive
 PLAN–DO–CHECK–ACT: ISO 9000’S
OPERATING PRINCIPLE

1. Plan. Establish objectives and develop the

plans to achieve them.
2. Do. Put the plans into action.
3. Check. Measure the results of the action;
that is, is the planned action working, or
were the objectives met?
4. Act (or Adjust). Learn from the results of
the third (Check) step, make any necessary
changes to the plans, and repeat the cycle.
 BENEFITS OF ISO 9000

• ISO claims that beyond customer satisfaction, cost and risk management
benefits will also accrue to the organization.
• Improved competitiveness
• Prices can be more competitive because waste is minimized as improved
processes become more efficient, benefiting both the organization and its
customers
• Customers have increased confidence in the products and services of ISO
9000-registered organizations because they know that appropriate quality
management processes are employed and that an independent registrar
ensures that this continues to occur
 ISO 9000 AND TQM ARE RELATED BUT NOT
INTERCHANGEABLE

• By definition, ISO 9000 is concerned only with quality management systems

for the design, devel- opment, purchasing, production, installation, and
servicing of products and services.
• On the other hand, total quality management, by defi- nition, encompasses
every aspect of the business or orga- nization, not just the systems used to
design, produce, and deploy its products and services. This includes all support
systems such as human resources, finance, and marketing.
• Total quality management involves every function and level of the organization,
from top to bottom.
 UPDATING ISO 9000

ISO 9000 has been revised three times since its original re- lease.
• ISO 9000: 1987, The three models for quality management systems were:
(1) ISO 9001:1987—Quality Assurance in Design, Development, Production, and
Installation Services;
(2) (2) ISO 9002:1987—Quality Assurance in Production, Installation, and
Servicing (did not cover the development of new products);
(3) (3) Quality Assurance in Final Inspection and Test.
 UPDATING ISO 9000

ISO 9000: 1994. This version continued to require comprehensive evidence of

compliance with properly documented procedures, but it did begin to move
toward process improvement by emphasizing preventive actions rather than just
checking the final product.

ISO 9001: 2000. This version combined ISO 9001, 9002, and 9003 into one
document that is ISO 9001. The distinguishing feature of this version is that it
was brought more closely in line with the basic tenets of quality management.
 UPDATING ISO 9000

ISO 9001: 2008. This version is not substantively different from ISO 9001:2000, but there are several additional requirements that are important:
(1) The quality policy must be a formal statement from upper management that is linked to the organization’s business and management plan
(2) The quality policy must be understood and used by all personnel at all levels
(3) All personnel must have measureable work objectives
(4) The quality system is audited regularly for conformance and effectiveness,
(5) Decisions about the quality system are based on recorded data
(6) Records allow problems to be traced to their source by including where and how raw materials were processed
(7) The organization must have a comprehensive system for communicating with customers about any and all aspects of the relationship
(8) Product development must have planned stages with testing at every stage, and test results must be documented to indicate whether the
product meets all applicable requirements
(9) Organizational performance must be regularly reviewed
(10) The organization must have documented procedures for dealing with nonconformances.
 UPDATING ISO 9000

ISO 9001:2015. As of this writing, the new ISO 9001:2015 standard will be a
major revision that will bring quality more in line with business and the strate- gic
aspects of an organization rather than treating it like a separate entity.
 MALCOLM BALDRIGE NATIONAL QUALITY
AWARD (MBNQA)

• Established by the Departemen of Commerce’s National Institute of Standards and Technology (NIST) and the
American Society for Quality (ASQ) in 1987 to enhance the competititveness of U.S. businesses, such as
manufacturing, service, and small business.
• In addition, MBNQA criteria have been developed for health care and education organizations in 1999 and for
nonprofit/government organizations in 2005.
• The MBNQA criteria have been updated annually based on the dynamic global
environment which compels change in QM.
• The Baldrige criteria for performance excellence consists of seven categories as shown in Table 2: leadership,
strategic planning, customer focus, measurement, analysis, and knowledge management (MAKM), workforce
focus, operations focus, and results.
MALCOLM BALDRIGE NATIONAL QUALITY
AWARD (MBNQA)
MALCOLM BALDRIGE NATIONAL QUALITY
AWARD (MBNQA)
 EFQM

• The EFQM Excellence Model was introduced at the beginning of 1992 as the
framework for assessing applications for The European Quality Award.
• It is a widely used organisational framework in Europe and has become the
basis for a series of national and regional Quality Awards.
• The EFQM model's is used as a management system that encourages the
discipline of organisational self-assessment
 EFQM FRAMEWORK

• Enablers include five criteria (i.e., leadership,

people, strategy, partnership and resources, and
processes, products and services)
• Four criteria are results (i.e., people, customer,
society, and key performance).
• Enabler criteria cover ‘‘what an organization
does,’’ while
• Results criteria cover ‘‘what an organization
achieves.’’
• The results are caused by ‘‘Enablers,’’ and
‘‘Enablers” are improved using feedback from
‘‘Results’’
 DEMING PRIZE

• The Deming Award was established in 1951 by the Japanese Union of

Scientists and Engineers (JUSE) as Japan’s national quality award and is one of
the highest awards for TQM
• The purpose of the Deming Award is to recognize QC excellence in various
industries
• Focuses on effectiveness in planning and implementing quality practices by
organizations, private or public, or subdivisions of large enterprises, and even
overseas companies
• The prize has three principal categories: the Deming Prize for Individual, the
Deming Application Prize, and the Quality Control Award for Operations
Units.
 SNI

• SNI is a standard that stated by the Agency National Standarization and app;ies
in the territory of the Unitary Republic of Indonesia.
• SNI Award is the highest award given by the Government through National
Standardization Body to organizations that are consistent in apply SNI and
have passed the evaluation stage in accordance with the provisions which has
been set.
 CHINA QUALITY AWARD

• Was introduced by the China Association for Quality (CAQ) in 2001.

• The standards of performance excellence award are published based on
components of MBNQA criteria and are formed in seven categories: (1)
leadership; (2) strategy; (3) customer and market; (4) resources; (5) process
management; (6) measurement, analysis, and improvement; and (7) operating
results
• In addition to Baldrige criteria, it includes international best practices, social
factors, and governmental strategic initiatives issued by Shenzhen government
leaders (i.e., General Administration of Quality Supervision, Inspection and
Quarantine of the People’s Republic of China).
 CANADIAN AWARD

• Was founded in 1984

• Designed to support quality improvement innovation for nonprofit
organizations, including government, educa- tion, and health care (Evans and
Lindsay 2009)
• Was developed based on the National Quality Institute’s Framework for
Organizational Excellence that had been used by organizations as a
management model for continuous quality improvement and the achievement
of significant operational results.
 AUSTRALIAN BUSINESS EXCELLENCE AWARD

• The ABEA was developed based on MBNQA in 1988

• recognizes the successful quality program and innovation for companies and
organizations in all industry sectors
 AUSTRALIAN BUSINESS EXCELLENCE AWARD

ABEA has seven categories:

• Leadership
• Customer and market focus
• Strategy and planning process
• People
• Processes management improvement and innovation
• Information and knowledge
• Business results