CHAPTER 3

LESSON 2: QUALITY MANAGEMENT SYSTEM

 QUALITY MANAGEMENT SYSTEM

 Defined as a formalized system that documents processes, procedures, and

responsibilities for achieving quality policies and objectives.
 Play an important role in the continuing improvement of organizations.
 A collection of business processes focused on consistently meeting customer
requirements and enhancing their satisfaction.
 PURPOSE OF QUALITY MANAGEMENT SYSTEM

 The purpose of a quality management system is to ensure every time a process

is performed, the same information, methods, skills and controls are used and
applies in a consistent manner. If there are process issues or opportunities, this
is then fed into the quality management system to ensure continuous
improvement.
 Enable an organization to identify, measure, control and improve the various
core processes that will ultimately lead to improved performance.
 To make better products and to ensure customer satisfaction.
SEVEN PRINCIPLES OF A QUALITY
MANAGEMENT SYSTEM
1.Customer Focus
 First and foremost, the organization must have
a clear understanding of who is its direct and
indirect customers. Customer focused means
putting your energy into satisfying customers
and understanding that profitability comes from
satisfying customers. There should be researching, establishing and understanding
current and future customer needs and expectations. The organization should ensure
that the objectives of the organization are linked to customer needs and expectations.
The top management should communicate customer needs and expectations
throughout the organization, there should be measuring customer satisfaction and
acting on the results. The organization should ensure a balanced approach between
satisfying customers and other interested parties.
2. Leadership
 Leadership is providing role model
behaviors consistent with the values of
the organization. Behavior that will
deliver the organizations objectives.
Internal environment includes the
culture and climate, management style,
shared, trust, motivation, and support. The leadership should consider the needs of all
interested parties including customers, owners, employees, suppliers, financier, local
communities and society as a whole. The leadership should establish a clear vision of the
organization’s future. The leadership should set challenging goals and targets. Should
create and sustain shared values, fairness and ethical role models at all levels of the
organization, establish trust and eliminate fear, provide people with the required resources
training and freedom to act with responsibility and accountability. And also, it must inspire,
encourage, and recognize people contributions.
3. Engagement of People
 Engaging people means employees are committed to their organization’s goals and
values, motivated to contribute to organizational success, and are able at the same time
to enhance their own sense of well-being. An engaged employee experiences a blend of
job satisfaction, organizational commitment, job involvement and feelings of
empowerment. It means that all the employees are competent, empowered and they are
delivering value. An engaged employee will have a better perception of job importance,
better clarity of job expectation. There will be more improvement opportunities. There will
be regular feedback and dialog with supervisors. The quality of working relationships of
an engaged employee with peers, superiors, and subordinates is much improves. There is
effective employee communication.
4. Process Approach
 Processes are dynamic-they cause things to happen. Processes within an organization
should be structures in order to achieve a certain objective in the most efficient and
effective manner. It helps us in systematically defining the activities necessary to
achieve/obtain the desired results. It helps us in establishing clear responsibility and
accountability for managing key activities, in analyzing and measuring the capabilities
of key activities, in identifying the interfaces of key activities within and between the
functions of the organization. Also helps us in evaluating risks, consequences, and
impacts of activities on customers, suppliers, and other interested parties.
5. Improvement
 Improvement is an improvement in organizational efficiency and effectiveness. The
organization should employ a consistent organization-wide approach to improvement
of the organizations’ tools of improvement. The organization should provide people
with training in the methods and tools of improvement. They should make
improvement of products, processes, and the system an objective for every individual
in the organization. The organization should establish the goals to guide and lead.
6. Evidence-based Decision Making
 Evidence is information that shows or proves that something exists or is true.
Evidence can be collected by performing observations, measurements, tests, or by
using any other suitable methods. Any decision making should away be based on
evidence. The organization should ensure that data/information is sufficiently accurate
and reliable. The organization should make data accessible to those who need them.
The organization should analyze data using appropriate tools. And should make a
decision and take actions based on analysis of data, balanced with experience and
intuition.
7.Relationship Management
 An interested part is a person or a group that has a stake in the success or
performance of an organization. Interested parties may be directly affected by the
organization or actively concerned about its performance. They can come from inside
or outside the organization. Examples of interested parties include customers,
suppliers, owners, partners, employees, unions, bankers, or members of the general
public and also referred as stakeholders. Relation management with interested parties
meaning sharing knowledge, vision, values, understanding, and suppliers are not
treated as adversaries. The organization establishes relationships that balance short-
term gains with long term considerations, clear and open communication with the
stakeholders. There is sharing of information and future plans, establishes joint
development and improvement activities.
 THE CONTINUOUS IMPROVEMENT
CONCEPT
The idea behind continuous improvement is very simple. People improving the work that they do,
getting better and better, day by day. However, in practice, it’s not easy as it sounds. It seems like a
simple thing to achieve, leaders and teams, who are not familiar with process improvement techniques
are having a hard time sustaining it.
One of the most fundamental elements of total quality is continual improvement. The concept applies
to processes and the people who operate them as well as to the products resulting from the
processes. A fundamental total quality philosophy is that all three— processes, people, and products
—must be continually improved.
We seem to have lost out ability to make improvements.
To implement this mindset, you need to have a clear understanding of what exactly is continuous
improvement, what principles you need to follow, and check some of the best practices.
What is Continuous Improvement?
 Continuous improvement, or Kaizen, is a method for identifying opportunities for streamlining work
and reducing waste. The practice was formalized by the popularity of Lean / Agile / Kaizen in
manufacturing and business, and it is now being used by thousands of companies all over the world
to identify savings opportunities. Many of these ideologies can be combined for excellent results.
 Continuous improvement is, as the name suggests, a practice of constantly re-examining and
improving processes.
 By definition, Continuous process improvement (CPI) is the act of implementing improvements to a
product, service or process. These changes can either be incremental (over time) or breakthrough
(all at once).
 Continuous improvement is a method to make sure that your processes, methods, and practices
are as efficient, accurate, and effective as possible. This is done by periodically examining and
improving your processes to smash bottlenecks, use the best software, and take advantage of
the most efficient methods.
 The Continuous Improvement Approach
Figure 2-1 shows a strategy we prefer and have used successfully in a number of organizations.

•Defining Continuous Improvement Objectives

•Converting Objectives into Actions
•People Make It Happen
•Process Definition
•Variability Reduction Equals Quality Growth
•Implementing Change: Managing the Risk
MANAGEMENT’S ROLE IN CONTINUAL IMPROVEMENT

Management can play the necessary leadership role— and that essentially is its role—in continual
improvement by doing the following:
 Establishing an organization-wide quality council and serving on it.
 Working with the quality council to establish specific quality improvement goals with timetables and target
dates.
 Providing the necessary moral and physical support. Moral support manifests itself as commitment.
Physical support comes in the form of the resources needed to accomplish the quality improvement
objectives.
 Scheduling periodic progress reviews and giving recognition where it is deserved.
 Building continual quality improvement into the regular reward system, including promotions and pay
increases.