Quality Management Principles

The eight quality management principles on which the quality management system standards of the revised ISO 9000:2000 series are based. These principles can be used by senior management as a framework to guide their organizations towards improved performance. The principles are derived from the collective experience and knowledge of the international experts who participate in ISO Technical Committee ISO/TC 176, Quality management and quality assurance, which is responsible for developing and maintaining the ISO 9000 standards.

• Principle 1 Customer focus
• Principle 2 Leadership
• Principle 3 Involvement of people
• Principle 4 Process approach
• Principle 5 System approach to management
• Principle 6 Continual improvement
• Principle 7 Factual approach to decision making
• Principle 8 Mutually beneficial supplier relationships
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.
Key benefits:
• Increased revenue and market share obtained through flexible and fast responses to market opportunities.
• Increased effectiveness in the use of the organization's resources to enhance customer satisfaction.
• Improved customer loyalty leading to repeat business.
Applying the principle of customer focus typically leads to:
• Researching and understanding customer needs and expectations.
• Ensuring that the objectives of the organization are linked to customer needs and expectations.
• Communicating customer needs and expectations throughout the organization.
• Measuring customer satisfaction and acting on the results.
• Systematically managing customer relationships.
• Ensuring a balanced approach between satisfying customers and other interested parties (such as owners, employees, suppliers, financiers, local communities and society as a whole).
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.
Key benefits:
• People will understand and be motivated towards the organization's goals and objectives.
• Activities are evaluated, aligned and implemented in a unified way.
• Miscommunication between levels of an organization will be minimized.
Applying the principle of leadership typically leads to:
• Considering the needs of all interested parties including customers, owners, employees, suppliers, financiers, local communities and society as a whole.
• Establishing a clear vision of the organization's future.
• Setting challenging goals and targets.
• Creating and sustaining shared values, fairness and ethical role models at all levels of the organization.
• Establishing trust and eliminating fear.
• Providing people with the required resources, training and freedom to act with responsibility and accountability.
• Inspiring, encouraging and recognizing people's contributions.
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.
Key benefits:
• Motivated, committed and involved people within the organization.
• Innovation and creativity in furthering the organization's objectives.
• People being accountable for their own performance.
• People eager to participate in and contribute to continual improvement.
Applying the principle of involvement of people typically leads to:
• People understanding the importance of their contribution and role in the organization.
• People identifying constraints to their performance.
• People accepting ownership of problems and their responsibility for solving them.
• People evaluating their performance against their personal goals and objectives.
• People actively seeking opportunities to enhance their competence, knowledge and experience.
• People freely sharing knowledge and experience.
• People openly discussing problems and issues.
Principle 4 Process approach
A desired result is achieved more efficiently when activities and related resources are managed as a process.
Key benefits:
• Lower costs and shorter cycle times through effective use of resources.
• Improved, consistent and predictable results.
• Focused and prioritized improvement opportunities.
Applying the principle of process approach typically leads to:
• Systematically defining the activities necessary to obtain a desired result.
• Establishing clear responsibility and accountability for managing key activities.
• Analysing and measuring of the capability of key activities.
• Identifying the interfaces of key activities within and between the functions of the organization.
• Focusing on the factors such as resources, methods, and materials that will improve key activities of the organization.
• Evaluating risks, consequences and impacts of activities on customers, suppliers and other interested parties.
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.
Key benefits:
• Integration and alignment of the processes that will best achieve the desired results.
• Ability to focus effort on the key processes.
• Providing confidence to interested parties as to the consistency, effectiveness and efficiency of the organization.
Applying the principle of system approach to management typically leads to:
• Structuring a system to achieve the organization's objectives in the most effective and efficient way.
• Understanding the interdependencies between the processes of the system.
• Structured approaches that harmonize and integrate processes.
• Providing a better understanding of the roles and responsibilities necessary for achieving common objectives and thereby reducing cross-functional barriers.
• Understanding organizational capabilities and establishing resource constraints prior to action.
• Targeting and defining how specific activities within a system should operate.
• Continually improving the system through measurement and evaluation.
Principle 6 Continual improvement
Continual improvement of the organization's overall performance should be a permanent objective of the organization.
Key benefits:
• Performance advantage through improved organizational capabilities.
• Alignment of improvement activities at all levels to an organization's strategic intent.
• Flexibility to react quickly to opportunities.
Applying the principle of continual improvement typically leads to:
• Employing a consistent organization-wide approach to continual improvement of the organization's performance.
• Providing people with training in the methods and tools of continual improvement.
• Making continual improvement of products, processes and systems an objective for every individual in the organization.
• Establishing goals to guide, and measures to track, continual improvement.
• Recognizing and acknowledging improvements.
Principle 7 Factual approach to decision making
Effective decisions are based on the analysis of data and information
Key benefits:
• Informed decisions.
• An increased ability to demonstrate the effectiveness of past decisions through reference to factual records.
• Increased ability to review, challenge and change opinions and decisions.
Applying the principle of factual approach to decision making typically leads to:
• Ensuring that data and information are sufficiently accurate and reliable.
• Making data accessible to those who need it.
• Analysing data and information using valid methods.
• Making decisions and taking action based on factual analysis, balanced with experience and intuition.
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
Key benefits:
• Increased ability to create value for both parties.
• Flexibility and speed of joint responses to changing market or customer needs and expectations.
• Optimization of costs and resources.

Seven Types of Process Waste

Studies show that process waste is typically 20 to 30% in manufacturing and 40 to 50% in service organizations. This is lost revenue to your business. Take a close look at these and compare it against your process, which of the following wastes does your company has/have?

Overproduction. Overproduction occurs when operations continue after they should have stopped. The results of overproduction are the products being produced in excess of what’s required, products being made too early, and excess inventory carrying costs.

Waiting. Also known as queuing, waiting refers to the periods of inactivity in a downstream process that results when an upstream activity does not deliver on time.
Idle downstream resources are then often used in activities that either don’t add value or result in overproduction.

Motion. This term refers to the extra steps taken by employees and equipment to accommodate inefficient process layout, defects, reprocessing, overproduction or excess inventory. Motion takes time and adds no value to the product or service.

Defects. These are products or services that do not conform to the specification or Customer’s expectation, thus causing Customer dissatisfaction. The results of defects are reduced profits; rework; Employee frustration, aside from customer dissatisfaction.

Transport. This is unnecessary motion or movement of materials, such as work-in-process (WIP) being transported from one operation to another. Transport should be minimized because it adds time to the process during which no value-added activity is being performed and cost for handling damage could be incurred.

Extra Processing. This term refers to extra operations, such as rework, reprocessing, handling or storage that occurs because of defects, overproduction or excess inventory.

Inventory. This refers to inventory that is not directly required to fulfill current Customer orders. Inventory includes raw materials, work-in-process and finished goods. The results of inventory are: All inventory requires additional handling and space; reduced cash flow.

Building a Problem-Solving Atmosphere

• Encourage team members to air their concerns. They may see a problem you do not. They may have solutions you have not thought of.


• Raise the issue of possible problems during regular meetings.


• Explain to team members how important it is to bring any problems or concerns forward and encourage them to offer solutions as well.

Often managers are known for not wanting to hear about problems. Team members may be reluctant to share their concerns. Evaluate yourself as a manager and see if you have this tendency. If so, you should address it immediately.

Problem-Solving Structure

• Define a structured step-by-step method for solving problems. The method should be clear to all team members.
  When a problem or non-conformance is suspected or arises, you will already have the process in place for dealing with it.


• Root cause analysis of the problem is the first step in problem-solving. Not only does it expose the cause of the problem, but it may reveal other problems that were not exposed or potential problem that may occur.


• Once you know the root cause of a problem you should discuss the impact and explore ALL options and examine ALL alternatives. First option may not always be the best.
  Therefore, brainstorming sessions are a good method to find alternative answers to a problem.


• Select an appropriate approach to solve the problem and examine the impact the solution will have.
  Plan and execute the solution. Verify the results of the solution actually solve the problem and does not create additional problems or issues.


• If the solution involves changes to the project or process, update the plan and notify any relevant stakeholders.

The last step should be to deal with the root cause of the problem. If it is a team member, coach them or examine his/her role in the team. If a process is flawed, implement a process improvement plan.
Remember that the goal is not to place blame. The goal is to improve your problem-solving skills and those of your team.
Using structured problem-solving techniques and developing an open approach to problems with team members will help expose them early. Not only will this help keep the project on track, but it will help you deliver a project on time, on budget and problem free. Music to management’s ears.

Source:
http://itmanagersinbox.com/173/project-managementproblem-
solving-skills/

Improving Operational Performance in Times of Recession

The current economic environment provides the best opportunity for your business to improve its operational processes.
Below are some practical short term recommendations to improve your business with a high return.

Connect with the numbers. Understand the breath and depth of your company’s profit and loss gaps. Get the numbers for your entire company and focus on each functional area. Shift your focus from projects to metrics that determine the cost of poor quality (COPQ). Identify systems and processes that would have an immediate revenue impact or that could minimize cost of poor quality.
Get Back to the Basics. Quality improvements and
cost reduction is all about methods, models, monitoring and measurement. Use
the right combination of these at the right times to track progress and for better decision-making.
Stay Progressive. No one can avoid these economic times. Focusing on improving processes can and will reduce the costs of doing business. This will allow management to position their company for long term success.
Improve Process Controls. Your products and their complexity should help define the level of detail that is necessary. Define and reduce the variability of your processes is to view and document your processes.
Focus on Your Customers. Make sure that your cost cutting measures does not have a negative impact on your products and services. Gather inputs from your customer so that you can still address their needs, while you are addressing the finances of the business. Remember, your customers are also feeling the pain of this economy. Supplier and customer relationships are so much more dependent in these times and you have to make the effort to show real value.
Pitch New Opportunities. Consider outsourcing or off-shoring that will yield to immediate cost savings within your company and in the succeeding six months. Organizations now are cutting costs by outsourcing everything from payroll, human resources, manufacturing and maintenance. Now is the time to join and leverage
your sources and abilities with industry organizations, local chambers of commerce, and what makes good business sense within your industry.

Source:
www.sustainingedge.com

Quality Public Service - ISO 9001 in Local Government

Certification for ISO Standards, particularly ISO 9001, started mainly in large manufacturing companies. As the large companies reaps the benefits of implementing an International Standard, as well as with the growing demand of customer for quality products and services, smaller companies soon followed. Now, even service industries are gearing towards ISO standards implementation and certification.

Local government, though not really a business or commercial institution, is not exempted to this. Local government also has its own costumers who demands quality products and services, internal customers and external customers, the constituents of a particular local government unit.

Local governments are responsible for the management of their established institutions, centers, counties or cities, for the health and safety of their constituents, and for the protection of the environment in which they live. In addition, they face strong pressure to meet regulations from federal, state and local agencies.

In a globalized world, where investment decisions are dependent on how well cities function, good governance and improvement in the quality of urban public goods and services, are taking the front seat, and is gaining more importance. Characteristics of good governance include sustained poverty alleviation, transparency, accountability, efficiency and responsiveness to the needs and concerns of citizens.

The role of ISO 9000 is to provide framework and practical guidelines for the implementation of a widely accepted quality management model, and can serve as the first step towards Total Quality Management. The PDCA (Plan Do Check Act) Model is also applied. It is important for a Local Government to define the processes or systems that they need to provide quality services to their citizens. Example of processes in local government include strategic planning, allocation of resources to provide service, maintaining work environment in good condition, monitoring and assessment of service provision, addressing emergency preparedness and response to crises, determining and assessing performance and competence of personnel providing services, and transparent internal and external communication processes; include citizen involvement that promote communication/dialogue with internal and external parties regarding government issues aspects and performance.

For each process, we should be able to identify:
Who is the customer? Who receives the outputs of the process? It may be an internal “customer”, in a different area/section but the same local government. Or an external “customer,” such as citizen receiving the service.
What are the main inputs to the process? Information, Local or national or regional government policies, legal requirements, machine, material, energy, human and financial resources
The desired outputs? Define the characteristics of the service to be provided.

Although developed for the business and private sector, these guidelines may also be applied to government agencies, offices, bureaus and organizations. By implementing a quality management system, a local government unit or office can direct and control its activities, in order to satisfy the needs and expectations of the local community. Through Planning, Operational controls, Resources Management and Documentation, Quality Objectives are achieved and continual improvement of the products and services that are being provided is attained.

Though the concept of applying quality standards to government functions is relatively new, implementation of a quality management system based on ISO 9000 standard has been applied in a few countries of the region; some countries have adopted ISO 9001 as their national standard.

Whatever the driving forces, be it greater focus on public satisfaction, or the need to change outmoded attitudes to public service, the increasing willingness to install modern quality and environmental management systems for local governments is a very positive steps towards higher customer satisfaction and, hopefully translates to economic recovery and further growth.

JOB DESCRIPTION: To do or not to do?

A job description is a written statement which describes a job or a position, its essential and nonessential functions, job qualifications, and other information on the job. It primarily describes duties, skills, responsibilities of the job, as well as the education and experience required to perform the job; may also indicate environmental and working conditions specific to the job

A job description may also include information on tools and equipment used and relationships with other jobs.

Many people may hold the same job and, therefore, use the same job description. But it is important to remember that a job description describes the job, not the person, or persons, who hold that job.

Some of the issues that should be taken into consideration when writing a job description:

• Don’t exaggerate or downplay the importance of the job. Each job has its own weight and importance in a company. Don’t write something on the job description that would make it more or less important that it is supposed to be. If applicable, indicate decision-making aspects of the job.
• Create a measure or indicator that would serve as a gauge of a successful job performance or lack thereof.
• Either fails to focus on the job incumbent’s actual behavior or it defines required behavior in ambiguous terms.
• Indicate worker requirements or characteristics that are needed for the job so that the applicant or position holder will know what area to develop in order for them to succeed in that job. Focus on and define behavior needed for the position/job.
• A job description must contain all basic information that will answer some of the basic questions that a person coming into the job might have.
  

A job or position description contains some basic elements: (a) job or position identification, (b) job summary or purpose, which is a brief, narrative picture of the job that highlights its general characteristics, (c) essential functions and additional responsibilities, (d) accountabilities, (e) job specifications/requirements

Basic Rules in Writing JD: brevity…accuracy…objectivity…

• Start the job summary with an action word (verb). Use active verb in the third person.

Example: Performs preliminary design
Conducts training on operation and maintenance…
Recommends improvements on…

• Explain the job’s requirements; in other words, tell what is done. If possible include all essential function which indicates the following:

- Regular day-to-day functions.
- Duties that occur at irregular intervals but that are of a recurring and essential nature
- Quantity and quality of supervision received.
- Quantity and quality of supervision exercised.
- Amount of human interaction required (in teaching, counseling, coaching, training, etc.)
- Extent of contacts made both inside and outside organization.
- Responsibility for maintaining specific records.
- Responsibility for organization of funds
- Degree of accountability for human and material resources.
- Office machines or equipment that must be operated.
- Other unusual demands.

Use technical jargon only to add significance, example: Conducts organoleptic tests or experimental beverages and dairy products and trains the panel of tasters. (Tests involving the various senses).

• If necessary, explain the what’s, why’s or how’s of the job, in other words, its purpose. If it is necessary or helpful to do so, use an example.

Examples: Conducts special studies such as stress cracking of plastics, possible treatments for mineral water prior to bottling and corrosion tests on crowns.
Plans scheduling of deliveries (what) taking into consideration the size of the warehouse, frequency of shipment, depletion rate and stock positions (how) to ensure continuous stock position (why)

• If possible, cluster duties. Clustering involves describing a job description into main activities with its corresponding sub-activities in which the sub-activities serve as detailed explanation for each main activity.

Example:
Prepares the monthly cost report for the departments major projects for submission to various project proponents (main activity or duty).

Sub-activities:
- analyzes, classifies and codes various transactions into structure, budget areas and cost items.
- verifies and checks the validity and propriety of all expenditures chargeable to major projects.
- process all projects store and accounting documents for submission to Computer Center.


Guidelines in the presentation of information in a job description

• Criticality or importance. Example: from operations activities to consultancy activities
• Amount of time spent on the cluster of activities. Example: from activities done daily to activities done monthly or annually
• Sequence in which activities are carried out. Example: from planning activities to implementation and monitoring activities
  

Organization of information may be done using the following approach:
1. The “sequence of operations” approach.
2. The “major duty” approach.
3. The “relative importance” approach.