12 Essential Principles of Quality Management

Table of Contents

Quality Management Principles		4
Introduction		4
12 Key Principles of an Effective Quality Program		5
Principle 1: Infuse a Customer Focus at every Level		6
	Key Benefits	6
	Applying the Principle of Customer Focus Typically Leads to	6
Principle 2: Focus on Effective Leadership that is Committed to a Strategic Vision		6
	Key Benefits	6
	Applying the Principle of Leadership Typically Leads to	7
Principle 3: Engage & Empower People (Team Members)		7
	Key benefits	8
	Applying the Principle of Engaging/Empowering People Typically Leads to	8
Principle 4: Implement a Process Approach		8
	Process Definition	9
	Key Benefits	9
	Applying the Principle of Process Approach Typically Leads to	9
Principle 5: Develop a System Approach to Management		9
	Key Benefits	9
	Applying the Principle of System Approach to Management Typically Leads to	10
Principle 6: Institute Continual Improvement		10
	Critical Improvement Efforts	10
	Six Stage Plan for Process Improvement	10
	Creating a Customized Improvement Plan	11
	Key Benefits	11
	Applying the Principle of Continual Improvement Typically Leads to	11
Principle 7: Apply a Factual Approach to Decision Making		12
	Key Benefits	12
	Applying the Principle of Factual Approach to Decision Making Typically Leads to	12
Principle 8: Create Mutually Beneficial Supplier Relationships		12
	Key Benefits	12
	Engaging in Mutually Beneficial Supplier Relationships Typically Leads to	12
Principle 9: Measure Performance, Analyze the Data, and Share Results		13
	Key Benefits	13
	Applying the Principles of Measurements & Analysis Typically Leads to	14
Principle 10: Control & Eliminate Waste		14
	Key Benefits	14
	Applying the Principles of Eliminating Waste Typically Leads to	14
Principle 11: Information Management – Collect, Organize Records, Analyze Data & Share Findings		15
	Key Benefits	15
	Applying the Principles of Information Management Typically Leads to	15
Principle 12: Master Quality Management Tools		16
	Creativity and Innovation Tools	16
	Classic Six Problem Solving Steps	16
Other Useful Tools		18
	What are they?	18
	NOTES	19
Sources		21

Quality Management Principles

Introduction

Why worry about Quality?

Consider the W. Edwards Deming Chain. His methods have consistently proven that implementing a proper Quality Management System will:

• Improve Quality
• Decrease Costs
• Improve Productivity
• Decrease Price
• Increase Market Share
• Sustain the Business’ Longevity
• Provide More Jobs
• Secure a Good Return on Investment

These are indeed worthwhile goals.

Dr. Deming was instrumental in helping companies like Toyota (now the largest car manufacturer in the world) and Sony (the largest consumer electronics company in the world) gain brand dominance in their market and secure sustainable high profits through the implementation of Quality Management systems.

Total Quality Management (Which Toyota calls Kaizen) is a management approach that originated in the 1950s and has steadily become more popular since the early 1980s. Total Quality Management is a description of the culture, attitude and organization of a company that strives to provide customers with products and services that satisfy their needs. The culture requires quality in all aspects of the company’s operations, with processes being done right the first time and defects (Non-compliance to standards/process) and waste eradicated from operations.

Total Quality Management, TQM, is a method by which management and employees can become involved in the continuous improvement of the production of goods and services. It is a combination of quality and management tools aimed at increasing business and reducing losses due to wasteful practices.

Some other companies who have implemented TQM include Ford Motor Company, GM, Phillips Semiconductor, SGL Carbon, Motorola, ExxonMobil and GE.

If you examine the consistently most successful companies of the 21st Century, they are most likely engaged in some form of Quality Management.

This document introduces the twelve quality management principles on which, the Quality Management System standards of the revised ISO 9000 series are based. These principles can be used by management and all team members as a framework to guide their organization towards improved performance.

The following designation of principles is derived from the collective experience and knowledge of the international experts who participate in the ISO Technical Committee, which is responsible for developing and maintaining the ISO 9000 standards.

Quality management principles are defined in ISO 9000 Quality management systems Fundamentals and vocabulary, and in ISO 9004:2008, Quality management systems Guidelines for performance improvements.

This document addresses elements of a classic of Total Qulity Management System and the principles as they appear in ISO 9000, as well as Six Sigma and other prevalent Quality Systems. Also, it expands the discussion to twelve (12) principles to clarify, to small business owners, action requirements and provides examples of the benefits derived from their use and of actions that managers typically take in applying the disciplines to improve their organizations’ performance.

This document further considers other quality management examples such as Florida Power & Light’s Total Quality Management, Dr. W. Edwards Deming’s 14 Points for Management, The Toyota Way / Kaizen, Six Sigma, The Balanced Score and other prevailing Quality Management Systems. It would be appropriate to say that our program is an amalgam of these highly successful systems tailored to our specific requirements and global mission.

12 Essential Principles of an Effective Quality Program

• Principle 1 Customer Relationship Focus Must Be the Prime Factor
• Principle 2 Secure Effective Leadership with a Committed Vision
• Principle 3 Engage People, Share Information Extensively
• Principle 4 Implement a Process approach
• Principle 5 Develop a System Approach to Management
• Principle 6 Institute Continual Improvement
• Principle 7 Apply a Factual Approach to Decision Making
• Principle 8 Seek & Develop Mutually Beneficial Supplier Relationships
• Principle 9 Measure Performance, Analyze the Data, & Share Results
• Principle 10 Control/Eliminate Waste
• Principle 11 Information Management – Collect, Organize Records, & Analyze Data – Share Findings
• Principle 12 Master Quality Management Tools (like Process Definition & Analysis, Flowcharts, Cause-Effect Diagrams, Idea Generation, Problem Solving, Data Collection & Analysis, Bar Graphs, Gantt Charts, etc.)

Principle 1: Infuse a Customer Focus at every Level

Organizations depend on their customers and therefore should understand current and future customer needs, should meet customer requirements and strive to exceed customer expectations. I assert that the single most influential factor that determines sustainable competitive strength and profitability is the company’s relationship with its customers.

The most successful companies of the 21st Century will be companies that figure out how they may become an integral part of their client’s processes that achieve their (client’s) goals. Sales today are All about the Relationship – this requires intense focus on the client’s needs, wants and emotional investments.

Key Benefits:

• Securing increased revenue and market share obtained through flexible and fast responses to market opportunities.
• Increasing effectiveness in the use of the organization’s resources to enhance customer satisfaction.
• Improving customer loyalty leading to repeat business (usually the most cost-effective sales).

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: Focus on Effective Leadership that is Committed to a Strategic Vision

Leaders facilitate unity of purpose and direction of the organization. Leadership, in its best form, establishes the Vision and Values for the team, initiates the effort to establish relevant and effective goals, coordinates the availability of resources, manages the change process, facilitates communication, encourages questions and new ideas, emphasizes the value of teamwork and people empowerment. Leaders should create and maintain the internal environment in which people can become fully involved in achieving the organization’s objectives. Leadership is responsible for creating a Strategic Focus that is guided by the 10 Key Principles of Quality Management.

Key Benefits:

• People will understand and be motivated toward 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:

To be continued…