8 qmp

©Robere & Associates (Thailand) Ltd. 2000 QI-QMP-E-S Rev 1 1
Eight Quality ManagementEight Quality Management
PrinciplesPrinciples
Beyond ISO9001:2000Beyond ISO9001:2000

©Robere & Associates (Thailand) Ltd. 2000 QI-QMP-E-S Rev 1 2
8:30 – 9:008:30 – 9:00 RegistrationRegistration
9:00 – 9:309:00 – 9:30 Introduction of delegates of QMPIntroduction of delegates of QMP
9:30 – 10:009:30 – 10:00 Principle 1Principle 1 —— Customer-Focused OrganizationCustomer-Focused Organization
10:00 – 10:3010:00 – 10:30 Principle 2 — LeadershipPrinciple 2 — Leadership
10:30 – 10:4510:30 – 10:45 BREAKBREAK
10:45 – 11:1510:45 – 11:15 Principle 3 —Principle 3 — Involvement of PeopleInvolvement of People
11:15 – 11:4511:15 – 11:45 Principle 4 — Process ApproachPrinciple 4 — Process Approach
11:45 – 12:0011:45 – 12:00 Summary Principles 1-4Summary Principles 1-4
12:00 – 13:0012:00 – 13:00 LunchLunch
13:00 - 13:3013:00 - 13:30 Team ExerciseTeam Exercise
13:30 – 14:0013:30 – 14:00 Principle 5Principle 5 —— System Approach to ManagementSystem Approach to Management
14:00 – 14:3014:00 – 14:30 Principle 6 —Principle 6 — Continual ImprovementContinual Improvement
14:30 – 15:0014:30 – 15:00 Principle 7 — Factual approach to decision makingPrinciple 7 — Factual approach to decision making
15:00 – 15:3015:00 – 15:30 Principle 8Principle 8 —— Mutually beneficial supplier relationshipsMutually beneficial supplier relationships
15:30 – 15:4515:30 – 15:45 BREAKBREAK
15:45 – 16:0015:45 – 16:00 Review Principles 5-8Review Principles 5-8
16:30 – 17:0016:30 – 17:00 FeedbackFeedback
17:00 – 17:3017:00 – 17:30 QuizQuiz
Today’s AgendaToday’s Agenda

3©Robere & Associates (Thailand) Ltd. 2000 QI-QMP-E-S Rev 1
IntroductionIntroduction
 QMP are not newQMP are not new
 Dr. Deming was promoting his “14 Obligations ofDr. Deming was promoting his “14 Obligations of
Management” many years agoManagement” many years ago
 TC176 recognized that more management wasTC176 recognized that more management was
neededneeded
 Other standards (QS9000) used more managementOther standards (QS9000) used more management
and customer satisfaction.and customer satisfaction.
 The “new” ISO9000 standard is now aThe “new” ISO9000 standard is now a
“management” system not just a QA system“management” system not just a QA system

TEAM EXERCISE - 15 Min.TEAM EXERCISE - 15 Min.
Define the following:Define the following:
 Customer-FocusedCustomer-Focused
 LeadershipLeadership
 Involvement of PeopleInvolvement of People
 Process ApproachProcess Approach
 Systems ApproachSystems Approach
 Continual ImprovementContinual Improvement
 Factual Approach to Decision MakingFactual Approach to Decision Making
 Mutually Beneficial Supplier RelationshipMutually Beneficial Supplier Relationship

•EncourageEncourage the organization tothe organization to
analyze customer requirements.analyze customer requirements.
•DefineDefine the process that providethe process that provide
the product that is expected from tthe product that is expected from t
he customer.he customer.
•Provide frameworkProvide framework forfor
continuous improvement to satisfycontinuous improvement to satisfy
the customer.the customer.
•Reduce the riskReduce the risk of failing toof failing to
satisfy the customer.satisfy the customer.
Basic Foundation ofBasic Foundation of
Quality ManagementQuality Management
SystemsSystems

Quality ManagementQuality Management
Principles?Principles?
 What are they?What are they?
 What is the relationship to ISO9001:2000?What is the relationship to ISO9001:2000?
 What do we have to do?What do we have to do?
 What are the benefits?What are the benefits?

•A fundamentalA fundamental rulerule for leading and operatingfor leading and operating
an organization.an organization.
•Aim atAim at continually improvingcontinually improving performance overperformance over
the long term period.the long term period.
•Focus onFocus on customerscustomers while addressing thewhile addressing the
needs of all other stakeholders.needs of all other stakeholders.
Quality Management PrinciplesQuality Management Principles

Quality Management PrinciplesQuality Management Principles
 Become increasingly important to theBecome increasingly important to the
leadership and management of allleadership and management of all
organizations.organizations.
 Apply universally to all user groupsApply universally to all user groups
 Focus on the needs of executiveFocus on the needs of executive
managementmanagement

1.1. Customer-Focused Organization.Customer-Focused Organization.
2.2. Leadership.Leadership.
3.3. Involvement of People.Involvement of People.
4.4. Process Approach.Process Approach.
5.5. System Approach to Management.System Approach to Management.
6.6. Continual Improvement.Continual Improvement.
7.7. Factual approach to decision making.Factual approach to decision making.
8.8. Mutually beneficial supplier relationships.Mutually beneficial supplier relationships.
EightEight Quality Management PrinciplesQuality Management Principles

•policy and strategy.policy and strategy.
• goal and target setting.goal and target setting.
• operational management.operational management.
• human resourceshuman resources
management.management.
Uses of this principle:Uses of this principle:

Principle 1 - Customer-FocusedPrinciple 1 - Customer-Focused
OrganisationOrganisation
"Organizations depend on their customers"Organizations depend on their customers
andand therefore shouldtherefore should understand currentunderstand current
and futureand future customer needs, meet customercustomer needs, meet customer
requirements andrequirements and strive to exceedstrive to exceed
customer expectations".customer expectations".

1. Customer Focused Actions1. Customer Focused Actions
 understanding the whole range of customer needs andunderstanding the whole range of customer needs and
expectations for products, delivery, price,expectations for products, delivery, price,
dependability, etc.dependability, etc.
 ensuring a balanced approach among customers andensuring a balanced approach among customers and
other stakeholders (owners, people, suppliers, localother stakeholders (owners, people, suppliers, local
communities and society at large) needs andcommunities and society at large) needs and
expectations.expectations.
 communicating these needs and expectationscommunicating these needs and expectations
throughout the organisation,throughout the organisation,
 measuring customer satisfaction and acting on results,measuring customer satisfaction and acting on results,
and managing customer relationships.and managing customer relationships.

• for policy and strategy formulationfor policy and strategy formulation,, making customer needsmaking customer needs
and the needs of other stakeholders understood throughout theand the needs of other stakeholders understood throughout the
organisation;organisation;
•for goal and target settingfor goal and target setting,, ensuring that relevant goals andensuring that relevant goals and
targets are directly linked to customer needs and expectations;targets are directly linked to customer needs and expectations;
•for operational managementfor operational management,, improving the performance ofimproving the performance of
the organisation to meet customer needsthe organisation to meet customer needs
•For human resources managementFor human resources management,, ensuring the peopleensuring the people
have the knowledge and skills required to satisfy thehave the knowledge and skills required to satisfy the
organisation's customers.organisation's customers.
1. Benefits of a1. Benefits of a Customer-FocusedCustomer-Focused
Organization principle.Organization principle.

A “Customer-Driven”A “Customer-Driven”
OrganizationOrganization
LeadershipLeadershipLeadershipLeadership
PeoplePeoplePeoplePeople
ProcessesProcessesProcessesProcesses
PlanningPlanningPlanningPlanning
ProductProductProductProduct CustomerCustomer
SatisfactionSatisfaction
CustomerCustomer
SatisfactionSatisfaction

Team Exercise: Customer-DrivenTeam Exercise: Customer-Driven
 How involved is your companyHow involved is your company
in developing activities toin developing activities to
develop and measure yourdevelop and measure your
customers satisfaction?customers satisfaction?
Rate yourself from 1 to 10?Rate yourself from 1 to 10?

2. Leadership2. Leadership
"Leaders establish unity of"Leaders establish unity of purpose andpurpose and
directiondirection of the organisation.of the organisation.
They should create and maintain the internalThey should create and maintain the internal
environment in which people can becomeenvironment in which people can become
fully involved in achieving thefully involved in achieving the
organisation's objectives."organisation's objectives."

Leadership vs ManagementLeadership vs Management
LeadershipLeadership
 VisionVision
 Shared ValuesShared Values
 Changing BehaviourChanging Behaviour
 EffectiveEffective
 ““Soft”Soft”
 Top LineTop Line
ManagementManagement
 PolicyPolicy
 ProceduresProcedures
 ProcessesProcesses
 EfficientEfficient
 ““Hard”Hard”
 Bottom LineBottom Line

2. Leadership Actions:2. Leadership Actions:
• being proactive and leading by example,being proactive and leading by example,
•• understanding and responding to changes in the externalunderstanding and responding to changes in the external
environment,environment,
•• considering the needs of all stakeholders includingconsidering the needs of all stakeholders including
customers, owners, people, suppliers, local communitiescustomers, owners, people, suppliers, local communities
and society at large,and society at large,
•• establishing a clear vision of the organisation's future,establishing a clear vision of the organisation's future,
•• establishing shared values and ethical role models at allestablishing shared values and ethical role models at all
levels of the organisation,levels of the organisation,
•• building trust and eliminating fear,building trust and eliminating fear,

2. Leadership Actions 22. Leadership Actions 2
•• providing people with the required resources and freedomproviding people with the required resources and freedom
to act with responsibility and accountability,to act with responsibility and accountability,
•• inspiring, encouraging and recognizing people'sinspiring, encouraging and recognizing people's
contributions,contributions,
•• promoting open and honest communication,promoting open and honest communication,
•• educating, training and coaching people,educating, training and coaching people,
•• setting challenging goals and targets, andsetting challenging goals and targets, and
•• implementing strategy to achieve these goals and targets.implementing strategy to achieve these goals and targets.

•Establish and communicate a clearEstablish and communicate a clear
vision of the organization’s future.vision of the organization’s future.
•Translate the vision of theTranslate the vision of the
organization into measurable goals aorganization into measurable goals a
nd targets.nd targets.
•Empower and involve people toEmpower and involve people to
achieve the organization’s objective.achieve the organization’s objective.
•Have an empowered, motivated,Have an empowered, motivated,
well informed and stable workforce.well informed and stable workforce.
2. The benefits of applying2. The benefits of applying
the Principle of Leadershipthe Principle of Leadership

Team Exercise: LeadershipTeam Exercise: Leadership
 What actions has yourWhat actions has your
company taken to demonstratecompany taken to demonstrate
leadership in your company?leadership in your company?

3. Involvement of People3. Involvement of People
"People at all levels are the essence of an"People at all levels are the essence of an
organisation and their full involvementorganisation and their full involvement
enables their abilities to be used for theenables their abilities to be used for the
organisation's benefit".organisation's benefit".

3. Actions for Involvement of People3. Actions for Involvement of People
 accepting ownership and responsibility to solve problems,accepting ownership and responsibility to solve problems,
 actively seeking opportunities to make improvements,actively seeking opportunities to make improvements,
 actively seeking opportunities to enhance their competencies,actively seeking opportunities to enhance their competencies,
knowledge and experience,knowledge and experience,
 freely sharing knowledge and experience in teams and groups,freely sharing knowledge and experience in teams and groups,
 focusing on the creation of value for customers,focusing on the creation of value for customers,
 being innovative and creative in furthering the organisationsbeing innovative and creative in furthering the organisations
objectives,objectives,
 better representing the organisation to customers, localbetter representing the organisation to customers, local
communities and society at large,communities and society at large,
 deriving satisfaction from their work, and be enthusiastic and proudderiving satisfaction from their work, and be enthusiastic and proud
to be part of the organisation.to be part of the organisation.

•People effectively contribute toPeople effectively contribute to
improvement of the policy and strategimprovement of the policy and strateg
ies of the organization.ies of the organization.
•People share ownership of thePeople share ownership of the
organization’s goal.organization’s goal.
•People are involved in appropriatePeople are involved in appropriate
decisions and process improvements.decisions and process improvements.
•People are more satisfied with theirPeople are more satisfied with their
job and being actively involve in theirjob and being actively involve in their
personal growth development, for thepersonal growth development, for the
organization benefits.organization benefits.
3.3. The benefits of applyingThe benefits of applying InvolvementInvolvement
of people principle.of people principle.

Team Exercise: Involvement ofTeam Exercise: Involvement of
PeoplePeople
company taken to involve yourcompany taken to involve your
staff in the active participationstaff in the active participation
in your company?in your company?

4. Process Approach4. Process Approach
"A desired result is achieved more efficiently"A desired result is achieved more efficiently
when related resources and activities arewhen related resources and activities are
managed as a process."managed as a process."

Process Approach ActionsProcess Approach Actions
 Define the processDefine the process
 Identify the inputs and outputs of theIdentify the inputs and outputs of the
processprocess
 Identify the interfaces of the processIdentify the interfaces of the process
 Evaluate risks and impacts of processesEvaluate risks and impacts of processes
 Establish responsibilityEstablish responsibility
 Identify internal and external customersIdentify internal and external customers

•Lead to more predictable results, better use ofLead to more predictable results, better use of
resources, shorter cycle time, and lower costs.resources, shorter cycle time, and lower costs.
•Enables the creation of challenging goals andEnables the creation of challenging goals and
targets.targets.
•Lower costs, prevention of errors, control ofLower costs, prevention of errors, control of
variation, shorter cycle times and more predicable ovariation, shorter cycle times and more predicable o
utputs.utputs.
•Establish cost efficient process for human resourceEstablish cost efficient process for human resource
management, such as hiring, education and training.management, such as hiring, education and training.
4.4. The benefits of applyingThe benefits of applying aa ProcessProcess
approachapproach pprinciple.rinciple.

Process ApproachProcess Approach

Team Exercise: ProcessTeam Exercise: Process
ApproachApproach
company taken to identify thecompany taken to identify the
processes to effectively useprocesses to effectively use
people, equipment, methodspeople, equipment, methods
and materials?and materials?

Team ActivityTeam Activity
 Review QMP 1-4Review QMP 1-4
 Indicate:Indicate:
– What three barriers you think wouldWhat three barriers you think would
occur in implementing this Principleoccur in implementing this Principle
andand
– What you may do to overcome theWhat you may do to overcome the
barriersbarriers
 Which Principle do you think willWhich Principle do you think will
be the hardest to implement andbe the hardest to implement and
why?why?

5. Systems Approach to5. Systems Approach to
"Identifying, understanding and managing a"Identifying, understanding and managing a
system of interrelated processes for a givensystem of interrelated processes for a given
objective improves the organisation's effectivenessobjective improves the organisation's effectiveness
and efficiency."and efficiency."

System Approach ActionsSystem Approach Actions
 Define the systemDefine the system
 Structure the systemStructure the system
 Understanding the interdependenciesUnderstanding the interdependencies
 Continually improving the systemContinually improving the system
 Establishing resource constraintsEstablishing resource constraints

•Create comprehensiveCreate comprehensive
and challenging plans thand challenging plans th
at link functional and proat link functional and pro
cess inputs.cess inputs.
•The goals and targetsThe goals and targets
of the individualof the individual
processes are aligned wiprocesses are aligned wi
5.5.The benefits of applyingThe benefits of applying a Systema System
AApproach topproach to MManagement principle.anagement principle.

•LeadLead thethe ororganizationganization to understanding ofto understanding of
the causes of problems and timely improvemthe causes of problems and timely improvem
ent actions.ent actions.
•Provide a better understanding of roles andProvide a better understanding of roles and
responsibilities for achieving commonresponsibilities for achieving common
objectives.objectives.
5.5.The benefits of applyingThe benefits of applying a Systema System
AApproach topproach to MManagement principle.anagement principle.

A Systems ApproachA Systems Approach

Team Exercise: SystemsTeam Exercise: Systems
ApproachApproach
company taken to identify thecompany taken to identify the
processes in your system andprocesses in your system and
measure their results againstmeasure their results against
key objectives?key objectives?

6. A “Continual Improvement”6. A “Continual Improvement”
Approach to ManagementApproach to Management
"Continual improvement should be a"Continual improvement should be a
Permanent objective ofPermanent objective of
the organisation."the organisation."

Product/Product/
ServiceService
QUALITY MANAGEMENT SYSTEMQUALITY MANAGEMENT SYSTEM
CONTINUAL IMPROVEMENTCONTINUAL IMPROVEMENT
responsibilityresponsibility
Measurement,Measurement,
analysisanalysis
improvementimprovement
ResourceResource
managementmanagement
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OutputOutputInputInput
Quality Management Process ModelQuality Management Process Model
ProductProduct
(and/or service(and/or service))
RRealizationealization
55
88
77
66
PLANPLAN
CHECKCHECK
DODO
ACTACT

An 8-Step Methodology for CIAn 8-Step Methodology for CI
1.1. Involving the whole organizationInvolving the whole organization
2.2. Initiating quality improvement projects or activitiesInitiating quality improvement projects or activities
3.3. Investigating possible improvementInvestigating possible improvement
4.4. Establishing cause-and-effect relationshipEstablishing cause-and-effect relationship
5.5. Taking preventive or corrective actionsTaking preventive or corrective actions
6.6. Confirming the improvementConfirming the improvement
7.7. Sustaining the gainsSustaining the gains
8.8. Continuing the improvementContinuing the improvement

Continuous Improvement ActionsContinuous Improvement Actions
 Make CI an objective for everyoneMake CI an objective for everyone
 Apply CI tools in “incremental” and “breakthrough”Apply CI tools in “incremental” and “breakthrough”
improvementimprovement
 Periodically assess (benchmark)Periodically assess (benchmark)
 Continually improve the efficiency and effectiveness of allContinually improve the efficiency and effectiveness of all
processesprocesses
 Provide TrainingProvide Training
 Establish measures and goals to track improvementsEstablish measures and goals to track improvements
 Recognize improvements (the people)Recognize improvements (the people)

•Create and achieve moreCreate and achieve more
competitive business planscompetitive business plans thrthr
ough the integration of continough the integration of contin
ual improvement with strategiual improvement with strategi
c and business planning.c and business planning.
•Set realisticSet realistic and challengingand challenging
improvementimprovement goalsgoals andand providprovid
e the resourcese the resources to achieve theto achieve the
m.m.
•Involve peopleInvolve people in thein the
organization in the continual iorganization in the continual i
mprovement processes.mprovement processes.
6.6. The benefits of applyingThe benefits of applying
Continual Improvement principleContinual Improvement principle..

Team Exercise: ContinuousTeam Exercise: Continuous
ImprovementImprovement
company taken to establishcompany taken to establish
new values and behaviornew values and behavior
focusing on measuring andfocusing on measuring and
reviewing performance andreviewing performance and
acting on results?acting on results?

7. A Factual Approach to7. A Factual Approach to
Decision makingDecision making
"Effective decisions are based on the"Effective decisions are based on the
analysis of data andanalysis of data and informationinformation."."

FactsFacts MeasurementMeasurement
DecisionDecision
AnalysisAnalysis InformationInformation
The Fact-to-Act ProcessThe Fact-to-Act Process
DataData
ActionAction
ResultResult
To achieveTo achieve
objectiveobjective
NoNo
YesYes

Factual Approach ActionsFactual Approach Actions
 Take measurements and collect dataTake measurements and collect data
 Make sure the data is accurate, reliable andMake sure the data is accurate, reliable and
accessibleaccessible
 Analyze the dataAnalyze the data
 Understand SPCUnderstand SPC

•Set up strategies that isSet up strategies that is
based on relevant data and ibased on relevant data and i
nformation which will be monformation which will be mo
re realistic and more likely tre realistic and more likely t
o be achieved.o be achieved.
•Use relevant comparativeUse relevant comparative
data and information to setdata and information to set
realistic and challenging gorealistic and challenging go
7.7. The benefits of applyingThe benefits of applying AA FactualFactual
Approach toApproach to DDecision making.ecision making.

•Understand both process and system performanceUnderstand both process and system performance
based on understanding of data and information to guidebased on understanding of data and information to guide
improvements and prevent future problems.improvements and prevent future problems.
•Analyze data and information from sources such asAnalyze data and information from sources such as
surveys, suggestions, and focus groups to guide the formsurveys, suggestions, and focus groups to guide the form
ulation of human resource policies.ulation of human resource policies.
7.7. The benefits of applyingThe benefits of applying a Fa Factualactual
Approach toApproach to DDecision making principle.ecision making principle.

Team Exercise: FactualTeam Exercise: Factual
ApproachApproach
company taken to analyzecompany taken to analyze
factual data in the process offactual data in the process of
decision making?decision making?

8. Developing Mutually8. Developing Mutually
Beneficial Supplier RelationshipsBeneficial Supplier Relationships
"An organisation and its suppliers are interdependent,"An organisation and its suppliers are interdependent,
and aand a mutually beneficial relationship enhancesmutually beneficial relationship enhances
the ability of boththe ability of both to create value."to create value."

Beneficial SupplierBeneficial Supplier
Relationships: ActionsRelationships: Actions
 Identifying and selecting key suppliersIdentifying and selecting key suppliers
 Establish relationships with emphasis on long and shortEstablish relationships with emphasis on long and short
term gains with consideration for the organization andterm gains with consideration for the organization and
societysociety
 Create clear and open communicationCreate clear and open communication
 Initiate joint development and improvement of productsInitiate joint development and improvement of products
and processes.and processes.
 Jointly establish understanding of customer’s needs.Jointly establish understanding of customer’s needs.
 Sharing information and plansSharing information and plans
 Recognize supplier improvementsRecognize supplier improvements

•Create competitiveCreate competitive
advantage through the deadvantage through the de
velopment of strategies avelopment of strategies a
lliances or partnership williances or partnership wi
th suppliers.th suppliers.
•Establish moreEstablish more
challenging goals andchallenging goals and
8.8.The benefits of applyingThe benefits of applying MutuallyMutually
beneficial supplier relationships principbeneficial supplier relationships princip
le.le.

•Create and manageCreate and manage
supplier relationship to ensupplier relationship to en
sure reliable, on-time, defesure reliable, on-time, defe
ct-free delivery of supplierct-free delivery of supplier
s.s.
•Develop and enhanceDevelop and enhance
supplier capabilitiessupplier capabilities
through supplier training,through supplier training,
8.8.The benefits of applyingThe benefits of applying MutuallyMutually
BBeneficialeneficial SSupplierupplier RRelationships princelationships princ
iple.iple.

Team Exercise: MutuallyTeam Exercise: Mutually
Beneficial Supplier RelationshipsBeneficial Supplier Relationships
 What actions has your companyWhat actions has your company
taken to establish strategictaken to establish strategic
alliances or partnerships withalliances or partnerships with
your suppliers?your suppliers?

Team ActivityTeam Activity
 Review QMP 5-8Review QMP 5-8
 Indicate:Indicate:
– What three barriers you think wouldWhat three barriers you think would
occur in implementing this Principleoccur in implementing this Principle
andand
– What you may do to overcome theWhat you may do to overcome the
barriersbarriers
 Which Principle do you think willWhich Principle do you think will
be the hardest to implement andbe the hardest to implement and
why?why?

How did you rate?How did you rate?
 Complete your “Final Exam” and determineComplete your “Final Exam” and determine
what areas you can improvewhat areas you can improve
Determine yourDetermine your
““Action Plan” forAction Plan” for
Improvement…Improvement…

What do we do next?What do we do next?
NewNew Old
Old

Questions?Questions?

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