Total Quality Management - International Standard ISO 9000:2000 - Case Study Example

Total Quality Management Student’s Name Institutional Affiliation Date Introduction The publication of the International Standard ISO 9000:2000 following the 1999 Excellence Model elicited debates as to whether the new Standard competes or cooperates with the Excellence Model. Arguments that have posed the new Standard as a complement to the Excellence Model opine that the ISO 9000:2000 Standard does not focus on the excellence goal as the Excellence Model. In order to understand whether the Standard competes or cooperates with the Excellence Model, it would be proper to analyze the changes to both the ISO 9000 Standard and the 1999 Excellence Model. The first section of the paper covers arguments that indicate that the ISO 9000 Standard competes with the 1999 Excellence Model. In the second part, the paper covers arguments that state that the ISO 9000 Standard cooperates with the Excellence Model. The third section includes the support that the ISO 9000 Standard renders to the Excellence Model and vice versa. Finally, the paper discusses the ways through which an organization can leverage capabilities and quality management systems to attain and sustain outstanding achievements. Argument 1: The Competition between the ISO 9000 Standard and the 1999 Excellence Model Before delving into the similarities between the Standard and the Excellence Model, it would be proper to understand the motives behind both publications. A review of the motives behind both publications reveals that quality assurance and quality management are the objectives of the ISO 9000 Standard and the 1999 Excellence Model respectively. In the quest to get a clear glimpse of both publications, it would also be necessary to review the eight Principles of the ISO 9000:2000 Standard in comparison with the underlying concepts of the 1999 Excellence Model also referred to as the EFQM Excellence Model. The table below shows the comparison. The ISO 9000:2000 Standard The 1999 EFQM Excellence Model Focus on customers Focus on customers Leadership Development of partnerships People involvement People involvement and development Process approach Management by facts and processes Management by system approach Continual learning, improvement, and innovation Continual improvement Leadership and purpose constancy Decision-making by factual approach Public responsibility Mutually beneficial relationships with suppliers Oriented to results Table 1: Comparison between the ISO 9000:2000 Standard and the 1999 EFQM Excellence Model (Source: Russell, 2000) A comparison of the fundamental principles for both the ISO 9000:2000 Standard and the 1999 EFQM Model reveals a strong resemblance. The strong similarities between the principles of both publications tend to indicate that they drive towards almost similar objectives. For instance, both the Standard and the Excellence Model consider customer focus as a fundamental principle. The Standard and the Excellence Model also reiterate the crucial role that leadership plays in availing the necessary focus and drive in a system. Both the Standard and the Excellence Model also exhibit a movement towards the same position on the aspects of people and mutually beneficial relationships with suppliers. Moreover, both the Standard and the Excellence Model emphasize the essence of the process and continuous improvement in a system. In general, the comparison of the overall process framework between the Excellence Model and the new Standard also reveals a movement towards the same goal. The fact that one can identify Deming’s plan-do-check-act process cycle in a system in both the Excellence Model and the new Standard implies a general movement towards the same process cycle model. A review of the people aspect also identifies linkages between the new Standard and the Excellence Model. The ISO 9001:2000 Standard requires the system to identify and train competence (Russell, 2000). Besides training, the organization should be able to evaluate the effectiveness of the training that it offers to its employees. The new Standard also requires the organization to communicate the efforts placed by individual stakeholders in attaining its quality objectives. By so doing, it is evident that the organization meets some of the requirements of the Excellence Model. Just like the Excellence Model that requires the organization to plan, manage, and improve people resources within the system, the new Standard also requires the organization to identify and provide all the necessary resources within the system. To some extent, it is evident that there exists a linkage between the resource requirement of both the new Standard and the 1999 EFQM Excellence Model. The other area of similarity between the new Standard and the Excellence Model is the need for the organization to manage physical and human factors associated with its work environment under the ISO 9001:2000 Standard. On the same aspect, section 3a of the Excellence Model also requires the organization to put in place the necessary organizational structure that would enable it to deal with issues associated with the safety and health of workers. The resources aspect also exhibits areas of similarity between the perspectives held by both the new Standard and the 1999 EFQM Excellence Model. For instance, the ISO 9001:2000 Standard requires the organization to identify and provide all required resources in a timely manner. The need to provide resources on the part of the organization is also evident in the Excellence Model (Russell, 2000). To be precise, section 4c of the Model covers areas associated with the management of buildings, materials, and equipment. Section 4e of the Model also covers the management of knowledge and information. In accordance with the provisions of the ISO Standard, the organization should identify, provide, and maintain facilities associated with product conformity. Some of the included areas are hardware and software, facilities and equipment, and workspace. The ISO Standard also requires the organization to manage properly the physical factors that are detrimental towards product conformity. The requirements exhibit linkages with the provisions of criterion 4c of the Excellence Model even though the Model adopts a more comprehensive coverage of the requirements. Argument 2: The cooperation between the ISO 9000 Standard and the 1999 Excellence Model Differences between the principles of the Standard and the Excellence Model reveal that the objective of the Standard is to cooperate with the Excellence Model. One of the visible differences from the comparison of the fundamental principles is the perspective held by the Standard and the Excellence Model on quality or excellence (Russell, 2000). To be precise, the Excellence Model holds a more holistic perspective towards quality as evidenced by its focus on innovation, learning, and public responsibility. From that perspective, it is proper to note that the Excellence Model advocates for an inclusive approach towards attaining the results in a system. Even though both the Excellence Model and the new Standard indicate Deming’s plan-do-act-check process model, it is apparent that the Excellence Model reveals a rather different emphasis. To be precise, the Excellence Model portrays an emphasis towards the significance of measuring and analyzing results as an essential prerequisite to the system review and improvement process as compared to the new Standard. From the different in areas of focus on the process cycle, it is apparent that the new Standard complements the Excellence Model thereby signifying cooperation. Both ISO 9000:2000 Standard and the 1999 Excellence Model have different definitions of their scope. As opposed to the definition of the new Standard that is evident in ISO/DIS 9001:2000 (1999), the Excellence Model derives its definition from the EFQM guide. Comparing the different scope definitions for the new Standard and the Excellence Model reveals their point of difference. Rather than identifying the quality management requirements, as it is the case in the new Standard, the framework provided by the EFQM Excellence Model is non-prescriptive. As a result, the framework recommended by the Excellence Model acknowledges the existence of many approaches towards attaining sustainable excellence in a system (Russell, 2000). In essence, the scope definition provided by the new Standard indicates the need for the organization to avail products that meet the existing customer demand and specifications on a continuous basis. In the quest to provide products that meet the demands of customers, it is also essential that the product should comply with the requirements of the regulatory authorities. The scope definition for the new Standard also requires the organization to deal with the issue of customer satisfaction by using the system effectively. This includes the use of the system to apply processes associated with non-conformity prevention and continual improvement. On the other hand, the non-prescriptive framework revealed in the 1999 EFQM Excellence Model reveals the need for the organization to apply different approaches towards attaining sustainable excellence. The Excellence Model contains nine criteria that handle issues associated with the interested stakeholders and activities within the system that are essential towards creating a favorable system environment for attaining sustainable excellence (Russell, 2000). In essence, the fact that the Excellence Model covers all activities within the system reveals that it has a wider scope than the ISO 9000:2000 Standard that centers on regulatory and customer requirements only. From the scope differences mentioned earlier, it is proper to answer the question of competition or cooperation between the new Standard and the Excellence Model. In order to determine whether the new Standard cooperates with the Excellence Model, it is proper to determine specific areas where the new Standard provides greater foundations for cooperation. In such cases, then it would be proper for the system enablers to consider the new Standard as an improved alternative towards attaining sustainable excellence within the system. In the quest to establish potential linkages between the different aspects of both the new Standard and the Excellence Model, the leadership aspect reveals significant linkages. ISO 9001:2000 provides a clear definition of the role of the top management of a system. According to the new Standard, it is the responsibility of the top management to ensure that the system meets customer expectations and needs (Russell, 2000). The top management officials are also responsible for setting plans, objectives, and policies, besides ensuring the availability of necessary resources to meet the needs of the policies and objectives. The new Standard also extends the role of the top management to conducting system review aimed at ascertaining that the timely implementation of improvements (Russell, 2000). An in-depth analysis of the role played by the top management under the new Standard reveals that they would not hesitate towards ensuring that the system attains sustainable excellence. On the other hand, the Excellence Model provides a wider scope towards leadership. According to the Model, the leadership comprises of the executive, other managers, and all other individuals holding other leadership positions such as supervisors. The Model mandates all leaders to exhibit joint efforts and commitment towards performing assessment roles that include excellence assessment. The Model reiterates the critical role played by the leadership in role modeling. Such roles include the need for leaders to focus on external relationships that extend beyond the customer, the need for leaders to recognize and motivate individuals, as well as other aspects that the ISO 9000:2000 Standard does not cover. This indicates cooperation between the new Standard and the Excellence Model in the quest to attain sustainable excellence in the system. The policy and strategy aspect also reveals potential linkages between the new Standard and the Excellence Model. The ISO 9001:2000 Standard requires the system to have a quality policy (Russell, 2000). Besides having the policy in place, the new Standard also requires the system to put in place the necessary plans and objectives that would enable its compliance to the policy. The new Standard also recommends the effective communication of the policy to all departments of the organization. The need to measure and analyze data that is evident in the new Standard also contributes towards ensuring the sustainability of the policy. Contrary to the focus on quality policy exhibited by the new Standard, the 1999 EFQM Excellence Model focuses on the policy and strategy of the organization from a wider perspective. From the wider focus on policy issues, it is evident that the Excellence Model extends beyond the issue of quality policy to include other pertinent policy areas within the organization. Moreover, the Model requires the leadership to source pertinent information from different sectors before embarking on policy formulation. To be precise, the provisions of section 2c of the Excellence Model require the organization to balance the expectations and needs of all stakeholders as well as both short-term and long-term requirements and pressures. Contrary to the ISO 9001:2000 Standard that focuses on the product realization process, Criterion 2d of the Excellence Model extends beyond product realization to include other key processes within the system such as the role played by stakeholders and process ownership (Russell, 2000). Having a closer look at the policy and strategy aspect also reveals that the Excellence Model provides a more comprehensive approach towards policy and strategy formulation as compared to the new Standard that focuses on specific policy and strategy aspects only. In essence, the new Standard appears to cooperate rather than compete with the Excellence Model. Besides exhibiting areas of similarity on the people aspect, there are areas of difference associated with the aspect. For instance, the Excellence Model has a wider coverage of issues associated with organizational structures that are necessary for the health and safety of workers under criterion 3a. However, the coverage of the issue or resource availability for attaining sustainable quality under the new Standard does not compare to that under the Excellence Model because of its limited scope. For instance, the new Standard does not cover the aspect of human resource planning, the need for team working and people development through other processes besides training, and the issues of recognition, care, and reward in sections 3a, 3b, and 3e respectively. Moreover, the new Standard does not cover the issue of people empowerment and involvement covered under section 3c of the 1999 EFQM Excellence Model (Russell, 2000). In essence, it is evident that the Excellence Model adopts a wider coverage of issues handled on a limited scale by the new Standard. As a result, it is proper to state that the new Standard cooperates rather than compete with the Excellence Model. Even though section 4c of the 1999 EFQM Excellence Model covers aspects associated with the need for organizations to provide resources associated with product conformity, there are specific areas that the Model does not delve into them. One of the areas is the need for the organization to conserve materials and other resources (Russell, 2000). The ISO Standard also covers the need for resource management bearing in mind the potential negative effects that such resources could have on employees and the community. On the contrary, the Excellence Model does not include such requirements among its provisions. Moreover, there are several aspects covered under criterion 4e of the Excellence Model that the ISO Standard does not cover. For instance, in the handling of information control, the ISO Standard does not provide requirements associated with the knowledge use, the use of information to generate creative thinking, and how an organization should develop and cultivate intellectual property. Moreover, the standard does not cover aspects associated with the management of technology or finance. In essence, the numerous differences that exist between the ISO Standard and the Excellence Model indicate a cooperation rather than competition relationship between the Model and the new Standard. How ISO would support EFQM According to Allan D Dommartin (2003), the ISO Standard is the floor whereas the EFQM Excellence Model is the ceiling of the corporate house. This implies that the ISO Standard represents the minimum quality level that customers should anticipate from a corporation. On the part of the company, the ISO Standards indicate the onset of the journey of the company towards embarking on the quality policy by meeting the minimum level of customer requirements. The fact that the ISO Standards are the floor of the corporate house implies that the new Standards support the EFQM Excellence Model by providing the baseline or foundation upon which the organization scales its growth heights with specific consideration to quality issues. Therefore, organizations should implement ISO 9000 Standards prior to implementing the EFQM Model. The fact that the implementation of the ISO 9000 Standards requires comparatively lower resources than the EFQM Model implies the need to implement the ISO Standards before embarking on the implementation of the EFQM Model (Dommartins, 2003). It is evident that the ISO 9000 Standards do not include many of the EFQM or TQM principles. As a result, one cannot compare EFQM with the ISO Standards. As a result, firms should consider the ISO 9000 Standards as the pathway or stepping stone towards implementing EFQM (Fonseca, 2015). The existence of common dimensions between the ISO 9000 Standard and the 1999 EFQM Excellence Model such as process management does not attempt to compare the ISO Standards with the EFQM Excellence Model. The massive gap that exists between the aspects covered under the EFQM Excellence Model and the ISO Standards has resulted in recent revisions such as the 2008 ISO Standards version that aimed at reducing the gap. Rather than being open as it is the case with the EFQM Excellence Model, the ISO 9000 Standards is prescriptive in nature. It entails an overview of quality provisions that organizations should adhere to on a day-to-day basis. The fact that the ISO 9000 Standards enable the organization to meet basic quality expectations on a day-to-day basis whereas the EFQM Excellence Model prepares the organization for the future implies that effective role played by the ISO 9000 certificate towards enabling the firm to meet the quality provisions contained in the EFQM Excellence Model. Apparently, organizations begin the journey towards excellence by attaining ISO 9000 Standards certificate. However, as the firm progresses, the need for sustained growth and excellence arises. This compels the corporation to implement the quality provisions contained in the EFQM Excellence Model to attain the appropriate certification. The ISO 9000 Standards focuses on quality assurance (Vaxevanidis et al., 2006). Therefore, companies capitalize on the quality assurance aspect guaranteed by the ISO Standards to build on future excellence by adhering to the requirements of the EFQM Excellence Model. The need for implementing the EFQM Excellence Model emanates from the fact that organizations progress to a level where compliance should also accompany performance. As a result, they advance to the EFQM Excellence Model to guarantee performance after having attained compliance to quality standards contained in the ISO 9000 Standards. Leveraging Capabilities and Quality Management Systems to achieve and sustain Outstanding Performance In the quest to leverage capabilities and quality management systems as a guarantee of outstanding performance, there is need for firm managers to plan the quality management systems carefully from the onset of the implementation process throughout the entire process (Kaziliunas, 2010). Following the successful amassing of the resources and implementation of the quality management system, there is need for managers to attach great significance to the post-certification period. This would ascertain the effective maintenance of the already implemented quality management system. Some of the activities that are essential the post-certification phase include conducting management reviews, implementing preventive and corrective actions, conducting external and internal audits, data collection and analysis, and measuring continuous improvement and performance. Leveraging capabilities and quality management systems starts with organizing for quality. Creating order within the company with the objective of preventing chaos in situations where everyone in the workplaces wants to engage in all sorts of activities at the same time suffices to be the rationale behind organizing for quality. This entails identifying the leadership that would be at the center of the implementation of the quality management system, as well as identifying the product realization center and the support center. Business quality planning suffices to be the second step in the process. It entails ascertaining that each group of employees in the workplace performs the intended roles to prevent instances where an executive manager carries out the duties of a lower-level manager thereby rendering the firm dysfunctional. Thirdly, there is need for controlling for quality. This entails defining the purpose of the organization with specific regards to control. Some of the activities of the phase include identifying the target customer, the customer’s location, the customer’s buying behavior, and the proper ways of reaching the customer (Pan et al., 2015). Leveraging capabilities and quality management systems also entails the effective staffing for quality. This entails forecasting the human resource requirements for the quality program. The management should consider alternative outcomes that are likely to occur in the analysis of possible future staffing requirements. The approach improves the decision-making process by enabling the organization to consider outcomes as well as their implications properly. Finally, the management should also motivate for quality by adopting the lead, coach, and guide approach (Pan et al., 2015). Some of the possible options include implementing rewards based on performance to motivate employees to adhere to the quality provisions stipulated in the quality management system. Conclusion The scope of coverage of the fundamental principles of the ISO 9000:2000 Standards and the 1999 EFQM Excellence Model provide a clear insight on the debate on whether the ISO Standard competes or cooperates with the EFQM Excellence Model. A review of the similarities between the different principles covered by both the ISO 9000 Standard and the EFQM Excellence Model could lure one to believe that the quality management systems are competing framework. However, it is evident that the ISO 9000 Standard is the floor whereas the EFQM is the ceiling. As a result, organizations obtain ISO 9000 Standards certification because of its quality assurance guarantee before embarking on meeting the requirements of the EFQM Excellence Model. ISO Standards support EFQM Excellence Model by providing a framework for quality assurance that contributes towards attaining sustained excellence, the rational for implementing the EFQM Excellence Model. The careful planning of the implementation of the quality management system is an effective way through which managers of an organization capitalize on the capabilities and quality management systems to attain outstanding performance. Reference List Dommartin, A. (2003). ISO 9001: 2000 and the EFQM excellence Model-The floor and the ceiling of the corporate house. ISO Management System, 3(1), 18-21. Fonseca, L. M. (2015). Relationship between ISO 9001 certification maturity and EFQM business excellence model results. Quality Innovation Prosperity, 19(1), 85-102. Kaziliunas, A. (2010). The implementation of quality management systems in service organizations. Viesoji Politika ir Administravimas, (34). Pan, G., Pan, S. L., & Lim, C. Y. (2015). Examining how firms leverage IT to achieve firm productivity: RBV and dynamic capabilities perspectives. Information & Management, 52(4), 401-412. Russell, S. (2000). ISO 9000: 2000 and the EFQM excellence model: competition or co-operation?. Total quality management, 11(4-6), 657-665. Vaxevanidis, N. M., Krivokapic, Z., Stefanatos, S., Dasic, P., & Petropoulos, G. (2006). An overview and a comparison of ISO 9000: 2000 quality system standards with related automotive ones (QS9000, ISO/TS 16949) and TQM models (MBNQA and EFQM). organization, 4, 5. Read More