Miscellaneous / Theoretical Consideration Of Quality Management Systems Especially Concerning Service Companies

Theoretical Consideration Of Quality Management Systems Especially Concerning Service Companies

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Autor:  anton  20 May 2011
Tags:  Theoretical,  Consideration,  Quality,  Management,  Systems,  Especially
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Theoretical consideration of quality management systems especially concerning service companies

Executive Summary

TQM Total Quality Management is the management of total quality. We know that management consists of planning, organizing, directing, control, and assurance. Then, one has to define "total quality". Total quality is called total because it consists of 3 qualities : Quality of return to satisfy the needs of the shareholders, Quality of products and services to satisfy some specific needs of the consumer (end customer) and Quality of life - at work and outside work - to satisfy the needs of the people in the organization. This is achieved with the help of upstream and downstream partners of the enterprise. To this, we have to add the corporate citizenship, i.e. the social, technological, economical, political, and ecological (STEPE) responsibility of the enterprise concerning its internal (its people) and external (upstream and downstream) partners, and community. Therefore, Total quality management goes well beyond satisfying the customer, or merely offering quality products (goods and/or services). Note that we use the term consumer or end customer. The reason is that in a Supply Chain Management approach, we don't have to satisfy our customers' needs but the needs of our customers' customers' all the way to the end customer, the consumer of a product and/or service. By applying this definition an enterprise achieves Business Excellence, as suggested by the Malcolm Baldrige (American) and the EFQM (European) Performance Excellence Models. To do that, one has to go well beyond ISO 9000 Standards series as suggested by these standards (ISO 9001, then ISO 9004, then Total Quality) .

ISO 9001:2000 is used if you are seeking to establish a management system that provides confidence in the conformance of your product to established or specified requirements. It is now the only standard in the ISO 9000 family against whose requirements your quality system can be certified by an external agency. The standard recognizes that the word "product" applies to services, processed material, hardware and software intended for, or required by, your customer.

There are five sections in the standard that specify activities that need to be considered when you implement your system. You will describe the activities you use to supply your products and may exclude the parts of the Product Realization section that are not applicable to your operations. The requirements in the other four sections - Quality management system, Management responsibility, Resource management and Measurement, analysis and improvement - apply to all organizations and you will demonstrate how you apply them to your organization in your quality manual or other documentation.

Together, the five sections of ISO 9001:2000 define what you should do consistently to provide products that meets customer and applicable statutory or regulatory requirements. In addition, you will seek to enhance customer satisfaction by improving your quality management system.

ISO 9004:2000 is used to extend the benefits obtained from ISO 9001:2000 to all parties that are interested in or affected by your business operations. Interested parties include your employees, owners, suppliers and society in general.

ISO 9001:2000 and ISO 9004:2000 are harmonized in structure and terminology to assist you to move smoothly from one to the other. Both standards apply a process approach. Processes are recognized as consisting of one or more linked activities that require resources and must be managed to achieve predetermined output. The output of one process may directly form the input to the next process and the final product is often the result of a network or system of processes. The eight Quality Management Principles stated in ISO 9000:2000 and ISO 9004:2000 provide the basis for the performance improvement outlined in ISO 9004:2000.

The nature of your business and the specific demands you have will determine how you apply the standards to achieve your objectives .


"Total Quality Control" was the key concept of Armand Feigenbaum's 1951 book, Quality Control: Principles, Practice, and Administration, a book that was subsequently released in 1961 under the title, Total Quality Control. W. Edwards Deming, Joseph Juran, Philip B. Crosby, and Kaoru Ishikawa also contributed to the body of knowledge now known as TQM.

Total Quality Management is a term first coined by the U.S. Naval Air Systems Command to describe its Japanese-style management approach to quality improvement.

Since then TQM has taken on many meanings, but at its core it's a management approach to long-term success through customer satisfaction.

In a TQM effort, all members of an organization participate in improving processes, products, services and the culture in which they work.

The methods for implementing this approach come from the teachings of such quality leaders as Philip B. Crosby, W. Edwards Deming, Armand V. Feigenbaum, Kaoru Ishikawa and Joseph M. Juran.

A core concept in implementing TQM is Deming's 14 points, a set of management practices to help companies increase their quality and productivity:

1. Create constancy of purpose for improving products and services.

2. Adopt the new philosophy.

3. Cease dependence on inspection to achieve quality.

4. End the practice of awarding business on price alone; instead, minimize total cost by working with a single supplier.

5. Improve constantly and forever every process for planning, production and service.

6. Institute training on the job.

7. Adopt and institute leadership.

8. Drive out fear.

9. Break down barriers between staff areas.

10. Eliminate slogans, exhortations and targets for the workforce.

11. Eliminate numerical quotas for the workforce and numerical goals for management.

12. Remove barriers that rob people of pride of workmanship, and eliminate the annual rating or merit system.

13. Institute a vigorous program of education and self-improvement for everyone.

14. Put everybody in the company to work accomplishing the transformation .

The term "Total Quality Management" has lost favor in the United States in recent years: "Quality management" is commonly substituted. "Total Quality Management," however, is still used extensively in Europe .

In his paper, "The Making of TQM: History and Margins of the Hi(gh)-Story" from 1994, Xu claims that "Total Quality Control" is translated incorrectly from Japanese since there is no difference between the words "control" and "management" in Japanese. William Golimski refers to Koji Kobayashi, former CEO of NEC, being the first to use TQM, which he did during a speech when he got the Deming Prize in 1974.

TQM has nothing to do with Feigenbaum's Total Quality Control or TQC. Total Quality Control means the total control of quality and not the control of total quality. At one point, the Japanese reluctantly used the acronym TQC only because their CWQC (Company-wide Quality Control i.e. Management) was too long and sounded somewhat awkward.

II. TQM in manufacturing

Quality assurance through statistical methods is a key component in a manufacturing organization, where TQM generally starts by sampling a random selection of the product. The sample can then be tested for things that matter most to the end users. The causes of any failures are isolated, secondary measures of the production process are designed, and then the causes of the failure are corrected. The statistical distributions of important measurements are tracked. When parts' measures drift into a defined "error band", the process is fixed. The error band is usually a tighter distribution than the "failure band", so that the production process is fixed before failing parts can be produced.

It is important to record not just the measurement ranges, but what failures caused them to be chosen. In that way, cheaper fixes can be substituted later ( say, when the product is redesigned ) with no loss of quality. After TQM has been in use, it's very common for parts to be redesigned so that critical measurements either cease to exist, or become much wider.

It took people a while to develop tests to find emergent problems. One popular test is a "life test" in which the sample product is operated until a part fails. Another popular test is called "shake and bake", in which the product is mounted on a vibrator in an environmental oven, and operated at progressively more extreme vibration and temperatures until something fails. The failure is then isolated and engineers design an improvement.

A commonly-discovered failure is for the product to disintegrate. If fasteners fail, the improvements might be to use measured-tension nutdrivers to ensure that screws don't come off, or improved adhesives to ensure that parts remain glued.

If a gearbox wears out first, a typical engineering design improvement might be to substitute a brushless stepper motor for a DC motor with a gearbox. The improvement is that a stepper motor has no brushes or gears to wear out, so it lasts ten or more times as long. The stepper motor is more expensive than a DC motor, but cheaper than a DC motor combined with a gearbox. The electronics are radically different, but equally expensive. One disadvantage might be that a stepper motor can hum or whine, and usually needs noise-isolating mounts.

Often, a "TQMed" product is cheaper to produce because of efficiency/performance improvements and because there's no need to repair dead-on-arrival products, which represents an immensely more desirable product.

III. TQM in services

The growing quality requirements of different groups of service-companies changed their perspective towards a stronger strategic and all-embracing orientation on service quality . To complete the systematic development and the effective implementation of the quality management of services different requirements have to be fulfilled. Ten principles of the quality management of services (10 CÐ’Ò‘s) come to the fore:

В• Customer focus (1)

В• Consequence (2)

В• Competition borderline (3)

В• Consistence (4)

В• Congruence (5)

В• Coordination (6)

В• Communication (7)

В• Complete-solutions (8)

В• Continuity (9)

В• Cost-benefit-orientation (10)

IV. Tasks and planning instruments of a quality management of service

Within the planning instruments of a quality management of service the basic frame of action of the quality management and therewith the quality-related strategic orientation of the service company consulting with the companyÐ’Ò‘s strategy must be appointed. Therefore four main tasks come up to the strategic planning of a quality management:

В• Fixing of the strategic quality position

В• Fixing of the quality strategy

В• Fixing of the quality principles

В• Fixing of the quality aims

The fixing of the strategic quality position of a service company provides the main basis for the draft of a quality management conception.

Based on the quality-related strength, weakness, chances and risks the quality strategy is appointed. Due to this the target quality position should be reached.

Based on the desired quality position and the chosen quality strategy of the service company the quality principles are appointed. They concretize the quality strategy for the daily quality work inside the service company. The formulation of binding quality principles builds the basis of operating a process of quality improvement actions. Therefore it is the task of the company management to codify concrete quality principles. The codification can be audited by management ratios or checklists.

The shown general quality principles should be fixed within the strategic quality planning as short or long term reachable quality aims. Such quality aims should be achieved by the input of quality based instruments. The formulation of clear, long term oriented aims is necessary to avoid an exclusive reactive adaption of the service company .

Source: Bruhn, 4.2, table 4-10

V. Control circuit of the quality management

The use of concrete instruments of the quality management becomes necessary for the putting into action of the TQM and the quality management system in the service companies to guarantee the service performance quality in the different phases of the performance construction process. In connection with this about a "control circuit of the quality management" is talked mostly. Based on this concept the companies in the past have often built up systems their own with an implemented quality management system according to her specific needs. Ideal-typical a quality management system can be oriented according to the control circuit concept at the classic management functions such as planning, execution and control. The four phases

В• Quality Planning

В• Quality Steering

В• Quality Control

В• Quality Management Exposition

can be distinguished , as shown in the following table:

Quality Management System

Source: Bruhn, 5.1, table 5-1

How the different phases have to be formed and which quality-related measures are necessary in the different phases is shown in the following. For the particular quality measures it is essential which group of employees of the service company is mainly responsible for which concept. Related to this four responsibility levels four quality measures have to be differed:

Source: Bruhn, 5.1, table 5-2

Differing structures can essentially arise from different sizes and organizational structures of service companies. But the responsibility of the management always ranks first .

1. Instruments of quality planning

The quality planning as first phase of a systematic quality management is defined by the German Society for Quality as planning and developing the quality requirements of the subject matter. Planning and further development of quality improvement are the main content of the first phase. Not the quality of service itself, but the different quality requirements should be planned. The needed instruments should be demonstrated and integrated .

2. Instruments of quality steering

The phase of quality steering principally builds up upon the results of the quality planning. It is defined as phase that contains all preventive, supervising and correcting activities during the realization of a unit with the aim to fulfill the quality claim under application of quality technologies . This phase contains all activities that serve the realization of the requirements for the quality of service from the customers and management sight. Three instruments are of a high importance:

В• Employee related instruments

В• Cultural related instruments

В• Organizational related instruments

3. Instruments of quality control

Besides the planning and the steering of the service quality, the phase of the quality control in a quality management system has to detect the effective completion of the quality claims. With the help of audits must be controlled, if and how the claims of the service quality, which have been determined during the service specification, have turned into reality. The following instruments can be useful for the control:

В• Second-set-of В–eyes principle

В• Employee monitoring

В• Employee appraisal / appraisal interviews

В• External quality measures / external audits

В• Internal quality measures / internal audits

4. Instruments of quality management exposition

"At the end of the quality management circuit" the phase of quality management exposition or even called quality assurance has to be watched closely. In this quality management exposition different concepts or systems are available. They contain different instruments like:

В• Quality management guides

В• Quality statistics

В• Integrated communication

В• Quality audits

В• certifications

Due to this quality management exposition, a closer look to a practical integration of a quality management system is taken in the following second part of this assignment. The single instruments of the integration of a quality management system must be adapted into an all-embracing quality management system.


Bachner, Ulrike (1999)

Qualitätsmanagement im Krankenhaus – Praxishandbuch zur Einführung eines Qualitätsmanagementsystems; 1st edition, Schlütersche, Hannover 1999

Bruhn, Manfred (2004):

Qualitätsmanagement für Dienstleistungen – Grundlagen, Konzpte, Methoden; 5th edition, Springer, Berlin, Heidelberg 2004

Deming, William Edwards (1993):

The New Economics: For Industry, Government, Education (1994); 2nd edition, Massachusetts Institute of Technology 1994

Kaminske, Gerd F. / Brauer, Jörg-Peter (2006)

Qualitätsmanagement von A bis Z – Erläuterungen moderner Begriffe des Qualitätsmanagments; 5th edition, Hanser, München 2006

Qualitätsmanagement-Handbuch des Brustzentrums Düsseldorf im Luisenkrankenhaus (2007)

Version 6, laufende Nummer 12 vom 19.07.2007

Internet Sources

ASQ В– American Society for Quality

http://www.asq.org/learn-about-quality/total-quality-management/overview/overview.html, accessed 17 August 2007

ISO В– International Organization for Standardization

http://www.iso.org/iso/en/iso9000-14000/understand/selection_use/examplesofiso9000.html, accessed 17 August 2007

Wikipedia В– the free encyclopedia (2007a):

http://en.wikipedia.org/wiki/Total_Quality_Management, accessed 17 August 2007

http://en.wikipedia.org/wiki/Quality_management_system, accessed 30 August 2007

http://en.wikipedia.org/wiki/Quality_management, accessed 30 August 2007

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