Quality

Management System
BITS Pilani Mr. Prashant Bawa
Guest Faculty
Pilani Campus
 BITS Pilani
Pilani Campus

QM ZG524
QUALITY MANAGEMENT SYSTEM
LECTURE NO: 4
Quality Management Principles
(QMP)

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Quality Management Principles (QMP)

What are the 7 QMP’s

– What

– How

– Key Benefits

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Introduction

• The Quality Management Principles (QMPs) can be used as

a foundation to guide an organization’s performance
improvement.

• These are timeless ideas which will help you align your
organization with all of your stakeholders: customers,
suppliers & employees.

• Here is a summary of the 7 Quality Principles, along with

some supporting information on how to apply it to your
organization (ISO Website has more detailed version).

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Quality Management Principles
The QMPs forms a basis to guide an organization’s performance improvement.

These ideas help align the organization with all of the stakeholders:
- customers, suppliers & employees.

ISO 9000: 2015 has defined QMPs in Clause 2.3

1.Customer Focus
These principles form the
2.Leadership CONTEXT of how to
3.Engagement Of People interpret the SECTIONS of
4.Process Approach the Standard. Methods may
5.Improvement change or evolve, but
6.Evidence based Decision Making principles do not.
7.Relationship Management

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Customer Focus
What this means:
• Understand the needs of current and future customers
• Meet all customer requirements
• Strive to exceed customer expectations.
How do I do it ?
• Recognize that survival is based on dependence upon the customer
• Align targets set in your planning to address customer changes
• Target customer perceptions, current and future
• Formally review contracts and be realistic in your capabilities
• Record and analyse complaints and returns to determine gaps from those
commitments made
• Offer consumer value through preferred products and services
Key Benefits:
• Delighted customers and resulting in customer satisfaction and Loyalty
• Enhanced business share.
• Increased customer- base.
• Increased profitability.

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Leadership
What this means:
• Establish unity of purpose and direction for your organization by going
first through your Vision and Mission
• Set policy and objectives that inspire and challenge
• Establish your organization’s internal culture, in which employees are partners in
achieving the organization’s objectives.
How do I do it ?
• Set clear goals and objectives: have an organizational “compass”
• Share and Communicate
• Treat quality as strategic issue and identify the financial effects of failing to meet these
goals
• Provide human and physical resources so your organization can achieve its
objectives
• Coordinate lower-level objectives to align with top level so everyone is pulling in the
same direction
Key Benefits:
• Increased effectiveness and efficiency due to co-ordination of actions at all levels
• Improved communication due to participative management
• Delivery of desired results due to development and participation of people

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Engagement of People
What this means:
• Fully develop the abilities and competencies of your people
• Give people the freedom to use their abilities to achieve maximum benefit
How do I do it ?
• Maintain a high level of communication between leadership and employees
• Position your people in roles that match their abilities and competencies
• Integrate your human resources plan with your strategic business plan
• Conduct active and value-added training and process qualification activities
• Encourage employees to contribute to your organization’s improvement strategy
• Promote participation and empower people to take decision
• Align employees daily work tasks with the overall objectives of the organization.
Key Benefits:
• Improved understanding of company objectives
• Enhanced motivation and involvement of people in meeting the objectives
• Enhanced personal development , initiatives and creativity
• Increased trust, satisfaction and collaboration throughout the organization

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Process Approach

Already discussed

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Improvement
What this means:
• Make improvement a permanent objective for the organization
• Focus on improvement will lead to maintaining current levels of performance, react
to changes both internal and external and create new opportunities.
How do I do it ?
• Focus on process improvement to achieve business results
• Identify critical items and strategically allocate resources to improve what matters
• Provide resources to ensure that targets are met
• Develop and operate mature corrective action loops.
• Set new realistic goals once the targeted level is achieved
• Strive to achieve stretch improvement goals
• Seek to prevent defects, and to reduce variation and waste in supply chain
Key Benefits:
• Improved performance, customer satisfaction and meeting objectives
• Enhanced ability to react to internal and external risks and opportunities
• Innovative and learning organization

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Evidence Based Decision Making
What this means:
• Base decisions on logical analysis of objective data and information
• Quantify the business case for the action
How do I do it ?
• Focus on data such as audit results, performance reviews, corrective actions , and complaints to improve
customer satisfaction , and focus on internal metrics for internal customer satisfaction
• Ensure data to be reliable, accurate and recent
• Make data to be available to all as per need (Need to know basis)
• Observe short- and long-term trends and indicators of performance to minimize immediate issues and to
foresee risk
• Use data to continually improve your organization’s performance
Key Benefits:
• Improved decision making
• Improved operational effectiveness and efficiency
• Improved assessment of process performance and ability to achieve objectives

A very simple (but effective) case:

one company drastically reduced the amount of uneaten food in their canteen simply by weighing
and displaying everyday the weight of the uneaten food being wasted

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Relationship Management
What this means:
• Create value through mutual, beneficial, interdependent relationships with interested parties
How do I do it ?
• Determine relevant interested parties (such as suppliers, partners, customers, investors,
employees, and society as a whole) and their relationship with the organization
• Determine and prioritize interested party relationships that need to be managed
• Establish relationships that balance short-term gains with long-term considerations;
• Define and document requirements to be met by relevant interested parties and show clear linkage to end-
user requirements
• Evaluate interested parties ability to meet requirements and match the requirements according to
risk
• Work with interested parties to develop mutual trust ,respect and commitment to customer
satisfaction
• Integrate key elements of your organization’s QMS with interested parties’ quality improvement process.
Key Benefits:
• Enhanced overall company ‘s performance
• Capability to create value to customers
• Capability to manage risks and competition
• Stable supply chain resulting in consistent flow of products and services

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7 Principles at a glance

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PLAN – DO – CHECK - ACT
(PDCA)

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Shewhart Cycle/Deming Wheel

PDCA is a continuous improvement tool

A popular model for continuous improvement of processes,
products and services

DO
(Test)

PLAN CHECK
(What, Why?)
(Analyze)

ACT
(Implement)

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Shewhart Cycle/Deming Wheel
Walter Shewhart W. Edwards Deming
Discussed the concept of the Modified and popularized
continuous improvement cycle the Shewart cycle (PDCA)
in his 1939 book "Statistical to what is now referred to as
Method From the Viewpoint of the Deming Cycle (PDSA)
Quality Control”

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PDCA Origins
• The PDCA Cycle is also known as the Shewhart cycle and
the Deming Cycle.
• Dr Walter Shewhart of Bell Labs developed SQC and the
PDCA Cycle during the 1930s. He believed that the steps
ultimately led to quality improvement
• Dr W Edwards Deming, a student of Dr Shewhart, promoted
the PDCA cycle in the 1950s.
He modified PDCA to PDSA: Plan-Do-Study-Act Cycle
• But there was a Scientific Method similar to the PDCA
Cycle

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The Scientific Method

Galileo Galilei & Sir Francis Bacon are often credited with
the development of the “Scientific Method”

1. Define the question

2. Gather information
3. Form hypothesis
4. Perform an experiment and collect data
5. Analyse the resulting data
6. Draw conclusions (that serve as starting points for
the development of subsequent hypotheses
7. Publish results

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PDCA Plan
• Identify the problem to be examined
• Formulate a specific problem statement to
Identify The Problem clearly define the problem
(What?) • Set measurable and attainable goals
• Identify stakeholders and develop necessary
communication channels to communicate
and gain approval
• Divide overall system into individual processes -
map the process
Analyze The Problem • Brainstorm potential causes for the problem
(Why?) • Collect and analyze data to validate the root cause
• Formulate a hypothesis
• Verify or revise the original problem statement

• Direct observation of process

• Process mapping
• Cause and Effect diagrams
• Pareto analysis
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PDCA Do

• Establish experimental success criteria

Develop
• Design experiment to test hypothesis
Solutions • Gain stakeholder approval and support for
the chosen solution

Implement a • Implement the experiment/solution on a

Solution trial or pilot basis

• Design of Experiment (DOE)

• On job training
• Stakeholder management & communication

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PDCA Check

Evaluate • Gather/analyze data on the solution

the Results • Validate hypothesis

Achieve the • If YES go to act

Desired Goal • Else go to plan, revise
hypothesis/problem statement

• Direct observation of process

• Graphical analysis
• Control charts
• Key performance indicators

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PDCA Act

Implement The Full Scale • Identify systemic changes and training needs for
Solution full
• implementation
& • Plan ongoing monitoring of the solution
(Capitalize on New • Continuous improvement
Opportunities)
• Look other improvement opportunities

• Process mapping (new process)

• Standardization of work and process
• Visual management
• Error proofing
• Formal training

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PDCA - The Process Map

Plan

Modify Do
parameters

Check
Another problem
or improvement

No Achieved
goal?

Yes

Act

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PDCA Composition

Plan to improve your system / process / product

Do (make) changes designed to initially solve your problem on a
small / experimental scale
• This minimizes disruptions while testing to determine whether the plan
will have the intended effect
Check whether or not the desired results have been achieved on the small
/ experimental scale.
Act to implement the changes on a larger scale if the
experiment was successful
• Make the changes a routine part of the process
• Involve others affected by these changes – you may have already
involved them in the Plan-Do stages of the cycle

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The PDCA Tool

This can be used to manage processes and systems.

P Plan: set the objectives of the system and
processes to deliver results (“What to do”
and “how to do it”)
D Do: implement and control what was planned
C Check: monitor and measure processes and
results against policies, objectives and
requirements and report results
A Act: take actions to improve the performance
of processes

PDCA operates as a cycle of continual improvement, with

risk‐based thinking at each stage.

Refer to Appendix A of ISO/TC 176/SC 2/N1289 for more

details

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PDCA - SDCA

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Example 1

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Example 1

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Example 2

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Example 2

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Example 3

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Example : Survey at a Clinic
Plan
We want to implement a patient satisfaction survey.
The process must produce no less than 25 finished surveys per week
Steps to be executed:
The billing section will point the patient to a url on the bill & urge the patient to fill the online form
ASAP.
This will be attempted for a duration of 2 weeks.
Do (What did you see?)
The billing section performed the task effectively
We saw that the patient had different items to take care of
As per the billing staff, around 30% patients had any follow up questions.
Check (What is learnt? Was the measurement objective met?)
Only 3 surveys were received. The process did not meet the targets.
Act (What did you understand from this cycle?)
Patients did not want to be pestered at this point of the visit. They have
to be approached during another point in their visit.

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Example : WASHTA Case Study

Plan
A customer would spend 63 minutes at the MVD. This had to be reduced Analysts
observed the behaviour of customers and CSR & the documents
Steps to be undertaken
The Queueing process was re-designed
Some CSR would review the documents of the customers while they were in line
Do
The plan was implemented
Check (What is learnt? Was the measurement objective met?)
The .time came down to 23 minutes.
Act (What did you understand from this cycle?)
The process became the standard.

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TQM and PDCA

• TQM is a structured system for managing the quality of an

organizations’ products, processes & resources to satisfy its
customers and suppliers
• Its main objective is to attain & sustain customer satisfaction
through continuous improvement
• Accomplished through systematic methods for problem-
solving, breakthrough achievement, & standardization.

PDCA cycle is widely employed to implement TQM

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TQM – A Basic Model
• Organization reviews customer needs & determines if they are being
provided by the organization
• Organization plans activities needed (day-to-day and long- term) to
meet these needs
• Organization established and stabilizes processes necessary to
deliver products and services needed by customers
• Organization implements systems to further improve its
processes, products & services

The above steps constitute a cycle, & should be iterated

indefinitely so as to achieve continuous improvement

PDCA cycle is widely employed to implement TQM.

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PDCA Vs DMAIC

One difference between PDCA and DMAIC is the required

organization infrastructure required by DMAIC
• Steering committee, A champion & a Sponsor

PDCA is simpler to implement

DMAIC is a more detailed conception.

• It looks effective for solving big complex challenges
• Requires a Green Belt to lead

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 PDCA Vs DMAIC
PDCA DMAIC
Plan Detect an abnormality Define a problem Define
Do an RCA Sponsor and Champion schedule
Design countermeasures tollgates Establish
CTQs
Prepare preliminary problem
statement
Choose baseline metrics Measure
Use Pareto Analysis to identify
areas of opportunities
Perform RCA and Hypothesis Analyze
Testing
Do Implement countermeasures Brainstorm solutions Improve
Test to determine if
countermeasures deliver
expected results
Check Review results of experiments Review & report results. Implement Control
Act Adjust countermeasures to & adjust / tweak so root causes are more
better address root causes specifically addresses

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PDCA Vs Kaizen
•The PDCA process supports both the principles and
practice of continuous improvement and Kaizen.

•Kaizen focuses on applying small, daily changes

that result in major improvements over time.

• The PDCA Cycle provides a framework and

structure for identifying improvement
opportunities and evaluating them objectively.

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PDCA Cycle – ISO 9001 : 2015

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