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Issue 2001/ 5

Other Approaches to Quality Management

Oleg Zakabunin
Management consultant Social Economic Agency Klaipeda
agentura@takas.lt

During the time when Quality Management and Assurance Standards (Series ISO 9000) for output production (service rendering) were in force, the year of 1987 was the start when the approach to these Standards changed, and the number of skeptics for implementation of business management schemes recognised by everyone became rather reduced. According to our data there are more than 500 companies which have implemented such quality assurance systems in the Baltic States, and more than 700 ones in Russia.In 1997 the International Organisation of Standardisation made a research to find out if the Standards had justified to the understanding and expectations of their users. The result of the research was a new version of standards (EN ISO 9000:2000), confirming the standards and requirements for companies and organisations aspiring to belong to “the club” of a cultured approach to business organisation”. “A club membership card”, in its turn, is a quality assurance system, which REALLY OPERATES as well as a certificate, which is issued and confirmed by independent certifying organisation.
The main differences between the old version of 1994 and new approaches to quality assurance systems are as follows:

Formal approach

EN ISO 9000:2000 series of standards decreased up to four sets:
EN ISO 9000:2000 - Quality Management and Assurance Systems. Basics and Determinations.
EN ISO 9001:2000 - Quality Management and Assurance Systems. Requirements.
EN ISO 9004:2000 - Quality Management and Assurance Systems. Recommendations for Their Improvement.
EN ISO 19011 - Recommendations for Audit of Quality and/or Ecology Means Control Systems (provided for publication in 2002).
The Standard is divided into four sections: management responsibility; management of resources; output production and realization; measurement, analysis and improvement.
Certification of the quality assurance system uses the standard EN ISO 9001:2000, thus companies certified their systems according to the old version (ISO 9001:1994) will be forced to make changes and to re-certify by the end of 2002.
The language of the standards has simplified.
These series is maximally coordinated with the Standard EN ISO 14000 of Ecology Measures Control System.
The standards require that the organisation would have only six compulsory documentation procedures, which would be different from the former one when it was necessary to define the execution of twenty requirements.

Pithy approach

There are a lot of essential changes, however they may be combined into four main spheres:

Procedure interpretation.
The procedure interpretation (or engineering as it is often called) appeared in the management and assurance theory in 1950s.
It is noted in the standards as a compulsory one in quality management. That is, any firm or organisation may and shall be interpreted as a set of interrelating procedures.
Every procedure is a sequence of one or another business control, management or organisation operations, starting with the acceptance of an application letter, analysis of client requests, production, delivery, sale, further servicing, etc. of the good (service).
Every procedure is suggested to determine so called input requirements and the output result. That is, every process is pragmatic stages of value, price addition to the business, consumer and society.

Management responsibility
The responsibility of the direction of a company (an organisation) for all aspects of the quality assurance (management) system is especially emphasised. It must demonstrate their commitment for creation, maintenance and analysis of the quality system, providing its possibilities and constant improvement of the system, subsequent guarantee of necessary resources, inspiration of personnel to improve services and output production. However, “commitment demonstration” is rather more compulsory for the representatives of audit organisations than the heads and personnel of that organisation.

Meeting consumers (clients) requirements
The context of the Standard emphasises the requirement for better orientation of clients and consumers of production or services.
It is a must not to ascertain the demands of clients only, but also to provide for changes of such demands according to the expectations of clients. And they must be transformed into goals and tasks solved by quality system.
There will be a necessity to found and set particular (supplementary) communicative forms of work with clients confirming the fact that their requirements are considered and they are satisfied.
The organisation will have to observe how the requirements of clients are met, to learn to set the level of requirement satisfaction and to take all the measures for avoiding any misunderstandings.

The new version of the standards reveals the fundamental cycle of Shucahrt - Deming which seeks for a constant improvement of management systems: PLAN-DO-CHECK-ACT (improve).
The situation of the Baltic States in the transit sector, in our opinion, may be described as the following: over 80 companies started the implementation of quality assurance systems since foreign countries, mostly European, as well as partners and clients press them. During that time the heads of organisations started to understand better the importance of quality assurance systems. The certificate often ensures extra income because it attracts new clients. In other words, the idea, that quality assurance systems are not only the goal, but a tool for pursuing the object, is more and more appreciated by business structures.
Negative aspects must be marked, too. There occurs devaluation of certain approach to quality management systems. It is much more difficult to maintain a quality level than to reach it. In most cases, these difficulties are connected with a great number of documents (according to the requirements of the old standards) must be prepared. Frequently, a formal approach of independent certification organisations did not justify expectations of the heads of companies to receive extra income from external controls. However, this may be connected to the mistake of business heads revealed earlier during the designing quality assurance systems. It is not a secret that, frequently, as a QUALITY ASSURANCE SYSTEM there was its one element - a standard pack of documentation bound to the operating management structure - sold (and purchased), and then a part of financial means had to be allocated for unnecessary office-work. In the market there are still some recommendations “…to implement a quality assurance system for 500 bucks”. If there is a supply, therefore, there also may be a demand, consequently, disappointments in the future, too.
Continuing the subject of documentation as one of the most important stages of quality assurance system implementation certain ambiguity of the new standard should be noted.
First of all, it restricts the requirements set for the documentation and requires six compulsory procedures describing business processes, quality politics and quality management only.
In the second place, the requirements for business evidences - records of a quality assurance system - are not reduced. It will not be necessary to have “documents ensuring an effective planning, management and control of a process”. And the very processes necessary to be identified may amount up to 22 to 26. And these processes must be clear, coordinated well and interconnected. In other words, the extend of records and documentation quantity still stay as “a hard nut” for persons responsible for quality assurance and the zone of increased subjectivity for certifying companies.
However, new interpretations presented in the Standard ISO 9000 of the version of 2000 gives a possibility to change the logic of business organisation and management, may help in creating more advanced systems such as TQM - Total Quality Management and Business Excellence Model, as well.

  • The approach to the former standard versions and the requirements set for them can be read in the article of the same author published in the third issue of the magazine Sea of 2000.

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