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CHAPTER ONE
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quality or goodness of process and product is the overriding responsibility of everyone in any organization. The newest version of ISO 9000 includes additional measurements that weren t in the original plan, as well as the requirement for continual improvement. It has the following requirements: 4.0 Quality Management System
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General requirements Documentation requirements. General, quality manual, control of documents, control of records
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5.0 Management Responsibility
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Management commitment Customer focus Quality policy Planning. Quality objectives, quality management system planning Responsibility, authority, and communication. Responsibility and authority, management representative, internal communication Management review. General, review input, review output
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6.0 Resource Management
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General Provision of resources Human resources. General, competence, awareness and training, infrastructure, work environment
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7.0 Product Realization
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Planning of product realization Customer-related processes. Determination of requirements related to the product, review of requirements related to the product, customer communication
TRENDS IN PERFORMANCE MEASUREMENTS
Design and development. Planning, inputs, outputs, review, verification, validation, control of changes Purchasing. Purchasing process, purchasing information, verification of purchased product Production and service provision. Control of production and service provision, validation of processes for production and service operations, identification and traceability, customer property, preservation of product Control of monitoring and measuring devices
8.0 Measurement, Analysis, and Improvement
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General Monitoring and measurement. Customer satisfaction, internal audits, monitoring and measurement of processes, monitoring and measurement of product Control of nonconforming product Analysis of data Improvement. Continual improvement, corrective action, preventive action
As the list illustrates, the requirements are quite comprehensive. The ISO 9001:2000 system is based on process thinking: 1. 2. 3. 4. Plan for setup. Do for excellence. Check for verification. Act for improvement.
PROCESS THINKING
To perform well, the process owner needs to control inputs, process activities, and the process output. Control means that the process owner understands the requirements as well as receiving, producing, or supplying according to the requirements. Verification methods must be implemented at various
CHAPTER ONE
stages of the process to ensure that requirements are being met. This might be done by controlling input material through supplier qualification, as well as monitoring the process by means of data analysis, inspection, tests, and measurements. A corrective action is initiated if the verification shows that the requirements are not being met. A business benefits from consistency of operations once the business infrastructure is established using the ISO 9001 quality management system. However, even with an ISO 9001 system, the business will operate at below desired performance levels if the processes are not optimized.
MALCOLM BALDRIGE NATIONAL QUALITY AWARD GUIDELINES
When the ISO 9000 quality management system was launched in the United States in 1987, the U.S. Congress established the Malcolm Baldrige National Quality Award to improve business performance. The resulting MBNQA Criteria for Performance Excellence (also known as the Baldrige Criteria) provided a system for managing process performance. The first Baldrige award went to Motorola, where I had an opportunity to contribute to the quality systems while working with the late Bill Smith. The purpose of the Baldrige Criteria was to accelerate the rate of improvement and innovation. The award criteria provided a performance framework based on measures of leadership, customer information, operations, human resources, and finances. Studies showed that organizations implementing systems based on the award guidelines outperformed their counterparts in value creation, stock performance, and market leadership. With worldwide acceptance, the Baldrige Criteria raised awareness of customer satisfaction, leadership, and information management. The Baldrige Criteria were based on global best practices. For example, the leadership category was created based on behaviors and practices deployed by leaders such as Bob Galvin, then CEO of Motorola. Leadership included definition of a vision, communication with employees, community
TRENDS IN PERFORMANCE MEASUREMENTS
service, public responsibility beyond the organization, and constancy of purpose. The Baldrige Criteria provide a role model for companies to achieve superior performance, while ISO 9000 provides a framework for an organization to achieve good results consistently. The Baldrige Criteria highlight the following aspects of business performance:
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