ISO 9000 standards and Deming's 14 principles of quality management

Management and Control of Quality

The ISO 9000 standards cover the quality management systems of a company and is aimed at helping organizations to meet their customers' needs and the needs of other stakeholders as related to quality. The fundamentals of this standard are based on eight (8) key management structures. From the visit of the Independent Association of Accredited Registrars, which contains a database of ISO 9000 registered companies, it is evident is that the number of registered companies is very high -- more than 48,000 companies. Sixteen (16) registrars registered on the website have issued between 8,000 and 22 certifications. This means that the number of companies that are certified is very high suggesting that they deem the ISO 9000 certification as prestigious and an important tool to create a unique selling point for the companies.

When the number of registered companies is analyzed by country, it is seen that the United States has the largest number of companies -- 21,000. ISO 9000 certification is widespread in the U.S. more than any other country in the world. The U.S.A. is followed by Japan, which has 3,500 registered companies. From the list of countries, it can be see that the database is not cleaned because the United States is listed as United States, the U.S.A., and the Unites States as three different countries and China is listed as People's Republic of China, P.R. Of China, People Republic of China, R.O.C, and Peoples Republic of China as four different countries.

There are other countries with a significant number of companies certified such as Korea with 1,700 companies, India with 1,695, Brazil with 1,100 companies, Canada, Mexico, and Italy with slightly over 800 countries each and other such as the UK with 180 companies, UAE with 119 companies, and other such as Gabon, Togo, Morocco, Myanmar, etc. with 1 company registered.

Real world assignment

Below is a questionnaire to determine the degree to which an organization follows the 14 principles of Deming. The questions have been developed by reading through the Deming Chain Reaction and the 14 major principles that Deming posits in his discussion. The questions focus on understanding how each company fits into the 14 principles that Deming presents. The 14 main principles mentioned by Deming are:

1. creating and publishing of a quality statement by the company

2. learning the company's philosophy

3. understanding the importance of inspection

4. awarding business based on quality and not just cost

5. improving the production system constantly

6. integrating training to the business activities

7. integrating accountability in leadership

8. driving out fear and creating trust

9. optimizing operations

10. eliminating inefficiencies

11. eliminating quotas based on numbers

12. removing barriers that eliminate accountability

13. encouraging self-improvement and education

14. taking actions towards transformation

Questionnaire

Company name:

Address:

Do you consider yourself to have a quality management system in place?

Yes

No

Is the quality management system in the company's vision?

Yes ? No ? Not applicable

Who is the company's quality leader or key contact?

Email:

Phone no.:

Does your company's quality management contact report to the company's management?

Yes

No

Not Applicable

How often do you check the effectiveness of your quality management system using internal audits?

Weekly

Monthly

Quarterly

Half-yearly ? Yearly

Never

Are the results of these audits clearly reported and documented?

Yes

No

Suppliers

Do your company's suppliers have a quality management system?

Yes ? No ? Some

Do you have documented procedures for reviewing contract with suppliers?

Yes

No

Partially

What requirements do these contract review procedures adequately define? (Tick all that apply)

Price

Quality standards

Capability to deliver

Payment

Termination of contract

Corrective action/penalties

Other, please specify

What is more important to the company as related to suppliers? (Choose one)

Price

Quality standards

Capability to deliver

How do you check supplied materials against quality-related standards upon receipt?

No, we don't check

At random

Systematically

Other, please describe

Are the procedures used to check supplied materials clearly documented and employees trained to understand them?

Yes

No

Not applicable

Are the results of these goods checks documented?

Yes

No

Not applicable

How regularly are the machines and equipment used to test supplied materials checked and maintained?

Weekly ? Monthly

Quarterly

Half-yearly ? Yearly

Ad hoc ? Never

Production processes

Are the company's production processes in writing?

Yes

No

Partially

Are all material in the production process clearly identified -- supplied goods, finished goods, extras for repair, etc.

Yes

No

Partially

Are defective parts or goods clearly marked?

Yes

No

Partially

Can finished goods be traced back to origin?

Yes

No

Partially

How do you check finished goods against quality-related standards?

No, we don't check

At random

Systematically

Other, please describe

Do the relevant employees know the instructions of these tests on finished goods?

Yes

No

Partially

Are the results of these tests documented?

Yes

No

Partially

Is it guaranteed that customers never receive defective goods?

Yes ? No

Partially

Is there a laid down process in case a customer receives defective goods?

Yes

No

Partially

Do all company employees know this process?

Yes

No

Partially

How regularly are the machines and equipment used to test finished goods checked and maintained?

Weekly ? Monthly

Quarterly

Half-yearly ? Yearly

Ad hoc ? Never

Toyota case study

What can nonmanufacturing companies learn and apply from Toyota's philosophy and practices?

There are many key learnings that nonmanufacturing companies can draw from Toyota's main philosophies and practices. The first is that management decisions should be based on long-term philosophies and values that the company holds even if it puts short-term goals at risk. For education and government institutions, they should develop a mission and vision statement that guides management decisions even if in the short-term they are not favorable. These may include activities such as reducing the workforce based on performance to only retain those performing at minimum acceptable levels, or optimizing assets e.g. increasing or reducing asset base for future productivity.

A second key learning is that these organization should create a continuous processes to evaluate their activities in order to bring problems to the surface and tackle them at the right time possible. This may require the organization to invest time and money into ensuring their employees are challenged to use their creativity towards the success of the company. This culture of continuous improvement may be difficult to build, especially in government and education institutions. However, there are many benefits of this culture including better and optimal utilization of resources. Education and government institutions can create a continuous change process by ensuring managers act as change agents and include their employees in the change process by allowing them to give opinion and using these to drive change.

The third lesson is that any company or organization should respect and honor their extended network of suppliers, partners, and competitors. They should challenge this network to improve their activities in order to drive sustainable growth. In education and government, the key lesson is for them to find their network of partners and suppliers and challenge them to improve their processes. For example, the government can challenge their suppliers to provide quality materials for building and construction projects or face dire consequences of supplying low standard material. This kind of decision will drive exceptional standards within the government and ensure that the change is replicated to other networks in the future.