QUALITY MANAGEMENT PRINCIPLES

A quality management principle is a comprehensive and

fundamental rule or belief, for leading and operating an
organization, aimed at continually improving
performance over the long term by focusing on
customers while addressing the needs of all other
stakeholders.

• Principle 1: Customer focus

• Principle 2: Leadership
• Principle 3: Involvement of people
• Principle 4: Process approach
• Principle 5: System approach to management
• Principle 6: Continual improvement
• Principle 7: Factual approach to decision making
• Principle 8: Mutually beneficial supplier relationships
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 QUALITY MANAGEMENT PRINCIPLES
Principle 1: Customer focus

“Organizations depend on their customers and therefore should

understand current and future customer needs, meet customer
requirements and strive to exceed customer expectations”.

Applying the principle of customer-focused organization leads to the following actions:

• Research and understand customer needs and expectations.
• Ensure the objectives of the organization are linked to customer needs and
expectations.
• Communicate customer needs and expectations throughout the organization.
• Measure customer satisfaction and act on the results.
• Systematically manage customer relationships.
• Ensure a balanced approach between satisfying customers and other interested
parties (such as owners, employees, suppliers, financiers, local communities and
society as a whole).
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 QUALITY MANAGEMENT PRINCIPLES
Principle 1: Customer focus

WHO IS THE CUSTOMER?

External Customer – the one who uses the product or service, the one
who purchases the product or service, or the one who influences the
sale of the product or service.
Internal Customer – every person in a process is considered a customer
of the preceding operation. Each worker’s goal is to make sure that
quality meets the expectations of the next person.

Inputs from Outputs to

External Internal External
Customers Customers Customers

Customer/Supplier Chain 3
 QUALITY MANAGEMENT PRINCIPLES
Principle 1: Customer focus

Customer Perception of Quality

Factors that influenced purchases:

• Performance
It involves “fitness for use” a phrase that indicates that the product and
service is ready for the customer’s use at the time of sale.
• Features
Secondary characteristics of the product or service
• Service
An emphasis on customer service is emerging as a method for
organization to give the customer- added value. Customer service is an
intangible.
• Warranty
• Price
• Reputation 4
 QUALITY MANAGEMENT PRINCIPLES
Principle 1: Customer focus

FEEDBACK
Customer feedback is not a one-time effort; it is ongoing and active probing
of the customers’ mind. Feedback enables the organization to:
• Discover customer dissatisfaction
• Discover relative priorities of quality
• Compare performance with the competition
• Identify customers’ needs
• Determine opportunities for improvement

Tools:
• Comment card ;Customer questionnaire
• Focus groups ; Toll-free telephone numbers
• Customer visits ; Report card
• Internet and computers; Employee feedback
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Example of Feedback

CUSTOMER SURVEY RESULTS

    Overall Grade

    A B C D E

Game Day A. Parking 90 105 45 5 5

  B. Traffic 50 85 48 52 15

  C. Seating 45 30 115 35 25

  D. Entertainment 160 35 26 10 19

  E. Printed Programs 66 34 98 22 30

Tickets A. Pricing 105 104 16 15 10

  B. Season Ticket Plans 75 80 54 41 0

Concessions A. Prices 16 116 58 58 2

  B. Selection of Foods 155 60 24 11 0

  C. Speed of Service 35 45 46 48 76

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 QUALITY MANAGEMENT PRINCIPLES
Principle 1: Customer focus

Service Quality
Customer service is the set of activities an organization uses to win and
retain customer’s satisfaction. Elements of customer service are:

Organization
1. Identify each market segment
2. Write down the requirements
3. Communicate the requirements
4. Organize the processes
5. Organize physical spaces

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 QUALITY MANAGEMENT PRINCIPLES
Principle 1: Customer focus

Service Quality
Customer care
1. Meet the customers’ expectations
2. Get the customers’ point of view
3. Deliver what is promised
4. Make the customer feel valued
5. Respond to all complaints
6. Over-respond to the customers
7. Provide a clean and comfortable customer reception area.

Communication
1. Optimize the trade-off between time and personal attention.
2. Minimize the number of contact points
3. Provide pleasant, knowledgeable, enthusiastic employees
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4. Write documents in customer-friendly language.
 QUALITY MANAGEMENT PRINCIPLES
Principle 1: Customer focus

Service Quality
Front-line people
1. Hire people who like people.
2. Challenge them to develop better methods
3. Give them authority to solve problems
4. Serve them as internal customers
5. Be sure they are adequately trained
6. Recognize and reward performance

Leadership
1. Lead by example
2. Listen to the front-line people
3. Strive for continuous improvement

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 QUALITY MANAGEMENT PRINCIPLES
Principle 2: Leadership

“Leaders establish unity of purpose and direction of the organization.

Leaders should create and maintain the internal environment in which
people can become fully involved in achieving the organization's
objectives.”
Applying the principle of leadership typically leads to:
• Considering the needs of all interested parties including customers, owners,
employees, suppliers, financiers, local communities and society as a whole.
• Establishing a clear vision of the organization's future.
• Setting challenging quality goals and targets.
• Creating and sustaining shared values, fairness and ethical role models at all levels of
the organization.
• Establishing trust and eliminating fear.
• Providing people with the required resources, training and freedom to act with
responsibility and accountability.
• Inspiring, encouraging and recognizing people's contributions.
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 QUALITY MANAGEMENT PRINCIPLES
Principle 2: Leadership

Leadership Concepts
In order to become successful, leadership requires an intuitive understanding of
human nature- the basic needs, wants, and abilities of people. To be
effective, a leader understands that:
1. People, paradoxically, need security and independence at the same time.
2. People are sensitive to external rewards and punishments and yet are also
strongly self-motivated.
3. People like to hear a kind word of praise. Catch people doing something right,
so you can pat them on the back.
4. People can process only a few facts at a time; thus, a leader needs to keep
things simple.
5. People trust their gut reaction more than statistical data.
6. People distrust a leader’s rhetoric if the words are inconsistent with the
leader’s actions.

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 QUALITY MANAGEMENT PRINCIPLES
Principle 2: Leadership

7 Habits of Highly Effective People (by Stephen R. Covey)

1. Be proactive – proactive behavior is a product of conscious choice based on
values, rather than reactive behavior, which is based on feelings.
Reactive Proactive

There’s nothing I can do Let’s look at our alternatives

She makes me so mad I control my own feelings

I have to do that I will choose an approriate

response
I can’t I choose

I must I prefer

Things are getting worse What initiative can we use?

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 QUALITY MANAGEMENT PRINCIPLES
Principle 2: Leadership

7 Habits of Highly Effective People (by Stephen R. Covey)

2. Begin with the End in Mind – the most fundamental application of this habit is
to begin each day with an image, picture, or paradigm of the end of your life
as your frame of reference.
In order to begin with the end in mind, develop a personal philosophy or
creed. Start by considering examples below:
• Never compromise with honesty
• Remember the people involved
• Maintain a positive attitude
• Exercise daily
• Keep a sense of humor
• Do not fear mistakes
• Facilitate the success of subordinates
• Read a leadership book monthly

“ Leadership is doing the right things and management is doing things right” 13
BEGIN WITH AN END IN MIND

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BEGIN WITH AN END IN MIND

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 QUALITY MANAGEMENT PRINCIPLES
Principle 2: Leadership

7 Habits of Highly Effective People (by Stephen R. Covey)

3. Put First Things First
Activities necessary to be effective:
• Write down your key roles for the week
• List your objectives for each role using QII activities.
• Chedule time to comlete the objectives
• Adapt the weekly schedule to your daily activities

4. Think Win-Win – Win-Win is a fame of mind and heart that constantly seeks
mutual benefit in all human interactions.
Steps:
1. See the problem from other viewpoint
2. identify the key issues and concrns
3. determine the acceptable results
4. seek possible new options to achieve those results
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PUT FIRST THINGS FIRST

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PUT FIRST THINGS FIRST

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PUT FIRST THINGS FIRST

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THINK WIN-WIN

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 QUALITY MANAGEMENT PRINCIPLES
Principle 2: Leadership

7 Habits of Highly Effective People (by Stephen R. Covey)

5. Seek First to Understand, Then to be Understood

Emphatic Listening is the key to effcetive communication. It focuses on
learning how the other erson sees the world, how they feel.

6. Synergy
Synergy means that the whole is greater than the parts.
“Together, we can accomplish more than any of us can accomplish alone”

7. Sharpen the Saw (renewal)

Take time to sharpen the saw so it will cut faster.

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SEEK FIRST TO UNDERSTAND THEN TO
BE UNDERSTOOD

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SYNERGY
SYNERGY
SHARPEN THE SAW
 QUALITY MANAGEMENT PRINCIPLES
Principle 2: Leadership

Quality Statements

Vision Statement
is a short declaration of what an organization aspires to be tomorrow.

Mission Statement
answers the following questions: who we are, who are the customers, what
we do, and how we do it. It provides a clear statement of purpose for
employees, customers and suppliers.

Quality Policy Statement

The quality policy is a guide for everyone in the organization as to how they
should provide products and service to the customers.. It should be written by
a CEO with feedback from the work force and be approved by the quality
council.
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 QUALITY MANAGEMENT PRINCIPLES
Principle 3: Involvement of People

“People at all levels are the essence of an organization and their full
involvement enables their abilities to be used for the organization's
benefit.”
Applying the principle of involvement of people leads to the following actions by the
people:
• accepting ownership and responsibility to solve problems,
• actively seeking opportunities to make improvements,
• actively seeking opportunities to enhance their competencies, knowledge and
experience.
• freely sharing knowledge and experience in teams and groups,
• focusing on the creation of value for customers,
• being innovative and creative in furthering the organisations objectives,
• better representing the organization to customers, local communities and society at
large.
• deriving satisfaction from their work, and
• be enthusiastic and proud to be part of the organization. 27
INVOLVEMENT OF PEOPLE

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 QUALITY MANAGEMENT PRINCIPLES
Principle 4: Process Approach

“A desired result is achieved more efficiently when activities and related

resources are managed as a process.”
Applying the principle of process approach leads to the following actions:
• defining the process to achieve the desired result,
• identifying and measuring the inputs and outputs of the process,
• identifying the interfaces of the process with the functions of the organisation,
• evaluating possible risks, consequences and impacts of processes on customers,
suppliers and other stakeholders of the process,
• establishing clear responsibility, authority, and accountability for managing the
process,
• identifying the internal and external customers, suppliers and other stakeholders of
the process, and
• when designing processes, consideration is given to process steps, activities, flows,
control measures, training needs, equipment, methods, information, materials and
other resources to achieve the desired result. 29
PROCESS APPROACH

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 QUALITY MANAGEMENT PRINCIPLES
Principle 5: System Approach to Management

“Identifying, understanding and managing interrelated processes as a

system contributes to the organization's effectiveness and efficiency in
achieving its objectives.”
Applying the principle of system approach to management develops a:
• Structured system to achieve the organization's objectives in the most effective and
efficient way.
• More universal understanding of the interdependencies between the processes of the
system.
• Structured approach that harmonizes and integrates processes.
• Better understandings of the roles and responsibilities necessary for achieving
common objectives thereby reducing cross-functional barriers.
• More comprehensive understanding of organizational capabilities and establishing
resource constraints prior to action.
• Targeting and defining how specific activities within a system should operate.
• Continually improving the system through measurement and evaluation. 31
BOTTLENECK
 QUALITY MANAGEMENT PRINCIPLES
Principle 6: Continual Improvement

“Continual improvement of the organization's overall performance

should be a permanent objective of the organization.”

Applying the principle of continual improvement typically requires:

• Employment of a consistent organization-wide approach to continual improvement of
the organization's performance.
• Organized effort to provide people with training in the methods and tools of continual
improvement.
• The making of continual improvement of products, processes and systems an
objective for every individual in the organization.
• Formal establishment of goals to guide, and measures to track continual
improvement.
• Recognition and acknowledgement of individual and group improvements.

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 QUALITY MANAGEMENT PRINCIPLES
Principle 6: Continual Improvement
KAIZEN
Founded in 1985 by Masaaki Imai, Kaizen Institute (KI) which is a global
management that is recognized as the international leader in helping
companies implement Kaizen tools and strategies to secure a competitive
advantage within their own particular industries.

It means improvement, moreover it means an ongoing improvement involving

everyone, including both management and workers.

The KAIZEN philosophy assumes that our way of life – be it our working life,
our social life, or our home life --- deserves to be constantly improved.

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CONTINUOUS IMPROVEMENT
 QUALITY MANAGEMENT PRINCIPLES
Principle 6: Continual Improvement

KAIZEN

PRACTICES

 Customer orientation Kanban

 TQC Quality Improvement
 Robotics Just in Time
 QC Circles Zero defects
 Suggestion system Small group activities
 Automation Cooperative Labor
 Discipline in the workplace Management relations
 TPM Productivity improvement
 New product development
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 Forms of Muda

 Overproduction and Inventory, items not immediately needed

 Defective products requesting repair or scraping

 Motion; unnecessary movement and energy used to perform tasks

 Process imposing inefficient and/or unnecessary tasks, fail to

synchronize systems

 Idling; by excessive set-up or equipment breakdowns

 Transport, poor timing; too frequent or infrequent movement of goods

and deliveries.

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 Gemba

 GEMBA is a Japanese word meaning real place, where the real action takes
place.

 In business, GEMBA is where the value-adding activities to satisfy the client

are carried out.

 When defining Kaizen action plan, go to gemba first. Get a sense of the reality
at gemba, talk with gemba people.

 Kaizen activities can be carried out endlessly, but only Kaizen on "the real
place" is likely to yield some efficient improvement.

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 Poka–yoke

 Literally translated “foolproof”; it has come to mean a device or technique that

ensures the production of a good unit every time.
 Poka-Yoke or fool proof device are often small jigs or very simple, even
makeshift devices set up to avoid or detect errors.
 Some examples:
 Processed part cannot continue on conveyor unless a specific sensor, to
survey some operation, has not been activated.
 Jig system holds odd shaped parts.

 Pin system makes reverse tool setting impossible.

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 QUALITY MANAGEMENT PRINCIPLES
Principle 7: Factual Approach to Decision Making

“Effective decisions are based on the analysis of data and

information."

Applying the principle of factual approach to decision making:

• Ensures that data and information are sufficiently accurate and reliable.
• Makes data accessible to those who need it.
• Involves analyzing data and information using valid methods.
• Further ensures that decisions and actions taken are based on factual analysis,
balanced with experience and intuition.

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FACTUAL APPROACH TO
DECISION-MAKING
 QUALITY MANAGEMENT PRINCIPLES
Principle 8: Mutually Beneficial Supplier Relationships

“An organization and its suppliers are interdependent, and a mutually

beneficial relationship enhances the ability of both to create value."

Applying the principles of mutually beneficial supplier relationships creates

relationships that are focused on:

• Establishing relationships that balance short-term gains with long-term

considerations.
• Pooling of expertise and resources with supplier partners.
• Identifying and selecting key suppliers.
• Clear and open communication relative to issues and product direction.
• Sharing of information and future plans.
• Establishing joint development and improvement activities.
• Inspiring, encouraging and recognizing improvements and achievements by
suppliers.
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MUTUALLY BENEFICIAL SUPPLIER
RELATIONSHIP

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 QUALITY MANAGEMENT PRINCIPLES
Principle 8: Mutually Beneficial Supplier Relationships

Key Elements to a Partnering Relationship

1. Long-term commitment
Long-term commitment provides the needed environment for both
parties to work towards continuous improvement.

2. Trust
Trust enable the resources and knowledge of each partner to be
combined to eliminate adversarial relationship.

3. Shared Vision
Shared goals and objectives ensure a common direction and must
be aligned with each party’s mission.

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