Quality Management

Systems and
Standardization

Dr. Maricel Correa Galang

 THE CONCEPT OF SYSTEM

In recent years the term ‘system’ in TQM has

become closely associated with documenting
internal organizational processes which are
repeatedly performed in such a way as to gain
certification from an external validating body. Here
we refer to such ‘systems’ as ISO 9000 and BS
5750. But the term ‘system’ has another broader
connotation, a connotation which found favor during
the development of TQM. It is upon ‘system’ in this
wider, original meaning that emphasis is now placed.
Kanji et al. (1993)

Suggested that the origin of a system

approach can be traced to the analogy drawn
between the human body and simple, human
society.
Talcott Parsons

Further developed in sociology about the

initial use made of the concept of system in
social anthropology.
 In its most basic form, a system can be portrayed thus:

Input–Throughput–Output (transformation)

⦿To add complexity, a feedback loop can be added

to link output to input and thus to reactivate the
system into another cycle.

⦿It is important to note that a system approach

contains a set of assumptions which are
inherent within the model.
 The assumptions can be stated as follows:
⦿ Number of more or less interrelated elements each of which
contributes to the maintenance of the total system.
⦿ Synergy, in that the totality of the system is greater than the
sum of its component elements.
⦿ Boundary, which delineated the system and which may be
open, partially open or closed in relation to exchanges
between the system and its environment.
⦿ Sub-systems, comprising interrelations between particular
elements within the total system and which themselves have
the characteristics of a system.
⦿ Flow or process throughout the system.

⦿ Feedback, which serves to keep the system in a state of

dynamic equilibrium with respect to its environment.
 The system approach in this wider, original sense and its
application to the productive process can, e.g. be seen in
Deming’s work (1986)

It is feasible to contend that it was through the utilization of a

system model that Deming’s contribution to the development of
TQM was born and permitted the delineation of the Deming Cycle
of ‘PLAN, DO, CHECK, ACT’.
 QUALITY MANAGEMENT SYSTEMS

The following is offered as one way in which that might be

brought to fruition. Some explanation is required of the terms
used in the above model.

⦿ Vision
Refers to the future desired state, the situation which is
being sought, to which the organization and its personnel
are committed. It provides a central focus against which
the managerial process of planning, leading, organizing
and controlling can be coordinated.
⦿Mission
Represents a series of statements of discrete
objectives, allied to vision, the attainment of all of
which will ensure the attainment of the future
desired state which is itself the vision.

⦿Strategy

Comprises the sequencing and added specificity of

the mission statements to provide a set of objectives
which the organization has pledged itself to attain.
⦿Values
Serve as a source of unity and cohesion between
the members of the organization and also serve to
ensure congruence between organizational actions
and external customer demands and expectations.

⦿Key issues
These are issues which must be addressed in pursuit
of the quality which is demanded by customers to meet
their needs and expectations.
Fundamentals of Total Quality Management
 The understanding of quality systems depends on two areas of thinking:

1. The understanding of Total Quality

Management

2. The general understanding of system.

Dr. Deming (1986, 1993)
Advocating very strongly the concept of ‘profound
knowledge’ which shared the vision of system concept.
Senge (1991)
- Advocated the development of learning organizations.
According to him, system thinking plays a very important role in
creating a learning organization.
- Discussed a number of systems in order to help the readers
understand the complexity of the system that exists in real life.

- Developed a learning organization requires not only human mastery,

teamwork, shared vision and image building, but also system thinking.

According to us, an organization is a system, the goal of which is to

create value added activities for both internal and external customers.
 JOHARRY’S NEW WINDOW ON STANDARDIZATION AND CAUSES OF QUALITY
FAILURES

Joharry’s ‘new window’ is a diagram for classification of

failures and causes of failures. The diagram was developed in a
manufacturing company in Japan.
The conclusions were as follows:

1. Standardization is the basis of continuous improvements.

2. Standardization only is not sufficient.
3. Communication and motivation is the basis for
everybody to practice the standardized methods .
4. There is no reason to try to find better methods before the
existing know-how is being used by everybody it concerns.
 According to Fukuda (1983) the name Joharry is an
acronym made from the two names Joseph and Harry and
Joharry’s ‘window’ (the old window) was applied by Joseph Ruft
and Harry Ingram to describe the communication between two
persons (you and I).
Joharry’s window consists of four small windows:
1. The first ‘window’ (category I) refers to what both you and I know.

2. The second ‘window’ (category II) refers to what I know and

you do not know.

3. The third ‘window’ (category III) refers to

what you know and I do not know.
4. The fourth ‘window’ (category IV) refers to that
which neither knows.
Ruft and Ingram used this model to explain the internal
conditions of the mind and it is not difficult to apply the model
for describing the communication problems.
Joharry’s ‘new window’ is a further development of the ‘old window’
as the model now contains nine ‘windows’ or categories in total.
The following explanation of the model is given by
Fukuda (1983):

1. The different categories represent interrelationship of the

counterparts Section A and Section B.
2. In the ‘known-practiced’ column, the respective party already
knows the right methods to prevent defects and also executes
them correctly.
3. In the ‘known-unpracticed’ column, the respective party
knows the right methods but executes them
insufficiently or not at all.
4. In the ‘unknown’ column, the respective party does not
yet know the right methods to prevent defects.
 5. In category I, everyone in both parties knows and
correctly practices the best and most effective operation
known at any given time.
6. In category II, everyone in both parties is informed of the
standard operations but there is someone who does not practice
them correctly.
7. In category III, one party knows but the other party does not know
the right operations for preventing defects.
8. In category IV, no one in either party knows the right
techniques yet. The technical problems which cause
defects remain unsolved in this category.
Through the development and use of Joharry’s ‘new window’ it
was realized that all previous measures for preventing failures could
be explained as measures for transferring the categories II, III and IV
to category I.
 CEDAC
An abbreviation of the ‘Cause-and-Effect Diagram with
Addition of Cards’. The diagram is a further development of the
‘cause and effect diagram’ typically used in quality
improvements.
 The cause-and-effect diagram can be applied for analyzing
and thus for finding causes of quality defects or possible causes of
other incidents than quality failures, Through the construction of
the cause-and-effect diagram team members gain a deeper
understanding of the causes creating poor quality.

There are more problems when the diagram is going to

be used practically. Two of the main problems are:

1. Which causes are the main causes of failures and which

control methods (prevention methods) are the most efficient?

2. The diagram does not contain any direct information about the
methods t o be applied for controlling each single cause of
error.
 With respect to quality management systems, it is a very
important message that a vital method of improving every
company’s quality, productivity and thus competitiveness is to
improve communication and thus motivation within all
departments of the company.

What every manager should be sure of is that every

employee knows:
1. His or her own quality goals.
2. The causes of quality problems.
3. The necessary ‘countermeasures’, meaning the most efficient
prevention. The methods in item
4. Above are the ones to be standardized and these are the
methods which should form the backbone of the quality
system in the company.
 Standardization and Creativity

Standardization is misunderstood in many

companies and because of that we too often meet
objections towards it.
One of the objections is that standardization of work
will kill creativity. Creative people in sales and product
development especially use this argument. Another
objection is that preparing standards is a complicated
and difficult job and, at the end of the day, the standards
are often not adhered to by the people concerned.
 It is important to realize that standards may be set in
various ways but it is also important—and may be more
important—to realize that standards usually include the
following three items (Kondo, 1991):
1. The objective of the work: taking a production process as an
example, this includes the quality specifications or quality standards
for the intermediate or final products which must be made in the
process.

2. Constraints on carrying out the work: these consist of

restrictions which must be adhered to in performing the work;
items which ensure the safety of employees or assure product
quality are the most important of these.

3. The means and methods to be employed in performing

the work.
 According to Kondo (1991) therefore the
standardized means and methods in item 3. should be
divided into two types or two manuals:

1. Manual for beginners (novices)

- help newcomers in their understanding and training.

2. Manual for experienced workers

- to have an updated collection of best practices in all
areas of the company
 ISO 9000 AND BS 5750-A STEPPING STONE TO
TQM?

ISO—A QUICK FIX The ISO 9001 (BS 5750 part 1)

requirements represent 20 qualified questions put to the
company in order to determine the company’s ability to
control the specified quality agreed upon in a contract
situation. Provided that the buyer is capable of expressing
all.
As a consequence of the importance of the basis on
which a contract is made up and the faith in the quality
assurance of the other 19 ISO 9001 requirements, the
ISO people’ are not necessarily interested in such vital
areas as:
• Vision and strategies •Continuous improvement
• Sales and marketing activities • Technology
• Business ethics
•Customer satisfaction
• Impact on society
•Management accou-
ting

• Company culture and

employee satisfaction
We must admit that we profess the mere ISO
certification process is recognized as a means of
standardization and this opinion is based especially on
the following two facts:

1. It is allowable to use the ISO 9000 and the result of a

certification in the best possible way.

2. A certification can be an excellent starting point for the support

of a disciplined effort to get the best practice standardized as
the foundation and necessary condition for continuous
improvements.
Besides this disciplined effort to attain the perhaps
much-needed standards demanded by an ISO
certification and which we consider the most important
positive element of a certification, we should like also to
emphasize other elements which are considered positive
by many companies:
• Uniform criteria for external assessment of the quality
management system of a company.
• A third party certification may often result in a heavy decrease
of second party audit.
• A third party certification may often result in a heavy decrease
of second party audit.
ISO 9000—A BARRIER TOWARDS NEW THINKING
AND IMPROVEMENTS?
Since the ISO 9000 series first appeared in 1987, a rigid debate
for and against ISO has been carried on.

Sympathizers of ISO are often people who have carried through

a certification process and the opponents on the other side are
people who have never been involved in a certification process.
People in this category can be those company owners who prefer to
go for the European Quality Award, it can be TQM experts, TQM
consultants or just people who doubt the excellence of the ISO
9000.
Louis Printz
A professor at the Aarhus School of Business, Denmark, in
which he—under the headline ‘Highly Dangerous Medicine’—
expresses the following opinions:

• ISO is gradually developing to become patented medicine for

leaders and specialists who do not know the real requirements of a
company.

• Nobody has, for instance, criticized the concept for not taking
into consideration the company’s place in the right market.

• Today the concept is, as a rule, used uncritically without any

explanation that it certainly also has its limitations.
• ISO is only a single medicine in the company’s cabinet and it
should be used together with other tools in the correct order and
in the right dosage to have the maximum effect.

• ISO is easily applied and managed to create discipline in the

production process without any involvement by the management
worth mentioning.
• At the same time an organization is created in which necessary
alterations at a later stage will be both costly and difficult to make.

• It is not only a question of the quality of a product.

The essence of Professor Printz’s message is, in our

opinion, that the ISO 9000 is very appropriate for the
standardization process but the company will not make any
progress without relying on excellent leadership—that is what
we have named Total Quality Management.