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TOTAL QUALITY MANAGEMENT & INTERNATIONAL ORGANIZATION FOR STANDARDIZATION (ISO-9000).
Term Paper ID:24197
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Essay Subject:
Defines & compares goals, theories, advantages, drawbacks & futures of two approaches to management & quality assurance.... More...
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8 Pages / 1800 Words
7 sources, 9 Citations,
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Paper Abstract:
Defines & compares goals, theories, advantages, drawbacks & futures of two approaches to management & quality assurance.
Paper Introduction:
Introduction
Quality has become an important issue for companies, and in today's global market, it is no surprise that quality management has taken on global ramifications. Despite the recognition that quality is an important issue for companies, there are no truly international standards which seek to define and establish quality measurements. Two very different approaches, Total Quality Management (TQM) and standards developed by the International Organization for Standardization (ISO) have evolved in recent decades. TQM grew out of Japanese approaches to quality management and has been adopted largely in the United States; standards developed by ISO have been largely adopted in Europe. This research examines the different approaches to quality management between the United States and Europe, with an emphasis on the difference
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Companies which have implemented TQMsuccessfully now find that they must document that success if they are toreceive ISO-9 certification; that certification is becoming moreimportant in today's global marketplace as companies from various countriescompete against each other for customers on an international level.[8] At the same time, companies which have adopted ISO-9 processes arefinding that the international standards do not provide them with acomprehensive quality plan that addresses the unique needs of quality as itrelates to product. Disadvantages of TQM However, merely announcing that a company is putting a quality programinto place is not enough. The process is essentiallythe same for both small and large organizations, but because largeorganizations are more complex and pose more logistical considerations,problems can arise when a TQM program is implemented. Rogerson and A. "Pittsburgh Firms Adopt Europe's Quality Standards." Pittsburgh Business Times, 7 June 1993, 14-15.Crosby, Philip B. At this point, companies are recognizing that their bestoption is to combine these two approaches in order to realize the benefitof both and bring their quality programs to their full potential. BibliographyBates, Daniel. Periodic audits must be conducted tomaintain the rating, and this can take away from the company's overallfocus.[7] Comparison The primary difference between TQM and ISO-9 is the focus of thetwo approaches. TQM is driven by an internal desire to create qualityproducts, while ISO-9 is driven by an external need to conform toemerging international standards. Total Quality Management As its name suggests, Total Quality Management is an attempt tomaximize quality within and throughout an organization. "TQM and the Team Solution." Security Management, October 1994, 34.Milmo, Sean. Long-term, employees may leave the organization for companiesthat have TQM programs in place where the employees may feel that they areable to better contribute to the success of the organization. Employee involvement also requires that managers receive training inTQM, as well.[2] Not only do managers need to understand the principlesbehind TQM, but they also need to rethink their relationship withemployees. ISO-9 is a series of five standards developed in 1987 and revisedin 1994 by the International Organization for Standardization. Completeness. Teams almost always evolve in organizations that put TQM into action,and that can bring with it a number of other problems. H. Inthose organizations where information systems are already in place, it iscritical that they be used to their maximum ability to provide theinformation that the TQM system requires. [6]Daniel Bates, "Pittsburgh Firms Adopt Europe's Quality Standards,"Pittsburgh Business Times, 7 June 1993, 14. Crosby, Completeness, New York: Dutton, 1992, 13. If employee involvement groups are establishedbut not responded to, the company will not only not accomplish its qualitygoals, but it will do damage to the morale of the organization as a whole. D. The limitation of ISO-9 is that it focuses on process over results;companies are assured that ISO-9 compliant organizations meet the ISOstandards, but they are not assured of the appropriateness of the finalproduct to their environment. This should be reflected in thedevelopment of a mission statement for the company as a whole, andsupported by mission statements for various departments and divisions.This commitment needs to be augmented by providing the necessary resourcesto implement a quality program. If the documentation is filled outcorrectly and an internal audit verifies that the other requirements of ISO-9 are being met, the system can be said to be in compliance. However,the end result of the system, the product which is actually manufactured,may not meet the needs of the market or the customer, which reflects poorquality in the long run.[6] Another drawback to ISO-9 is that it can create a bureaucracy inorder for companies to remain in compliance with new standards. In small organizations, gettingall employees to be involved in the process can be accomplished throughinternal communications and training programs. [4] ISO-9 is a series of standards and guidelines which outlines theelements of a quality system: the plans, responsibilities, procedures andresources that must be in place to consistently satisfy customerrequirements. Acompany might announce a TQM program at a stockholders' meeting, forexample, in order to curry favor with the investment community. The end result isthat a customer purchasing from an ISO-9 compliant company understandsthe procedures that the company uses to produce their product. New York: Jossey-Bass, 1993.van der Wiele, A., et al. From thisstandpoint, it may be better to have no TQM program at all rather than haveone which is not fully supported by management. Effective TQM programs will have a long-termeffect on the way that the organization does business. Williamson, J. The efforts in the United States have been largelyenterprise-based with little or no effort made to standardize procedures.Instead, the emphasis has been on improving quality at a single company,and that quality improvement is able to be measured quantitatively.European companies, on the other hand, have focused on creating standardsso that companies which are in compliance follow a set of rules andregulations which documents their quality processes. Introduction Quality has become an important issue for companies, and in today'sglobal market, it is no surprise that quality management has taken onglobal ramifications. This goes beyond merelyreporting the number of defects; instead, creative and imaginativesolutions to each department's problems should be developed to ensure thatthe TQM process receives the maximum support from this department. TQManager. Vella. This avoids the problems of suppliers fromdifferent countries and different industries having different systems,different quality criteria, and different results. Customers of TQM organizations, on the otherhand, may find that they experience a higher level of product quality, butthis may be difficult to quantify since the documentation which supportsthat quality is not subject to independent review or authorization. Since TQM does not provide forinternational standards, and since ISO-9 does not necessarily includecomprehensive strategies for achieving quality, the combination of the twomakes sense for most companies who compete in the international arena andwho are concerned with improving their quality program. Because of this, some ISO-9 compliant companies arenow merging their ISO-9 programs with TQM programs in order to realizethe full benefit of both.[9] As companies continue to compete on an international level, and as theemphasis on quality increases rather than decreases, it is likely that agrowing number of companies will merge ISO-9 with TQM in order to takeadvantage of the benefits of both. TQM grew out of Japanese approaches to quality management and hasbeen adopted largely in the United States; standards developed by ISO havebeen largely adopted in Europe. If there is not careful monitoring of thesituation, employees may find that they are going from one team meeting tothe next and that the time they have to put the TQM procedures intopractice diminishes. It requires thatvarious departments be seen as "internal" customers as well as consideringthe needs and requirements of external customers (the company's traditionalcustomers). "Quality System Auditors' Attitudes and Methods." International Journal of Quality & Reliability Management, November 1996, 39-52.----------------------- [1]Philip B. [5]Sean Milmo, "Beyond ISO: European Chemical Manufacturers areIncreasingly Seeing the ISO Process as Only the First Step TowardImprovement," Chemical Marketing Reporter, 1 April 1995, SR18. An effective quality management program begins with a commitment fromthe top level of the organization that quality management will become anoverriding philosophy of the organization. Since allareas of a company's operations are included (from accounting to sales andmanufacturing), the task of monitoring compliance to ISO-9 standards andremaining current on new regulations can be daunting and require asubstantial commitment of resources. TQM is focused on product while ISO-9 is focused on process. Schmidt, TQManager, New York: Jossey-Bass, 1993, 41. ISO-9 gives a common "language" to customersand vendors in terms of the quality programs that they encounter. [3]John Glorioso, "TQM and the Team Solution," Security Management,October 1994, 34. [8]Bates, 15. This is because TQM does not require that any outside standardsbe met. The primary strength of the ISOstandards is the increasing acceptability by nations throughout the world.Customers which select companies who have adopted ISO-9 standards areassured that their suppliers use a quality system which conforms tofundamental requirements. van der Wiele, et al, "Self-Assessment: A Study of Progress inEurope's Leading Organizations in Quality Management Practices,"International Journal of Quality and Reliability Management, January 1996,84. By combining techniques such as just-in-time inventory (JIT)control, quality circles (QC) and other innovative management approaches,the goal is to maximize productivity and bring defects to zero. This can cause problems since the overall qualitysuffers as a result.[3] Another problem that can arise with TQM is that the organization maynot be as committed as necessary in order for the program to work. The ISO isbased in Geneva, and has members from over 2 countries who are trying toestablish common standards for manufacturing, trade and communication as ameans of promoting the free flow of trade. Since TQM represents a major shift in theway that most companies do business, it is not an inexpensive process, noris it a short-term program. Small and largecompanies in the United States are beginning to build their qualityprograms around ISO-9 requirements, and companies in Europe have done sofor some time. [9]Milmo, SR18. Any TQM program requires the commitment of the highest levels of theorganization at the outset.[1] Without this commitment, the organizationcannot put the necessary resources into the TQM program, and the programwill be destined for failure. These resources can include trainingprograms, new equipment, and a shift in the relationship between employeesand managers in order to emphasize increased employee involvement. Because TQM encompasses the entire organization, it requires that allemployees be committed to the TQM process. However,this approach does not directly address improving quality on a companybasis, but instead focuses on standardizing processes across an industry oreven a region. "Self-Assessment: A Study of Progress in Europe's Leading Organizations in Quality Management Practices." International Journal of Quality and Reliability Management, January 1996, 84-1 4.Williamson, A., J. Toleranceof defects becomes very low since each step in the manufacturing or serviceprocess is dependent on the step before with little or no room for delay orerror. The standards include four essential requirements: adetailed description of the quality system; an understanding by eachemployee of the requirements along with a commitment to comply with them;constant monitoring through auditing by both internal and externalauditors; and, routine adjustments and updating to reflect the changingrequirements of customers.[5] Disadvantages of ISO-9 The ISO-9 approach places a large emphasis on the documentation ofprocedures rather than on the verification of those procedures as being thebest way to produce a product. "Beyond ISO: European Chemical Manufacturers are Increasingly Seeing the ISO Process as Only the First Step Toward Improvement." Chemical Marketing Reporter, 1 April 1995, SR18.Schmidt, Warren H. This research examines the differentapproaches to quality management between the United States and Europe, withan emphasis on the differences between TQM and ISO techniques. Vella, "Quality SystemAuditors' Attitudes and Methods," International Journal of Quality &Reliability Management, November 1996, 39. On the other hand, a company which implements ISO-9 will havesimilar quality programs as any other company which is ISO-9 compliant.This makes the ISO-9 approach attractive to companies which need to havesources from different countries or industries, or which sell to customersin more than one country. ISO-9 The quality management and quality assurance standards which compriseISO-9 (the ISO standards which apply to manufacturers) are becoming moreaccepted on an international level than in years past. The Future of TQM and ISO-9 Increasingly, companies are recognizing that neither TQM nor ISO-9 can meet all of their quality issues. If thisannouncement is not followed up with a strong program for how the programwill be implemented, outside and inside stakeholders will be disappointed.In the case of employees, there is likely to be a loss of morale asemployees witness a program that is left to falter without management'ssupport. [7]A. Teams can take several forms, and employees may serveon more than one team. H. Rogerson and A. A company which implements a TQM program is likely to have a verydifferent approach to quality and the documentation which supports thatprogram than one of its competitors, or a company in an entirely differentindustry. Two very differentapproaches, Total Quality Management (TQM) and standards developed by theInternational Organization for Standardization (ISO) have evolved in recentdecades. D. As a result, the entire organization is brought into the TQMprocess, from procurement through manufacturing and including accounting. New York: Dutton, 1992.Glorioso, John. Instead of imposing their will and ideas on employees, managersneed to listen to the suggestions of their employees on how and whereimprovements can be made. Conclusion Companies in the United States have taken a different route towardimproving their quality processes in recent years when compared tocompanies in Europe. [2]Warren H. [4]A. It is this aspect of TQM which is critical tothe success of the program. Despite the recognition that quality is an importantissue for companies, there are no truly international standards which seekto define and establish quality measurements. The commitment that is so important can take theform of training, which can be handled through the human resourcedepartment, or it may require the implementation of a computer system. If an organizationdoes not implement careful controls, it is possible for members to spendtoo much time and resources dedicated to the process of quality rather thanto quality itself.
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