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Author Topic:   ISO-TQM and Small Companies
qualityworld
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posted 30 March 2000 03:11 PM     Click Here to See the Profile for qualityworld   Click Here to Email qualityworld     Edit/Delete Message   Reply w/Quote
I am currently writing a dissertation where I am proposing that there are more immediate benefits to be had by smaller organisations implementing the requirements of ISO14001 and TQM first as opposed to a formal ISO9000 QMS. My argument is that environmental programmes which reduce energy and waste costs coupled with TQM tools and techniques will be of more use than a compliance driven ISO9000 system. I realise that there are market pressures on companies to adopt ISO9000 systems but I have read numerous reports which indicate that smaller companies with strong relationships both internally and externally find the formality of ISO9000 of less benefit than larger more hierarchical companies. What do the forum members think?

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Kevin Mader
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posted 30 March 2000 06:51 PM     Click Here to See the Profile for Kevin Mader   Click Here to Email Kevin Mader     Edit/Delete Message   Reply w/Quote
You may be right. However, I think that the key ingredient to your formula is TQM.

The TQM philosophy coupled with either ISO standard could produce very similar results. I believe that you may be right in assuming that 14000 would bring in aspects of the Communittee much sooner into the picture.

This question has me thinking about Don Winton's example of Circular vs. Linear thinking. ISO9000 always struck me as being more linear than the 14000 model. Aspects of the environment and communittee being included in the 14000 model lead me to believe that a more circular approach would be had in creating and implementing a TQM QS.

Regards,

Kevin

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Don Winton
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posted 31 March 2000 09:38 AM     Click Here to See the Profile for Don Winton   Click Here to Email Don Winton     Edit/Delete Message   Reply w/Quote
·I have read numerous reports which indicate that smaller companies with strong relationships both internally and externally find the formality of ISO9000 of less benefit than larger more hierarchical companies.

Whilst this may be true, I would suggest that those companies worried more about the letter of ISO 9000 than the intent. There is nothing in ISO 9000 that indicates that a formal structure is required, just a documented one. The organization is required to document its practices. Those practices, however, are entirely up to the organization in question.

This question has me thinking about Don Winton's example of Circular vs. Linear thinking.

That is part of my point. Organizations tend to read ISO 9000 and think the key to compliance is a rigid, top-heavy, bureaucratic system while the opposite is true. But, the key to an effective organization is quite the opposite. The ISO 9000 model coupled with the philosophy of TQM, if implemented correctly, is a more effective route.

Qualityworld, I have a few papers on TQM, ISO 9000 and other stuff at my site. Just click on my name below and let me know if any of it is useful.

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Andy Bassett
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From:Donegal Ireland
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posted 01 April 2000 04:15 AM     Click Here to See the Profile for Andy Bassett   Click Here to Email Andy Bassett     Edit/Delete Message   Reply w/Quote
Hello Qualityworld

Your question is does it make more sense to jump direct to 14000=TQM and avoid the ISO step?

First point is that with any implementation of a Quality Model you will get better results if you can also focus on the soft issues. (Bundled into a TQM programme if you will).

Secondly, i cant help but feel that their is a real-life issue here. The time and money needed to implement an ISO programme with commitment is 5 times smaller than the time and money needed to implement a programme without commitment (at least thats what i always tell the management of my customers).

So the question is "How much can your customers swallow in one go"?
Some companies may need a progressive approach to implementing any form of QMS s whilts more committed companies maybe able to go the whole hog in one go.

Regards

------------------
Andy B

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Alan Cotterell
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posted 02 April 2000 12:07 AM     Click Here to See the Profile for Alan Cotterell   Click Here to Email Alan Cotterell     Edit/Delete Message   Reply w/Quote
I think you may be right in implementing the environmental management system in conjunction with TQM first, in that you might achieve immediate returns through waste reduction. This would make the change more palatable to senior management. However if you really have the commitment of the CEO to introducing a documented management system and TQM, I would go for ISO9000 certification, as the major objective of your organisation is probably to make a profit by satisfying your customer needs. The ISO9000 system is directed at optimising supply of your product or service. I don't know about circular thinking, however I think you need to develop your mission and vision statement and policy manual for the major operational risk areas first (quality, safety, environment, security). Then choose where to start your implementation. I know what is meant by linear thinking, in respect of the quality system, however I believe lateral thinking is required and an appreciation of the big picture. I suggest you base your procedures on a flowchart of the product delivery process.

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Marc Smith
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posted 03 April 2000 07:28 AM     Click Here to See the Profile for Marc Smith   Click Here to Email Marc Smith     Edit/Delete Message   Reply w/Quote
The ISO stuff is one thing. TQM is another (a philosophy and a set of tools). I would do ISO 9 & 14 together. Also determine what TQM tools you want to implement and decide how much you can do at once. Doing ISO14 and then ISO9 (or the other way around) will just lead to integration problems later. Much of the two are the same or complimentary anyway.

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Kevin Mader
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posted 03 April 2000 08:57 AM     Click Here to See the Profile for Kevin Mader   Click Here to Email Kevin Mader     Edit/Delete Message   Reply w/Quote
ćMy argument is that environmental programmes which reduce energy and waste costs coupled with TQM tools and techniques will be of more use than a compliance driven ISO9000 system. I realise that there are market pressures on companies to adopt ISO9000 systems but I have read numerous reports which indicate that smaller companies with strong relationships both internally and externally find the formality of ISO9000 of less benefit than larger more hierarchical companies.ä

I must admit that I havenāt read anything similar. Regardless of an organizationās size, the key in my mind is the mindset of the executive level. ISO14 or 9 are good models. But they arenāt enough by themselves. You still need a philosophy on how to manage, TQM or any other . The models are tools that help formalize/standardize organizational practices. As for 14 being of more benefit than 9, it is as subjective as anything else. 9000 brings in aspects of the customer, the organization, and the supplier. 14000 brings in regulatory considerations (which 9000 provides for, but does not mandate). I think many would agree that a registered organization does not guarantee success of any kind. Organizations that succeed do so for many reasons, but not by any one tool or philosophy. It may be pure luck! Organizations that discover Ībalanceā increase their competitive position and improve their position for success, but again, no guarantees.

TQM is a good philosophy. It includes everyone in the organization and those external to it. It provides tools to help deploy the philosophy and create the mindset. It also lacks the formalization of the business practices. I suppose this is where some balance of ISO anything plays an important role. All just part of the PDSA. The inclusion of this cycle in 9000:2000 (itās been there all the time, but now it is clearer IMO) makes this standard more practical. This is true of large and small organizations.

Back to the group·

Kevin

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Marc Smith
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posted 03 April 2000 09:04 AM     Click Here to See the Profile for Marc Smith   Click Here to Email Marc Smith     Edit/Delete Message   Reply w/Quote
quote:
Regardless of an organizationās size, the key in my mind is the mindset of the executive level. ISO14 or 9 are good models. But they arenāt enough by themselves. You still need a philosophy on how to manage, TQM or any other .
I quite agree.

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David Mullins
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From:Adelaide, South Australia, Australia
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posted 03 April 2000 08:54 PM     Click Here to See the Profile for David Mullins   Click Here to Email David Mullins     Edit/Delete Message   Reply w/Quote
What's in a name?
TQM requires a foundation, or baseline, to build on. Standardisation is fundamental. To ensure standardisation of improvements, you must have a good documentation system.

9000 and 14000 require a management systen that is based around:
1. say what you do (document system)
2. Do it and document it.
3. Check that what we did conplies with what we said we would do.

Basically it is my belief that all management systems require a sound document control and distribution/access system for it's foundation. ISO 9000 merely creates the foundation from which TQM can grow SUCCESSFULLY. It is a beginning, not an end.

ISO 14000 is in the same boat, in that it provides the foundation.

TQM, 9000, 14000, they're all just management systems with varying scopes. If you didn't care about the certification/registration then you could make your own quality system (which I have done before) based on the principles of management that are important for success for your organisation. Surely such a system would create more ownership and provide greater succcess than any pre-fab model.

Oops, my bottles empty ......... hic!

------------------

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qualityworld1
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posted 26 April 2000 02:43 PM           Edit/Delete Message   Reply w/Quote
Thanks for the interesting responses...

I have another question. Reading Demings 14 points, point 11 talks about the elimination of quotas. In our company we use production schedules to control what gets built and by when. Does this conflict with Demings point 11? If so how do we schedule production?

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Don Winton
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posted 26 April 2000 03:30 PM     Click Here to See the Profile for Don Winton   Click Here to Email Don Winton     Edit/Delete Message   Reply w/Quote
Interesting question. I get asked that a lot and I typically respond like this:

While I cannot presume to speak for Dr. Deming, I believe Point 11 should be interpreted like this. If your quota requires employees to produce X amounts of widgets for Y amount of dollars, yes that is a conflict with Point 11.

Dr. Deming did not advocate the elimination of production plans. But his intent was that if the employees were given the tools they needed to produce the X amount of widgets in the allotted time, then piece work could be eliminated.

One final point. The 14 points are a whole. Concentrating on one or two single points at the expense of the rest will result in failure.

Regards,
dWizard

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Kevin Mader
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posted 26 April 2000 06:40 PM     Click Here to See the Profile for Kevin Mader   Click Here to Email Kevin Mader     Edit/Delete Message   Reply w/Quote
Originally posted by Don Winton:
"Dr. Deming did not advocate the elimination of production plans. But his intent was that if the employees were given the tools they needed to produce the X amount of widgets in the allotted time, then piece work could be eliminated."

Agreed. I'd like to add that systems yield what they will. No more, no less. If quotas are established without the knowledge of what the system is capable of, management is merely throwing darts. Management must understand the process, make it stable and predictable prior to establishing "targets".

Creating quotas to match customer need without consideration of the system producing the item can, and often leads to, unreachable goals (WED hated the word GOAL as it lacked a method to achieve it). This leads to worker frustration and worse. In order to make the rate, workers begin to cut corners out of necessity (a bad rating on productivity might mean a bad raise or worse)! Production Planning is not an evil or in violation of Rule #11 by itself. Only in the absence of System knowledge.

Don's example also mentions piece work. If annual rating systems are based on quotas (the size of your raise), who would have a poor rating? Everyone would do what it takes to make a nice paycheck, leaving the customer, the organization, and eventually themselves out of the equation. Surely will lead to lose, lose, lose. It is also a very Taylorist approach suggesting that the associate does not understand the work they perform, robbing the associate of Pride of Workmanship.

And,

"One final point. The 14 points are a whole. Concentrating on one or two single points at the expense of the rest will result in failure."

Very true! The WHOLE must be considered as a system is not the sum of its parts. Deming's 14 points and 7 deadly diseases are all parts of his System of Profound Knowledge (SoPK). Don's warning is right on the money!


Regards,

Kevin

[This message has been edited by Kevin Mader (edited 26 April 2000).]

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