European Foundation for Quality Management Excellence Model and ISO 9000:2000 - Essay Example

ISO 9000:2000 AND THE EFQM PROJECT Author Professor University Date EXECUTIVE SUMMARY This report paper summarizes the key arguments and the specific recommendations for how the issues concerning ISO 9000:2000 should be handled to benefit each other. It also examines the rationale for the recommendations by describing the various ways that ISO support EFQM and vice versa. ISO 9000:2000 is a set of standards that were set to help organizations operate and manage its quality management systems effectively (British Quality Foundation 1998). This report paper examines both the draft’s and the Excellence model’s changes that were put forth to answer the questions that arose in the field of quality management system. This paper establishes common grounds between ISO9000:2000 and Excellence model and also establishes the differences that exists between the two in both detail and purpose. Introduction ISO 9000:2000 is a draft on international standards that was established in an attempt to reposition the standards on business quality management systems. The draft has led to significant changes in the system of quality management. This draft required organizations to ensure that their systems comply with the standards speculated by the draft (ISO/DIS 9000:2000 1999). This draft has also contributed positively in many organizations’ journey of excellence. ISO 9000 contains the quality management system’s fundamentals. After some time, the draft was repositioned so as to able to capture a wide area on quality management fundamentals. IS0 9000:2000 is a very basic step that channels an organization to high quality management level (ISO/DIS 9000:2000 1999). EFQM (European Foundation for Quality Management) Excellence model is a model that is used in organization’s quality management system as a reference frame. EFQM model is used in cases where the self-assessment tools of an organization require improvements that will channel the organization to high quality and effective management stages. EFQM Excellence model helps organizations to make positive internal improvements in the field of quality development systems and productivity (Steve, 2000). Since the development of the model of Excellence in the year 1990, business excellence’s key component has been the fundamental principles described by ISO 9000:2000. Principles underpinning this model have been challenged due to their significant continuing relevance compared to the principles set under the ISO 9000:2000. Many changes reflecting the fundamental principles described by the draft have been made both in the EFQM Excellent model and the ISO 9000:2000 draft since April 1999 (ISO/DIS 9000:2000 1999). The changes examine the rationale for partnership in Organization’s quality management system and the importance of continuous innovation and learning putting more emphasis on management and knowledge sharing. Fundamental principles described by the draft on quality management systems have helped very much in determination of the answer to the challenging question on co-operation and competition. Both families of principles take into consideration customer focus’ importance and the major leadership’s role in provision of both focus and drive (Business Quality Foundation 1998). Competition or Cooperation The standards of ISO 9000:2000 are based on principles of quality management which are eight in number. The principles are: leadership, customer focus, people involvement, decision making factual approach, continued improvement, management system approach, process approach and supplier relationship which is mutual. The interventions of ISO 9000:2000 are selected from these eight principles of quality management whose aim is to continually improve long term performance by emphasizing customer focus while addressing other stakeholders’ needs (ISO/DIS 9000:2000 1999). EFQM model’s five axes are closely related to both the expression and enablers of the organization’s components and how the two interact with the others. The other four axes are closely related to the performance results and enablers’ implementation (Business Quality Foundation 1998). The model has a total of nine indicators that fully assess the organization’s aspects by identifying both points of improvement and strength. These indicators assist organizations’ leaders in clerical control of issues pertaining quality management systems. The last axis of this model addresses both the organization’s policy and strategy with due regards to vision, values, mission and strategic guidance (EFQM Excellence Model 1999). The above arguments support the argument on co-operation. Considering the interventions of the draft, ISO 9000:2000 the eight principles on quality management are aimed at improving cooperation among the organizations’ components. These principles address both the needs of the stakeholders and customers. They also benefit mutually the relationships between suppliers so as to enhance cooperation among the suppliers who make part of organization’s management systems (Business Quality Foundation 1998). These principles aimed at improving cooperation among the components of the organizations so as to improve long term performances and achieve quality management standards of the organizations in question (Steve, 2000). The axes and indicators of the EFQM model of Excellence have helped organizations develop significant implementation and performance indicators as a single identity. EFQM model of Excellence is used in a cooperate level aimed to improve the productivity of the organization and the quality of the management system (EFQM Excellence Model 1999). It is interesting to note know that, the implementation of the draft IS0 9000:2000 has lagged behind in some areas due to the fact that, some of the principles in which it is based are difficult to adopt. However, ISO 9000:2000 has led to improved performances in business undertaken under organizational environment. It has also increased consumer satisfaction due to improvements it has resulted in the quality of management systems in the areas where the draft has already been implemented (ISO/DIS 9000:2000 1999). In some cases, organizations use the draft ISO 9000:2000 as an element of competition. They use the draft to drive their organizations to levels that are efficient, customer based and of high quality as compared to others. This act as an element of competition as organizations tries to climb higher in the ladder in the implementation of the draft so as to achieve high quality management levels that would produce a more competitive environment level compared to the others (ISO/DIS 9000:2000 1999). How ISO supports EFQM Excellence model and vice versa Regarding the above descriptive analysis of both ISO and the EFQM Excellence model, many companies implement EFQM Excellence model through the ISO. In this case, the interventions set under this draft are used to specify the various standards under which the axes of the Excellence models should be set (Business Quality Foundation 1998). Importance of the model is set clearly by interventions of the draft that are derived from the eight principles based on quality management systems of the organizations. The most significant external reason as to why this draft is important in improving the EFQM Excellence model is based on the effectiveness of organization’s management practices (ISO/DIS 9000:2000 1999). Considering the various axes under which the EFQM Excellence model is based and the indicators that are used to evaluate the effectiveness of the quality management system, ISO 9000:2000 is enabled to achieve its targets effectively. ISO aims at improving the quality of management systems of an organization. Without the support of the axes and interventions of the ISO, some interventions would not be attainable. Therefore, both ISO and EFQM Excellence model are significant and play a crucial role in supporting one another (EFQM Excellence Model 1999). The reasons as to why organizations pursue these drafts appear in threefold. Firstly, the draft may be in a way driven by the request of the customer to conform to the internal quality management standards of the organization and the supplier’s system in of quality assurance. Secondly, the draft may be directed by an adopting organization so as to increase both home market share and the oversee market share in areas where the value of the ISO certification is partially transferable to the quality of the product. Finally, the draft may be viewed as a way of improving the quality of the service or product and the internal process of the organization (EFQM Excellence Model 1999). Past studies indicate that, customers belonging to a particular supply chain have preferences aimed at procuring products from ISO 9000 certified customers. This certification also allows organization to pursue oversee markets. Organizations can freely transact with oversee organizations that are ISO 9000 certified since this certification repositioning of the quality control system in a way that the products produced are of high quality and meet the standards stipulated under the draft. This draft has also helped organizations to improve homework competitive edges, quality of internal management systems and meet the requirements of their customers (ISO/DIS 9000:2000 1999). The long term success of this draft depends upon the size of the organization, methodology change, employee preparedness and leadership ability. Large companies’ satisfaction was also increased after the drafting of the standards under ISO 9000 no products of low quality could be transacted oversees (Steve, 2000).Large companies have been enabled by this draft to absorb their initial costs and await their operational benefits. However, there are many buriers that have been linked with this draft. Firstly, the draft is associated with high training, registration and consultation costs. Secondly, the process of auditing the internal management system is very difficult as many protocols are observed. Finally, due to these buriers, some organizations adopt the draft but they fall short in meeting the various standards set under the draft. This draft also depends on the initial quality management system of the organization before certification (ISO/DIS 9000:2000 1999). Other organizations fear to adopt the draft because of the higher standards that he draft requires the organization to meet. Some organizations adopt the strategy due to the influence of their customers and their market at large (Steve, 2000).These companies at the end experience many benefits of higher levels. These benefits are gained through market transitions to higher levels and greater shares in the market both internal and oversees. This makes the organization more competitive that those organizations that implement the draft with the sole aim of improving internal management systems. An organization can also implement this draft with an aim of driving improvements in the internal operations of the management system (EFQM Excellence Model 1999). Organizations benefit most from this draft if they learn from their own experience and the experience of the firms in their sector. Being the first organization to implement this draft does not necessarily mean that the organization will benefit most but it just offers experience to the organization. Studies indicate that, ISO 9000:2000 has no direct effect which is uniform upon specific functional excellence areas. Application and implementation of this draft requires direction and purpose so at to be effective and result to huge improvements in the quality management system (ISO/DIS 9000:2000 1999). Non-profit sector has also benefited significantly from the draft due to the fact that, organizations in the sector have unique quality management systems that favor the implementation of the draft. Non-profit organizations use management tools that are highly risk-versed than the profit organizations making them more effective in the implementation of the draft. Quality management systems that are adopted in non-profit making organizations are mainly governed by organization’s environment nature and service provision stability (EFQM Excellence Model 1999). Conclusion Introduction of the draft ISO 9000:2000 was initially viewed as valuable and necessary learning experience. However, there is always a more rewarding and alternative destination for the draft. EFQM Excellence model relies on its axes which are five in number and interventions which are nine in number to bring significant changes in the quality management system of an organization (British Quality Foundation 1998). The second position on cooperation is the common aim for these two drafts as they aimed at improving the cooperation of the various components of the organization that are responsible for the quality of an organization’s management system. References British Quality Foundation (1998). Links to Business Excellence Model. EFQM Excellence Model. (1999). (Brussels, EFQM). ISO/DIS 9000:2000 (1999). International Organization for Standardization. Steve R (2000) Business Improvement & Total Quality Lloyds Register Quality Assurance Ltd ÐTraining Services, Hiramford, Siskin Drive, Coventry CV3 4FJ: Academic Journal Of Total Quality Management, Vol. 11, Nos. 4/5&6, 2000, S657±S665 Iso 9000:2000 And The Efqm Excellence Model: Competition Or Co-Operation? Read More