ISO 9000:2000 and the EFQM Excellence Model: Competition or Cooperation - Coursework Example

ISO 9000:2000 and the EFQM Excellence Model: Competition or cooperation? Name Institution Name Date Introduction A quality management system is a group of procedures, processes and policies required form formulation and implementation of core business area of any company. The quality aspects impact immensely the customer requirements and expectations and influences the direction of the organization. Numerous frameworks of quality management systems exist but the efficiency of these systems are debatable and applicable to certain scenarios: examples are ISO 9000:2000 and EFQM Excellence Model. Russell (2000) states that the EFQM Excellence model is a non-prescriptive business is premised on excellence in which organizations are developed in a manner that supports the organizations to become competitive. It is similar to ISO 9000: 2000 but the span of operations is sometimes similar or fuzzy. Both of these models seeks for competitive advantage for an organization, organizes the different suppliers with a focus to confidence, provides a mutual understanding of terminologies employed, and enables the organization to assess the quality management system. The common difference between the models lies in the principles and fundamental concepts. The eight principles of ISO 9000:2000 are customer focus, leadership, the involvement of people, process approach, system approach to management, continual improvement, mutually supplier relationships and factual approach to decision making. The fundamental concepts of the EFQM Excellence Model are results orientation, public responsibility, leadership and constancy of purpose, continuous improvement, innovation and learning, management by facts and processes, people involvement and development, partnership development and customer focus. Due to the difference in some of the concepts and terminologies, arguments may exist that these two models compete or cooperate. The aim of the report is to discuss these two models whether they create competition or cooperation. In addition, the report compares and contrasts these models, and identifies areas in which the models can complement each other. Arguments that support the first position (Competition) The aspect of competition in both models is premised on the span of operations and influences on the quality management objectives. ISO 9000:2000 does not extensively address some components that EFQM Excellence Model addresses. For example, the EFQM Excellence Model creates a competitive edge because the definition of the model incorporates learning and innovation, and also the inclusion of approaches to results and public responsibility. Russell (2000) opines the EFQM Excellence Model employs a holistic view of excellence and quality. The approach is that different stakeholders have to be incorporated in the manner in which an organization operates, and through approaches such as partnership, it is possible to lead effectively an organization. The analysis indicates the elements of ISO 9000: 2000 does not incorporate the learning processes within an organization: for example, it does not provide modalities or approaches in which failures can be used as a guiding process in developing the organization and overall quality assurance. EFQM Excellence Model provides a mechanism in which employees capacities can be improved. Employees are assets to an organization and ensuring the employees are satisfied and motivated through processes such as development, involvement, and training improve the competencies of the employees (Saizarbitoria, Arana & Casadesús, 2006). The focus of EFQM Excellence Model is both employee development and involvement while in the case of ISO 9000:2000, it only considers the involvement of the people (Nabitz, Klazinga & Walburg, 2000). A learning and developing organization has to improve the competencies of the employees but the ISO model does not factor. It means that the ISO Model is not competitive when it comes to employee development and involvement, which makes it an advantage to implement the EFQM Excellence Model rather that ISO 9000: 2000. Arguments that support the second position (Cooperation) EFQM Excellence Model and the ISO 9000: 2000 share numerous factors that mean it takes a cooperative framework. For example, both of these models understand the importance of effective leadership and customer focus, which are integral in the provision of both focus and drive. In addition, EFQM Excellence Model emphasis on continual improvement elements and process elements, which are also a focus to the ISO 9000: 2000 (Russell, 2000). Moreover, the supplier relationships and the people are important in both model even though the level of utilization of these principles are partially different in that the Excellence model extensively addresses the improvements requirements, which are absent in the ISO 9000: 2000. These models support each other when it comes to management approaches (Van der Wiele, Williams & Dale, 2000). For instance, ISO 9000:2000 employs process approach, system approach to management and factual approach to decision making, which is similar to the EFQM Excellence Model that highlights management by processes and facts. Approaches in which ISO support EFQM excellence model Processes The ISO Model succeeds in the process of services and products, and especially on service, delivery, production, and design. The design and overall processes focus on increasing compatibility of the products and services (Nabitz, Klazinga & Walburg, 2000). The EFQM Excellence Model focusses on the product but limited to the policy and strategy position while the ISO Model incorporates the product realization process (Van der Wiele, Williams & Dale, 2000). The ISO Model falls short when it comes to improvement of processes because of lack of innovation and extensive involvement of employees, meaning these models complements each other. The EFQM Excellence Model can create a framework for ISO model to address the development and involvement of the employees while the ISO model can contribute the extensive components involved in product and service processes. Approaches in which EFQM Excellence Model support ISO People The aspect in people is poor in ISO 9001: 2000 since it has a minimum impact. The ISO standards do not lead an organization to identify the competence of the employees, train the people or evaluate the effectiveness of training proves. The EFQM Excellence Model can support these requirements through encouraging an organization to provide the people with appropriate resources, manage the employees, and improve the employees (Van der Wiele, Williams & Dale, 2000). It ensures the employees have the capacities and competence to accomplish assigned activities and other organizational requirements and objectives. In training and developing the employees, numerous factors have to be considered including health and safety, the ability of the employees to conform to management objectives and overall organization strategic objectives (Nabitz, Klazinga & Walburg, 2000). Some of the factors that can support ISO Excellence Model include motivating the employees through rewards ad recognition, empowering and involving the people in management, and development of the people to appreciate and understand the benefits of teamwork. Partnerships and society An organization has to operate from a community or society. It is important for the organization to consider the requirements of the community and supportive these requirements through frameworks such as corporate social responsibility (Nabitz, Klazinga & Walburg, 2000). Taking corporate social responsibility, variables, and factors such as sustainability, supporting the community, and creating economic situations that favor the sustenance of the community/society (Saizarbitoria, Arana & Casadesús, 2006). The partnership should also include other stakeholders such as governments and customers. However, the ISO Model is limited in this sector. The ISO model is limited because it does not address the partnerships and other relationships with the development of the organization (Bou-Llusar et al., 2009). EFQM Excellence Model addresses the partnerships and society in an extensive manner, which allows creation and supporting the development requirements of the organization and the community. It creates a win-win situation for the organization and other stakeholders, which is crucial for the sustainability of an organization. Resources The effectiveness of any organization is provision and accessing the appropriate resources such as hardware and software. The employees should have the capacities to handle and use these resources, and allocated in a timely manner in which both models support (Heras-Saizarbitoria, Casadesus & Marimon, 2011). However, the extent of use is limited in ISO Model because the model does not address sustainability and continuity. In sustainability, the EFQM Excellence Model provides guidelines in the conservation of materials and also protecting the society and community from adverse effects of the resources. Limitations also exist when it comes to cultivation, development, and knowledge of intellectual property (Van der Wiele, Williams & Dale, 2000). It means that the EQFM Excellence Model can support the ISO model through the use of resources and data in generating creative or innovative thinking, which would guide an organization. Moreover, the ISO Model does not cover management of technology or finance. Therefore, the ISO Model can incorporate the resource utilization and management in a way, which is similar to the EQFM Excellence Model. Key performance results Performance is among the factors that determine the effectiveness of organization strategies and plans. Collecting and analyzing key performance results is crucial in determining the direction in which an organization takes, and any adjustments required. The ISO model provides views performance results analysis mechanisms compared with the EQFM Excellence Model (Nabitz, Klazinga & Walburg, 2000). The focus of ISO Model is on supplier performance, product, and other related processes but all revolves around production. However, the ISO model does not consider or incorporate other dynamics such as financial performance (Bou-Llusar et al., 2009). Any performance model should provide information regarding the important facets that affect the overall way an organization operates. For example, different stakeholders require information on finance, which is the indicative factor in determining the direction of an organization. Based on different ratios and percentages, it is possible to see whether an organization is on the right track and the shareholders can easily appreciate the direction of the organization. However, the ISO model does not incorporate these components, meaning ISO Model has to embrace the EQFM Excellence Model. Approaches an organization can leverage capabilities and Quality Management Systems to achieve and sustain outstanding achievements Employees and people Quality management systems analyze the requirements of an organization and create a framework in which people relate to each other. The approach of quality management is defining the objectives of any strategies and allowing the employees to relate with each other and implement any strategic objective (Nabitz, Klazinga & Walburg, 2000). It improves the communication process because the people have a general direction and can also improve the interpersonal relationship. The quality management provides mechanisms in which the capacities and competencies of the people can be improved. The organizations provide incentives and assistance such as innovation, creativity, training and development, which can contribute to overall improvement of people skills and expertise (Van der Wiele, Williams & Dale, 2000). The training regime can be tuned to improve organization policies, procedures, and processes. Through such approaches, an organization reduces costs associated with reworking some components, addressing customer complaints, and other negative communication from other stakeholders. In addition, the people are satisfied with the working environment, which reduces employee turnover, employee dissatisfaction, employee dissatisfaction and absenteeism that are common in the unsatisfied working environment. Hence, focusing on the quality management in improving the capacities of the people improves the workplace processes and procedures. Resource Acquisition and Suppliers Engagement Quality management systems clarify the requirements, resources, and allocation of resources depending on the expected outcomes. Different equipment, tools, and resources are required to complete an assignment or develop a product (Saizarbitoria, Arana & Casadesús, 2006). The provision of these equipment is one thing and aligning the equipment to achieve organization objectives is another thing (Bou-Llusar et al., 2009). Through the use of quality management systems, the people can be trained on effective usage of a resource and prevent or reduce wastages through recycling and similar strategies. The focus is not only acquiring the resources but effective utilization of the resource (Nabitz, Klazinga & Walburg, 2000). It creates an overarching effect in which different factors are considered in contributing to the effectiveness of implementation of strategic objectives (Santos-Vijande & Alvarez-Gonzalez, 2007). It also determines the appropriate resources to be acquired, provides modalities of acquiring the resources, and effective use of the resources. Suppliers are integral to any organization and engagement with the suppliers is important. It enables understanding the source of raw materials, and other information regarding the supplier activities (Van der Wiele, Williams & Dale, 2000). Engagement with the supplier increases levels of confidence, which affects the overall satisfaction and fundamentals of the organization. For example, the supplier can advise on raw materials, and effective quality management on raw materials and supplies can be implemented, and problems and issues can be ironed out easily. Therefore, appreciating the role of suppliers and creating an engaging environment improves the productivity of an organization. Sustainability and Continuity The world is changing and the requirements and sustainability and continuity are common. Continuity refers to the situation in which organization continues operating even if it faces certain levels of risks. It means an organization creates alternative strategies to counter risks: effective risk management regime (Saizarbitoria, Arana & Casadesús, 2006). business continuity ensures the activities of an organization are not stopped or changed because of occurrence of unexpected threat rather the organization should continue depending on the scope of the organization. For example, succession strategies and frameworks should be in place, employee policies and procedures should be effective, and equipment or resources management framework should reflect the requirements of the organization (Van der Wiele, Williams & Dale, 2000). Such strategies ensure an organization continues operating even if the organization is faced with some challenges and complications. Any organization has to achieve its goals and objectives, and the success depends on the sustainability framework in place. Sustainability is viewed from three perspectives, which are the environment, economic and society (Nabitz, Klazinga & Walburg, 2000). The economic focuses on employee compensation and working conditions of the employees. The society perspectives define the relationship with the community and how the community can be supported. The third component is environment perspective in which the environment has to be protected and any strategic action should focus on the wider impact on any decision on the environment (Bou-Llusar et al., 2009). It includes effective utilization of resources and effective waste management system. Through the use of quality management system, the environment, society and economic situation can be brought together and guide the overall directive an organization takes in improving the processes and creating a consistent and sustainable approach in driving the requirements and expectations of an organization. Processes Management and Results Evaluation Quality management systems play an important role in formulating and implementing processes management and result in the evaluation. Some of the main components of quality management in process management include quality improvement, quality control, quality assurance and quality control. Incorporating these components into the overall management of the processes ensures the needs and expectations of the customers are addressed (Van der Wiele, Williams & Dale, 2000). It also enables defined results evaluation process in which processes are linked with the outcomes. The quality management systems also focus on the strategies, which achieves consistent and expected outcomes. It ensures the process chain focuses on the final products, with clearly defined quality and outcomes. The success of the quality management can be determined through reviewing the outcomes. The outcomes can enable analyzing each position of the analyses and the processes involved in developed of products and services (Heras-Saizarbitoria, Casadesus & Marimon, 2011). Factors such as market share, financial statements, and income analysis can be used to inform on whether the organization operates effectively. These information enables formulation of appropriate measures to counter any weaknesses and improve on current strengths, which impacts positively the organization. Therefore, quality management systems can be incorporated to the entire chain of the process to results evaluation, which enables understanding the direction an organization has taken. Recommendations and Justification The following are some recommendations in handling quality management objectives: i. Create a sustainable resource utilization framework – the right resources have to be acquired and utilized effectively. The focus should be determining what is required to reduce waste and encourage sustainability policies (Bou-Llusar et al., 2009). These approaches ensure the resources are acquired and utilized based on overall objectives of the organization and scope of the strategies. ii. Train and develop the employees – the employees have to have capacities and competencies to complete activities. Since the business environment keeps changing, it means the employees have to understand the new techniques and approaches to business (Heras-Saizarbitoria, Casadesus & Marimon, 2011). These can be achieved through implementing a framework that encourages the employees to keep changing depending on the dynamics and business environment needs and expectations. iii. Implement a sustainability procedure and policy – the focus should be in environment, society, and economy. The procedures should ensure these three components balances and support each other in driving the organization towards the objectives, goals, and scope (Bayo-Moriones et al. 2011). Therefore, the overall business environment including the impacting stakeholders has to be considered in formulation and implementation of the sustainability measures and strategies. iv. Effective formulation and implementation of strategies, with outcome results analysis – the proposed decision should be measurable and achieved within time periods (Heras-Saizarbitoria, Casadesus & Marimon, 2011). These outcomes have to be measured and determined to ensure it means the objectives of the organization. The outcome results analysis enables identification of processes and the determination of the applicability of the processes in the achievement of organization objectives and goals. Conclusion Total quality management is crucial for any organization because it improves the quality objectives and leads an organization to the right direction. Different quality management frameworks exist such as the EFQM Excellence Model and ISO 9000:2000. These models share certain characteristics such as leadership, customer care, and processes but differences exist in partnerships, use of resources and development and training of the employees/people. These two models are competitive and collaborative in nature with which it shares some aspects while in other situations, the absence of some concepts is evident. These two models have to complement and support each other in addressing quality management objectives of an organization. An organization can also employ the quality management in the improvement of achievements through creating and implementing a framework, which focuses on employee development, effective utilization of resources, and sustainability. These processes and procedures ensure an organization understands the changing fundamentals associated with an organization, and the organization can adapt easily to the change dynamics through implementing a learning organization regime. A learning organization improves based on changing requirements and other influencing and impacting factors to an organization. References Bayo-Moriones, A., Merino-Díaz-de-Cerio, J., Escamilla-de-León, S. A., & Selvam, R. M. (2011). The impact of ISO 9000 and EFQM on the use of flexible work practices. International Journal of Production Economics, 130(1), 33-42. Bou-Llusar, J. C., Escrig-Tena, A. B., Roca-Puig, V., & Beltrán-Martín, I. (2009). An empirical assessment of the EFQM Excellence Model: Evaluation as a TQM framework relative to the MBNQA Model. Journal of Operations Management, 27(1), 1-22. Heras-Saizarbitoria, I., Casadesus, M., & Marimon, F. (2011). The impact of ISO 9001 standard and the EFQM model: The view of the assessors. 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