Quality management principles

Introduction

This document introduces the eight quality management principles on which the quality management system standards of the ISO 9000 series are based. These principles can be used by senior management as a framework to guide their organizations towards improved performance. The principles are derived from the collective experience and knowledge of the international experts who participate in ISO Technical Committee ISO/TC 176, Quality management and quality assurance, which is responsible for developing and maintaining the ISO 9000 standards. The eight quality management principles are dened in ISO 9000:2005, Quality management systems Fundamentals and vocabulary, and in ISO 9004:2009, Managing for the sustained success of an organization A quality management approach. This document gives the standardized descriptions of the principles as they appear in ISO 9000:2005 and ISO 9004:2009. In addition, it provides examples of the benets derived from their use and of actions that managers typically take in applying the principles to improve their organizations performance.

Contents: Principle 1 Customer focus Principle 2 Leadership Principle 3 Involvement of people Principle 4 Process approach Principle 5 System approach to management Principle 6 Continual improvement Principle 7 Factual approach to decision making Principle 8 Mutually benecial supplier relationships The next step

Principle 1 Customer focus

Organizations depend on their customers and therefore should understand current and future customer needs, should meet customer requirements and strive to exceed customer expectations. Key benets: Increased revenue and market share obtained through exible and fast responses to market opportunities Increased effectiveness in the use of the organizations resources to enhance customer satisfaction Improved customer loyalty leading to repeat business. Researching and understanding customer needs Applying and expectations the principle of customer Ensuring that the objectives of the organization focus typically are linked to customer needs and expectations leads to: Communicating customer needs and expectations throughout the organization Measuring customer satisfaction and acting on the results Systematically managing customer relationships Ensuring a balanced approach between satisfying customers and other interested parties (such as owners, employees, suppliers, nanciers, local communities and society as a whole).

Principle 2 Leadership

Leaders establish unity of purpose and direction of the organization. They should create and maintain the internal environment in which people can become fully involved in achieving the organizations objectives. Key benets: People will understand and be motivated towards the organizations goals and objectives Activities are evaluated, aligned and implemented in a unied way Miscommunication between levels of an organization will be minimized. Applying the principle of leadership typically leads to: Considering the needs of all interested parties including customers, owners, employees, suppliers, nanciers, local communities and society as a whole Establishing a clear vision of the organizations future Setting challenging goals and targets Creating and sustaining shared values, fairness and ethical role models at all levels of the organization Establishing trust and eliminating fear Providing people with the required resources, training and freedom to act with responsibility and accountability Inspiring, encouraging and recognizing peoples contributions.

Principle 3 Involvement of people

People at all levels are the essence of an organization and their full involvement enables their abilities to be used for the organizations benet. Key benets: Motivated, committed and involved people within the organization Innovation and creativity in furthering the organizations objectives People being accountable for their own performance People eager to participate in and contribute to continual improvement. Applying the principle of involvement of people typically leads to: People understanding the importance of their contribution and role in the organization People identifying constraints to their performance People accepting ownership of problems and their responsibility for solving them

People evaluating their performance against their personal goals and objectives People actively seeking opportunities to enhance their competence, knowledge and experience People freely sharing knowledge and experience People openly discussing problems and issues.

Principle 4 Process approach

A desired result is achieved more efciently when activities and related resources are managed as a process. Key benets: Lower costs and shorter cycle times through effective use of resources Improved, consistent and predictable results Focused and prioritized improvement opportunities. Applying the principle of process approach typically leads to: Systematically dening the activities necessary to obtain a desired result Establishing clear responsibility and accountability for managing key activities Analysing and measuring of the capability of key activities Identifying the interfaces of key activities within and between the functions of the organization Focusing on the factors such as resources, methods, and materials that will improve key activities of the organization Evaluating risks, consequences and impacts of activities on customers, suppliers and other interested parties.

Principle 5 System approach to management

Identifying, understanding and managing interrelated processes as a system contributes to the organizations effectiveness and efciency in achieving its objectives. Key benets: Integration and alignment of the processes that will best achieve the desired results Ability to focus effort on the key processes Providing condence to interested parties as to the consistency, effectiveness and efciency of the organization. Structuring a system to achieve the organizations Applying objectives in the most effective and efcient way the principle of system approach to Understanding the interdependencies between the processes of the system management typically Structured approaches that harmonize and leads to: integrate processes Providing a better understanding of the roles and responsibilities necessary for achieving common objectives and thereby reducing cross-functional barriers Understanding organizational capabilities and establishing resource constraints prior to action Targeting and dening how specic activities within a system should operate Continually improving the system through measurement and evaluation.

Principle 6 Continual improvement

Continual improvement of the organizations overall performance should be a permanent objective of the organization. Key benets: Performance advantage through improved organizational capabilities Alignment of improvement activities at all levels to an organizations strategic intent Flexibility to react quickly to opportunities. Employing a consistent organization-wide approach Applying to continual improvement of the organizations the principle performance of continual improvement Providing people with training in the methods typically and tools of continual improvement leads to: Making continual improvement of products, processes and systems an objective for every individual in the organization Establishing goals to guide, and measures to track, continual improvement Recognizing and acknowledging improvements.

Principle 7 Factual approach to decision making

Effective decisions are based on the analysis of data and information Key benets: Informed decisions An increased ability to demonstrate the effectiveness of past decisions through reference to factual records Increased ability to review, challenge and change opinions and decisions. Applying the principle of factual approach to decision making typically leads to: Ensuring that data and information are sufciently accurate and reliable Making data accessible to those who need it Analysing data and information using valid methods Making decisions and taking action based on factual analysis, balanced with experience and intuition.

Principle 8 Mutually benecial supplier relationships An organization and its suppliers are interdependent and a mutually benecial relationship enhances the ability of both to create value Key benets: Increased ability to create value for both parties Flexibility and speed of joint responses to changing market or customer needs and expectations Optimization of costs and resources. Applying the principles of mutually benecial supplier relationships typically leads to: Establishing relationships that balance short-term gains with long-term considerations Pooling of expertise and resources with partners Identifying and selecting key suppliers Clear and open communication Sharing information and future plans Establishing joint development and improvement activities Inspiring, encouraging and recognizing improvements and achievements by suppliers.

The next step

This document provides a general perspective on the quality management principles underlying the ISO 9000 series. It gives an overview of these principles and shows how, collectively, they can form a basis for performance improvement and organizational excellence. There are many different ways of applying these quality management principles. The nature of the organization and the specic challenges it faces will determine how to implement them. Many organizations will nd it benecial to set up quality management systems based on these principles.

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ISBN 978-92-67-10573-4 ISO/2012-05