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There is a wide range of quality definitions – depending on the perspective. From
the customer perspective via excellence models through to quality standards like
the ISO 9001, those definition have the following essence in common:

Quality is delivering a product/service, which is free from defects, in order to

meet customer requirements. In order achieve this goal, a permanent,
systematic and holistic improvement has to be implemented and ensured.
Thereby the long term goal, to achieve excellence, can be reached.

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Quality definitions alone have no specific meaning unless you enrich them with
the customers perspective. Furthermore everyone has a different understanding
and attitute to quality, since every customer has different requirements. Only if
the indivual requirements are met, qualit y can be assured. Basically, there are
various perceptions resp. mindsets about quality:
• Situational quality
• Quality based on personal experience
• Quality as a brand
• Quality as a passing grade
• Quality because of zero defects
• Quality just because of perfection

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Even if quality management is basically focusing on meeting final customers
requirements, there are internal customers as well. The focus should therefore be
on the customer, independent if its an external or internal customer. For this
purpose, the customer needs to be defined for the present situation.

External customers are represented by

• end customers
• Partners
• OEM-distributers
• etc.

Internal customers are typically located inside the organization and are
represented by
• subsequent process stakeholders
• other divisions
• persons
• etc.

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Due to several influencing factors, quality management is getting more and more
important for todays organizations. The main goal, to fulfill customer
requirements, is getting harder to achieve, since (mainly) external factors carry a
lot of complexity, such as:

• Globalization
• The world economy is becoming increasing global in character
• Globalization leads to an increased competition on the markets, since
organizations in low-wage countries can produce products at lower
costs
• Benchmarking with organizations from all over world in terms of highest
quality

• Changing customers
• Many markets are actually changing from a vendor market to a buyer´s
market which leads to an increased powerful position at the customers
end
• Customers requirements and according products are getting more
individually. Therefore production processes are getting more complex
• This fact let the product range becoming more diverse and complex. In
order to resist, organizations must increase their product portfolio

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without giving up the standardization.

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Quality management has changed over time in it´s philosophy and scope. From
pure quality inspection and quality control to a preventive and holistic approach
(TQM) to integrated management systems.

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W. Edwards Deming (statistician) can be seen as the founder of the quality
movement. On one the reasons for his outstanding work is that his was by far
the most transformational vision. Deming saw the need for a total transformation
of management practices, since he saw management as the root cause for
almost 80% of all organizational problems. Deming has summarized his concepts
and principles in a series of fourteen points and seven deadly diseases.

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Armand Feigenbaum
Armand Feigenbaum, a former manager of manufacturing operations and quality
control for GE, has contributed significantly to the worldwide quality movement by
developing the approach that the responsibility for quality extends well beyond
the manufacturing department. He developed the concept that quality in
manufacturing could not be achieved if the products were poorly designed,
inefficiently distributed, incorrectly marketed, etc.

Kaoru Ishikawa
Kaoru Ishikawa was a Japanese professor, advisor and motivator with respect to
the innovative developments within the field of quality management. He is best
known for the development of the fishbone diagram, which is also known as the
“Ishikawa diagram“. This type of root cause analysis is still used in many
organizations for making root-cause analysis or taking concrete actions in which
the root cause of the problem is identified. Ishikawa is also called the
“grandfather” of the quality circle since he developed this concept.

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Total Quality Management (TQM) is an enhancement to the traditional way of
doing business. It is a proven technique to guarantee survival in world-class
competition. Only by changing the actions of management will the culture and
actions of an entire organization be transformed.
Analyzing the three words, we have
• Total: Made up of the whole
• Quality: Degree of excellence a product or service provides
• Management: Act. art, or manner of handling, controlling. Directing. etc.

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Customer-focused
The customer ultimately determines the level of quality. No matter what an
organization does to foster quality improvement—training employees, integrating
quality into the design process, upgrading computers or software, or buying new
measuring tools—the customer determines whether the efforts were worthwhile.

Total employee involvement

All employees participate in working toward common goals. Total employee
commitment can only be obtained after fear has been driven from the workplace,
when empowerment has occurred, and management has provided the proper
environment. High-performance work systems integrate continuous improvement
efforts with normal business operations.

Process-centered
A fundamental part of TQM is a focus on process thinking. A process is a series
of steps that take inputs from suppliers (internal or external) and transforms them
into outputs that are delivered to customers (again, either internal or external).
The steps required to carry out the process are defined, and performance
measures are continuously monitored in order to detect unexpected variation.

Integrated system

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An integrated business system may be modeled according to the ISO 9000
standard. Every organization has a unique work culture, and it is virtually
impossible to achieve excellence in its products and services unless a good
quality culture has been fostered. Thus, an integrated system connects business
improvement elements in an attempt to continually improve and exceed the
expectations of customers, employees, and other stakeholders.

Strategic and systematic approach

A critical part of the management of quality is the strategic and systematic
approach to achieving an organization’s vision, mission, and goals. This process,
called strategic planning or strategic management, includes the formulation of a
strategic plan that integrates quality as a core component.

Continual improvement
A major thrust of TQM is continual process improvement. Continual improvement
drives an organization to be both analytical and creative in finding ways to become
more competitive and more effective at meeting stakeholder expectations.

Fact-based decision making

In order to know how well an organization is performing, data on performance
measures are necessary. TQM requires that an organization continually collect
and analyze data in order to improve decision making.

Communications
During times of organizational change, as well as part of day-to-day operation,
effective communications plays a large part in maintaining morale and in
motivating employees at all levels. Communications involve strategies, method,
and timeliness.

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Cost of quality (COQ) is a framework to identify and categorize costs of products
and service related to their output quality. The main goal of this approach is to
minimize the total costs of quality.
In general, we distinguish between costs of good quality (conformance) and costs
of poor quality (non-conformance). The point of time where a possible failure
becomes visible or influences the functionality of the product, makes the
difference between the cost types.

In order to prevent failures, certain activities have to be performed either to

produce zero-defect products or minimizing the impact at customers end. Those
activities can be categorized into
• Preventing activities
Costs associated with the development of programs to prevent defectives in
the first place

• Detecting activities or
Costs associated with the test and inspection of products after production and
before shipment

• Remediating activities
Costs associated with the failure of a defective product

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Cost of poor quality
The costs associated with providing poor quality products, which are not meeting
customer requirements. Poor quality can be divided into
• Internal failure costs
Costs associated with defects found before the customer receives the product
e.g. acceptance test, outgoing material check

• External failure costs

Costs associated with defects found after the customer received the product
e.g. repair, complain handling, product recalls

Cost of good quality

If a product is free of defects, certain resources are invested into the prevention
of failures, such as:
• Appraisal costs
Costs associated with measuring, controlling and monitoring activities related
to quality assurance
e.g. evaluation of supplier materials, incoming material checks, verifications,
quality audits

• Prevention costs
Costs associated with activities that prevent the occurrence of failures –

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usually early in the product development process
e.g. product requirements definition, Poka Yoke, FMEA, quality planning &
assurance, training

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Source: https://www.theguardian.com/business/2010/jan/29/timeline-toyota-
recall-accelerator-pedal

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This graph shows that a higher effort on preventive actions can lead to a
decrease in appraisal and failure costs. By this, less failures will occur on the end
of the value chain. Because of the fact, that defective products are much more
cost intensive because of follow-up costs, the total savings could be increased if
preventive actions are continuously performed.

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Quality management comprises all activities within an organization related to
achieving the desired quality level. While „total quality management“ is more a
theoretical philosophy and holistic approach, quality management represents a
framework with applicable methods, tools and systems for establishment within
the organization.

The quality policy defines the overall purpose and alignment of the organization.
It has to be issued by the management according to ISO 9000 requirements.

By planning quality, certain quality objectives, the according realization and

required resources are planned in order to fulfill them. Part of the planning
process is the selection, classification and emphasis of quality characteristics as
well as the concretization of given quality requirements.

Quality control is permanently monitoring and adjusting organizational

processes according to given requirements. According to the ISO 9000 standard,
quality control is responsible for fulfillment of quality objectives. In order to do so,
the results of quality checks and audits are compared to the requirements given
by the quality planning. If failures or non-conformances are noticed, certain
corrective activities have to be performed.

Quality assurance has the aim to create confidence and convince stakeholders,

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that all quality requirements are fulfilled.

Quality improvement comprises all activities to increase the effectivity and

efficiency of processes regarding to quality. Quality improvement is therefore
important to advance the quality excellence within an organization.

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Customer focus
Sustained success is achieved when an organization attracts and retains the
confidence of customers and other interested parties. Every aspect of customer
interaction provides an opportunity to create more value for the customer.
Understanding current and future needs of customers and other interested
parties contributes to sustained success of the organization.

Leadership
Creation of unity of purpose and direction and engagement of people enable an
organization to align its strategies, policies, processes and resources to achieve
its objectives.

Engagement of people
To manage an organization effectively and efficiently, it is important to involve all
people at all levels and to respect them as individuals.
Recognition, empowerment and enhancement of competence facilitate the
engagement of people in achieving the organization’s quality objectives.

Process appoach
The quality management system consists of interrelated processes.
Understanding how results are produced by this system enables an organization

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to optimize the system and its performance.

Improvement
Improvement is essential for an organization to maintain current levels of
performance, to react to changes in its internal and external conditions and to
create new opportunities.

Evidence-based decision making

Decision making can be a complex process, and it always involves some
uncertainty. It often involves multiple types and sources of inputs, as well as their
interpretation, which can be subjective. It is important to understand cause-and-
effect relationships and potential unintended consequences. Facts, evidence and
data analysis lead to greater objectivity and confidence in decision making.

Relationship management
Interested parties influence the performance of an organization. Sustained
success is more likely to be achieved when the organization manages
relationships with all of its interested parties to optimize their impact on its
performance.

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The model of a process-oriented QMS as shown above, illustrates that
customers‘ requirements, the needs and expectations of relevant interested
parties along with the organization and its context plays a significant role in
defining requirements as input. The output of the processes is the result of the
QMS that includes products and services the organizations provides, which
should result in customer satisfaction.

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An integrated management system (IMS) combines multiple management
system standards to which an organization is following.

According to ISO, “a management system describes the set of procedures an

organization needs to follow in order to meet its objectives.” An IMS enables an
organization to monitor, measure, and evaluate its effectiveness throughout
multiple management system at one step. An IMS allows top management to
address all elements of the management system rather than looking at individual
standards, clauses, activities, or requirements separately.

An example of an integrated management system is one that simultaneously

handles the requirements of the ISO 9001 standard (QMS), the ISO 14001
(EMS), the environmental management system standard, and the OHSAS
18001, the Occupational Health and Safety Assessment Specification.

A robust IMS enables the organization to identify potential improvements across

all of its parameters by providing a holistic view of the entire business (e.g.,
quality, environmental, and health and safety) compared to that achieved under
individual management systems.

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Business Excellence is often described as outstanding practices in
managing the organization and achieving results, all based on a set of
fundamental concepts or values.

These practices have evolved into models for how a world class organization
should operate. These models have been developed and continue to evolve
through extensive study of the practice and values of the world’s highest
performing organizations.

Many countries have developed their own models and use these as frameworks
to assess and recognize the performance of organizations through awards
programs.

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The EFQM Excellence Model is a non-prescriptive framework for organizational
management systems, promoted by EFQM and designed for helping
organizations in their drive towards being more competitive. Regardless of sector,
size, structure or maturity, organizations need to establish appropriate
management systems in order to be successful and competitive.

The EFQM Excellence Model is a practical tool to help organizations do this by

measuring where they are on the path to excellence. Moreover it helps them to
understand current gaps and possible improvements. The EFQM Model acts as a
common reference tool helping organizations move towards Excellence.

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EFQM fundamental concepts:

ADDING VALUE FOR CUSTOMERS

Excellent organizations consistently add value for customers by understanding,

anticipating and fulfilling needs, expectations and opportunities.

CREATING A SUSTAINABLE FUTURE

Excellent organizations have a positive impact on the world around them by

enhancing their performance whilst simultaneously advancing the economic,
environmental and social conditions within the communities they touch.

DEVELOPING ORGANIZATIONAL CAPABILITY

Excellent organizations enhance their capabilities by effectively managing

change within and beyond the organizational boundaries.

HARNESSING CREATIVITY & INNOVATION

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Excellent organizations generate increased value and levels of performance
through continual improvement and systematic innovation by harnessing the
creativity of their stakeholders.

LEADING WITH VISION, INSPIRATION & INTEGRITY

Excellent organizations have leaders who shape the future and make it happen,
acting as role models for its values and ethics.

MANAGING WITH AGILITY

Excellent organizations are widely recognized for their ability to identify and
respond effectively and efficiently to opportunities and threats.

SUCCEEDING THROUGH THE TALENT OF PEOPLE

Excellent organizations value their people and create a culture of empowerment

for the achievement of both organizational and personal goals.

SUSTAINING OUTSTANDING RESULTS

Excellent organizations achieve sustained outstanding results that meet both the
short and long term needs of all their stakeholders, within the context of their
operating environment.

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ENABLERS:

LEADERSHIP
Excellent organizations have leaders who shape the future and make it happen,
acting as role models for its values and ethics and inspiring trust at all times.
They are flexible, enabling the organization to anticipate and reach in a timely
manner to ensure the on-going success of the organization.

STRATEGY
Excellent organizations implement their Mission and Vision by developing a
stakeholder focused strategy. Policies, plans, objectives and processes are
developed and deployed to deliver the strategy.

PEOPLE
Excellent organizations value their people and create a culture that allows the
mutually beneficial achievement of organizational and personal goals. They
develop the capabilities of their people and promote fairness and equality. They
care for, communicate, reward and recognize, in a way that motivates people,
builds commitment and enables them to use their skills and knowledge for the
benefit of the organization.

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PARTNERSHIPS & RESOURCES
Excellent organizations plan and manage external partnerships, suppliers and
internal resources in order to support their strategy, policies and the effective
operation of processes. They ensure that they effectively manage their
environmental and societal impact.

PROCESSES, PRODUCTS & SERVICES

Excellent organizations design, manage and improve processes, products and
services to generate increasing value for customers and other stakeholders.

RESULTS:

CUSTOMER RESULTS
Excellent organizations achieve and sustain outstanding results that meet or
exceed the need and expectations of their customers.

PEOPLE RESULTS
Excellent organizations achieve and sustain outstanding results that meet or
exceed the need and expectations of their people.

SOCIETY RESULTS
Excellent organizations achieve and sustain outstanding results that meet or
exceed the need and expectations of relevant stakeholders within society.

BUSINESS RESULTS
Excellent organizations achieve and sustain outstanding results that meet or
exceed the need and expectations of their business stakeholders.

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