EIGHT QUALITY MANAGEMENT PRINCIPLES

Introduction This document introduces the eight quality management principles on which the quality management system standards of the revised ISO 9000:2000 series are based These principles can be used by senior management as a framewor! to guide their organi"ations towards improved performance The principles are derived from the collective e#perience and !nowledge of the international e#perts who participate in ISO Technical $ommittee ISO%T$ &'() *uality management and quality assurance) which is responsible for developing and maintaining the ISO 9000 standards The eight quality management principles are defined in ISO 9000:2000) *uality management systems +undamentals and vocabulary) and in ISO 900,:2000) *uality management systems -uidelines for performance improvements This document gives the standardi"ed descriptions of the principles as they appear in ISO 9000:2000 and ISO 900,:2000 In addition) it provides e#amples of the benefits derived from their use and of actions that managers typically ta!e in applying the principles to improve their organi"ations. performance

Principle 1 Customer ocus Principle ! Le"ders#ip Principle $ In%ol%ement o people Principle & Process "ppro"c# Principle ' S(stem "ppro"c# to m"n")ement Principle * Continu"l impro%ement Principle + ,"ctu"l "ppro"c# to decision m"-in) Principle . Mutu"ll( /ene ici"l supplier rel"tions#ips Principle 1 Customer ocus
Organi"ations depend on their customers and therefore should understand current and future customer needs) should meet customer requirements and strive to e#ceed customer e#pectations 0e( /ene its1 Increased revenue and mar!et share obtained through fle#ible and fast responses to mar!et opportunities Increased effectiveness in the use of the organi"ation.s resources to enhance customer satisfaction Improved customer loyalty leading to repeat business

Appl(in) t#e principle o customer ocus t(pic"ll( le"ds to1 /esearching and understanding customer needs and e#pectations 0nsuring that the ob1ectives of the organi"ation are lin!ed to customer needs and e#pectations $ommunicating customer needs and e#pectations throughout the organi"ation 2easuring customer satisfaction and acting on the results Systematically managing customer relationships 0nsuring a balanced approach between satisfying customers and other interested parties 3such as owners) employees) suppliers) financiers) local communities and society as a whole4

Principle ! Le"ders#ip
5eaders establish unity of purpose and direction of the organi"ation They should create and maintain the internal environment in which people can become fully involved in achieving the organi"ation.s ob1ectives 0e( /ene its1 6eople will understand and be motivated towards the organi"ation.s goals and ob1ectives 7ctivities are evaluated) aligned and implemented in a unified way 2iscommunication between levels of an organi"ation will be minimi"ed Appl(in) t#e principle o le"ders#ip t(pic"ll( le"ds to1 $onsidering the needs of all interested parties including customers) owners) employees) suppliers) financiers) local communities and society as a whole 0stablishing a clear vision of the organi"ation.s future Setting challenging goals and targets $reating and sustaining shared values) fairness and ethical role models at all levels of the organi"ation 0stablishing trust and eliminating fear 6roviding people with the required resources) training and freedom to act with responsibility and accountability Inspiring) encouraging and recogni"ing people.s contributions

Principle $ In%ol%ement o people

6eople at all levels are the essence of an organi"ation and their full involvement enables their abilities to be used for the organi"ation.s benefit 0e( /ene its1 2otivated) committed and involved people within the organi"ation Innovation and creativity in furthering the organi"ation.s ob1ectives

6eople being accountable for their own performance 6eople eager to participate in and contribute to continual improvement Appl(in) t#e principle o in%ol%ement o people t(pic"ll( le"ds to1 6eople understanding the importance of their contribution and role in the organi"ation 6eople identifying constraints to their performance 6eople accepting ownership of problems and their responsibility for solving them 6eople evaluating their performance against their personal goals and ob1ectives 6eople actively see!ing opportunities to enhance their competence) !nowledge and e#perience 6eople freely sharing !nowledge and e#perience 6eople openly discussing problems and issues

Principle & Process "ppro"c#

7 desired result is achieved more efficiently when activities and related resources are managed as a process 0e( /ene its1 5ower costs and shorter cycle times through effective use of resources Improved) consistent and predictable results +ocused and prioriti"ed improvement opportunities Appl(in) t#e principle o process "ppro"c# t(pic"ll( le"ds to1 Systematically defining the activities necessary to obtain a desired result 0stablishing clear responsibility and accountability for managing !ey activities 7nalysing and measuring of the capability of !ey activities Identifying the interfaces of !ey activities within and between the functions of the organi"ation +ocusing on the factors such as resources) methods) and materials that will improve !ey activities of the organi"ation 0valuating ris!s) consequences and impacts of activities on customers) suppliers and other interested parties

Principle ' S(stem "ppro"c# to m"n")ement

Identifying) understanding and managing interrelated processes as a system contributes to the organi"ation.s effectiveness and efficiency in achieving its ob1ectives 0e( /ene its1 Integration and alignment of the processes that will best achieve the desired results 7bility to focus effort on the !ey processes

6roviding confidence to interested parties as to the consistency) effectiveness and efficiency of the organi"ation Appl(in) t#e principle o s(stem "ppro"c# to m"n")ement t(pic"ll( le"ds to1 Structuring a system to achieve the organi"ation.s ob1ectives in the most effective and efficient way 8nderstanding the interdependencies between the processes of the system Structured approaches that harmoni"e and integrate processes 6roviding a better understanding of the roles and responsibilities necessary for achieving common ob1ectives and thereby reducing cross9functional barriers 8nderstanding organi"ational capabilities and establishing resource constraints prior to action Targeting and defining how specific activities within a system should operate $ontinually improving the system through measurement and evaluation

Principle * Continu"l impro%ement

$ontinual improvement of the organi"ation.s overall performance should be a permanent ob1ective of the organi"ation 0e( /ene its1 6erformance advantage through improved organi"ational capabilities 7lignment of improvement activities at all levels to an organi"ation.s strategic intent +le#ibility to react quic!ly to opportunities Appl(in) t#e principle o continu"l impro%ement t(pic"ll( le"ds to1 0mploying a consistent organi"ation9wide approach to continual improvement of the organi"ation.s performance 6roviding people with training in the methods and tools of continual improvement 2a!ing continual improvement of products) processes and systems an ob1ective for every individual in the organi"ation 0stablishing goals to guide) and measures to trac!) continual improvement /ecogni"ing and ac!nowledging improvements

Principle + ,"ctu"l "ppro"c# to decision m"-in)

0ffective decisions are based on the analysis of data and information 0e( /ene its1 Informed decisions 7n increased ability to demonstrate the effectiveness of past decisions through reference to factual records

Increased ability to review) challenge and change opinions and decisions Appl(in) t#e principle o "ctu"l "ppro"c# to decision m"-in) t(pic"ll( le"ds to1 0nsuring that data and information are sufficiently accurate and reliable 2a!ing data accessible to those who need it 7nalysing data and information using valid methods 2a!ing decisions and ta!ing action based on factual analysis) balanced with e#perience and intuition

Principle . Mutu"ll( /ene ici"l supplier rel"tions#ips

7n organi"ation and its suppliers are interdependent and a mutually beneficial relationship enhances the ability of both to create value 0e( /ene its1 Increased ability to create value for both parties +le#ibility and speed of 1oint responses to changing mar!et or customer needs and e#pectations Optimi"ation of costs and resources Appl(in) t#e principles o mutu"ll( /ene ici"l supplier rel"tions#ips t(pic"ll( le"ds to1 0stablishing relationships that balance short9term gains with long9term considerations 6ooling of e#pertise and resources with partners Identifying and selecting !ey suppliers $lear and open communication Sharing information and future plans 0stablishing 1oint development and improvement activities Inspiring) encouraging and recogni"ing improvements and achievements by suppliers The ne#t step: This document provides a general perspective on the quality management principles underlying the ISO 9000:2000 series It gives an overview of these principles and shows how) collectively) they can form a basis for performance improvement and organi"ational e#cellence There are many different ways of applying these quality management principles The nature of the organi"ation and the specific challenges it faces will determine how to implement them 2any organi"ations will find it beneficial to set up quality management systems based on these principles The requirements of quality management systems and supporting guidelines are given in the ISO 9000 9 Selection and use

+urther information on the ISO 9000 standards is available from ISO.s national member institutes or from the ISO $entral Secretariat ISO 9000 enquiry service Sales enquiries should also be directed to the ISO members or to the ISO $entral Secretariat sales department ISO publishes the bimonthly ISO 2anagement Systems) which provides updates on these families of standards and news on their implementation around the world 7 Spanish9 language edition is published by the Spanish national standards institute) 70:O/