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IJQRM
16,6 A self-assessed quality
management system based on
integration of MBNQA/
606
Received March 1998
ISO 9000/ISO 14000
Revised January 1999 K.F. Pun and K.S. Chin
City University of Hong Kong, Hong Kong
Henry Lau
Hong Kong Polytechnic University, Hong Kong
Keywords Baldrige Award, ISO 9000, Self-assessment, Quality systems
Abstract With the proliferation of several quality awards and standards, many organisations
have taken their initiatives to employ different awards and standards in one form or another to
sustain competitive edge. The ultimate objective of a self-assessed quality management system
(SQMS) is to assist the organisation in its quest for corporate performance, business results and
financial health. It can be achieved through proceduralising organisational activities and
increasing uniformity and conformity of repeated tasks. This paper presents the compatibility of
assessment criteria of the Baldrige Award with the conformity requirements of both ISO 9000
and ISO 14000. A SQMS is built upon these criteria and requirements. The core concepts and
skeleton of the system are explained, and its applicability is illustrated with reference to an
implementation case in an engineering organisation in Hong Kong.
Introduction
Significant shifts in competitive edge have been sharpening the needs for
continuous improvements and breakthroughs on quality. Many companies
have taken their initiatives to employ different quality awards and standards in
one form or another to document, implement quality assurance practices and
verify continued compliance. For instance, the Malcolm Baldrige National
Quality Award (MBNQA) in the United States of America, the European
Quality Award (EQA) in Western Europe and Australian Quality Award
(AQA) in Australia, are some of the prestigious awards recently established
with a view towards increasing the quality awareness and competitiveness in
their respective countries (Tummala and Tang, 1994; van der Wiele et al., 1997).
Of the established series of quality standards, ISO 9000 have since 1987 been
adopted as the referred or national standards for quality management system
in many countries and regions. Companies that document and implement
quality assurance practices to conform with the ISO 9000 standards would be
awarded ISO 9001, ISO 9002 or ISO 9003 Certification (ISO, 1994a; BSI, 1994).
These awards and standards are commonly adopted as a means of recognising
International Journal of Quality &
the achievements of total quality management (TQM). Some empirical studies
Reliability Management, also found that there has been a strategic quality movement to integrate both
Vol. 16 No. 6, 1999, pp. 606-629.
# MCB University Press, 0256-671X ISO 9000 and TQM practices (Chin et al., 1995). Moreover, the increasing
awareness of the environmental compliance requirements has also imposed Self-assessed
pressures on business enterprises in industry. ISO 14000 has gone through a quality
very rapid process for the world to agree upon an environmental management management
standard comparable to the ISO 9000 quality management standard (ISO,
1996a and 1996b; Kuhre, 1995; Hale, 1997). With the emergence of ISO 14000,
companies with business units certified to ISO 9000 should consider the
possibility of integrating the two management systems and also incorporating 607
safety and health standards (Struebing, 1996; Hale, 1997; Beechner and Koch,
1997; ISO, 1988). This scenario necessitated the management efforts to build an
integrated system with the TQM-based framework that can link self-
assessment to business performance and competitiveness. This paper presents
the compatibility of assessment criteria of the Baldrige Award with the
conformity requirements of both ISO 9000 and ISO 14000. A self-assessed
quality management system (SQMS) is built upon these criteria and
requirements. The core concepts and skeleton of the system are explained, and
its applicability is illustrated with reference to an implementation case in an
engineering organisation in Hong Kong.
Purposes Promote quality awareness, performance Effectively documenting the quality systems Assist organisations to achieve
excellence and competitiveness elements to be implemented or in place environmental performance by managing
improvement, share information on needed to ensure an ability to perform and evaluating environmental aspects of
successful performance strategies and the Voluntary registration by an accredited operations. Third party registration and/or
benefits derived third party self-declaration
Emphasis Customer satisfaction through continuous Validate supplier ability and capability to Establish environmental management
quality improvement, and setting of a perform according to contract systems (EMS) to foster environmental
standard for business excellence. protection and sustainable development
Eligibility Organisations only (limited to the USA) This is generic and independent of any Any organisations (regardless of size, type
specific industry or economic sector. It is and level of maturity) that are interested in
applicable to all types and sizes of the development, implementation and
organisations maintenance of their EMS
Participants Maximum of two manufacturing companies Organisations wish to develop their quality Organisations desiring to certify their
(plus their divisions), two small companies systems and to meet the vendor environmental perfomance to an audit
(fewer than 500 employees) and two service requirement as specified in contracts, client. Organisations may include
companies especially those wishing to have trades with companies, divisions operations and facilites
EC countries and the USA
Evaluation Seven categories of criteria include Specification for design, development, Does not state specific environmental
leadership, strategic planning, customer and production, installation and servicing. It performance criteria. Five basic elements
market focus, information and analysis, contains 20 principal clauses that include (environmental policy, planning,
human resource focus, process management management responsibilities, quality implementation and operation, checking and
and business results. 1000 points allocated system, contract review, design control, corrective action and management review)
over 20 sub-criteria document control and others are required
Orientation Result (65 per cent) plus process (35 per Process (80 per cent) plus management and Share common management system
cent). Heavy on business results (450 scores) administration (20 per cent). Heavy on principles with the ISO 9000 series. Heavy
and leadership (110 scores) quality assurance initiatives and conformity on continual improvement and complience
of clauses with legislation
Mechanics Self-assessment, performance measurement Select registration/certification agency, Select registration/ certification agency and
and audit, qualification for site visit and choose standard, submit a quality manual, commission EMS audits, perform on-site
competition conduct external quality audits and obtain assessment and obtain certification
certification
ISO 14001
ISO 9001 and
Macro level comparison
among MBNQA,
Table I.
Self-assessed
management
quality
611
IJQRM differences in the requirements of many aspects (such as purposes, emphasis,
16,6 eligibility, participants, evaluation criteria, orientation and mechanics), they
are so intertwined that they require better integration for business results. For
instance, according to the study of Affisco et al. (1997), organisations that have
developed quality management systems (QMS) using the MBNQA criteria as a
guide should benefit from this when developing an EMS because of the many
612 similarities among them. Those organisations that have achieved ISO 9000
certification should also benefit from this effort when developing the
implementation and operation, and checking and corrective action elements of
an EMS (Affisco et al., 1997). However, this is still open to debate since there is a
lot of evidence to show that ISO 9001 and ISO 14001 have in many cases been
introduced with little awareness of TQM, and this has not changed following
introduction of the standards. To integrate MBNQA with ISO 9001 and ISO
14001, each award criterion need to be examined. The organisation should then
determine how to embed the ISO 9001 and ISO 14001 elements into the
associated award criteria and how to integrate the self-assessment
requirements into a performance management system framework. Table II
provides a cross-reference of where specific requirements are found in the
award criteria and both of the standards. The table is largely self-exploratory
and shows that a high level of congruence exists among the evaluation criteria
of MBNQA and the conformity elements of ISO 9001 and ISO 14001.
The emphasis of MBNQA is on achieving customer satisfaction through
continuous quality improvement and setting of a standard for business
excellence (NIST, 1998). The core values and concepts of MBNQA are
embodied in seven categories of award criteria. Leadership (Category 1),
Strategic Planning (Category 2) and Customer and Market Focus (Category 3)
represent the leadership triad and have a total score of 270 points. They
emphasise the importance of a leadership focus on strategy and customers, and
underline that senior leaders must set company direction and seek future
opportunities for the company. Human Resources Focus (Category 5), Process
Management (Category 6) and Business Results (Category 7) represent the
result triad and have a total score of 650 points. They stress the company's
employee and key processes to accomplish the work of the organisation that
yields its business results. Information and Analysis (Category 4) has a score of
80 points, and serves as a foundation for analysing the performance
management system that is critical for improving company performance and
competitiveness. These seven criteria are made up of results-oriented
requirements and focus on business results. Moreover, they support goal-based
diagnosis and adopt a systems approach to maintaining company-wide goal
alignment (NIST, 1998). A foundation for performance improvement is a self-
assessment orientation and this is achieved through a heavy weight on
business results in the scoring system (Reimann and Hertz, 1993; Affisco et al.,
1997; NIST, 1998). Regarding the ISO 9001 standard, it is merely process and
customer focused, and relies on the ability of organisations to perform in
accordance with the contracts with their customers. A heavy orientation
Malcolm Baldrige National Quality Award ISO 9001: 1994 Standard ISO 14001: 1996 Standard
1998 criteria (point values): Clause references: Clause references:
management
quality
613
IJQRM towards operating processes is emphasised in the standard (Affisco et al., 1997).
16,6 To a great extent, ISO 9001 thus forms a major part of Process Management
(Category 6) of MBNQA. On the other hand, the focus of ISO 14001 is put on the
development and implementation of an environmental management system
(EMS). It addresses the needs of a broad range of interested parties and the
evolving needs of society for environmental protection and sustainable
614 development. EMS audits of organisations may be commissioned internally or
by external regulatory or contractual entities, and they stress primarily the
environmental policies and the performance in achieving them (Affisco et al.,
1997). ISO 14001 also contributes significantly to the process management as
required in Category 6 of MBNQA.
The design of both ISO 9001 QMS and ISO 14001 EMS is an ongoing,
interactive process that consists of defining, documenting and improving on
the required capabilities. ISO 9001 provides a structure for defining and
implementing a baseline quality assurance system that is essential for
launching continuous improvement processes and techniques. Similarly, the
emphasis of a successful EMS is on continuous improvement in achieving an
environmental policy that is grounded in the concepts of pollution prevention
and sustainable development (Cascio, 1996; Affisco et al., 1997). A documented
system is thus a fundamental requirement for MBNQA, ISO 9001 and ISO
14001. The structure, responsibilities, practices, procedures, processes and
resources for implementing quality and environmental policies, objectives and
targets should be co-ordinated with existing efforts in other functional areas of
the organisation. Many of the ISO 9001 and ISO 14001 standard requirements
can easily be added to the existing documented procedures for MBNQA; only a
few clauses require their own procedures (Beecher and Koch, 1997). Moreover,
separate audits for ISO 9001 and ISO 14001 may not be needed because of
similarities in structure and documentation between them. However, some
additional assessment activity and effort on the part of the auditing team may
be required to evaluate a management system that has been expanded to cover
more aspects of a company's operations. Specific work still remains to be done
to develop a plan for reconciling the disparate impact on organisations of
failing to fulfil the MBNQA criteria and obtain the ISO 9001 registration versus
non-compliance with environmental regulations (Affisco et al., 1997). Both ISO
9001 and ISO 14001 constitute an integral part of an organisation's overall
management system. When blended with the MBNQA criteria, together they
provide a reasonable framework to help an organisation achieve functional
clarity and reach its goals. They also place a great emphasis on self-assessment
in achieving quality and business performance, business results and
management excellence.
System
Integration
Evauation Develop integrated Operation,
criteria and quality management finance, markets
guidelines programmes and legal concerns
Achieve business
results and
Figure 1. performance
Logic flow of SQMS excellence
building and
development
Koch, 1997; McCully, 1997b). Detailed system implementation should be Self-assessed
planned, taking in the SQMS criteria and the considerations of time schedules, quality
budgets and resource allocation. To avoid falling into the trap of developing management
separate and distinct procedures for each function that has no link to other
facets of the integrated system, effective management reviews and audits of the
self-assessment results can help streamline the SQMS development process
(Hale, 1997). Moreover, possible feedback can recycle back to the planning and 617
integration stages for further refinement of the SQMS building and
development. Apart from those technical aspects, the management
commitment and employee involvement efforts are governing the success of
SQMS. Proper building and development of SQMS can help organisations to
better safeguard their sustainable business results and achieve performance
improvement and excellence.
618
of SQMS
IJQRM
Figure 2.
A systems perspective
Driver System Measures of Goal
Progress
Implementation of SQMS
A SQMS cannot be implemented overnight and with little thought. Various
elements and practices have got to be in place, and management needs to
understand the questions underpinning the quality management system on
which self-assessment is being made. What has not been implemented cannot
be assessed, and zero scoring is self-defeating and de-motivating. The entire
organisation or individual functions can be discouraged as a result of low
scores, or there can be a tendency to score higher against the SQMS criteria.
IJQRM Self-assessed quality management system Malcolm Baldrige national quality award
16,6 The SQMS criteria Point values 1998 Categories/Items Point values
ents
and reinforce with rewards
achievement and motivation
equirem
Stage V: 11. Standardise improved
Audit procedures and practices
ISO 9000
10. Measure results and
benchmark achievements
Safety R
and ISO
8. Suggest improvement and
ental and
breakthrough actions
14000 Sta
Investigation and performance
Environm
for its self-assessment. The management of the laboratories has set forth a clear
mission statement as to ``develop a lively culture towards quality improvement
through effort, so that the traditional, hierarchical and top-down ethos of
laboratory management could be complemented by a worker-oriented and
bottom-up activity'' (Patri, 1994). This allowed all laboratory staff (including
academic staff, administrative staff, technicians and labourer), students,
suppliers and visitors to visualise the mission, culture and commitments of the
laboratories.
Step 2: Establish steering committee Self-assessed
A steering committee was formed in the fall of 1994 to design, plan and manage quality
the quality programme. It was composed of a chairman and six senior management
laboratory staff. The committee members evaluated the current status of the
laboratories, determined its strengths and weaknesses, sought opportunities
for improvements, prepared quality plans with the divisions and personnel
concerned, and provided new motivation for the improvements. They are, for 623
instance, to identify improvement needs at both managerial and shop-floor
levels; to obtain agreements between the management and shop-floor staff
regarding the scope and objectives of improvement efforts; and to develop an
employee-led process for improvement.
Conclusion
With the proliferation of several quality awards and standards, many
organisations have taken the initiative to employ different awards and
standards in one form or another to sustain competitive edge. The ultimate
objective of a self-assessed quality management system is to assist the
organisation in its quest for corporate performance, business results and
financial health. It can be achieved through proceduralising organisational
activities and increasing uniformity and conformity of repeated tasks (van der
Wiele et al., 1997). Quality-led organisations should have clear core values and
achievable objectives. The management should drive the quality initiatives,
and link them to the TQM-oriented assessment criteria and compliance
requirements. However, if quality efforts focus primarily on conformity and
documentation, there may be separation between quality management and
overall business management, reversing a trend toward their better integration.
It is therefore best to establish and maintain a total systems approach with
strong self-assessment orientation. Otherwise, this may result in fragmentation
of efforts, slow response and weak productivity growth within the
organisations (Reimann and Hertz, 1993).
Self-assessment is more than just another fad, it is a management approach
based on a mission to aim for business excellence (Beasley, 1994; van der Wiele
et al., 1997). The proposed SQMS codifies the principles of TQM in clear and
accessible language, and also provides companies with a comprehensive
framework for assessing their progress towards the new paradigm of
management and commonly acknowledged goals of customer satisfaction and
increased employee involvement. It adopts the evaluation principles and
framework compatible to that of MBNQA and has a wider system integrity.
The SQMS criteria can be used for self-assessment of a company's performance
on an ongoing basis and internal benchmarking of business results. Their uses
IJQRM can also be extended for external comparisons with other organisations. The
16,6 system provides a useful framework for addressing the establishment and
maintenance of TQM-oriented mission, objectives and targets that state a
commitment to a specified level of performance, an integrated planning process
and strategy for meeting this stated performance commitment, and a
participative organisational structure for executing the strategy. Moreover, it
628 also helps develop the results-oriented implementation programmes and
related support tools to assist in meeting these stated objectives, provide the
communications and training programmes to execute the policy commitment,
and make effective use of customer-focused measurement and review processes
to monitor progress.
Organisations seeking performance improvements are encouraged to foster
their conformity efforts with the feasible SQMS framework that integrates the
MBNQA criteria and the ISO 19001 and ISO 14001 requirements. The QCIMEL
programme in an engineering organisation has demonstrated a successful
implementation case using the SQMS criteria for performance excellence. How
to integrate the functions and evaluate the business performances would still
need to be determined by individual organisations according to their self-
assessment needs. Nevertheless, the SQMS framework has potential to be
tailored to suit different business and industrial settings and satisfy the varied
organisational structure and management style as well as the economic, social
and cultural practices of employees.
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