QUEZON CITY UNIVERSITY

COLLEGE OF ENGINEERING

INDUSTRIAL ENGINEERING DEPARTMENT

CURRENT AND EMERGING QUALITY MANAGEMENT SYSTEMS,

PROGRAMS AND INITIATIVES

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 Table of Contents

I. ISO-9000 .......................................................................................................... 3
A. Definition ........................................................................................................ 3
B. Brief History .................................................................................................. 3
C. Importance ...................................................................................................... 4
II. Total Quality Management ............................................................................ 4
A. Definition ........................................................................................................ 4
B. Brief History .................................................................................................. 5
C. Importance ...................................................................................................... 6
III. Lean Six Sigma ............................................................................................. 7
A. Definition ........................................................................................................ 7
B. Brief History .................................................................................................. 7
C. Importance ...................................................................................................... 8
IV. Continuous Quality Improvement / PDCA .................................................. 9
A. Definition ........................................................................................................ 9
B. Brief History ................................................................................................ 10
C. Importance .................................................................................................... 11
V. Malcolm Baldridge National Quality Awards / Philippine Quality Awards
............................................................................................................................ 12
V.1. Malcolm Baldridge National Quality Awards .......................................... 12
A. Definition ................................................................................................ 12
B. Brief History .......................................................................................... 12
C. Importance............................................................................................... 13
V.2. Philippine Quality Awards ....................................................................... 14
A. Definition ................................................................................................ 14
B. Brief History .......................................................................................... 14
C. Importance............................................................................................... 14
References ....................................................................................................... 15

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 I. ISO-9000
A. DEFINITION
ISO 9000 is a family of quality management system standards created to help
organizations build, maintain, and continuously improve their quality
management systems in order to provide the best product or service possible for
relevant stakeholders and customers.
The International Organization for Standardization (also known as ISO) is a
standard-setting body with headquarters in Switzerland. It is formed of a number
of different representatives from many standards organizations of all types.
ISO is the organization responsible for creating and maintaining standards
like those found in ISO 9000.
B. BRIEF HISTORY
World War II devastated most of Europe. Winston Churchill first proposed the
concept of a “United States of Europe” in 1946. As treaties evolved and countries
rebuilt, they found that there were many aspects of businesses that were
incompatible from country to country. Quality standards were very diverse, and
the need for a single standard.
Technical Committee 176 (ISO/TC 176) was formed in 1979 to create a
universal quality standard. Based on the British Standard BS5750, ISO 9000 was
first released in 1987. It was referred to as a “quality assurance standard,” with
ISO 9000 being the guidance document. The actual certification standards were
divided into three parts:
 ISO 9001 was for organizations that conducted design, production and servicing.
 ISO 9002 was the standard for production and servicing companies that did not
do design.
 ISO 9003 was applicable to organizations that neither designed nor produced
products, such as those engaged in testing and distribution.
Early on, agencies such as the American Bureau of Shipping (ABS) and Det
Norske Veritas (DNV) added ISO 9000 certification services to their core
businesses of certifying sailing vessels. The national accreditation bodies created
a credentialing system for the certification companies to audit and grant
certificates of conformance to individual organizations that demonstrated
compliance with the standard.
During the 1990s, ISO 9000 exploded in its adoption and implementation.
Because of its universal acceptance, consulting firms and certification services
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 proliferated. Then, entire industries adopted the standard as a basic credential
for becoming an approved supplier.
C. IMPORTANCE
ISO 9000 is a family of quality management standards, and quality
management, in the form of a properly enforced QMS, can help an organization
to:
• Market their business more effectively
• Exploit new markets
• Streamline onboarding processes
• Manage growth more efficiently
• Implement and reap the rewards of continuous improvement
• Reduce error in production processes
• Improve product or service efficiency
• Reduce waste
• Improve customer and stakeholder satisfaction
Apart from being an internationally recognized symbol of prestige, a quality
management system implemented with ISO 9000 standards for quality
assurance can be assumed to have reached a consistently high level of
customer satisfaction and product quality.
ISO 9000, specifically standards like ISO 9001, should be seen as ways to
systematically and reliably implement functional quality management systems.
As well as being reliable and proven standards for the general purpose of
implementing a QMS, there are a number of specific benefits that come with
using ISO 9000.

II. TOTAL QUALITY MANAGEMENT

A. DEFINITION
Total Quality Management (TQM) is a management framework based on the
belief that an organization can build long-term success by having all its members,
from low-level workers to its highest-ranking executives, focus on improving
quality and, thus, delivering customer satisfaction. It focuses on process
improvements over the long term, rather than simply emphasizing short-term
financial gains.

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B. BRIEF HISTORY
The history of total quality management (TQM) began initially as a term
coined by the Naval Air Systems Command to describe its Japanese-style
management approach to quality improvement.

1920s • Some of the first seeds of quality management were

planted as the principles of scientific management
swept through U.S. industry.
• Businesses clearly separated the processes of planning
and carrying out the plan, and union opposition arose as
workers were deprived of a voice in the conditions and
functions of their work.
• The Hawthorne experiments in the late 1920s showed
how worker productivity could be impacted by
participation.

1930s • Walter Shewhart developed the methods for statistical

analysis and control of quality.

1950s • W. Edwards Deming taught methods for statistical

analysis and control of quality to Japanese engineers
and executives. This can be considered the origin of
TQM.
• Joseph M. Juran taught the concepts of controlling
quality and managerial breakthrough.
• Armand V. Feigenbaum’s book Total Quality Control, a
forerunner for the present understanding of TQM, was
published.
• Philip B. Crosby’s promotion of zero defects paved the
way for quality improvement in many companies.

1968 • The Japanese named their approach to total quality

"companywide quality control." It is around this time that
the term quality management systems arises.
• Kaoru Ishikawa’s synthesis of the philosophy
contributed to Japan’s ascendancy as a quality leader.

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 Today • TQM is the name for the philosophy of a broad and
C. systemic approach to managing organizational quality.
• Quality standards such as the ISO 9000 series and
quality award programs such as the Deming Prize and
the Malcolm Baldrige National Quality Award specify
principles and processes that comprise TQM.
• TQM as a term to describe an organization's quality
policy and procedure has fallen out of favor as
international standards for quality management have
been developed. Please see our series of pages
on quality management systems for more information.

IMPORTANCE
TQM can have an important and beneficial effect on employee and
organizational development. By having all employees focus on quality
management and continuous improvement, companies can establish and uphold
cultural values that create long-term success to both customers and the
organization itself. TQM’s focus on quality helps identify skills deficiencies in
employees, along with the necessary training, education or mentoring to address
those deficiencies.
With a focus on teamwork, TQM leads to the creation of cross-functional
teams and knowledge sharing. The increased communication and coordination
across disparate groups deepens institutional knowledge and gives companies
more flexibility in deploying personnel.
Benefits of TQM
The benefits of TQM include:
• Less product defects. One of the principles of TQM is that creation of products
and services is done right the first time. This means that products ship with fewer
defects, which reduce product recalls, future customer support overhead and
product fixes.
• Satisfied customers. High-quality products that meet customers’ needs results
in higher customer satisfaction. High customer satisfaction, in turn, can lead to
increased market share, revenue growth via up-sell and word-of-mouth
marketing initiated by customers.
• Lower costs. As a result of less product defects, companies save cost in
customer support, product replacements, field service and the creation of product
fixes. The cost savings flow to the bottom line, creating higher profit margins.

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• Well-defined cultural values. Organizations that practice TQM develop and
nurture core values around quality management and continuous improvement.
The TQM mindset pervades across all aspects of an organization, from hiring to
internal processes to product development.

III. LEAN SIX SIGMA

A. DEFINITION
Lean Six Sigma is a team-focused managerial approach that seeks to
improve performance by eliminating waste and defects. It combines Six Sigma
methods and tools and the lean manufacturing/lean enterprise philosophy,
striving to eliminate waste of physical resources, time, effort and talent while
assuring quality in production and organizational processes. Simply put, under
the tenets of Lean Six Sigma any use of resources that doesn't create value for
the end customer is considered a waste and should be eliminated.
B. BRIEF HISTORY
Lean Six Sigma can see its origins in the United States in the 1980s as a
combination of management principles and processes that originated in Japan. In
an effort to compete with Japan's better products, U.S. managers adopted some
Japanese manufacturing principles that focused on reducing waste in the form of
non-value-adding actions. In the 1990s, such principles were adopted by large
U.S. manufacturers. Lean Six Sigma was introduced by Michael George and
Robert Lawrence Jr. in their 2002 book Lean Six Sigma: Combining Six Sigma
with Lean Speed as a combination and refinement of lean enterprise and Six
Sigma tenets.
Lean Six Sigma Tenets
The "lean" concept of management lends its focus on the reduction and
elimination of eight kinds of waste known as "DOWNTIME," which is an
abbreviation of defects, overproduction, waiting, non-utilized talent,
transportation, inventory, motion, and extra-processing. "Lean" refers to any
method, measure or tool that helps in the identification and elimination of waste.
The term Six Sigma refers to tools and techniques that are used to improve
manufacturing processes. It was introduced by an engineer at Motorola in 1986
and inspired by Japan's Kaizen model. It was trademarked by the company in
1993. Its intent is to improve processes by identifying and eliminating the causes
of defects and variations in business and manufacturing processes. Six Sigma's
DMAIC phases are utilized in Lean Six Sigma. The acronym stands for define,
measure, analyze, improve and control and refers to a data-driven method for
improving, optimizing and stabilizing business and manufacturing processes.

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 Lean Six Sigma Levels
Lean Six Sigma training uses "Belt" levels to denote expertise similar to Six
Sigma.
• Yellow Belt: Awareness of Lean Six Sigma
• Green Belt: A focus on the use of tools and the application of DMAIC and lean
principles.
• Black Belt: Full-time project leader
• Master Black Belt: A Black Belt with a minimum of two years of experience. Able
to teach Lean Six Sigma.
C. IMPORTANCE
Importance in Organization:
a. Simple Processes
Lean Six Sigma will simplify the business processes. The cross-functional
value stream maps will identify areas of waste and inefficiency. Many of the
processes have embedded rework and work-arounds for persistent problems.
When the wasted effort is removed and the rework and workarounds are no
longer needed, the remaining processes are simple and often much easier to
manage and control.
b. Fewer errors and mistakes
Lean Six Sigma starts with a definition of acceptable quality based upon what
the customers value. This external focus on quality prioritizes the continuous
improvement efforts to address the problems that have the most impact on
business success.
c. Predictable performance
Simple processes are easier to control and manage than complex processes,
especially those processes with fewer errors and mistakes. But added to these
benefits, Lean Six Sigma has a focus on reducing variation within a process.
With less variation, processes become more predictable. That means predictable
cycle time, predictable quality output, and predictable costs. And these can lead
to better customer service, fewer complaints, and higher profits.
d. Active control
The Lean Six Sigma methodology shortens cycle times and puts in place real-
time data-based control plans and systems. With short cycle times and data-
based control systems, the operators and process managers can make decisions
that immediately impact process performance. This improves performance,
improves employee morale, and improves agility.

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 Personal benefits:
a. Personal Effectiveness
Lean Six Sigma provides a structured problem-solving methodology that can
be used to address any type of problem. Being able to find and fix problems will
improve your ability to perform in any position and industry. The Lean Six Sigma
methodology steers you through an organized process of inquiry, analysis,
problem identification and solution creation.
b. Leadership opportunity
Lean Six Sigma is implemented through projects and projects have
leaders. Leading a Lean Six Sigma project will often provide an opportunity for
exposure to other functions and senior management. This exposure is in the
context of someone who can find and fix a problem.
c. Pay and promotability
Attaining belt certification is a valuable credential on your resume. Many job
postings require that an applicant have a Lean Six Sigma credential. So, this will
open the door for some promotions.

IV. CONTINUOUS QUALITY IMPROVEMENT / PDCA

A. DEFINITION
Continuous quality improvement (commonly abbreviated to CQI) is a quality
management approach that is based on the idea that most processes can be
improved and made more efficient. Instead of focusing on the issue only when a
problem is inevitable, and a dramatic intervention is necessary, CQI advocates for
incremental, but regular changes that become a part of organization's day-to-day
activities.
CQI offers a set of concepts and methods that are applied to the organization's
processes. It shifts the attention from the people of an organization to its processes
and products, seeking ways to satisfy organization's internal (employees) and
external customers. CQI encourages teamwork and utilizes internal knowledge to
optimize the processes. Such methods are applied across a variety of industries,
from manufacturing to healthcare.
PDCA method
One of the most popular continuous quality improvement methods is a 4-step
cycle called PDCA:

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• Plan - during the first step, the information about current processes and customer
needs is collected and analyzed. Goals are set, and success measures are
chosen. Actions required to reach the desired goal are identified.
• Do - at the next step, previously agreed upon plan of actions is implemented. Often,
the implementation may be tested on a small scale. Any arising issues should be
documented at this stage.
• Check - once the implementation is completed, another round of information
collection and analysis is carried out to evaluate, whether the original goals have
been achieved. The documentation, created during the previous step, is reviewed.
• Act - at the last step, in case the desired goal was achieved, the newly created
process becomes a part of organization's routine. Alternatively, the process may
be adjusted to yield better results. As PDCA is a cycle, rather than a linear method,
once an Act step is finished, a new cycle begins. This ensures the continuity of the
process improvement within the organization.
B. BRIEF HISTORY
The formal pursuit and management of quality in the 20th century traces back
to Walter Shewhart’s statistical process control models from the 1920’s and
1930’s. Shewhart demonstrated that employees could track variation in processes
and product output on a chart, which allowed them to fine tune work as it was
completed. Such activities not only produced superior products, but also
empowered employees to learn more about their work and be accountable for it.
Shewhart’s student and colleague, W. Edwards Deming further refined the
concepts, which eventually found their way into quality management philosophies
such as TQM, and then to continuous quality improvement.
CQI was first used in manufacturing, and Joseph Juran, Brian Joiner, and Philip
Crosby expanded the concept to other business areas. By the 1970s, quality
management began to move beyond factories to transactional and service fields.
According to Michael Decker, MD in “Beyond Infection Control: The New
Hospital Epidemiology,” in health care, quality measurements were originally
based on how well an organization followed given standards. As Decker writes:
When a standard was not met, the response was often to seek a miscreant
who could be punished for the transaction. Attention was directed almost
exclusively to the performance of physicians, with little recognition given to the
roles of other participants in the process or to the organization of the process itself.
The definition of quality rarely encompassed such considerations as patient
satisfaction or the needs of families, employers, or other healthcare providers.
As insurers, government, and other agencies began to demand quantitative
proof of quality based on set procedures, it was clear that a new approach was

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 necessary. CQI not only uses data to instruct changes, but also seeks change from
within the system and likewise looks for answers from the people in the system.
Additionally, in CQI, quality is defined by meeting or exceeding the needs of
customers, whether internal or external.
Today, marketing programs teach CQI as part of their curriculum, while social
service programs in healthcare, education, facilities management, construction,
and transportation use the practice.
C. IMPORTANCE
A continuous quality improvement approach offers various benefits to
organizations. At a minimum, as social service entities and educational institutions
shift to outcomes-based models, data-driven efforts that produce measurable
results satisfy funding requirements. However, CQI can also provide structural and
procedural benefits.
The benefits of CQI include the following:
• Team member accountability
• Creativity and solution creation
• Heightened team member morale
• Improved processes, information management, and documentation
• Greater adaptability to changes
• Tools and methods to monitor program effectiveness
• Opportunities for additional programs and new program modules

V. MALCOLM BALDRIDGE NATIONAL QUALITY AWARDS / PHILIPPINE

QUALITY AWARDS
V.1 MALCOLM BALDRIDGE NATIONAL QUALITY AWARDS
A. DEFINITION
The Malcolm Baldrige National Quality Award (MBNQA) is an award
established by the U.S. Congress in 1987 to raise awareness of quality
management and recognize U.S. companies that have implemented
successful quality management systems. The award is the nation's highest
presidential honor for performance excellence.
THE SEVEN MBNQA CRITERIA CATEGORIES

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 Organizations that apply for the MBNQA are judged by an independent board
of examiners. Recipients are selected based on achievement and improvement in
seven areas, known as the Baldrige Criteria for Performance Excellence:
• Leadership: How upper management leads the organization, and how the
organization leads within the community.
• Strategy: How the organization establishes and plans to implement strategic
directions.
• Customers: How the organization builds and maintains strong, lasting relationships
with customers.
• Measurement, analysis, and knowledge management: How the organization uses
data to support key processes and manage performance.
• Workforce: How the organization empowers and involves its workforce.
• Operations: How the organization designs, manages, and improves key
processes.
• Results: How the organization performs in terms of customer satisfaction, finances,
human resources, supplier and partner performance, operations, governance and
social responsibility, and how the organization compares to its competitors.
B. BRIEF HISTORY
Asian and European manufacturers in the 1970s and early 1980s, most notably
Japanese auto and electronics producers, were besting U.S. manufacturers in
quality, with an associated drop in U.S. competitiveness in global markets.
Individual companies, trade associations, government entities and think tanks
began to contemplate how America could re-emphasize quality.
The idea of a prize to recognize achievement in the area of Total Quality
Management (TQM) had been around for some time. Japan had established the
Deming Prize in 1951, recognizing both an individual and an organization for
excellence in TQM. In the United States, the National Bureau of Standards (NBS),
now the National Institute of Standards and Technology (NIST), was working on
new measurement services, and in 1983, President Reagan established the
President’s Commission on Industrial Competitiveness.
There was also activity in Congress. In early 1986, several members of
Congress travelled to Japan and met with, among others, the Japanese Union of
Scientists and Engineers, the organization administering the Deming Prize. Later
that year, Congressman Dan Fuqua introduced a bill to establish a National Quality
Award. However, Congress failed to take action on that bill and it died with the end
of the Congressional session.

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 The following year, the House and the Senate both took up bills to establish a
National Quality Award. Both bills stalled, largely over the question of whether
such an award should be a government or a private initiative. At the same time,
NBS continued its work on what it called “Process and Quality Control.” Congress
became aware of NBS’ work, and the idea surfaced that NBS should administer a
national quality award should Congress establish it.
Still, there was little hope the bills would move in Congress. Then, on July 25,
1987, tragedy struck, providing a rallying point for supporters. Secretary of
Commerce Malcolm Baldrige, a lifelong rodeo cowboy, died in a rodeo accident.
Congress agreed to rename the national quality award to honor the fallen
Secretary of Commerce, and in short order, the bill passed in both Houses.
President Reagan signed Public Law 100-107, the “Malcolm Baldrige National
Quality Improvement Act of 1987” on August 20th.
During those 29 years there have been 118 recipients of the Baldrige National
Quality Award. And the value of the Baldrige process, which was first taken as an
article of faith when the program started, has now produced significant,
quantifiable, and measured return on investment.
C. IMPORTANCE
The goal of the Malcolm Baldrige National Quality Improvement Act of 1987
(Public Law 100-107) was to enhance the competitiveness of U.S. businesses. Its
scope has since been expanded to health care and education organizations (in
1999) and to nonprofit/government organizations (in 2007) and in 2017,
cybersecurity. Congress created the Award Program to:
• Identify and recognize role-model businesses
• Establish criteria for evaluating improvement efforts
• Disseminate and share best practices.

V.2. PHILIPPINE QUALITY AWARDS

A. DEFINITION
The PQA is conferred annually to qualified organizations in the private and
public sectors. Organizations which have demonstrated management excellence
by the purposefulness with which it continues to improve and build upon
outstanding results and excellent systems thereby achieving the highest level of
performance excellence.
B. BRIEF HISTORY

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 The PQA is the centerpiece program of the National Action Agenda for
Productivity (NAAP), the blueprint for the country's integrated approach to improve
economy-wide productivity during the term of former President Fidel V. Ramos in
response to the growing challenges of globalization. It was created through
Executive Order 448 on October 3, 1997 and on February 28, 2001 it was
institutionalized through the signing of Republic Act 9013, also known as the
Philippine Quality Award Act (See Implementing Rules and Regulations). The PQA
sets a standard of excellence to help Filipino organizations achieve world-class
performance and serves as a "template" for competitiveness based on the
principles of Total Quality Management (TQM). It is a national quality award
comparable with the Malcolm Baldrige National Quality Award (MBNQA) of the US
and those in Europe and Asia.
C. IMPORTANCE
• It promotes standards in organizational performance comparable to those of
leading business abroad, pursuant to the country's effort to be globally competitive;
• It establishes a national system for assessing quality and productivity performance,
thus providing local organizations regardless of size, sector and maturity with
criteria and guidelines for self-assessment to guide their quality and productivity
improvement efforts; and
• It recognizes organizations in both the private and public sector which excel in
quality management and overall organizational performance, thus providing
Philippine industries with benchmarks and models to emulate.

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