KEYS TO QUALITY. Introduction and Keys to Quality.
It is about achieving maximum effectiveness through constant improvement of the production process. We are talking about the implementation of quality systems. A practice that companies should introduce gradually to be more competitive.
The implementation of quality systems provide a large number of benefits to companies that are committed to this strategy. Not only do they reduce their costs in a reasonable way, but they also increase their income thanks to the higher degree of satisfaction of their clients and an improvement in the motivation of their employees. It is not lost on anyone that these motivations are the result of a reversal of the day-to-day process.
However, the Company in Spain wants immediate results. Perhaps this is one of the reasons that the average life of firms in our country is between four and five years. It is not the only one: the lack of vision of the future and reflective practice place Spain in the wagons of the queue as far as quality implementation is concerned. However, in recent years there has been a spectacular evolution in this regard (at the beginning of 1992 only 62 companies had quality certifications and four years later, at the end of 96, the figure amounted to 2,000 companies).
What is quality?
For some it is already a lifestyle. Rather, it is synonymous with good business management and, therefore, with competitive products and services. It is about achieving maximum effectiveness through constant improvement of the production process.
If, for example, a Company manufactures towels, obtaining a quality certificate does not imply that those towels are better than those of the competing Company, which do not have the certificate; it simply means that this company sets a certain level of excellence that is met on a stable basis. This means that the towels it manufactures have a constant quality.
The implementation of a quality system is everyone's business, and it benefits everyone: employers, workers and customers. However, it is a complicated process, relatively long and expensive, since it requires a significant investment in time and training. It also implies the rejection of a deeply rooted principle: that of immediate profitability. The data speaks for itself: 60% of the companies that initiate such a procedure abandon it after two years.
Origin of quality
As we are used to, the Japanese were the pioneers. World War II left the Japanese economy in a catastrophic situation, with uncompetitive products that had no place in international markets. The Japanese did not take long to react: they launched onto the market thanks to the adoption of quality systems. The results were that Japan registered spectacular growth.
The Japanese initiative was soon transmitted to other areas of the planet. Europe took a little longer, but it was also the 80s that gave the final boost.
In 1988 the European Foundation for Quality Management (EFQM) was born, an organization that bets on total quality management models (GTC or TQM), strategies aimed at optimizing resources, reducing costs and improving results, with the aim of constantly improving the production process.
What are ISO 9000?
They are a family of interrelated technical standards, called UNE-ISO in Spain, EN in Europe, issued by the International Organization for Standardization (IOS) through its regional committees. The term ISO was chosen because it means the same in Greek. The main ones are ISO 9001, ISO 9002 and ISO 9003.
These standards certify the quality of the Company's business units (therefore, they never refer to products), and do not distinguish different levels of excellence, that is, companies can opt for these standards depending on their areas of activity.. Thus, the firms that design, manufacture or market their merchandise may aspire to achieve ISO 9001, since this standard certifies quality of design, development, production, installation and after-sales service. ISO 9002 focuses on these last three points. ISO 9003 measures final product testing and inspections.
Compliance with ISO standards is only mandatory when stipulated in a contractual clause between supplier and customer, or by public administration requirements.
Are ISOs a quality award?
No. These standards are just a quality assurance system. They certify a minimum of excellence and guarantee that the quality is stable in accordance with the objectives set by the Company. What is really important is not obtaining the ISO, but the process that the Company goes through to get the certificate.
According to experts, ISO has become a marketing tool and many companies advertise in the media using the fact that their products have obtained a certificate as a claim, which can confuse potential customers. EFQM is working in this direction to eradicate this type of misleading advertising, which survives thanks to the confusion surrounding the concept of quality.
How do I get a certificate?
It is advisable, although not essential, to go first to a consultant. This will guide the entrepreneur and recommend a quality plan (in accordance with the standards issued by the IOS) to apply in their management, through which they will obtain the certificate that accredits them as complying with ISO standards.
The implementation of a quality plan usually proposes a change in the Company's culture. Failures tend to occur at start-up times, since the company must carry out a self-assessment that allows defining the weakest points in order to improve them.
Once this first procedure has been completed, the established plan is subjected to a demanding audit by the certifying companies, which will be in charge of judging whether the management carried out is creditable.
This is the minimum to achieve for a Company that wants quality; then, it must be maintained with subsequent evaluations, constant improvements and successive audits.
In the year 97, the II International Conference on Management Quality (Cical 97) was held in Madrid. In it, the ingredients for the success of a quality control office and its director were established: explain the incidence of quality control in reducing costs and increasing income; delve into the reasons for change through Benchmarking (a system based on a double basis: first take as an example the best strategies of companies in the practical field; second, the measurement of the degree of satisfaction and motivation of people who work in the production process, as well as the client's); become a stimulus for the main departments and for management, which should also function as an internal audit; and work alongside the client.
What areas are controlled to grant a certificate?
The areas examined range from the supplier control system, through the entire production and manufacturing process, to the hierarchical scale of responsibility within the Company. About 20 different factors of the company structure are subject to review.
Advantages for the Company
In Cical 97, some experts put the price of non-quality at 15-20% of financial costs. The director of the Schindler elevator factory highlighted the evolution of his Company's income statement, which went from losing 800 million pesetas in 1992 to obtaining 1,200 million operating results in 1996, thanks to a quality plan.
The company that implements a quality system usually reduces its costs considerably. But this is not the only positive result, since income is also subject to improvement thanks to greater customer and employee satisfaction (who are much more integrated in the Company).
In addition, many large firms require ISO 9000 certification from their clients. The Second European Quality Week, held in November 1996, had as its motto Quality in Europe: United we win. And it is necessary to insist that quality is a matter for everyone and everyone benefits.
Advantages for the Client
The client is guaranteed that the quality level programmed by the Company is consistently met. When a company establishes a quality system, it must maintain an updated vision of the firm throughout the process to combine initiatives and improvement plans.
In this case, vision is understood as the dream with which you want to enthuse the shareholder but, above all, the customer, which turns out to be the main objective and one of the biggest beneficiaries.
What certifies quality?
There is a complicated hierarchy of entities in charge of standardizing the certifying process. The European Quality Accreditation (EAC) aims to standardize the certification in the member countries of the European Union (EU). In Spain, the judge of judges is the National Accreditation Entity (ENAC) that is in charge of giving the go-ahead to the entities that operate in our territory, although it is not yet integrated into the EAC.
So far, only five certifiers have passed the ENAC tests: Spanish Agency for Standardization (Aenor), Laboratori d´Assatjos i Investigacions (LGAI), which depends on the Generalitat of Catalonia, Det Norske Veritas (DNV) of Norway, the French Bureau Veritas and SCS-ICS Ibérica, a Swiss company.
Each of them is qualified to certify certain industrial sectors. For example, Aenor can grant certifications in 32 different branches.
However, in our country there are numerous companies not recognized by the National Accreditation Entity, whose certification will be valid as long as they are accredited by another country or other entity that has signed the Multilateral Agreement for the Recognition of European Quality Accreditation.
Goals:
- Understand the concept of quality control circles
- Identify those responsible. Determine evaluation mechanisms. Learn to apply them.
TOPIC 2: QUALITY CONTROL CIRCLES
Quality circles are an instrument that Management uses when its philosophy is participatory and it believes in the concept of "total quality", that is, in the idea that quality is continuously improved in the workplace.
Definition: Quality control circles are groups that meet voluntarily on a regular basis, in order to identify and resolve work-related problems and implement appropriate solutions, with the due consent of management.
The Quality Circles operate in a cultural context in which the Company concept obeys economic and social interests that take into account the human creative capacity, the possibility of man to participate in common group objectives.
The Quality Circles were born in Japan after World War II, at the end of which this country found that its products were known in the world with the seal of low price, but also of very low quality; and between 1955-60 they begin to systematically apply quality control in two different lines of research and work:
- quality management in the field of company quality circles.
Therefore the introduction of the Quality Circles came as part of a process of natural evolution.
In 1988, in Japan, there were already more than 1 million Quality Circles in which more than 10 million workers participated.
From here they are introduced in other countries. In USA the first Quality Circle was created in 1973 and in Europe from 1978.
THE ROLE OF QUALITY CIRCLES
Being a member of a quality group is strictly voluntary. The success of the Quality Circles lies in the fact that employees consider them their own, and not something instituted simply to keep management satisfied.
The Quality Circles that have thrived never turn into complaint sessions or inopportune discussions about injustices, nor into chat sessions. They always insist on solving problems and preparing action plans.
The Circles should focus on practical matters and leave behind theories; they should seek to obtain positive results and not simply hold discussions.
The role of the Quality Circles is:
- Identify problems Select the most important problem (s) Have the Circle investigate these problems Find the solution (s) Take action, if the Circle is authorized to do so Make a presentation of the problem (s) and possible solutions to management.
Thus, in the philosophy of the Quality Circles are these principles:
- The participation of people at all levels Volunteering in participation Interest and spirit of constant improvement that makes people aware of things that are not going well, that could go better, or that create problems Ability to analyze problems and identify their causes (training staff for this) Training to solve problems by putting the appropriate remedies. Maintain the results obtained.
The benefits of Quality Circles:
The Quality Circles generate in people a feeling of satisfaction and can provide recognition of their achievements. These are for three reasons:
- Increased awareness of teamwork Increased participation of individuals Improvements in the way they perform tasks and, therefore, increased quality.
Building team spirit through Quality Circles can have an extraordinary effect on the entire organization's environment.
Communication also improves greatly with Quality Circles. Naturally communication between both group members improves, but horizontal communication between circles dedicated to different fields of work and vertical communication between factory and management also benefits.
At the worker level, the Quality Circles can bring together people who, although they have been working in the same branch, have barely got to know each other; With the help of the Circle, they not only discuss things together, but they also act in common.
And as for vertical communication, the Quality Circles make a great contribution in favor of compensation from the management of the staff themselves. Managers are often surprised by the enthusiasm and knowledge of their employees, and employees enjoy the opportunity to use their capabilities and see how they are put to good use.
NECESSARY CONDITIONS FOR THE START-UP OF THE CCC
Support in the direction.
When any communication system is in place, the sincere and complete cooperation of the management is essential. Although not directly involved in the Circles, leadership has an important role to play. Directors need to be persuaded not only to invest money and time, but to commit themselves personally to supporting the program. They have to be convinced that the circles are going to have a generous effect on the environment of the organization and on the attitude of the people.
Appoint, train and determine the functions of the general coordinator of the Quality Circles, who can be a management staff.
The good progress of the Quality Circles will depend on it. It can be a person or an external coordinating cabinet, with the functions of:
- Prepare the climate Select the members Train the leaders in techniques of:
-data Collect
-statistic analysis
-problem solving techniques.
-Group dynamics.
- Follow-up of the Circles, advise them and optimize the results. Obtain advice and suggestions from other areas or departments.
Organization of Quality Circles.
Leaders must be trained in the characteristics, techniques and methodology of the Quality Circles. These people must be leaders who stand out.
Training is essential, and consists of finding ways of preparing employees to identify problems and teach them to organize their ideas and to take into account possible technical difficulties and alternatives in order to put their ideas into practice.
Each boss must be trained to form and lead a Quality Circle of their own branch.
Other issues that need to be included in the training of managers are the ability to focus meetings effectively and the best ways to make presentations to management so that the circle's proposals are more likely to be accepted.
The preparation should include a detailed introduction to the Quality Circles, information about the techniques necessary to organize them and examples of practical difficulties that may arise when carrying out the project.
Characteristics of the members.
- Group of 4/7 people, who normally work in the same line. Various work categories must participate. They must participate voluntarily. The Quality Circle has no hierarchical relationship of authority and dependency, the members are equal. The objective is the common desire to improve the work technique, solving common problems. The leader is chosen by the members and may change depending on the group.
With respect to the members of the group, it is normal that there are more volunteers than necessary, which is why a waiting list is normally established that must be followed in strict order, so that those who can join participate due to the losses of the previous ones. They are open groups.
The first sessions are dedicated to preparing all members in the working methods of the Quality Circles, emphasizing the participatory nature of all members; It is not the outstanding work of an individual that stands out, but the combined and cumulative effort of the entire team.
It should start with simple programs that facilitate the familiarity of the members with the techniques and new environment of the circle to which they are not accustomed.
Method to follow
The essential characteristic is the creative effort of the group to solve problems, which requires:
- Identification of the problem Selection of the problem. The group should choose it among the possible ones. Analysis of the problem. Solution of the problem, for which sometimes it will be necessary to resort to external help if the group does not have the necessary means. Presentation in Management, after experimentation with the solution. It is very important here that the group is sure that its ideas and work reaches the leadership and that it takes into account and recognizes its creative value.
In the event that the management does not decide to accept its proposal, it must clearly explain why.
Meetings of the Quality Circles.
It is convenient for the group to meet every 2/3 weeks. The duration of each session should range from approximately 45/90 minutes. It is convenient to establish a meeting program.
The leader must take into account for the smooth running of the meetings:
- That he must select members with professional experience and that they be communicative. That all speak freely. They should repress the charlatans and the balls. Get the shy to speak. Avoid discussions of principle. Seek to draw final conclusions. Take notes of each session.
Other aspects to consider:
- The time of the meetings: it is advisable that the meetings be during working hours, taking advantage of the dead times if possible, there are those who pay overtime, a bonus of training. Selection of members and leaders: the technical competence and sympathy of the leader, that is, he must be a communicative person with good relations with the group and in other departments; with great common sense, integrity, enthusiasm: healthy and positive. Reward and Incentives: they are very varied and range from the cash reward in relation to the improvement obtained to a simple symbol of recognition. Command attitude: they must be well informed, well aware of the program, they must collaborate. For this, the coordinator must previously earn their will. Program implementation costs:Training materials and paying time cost money, as well as rewards. Everyone claims that the feed-back is positive, making the investment profitable. In addition to what is quantifiable, there are what cannot be quantified, such as positive changes in attitudes and motivation in the Organization's groups.
CONCLUSIONS:
The decisive elements for the success of the Quality Circles are:
- Voluntary participation The training of members in:
- statistic analysis.
- group dynamics
- problem solving techniques.
- The free choice of topics to be discussed by the members of the group, without hierarchical imposition that stifles the creative collaboration of the group. Meetings must be held regularly on time paid by the Company, and that it assumes the cost of the start-up.
