“OVERVIEW OF QUALITY MANAGEMENT SYSTEM”

1. “OVERVIEW OF QUALITY MANAGEMENT SYSTEM” MS. ELEANOR ROCHELLE S. CRUZ January 18, 2014 Java Hotel, Bacarra Road, Laoag City, Ilocos Norte

2. Outline of Presentation • Introduction • Quality Management System • Quality in the Public Sector • Philippine Quality Award

3. What is Quality? “ THE CHARACTERISTICS OF A PRODUCT OR SERVICE THAT BEAR ON ITS ABILITY TO SATISFY STATED OR IMPLIED NEEDS” AMERICAN SOCIETY FOR QUALITY

4. “ A PRODUCT OR SERVICE FREE OF DEFICIENCIES”

5. “DOING THE RIGHT THING RIGHT,EVERYTIME FROM THE 1ST TIME”

6. “a degree or level of excellence…” • Oxford American Dictionary

7. What is Quality from the CUSTOMER’S perspective? • Fitness for use • how well product or service does what it is supposed to • Quality of design • designing quality characteristics into a product or service

8. Dimensions of Quality:Manufactured Products • Performance • basic operating characteristics of a product; how well a car handles or its gas mileage • Features • “extra” items added to basic features, such as a stereo CD or a leather interior in a car • Reliability • probability that a product will operate properly within an expected time frame; that is, a TV will work without repair for about seven years

9. Conformance • degree to which a product meets pre–established standards • Durability • how long product lasts before replacement; • Serviceability • ease of getting repairs, speed of repairs, courtesy and competence of repair person

10. Aesthetics • how a product looks, feels, sounds, smells, or tastes • Safety • assurance that customer will not suffer injury or harm from a product; an especially important consideration for automobiles • Perceptions • subjective perceptions based on brand name, advertising, etc.

11. Dimensions of Quality: Services • Time and timeliness • how long must a customer wait for service, and is it completed on time? • Completeness: • is everything customer asked for provided?

12. Courtesy: • how are customers treated by employees? • Consistency • is same level of service provided to each customer each time?

13. What Is Quality:Producer’s Perspective • Quality of conformance • making sure product or service is produced according to design • if new tires do not conform to specifications, they wobble • if a hotel room is not clean when a guest checks in, hotel is not functioning according to specifications of its design

14. Meaning of Quality

15. What Is Quality:A Final Perspective • Customer’s and producer’s perspectives depend on each other • Producer’s perspective: • production process and COST • Customer’s perspective: • fitness for use and PRICE • Customer’s view must dominate

16. QUALITY MANAGEMENT SYSTEM (QMS) Quality Management System (QMS) is a collection of business processes focused on achieving your QUALITY POLICYi.e. what your customer wants and needs.It is expressed as the organizational structure, policies, procedures, processes and resources needed to implement QUALITY MANAGEMENT.

17. Elements of a Quality Management System • Quality Policy • Quality Objectives • Quality Manual

18. Organizational structures and Responsibilities • Data Management • Processes

19. Resources - including natural resources and human capital • Product Quality leading to Customer satisfaction • Continuous improvement including corrective and preventive action

20. Maintenance • Sustainability - including efficient resource use and responsible environmental operations • Transparency and independence

21. QMS IS THEREFORE… All the coordinated activities of the overall management function of an organization that determine its quality policy, objectives, and responsibilities and its implementation by means of a quality management system.

22. QMS consists of 3 fundamental structures: POLICY MANAGEMENT “Doing the right things ” FUNDAMENTAL STRUCTURES OF QMS PERFORMANCE IMPROVEMENT “Doing things right the first time” PROCESS MANAGEMENT “Keeping things right”

23. Quality Principles • Education lifelong learning • Enlightening new information • Excellence exceeding expectations • Energy a passion for life • Empowerment the power to act

24. 8 Quality Management Principles • Customer Focus • Leadership • Involvement of people • Process approach • System approach to management • Continuous Improvement • Factual approach to decision making • Mutually beneficial supplier relationships

25. A Successful, Cost effective QMS is one in which • Quality policies and objectives are well defined • Everyone is motivated to achieve quality • Responsibilities are clearly delegated in the organization for activities influencing quality • Communication is good • Instructions are simple, clear and available • Meaningful records are kept • Training is available at all levels • The system is regularly monitored

26. Process to Establish a QMS • Define the scope of QMS • Define Quality Policy and Objectives • Identify key processes and Organizational structure • Plan to establish a QMS • Define Key Processes • Design Quality Manual • Training on QMS

27. Model of Process-based QMS Continuous improvement of the QMS Interested Parties Requirements Interested Parties Management Responsibility Resource Management Measurement, analysis and improvement Output Input Product realization Satisfaction Product

28. Total Quality Management Teams Communication Culture Process Tools System Commitment

29. QMS Reviews – Quality Audit • System audits • Process audits • Product/service audits • Internal audits • External audits • Audits have to be planned and performed as part of the quality management activities

30. Quality is relative Vision & Mission statements are about quality Everybody is responsible for quality Legislation supportsquality Monitor and review quality My Circle of Influence Policies, Processes & procedures are essential Understand the Principles of Quality Continuous Quality Improvements The BIG picture

31. QMS IN THE PUBLIC SECTOR

32. LEGAL BASES REPUBLIC ACT NO. 9013 28 FEBRUARY 2001 “ AN ACT ESTABLISHING THE PHILIPPINE QUALITY AWARD IN ORDER TO ENCOURAGE ORGANIZATION IN BOTH PRIVATE AND PUBLIC SECTOR TO ATTAIN EXCELLENCE IN QUALITY IN THE PRODUCTION AND/OR DELIVERY OF THEIR GOODS AND SERVICE”

33. EXECUTIVE ORDER NO. 605 23 FEBRUARY 2007 “INSTITUTIONALIZING THE STRUCTURE,MECHANISMS AND STANDARDS TO IMPLEMENT THE GOVERNMENT QUALITY MANAGEMENT PROGRAM”

34. DBM CIRCULAR LETTER NO. 2008-8 23 OCTOBER 2008 NATIONAL GUIDELINES ON INTERNAL CONTROL SYSTEMS (NGICS) CHAPTER 3, COMPONENTS OF INTERNAL CONTROL, SECTION 3.1 CONTROL ENVIRONMENT QUALITY MANAGEMENT SYSTEM

35. DBM CIRCULAR LETTER NO. 2011-05 MAY 19,2011 “PHILIPPINE GOVERNMENT INTERNAL AUDIT (PGIAM) ” Generic Module on Controls in QMS

36. GCG Circular No. 2013-02April 29,2013No. 6 letter e “ Government Quality Management System Standards (GQMSS) pursuant to E.O. No. 605 s. 2007

37. Government Quality Management System Standards (GQMSS)

38. A guidance document to provide public sector organization with a consistent approach to quality management. • Translate the technical language of ISO 9001-2000 into a language that is more user friendly for those involved in managing quality in the public sector

39. ISO 9001-2000 • The ISO 9000 family of standards is related to quality management systemsdesigned to help organizations ensure that they meet the needs of customers and other stakeholders while meeting statutory and regulatory requirements related to a product. The standards are published by the International Organization for Standardization (ISO) and available through national standards bodies.

40. ISO 9000 deals with the fundamentals of quality management systems, including the eight management principles upon which the family of standards is based. ISO 9001 deals with the requirements that organizations wishing to meet the standard must fulfill.

41. Third-party certification bodies provide independent confirmation that organizations meet the requirements of ISO 9001. Over a million organizations worldwide are independently certified, making ISO 9001 one of the most widely used management tools in the world today.

42. The Philippine Quality Award

43. What is the PQA? • A set of organizational performance assessment criteria covering a wide range of key excellence indicators: • Customer • Product & Service • Operational • Human Resource • Financial

44. It measures the overall health of your organization, beyond the financials.

45. What is the PQA? • A flagship program of the National Action Agenda for Productivity (NAAP) • A Roadmap towards Global Competitiveness for Key Sectors (Agriculture, Industry/Services, Healthcare, Education, Public Sector) • Established by Executive Order No. 448 in October 1997 • Institutionalized through the signing of RA No. 9013 on February 28, 2001, otherwise known as the PQA Act

46. Objectives of the PQA • To promote standards on organizational performance comparable to those of leading businesses/organizations abroad • To establish a national system for assessing quality and productivity performance in both private and public organizations • To recognize organizations which have achieved the highest level of quality and business excellence, thus providing benchmarks which could be emulated

47. Core Values and Concepts • Visionary Leadership • Customer-Driven Excellence • Organizational and Personal Learning • Valuing Employees and Partners • Agility • Focus on the Future • Managing for Innovation • Management by Fact • Social Responsibility • Focus on Results and Creating Value • Systems Perspective

48. The PQA Assessment Criteria

49. Organizational Profile: Environment, Relationships, Strategic Situation Workforce Focus Strategic Planning Results Leadership Customer Focus Operations Focus Measurement, Analysis, & Knowledge Management

50. Criteria assessment points • Leadership 120 points • Strategic Planning 85 • Customer Focus 85 • Measurement, Analysis, and Knowledge Management 90 • Workforce Focus 85 • Operations Focus 85 • Results 450 1,000 total