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International Journal of Quality &

Reliability Management,

Vol. 16 No. 6, 1999, pp. 606-629.

# MCB University Press, 0256-671X

Received March 1998Revised January 1999

A self-assessed qualitymanagement system based on

integration of MBNQA/ISO 9000/ISO 14000

K.F. Pun and K.S. ChinCity University of Hong Kong, Hong Kong

Henry LauHong 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 organisationshave 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 andincreasing uniformity and conformity of repeated tasks. This paper presents the compatibility ofassessment criteria of the Baldrige Award with the conformity requirements of both ISO 9000and 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 animplementation case in an engineering organisation in Hong Kong.

Introduction

Significant shifts in competitive edge have been sharpening the needs forcontinuous improvements and breakthroughs on quality. Many companieshave taken their initiatives to employ different quality awards and standards inone form or another to document, implement quality assurance practices andverify continued compliance. For instance, the Malcolm Baldrige NationalQuality Award (MBNQA) in the United States of America, the EuropeanQuality Award (EQA) in Western Europe and Australian Quality Award(AQA) in Australia, are some of the prestigious awards recently establishedwith a view towards increasing the quality awareness and competitiveness intheir respective countries (Tummala and Tang, 1994; van der Wiele et al., 1997).

Of the established series of quality standards, ISO 9000 have since 1987 beenadopted as the referred or national standards for quality management system

in many countries and regions. Companies that document and implementquality assurance practices to conform with the ISO 9000 standards would beawarded ISO 9001, ISO 9002 or ISO 9003 Certification (ISO, 1994a; BSI, 1994).These awards and standards are commonly adopted as a means of recognisingthe achievements of total quality management (TQM). Some empirical studiesalso found that there has been a strategic quality movement to integrate bothISO 9000 and TQM practices (Chin et al., 1995). Moreover, the increasing

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awareness of the environmental compliance requirements has also imposedpressures on business enterprises in industry. ISO 14000 has gone through avery rapid process for the world to agree upon an environmental managementstandard 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 thepossibility of integrating the two management systems and also incorporatingsafety and health standards (Struebing, 1996; Hale, 1997; Beechner and Koch,1997; ISO, 1988). This scenario necessitated the management efforts to build anintegrated system with the TQM-based framework that can link self-assessment to business performance and competitiveness. This paper presentsthe compatibility of assessment criteria of the Baldrige Award with theconformity requirements of both ISO 9000 and ISO 14000. A self-assessedquality management system (SQMS) is built upon these criteria andrequirements. The core concepts and skeleton of the system are explained, andits applicability is illustrated with reference to an implementation case in anengineering organisation in Hong Kong.

Transformation journey of quality management systemSystems for improving and managing quality have evolved rapidly in recentyears (Tummala and Tang, 1994; van der Wiele et al., 1997). Reduction ofvariation, continuous improvement of products and services, design quality,speed and prevention, zero defects, cost of poor quality, leadership, peopleparticipation and partnership, cross functional management, systematicapproach to quality and strategic focus with respect to customer satisfaction,

competitiveness, profitability, quality planning and organisation-widecommitment are the major concepts and factors that are introduced by qualitygurus, like Deming, Juran, Crosby, Feigenbaum, Ishikawa and Garvin in oneform or another in managing quality (Tummala and Tang, 1994). These qualityconcepts and factors have been translated into the assessment criteria, coreelements and values of various quality awards (such as MBNQA, EQA andAQA) and standards (such as ISO 9000 and ISO 14000).

During the past decades, simple inspection activities have been replaced orsupplemented by quality control, quality assurance has been developed andrefined. Most companies are now taking initiatives with the ISO 9000 qualityassurance system and working towards total quality management (Dale, 1994;

Chin et al., 1995; van der Wiele et al., 1997). ISO 9000 focuses on the conformityto practices specified in registrants' own quality system. Its disciplinesimposed on calibration, document control and internal audit ensure a companyoperating efficiently with the current system, and in turn, facilitate qualityimprovement. However, there has been a widely held view that ISO 9000 isweak on continuous improvement (Chin et al., 1995; Pun, 1998). Reliance solelyon the ISO 9000 registration is not sufficient to sustain competitive edge.Quality-led companies need to continuously improve or breakthrough theiroperational performance at every level and in all functional areas. TQM-


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oriented assessment criteria can drive them towards the continualmaintenance, development and improvement of overall operation performanceand the delivery of ever-improving values to customers. Furthermore, theemerging issues of clean production and environmental protection also force

companies to respond through their self-initiatives. Managing the cost of doingbusiness with environmental and safety concerns has become an integral partof a comprehensive, overall business strategy (Florida, 1996; Rondinelli andVastag, 1996; Wever, 1996). With the myriad of different management systemstandards inundating organisations, it is time to merge them whereverpracticable. Quality products and services can be delivered best when all of anorganisation's systems are efficient and focused on the same target (Beechnerand Koch, 1997). However, when there is a collection of ad hoc systems orstandards from different areas, efficiency is difficult and misperceptions andconfusion often occur. It is thus best to eliminate potential confusion and sub-optimisation from the outset by establishing and maintaining a total systemsapproach (Beechner and Roch, 1997). A self-assessed quality managementsystem (SQMS) that can integrate the TQM-oriented assessment requirementswith the conformity of the quality and environmental standards can betteraccommodate today's sharpening needs of quality performance. Once they areintegrated, the organisation just needs to adhere to and maintain the system tokeep it running smoothly.

A brief overview of MBNQA, ISO 9000 and ISO 14000The Malcolm Baldrige National Quality AwardThe Malcolm Baldrige National Quality Award (MBNQA) was created by an

act of Congress in 1987 to stimulate quality awareness in the USA. Awards aremade annually to recognise quality winners for performance excellence, andmay be given in each of three eligibility categories such as manufacturingcompanies, service companies and small businesses (Brown, 1996; NIST, 1998).The Award aims to promote the understanding of the requirements forperformance excellence and competitiveness improvement, the sharing ofinformation on successful performance strategies and the benefits derived fromusing these strategies (NIST, 1998). It establishes a self-assessment benchmarkagainst which improvement can be measured and verified. This is a systematicassessment of an organisation's overall activities conducted for the purpose ofevaluating performance, identifying areas for improvement, and developing

recommendations and plans for further action. Award applicants are evaluatedon seven major categories of quality criteria, including Leadership, StrategicPlanning, Customer and Market Focus, Information and Analysis, HumanResource Focus, Process Management and Business Results. These assessmentcriteria share a maximum score of 1,000 points and are designed to be flexibleand inclusive of a wide variety of quality systems. They are used byorganisations of all kinds for self-assessment, planning, training and otherpurposes (NIST, 1998). The assessment scores are derived from the company'sperformance against systematic questioning for these categories, in terms of


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their approach to the requirements of each category, the deployment of theirefforts across the company as a whole and also of the results achieved (NIST,1998). The Award framework for the quality process has built into fourcomponents, including the driver, system, measures of progress and the goal.

They help assess the performance of organisations in line with these awardcategories (Brown, 1996; Affisco et al., 1997). The Award is concerned withquality and customer satisfaction and is based on TQM-oriented criteria andallows self-assessment on an ongoing basis and as a measuring stick forperformance comparison with other organisations. Recent significantdevelopment of the Award have made the change in emphasis from achievingcustomer satisfaction to improving performance and the setting of a standardfor business excellence. Award recipients may publicise and advertise receiptof the Award, and are expected to share information about their successfulperformance strategies with other organisations (NIST, 1998).

The ISO 9000 series of standardsThe ISO 9000 series of quality assurance standards, consisting of ISO 9000, ISO9001, ISO 9002, ISO 9003 and ISO 9004, were issued in 1987 and revised in 1994by the International Organisation for Standardisation (ISO, 1994a, 1994b).They are based on the concept that certain minimum characteristics of qualitymanagement system can be usefully standardised, giving mutual benefit tosuppliers and customers alike (BSI, 1994; Affisco et al., 1997). In simple terms,the objectives of the ISO 9000 series are to give purchasers an assurance thatthe quality of the products and services provided by a supplier meet theirrequirements. The series defines and sets out a definitive list of features and

characteristics that it is considered should be present in an organisation'smanagement control system through documented policies, manual andprocedures, which help to ensure that quality is built into a process. The ISO9000 series consists of five individual standards divided into four parts. Theyprovide guidelines for companies to develop an effective quality system thatcan reflect their practices of producing goods and services, and conform tospecified requirements in order to enhance and facilitate trade (ISO, 1994a; BSI,1994; Mahoney and Thor, 1994). ISO 9000 describes the use of a particularstandard, and ISO 9004 describes the establishment of an internal qualitymanagement system within the broad and general context of TQM. They areconsidered as one part of the series and are intended only as guidelines. The

other three standards, such as ISO 9001, ISO 9002 and ISO 9003, are the genericstandards containing minimum requirements for establishing and maintaininga documented quality system to instil confidence in customer requirements. Inother words, they are the contractual standards between suppliers andcustomers. Of them, ISO 9001 is the most comprehensive standard that coverscircumstances in which an organisation is responsible for design anddevelopment, production, installation and servicing. It contains 20 clauses ofsystem requirements that set forth the practical guidelines to establish andmaintain a documented quality system in meeting customer requirements (ISO,


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1994b). If a company is engaged in production and installation only, then it canuse ISO 9002 to establish and maintain a documented quality system, whereasit can use ISO 9003 if it is engaged only in final inspection and test (BSI, 1994;Mahoney and Thor, 1994). In 1998, a new version of ISO 9001: 2000 quality

management system requirements was being drafted. Guidance on thedevelopment of a complete quality management system for improvement of theorganisation, going beyond the requirements for conformity of product and/orservice, is also available in a draft ISO 9004: 2000 quality management systemguideline (ISO, 1998). The new version of ISO 9000 series would look furtherat compatibility with other management system disciplines such asenvironmental management, occupational health and safety management andfinancial management (ISO, 1998).

The ISO 14000 series of standardsProducts that are environmentally friendly in production and in use may havegreater appeal in the marketplace. ISO 14000 is composed of two groups ofstandards which have been launched in 1996 (ISO, 1996a). The first groupincludes ISO 14001 and ISO 14004 that are concerned with establishingguidelines and principles for the management of environmental matters byorganisations through the establishment and operation of environmentalmanagement systems (EMS) (ISO, 1996a and 1996b). The remaining threestandards (such as ISO 14010, ISO 14011 and ISO 14012) are guidelines forenvironmental auditing that deal with analysing and characterising theenvironmental attributes of products (ISO, 1996c, 1996d, 1996e). Thesestandards are designed to help organisations develop and implement a

formalised management process, and evaluate the effectiveness of theiractivities, operations, products and services to improve environmental andsafety performance (Kuhre, 1995). The ISO 14001 EMS draw its core elementsfrom proven management systems as that of the ISO 9000 series, such asmanagement by objectives, organisational development models, andcontinuous improvement to measure, review, perform root-cause analysis andtake corrective action. It provides a management framework for planning,developing and implementing strategies and related programmes in anorganisation. The ISO 14000 series stresses continual improvement anddynamic ``plan-do-check-act'' process, and requires organizations to evaluatetheir current and potential environmental exposures in terms of impact and

compliance with legislation (Kuhre, 1995; Wever, 1996; ISO, 1996a).

Comparisons among the MBNQA, ISO 9001 and ISO 14001Facing increasing marketplace challenges, many organisations realise thattotal quality is essential and protecting the environment is also required forimproving the quality of life. Some recent studies showed that there is synergyamong MBNQA, ISO 9001 and ISO 14001 (Affisco et al., 1997; Beechner andKoch, 1997; Pun, 1998). Table I presents the comparisons among the MBNQAand the ISO 9001 and ISO 14001 standards at a macro level. Although there are


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differences in the requirements of many aspects (such as purposes, emphasis,eligibility, participants, evaluation criteria, orientation and mechanics), theyare so intertwined that they require better integration for business results. Forinstance, according to the study of Affisco et al. (1997), organisations that havedeveloped quality management systems (QMS) using the MBNQA criteria as aguide should benefit from this when developing an EMS because of the manysimilarities among them. Those organisations that have achieved ISO 9000certification should also benefit from this effort when developing theimplementation and operation, and checking and corrective action elements ofan EMS (Affisco et al., 1997). However, this is still open to debate since there is alot of evidence to show that ISO 9001 and ISO 14001 have in many cases beenintroduced with little awareness of TQM, and this has not changed followingintroduction of the standards. To integrate MBNQA with ISO 9001 and ISO14001, each award criterion need to be examined. The organisation should thendetermine how to embed the ISO 9001 and ISO 14001 elements into theassociated award criteria and how to integrate the self-assessmentrequirements into a performance management system framework. Table IIprovides a cross-reference of where specific requirements are found in theaward criteria and both of the standards. The table is largely self-exploratoryand shows that a high level of congruence exists among the evaluation criteriaof MBNQA and the conformity elements of ISO 9001 and ISO 14001.

The emphasis of MBNQA is on achieving customer satisfaction throughcontinuous quality improvement and setting of a standard for businessexcellence (NIST, 1998). The core values and concepts of MBNQA areembodied 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. Theyemphasise the importance of a leadership focus on strategy and customers, andunderline that senior leaders must set company direction and seek futureopportunities for the company. Human Resources Focus (Category 5), ProcessManagement (Category 6) and Business Results (Category 7) represent theresult triad and have a total score of 650 points. They stress the company'semployee and key processes to accomplish the work of the organisation thatyields its business results. Information and Analysis (Category 4) has a score of80 points, and serves as a foundation for analysing the performancemanagement system that is critical for improving company performance and

competitiveness. These seven criteria are made up of results-orientedrequirements and focus on business results. Moreover, they support goal-baseddiagnosis and adopt a systems approach to maintaining company-wide goalalignment (NIST, 1998). A foundation for performance improvement is a self-assessment orientation and this is achieved through a heavy weight onbusiness results in the scoring system (Reimann and Hertz, 1993; Affisco et al.,1997; NIST, 1998). Regarding the ISO 9001 standard, it is merely process andcustomer focused, and relies on the ability of organisations to perform inaccordance with the contracts with their customers. A heavy orientation


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Malcolm

BaldrigeNationalQualityAward

ISO9001:1994Standard

ISO14

001:1996Standard

1998criteria(pointvalues):

Clausereferences:

Clause

references:

1.

Leadership(110)

4.1.1

Qualitypolicy

4.2

E

nvironmentalpolicy

2.

Strategicplanning(80)

4.2.1

General

4.1

G

eneralrequirements

4.2.3

Qualityplanning

4.3

P

lanning

4.3.2

Responsibilityandauthority

4.3.1

E

nvironmentalaspects

(Legalrequiremen

tsaddressedin4.4.4

)

4.3.2

L

egalandotherrequirements

(Objectivesaddressedin4.1.1

)

4.3.3

O

bjectivesandtargets

4.2.2

Qualityplanning

4.3.4

E

nvironmentalmanagementprogramme(s)

3.

Customerandmarketfocus

(80)

4.3

Contractreview(communicationwithstakeholders)4.4.3

C

ommunication

4.1.3

Managementreview

4.6

M

anagementreview

4.

Informationandanalysis(80

)

4.5

Documentanddatacontrol

4.4.4

E

nvironmentaldocumentaion

4.2.2

Qualitysystempr

ocedures

4.4.5

D

ocumentcontrol

5.

Humanresourcefocus(100)

4.1.2

Organisation

4.4

Im

plementationandoperation

4.1.2

Organisation

4.4.1

Structureandresponsibility

4.1

8Training

4.4.2

T

raining,awarenessandcompetence

6.

Processmanagement(100)

4.3

Contractreview

4.4.6

O

perationalcontrol

4.4

Designcontrol

4.4.6

O

perationalcontrol

4.6

Purchasing

4.4.6

O

perationalcontrol

4.7

Controlofcustom

er-suppliedproduct

4.4.6

O

perationalcontrol

4.8

Productidentificationandtraceability

4.4.6

O

perationalcontrol

4.9

Processcontrol

4.4.6

O

perationalcontrol

4.1

0Inspectionandtes

ting

4.5

C

heckingandcorrectiveaction

4.1

1Controlofinspection,measuringandtest

equipment

4.5.1

M

onitoringandmeasurement

4.1

2Inspectionandtes

tstatus

4.5.1

M


4.1

3Controlofnonconformingproduct

4.5.2

N

onconformanceandcorrectiveandprev

entiveaction

4.1

4Correctiveandpreventiveaction

4.4.7

E

mergencypreparenessandresponse

4.1

5Handling,storage,packaging,preservationand

delivery

4.4.6

O

perationalcontrol

4.1

6Controlofquality

records

4.5.3

R

ecords

4.1

7Internalqualityaudits

4.5.4

E

nvironmentalmanagementsystem

audit

4.1

9Servicing

4.4.6

O

perationalcontrol

4.2

0Statisticaltechniques

4.5.1

M


7.

Businessresults(450)

4.1.3

Managementreview

4.6

M

anagementreview

Table Cross-reference of tMBNQA criteria a

the ISO 9001 anISO 14001 elemen


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towards operating processes is emphasised in the standard (Affisco et al., 1997).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 thedevelopment and implementation of an environmental management system

(EMS). It addresses the needs of a broad range of interested parties and theevolving needs of society for environmental protection and sustainabledevelopment. EMS audits of organisations may be commissioned internally orby external regulatory or contractual entities, and they stress primarily theenvironmental policies and the performance in achieving them (Affisco et al.,1997). ISO 14001 also contributes significantly to the process management asrequired 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 onthe required capabilities. ISO 9001 provides a structure for defining andimplementing a baseline quality assurance system that is essential forlaunching continuous improvement processes and techniques. Similarly, theemphasis of a successful EMS is on continuous improvement in achieving anenvironmental policy that is grounded in the concepts of pollution preventionand sustainable development (Cascio, 1996; Affisco et al., 1997). A documentedsystem is thus a fundamental requirement for MBNQA, ISO 9001 and ISO14001. The structure, responsibilities, practices, procedures, processes andresources for implementing quality and environmental policies, objectives andtargets should be co-ordinated with existing efforts in other functional areas ofthe organisation. Many of the ISO 9001 and ISO 14001 standard requirementscan 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 ofsimilarities in structure and documentation between them. However, someadditional assessment activity and effort on the part of the auditing team maybe required to evaluate a management system that has been expanded to covermore aspects of a company's operations. Specific work still remains to be doneto develop a plan for reconciling the disparate impact on organisations offailing to fulfil the MBNQA criteria and obtain the ISO 9001 registration versusnon-compliance with environmental regulations (Affisco et al., 1997). Both ISO9001 and ISO 14001 constitute an integral part of an organisation's overallmanagement system. When blended with the MBNQA criteria, together they

provide a reasonable framework to help an organisation achieve functionalclarity and reach its goals. They also place a great emphasis on self-assessmentin achieving quality and business performance, business results andmanagement excellence.

Building a self-assessed quality management systemThere are significant opportunities for integrating MBNQA with ISO 9001 andISO 14001. The principles of TQM as implemented with the MBNQA criteriacan be used as an umbrella under which the integration can proceed along with


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efficient self-assessment. According to the European Foundation for QualityManagement, self-assessment is a comprehensive and regular review of anorganisation's activities and results against a systematic model of businessexcellence (EFQM, 1997). The assessment process allows the organisation to

discern clearly its strengths and the areas in which improvements can be madeand culminates in planned improvement actions that are monitored forprogress. It allows an organisation to monitor on a regular basis what activitiesare going well, those which have stagnated and what needs to be improved(Beasley, 1994; van der Wiele et al., 1997).

The building of a self-assessed quality management system (SQMS) shouldstart with well-defined corporate values and mission so that all stakeholderscan visualise the commitment, culture and core values of an organisation.Figure 1 shows the logic flow of the building and development of the proposedSQMS. Senior management should initiate their leadership, and develop clearcompany goals and quality objectives consistent with the company's mission.Core quality concepts and elements (such as leadership, strategic qualityplanning, design quality, speed and prevention, people participation andpartnership, fact-based management, continuous improvement, and customerfocus and satisfaction) would then be identified, and together as a systemaddressed to well-defined and designed processes. These processes wouldencompass the planning of new products or services with zero defects,employee and supplier involvement and participation, training and education,rewards and recognition as well as the quality of work environment (Pun,1998).

Competitive performance evaluations and benchmarking would directly

address continuous improvements and changing customer requirements, withthe aid of analytical tools and problem-solving techniques (such as statisticaltools, cause-and-effect diagrams and relations diagrams). The findings wouldthen be used to formulate a process management plan that interweaves theobjectives, strategies and implementation aspects of quality programmes,projects and tasks. Both the environmental and the safety and health standardswould be included along the conformity requirements of the ISO 9000Certification as they are all embraced by TQM philosophy. The company canthen document quality policies, processes and procedures into the system, anduse them as a platform for continuously improving the quality of products orservices that customers want (Pun, 1998). Having regard to the different

business situations, the management can decide on either taking small-stepprocess improvements using Kaizen approach, or radical process changesusing Business Process Re-engineering or both depending on whether theymay be needed separately and collectively.

In integrating a self-assessed QMS, organisations should concentrate andbuild on what already exists, as opposed to developing large manuals andoperating procedures for each SQMS sub-element. They should also put cross-functional teams to perform systems integration on the documentation side andincorporate quality, environmental and safety issues effectively (Beechner and


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Senior

executiveleadership

System

Planning

Conduct assurance,performance

analysis

Quality assurance,environmentalprotection and

safety requirements

Organisationalenvironments,

resources andconstraints/limitations

Define corporatevision and mission

Develop companygoals and objectives

Identify criticalsucess factors

Determine criticalprocesses

Formulate processmanagement plan

Strategicplanning

alignment andbenchmarking

Employ qualityimprovement tools

and techniques

Quality improvement,environmental

conservation andsafety concerns

Operation,finance, markets

and legal concerns

Evauationcriteria andguidelines

Incorporate keyelements of qualityand environmental

management systems

Develop integratedquality management

programmes

SystemIntegration

SystemInstallation

Use Kaizensmall-step process

improvement

Adopt big-stepbusiness process

reengineering

Install a self-assessedquality management

system

Streamline systemexecution

and development

Achieve businessresults andperformanceexcellence

Documentcontrol

Managementreviews and audits

Feedback and

System refinement

Core concepts(e.g. customer-focus,

and continuousimprovements)

Figure 1.Logic flow of SQMSbuilding anddevelopment


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Koch, 1997; McCully, 1997b). Detailed system implementation should beplanned, taking in the SQMS criteria and the considerations of time schedules,budgets and resource allocation. To avoid falling into the trap of developingseparate and distinct procedures for each function that has no link to other

facets of the integrated system, effective management reviews and audits of theself-assessment results can help streamline the SQMS development process(Hale, 1997). Moreover, possible feedback can recycle back to the planning andintegration stages for further refinement of the SQMS building anddevelopment. Apart from those technical aspects, the managementcommitment and employee involvement efforts are governing the success ofSQMS. Proper building and development of SQMS can help organisations tobetter safeguard their sustainable business results and achieve performanceimprovement and excellence.

A systems perspective of SQMSThe SQMS adopts the evaluation principles and framework compatible to thatof MBNQA (Brown, 1996; Pun, 1998). However, in order to have wider systemintegrity, the SQMS extends its categories of evaluation criteria from seven toten. They include Senior Executive Leadership, Strategic Planning andAlignment, Customer Value and Market Focus, Strategic Information andAnalysis, Human Resource Focus, Process Analysis and Management,Operations and Business Results, Employee Satisfaction, Supplier Quality andRelationship and Environmental Impact on Society (Pun, 1998). These criteriahave 33 sub-criteria, and are primarily designed for self-assessment of acompany's performance on an ongoing basis and internal benchmarking of

business results. They are built upon the core quality concepts and integratewith each other in the SQMS framework, as illustrated in Figure 2. The use ofSQMS can also be extended for external comparisons with other organisationsthat adopt similar self-assessment principles and framework.

Apart from the integrated system ingredients of ISO 9001 and ISO 14001, theSQMS process has four critical elements, including the driver, the system, themeasures of progress and the goal. These elements govern the operations ofSQMS as that of MBNQA (Brown, 1996; NIST, 1998). Senior ExecutiveLeadership is the driver. It creates the core SQMS concepts that drive thesustained pursuit of customer value and improvement in corporateperformance. In other words, if the management does not want self-assessment

to happen, it will not happen. The system comprises the well-defined anddesigned processes for meeting customer, quality and performancerequirements. It addresses four SQMS criteria that include Process Analysisand Management, Human Resource Development and Management, StrategicPlanning and Alignment as well as Strategic Information and Analysis. Theystress the company's employee and key processes to attain business results andimprove business performance. The measures of progress provide a results-oriented basis for channelling actions to delivering ever-improving CustomerValue and Market Focus and company performance in Employee Satisfaction,


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Driver

Mea

suresof

Progress

Senior

Exective

Leadership

(110points)

1.

Core

Concepts

Fact-Based

Management

People

Participation

Quality

Performance

Customer

Focus

Continuous

Improvement

System

Senior

Planningand

Alignment

(90points)

2.

Senior

Information

andAnalysis

(80points)

4.

Human

Resource

Focus

(100points)

5.

Process

Analysisand

Management

(100points)

6.

Self-assessed

Quality

Management

System

Quality

Assurance

Requirements

Environmental

Protection

Requirements

Safetyand

Health

Requirements

Cu

stomer

Valueand

Mark

etFocus

(80

points)

3. E

nvironmental

Im

pacton

Society

(5

0points)

10.S

upp

lierQuality

andR

elationship

(60points)

9.

Em

ployee

Satisfaction

(70

points)

8.

Operationsand

Busin

essResult

(27

0points)

7.

Core

Values

Customer

Satisfaction

Safetyand

Environmental

Performance

Customer

Retention

MarketShare

Gain

Financiala

nd

Productivity

Improveme

nt

Waste

Reductionand

Elimination

Goal

+ +

Figure 2.A systems perspectiveof SQMS


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Supplier Quality and Relationship, Operations and Business Results as well asEnvironmental Impact on Society. Moreover, the setting of a self-assessmentstandard for business excellence is the goal of the whole SQMS processin relation to improving business performance, satisfying customers'

requirements, gaining new customers and increasing market shares.Furthermore, the scores of SQMS criteria are adjusted to give a total score of

1,000 points as adopted by MBNQA (Pun, 1998). Table III depicts a score listingof the SQMS criteria versus the MBNQA criteria. Following the TQM-orientedevaluation principles adopted by MBQNA, the SQMS criteria are derived basedon the company's performance, in terms of the evaluation requirements of thesystem, the deployment of the company's efforts and resources and also theoperations and business results achieved. Both MBNQA and SQMS criteria areresult-oriented, and used to measure performance on a wide range of keybusiness performance indicators (such as customer, product and service,operational and financial). However, SQMS is primarily tailored to helporganisations to achieve efficient self-assessment of their performance, and thisdoes not necessarily lead to applying any awards like MBNQA. As comparedto MBNQA, the SQMS criteria address specified self-assessment requirementson Business Results and other categories of criteria (such as Strategic Planning,Customer Value and Market Focus, Information and Analysis and ProcessManagement) though their assigned scores are largely the same. SQMS usesfour individual criteria of Operations and Business Results, EmployeeSatisfaction, Supplier Quality and Relationship, and Environmental Impact onSociety to assess the overall performance of business results as that ofCategory 7 in MBNQA. SQMS also relocates the assigned scores of certain

evaluation sub-criteria and adds new elements (such as alignment of businessprocesses, determining customer requirements, documentation and audit,continuous improvement of processes and others) to reflect the importance ofindividual criteria. The scoring mechanism of SQMS can provide an objectiveself-assessment that helps gain consensus on the strengths and weaknesses ofthe current practices and pinpoint improvement and breakthroughopportunities for the organisations. In addition, SQMS is developed to becompatible with other management system disciplines. Both internal andexternal benchmarking and organisational learning can also be facilitated. TheSQMS criteria can thus provide a feasible self-assessment framework aimingfor performance excellence.

Implementation of SQMSA SQMS cannot be implemented overnight and with little thought. Variouselements and practices have got to be in place, and management needs tounderstand the questions underpinning the quality management system onwhich self-assessment is being made. What has not been implemented cannotbe assessed, and zero scoring is self-defeating and de-motivating. The entireorganisation or individual functions can be discouraged as a result of lowscores, or there can be a tendency to score higher against the SQMS criteria.


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Both over-optimistic and under-pessimistic pictures could be created, andinternal auditors may not have sufficient experience to know what they aretalking about and looking for. Research and practical evidence point to the factthat improper self-assessments can cause organisations to be pushed along

blind alleys and to take initiatives which are not suited to their current state ofTQM development (Beasley, 1994; van der Wiele et al., 1997). Therefore, theimplementation of SQMS demands a serious investment in resources, and itwill take time to develop an approach throughout the organisation that fits thespecific situation of the company. There is a pressing need for a structuredapproach to implementing the SQMS in a way that guides all critical elementstowards the level of business excellence defined by the management. Fourteensteps are identified to help organisations to encapsulate the conformityrequirements of quality and environmental management systems into the waytheir business is managed (Pun, 1998). Figure 3 shows a logical sequence ofthese steps within the SQMS process. The sequence also allows comprehensionrecycles and feedback of individual steps regarding performanceimprovements and breakthroughs in the process. Internal benchmarking andexternal comparison of self-assessment results are also made possible with theSQMS criteria. In the ensuing section, an implementation case of SQMS isdescribed incorporating these 14 steps.

SQMS implementation: an application caseEstablished in 1990, the Manufacturing Engineering Laboratories (MEL) ofCity University of Hong Kong have gone through a number of structural andorganisational expansions to become a complex organisational entity. The

laboratories have at present a floor area of about 3,500 square metres with hi-tech equipment worth over seven millions of US dollars and have more than 30technical staff. These laboratories have been serving thousands of users andcustomers, and providing laboratory services for a diverse set of engineeringtraining, pure and applied research, as well as educational activities for theuniversity and the local industries in Hong Kong. To deliver good qualitylaboratory services with total user and customer satisfaction was the missionof the laboratories (Chin et al., 1996). In 1994, the Head of the ManufacturingEngineering Department, Professor K.V. Patri, urged the launch of a qualityimprovement programme, Quality Campaign In Manufacturing EngineeringLaboratories (QCIMEL). A results-oriented process approach was adopted to

implement this ongoing programme (Patri, 1994). The design and execution ofthe programme coincided to a considerable extent with the SQMS assessmentcriteria and requirements. It has seven stages in line with the SQMS 14 steps(as shown in Figure 3) which is described as follows.

The establishment stageStep 1: Define corporate values and missionThe vision and mission of the organisation has to be translated into goals andstrategies which have to be linked with the approach the organisation is using


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for its self-assessment. The management of the laboratories has set forth a clearmission statement as to ``develop a lively culture towards quality improvementthrough effort, so that the traditional, hierarchical and top-down ethos oflaboratory management could be complemented by a worker-oriented andbottom-up activity'' (Patri, 1994). This allowed all laboratory staff (includingacademic staff, administrative staff, technicians and labourer), students,suppliers and visitors to visualise the mission, culture and commitments of thelaboratories.

Stage VII:

Improvement/Breakthrough

Stage VI:

Recognition

Stage V:

Audit

Stage IV:

Execution

Stage III:

Investigation

Stage II:

Promotion

Stage I:

Establishment

Qua

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14.Achieve

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Quality development Quality maintenance Quality improvement

Promotegood practicesand reinforceachievement

12. Recognisequality effortswith rewards

and motivation

13.

Measure results andbenchmark achievements

10.

Standardise improvedprocedures and practices

11.

Execute planned actions andrecommend positive changes

9.

Suggest improvement andbreakthrough actions

8.

Manage critical processesand performance

7.

Provide trainingof tools and

methods

5. Deploy andempower staff

capabilities

6.

Promote quality cultureand team-building

4.

Develop objectives andidentify critical process

3.

Define corporatevalues and mission

1. Establish SteeringCommittee

2.

ISO9000andISO14000Standards

Figure 3.Fourteen steps of SQMSimplementation


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Step 2: Establish steering committeeA steering committee was formed in the fall of 1994 to design, plan and managethe quality programme. It was composed of a chairman and six seniorlaboratory staff. The committee members evaluated the current status of the

laboratories, determined its strengths and weaknesses, sought opportunitiesfor improvements, prepared quality plans with the divisions and personnelconcerned, and provided new motivation for the improvements. They are, forinstance, to identify improvement needs at both managerial and shop-floorlevels; to obtain agreements between the management and shop-floor staffregarding the scope and objectives of improvement efforts; and to develop anemployee-led process for improvement.

Step 3: Develop objectives and identify critical processesThe steering committee developed quality goals and objectives, andperformance improvement guidelines in conjunction with the corporate valuesand mission. The success elements were investigated and critical processesidentified. This covered the design, planning, operations, delivery,maintenance, control and monitoring aspects, as well as the performance auditsof the processes, products and services provided by the laboratories. Thecommittee made the general descriptions of the self-assessment criteria morespecific to fit their situation and giving them meaning within the context of theoperations. It was important for the management, supervisory and otherlaboratory staff to know which constituent parts require development ofdocumentation and conformity to quality, environmental, and safetymanagement standards.

The promotion stageStep 4: Promote quality culture and team-buildingA series of quality-awareness seminars and experiences-sharing talks wereconducted for laboratory staff by both internal trainers and invited externalquality professionals from industries. Quality management concepts and teampractices (such as bottom-up quality culture, leadership, team building andquality control circles) were conveyed, and technical visits to the leading localcompanies were arranged. Three work teams and several task forces wereformed according to their skills and different operational requirements.Facilitators were assigned by the steering committee to help direct the

administration and improvement efforts of individual teams.

Step 5: Provide training of tools and methodsTeam members received sufficient training in applying practical skills,methods and techniques (such as problem solving techniques, quality controltools, 5S concepts and implementation, the use of the new or revised workinstructions, reporting techniques and meeting management) in their job-related areas. The quality policies in laboratories and the conformityrequirements of ISO 9000 and ISO 14000 were included in the training


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programmes. Regular safety workshops were arranged to strengthen the teammembers' knowledge and skills on handling quality and safety problems. Inaddition to in-house training, team leaders and some supervisory staff weresent for outside assessor and leadership training in order to create expertiseand gain experience in the self-assessment process. These staff membersformed the critical mass within the organisation to start internal assessortraining for other team members.

Step 6: Deploy and empower staff capabilitiesThe management have delegated authorities and deployed resources to teamsand work forces in conjunction with the execution of improvement tasks andactivities. The Steering Committee reviewed the progress of individual teams,advising any amendments to the management for better deployment ofresources. Motivation and morale support were initiated from the top, and then

put forth the different divisions of the laboratories. Co-ordination and co-operation amongst different functional areas (such as design, operations andmaintenance) were encouraged and reinforced. Moreover, it was also foundimportant to empower employees with authority and sufficient resources, inparticular allowing supervisory staff and team leaders the necessary timerequired for the self-assessment activities.

The investigation stageStep 7: Manage critical processes and performanceWith clear guidance and support, all work teams and task forces wereencouraged to initiate projects and plans regarding the improvement of

processes, operations and procedures in their work places. The corerequirements of design quality, prevention, conformance and documentationwere emphasised. In order to diagnose the improvement opportunities andanalyse problematic areas, information of processes performance wereacquired, and relevant standards, specifications, tools and methods wereemployed. The identified items were prioritised according to the users' andcustomers' requirements, the time and resource constraints as well as theenvironmental, safety and hygiene concerns. The process plans of self-assessment were then developed and the adopted methodologies were agreed.

The execution stageStep 8: Suggest improvements and breakthrough actionsBoth improvement and problematic areas were segregated to determinewhether the ``Kaizen-type'' of improvements or breakthrough actions or bothwere applied. There have been a number of positive suggestions on theimprovement of work environments (particularly in safety and hygiene) andminimisation of work inefficiency. Detailed action plans were scheduled withthe consensus and support from all functional areas concerned. Appropriateprocedures were prepared and work instructions revised in line with the users'


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feedback and requirements (such as due dates and schedules of laboratoryexperiments).

Step 9: Execute planned actions and recommend positive changes

A number of improvement projects of both technical and non-technical nature(for instance, the Users' Lockers Improvement Project, the Road Sign Project,the Laboratory Communication System and the Laboratory Security System)have been implemented successfully in the laboratories. Improvement andcorrective actions were carried out and their progress was reviewed. Theresults addressed team effectiveness, which in turn stimulated team efforts andencouraged feedback in performance improvement. Accompanied with thesepositive changes, improved processes and guidelines for documentation control(such as the approval, issue, distribution, updating and retrieval of documents)were established. Co-ordination and support from other functional areas andacademic staff were also reinforced.

The audit stageStep 10: Measure results and benchmark achievementsRegular performance assessments and audits were carried out and users'feedback were stressed. Deviations from the predetermined objectives wereexplained, and achievements were benchmarked against other laboratorieswithin the university and other ` best-in-class'' performances in industry.Improvements of quality efforts were attained through better discipline andorganisation of workplace and maintenance of standardised conditions in thelaboratories. Continual management reviews of results also enforced the

performance improvement effectively. Moreover, self-assessment practiceshave become regular activities to measure the quality maturity of thelaboratories.

Step 11: Standardise improved procedures and practicesAll positive changes and improvements were audited in line with the corporatemission and operational objectives. They were documented, and eventuallybecame new operational and self-assessment processes. The results of self-assessment were used to refine the quality goals, enhance customer values andeliminate customer complaints. Besides, useful data and information wereprocessed and shared among all functions to create organisational learning

throughout the laboratories.

The recognition stageStep 12: Promote good practices and reinforce achievementsPerformance improvements encouraged the positive changes in quality cultureacross the laboratories. Good quality practices were reinforced with emphasisbeing placed on enhancement of customer value, employee satisfaction,supplier relationship, safety, productivity and operational performances of thelaboratories. The self-learning among laboratory staff has been stimulated, and


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the creation and transfer of good practices throughout the laboratories was alsofacilitated.

Step 13: Recognise quality efforts with rewards and motivation

Continuous quality efforts were explicitly rewarded. Management appreciationhonoured these work teams and individuals for recognition of their efforts inachieving predetermined targets of improvement performance. This stimulatedthe teams and individuals to perform even better, and also encouraged others toparticipate actively in the improvement activities. Positive recognition andfeedback of quality efforts were important for organisational learning and asstimulus to create structured, planned and continued improvement activitiesthroughout the laboratories.

The improvement/breakthrough stageStep 14: Achieve performance excellence through self-assessmentsThe management has recognised the importance of self-assessments and linkedthe achievements to the related review process and strategic planning for thelaboratories. The self-assessment procedures were properly establishedaccording to the periodically updated quality manual. The QCIMELprogramme has created a motivating environment in which staff membersvoluntarily applied more discretionary effort and boosted their performance.Eventually, individual teams decided the processes and improvement activitieswhich they committed to, and became the autonomous entities to work upontheir own improvement projects and plans. In addition, a committedmanagement role also encouraged total employee involvement and facilitated

group efforts on quality development, maintenance and improvement effortsthroughout the laboratories.

Evaluation of SQMS implementationSeveral variables and a host of factors (such as organisational resources,commitment of management, state of operations, health of equipment, impactof changes, communication between departments, time spent on training,employee resistance, conflicting interpretation and so on) affected theimplementation pace of the quality programme. Its effectiveness was evaluatedby the management, taking all these variables and factors into considerationand emphasising customer satisfaction, safety, operational and financial

performance. The benefits of QCIMEL implementation have beenoverwhelmingly positive in the laboratories, especially in encouraging culturechange, achieving performance, enhancing safety operations and alleviatingthe fire-fighting problems (Chin et al., 1996; Pun, 1998). Successful cases ofquality and productivity improvements were becoming increasingly numerousand impressive. Staff were actively involved in the ongoing improvementprocesses. Their attitudes have been changed positively towards qualityimprovement, their morale and efficiency been improved on shared tasks andteam activities. These changes revolved around a cultural shift to total quality


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management and total employee involvement. Furthermore, new improvementprojects (for instance, the WWW-based Inquiry System and the MEL LibrarySystem for Purchase Catalogue) were developed, and many suggestions andcorrection actions were implemented. Defects and non-conformance were

reduced at various operation levels from designs and resource planningthrough installation, to servicing and administration. Self-assessment practicesstimulated performance improvement and created a strong link to the businessresults of MEL. Members of the Steering Committee have recently rated theMEL performance in a range of scores from 700 to 750 out of 1,000 points on theSQMS scale. Considerable high scores were achieved in several areas using theSQMS criteria of Senior Executive Leadership, Human Resource Focus, ProcessAnalysis and Management, Operations and Business Results and EmployeeSatisfaction. The results encouraged further initiatives for continuousperformance improvement and helped the laboratories to re-track its currentoperations and deliver ever-improving value to users and customers(Pun, 1998).

ConclusionWith the proliferation of several quality awards and standards, manyorganisations have taken the initiative to employ different awards andstandards in one form or another to sustain competitive edge. The ultimateobjective of a self-assessed quality management system is to assist theorganisation in its quest for corporate performance, business results andfinancial health. It can be achieved through proceduralising organisationalactivities and increasing uniformity and conformity of repeated tasks (van der

Wiele et al., 1997). Quality-led organisations should have clear core values andachievable objectives. The management should drive the quality initiatives,and link them to the TQM-oriented assessment criteria and compliancerequirements. However, if quality efforts focus primarily on conformity anddocumentation, there may be separation between quality management andoverall business management, reversing a trend toward their better integration.It is therefore best to establish and maintain a total systems approach withstrong self-assessment orientation. Otherwise, this may result in fragmentationof efforts, slow response and weak productivity growth within theorganisations (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 Wieleet al., 1997). The proposed SQMS codifies the principles of TQM in clear andaccessible language, and also provides companies with a comprehensiveframework for assessing their progress towards the new paradigm ofmanagement and commonly acknowledged goals of customer satisfaction andincreased employee involvement. It adopts the evaluation principles andframework compatible to that of MBNQA and has a wider system integrity.The SQMS criteria can be used for self-assessment of a company's performanceon an ongoing basis and internal benchmarking of business results. Their uses


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