This document discusses quality management systems and how they can provide competitive advantage. It covers: 1) Quality management systems involve designing, implementing, and improving interconnected processes to effectively meet customer needs and organizational objectives. 2) Key aspects of a quality management system include system planning, design, operation, control, evaluation, and continuous improvement. 3) An organization's quality assurance and quality control departments work to ensure standards are met through requirements analysis, auditing, and corrective actions. 4) Consistent, well-defined processes are important for delivering quality products and services, and are enabled by procedures, standards, and documentation.

1. Competitive Advantage through Quality Management System
03 : Scope of System and Procedures
Wahyu Prasetianto
March 2010
wahyuprasetianto@yahoo.co.id
save a prayer
Quality Management System ‐ Improvement

2. Conceptual Background
Other factors
Other factors
Customer (external
System
System & internal) COMPETITIVE
COMPETITIVE
effectiveness satisfaction ADVANTAGE
Other factors

3. A system is an ordered set of ideas, LIFE CYCLE OF SYSTEM
principles and theories or a chain of
operations that produce specific
results
Systems approach means managing
t e o ga at o
the organization as a syste o
system of
processes so that all the processes fit
together, the inputs and outputs are
connected, resources feed the
p
processes, performance is monitored
,p
and and all parts work together to
achieve the organization’s objectives.
Organization must identify,
g y,
understand, and manage their
system of interrelated and
corresponding processes to improve
the effectiveness and efficiency of the
y
organization in the long term.
In order to implement a system
approach in organization requires five
pp g q
phases : system design, system
construction, system operation,
system evaluation, system
maintenance, and system
, y
improvement.

4. Key Performance Indicator of System Effectiveness
System System System System
availability reliability suitability effectiveness
Probability Probability Probability
that system that system that system
will will
adequately will fulfill set
d t l
adequately
function objective,
function
within a given when
time frame functioning

5. Typical responsibilities of system function within organization
•System
2 •System
4 •System
6
Design •System Operation •System Maintenance •System
Construction evaluation Improvement
1 3 5
Set‐up
Objective Review Deployment Capability Analysis System review Identification
Documentation
Performance
Identification Installation Data gathering
D t th i Procedure review
P d i Solution
S l i
Scorecard
Process Mapping Qualification Preventive & Updating Change
Process control
Corrective action documentation Control
Integration & Preventive &
Control Criteria
Standardization Corrective action
Management Plan Risk System
Ri k S
Management
SYSTEM ASSURANCE
SYSTEM PLANNING SYSTEM CONTROL

6. TYPICAL ROLE OF SYSTEM DEPARTMENT WITHIN ORGANIZATION
System
System planning
assurance
System
control
System effectiveness
System effectiveness

7. Scope of Quality Assurance System
ORGANIZATION’S
REQUIREMENTS
PROCESSES
REQUIREMENTS ANALYSIS
REQUIREMENTS ANALYSIS
ASSURANCE PLANNING notification
ASSURANCE RESOURCE
ORGANIZATION
PRODUCT/SERVICE DESIGN Feedback result
AUDIT
RISK ANALYSIS
RISK ANALYSIS
Quality assurance departments are often
formed to provide both external parties (customer,
AUDIT OF INTENT Feedback
result
shareholder, stakeholder,
shareholder stakeholder governments) and
management confidence that quality will be achieved.
They are measuring the quality of the business and by AUDIT OF Feedback
doing so are able to assure management and IMPLEMENTATION result
customers of the quality of products and services. In
judg g the
judging t e adequacy o ope at o s, need to app y t e
of operations, eed apply the
relevant standards, legislation, code of practice and AUDIT OF
AUDIT OF Feedback
other requirements. PRODUCT/SERVICE result

8. Scope of Quality Control System
Quality control is a process for maintaining standards. Standards are maintained through
a process of selection, measurement, and corrective of work. Quality control prevents non-
conforming product/services being present in the quality of the product or service
delivered to customer. Quality control can be applied to p
y pp particular p
products/services, to
processes that produce the products, or to the output of the organization by measuring
overall quality performance of organization.
Requirement
Yes
Conforms
C f Product
P d t
Plan Do Check
? /Service
No
Corrective Remedial
Action Action

9. Concepts relating with process, procedure, and product
Success of organization to
deliver product or service
based on integrity and
Design and
g consistency of processes.
development
Consistency of process
resulted from controlled
condition, in term of :
‐
Enabler of consistency of
Process processes :
Procedure
Set of interrelated 1. Design and
Specified way to Product
carry out an
or interacting development
activites which Result of process
activity or a
transform input 2. Project improvement
process
into output
Project

10. Policies and procedures
Defines the overall intentions of the
CORPORATE POLICY organization regarding its purpose and
mission
Defines the strategy and boundary
OPERATIONAL POLICY conditions for business and work processes
Defines the actions and decisions required to
CONTROL PROCEDURES
CONTROL PROCEDURES control the fl
t l th flow of product/ information
f d t/ i f ti
through the processes.
OPERATING REFERENCE
GUIDES STANDARDS
PROCEDURES DOCUMENTS
Guidance in Describe how to Specify Provide data for
implementing tasks should be acceptance criteria use in actions and
p
policies,
, conducted for products,
p , making decisions
g
procedures or information,
standards processes and
services

11. COMPETITIVE ADVANTAGE
THROUGH QUALITY MANAGEMENT SYSTEM 03 : Scope of System and Procedures
QUALITY MANAGEMENT SYSTEM ‐ IMPROVEMENT