In the previous article in this series (June 2001 issue), I introduced the concept of "Fusion 
                                                    Management" as an integrating process among the numerous quality and business process improvement initiatives introduced during the last half-century. These various approaches to improvement 
                                                    tend to fall into three major categories: documented management systems based on consensus standards or regulatory requirements (discussed in this article); statistical tools to measure and 
                                                    control quality processes; and performance excellence models, often based on award criteria, to evaluate both the elements of a management system and the business results provided by that system.
                                                     
                                                        
                                                            Hierarchy of Business Processes
                                                                 
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                                                     In earlier times, craftsmen would design, manufacture and ensure the quality of their products. A much smaller marketplace paid for these products according to their 
                                                    perceived value and the skill involved in their workmanship--their level of quality.  The transformation of our economy from agricultural 
                                                    to industrial during the late 19th century gradually brought about a definition of quality pertaining to mass production techniques. With the advent of larger 
                                                    manufacturing complexes, workers performing similar tasks were grouped together and supervised by a foreman, who then assumed responsibility for the quality of 
                                                    their work. Through the 1920s and 1930s, test and inspection functions grew in size and were eventually separated from production. Manufacturing was no longer 
                                                    responsible for the quality of the product.   During the 20th century, as life became more complicated, government refined the 
                                                    notion that its citizens should be protected from the excesses of free enterprise. Little by little, laws, regulations, guidelines and consensus standards crept into our 
                                                    lives, and a new mindset began to develop: the notion that government must set quality standards where the private sector has left a void or where the health, safety 
                                                    and welfare of the citizens are at risk. For example, in the United States, the Department of Agriculture provides safeguards for the daily food supply; the Food 
                                                    and Drug Administration protects against unsafe food, drugs, medical devices and cosmetics; and the Department of Labor is responsible for the occupational health and safety of workers.  
                                                     After World War II, the needs of the Cold War led to more formal expansions of quality system requirements by the Department of Defense through its Military 
                                                    Specification MIL-Q-9858, "Quality Program Requirements," published in 1959. Military, and then space, standards were soon followed by Good Manufacturing 
                                                    Practices, issued by the FDA for pharmaceuticals and medical devices, and the Nuclear Regulatory Commission's regulations for nuclear power plants. 
                                                     Industry's major problem with government-imposed quality is the perception of excessive levels of documentation required by regulators, whose mission it is to 
                                                    ensure that industry has complied with the requirements. The pyramid above shows the typical structure of a documented quality management system, regardless of the 
                                                    standard or regulation imposed. The primary means of enforcing these systems is a network of audits--by corporate auditors, regulatory agencies, prime contractors on 
                                                    their suppliers, and third parties--to provide objective evidence that documented systems are in place, meet the requirements and are being followed. 
                                                     Gradually, as global trade expanded, it became necessary to develop quality management systems that would be internationally accepted and enforced, thus 
                                                    promoting free movement of goods across national boundaries. The International Organization for Standardization, with headquarters in Geneva, Switzerland, and 
                                                    more than 100 participating countries, is the coordinating agency for cross-national standards. ISO 9001 is the central quality management document in the 
                                                    international consensus standards system. Gradually, as part of conscious efforts to "harmonize" quality system standards and reduce the amount of documentation and 
                                                    number of audits organizations must undergo, various governmental requirements have been replaced by ISO standards, and many industries have developed sector-specific standards based on ISO 9001.
                                                      The process of ensuring quality has multiple components, including design verification, process validation, process control and product testing, in addition to 
                                                    the quality management system. If some components are skipped or improperly deployed, quality is diminished. An audit can usually tell if you have a documented 
                                                    system and are following it; it cannot readily detect design or process control flaws. Hence, management systems represent an excellent base upon which to build 
                                                    quality, but they do not, by themselves, ensure quality processes or products. Moreover, although they call for continual improvement, they provide neither the 
                                                    tools for improvement nor the criteria for performance excellence. Hence, there exists a need for other approaches, which I will discuss in future articles.   About the author  Stanley A. Marash, Ph.D., is chairman and CEO of STAT-A-MATRIX Inc. E-mail smarash@qualitydigest.com . Fusion Management is a trademark of STAT-A-MATRIX Inc. ©2001 STAT-A-MATRIX Inc. All rights reserved.  |