IEP 108 Quality Management Systems PDF

PAMANTASAN NG CABUYAO |IEP108 QUALITY MANAGEMENT SYSTEMS 1 Course Material No. 1 IEP 108-QUALITY MANAGEMENT SYSTEMS KEITH RALDEN M. AYOP Course Instructor  PAMANTASAN NG CABUYAO |IEP108 QUALITY MANAGEMENT SYS...

PAMANTASAN NG CABUYAO |IEP108 QUALITY MANAGEMENT SYSTEMS 1 Course Material No. 1 IEP 108-QUALITY MANAGEMENT SYSTEMS KEITH RALDEN M. AYOP Course Instructor  PAMANTASAN NG CABUYAO |IEP108 QUALITY MANAGEMENT SYSTEMS 2 Analyzing the Bottom Line: The Cost of Quality in Quality 1 Management Systems LEARNING OUTCOMES UNDERSTANDING THE COST OF QUALITY (COQ) CONCEPTS  Develop a comprehensive grasp of the Cost of Quality (COQ) framework, including its core components and significance within the realm of industrial engineering.  Cultivate the ability to articulate the value of COQ in aiding organizations to make data-driven decisions and optimize resource allocation, with a focus on its practical application in coursework and future industrial engineering projects. APPLICATION OF COQ ANALYSIS IN REAL-LIFE SCENARIOS  Gain practical insights and proficiency by dissecting real-life case studies and examples, demonstrating the tangible relevance and practical application of COQ analysis in actual business scenarios.  Also, develop to identify opportunities for enhancing product quality and reducing costs, enabling better problem-solving and decision-making in future internship or industrial engineering roles. PAMANTASAN NG CABUYAO |IEP108 QUALITY MANAGEMENT SYSTEMS 5 INTRODUCTION A. Cost of Quality was first introduced in 1956 by Armand V. Feigenbaum in an article in the Harvard Business Review. In addition, Cost of Quality (COQ) is a framework that organizations and industrial engineers use to measure the financial impact of quality-related activities. It includes categorizing and analyzing costs linked to maintaining quality during production or service delivery, divided into prevention, appraisal, internal failure, and external failure costs. Moreover, industrial engineers play a vital role in identifying, analyzing, and optimizing these costs to improve product quality, reduce operational expenses, and enhance overall efficiency within industrial and manufacturing settings. COQ analysis helps industrial engineers make data-driven decisions, leading to quality initiatives, cost reductions, and increased competitiveness in the industry. B. COQ empowers organizations to allocate resources wisely, enhance profitability, improve quality, gain a competitive edge, and make informed decisions while ensuring customer satisfaction and minimizing quality-related risks. The significance of Cost of Quality (COQ) lies in its role as a strategic tool that enables organizations to: - Optimize Resource Allocation - This allows for informed decision-making on resource allocation, focusing on areas that yield the highest return on investment. - Continuous Improvement - It encourages organizations to regularly assess and optimize their quality- related processes, leading to ongoing enhancements and efficiencies. - Customer Satisfaction - Satisfied customers are more likely to become repeat buyers and advocates for the organization. - Enhance Profitability - It redirects resources toward activities that improve product or service quality, reduce defects, and ultimately reduce costs. - Informed Decision-Making PAMANTASAN NG CABUYAO |IEP108 QUALITY MANAGEMENT SYSTEMS 6 - This informs leaders about the impact of quality-related choices and guides them in making effective decisions to enhance overall performance. C. REAL-LIFE CASE STUDIES OR EXAMPLES - Nokia's Quality Struggles and Downfall - Nokia's decline in the mobile phone industry provides a vivid real-life illustration of the intricate interplay between the Cost of Quality (COQ) and corporate success. The shift from feature phones to smartphones revealed critical lessons about the financial repercussions of quality management decisions. Moreover, Nokia's esteemed legacy rested on the reliability of its feature phones, nurturing global customer trust and loyalty. Unfortunately, the emergence of smartphones presented new quality-related challenges. - Key COQ Factors and Nokia's Downfall: - Quality-Related Costs: Nokia faced mounting costs associated with product returns, warranty claims, and customer dissatisfaction due to quality issues in smartphones. Thus, these costs, categorized as External Failure Costs in the COQ framework, played a pivotal role in financial decline. - Transition to Smartphones: Nokia's transition to smartphones introduced heightened quality demands but maintaining the same quality focus proved challenging. - Impact on Brand Reputation: Quality problems with Nokia smartphones damaged the company's reputation for reliability and trustworthiness. - Outcome - Nokia's inability to sustain its historical quality standards in the smartphone era resulted in escalating quality-related expenditures. - In 2014, Nokia's Devices and Services division was sold to Microsoft. - Lessons Learned - Quality-related costs, encompassing both preventive and failure costs, wield substantial influence over a company's profitability and brand reputation. PAMANTASAN NG CABUYAO |IEP108 QUALITY MANAGEMENT SYSTEMS 7 II. ANALYZING THE COMPONENTS OF COQ CATEGORIES A. COST OF GOOD QUALITY a. Prevention Cost - These are the costs that are designed to reduce the number of defects and minimize the issues in products or services. Examples: Design Prevention Market Research. used to gather information and analyze the company’s strategy to improve its product. - Market Research Cost of Good Quality. refers to the portion of COQ - Design Input associated with the expenses incurred to ensure that products or services meet quality standards and - Design for Six Sigma customer requirements. - Design for Prototype Testing - Design Validation Supplier Management Prevention - Supplier Assessment - Supplier Capabilities - Supplier Quality Planning Process Prevention - New Employee Screening - Training and Education - Preventive Equipment Maintenance - Raw Material Inspection b. Appraisal Cost – these are the activities of a company that is designed to identify defective products to ensure the customer, that they meet the quality requirements. Examples: Quality Control Testing - Inspecting Incoming Materials - Testing of Finished Goods - Depreciation of Testing Equipment - Equipment Inspection PAMANTASAN NG CABUYAO |IEP108 QUALITY MANAGEMENT SYSTEMS 8 B. Cost of Poor Quality This is the financial loss of the company when it gives its customers products or services that are not good enough. a. Internal Failure Cost - is the cost incurred because of identifying defects before they are shipped.  Causes of Internal Failure Cost Poor Quality Control Inspecting. assessing equipment and materials to identify errors. - Poor Quality Control. When a company doesn't have good systems to Cost of Poor Quality. represents the check for mistakes, those mistakes might not be found until the product portion of COQ linked to the expenses is already made, and then they must fix or throw away the product, which resulting from defects, errors, or failures in products or services. costs money. Appraisal Cost. assess and evaluate the - Inadequate Training. When employees don't receive proper training for quality of products or services during and their jobs, they might make mistakes that lead to defects or errors in their after production. work. - Lack of process standardization. When processes are not standardized, it can result in variations in product quality and mistakes. - Poor supplier quality. When a company depends on suppliers to provide the materials or parts it needs to make its products, and those suppliers give them low-quality materials or parts, it can lead to problems or mistakes in the final product.  Impact of Internal Failure Cost on Organization - Reduced Profitability. The money spent on fixing mistakes and dealing with unhappy customers takes away from the company's earnings. - Decreased Customer Satisfaction. When customers receive low-quality products or services, they are less satisfied with their experience. - Reduced competitive edge. When a company struggles to deliver products or services that meet customer’s expectations, it may end up losing customers to competitors who can do a better job. b. External Failure Cost - is the cost incurred as a result of defective products being shipped to customers.  Subcategories of External Failure Cost - Complaint Adjustment. All expenses related to investigating and fixing valid customer complaints are considered costs associated with products PAMANTASAN NG CABUYAO |IEP108 QUALITY MANAGEMENT SYSTEMS 9 that don't meet the required standards or specifications, often referred to as nonconforming products. - Returned product/material. This is the cost incurred when customers send back products or materials because they are faulty or not as expected. - Warranty charges. The expenses a company has to cover when they repair Internal Failure Cost. the cost incurred because of identifying defects before they or replace products that have defects during the warranty period. are shipped. - Liability cost. This is the money a company may have to pay if their External Failure Cost. the cost incurred products cause harm or damage, leading to legal claims and settlements. because of defective products being shipped to customers. - Indirect cost. The additional expenses associated with dealing with Quality Product. product that serves its external failures, such as customer complaints and returns, including main purpose of achieving the customer's things like customer support and handling returns aren't directly tied to satisfaction. fixing the faulty product itself. III. BENEFITS OF COQ ANALYSIS The Benefits of Cost of Quality (COQ) is the analysis of Cost of quality analysis plays a crucial role in decision-making, enhancing profitability, and improving satisfaction with work in businesses or in organizations. The following are the reasons why it has become beneficial to everyone. A. Informed Decision-making  This concept of cost of quality analysis can help us make better decisions, which in turn helps us get better results. We all know how essential decision-making is, but by following this concept, we can make better decisions. Additionally, it may help in prioritizing, allocating resources, and monitoring performance. The decision- maker can help to effectively allocate resources, prioritize who will need the most, and track whether the product's quality is improving or declining so that decision-makers can effectively decide what will work. B. Enhanced Profitability  By following the principle of cost of quality analysis, it is possible to reduce costs while still improving product PAMANTASAN NG CABUYAO |IEP108 QUALITY MANAGEMENT SYSTEMS 10 quality. In addition, the main reasons for the product's poor quality are also eliminated. C. Customer Satisfaction  In business, there is an important connection between customer satisfaction and quality. By sticking to the cost of quality analysis strategy, one can increase the dependability of one's product or business, which will encourage customers to choose the products or services you offer with confidence. In addition, it can lower costs associated with the goods or services since rework or complaints will be reduced, and by that, it can Informed Decision Making. the practice of using data, analysis, and gain a favorable customer perception in this manner. insights, such as those provided by COQ analysis, to make well-informed and As a future engineer, I observed that understanding and applying the cost of strategic choices within an organization. quality analysis can have a significant impact on our future careers and the External Failure Cost. the cost incurred organizations we will work for in the future. As future engineers, we can use this because of defective products being shipped to customers. cost of quality analysis to its full potential in our future decision-making on the Quality Product. product that serves its future path that we will take. It can lead us to more effective solutions, improve main purpose of achieving the customer's profitability, and increase the customer satisfaction of the future company that satisfaction. we will serve. I think it is a valuable thing that we must master as future industrial engineers because it can lead us to the future success of the company we will work for. IV. CONCLUSION In this comprehensive exploration of Cost of Quality (COQ), we've journeyed through essential aspects of quality management and financial analysis. Our exploration began with a solid foundation as we defined COQ and delved into its significance. We then ventured into real-life case studies, illuminating how COQ principles can shape the fate of companies in competitive industries. Moving forward, we navigated through the intricate components of COQ, distinguishing between the costs associated with ensuring quality (Cost of Good Quality) and those arising from quality failures (Cost of Poor Quality). We dissected these categories, from the preventive measures taken to maintain quality to the repercussions of internal and external quality failures. As stewards of efficiency and quality within organizations, industrial engineers play a vital role in applying COQ principles to drive informed decisions. We understand that COQ is not just a financial metric; it's a strategic tool that empowers us to optimize processes, minimize waste, and elevate the quality of products and services. Moreover, our exploration led us through real-life case studies, demonstrating how COQ principles can influence the fate of companies in dynamic industries. We learned from the successes and missteps of others, gleaning valuable insights that we can apply to our own industrial engineering projects. Lastly, as industrial engineers, we are not just guardians of processes; we are champions of quality. Embracing COQ analysis, we embark on a journey towards excellence in industrial PAMANTASAN NG CABUYAO |IEP108 QUALITY MANAGEMENT SYSTEMS 11 engineering, guided by the knowledge that our expertise can shape the success of organizations, industries, and the satisfaction of those we serve. COQ is our compass, and with it, we navigate the path to engineering excellence and sustainable success in a dynamic world. V. KEY TAKEAWAYS As we have discussed and clearly understood the concept and significance of cost of quality, the points below are the key takeaways from our discussion, not only for the general audience but also for us, future industrial engineers. COQ as a Strategic Tool where the cost of Quality (COQ) is not just a financial metric; it's a strategic tool that empowers industrial engineers to optimize processes, enhance quality, and drive informed decisions. Learn from Real-Life Cases where the given real-life case studies provide valuable lessons for everyone, showcasing how COQ principles can impact the success of companies in dynamic industries. Benefits of COQ Analysis that explain COQ analysis equips everyone, especially industrial engineers with data-driven decision-making capabilities, allowing us to drive efficiency, enhance profitability, and deliver superior quality that aligns with client expectations. Preventive Measures Matter which prevention costs, such as training, process improvement, and quality control, are as crucial as addressing quality failures. VI. FUTURE CONSIDERATION FOR COQ ANALYSIS In the realm of Cost of Quality (COQ) analysis, the journey doesn't conclude with an understanding of its concept and benefits. As we delve deeper into this subject, a crucial future consideration emerges the pursuit of continuous improvement and the integration of COQ principles into every facet of an organization's operations. In addition to that, as future industrial engineers, embracing these considerations will not only enhance your understanding of COQ analysis but also equip you with the skills to drive positive change and innovation within organizations. Remember that COQ analysis is not static; it's a dynamic tool that evolves with the ever-changing landscape of business and technology. By focusing on continuous improvement and integration, you/we can leverage the full potential of COQ analysis to achieve quality excellence and Software Design. the process of sustainable success. envisioning and defining software solutions to one or more sets of problems The future of Cost of Quality (COQ) analysis involves seamless integration Software Engineering. is a systematic into existing systems and processes, making it a cornerstone of organizational engineering approach to software decision-making. Embracing real-time monitoring through advanced data development. analytics and predictive technologies enables proactive quality issue identification, Software Engineer. design and create computer systems and applications to preventing costly escalations. Moreover, expanding COQ analysis to encompass solve real-world problems. Software sustainability and environmental factors not only ensures cost-effectiveness but engineers, sometimes called software developers, create software for computers and applications. PAMANTASAN NG CABUYAO |IEP108 QUALITY MANAGEMENT SYSTEMS 12 also promotes environmentally responsible practices. Lastly, investing in training and skill development empowers the workforce to actively participate in COQ analysis and quality improvement initiatives, fostering a culture of continuous excellence. SUMMARY Our group report on Cost of Quality (COQ) offers a comprehensive exploration of this vital concept in our course subject in Quality Management Systems. Beginning with an introduction, we define COQ and emphasize its significance, extending beyond financial metrics to encompass informed decision-making, enhanced profitability, and customer satisfaction. A real-life case study that provides practical insights into the impact of COQ in various industries. Moreover, we then delve into the components of COQ, dissecting the Cost of Good Quality (Prevention and Appraisal Costs) and the Cost of Poor Quality (Internal and External Failure Costs). This analysis illuminates how organizations can optimize quality-related expenses. The reporters/researchers underscore the benefits of COQ analysis, empowering organizations to make data-driven decisions that enhance profitability and customer satisfaction. In the conclusion, we summarize key takeaways, emphasizing the dynamic nature of COQ and its relevance to industrial engineering. Looking ahead, we explore future considerations for COQ analysis, including seamless integration, real- time monitoring, sustainability, and workforce development. Also, the report concludes with an interactive quiz to reinforce learning. Lastly, this report equips listeners/readers with a holistic understanding of COQ and its strategic implications, preparing them to excel in the realm of quality management and industrial engineering.  PAMANTASAN NG CABUYAO |IEP108 QUALITY MANAGEMENT SYSTEMS 14 KEY TERMS Internal Failure Cost The cost incurred because of identifying defects before they are shipped. External Failure Cost The cost incurred because of defective products being shipped to customers. Quality Product A product that serves its main purpose of achieving the customer's satisfaction. Market Research Used to gather information and analyze the company’s strategy to improve its product. Inspecting Assessing equipment and materials to identify errors. Informed Decision- The practice of using data, analysis, and insights, such as those provided by COQ making analysis, to make well-informed and strategic choices within an organization Cost of Poor Quality This represents the portion of COQ linked to the expenses resulting from defects, (COPQ) errors, or failures in products or services Cost of Good Quality This refers to the portion of COQ associated with the expenses incurred to ensure (COGQ that products or services meet quality standards and customer requirements Appraisal Cost This is to assess and evaluate the quality of products or services during and after production PAMANTASAN NG CABUYAO |IEP108 QUALITY MANAGEMENT SYSTEMS 15 Quality Management 2 System LEARNING OUTCOMES On the completion of this course, student is expected to be able to do the following: 1. Understand the concepts of Quality Management System. 2. Identify and describe the components of Quality management system such as purpose, elements, and design. 3. Through examples and applications, students will be able to apply the PAMANTASAN NG CABUYAO |IEP108 QUALITY MANAGEMENT SYSTEMS 17 INTRODUCTION WHAT IS QUALITY MANAGEMENT SYSTEM? Quality Management System (QMS) is used to describe a system in charge of outlining all duties, tasks, and procedures for fulfilling quality goals and policies. With the use of a QMS, businesses are able to direct and coordinate their operations in order to satisfy consumer and regulatory requirements while continuously increasing their productivity and effectiveness. Companies deploy their own QMS to assist in directing and coordinating all organizational efforts to ensure that they adhere to their own quality standards. A quality management system, when correctly implemented, can also help a Figure 1. Quality Management System business become more efficient overall and be better able Source: https://tuvat-bic.com.pk/how-can-a-quality-management- system-qms-help-your-business/ to regularly fulfill quality requirements. Depending on the size, kind, and complexity of the library, the amount of quality management system documentation will vary. The choice of the documentation required for the efficient operation and management of the library's procedures is left to the library. There are numerous justifications for recording library activities. PURPOSE OF QUALITY MANAGEMENT SYSTEM (QMS) The quality management system is a curriculum to perform the same quality applied in making a product or service, to ensure that the satisfaction of the consumers is met, and to give them the best product or services we offer. Also, the purpose of the quality management system is to make work more efficient, consistent, and accurate in producing products or services. PAMANTASAN NG CABUYAO |IEP108 QUALITY MANAGEMENT SYSTEMS 18 Application of QMS The creation and use of innovative medical devices are at the forefront of innovation and patient care in the constantly changing world of healthcare. These tools, which can be anything from diagnostic equipment to life-saving implants, are essential for improving patient outcomes and raising the standard of healthcare. However, the healthcare sector primarily relies on the implementation of Quality Management Systems to guarantee the safety and efficacy of these technologies. It is essential to understand the fundamentals of these systems before going into the role of QMS in the healthcare sector. An unrelenting dedication to patient safety is at the core of healthcare. When properly incorporated into clinical practice, medical gadgets have the power to save lives and relieve suffering. Rather than only producing medical devices, the goal of QMS in the health care industry is to develop safer, more efficient, and more reliable alternatives that will ultimately improve the standard of healthcare and, most importantly, the wellbeing of patients. Attached here is a short video clip to better understand the purpose of QMS in other sector, such as the healthcare industry: “Quality Management software for medical device industry: ISO 13485 Medical Devices QMS,” https://youtu.be/hAk6zOXBimk?si=KrDmcgYqg7WY8rLx ELEMENTS OF QUALITY MANAGEMENT SYSTEM (QMS) 1. Quality policy A QMS is driven by several top-level papers that serve as a roadmap for the rest of the QMS. As the remainder of the QMS is created, these documents will serve as a foundation to assure uniformity. A quality policy can also represent your organization's mission statement, core beliefs, or code of ethics. Once this is created, you can then define expectations for everyone in the organization, including upper-level management, supervisors, and employees. 2. Quality manual A quality manual is a summary of the full QMS that may be provided to a client or auditor to assist them rapidly comprehend how the QMS is constructed PAMANTASAN NG CABUYAO |IEP108 QUALITY MANAGEMENT SYSTEMS 19 and which QMS areas, if any, the company is exempt from or otherwise does not apply to their system. The quality handbook shouldn't provide specifics about the methods or processes; instead, it should be almost like an outline. 3. Quality objectives These goals are meant to inspire businesses to establish strategic objectives and a QMS purpose. By establishing a connection between consumer needs and precise, quantifiable, and reachable goals, objectives help a business put its vision into action. An organization can build a customer-focused culture by using well- The quality policy, written objectives that provide a quality management system initiative direction. quality manual, and quality objectives are the most important documents 4. Organizational structure and responsibilities for any QMS. Drafting a quality policy An accurate and updated model of the organizational structure and the roles should come first when developing a and duties of every member of the organization should be included in a QMS. A quality management typical tool for doing this is an organizational chart, which graphically displays system. the roles and the hierarchy of responsibilities. 5. Document and records control and management All documents and records must be regulated and kept in a QMS. Consider papers as protocols, form templates, the quality manual, job instructions, approved supplier lists, and other records that in some little way assist in Document Control. process of producing the product. managing documents of an organization and making sure that The term "document control" refers to the requirement that these documents the data created are going through the right processed of being be revision-controlled, meaning that any modifications to the documents must reviewed and approved in a be properly vetted and examined for any potential impact on production or controlled manner. product risk. Effective record-keeping is essential for the QMS to be successful, for certification to be granted in accordance with QMS standards, and for regulatory compliance. 6. Processes and procedures The goal of the entire QMS approach to quality control is to create repeatable, standardized processes across the entire organization. This refers to procedures PAMANTASAN NG CABUYAO |IEP108 QUALITY MANAGEMENT SYSTEMS 20 that take place in the corporate offices as well as those that are carried out on the factory floor. Organizations must establish and identify all organizational processes that use any resource to convert inputs into outputs to comply with standards for quality management. Creating a process map that shows the connections between each process, as this could be useful. In addition to helping staff members understand how their roles and duties affect everything else in the firm, this is beneficial for spotting potential bottlenecks that could have large-scale implications. 7. Data management and analysis Instead of waiting until a severe nonconformance occurs, data analysis should be utilized to pinpoint processes or systems that are out of control as soon as possible. Plans must be in place for the organization's data collection and statistical analysis. It is possible to utilize this data to determine whether the organization's established metrics for quality are being met as well as other metrics. To give higher management a quick overview of how the QMS is functioning, it is usual to assemble this data into a quality dashboard. Organizations may have quite different requirements for the kinds of data needed to demonstrate effective QMS performance.  Customer feedback  Supplier performance  Product and process monitoring  Trends 8. Continuous improvement A QMS is most beneficial to a company when its tools and procedures are used for ongoing development. A QMS can significantly alter the course of a firm by encouraging innovation and development rather than simply putting out fires as they arise. The most fundamental objective of any QMS is to maintain consistency in quality and process performance, but when completely established and mature, that QMS should also enable quality and process improvement. PAMANTASAN NG CABUYAO |IEP108 QUALITY MANAGEMENT SYSTEMS 21 9. Quality instruments The performance of a QMS depends critically on the control and calibration of the tools used to measure quality. Machines and equipment must be rigorously controlled and calibrated in accordance with industry standards if they are used to validate products or processes. DESIGNING OF QUALITY MANAGEMENT SYSTEM (QMS) Describe The Organization's Goals, Values, And Mission The organization must also decide what is important and what priorities are. Conflicts between deadlines, costs, compliance, and product functionality, for example, will exist in every firm. When priorities are established, decisions are based on a shared set of principles. However, it requires that the organization be open about its priorities. They frequently make the mistake of expressing things that are admirable but do not actually support such values with management time or money. Map the Major Processes Understanding how operational activities work together to get the intended results is necessary to it. Outline the main, overarching processes in detail, including their inputs, actions, and outputs. Not how they should function, but how they do work should be the starting point. Later, but only if the organization is dealing with reality, improvement occurs. Mission. a statement that highlights the fundamental reason for a Define the Positions and Duties in the Quality System company’s existence. The employees of the company are accountable for making sure the Vision. a statement that is future- expected outcomes happen. Owners of processes are given accountability for oriented and highlights the long- term goals of the company. such processes. Making sure people have the knowledge, education, or training required to carry out their duties effectively entails another aspect of this. Fill in the gaps if there are any by pursuing on-going education and training. Review And Enhance the System Frequently A contemplative review is necessary, followed by actionable efforts toward improvement. A review of the objectives is necessary if they are PAMANTASAN NG CABUYAO |IEP108 QUALITY MANAGEMENT SYSTEMS 22 frequently met with ease or appear to be unattainable. In actuality, it is advisable to assess the organization's priorities and goals on a frequent basis. Attached here is a short video clip to understand more the function of Quality Management System in a Manufacturing Industry: “Nestlé Food Safety In Action: Trust & Safety,” Source: YouTube, https://youtu.be/NflVyEl-yaU?si=dn2073Yy3pWBlbmR PAMANTASAN NG CABUYAO |IEP108 QUALITY MANAGEMENT SYSTEMS 23 lessons from QMS, knowing that they will continue to shape my growth and development as a student and, eventually, as a professional. SUMMARY Quality Management System (QMS) is used to describe a system in charge of outlining all duties, tasks, and procedures for fulfilling quality goals and policies. The primary purpose of QMS is to make work more efficient, consistent, and accurate in producing products or services. The quality policy, quality manual, and quality objectives are the most important documents for any QMS. Drafting a quality policy should come first when developing a quality management system. There are several procedures used in designing a Quality management system such as describe the organization's goals, values, and mission, map the major processes, define the positions and duties in the quality system and review and enhance the system frequently. Designing a QMS should be tailored to the specific needs and goals of an organization. This paper embodies the purpose of the QMS in achieving consistent quality and continuous improvement in an industrial setting. GLOSSARY Industrial Engineer. play a pivotal role in driving organizational success, and QMS knowledge can amplify their impact. Document Control. process of managing documents of an organization and making sure that the data created are going through the right processed of being reviewed and approved in a controlled manner. Mission. a statement that highlights the fundamental reason for a company’s existence. Platonic. relationship between other people who is not part of our family but have a connection on the outside world. Process Supervisor. responsible for ensuring that desired results in a Quality Management System happen. QMS Quality Management System. which means a system with procedure or processes that has the responsibility of achieving objectives with quality and customer satisfaction. Vision. a statement that is future-oriented and highlights the long-term goals of the company. PAMANTASAN NG CABUYAO |IEP108 QUALITY MANAGEMENT SYSTEMS 24 REFERENCES 1 What is a Quality Management System (QMS)? - ASQ, https://asq.org/quality-resources/quality- management-system (accessed Sep. 12, 2023). 2 K. Stanton, “What are core elements of a Quality Management System (QMS)? [examples],” What are core elements of a quality management system (QMS)? [Examples], https://www.qualio.com/blog/the-9-core-elements-of-a-quality-management-system (accessed Sep. 12, 2023). 3 “Designing a quality management system,” Quality Management System, https://qualitymanagementsystem.com/total-quality-management/designing-a-quality-management- system/?fbclid=IwAR1rkg_zTM5WHtwh3BNR7f6ShHRbLGCQxW9RPklNv3Kya_xBMOxHpUd iY5o (accessed Sep. 11, 2023). 4 Qualityze, “Quality Management software for medical device industry: ISO 13485 Medical Devices QMS,” YouTube, https://youtu.be/hAk6zOXBimk?si=KrDmcgYqg7WY8rLx (accessed Sep. 14, 2023). 5 N. USA, “Nestlé Food Safety In Action: Trust & Safety,” YouTube, https://youtu.be/NflVyEl-yaU?si=dn2073Yy3pWBlbmR (accessed Sep. 14, 2023).  PAMANTASAN NG CABUYAO |IEP108 QUALITY MANAGEMENT SYSTEMS 25 INTRODUCTION TO ISO 9000 3 LEARNING OUTCOMES Here’s what I will teach you in this course material:  Learn the principles and concepts of quality management as defined by ISO 9000 standards.  Gain knowledge of ISO 9000 requirements and guidelines to ensure organizational compliance.  Acquire the ability to continuously monitor and improve quality processes within an organization. RESOURCES NEEDED For this lesson, you would need the following resources:  ISO 9000 standards / QMS  https://youtu.be/4djhUDZx3yA?si=VEk3zT0P_2BnoWMy  ISO Standard, Benefits and Certification  https://youtu.be/MIssDGB7pJc?si=IjrQgrUSCtWvKiBH PAMANTASAN NG CABUYAO |IEP108 QUALITY MANAGEMENT SYSTEMS 27 Introduction What is ISO 9000? An international set of standards known as ISO 9000 outlines the specifications for a quality management system (QMS). These guidelines are intended to assist firms in setting up, implementing, maintaining, and improving their quality management systems throughout time. ISO 9000 is a framework and set of principles that help enterprises achieve consistent quality and customer satisfaction rather than a specific good or service. The Birth of ISO 9000 The introduction of ISO 9000 in 1987 was a crucial turning point for quality management. Its evolution was significantly influenced by the International ISO 9000. A set of international standards for quality management Organization for Standardization, which is made up of the national standards systems. bodies of more than 165 nations.  Evolution of ISO 9000 ISO 9000 has undergone several revisions to adapt to the changing business landscape and emerging best practices in quality management. Over the years, ISO 9000 has evolved to meet the changing demands of the business world. The most notable revisions occurred in 2000 and 2008, each bringing significant updates to the standards.  ISO 9000: The 2000 Revision The year 2000 marked a crucial turning point for ISO 9000. The revised standards introduced the concept of process-based quality management. Instead of focusing solely on the end product, organizations were encouraged to consider the entire process from start to finish. This shift in perspective allowed for a more comprehensive approach to quality and emphasized continuous improvement.  ISO 9000: The 2008 Revision PAMANTASAN NG CABUYAO |IEP108 QUALITY MANAGEMENT SYSTEMS 28 In 2008, ISO 9000 standards were revised once again to keep pace with the evolving business environment. This revision emphasized the importance of aligning quality management with an organization's strategic objectives. It encouraged businesses to integrate quality management into their overall business processes, making it an integral part of their operations.  ISO 9000: The 2015 Revision The 2015 revision of ISO 9000 emphasizes a more holistic and risk-based approach to quality management, with a strong focus on organizational context, leadership involvement, process efficiency, and continual improvement. These changes reflect the evolving business environment and aim to make ISO 9000 more adaptable and effective for organizations of all types and sizes. ISO 9000 PRINCIPLES 1. Customer focus – Identify and understand customer needs and expectations 2. Leadership – Establish the purpose of the organization, set goals, set an example 3. Engagement or involvement of people - Recognition, empowerment, and enhancement of skills and knowledge 4. Relationship management – The organization manages its relationship with interested parties such as suppliers 5. Process-oriented approach – Understand the process to optimize performance 6. Evidence-based decision-making – By thoroughly examining and understanding the relevant information and supporting evidence, individuals, and organizations can make decisions that are well-informed, logical, and less susceptible to errors or biases. This approach ultimately leads to better outcomes and more effective problem-solving. 7. Continuous improvement - To maintain current performance and to create new opportunities  PAMANTASAN NG CABUYAO |IEP108 QUALITY MANAGEMENT SYSTEMS 29 ISO 9000 series with quality standards  ISO 9000 - explains fundamental quality concepts and provides guidelines for the selection and application of each standard  ISO 9001 - model for quality assurance in design, development, production, installation and servicing  ISO 9002- model for quality assurance in the production and installation of manufacturing systems  ISO 9003- quality assurance in final inspection and testing  ISO 9004- guidelines for the application of standards in quality management and quality system Elements of ISO 9000 Quality Management System I. Management Responsibility II. Quality System III. Contract Review IV. Design Control V. Document and Data Control Contract Review. Ensuring customer VI. Purchasing requirements are understood and met VII. Control of customer-supplied products VIII. Product Identification/Traceability Purchasing. Selecting and managing suppliers of quality materials and IX. Process Control services X. Inspection/Testing XI. Control of Inspection, Measuring and Test Equipment XII. Inspection and Test Status XIII. Control of Nonconforming Product XIV. Corrective & Preventive Action XV. Handling, Storage, Packaging, Delivery XVI. Control of Quality Records XVII. Internal Quality Audits XVIII. Training XIX. Servicing XX. Statistical Techniques PAMANTASAN NG CABUYAO |IEP108 QUALITY MANAGEMENT SYSTEMS 30 ISO 9000 Certification Process 1. Preparation  Gap Analysis - Conduct this study to assess the difference between actual and projected or desired performance to determine how your organization is and is not in compliance with ISO 9000.  Value Stream Mapping - Value stream mapping can help you understand your processes. Every aspect of your firm, such as human resources and technical publications, has the potential to be included.  Determine Context - Consider what your firm truly stands for, and clearly define your customers and their needs.  Management Support - Obtain management and leadership support for ISO 9000 efforts.  Conduct a Risk Analysis - Analyze how problems occur in process steps, assess risks, and predict opportunities. 2. Project Planning  Decide whether you will form an internal team or employ consultants, External Audit. An independent as well as the registrar, or certification authority, you will use. assessment of a QMS by a 3. Training certification body.  Introduce concepts if ISO is completely new to the team, or highlight Certification. Formal recognition of compliance with ISO 9000 standards key changes if upgrading to a newer version. 4. Do the Work  As needed, redesign your processes and document the changes.  Employees should be trained on the new quality management system (QMS).  Procedures should be updated as needed.  Utilize the new QMS and procedures to complete a production cycle. 5. Internal Audit  Following you've gone through your new system, assess how well it adheres to the new procedures.  If required, take corrective action. PAMANTASAN NG CABUYAO |IEP108 QUALITY MANAGEMENT SYSTEMS 31  Examine the system to ensure that you are prepared to apply. 6. External Audit  Documentation and audit records must be submitted to the registrar.  Display and explain your work to the auditor. 7. Register Your Certificate How Much Time Does It Take to Obtain ISO 9000 Certification? Certification duration is influenced by the organization's size, as described by Nichols: "Smaller companies get certified faster, while larger ones take longer." For smaller firms employing five to ten individuals, certification may be achieved in as little as six months, while larger organizations with multiple locations and hundreds or even thousands of employees might require 18 months or more to complete the process. ISO 9000 BENEFITS 1. Improved Quality Management - ISO 9000 standards provide a systematic approach to managing quality, helping organizations ensure that their products or services consistently meet customer requirements and regulatory standards. 2. Enhanced Customer Satisfaction - By adhering to ISO 9000 standards, organizations can better understand and meet customer expectations, leading to increased customer satisfaction and loyalty. 3. Increased Efficiency - ISO 9000 encourages the optimization of processes, which can lead to improved efficiency, reduced waste, and lower operational costs. 4. Global Recognition - ISO 9000 certification is recognized worldwide, enhancing an organization's credibility and competitiveness in global markets. 5. Better Risk Management - ISO 9000 promotes risk-based thinking, helping organizations identify and address potential risks early, reducing the likelihood of quality-related issues and customer complaints. PAMANTASAN NG CABUYAO |IEP108 QUALITY MANAGEMENT SYSTEMS 32 6. Continuous Improvement - The standards emphasize a culture of continuous improvement, driving organizations to regularly review and refine their processes for better results. 7. Legal and Regulatory Compliance - ISO 9000 helps organizations stay in compliance with relevant laws and regulations, reducing the risk of legal issues and penalties. 8. Supplier Relationships - ISO 9000 standards can improve relationships with suppliers by setting clear quality expectations and fostering communication, leading to better supplier performance. 9. Employee Engagement - Involving employees in quality management processes can boost morale and engagement, leading to a more motivated and productive workforce. 10. Market Access - ISO 9000 certification can open doors to new markets and customers, as many organizations require suppliers to be ISO certified. CHALLENGES IN ISO 9000 1. Resource Intensive - Implementing ISO 9000 standards can require significant time, money, and personnel resources, especially for smaller organizations. 2. Complex Documentation - Maintaining the necessary documentation can be cumbersome and may require additional administrative work. 3. Resistance to Change - Employees may resist changes to established processes, creating internal resistance to ISO 9000 implementation. 4. Customization Challenges - Adapting ISO 9000 to specific industry or organizational needs can be challenging, as the standards are somewhat generic. 5. Initial Certification Costs - Achieving ISO 9000 certification can be costly, including the expenses associated with audits and assessments. 6. 6Ongoing Maintenance - ISO 9000 certification requires ongoing maintenance and periodic audits, which can be time-consuming and costly. PAMANTASAN NG CABUYAO |IEP108 QUALITY MANAGEMENT SYSTEMS 33 7. Overemphasis on Documentation - Some organizations may focus too much on documentation rather than real process improvement, which can lead to a bureaucratic approach. 8. Misconceptions - There can be misconceptions that ISO 9000 guarantees quality, when in fact, it's a tool to help improve quality management. 9. Lack of Management Commitment - Without strong leadership support, ISO 9000 implementation may falter or fail. 10. Potential for Bureaucracy - If not managed properly, ISO 9000 can lead to excessive bureaucracy and paperwork, stifling innovation and efficiency. CONCLUSION ISO 9000, a globally recognized set of standards for quality management systems, offers numerous benefits for organizations across industries. By establishing a systematic approach to managing quality, improving customer satisfaction, enhancing efficiency, and fostering continuous improvement, ISO 9000 certification can provide a competitive edge and drive organizational success. While challenges exist, including resource requirements, documentation complexity, and potential resistance to change, the long-term advantages of implementing and maintaining an ISO 9000 system often outweigh the initial difficulties. For organizations committed to excellence and continuous improvement, embracing ISO 9000 can be a valuable investment in their future. SUMMARY This comprehensive document covers everything from the basics of ISO 9000 to its principles, certification process, benefits, and challenges. It provides a PAMANTASAN NG CABUYAO |IEP108 QUALITY MANAGEMENT SYSTEMS 34 thorough understanding of ISO 9000 and its significance for organizations striving for quality management and improvement. learning ISO 9000 is essential for both individuals and organizations seeking to improve quality, reduce risks, cut costs, and remain competitive in today's global marketplace. It provides a structured approach to quality management that delivers benefits across various aspects of business operations. REFERENCES 1 ISO 9000 - advantages, benefits, disadvantages, cost. (n.d.). https://www.referenceforbusiness.com/small/Inc-Mail/ISO-9000.html 2 Capistrano, E. P. S. (2008, November 20). ISO 9000 certification and business performance of selected Philippine companies. https://pmr.upd.edu.ph/index.php/pmr/article/view/156?fbclid=IwAR2y7lFvk2_Z_PJam 92tPs5iqDG803d3e8d3OeIutbiSdC7gZGr8fFfbAmA 3 The 20 ISO 9000 quality assurance system elements. (n.d.). http://www.jdunman.com/ww/Business/ISO/The%2020%20elements%20of%20ISO.htm 4 Ali-Cssgb, M. (n.d.). Comparative study on ISO 9001:2015 and Toyota production system. www.linkedin.com. https://www.linkedin.com/pulse/comparative-study-iso-90012015- toyota-production-mubashir-ali-cssgb- 5 III. A Review of ISO 9000. (n.d.). https://www.sis.pitt.edu/mbsclass/standards/martincic/iso9000.htm 6 Prithvi Study Point. (2021, January 15). ISO 9000 | | ISO 9000 Series | | Objectives | | Benefits | | Lecture Notes [Video]. YouTube. https://www.youtube.com/watch?v=KTePzwgNfPw 7 The 20 elements of ISO 9000. (2000). Professional Builder. https://www.probuilder.com/20-elements-iso-9000  PAMANTASAN NG CABUYAO |IEP108 QUALITY MANAGEMENT SYSTEMS 36 INTRODUCTION TO TOTAL QUALITY 4 MANAGEMENT LEARNING OUTCOMES Here’s what I will teach you in this course material:  To understand the fundamentals and purpose of Total Quality Management  To apply Total Quality Management techniques and principles in real- life scenarios  To analyze the advantages and disadvantages of TQM implementation in different sectors and industries. RESOURCES NEEDED For this lesson, you would need the following resources:  Introduction to Total Quality Management (TQM)  https://youtu.be/OSz7MvkPhFI?si=dkh-n6xAGn8sY2Xt PAMANTASAN NG CABUYAO |IEP108 QUALITY MANAGEMENT SYSTEMS 38 INTRODUCTION Total quality management, or TQM, is the company's practice of discerning, alleviating, or eradicating manufacturing errors and rejects on a continuous and daily basis. It improves the customer experience and ensures employees receive up-to-date training by streamlining supply chain management. Total quality management's goal is to hold stakeholders that are engaged in the manufacturing process accountable for the entirety of the quality of the finished product or services offered or rendered by the company. It is a framework for strategizing that encourages all employees to focus on quality improvement. According to the theory, operational excellence enhances customer happiness or satisfaction. TQM is governed by numerous principles, but its unifying purpose is to reduce errors, streamline processes, and increase efficiency. Understanding Total Quality Management (TQM) Total quality management is a systematic way of controlling an entire Total Quality Management (TQM). organization. The purpose of this process is to continuously improve internal A system of management that prioritizes continual improvement operations in order to increase the quality of the organization's output, including and customer satisfaction. goods and services. This approach can be used to set standards that reflect both Six Sigma. Reducing variations and methods. corporate priorities and existing industry norms. Industry standards can also Lean Manufacturing. Eliminating involve the manufacture of things to a simple standard, even if that standard is waste. not backed up by formal rules. Acceptance sampling can be used to monitor Kanban. Kanban is a scheduling system for lean manufacturing. progress toward TQM objectives. Acceptance Sampling is a statistical tool for Acceptance Sampling. Statistical quality control that enables a business to assess the caliber of a batch of products measure used in quality control. by selecting a random sample of them for testing. The overall quality standard Streamline Process. Utilized to for the group of products will be based on the quality of this specific sample. reduce or eliminate redundant work-related tasks to improve the Additionally, it is crucial because lowering the quantity of objects evaluated helps efficiency of operations in enterprises or organizations. reduce inspection expenses. Fewer items need to be inspected, which gives production schedules greater latitude and reduced inspection time per item due to fewer items being inspected simultaneously. PAMANTASAN NG CABUYAO |IEP108 QUALITY MANAGEMENT SYSTEMS 39 History of Total Quality Management Total Quality Management was the name given to the system that emerged in the 1950s and 1960s. Many people attribute Japan's use of TQM as a major component to the country's economic recovery after WWII as well as its mid- century industrial triumphs. Organizations all over the world took note of Japan's performance with TQM. To compete in an increasingly global marketplace, American manufacturers implemented quality and productivity systems such as TQM throughout the 1970s and 1980s. Despite the fact that Deming, Juran, Shewhart, and others released a plethora of papers and books on TQM, many firms adopted distinct TQM trends or only parts of the TQM principles and refined some of TQM's ideas to match their own needs. Furthermore, as company demands for efficiency, productivity, and quality have grown, many businesses have adopted newer management practices. Although TQM is still used in many firms, alternative management strategies, like Six Sigma and lean manufacturing, which better meet organizational goals in the twenty-first century, have largely superseded it. Principles of Total Quality Management Customers Focus - Customers decide how high-quality your things are. Customer feedback is greatly appreciated since it enables a business to more fully comprehend the needs and specifications for the production process. To improve raw material procurement, manufacturing processes, and quality control procedures, this feedback is then pushed back into TQM systems. Improvements. Refers to the Continuous Improvement - As a company gains more knowledge about its continual process of implementing beneficial and long- lasting changes clients, internal procedures, and rivals, it should progressively develop and aim to a company's operations, goods, for small, incremental changes. It also strengthens and expands a company's and services with the goal of competitive advantage over similar businesses. improving quality, effectiveness, and customer happiness. Employee Involvement - Employee involvement in the processes and system, communication of goals, expectations, needs, and constraints, receipt of training PAMANTASAN NG CABUYAO |IEP108 QUALITY MANAGEMENT SYSTEMS 40 and resources, attrition reduction, and the maintenance of knowledgeable staff are all essential for the success of Total Quality Management (TQM). Adherence to Processes - Employees in an organization conduct their daily business in accordance with specified processes and procedures. It requires adhering to the rules and predetermined steps indicated in the processes. Strategic and Systematic Approach - The long-term strategy, mission, and organization's vision should all be directly reflected in a company's processes and procedures. A corporation must commit to integrating quality as its core component and make the necessary financial investments to do so in order to follow TQM's system approach to decision-making. Integrate Systems - TQM plans seek to integrate systems so that they talk to one other and share data across departments to enable wise decision-making. When items or inventories are used in one location, this includes connecting data sources and ensuring that everyone is on the same page by giving rapid access to ERP information. This guarantees effective resource management and data usage. Communication - Effective communication within TQM plays a pivotal role in inspiring employees, educating team members about processes, and preventing errors, whether during everyday operations or major organizational transitions. W. EDWARDS DEMING’S 14 POINTS FOR TOTAL QUALITY MANAGEMENT Deming's 14 Points on Quality Management, often known as the Deming Model of Quality Management, is a basic idea for applying total quality management (TQM). It is a set of management strategies designed to help businesses optimize both their efficiency and their quality. PAMANTASAN NG CABUYAO |IEP108 QUALITY MANAGEMENT SYSTEMS 41 How to implement Total Quality Management Identify the current culture, guiding principles, and operating procedures of your business Build a system using this knowledge to act as your master plan. Decide what your consumers and customers want and expect from your company. Identify the best way to satisfy these demands and requirements. Assemble a team of management and workers to help you achieve your objectives, and incorporate these efforts into how you run your firm every day. Regularly collect consumer and employee feedback to determine your progress. Industries that uses TQM Total Quality Management (TQM) is a management approach that focuses on continuous improvement of quality in all aspects of an organization. It involves all employees in the organization, from top management to front-line workers. Examples:  Manufacturing - TQM is used in manufacturing to improve the quality of products and processes. For example, TQM can be used to reduce defects, improve product reliability, and shorten lead times. PAMANTASAN NG CABUYAO |IEP108 QUALITY MANAGEMENT SYSTEMS 42  Healthcare - TQM is used in healthcare to improve the quality of patient care. For example, TQM can be used to reduce medical errors, improve patient safety, and increase patient satisfaction  Education - TQM is used in education to improve the quality of teaching and learning. For example, TQM can be used to develop new teaching methods, assess student learning, and improve school Satisfaction. Refers to the contentment and fulfillment performance. experienced by customers or  Financial services - TQM is used in financial services to improve stakeholders when their expectations and needs regarding the quality of customer service and financial products. TQM can be the quality of products or services have been met or exceeded. used to reduce errors, improve processing times, and develop new SRS. financial products that meet the needs of customers. Market Share. Refers to the share  Government - Enhance citizen’s satisfaction and improve the public of a market or industry's overall sales that a business or organization services more efficiently and effectively obtains via the sale of its goods or services.  Hospitality - Preserve Cleanliness and ensure the safety of the food.  Retail - to improve customer service by understanding customer Employee. Refers to a person employed by an organization who is needs and expectations, to improve the quality of the products they essential to the application and achievement of TQM principles. sell. To improve efficiency by streamlining processes and reducing waste. By improving these three, it helps retail companies to become more profitable  Technology - Enhance customer satisfaction by delivering high- quality software and services  Transportation - Improve safety by identifying and eliminating hazards, developing and implementing safety procedures, and training employees on safety best practices. Improve reliability by reducing delays and disruptions, and by ensuring that vehicles and equipment are properly maintained. Improve efficiency by streamlining processes, reducing waste, and improving communication between employees. Improve customer service by understanding customer needs and expectations, and by developing and implementing processes to meet or exceed those expectations. PAMANTASAN NG CABUYAO |IEP108 QUALITY MANAGEMENT SYSTEMS 43 Advantage and Disadvantage of Total Quality Management ADVANTAGES  Customer satisfaction When a company uses TQM, it can anticipate customer complaints and desires, address them at the source, and improve on its products/services.  Employee engagement Attracting and keeping top-notch employees is one of the most significant challenges for a company. With TQM in place, it can engage and motivate employees and help them realize their full potential.  Increased market share A company's market share grows when it enjoys a positive reputation within its sector. It should see a long-term gain in sales and customer base as it develops its goods and services, creating long-lasting competitive advantages.  Productivity and less waste of resources Resource waste is significantly reduced by organizations using TQM. Employee productivity also increases significantly as a result of better time management.  Improved Processes TQM concentrates on improving a company's processes, from customer service to production, to prevent product failures and build tried-and-true techniques for internal operations improvement. DISADVANTAGES  Increased costs A company's success depends on its internal workings. However, there are always some expenses associated with trying to modify things for the better, and these costs sometimes exceed average. PAMANTASAN NG CABUYAO |IEP108 QUALITY MANAGEMENT SYSTEMS 44  Customer dissatisfaction A company can improve its processes by putting the TQM tools to use, but this does not guarantee that customers will enjoy them better. In reality, by putting TQM into practice, it must have a training department where employees will be trained on how to operate correctly under TQM. As a result, production will stop, creating service delays that could affect customer satisfaction until the training begins.  Difficult and time consuming It takes a lot of time and effort to implement TQM since it includes shifting corporate operations from top-down to bottom-up, requiring extensive testing and process adjustments in resources. Conclusion Total Quality Management (TQM) is a comprehensive management strategy with a constant improvement and customer satisfaction focus in any organization. Its principles are solely for its overall improvement of quality of its processes which generate satisfactory results. The foundation of TQM is the idea that everyone in the business has a responsibility to maintain quality and that quality extends beyond the final product or service to include the processes that go into their creation. Hence, organizations of all sizes and in all sectors have adopted TQM in their systems in order to follow an effective path which envisions a greater rate of positive outcomes. For businesses that are dedicated to ongoing improvement and customer satisfaction, TQM is a long-term investment that can provide enormous benefits to its firms. With that being said, TQM is an advantage in PAMANTASAN NG CABUYAO |IEP108 QUALITY MANAGEMENT SYSTEMS 45 SUMMARY Total Quality Management (TQM) is a system of management that prioritizes continual improvement and customer satisfaction. It involves all employees in identifying and eliminating problems, as well as improving process efficiency and effectiveness. TQM is a long-term commitment, and its success is dependent on everyone's participation in the organization. TQM is a powerful quality management strategy that can assist firms in improving their products and services, lowering costs, and increasing customer happiness. It is vital to remember, however, that TQM is a long-term commitment. Implementing and maintaining a good TQM program takes time and effort. TQM is widely used in manufacturing, healthcare, education, financial services, and other industries to enhance product and service quality and processes while increasing customer and business satisfaction. It also has benefits and drawbacks, including enhanced processes, increased market share, and staff engagement. On the other hand, its downsides are that it is time-consuming and complicated, which may result in customer dissatisfaction and increase the organization's costs. Hence, TQM is widely concerned with external and internal factors in processing and implementing changes in product or service quality while envisioning changes to its organization in the hopes of achieving greater results in an industry. PAMANTASAN NG CABUYAO |IEP108 QUALITY MANAGEMENT SYSTEMS 46 REFERENCES 1 A. Barone, “What Is Total Quality Management (TQM) and Why Is It Important?,” Investopedia, Jun. 07, 2023. [Online]. Available: https://www.investopedia.com/terms/t/total-quality-management-tqm.asp 2 Busayo.Longe. (2022, June 29). Acceptance Sampling: Meaning, Examples, When to Use. Formplus. Retrieved September 28, 2023, from https://www.formpl.us/blog/acceptancesampling#:~:text=Advantages%20of%20Acceptan ce%20S ampling&text=Reduced%20in spection%20costs%20by%20reducing,being%20inspected%20at%20one%20time. 3 Hayes, A. (2023). Acceptance Sampling: Meaning, types, and FAQ. Investopedia. https://www.investopedia.com/terms/a/acceptancesampling.asp#:~:text=Acceptance%20s ampling %20is%20a%20statistical,the%20entire% 20group%20of%20products 4 Deming’s 14 points: Total Quality Management principles | ASQ. (n.d.). https://asq.org/quality- resources/total-quality-management/deming-points