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Quality Management
• At the beginning of quality management is always customer. Customers, satisfied
with our products and services are our partners and justifiers.
• All key processes and company systems are designed to provide customers with
high quality and required value.
• Quality is powerful tool associated with successful performance in particular
market space and efficiency of the production distribution process and sales.
• TQM and QMS are basic systems in the modern concept of corporate
governance. TQM and QMS can be applied in small or mid-size companies
separately or jointly if the QMS model becomes as a part of TQM model.
• BSC – balanced scorecard model has high significance and can be apply
separately or as part of TQM model.
Quality Management System (QMS)
• Systemic approach to quality management
• QMS are represented as ISO standards.
• ISO is abbreviation standing for International Organization for
• Under ISO standards the companies are required to plan, execute
and describe in writing what they are doing in compliance with
standards and what they are doing in order to improve them.
Quality management system concludes of:
• Written plan
• Assurance to meet customers` expectations on required quality view
• QMS has to make sure that all the systematic requirements are met.
• System must be valid for all company activities.
Description of QMS procedure
• Company asks the independent consultant firm to assess quality
management and compliance with ISO standards.
• Further steps are taken in order to obtain the quality certificates.
• Same consulting firm and employees responsible for implementation of
certification prepare and develop all related manuals and documentation
and policies in relevant areas. Such activities take often several month.
• When all the policies are in place, the auditor is addressed and
application is submitted for a quality certificate.
• Independent auditor shall inspect all manuals, policies and the way how the quality
policy (if) is introduced and the quality objectives evaluated and achieved.
• Auditors may propose additional recommendations and if there are no major
discrepancies company will get the certificate.
• After 12 – 24 month will be run inspection and compliance with standards will be
tested again.
• Companies with the certificate can use ISO logo in company`s communication
activities as business cards, business paper, promo activities and materials, company
profiles etc.
Benefits and disadvantages of QMS
• The regulations and systems at all
• Relatively bureaucratic
• Time demanding and money
levels are defined and introduced
• The credibility of company increases
• Banks, investors, employees
recognize the quality of certificate
• Certificate and its quality is at the end
a competitive advantage
• It should not guarantee the quality
of product or provided services
Total Quality Management (TQM)
• …is company and management philosophy based on promotion of
management of practices and leading to total quality organization.
• TQM is based on presumption that all employees can influence on
the quality of organization. All the efforts are taken in order to bring
this quality to each single employee.
• Overall quality is influenced by those who are in constant contact
with customers
TQM model is based on:
The fact, that company is a system of interconnected people
All business activities have an impact on quality
Suppliers are an integral part of quality system
We regard the quality fundamentally from the perspective of
customers and consumers
• Providing the quality from the point of view of customers we should research the market
at first.
• Consequently the management should determine the quality strategies according to
TQM philosophy which involves:
 Clarifying the long-term objectives of introducing TQM model
 Defining how TQM model meets the objectives and strategies
 Describing activities for the implementation of TQM model
 Providing resources for the implementation
TQM is philosophical standard developed in own frame where all
managers and all employees are involved in implementation and
further improvement.
Balanced scorecard (BSC)
• Balanced scorecard model is another model of business
• It is the way how to achieve the set objectives stated in the quality
policy in correlation with following activities:
 Financial management
 Customers relationship management
 Management of internal processes
 Management of innovation and educational processes
Balanced scorecard (BSC) is an important controlling tool widely
usable in the formulation, implementation and evaluation of the overall
Activities of company.
BSC Evaluation and focus on four key
managerial areas
• Area of performance – focus on financial objectives (profit, FCF,
• Customer area focused on marketing objectives (Market share)
• The area of internal processes focused on personal objectives
• The area of continuous improvement focused on innovation
objectives (Labour productivity)