[The following article appears in the September/October edition of _The_Community_Quality_Journal_.] ISO 9000 & TQM IS IT OK TO CHOOSE? by Bruce R. Gardner, CQE, CQA With the current interest in ISO 9000 (eye-so nine thousand) standards, some organizations have sought to replace or modify their improvement programs to meet the ISO standards. This has brought an apparent reduction in interest in so called Total Quality Management (TQM) initiatives. But is this diversion justified by market forces or simply wishful thinking on the part of beleaguered organizational management? The intent of the ISO 9000 series requirements is simple. The standard requires that a basic quality system be implemented to ensure customers that suppliers have the capabilities and systems to provide quality products and/or services. The benchmark for TQM models is the Malcolm Baldrige Nation- al Quality Award (MBNQA) criteria. A major goal of the MBNQA is to increase US competitiveness worldwide. The MBNQA is essential- ly a search for "role models" with superior records of quality. The foremost exponent of organizational change which empha- sizes quality as the principle philosophy is Dr. W. Edwards Deming. In his 1986 book, Out of the Crisis, Dr. Deming warned that the western world needs a "transformation of the American style of management" and not merely a "reconstruction" or "revi- sion." He further pointed out that this new way "requires a whole new structure, from foundation upward." Requirements ISO 9000 ISO 9000 series requirements are clearly defined, but how the requirements are to be met is left largely to the organiza- tion. Clear documentation of all work processes affecting quality is required, but that documentation can be written as work instructions, basic training for employees, attached as a rider on a particular manufactured item or service, or even displayed as a process flow chart in a work area. The ISO 9000 series concentrates almost exclusively on results criteria, although process criteria may meet some ISO 9000 series requirements, depending upon the lead assessor. Registering to the ISO 9000 series probably requires the least change in organizational involvement. A traditionally-managed, mass-inspection oriented organization could readily be registered to meet the standard. MBNQA MBNQA guidelines are dependent on documentation. An organi- zation committed to basing its quality initiative upon the MBNQA guidelines must expect a high level of documentation in many areas. MBNQA guidelines are somewhat more results-oriented than process-oriented, but the organization is required to follow both results and process criteria. MBNQA requires specific organiza- tional involvement and change. Deming-inspired TQM Deming-inspired TQM is much more open than MBNQA or ISO 9000. It has no firm requirements other than to meet and/or exceed customer needs through an understanding of the organiza- tion and the effects of current management practices. It expects the senior managers of an organization to consider management style through a scientific examination of Dr. Deming's 14 Obliga- tions of Management, and then apply the points in a manner appropriate to their organization. Dr. Deming expects senior managers to establish a con- trolled, customer-focused, continuously improving organization. That kind of organization has requirements, but in practice the organization must define these requirements to be in harmony with Deming-inspired TQM. That is, form should follow function. Documentation showing how processes are to be accomplished is necessary. It is up to an organization to document processes so as to communicate effectively to those who need to know. Deming-inspired TQM involves the most organizational involvement and organizational change of the three approaches. ISO 9000 Compared to MBNQA MBNQA is a larger overall system than the ISO 9000 series. Spreading knowledge about quality to other organizations is not an ISO 9000 series requirement, but it is a clear requirement of the MBNQA. The ISO 9000 series has no requirement for quality leadership benchmarking. It makes no provision for employee recognition and performance, employee morale, quality-results benchmarking, customer-relationship management, and customer-satisfaction benchmarking. While the ISO 9000 series is the smaller system, there are several requirements of that series which are given limited attention in MBNQA guidelines. Document control is at the heart of the ISO 9000 series, but mentioned only in passing in MBNQA requirements. Product identification and traceability is a much larger part of ISO 9000 series requirements than in the MBNQA guidelines. ISO 9000 Compared to Deming inspired TQM The ISO 9000 series has clear requirements compared to Deming-inspired TQM. For instance, ISO 9000 series requirements dictate that contract review be addressed in very specific terms, while a Deming-inspired TQM leaves the details entirely up to the organization. Deming-inspired TQM does not explicitly require design control, document control, and product identification and traceability. Requirements in those areas are derived from specific customer needs rather than by fiat. Dr. Deming urges companies to: drive out fear, eliminate slogans and exhortations, eliminate management-by-objective, remove barriers that rob people of pride in workmanship, and institute education. The ISO 9000 series does not address these points. Theory and Application Comparison Deming-inspired TQM emphasizes the concept of a new manage- ment theory (or philosophy) to a greater degree than either MBNQA or the ISO 9000 series. Managers must understand the theory and apply it appropriately. ISO 9000 is a quality system based largely on traditional quality control theory, identifying elements such as design control, supplier control, process control, inspection management and training to achieve quality results for the customer. It also includes the idea of continuous improvement of the system. MBNQA guidelines are a mixture of traditional theories--plus the theory developed by Crosby, Deming, Feigenbaum, Juran and others. MBNQA guidelines emphasize application of various pieces from the theories behind the approach. SUMMARY A Deming-inspired TQM initiative requires the substantial commitment of personal time and resources of senior managers in transforming the organization. Quality cannot be just another aspect of the business; it must become the way business is con- ducted. A Deming-inspired TQM organization is a learning organi- zation. It has a philosophy or theory of how to function. Dr. Deming points out, "There is no learning without theory." He goes on to say, "Experience alone teaches nothing. If we have a theory, then experience can help us to learn." While ISO 9000 series registration requires support and involvement by senior management, it is not a transformation initiative. ISO 9000 does not require a transformation of manage- ment practices but it does require continuous improvement of the system through corrective action to prevent repeat mistakes. After an organization has become effective through TQM transformation and has become a learning organization, the use of MBNQA quality criteria can be an excellent way to improve an already-effective organization. It would be a mistake for an organization to conclude that ISO 9000 and TQM are interchangeable. Curt Reimann, Administrator of the MBNQA, in his study of the two found that only about 10% of the MBNQA requirements are covered by the ISO 9000 standards. He says that the issues that are essential to company survival, such as competitiveness and customer satisfaction are not covered by ISO 9000 at all. He concludes that because it is a standard, ISO 9000 can only require the basic minimum. If the standard were to require all the elements of MBNQA, he says, it would be unen- forceable. Registrar's costs for certification would exceed $50,000 per assessment instead of the current $10,000 to $20,000. That is, of course, if you can find enough trained assessors to send into the field. It would appear that ISO 9000 has a place in a TQM organiza- tion. It provides a framework for a quality system that meets minimum requirements. The real push, and the real difficulty, remains the organizational transformation to TQM. While working on ISO 9000, organizations which lose sight of the goal of transformation do so at their peril. Long term survival will require transformation to TQM. But as Dr. Deming has said, "Survival is not compulsory."