HEAD FOR SUCCESS
BUSINESS STUDIES – GRADE 12
TERM 2
TOPIC 6: QUALITY OF PERFORMANCE
QUALITY OF PERFORMANCE
INTRODUCTION:
• It is difficult to define the concept of quality.
• Researchers suggest that quality is ultimately
determined by customers and not by management.
• Customers often judge the quality of a product
based on their expectations of the product.
QUALITY OF PERFORMANCE
THE CONCEPT OF QUALITY:
Quality
• A quality product does what it is supposed to
do.
• Customers often perceive quality as the extent
to which a product meets a customer’s
expectations.
• Quality refers to a good/service’s ability to
satisfy a specific need.
• The quality of a product or service is measured
against specific criteria, for example:
 The ability of a product to do what it is supposed to
do.
 Reliability.
 Affordability.
 Design.
QUALITY OF PERFORMANCE
THE CONCEPT OF QUALITY:
Quality assurance
• The process aimed at ensuring that:
 A good or service being developed will meet
specified requirements.
 Control measurements are in place.
 Control measurements are implemented properly.
 Ways of improving control measurements are
identified.
Quality control (QC)
• The process of ensuring that products or services are made to
consistently high standards.
• Quality control aims to identify, eliminate and avoid the occurrence
of deviation from predetermined standards in the production
process.
• Quality control involves control of the material, workmanship and
machinery that is used in the production process.
• Advantages of quality control:
 Dealers and consumers are assured that goods are of the required
standard.
 Fewer faulty products being manufactured leads to increased productivity,
as well as increased sales.
 QC encourages workers to continually produce quality goods and services.
 Production costs can be reduced by eliminating poor quality goods.
 Reduction in production costs leads to an increase in profit.
 Leads to improved quality and product design.
 Manufacturers provide salary and wage incentives for quality work.
 Reveals poor performance by workers as well as faulty machines – this is
important for training workers and replacing machinery.
QUALITY OF PERFORMANCE
Quality management
THE CONCEPT OF QUALITY:
• The process of supervising or managing all activities needed to
ensure a business produces goods and services of consistently
high standards.
• Quality management encompasses:




Quality planning
Quality control
Quality assurance
Quality improvement
QUALITY OF PERFORMANCE
Quality performance
THE CONCEPT OF QUALITY:
• Refers to the assessment and analysis of processes, goods and
services in order to measure the performance of a business.
QUALITY OF PERFORMANCE
Quality management systems (QMS)
THE CONCEPT OF QUALITY:
• refers to all policies, processes, strategies and resources needed to
apply quality management.
• Some elements of a QMS are:
 Quality manual
 Quality goals
 Quality policy
 Resources
• Advantages of QMS include:
 Reduction of costly mistakes
 Continuous improvement of processes, goods and services
 Increased profits due to the elimination of errors
 Improved customer satisfaction due to the elimination of errors.
 More efficient use of resources
 Improves compliance with quality standards
 Helps to establish a business’ reputation
QUALITY OF PERFORMANCE
Risk management
THE CONCEPT OF QUALITY:
• Involves identifying risks and finding strategies to deal with
risks, e.g. transferring the risk, minimising the risk, avoiding the
risk.
• The following steps are involved:
 Identify threats/risks.
 Determine the extent to which critical assets are exposed to these
threats.
 Formulate strategies to protect critical assets, e.g. by taking out an
insurance policy.
 Evaluate the risk by determining the probability of the risk occurring.
 Control the risk by finding ways of minimising losses.
 Finance the risk by taking out an insurance policy or by budgeting for
possible losses.
QUALITY OF PERFORMANCE
THE CONCEPT OF QUALITY:
Benchmarking
• A good product or service are measured against
a similar product or service of which the quality
has been approved.
QUALITY OF PERFORMANCE
THE CONCEPT OF QUALITY:
Characteristics of quality products and quality business operations:
Product quality
Business quality
• A quality product does
what it is supposed to do.
• A quality product is safe
to use.
• A quality product is
reliable.
• A quality product is
durable.
• A quality product is
serviceable.
• A quality business designs goods and
services with their customers in
mind.
• Production processes deliver
products with characteristics desired
by customers.
• Customers must feel that they are
treated fairly.
• A culture of quality must be
cultivated – all employees must be
aware that the business does not
tolerate work of inferior quality.
QUALITY OF PERFORMANCE
THE RELATION BETWEEN QUALITY AND THE VARIOUS BUSINESS FUNCTIONS:
• If each employee and each business function delivers
good work, the collective effort will result in a
business that delivers goods and services of the
desired quality.
• Eight business functions can be identified – each
with its own role and responsibility.
QUALITY OF PERFORMANCE
THE RELATION BETWEEN QUALITY AND THE VARIOUS BUSINESS FUNCTIONS:
Business function
Main responsibility
Purchasing function
• Responsible for finding the most suitable
suppliers and purchasing raw materials/stock
at the right time, for the right price, of the
right quality and in the right quantities.
Production function
• Responsible for converting raw materials into
final products.
Public relations
function
• Responsible for creating a favourable image
of the business enterprise.
General management • Responsible for the overall management of
function
the business enterprise by performing the
four basic management activities: planning,
organising, leading and controlling.
QUALITY OF PERFORMANCE
THE RELATION BETWEEN QUALITY AND THE VARIOUS BUSINESS FUNCTIONS:
Business function
Marketing function
Human resources
function
Administration
function
Financial function
Main responsibility
• Responsible for distributing and selling the
enterprise’s products.
• Involves getting the right product to the right
place, at the right price and to the right
consumers, by making use of the most effective
advertising methods.
• Responsible for recruiting, selecting and
appointing new employees.
• Responsible for collecting, storing and
distributing business information so that the
information can be used to analyse trends and
make decisions.
• Responsible for financing all business activities by
ensuring that money is available to run the
business efficiently – this is achieved through
careful financial planning.
QUALITY OF PERFORMANCE
THE RELATION BETWEEN QUALITY AND THE VARIOUS BUSINESS FUNCTIONS:
• The eight business functions enable the business to deliver
goods and services of quality:
Production function
Factors that contribute to success
• Technology is applied to improve quality, e.g. scanners
count goods more accurately than human beings do.
• Plan the production process to incur minimum downtime,
e.g. rather do machine maintenance at night.
• Devise a quality control strategy, e.g. by determining
tolerance levels and carrying out regular inspections and
tests.
• Choose the most suitable production system, e.g. mass
production, batch production or jobbing.
• Accredit with quality control bodies, e.g. the SABS.
• Encourage accuracy and high productivity among
employees, e.g. by rewarding employees with incentive
bonuses for reaching performance targets.
Factors that
contribute to
failure
• Insufficient
methods of
control.
• Lack of
planning
which leads
to downtime.
QUALITY OF PERFORMANCE
THE RELATION BETWEEN QUALITY AND THE VARIOUS BUSINESS FUNCTIONS:
Purchasing function
Factors that contribute to success
• Ensures that the business buys the required raw
materials:
 From the right supplier.
 For the right price.
 At the right time.
 In the right quantities.
 From the right place.
• Build relationships with suppliers to avoid delays
with the delivery of supplies.
• Regular stock control to ensure that the actual
stock on shelves corresponds with stock records.
• Ensure availability of sufficient stock levels to carry
on with business operations.
• Minimise losses due to theft and obsolescence by
taking out insurance policies.
Factors that contribute
to failure
• Insufficient stock
control.
• Failure to negotiate
better prices from
suppliers.
QUALITY OF PERFORMANCE
THE RELATION BETWEEN QUALITY AND THE VARIOUS BUSINESS FUNCTIONS:
Public relations
functions
Factors that contribute to success
• Create a favourable image of the business, e.g.
through publicity.
• Shape the public’s opinion by:
 Delivering quality goods and services.
 Being involved in corporate social investment
programmes.
 Ensuring that phones are answered promptly
and that phone operators act professionally.
Factors that contribute
to failure
• Failure to liaise with
the press.
• Internal publicity
(appearance of
buildings, way in
which telephones are
answered) is not up
to standard.
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General management
function
THE RELATION BETWEEN QUALITY AND THE VARIOUS BUSINESS FUNCTIONS:
Factors that contribute to success
Factors that contribute
to failure
• Create a suitable mission and vision for the
business.
• Allocate resources in the most effective way.
• Be aware of trends and changes in the business
environment.
• Be strategically smart and proactive.
• Organise employees in the most efficient way.
• Demonstrate effective leadership.
• Communicate expectations to employees.
• Involve employees in decision making processes.
• Lack of
communication
between
management and
employees.
• Reactive approach to
market trends instead
of being proactive.
QUALITY OF PERFORMANCE
Marketing function
THE RELATION BETWEEN QUALITY AND THE VARIOUS BUSINESS FUNCTIONS:
Factors that contribute to success
Factors that contribute
to failure
• Effective product development to keep up with
trends.
• Devise a good pricing strategy to attract
customers.
• Design effective packaging to protect goods and
increase sales.
• Select the most suitable distribution strategy so
that goods can reach consumers quickly and
affordably.
• Adopt an effective marketing communication
policy that meets ethical standards in order to
convince consumers to buy goods.
• Continuously adapt the product to meet the
dynamic needs of consumers.
• Lack of advertising.
• Failure to keep up
with product
development trends.
QUALITY OF PERFORMANCE
THE RELATION BETWEEN QUALITY AND THE VARIOUS BUSINESS FUNCTIONS:
Human Resources
function
Factors that contribute to success
• Effective recruitment to attract the best candidates.
• Fair selection processes.
• Employee development to keep u[ with changes in
technology and in the industry.
• Employee retention and training to ensure availability
of skilled employees for future positions.
• Keep employees motivated, e.g. by paying fair
remuneration.
Factors that
contribute to
failure
• Advertising
jobs in the
wrong places.
• Failure to do
succession
planning.
QUALITY OF PERFORMANCE
THE RELATION BETWEEN QUALITY AND THE VARIOUS BUSINESS FUNCTIONS:
Administration
function
Factors that contribute to success
•
•
•
•
Efficient application of technology.
Collect data and information to identify market trends.
Ensure accuracy of captured data or information.
Process data and information to assist management in
decision making.
• Make information available to management in order
for management to react to opportunities and threats.
Factors that
contribute to
failure
• Insufficient
information
storage
systems.
• Inability to
verify data.
QUALITY OF PERFORMANCE
THE RELATION BETWEEN QUALITY AND THE VARIOUS BUSINESS FUNCTIONS:
Financial function
Factors that contribute to success
Factors that
contribute to
failure
• Obtain capital from the most suitable sources available. • Insufficient
• Negotiate for better interest rates in order to save
budget
money.
planning.
• Draw up budgets to ensure sufficient application of
• Lack of
monetary resources.
financial
• Ensure that financial records are up to date to ensure
control.
timely and accurate tax payments.
• Investigate strategies to increase profitability.
• Invest surplus funds to create sources of passive
income.
QUALITY OF PERFORMANCE
THE IMPACT OF QUALITY ON DIFFERENT BUSINESS STRUCTURES:
• A business’ structure (small or large) can impact on the
quality of processes, systems, goods and services of a
business.
• Businesses have devised various strategies to ensure quality
processes, systems, goods and services in a business.
QUALITY OF PERFORMANCE
General
THE IMPACT OF QUALITY ON DIFFERENT BUSINESS STRUCTURES:
Smaller business structures
Larger business structures
(E.g. sole proprietorships, small
partnerships, CC’s and small
private companies)
(E.g. large partnerships, large private companies and
public companies)
• A lack of employees may
limit the extent to which
quality control is carried out
in smaller businesses,
however, owners of small
businesses are often actively
involved in quality control.
• Many small businesses
cannot afford mistakes: this
motivates small business
owners to ensure production
of quality goods.
• Most larger businesses have enough staff to
carry out quality control, large business
structures sometimes become cumbersome.
• Many large businesses have access to
technology that promotes quality control,
e.g. scanners can count goods more
accurately than human beings can.
• Sometimes difficult to keep large number of
employees motivated.
• Large businesses usually have quality
control systems in place.
• Large businesses are better equipped to
cope when employees are away for training.
QUALITY OF PERFORMANCE
THE IMPACT OF QUALITY ON DIFFERENT BUSINESS STRUCTURES:
• Strategies devised by businesses to ensure quality processes,
systems, goods and services include:
1.
2.
Total Quality Management (TQM)
Quality circles
QUALITY OF PERFORMANCE
THE IMPACT OF QUALITY ON DIFFERENT BUSINESS STRUCTURES:
1. Total Quality Management
• TQM is a system according to which a business aims to produce high
quality products from the start, to avoid having to detect and correct
defects at a later stage.
a) Basic principles of TQM
• TQM comprises three basic principles:
QUALITY OF PERFORMANCE
Total Quality Management (TQM)
THE IMPACT OF QUALITY ON DIFFERENT BUSINESS STRUCTURES:
b) Elements of TQM
Smaller business structures
Larger business structures
(E.g. sole proprietorships, small
partnerships, CC’s and small private
companies)
(E.g. large partnerships, large private
companies and public companies)
Definition:
• A system according to which a business aims to produce high quality products
from the start, to avoid having to detect and correct defects at a later stage.
• Aims to create awareness of quality in all organisational processes.
• Based on participation of all people involved in a business.
• Smaller businesses are often
understaffed which makes it much
harder to achieve TQM.
• Smaller businesses that implement
the principles of TQM will, however,
save time and money, enabling staff
to concentrate on core business
activities and not on correcting
defects.
• Large businesses are more likely to
implement the principles of TQM,
as large businesses have greater
human resources, i.e. employees.
• Large businesses can even appoint
a TQM task-team to ensure that the
principles of TQM are implemented
throughout the business.
QUALITY OF PERFORMANCE
DIE IMPAK
VANbusiness
GEHALTE
OP VERSKILLENDE SAKE-STRUKTURE:
Smaller
structures
Larger business structures
Continuous skills development
(E.g. sole proprietorships, small partnerships, CC’s
and small private companies)
(E.g. large partnerships, large private
companies and public companies)
General:
• Skilled employees affect labour productivity, because skilled employees work faster,
make fewer mistakes and pose a smaller safety risk than unskilled employees.
• Skills training is available through SETAs.
• As employees’ skills develop, they become able to devise better production and quality
control strategies.
• This will lead to improved products and ultimately to enhanced consumer satisfaction.
• People employed in smaller businesses are
often required to perform a wide range of
tasks.
• Hence, skills development is vital to ensure
survival of small businesses.
• Smaller businesses can, however, find it more
difficult to cope with their daily operations
when staff is sent away for skills development
training.
• Large businesses have access to a
greater range of skills than smaller
businesses, because they usually
employ more people.
• Large businesses can do skills
training on a rotation basis – which
limits the impact on the continuity
of business operations.
QUALITY OF PERFORMANCE
Total client satisfaction
THE IMPACT OF QUALITY ON DIFFERENT BUSINESS STRUCTURES:
Smaller business structures
Larger business structures
(E.g. sole proprietorships, small partnerships, CC’s
and small private companies)
(E.g. large partnerships, large private
companies and public companies)
General:
• A system according to which a business aims to achieve total client satisfaction every
time there is customer interaction.
• Total client satisfaction focuses on both quality products and customer service.
• Spend more time with a customer to achieve client satisfaction, instead of having to
correct mistakes later.
• Smaller enterprises may find it difficult to find
employees to run the business and to give
their full attention to total customer
satisfaction.
• Small businesses often do not have enough
staff to justify a customer service department.
• Hence, staff members must divide their time
between customer service and completing all
their other tasks as well.
• Client satisfaction is vital for the
survival of any business.
• Large businesses can generally
afford to have a customer service
department.
• The customer services department
focuses exclusively on achieving
client satisfaction.
QUALITY OF PERFORMANCE
Smaller business structures
Larger business structures
Continuous improvement to processes and systems
(E.g. sole proprietorships, small partnerships, CC’s
(E.g. large partnerships, large private
DIE IMPAK
OP VERSKILLENDE SAKE-STRUKTURE:
andVAN
smallGEHALTE
private companies)
companies and public companies)
General:
• Businesses should always investigate ways to streamline processes and systems.
• Improved processes and systems will lead to product improvement.
• Improved products lead to enhanced customer satisfaction which, in turn, leads to
increased sales and profitability.
• Employees in smaller businesses are often required to • Larger businesses usually
multitask.
employ a team of people
• This means that finding ways of improving a business is
to look for ways of
only one of many tasks needed to be performed by the
improving processes and
same employee.
systems.
• Quality work and good performance is often
• Large businesses often
compromised when employees focus on many tasks at
have people like engineers
the same time.
and IT-specialists on site –
• Small business often do not enjoy the benefits of
this enables them to
having on-site IT-specialists or engineers – if problems
address problems
arise, time is wasted for outside specialists.
immediately.
QUALITY OF PERFORMANCE
Involve all employees
THE IMPACT OF QUALITY ON DIFFERENT BUSINESS STRUCTURES:
Smaller business structures
Larger business structures
(E.g. sole proprietorships, small partnerships, CC’s
and small private companies)
(E.g. large partnerships, large private
companies and public companies)
General:
• The success of TQM relies heavily on participation of all employees.
• Ways in which employees can be involved include communication to employees from
top management and training.
• Employees are more likely to implement the principles of TQM if they feel their
contributions are valuable.
• Smaller businesses have fewer employees. • All employees in large businesses must
• This makes it easier to communicate with
participate in implementing TQM,
employees about the implementation of
including employees on the low levels
TQM.
of the business
• Management must devise a
communication strategy to ensure
communication reaches every
employee.
QUALITY OF PERFORMANCE
Focus on teamwork
THE IMPACT OF QUALITY ON DIFFERENT BUSINESS STRUCTURES:
Smaller business structures
Larger business structures
(E.g. sole proprietorships, small partnerships, CC’s
and small private companies)
(E.g. large partnerships, large private
companies and public companies)
General:
• Teams often manage to solve problems quicker and more creatively than individuals.
• TQM tries to harness this benefit.
• Many small businesses only have one or
two employees.
• This makes it difficult for teams in small
businesses to experience the benefits of
teamwork as it is intended by TQM.
• Because teams in large business are
often more diverse, teams in large
business are usually capable of
experiencing the full benefit of
teamwork.
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Top management involvement
THE IMPACT OF QUALITY ON DIFFERENT BUSINESS STRUCTURES:
Smaller business structures
Larger business structures
(E.g. sole proprietorships, small partnerships, CC’s
and small private companies)
(E.g. large partnerships, large private
companies and public companies)
Definition:
• Management is the foundation of successful implementation of TQM.
• Management guides and inspires employees to achieve results.
• Top management need to commit itself towards defining clear goals.
• In many smaller businesses, there is often
not a clear distinction between
management and employees.
• The distinction is rather between the
owner, who usually becomes the
manager, and employees.
• TQM requires a full commitment of the
owners of small businesses..
• Top management is responsible for
identifying and defining the goals and
objectives a business wants to achieve
with TQM.
• TQM requires total commitment from
top management.
• Top management must communicate
their plans for the business to all other
employees.
QUALITY OF PERFORMANCE
Adequate finance and capacity
THE IMPACT OF QUALITY ON DIFFERENT BUSINESS STRUCTURES:
Smaller business structures
Larger business structures
(E.g. sole proprietorships, small partnerships, CC’s
and small private companies)
(E.g. large partnerships, large private
companies and public companies)
General:
• There are costs involved in implementing TQM.
• Although businesses derive benefits from implementing the approach they need to
finance, for example, employees’ skills development, hiring additional employees and
spend money on researching alternative processes..
• Many small businesses might neither have • Large businesses need to budget for
the financial capability, nor the general
implementing TQM.
capacity to successfully implement TQM.
• Larger businesses have a greater
• Temporary employees might have to be
capacity to cope with the disruption
appointed when permanent employees
associated with implementing new
are away on training, for example.
strategies, for example large businesses
will still be able to carry on with
business operations when employees
are on training.
QUALITY OF PERFORMANCE
Planning
THE IMPACT OF QUALITY ON DIFFERENT BUSINESS STRUCTURES:
Smaller business structures
Larger business structures
(E.g. sole proprietorships, small partnerships, CC’s
and small private companies)
(E.g. large partnerships, large private
companies and public companies)
General:
• Implementation of TQM needs to be planned carefully, because all employees are
involved.
• Provision must be made to, for example, train employees to acquire skills associated
with successful implementation of TQM.
• The stages in which TQM will be rolled out also need to be planned.
• Planning for implementing TQM is easier
in smaller businesses, because fewer
employees are involved.
• Large business must carefully plan the
TQM implementation process.
• Top management must plan the
implementation process and
communicate their plans to all other
employees..
QUALITY OF PERFORMANCE
Monitoring and evaluation of
quality processes
THE IMPACT OF QUALITY ON DIFFERENT BUSINESS STRUCTURES:
Smaller business structures
Larger business structures
(E.g. sole proprietorships, small partnerships,
CC’s and small private companies)
(E.g. large partnerships, large private
companies and public companies)
General:
• Because TQM requires commitment from a business in its entirety, the success of
processes needs constant monitoring and evaluation to ensure achievement of
desired results.
• Because processes need to be
monitored constantly, employees in
smaller businesses might be distracted
from focusing on core business
activities.
• Large business can appoint special
teams to monitor and evaluate the
TQM rollout process.
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THE IMPACT OF QUALITY ON DIFFERENT BUSINESS STRUCTURES:
c) The impact of TQM on cost reduction:
The main benefit of TQM is that it leads to cost reduction and
increased profitability, because:
• Costs are reduced as mistakes are eliminated.
• As errors are eliminated, customers will experience increased levels
of satisfaction. This will lead to an increase in customer spending,
which in turn leads to an increase in profit.
• As mistakes are eliminated, fewer resources are used.
• Greater efficiency is achieved as processes improve. More goods
are produced in the same amount of time, which also increases
profitabilility as fixed costs remain at a constant
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THE IMPACT OF QUALITY ON DIFFERENT BUSINESS STRUCTURES:
d) Impact of TQM on small and large businesses
Impact on small businesses
Impact on large businesses
• Difficult to implement TQM in small
businesses due to lack of resources and
cost of implementation.
• Not possible to implement TQM in all
small business due to lack of staff
members.
• Various studies have shown that small
businesses that implemented TQM
didn’t experience increased profitability.
• According to studies, the main benefits
of TQM of small businesses are:
 Development of a quality culture in the
business.
 Improved training for employees.
• Easier to implement TQM is large
businesses, because there are more staff
members.
• Imperative to implement TQM in large
businesses.
• TQM in large businesses have significant
advantages, including:
 Reduction of costs
 More efficient use of resources
 Increased profitability
 Increased customer satisfaction
 Improved skills among employees
QUALITY OF PERFORMANCE
Quality circles
THE IMPACT OF QUALITY ON DIFFERENT BUSINESS STRUCTURES :
2. Quality Circles
Smaller business structures
Larger business structures
(E.g. sole proprietorships, small
partnerships, CC’s and small private
companies)
(E.g. large partnerships, large private
companies and public companies)
Definition:
• Small group of employees (6 – 10) who voluntarily meet on a regular basis to
discuss problems relating to production and quality.
• Many small businesses are unable to
enjoy the benefits of quality circles,
because they simply do not have
enough staff members to form a
quality circle.
• Forming quality circles are an ideal
way of monitoring a business’
performance in terms of quality.
• Large businesses are in a better
position to form quality circles,
because large businesses employ
more people.
QUALITY OF PERFORMANCE
THE IMPORTANCE AND ADVANTAGES OF QUALITY:
FOR THE BUSINESS
• Good reputation.
• High levels of customer
satisfaction equals increased sales
and profitability.
• Fewer faulty products to replace.
• Increased labour productivity.
• Decreased production costs.
FOR CONSUMERS
• Consumers are confident that
products comply with safety
standards.
• Less time is wasted on replacing
faulty goods.
• High levels of customer
satisfaction.
• Customers are confident that
goods are reliable.
QUALITY OF PERFORMANCE
QUALITY CONTROL BODIES:
• The South African Bureau of Standards (SABS)
• The SABS is the national standardisation authority.
• The SABS develops standards against which products are tested.
• Services rendered by the SABS include:
• Development, promotion and maintenance of the South
African National Standards.
• Testing and auditing of products against the requirements set
in the standards.
• Certifying products/services and processes for conformity to
standards.
• Academic and advisory services on the content and use of
standards.
• Promotion of industrial design in the country.
QUALITY OF PERFORMANCE
QUALITY CONTROL BODIES:
• International Organisation for Standardisation (ISO)
• The ISO is an international body that develops international
standards which covers most areas of technology and business.
• A standard is a document that provides requirements and
specifications against which processes, goods, services and
materials are measured to ensure good quality.
• Examples of ISO standards:
• ISO 9000: Quality management
• ISO 14000: Environmental management
• ISO 22000: Food safety management
• ISO 26000: Social responsibility
QUALITY OF PERFORMANCE
QUALITY CONTROL BODIES:
• International Organisation for Standardisation (ISO)
• The ISO 9000-standards are based on eight quality management
principles:
• Customer-focused organisation
• Leadership
• Involvement of people
• Process approach
• System approach to management
• Continual improvement
• Factual approach to decision making
• Mutually beneficial supplier relationship