Quality Management Systems: Benchmarking, ISO, and TQM

Posted on Feb 24, 2025 in Business Administration and Management (BAM)

Quality Management Systems and Entrepreneurship

Benchmarking

Benchmarking: A systematic process of comparing your organization’s goods, services, and practices against industry leaders worldwide. This helps you gain information to improve your performance.

ISO Standards

ISO 9000

ISO 9000: A set of international standards on quality management developed to help companies document the quality system elements to be implemented to maintain an efficient quality system. Created to implement a set of standards to reduce mistakes and provide efficiency and quality.

ISO 14000

ISO 14000: Promotes effective environmental management systems and provides cost-effective tools.

NOMS

NOMS: Official, compulsory standards and regulations for diverse activities in Mexico.

Total Quality Management (TQM)

TQM (Total Quality Management): A customer-focused management system that approaches long-term success by achieving customer satisfaction. Members participate continually to improve processes, products, services, and culture. INPUTS – PROCESS – OUTPUTS

Deming Cycle (PDCA/PDSA)

Deming Cycle: A continuous quality improvement model consisting of a logical sequence of four repetitive steps:

  • Plan: Recognize an opportunity and plan a change.
  • Do: Test the change in a small-scale study.
  • Check/Study: Review the test, analyze results, and identify what has been learned.
  • Act: Take action on what has been learned. If the results are not satisfactory, repeat the cycle.

Corrective Control Model

Corrective Control Model: A process for detecting and eliminating deviations from the organization’s standards:

  1. Define the subsystem.
  2. Identify key characteristics.
  3. Set standards.
  4. Collect information.
  5. Make comparisons:
    • If it is okay, continue.
    • If not, diagnose the problem and repeat the cycle.

5S Methodology

5S: A list describing how to organize a workspace for efficiency and effectiveness by identifying and storing items used, maintaining the area and items, and sustaining the new order.

  • Sort: Separate essential items from useless ones.
  • Set in order: Organize essential materials so everything has its place, considering which arrangements work best.
  • Shine: Clean everything in the area to sort items into the right places.
  • Standardize: Develop the 5S system using instructions, checklists, and other documentation.
  • Sustain: Visually develop and implement a standard audit system.

Six Sigma

Six Sigma: A system of statistical tools and techniques that focuses on eliminating defects.

Entrepreneurship

Entrepreneurship: The creation of innovative organizations for the purpose of economic gain or growth under conditions of risk or uncertainty.

Common Components of Entrepreneurship

  • Offer something new or something better.
  • New delivery system or distribution channel.
  • Entering an underserved or new market: A group of people not satisfied with what the market offers, requiring them to substitute with other products/services.

Environmental Factors Affecting Entrepreneurship

  • Open and free markets.
  • Deregulation.
  • Political climate.
  • Economic and technological conditions.
  • Support system: Availability of capital and banks, tax rates and policies, support services (SBA, venture capital firms, chambers of commerce, etc.).

Business Incubation

Business Incubation: A business support process that accelerates the successful development of start-up and fledgling companies by providing entrepreneurs with an array of targeted resources and services. A business firm may be entrepreneurial, depending upon its initiatives.

Communication Competency

Communication Competency: Successful entrepreneurs score higher than 82% of the population on their ability to express support and encouragement. Successful entrepreneurs succeed by helping other people, including their employees, partners, investors, and suppliers.

Strategic Practices of Successful Entrepreneurs

  • Delivering products and services that are perceived as high quality and that are seen by customers or clients as adding value.
  • Generating new customers or clients that expand revenue.
  • Focusing marketing expenditures and developing customer-oriented employees.
  • Maintaining financial control of the firm.
  • Establishing strong commitments to ethical practices.