Quality Management. Global Conception and Researches

Ruževicius, Juozas Article Quality Management. Global Conception and Researches Amfiteatru Economic Journal Provided in Cooperation with: The Bucharest University of Economic Studies Suggested Citation: Ruževicius, Juozas (2014) : Quality Management. Global Conception and Researches, Amfiteatru Economic Journal, ISSN 2247-9104, The Bucharest University of Economic Studies, Bucharest, Vol. 16, Iss. 37, pp. 1032-1044 This Version is available at: https://hdl.handle.net/10419/168874 Standard-Nutzungsbedingungen: Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden. Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen. 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GLOBAL CONCEPTION AND RESEARCHES Juozas Ruževičius* Vilnius University, Lithuania Quality is a concept, which cannot be measured on a time scale. Man’s understanding of quality goes far back into prehistory, perhaps even a million years before the first tools were made. For a long time quality assessment hinged predominantly on the quality of consumer products – their composition, attributes, distinguishing features, and so on. The globalization of world economy together with the expansion of international trade has led to the fast processes of quality internationalization, as a crucial element of companies’ competitiveness. These processes appear by wider application of the same methods, principles and criteria while determining quality policy, creating international accreditation, notification and quality certification systems in various countries. The development of quality management concepts covers a very long time. During this period, core quality objects have changed significantly – from quality of primitive working tools to commodities, then to services, processes, organizations’ quality and organizational performance, etc. Quality is important not only as a measure of how competitive a business is, it also determines the efficacy of state’s governance and other public sector organizations, the stability of a nation’s economy, and the quality of life its citizens enjoy. This is why it is necessary to broaden our understanding of quality, in order for other aspects (e.g. social quality, quality oriented value, quality culture, partnership, quality of economic management, etc.) to also be covered. These changes are reflected in the new book – scientific monograph in French – “Quality Management. Global Conception and Research”†, written by Juozas Ruževičius, professor at Vilnius University. Many European universities students and teachers treat mobility as an important tool to improve the quality of studies and to increase the internationalization of science and studies institution. This voluminous 432 pages book is dedicated to foreign and Lithuanian students of the Erasmus program, that study Quality Management, Total Quality Management, Management Methods, Environmental Management and other management courses in French in Vilnius University or other Lithuanian and European higher education institutions. The goal of this manual-scientific monograph book is to develop the ability of future leaders and managers in applying quality management, environmental protection and * Author’s contact: e-mail: [email protected] † Juozas Ruževičius. Management de la qualité. Notion globale et recherche en la matière. Vilnius: Maison d’éditions Akademinė leidyba. 432 p. ISBN 978-9955-33-667-9 Amfiteatru Economic recommends AE Vol. XVI • Nr. 37 • August 2014 1033 saving development concept, methods and tools for organizational improvement. This manual is the first original book in the field of management written by the teacher of Vilnius University, dedicated for exchange program students coming to Lithuania. In most cases, overseas visitors that come to Lithuanian higher education institutions use the literature, published in their home countries or internationally. However, they can do that without coming to Lithuania for studies. But the essence and meaning of international student exchange is to learn about the culture of another country, experience a different teaching methodology and culture, and also have the opportunity to study from the other course books, published in the host country, reflecting the specificity of it. All this can be found in the reviewed book and this is exactly the particular meaning and mission of this manual. In the book, special attention was paid to quality, environmental and social responsibility activities management features, which are applied at the organizations of Lithuania, of Western and particularly of francophone countries (France, Belgium, Switzerland, and the Province of Quebec in Canada). This monograph consists of the introduction part, eight chapters and epilogue. The book includes both – "classical" quality management themes as well as the brand new themes that were not yet reflected in the other books, published in Lithuania and foreign countries. This can be said about modern quality sciences coverage development, quality value orientations, the theory of attractive quality by Noriaki Kano, religious-ethnic quality regulation, quality certification of Halal products, social responsibility, quality of life and working life, the integration of knowledge management in to the total quality management, socially responsible investing, global quality, sustainable development, including the issues of ecological and carbon footprints reduction and environmental education. Chapter 1 – “The Coverage of Contemporary Quality Sciences” - presents the evolution, chronology, trends and perspective of quality management (QM) sciences, reveals their content changes and presents the new QM integrated model. The development of quality, commodity science, and quality management concepts covers very long period of time, that is difficult to imagine – approximately 1 million year. During this period core quality objects have changed significantly – from quality of primitive working tools to commodities, than services, processes and organizations quality, organizational performance, etc. The same trend could be noticed in the field of quality management coverage. By the author’s opinion, the commodity science is a predecessor of the nowadays quality management sciences. Quality management target also changed – from producer focus to consumer as citizen & other stakeholders’ main focus. Hence, quality becomes a human centred and different stakeholders’ groups focused activity. The mentioned global economic and social changes have determined need of new quality management tools as well as their systematic development and implementation (from basic quality inspection and control tools to sophisticated total quality management, global quality management, excellence and sustainability methods and models). On the one hand consumers’ buying habits, tastes, preferences and values are shifting violently with time, on the other hand nowadays quality is regarded more as an attitude than technicalities. Hence, in summary we can say that quality is the expression of human excellence. In Chapter 2 - "The Conception and Instruments of Quality Management", are presented conception and methods of the modern quality sciences. The particular attention is given to total quality management (TQM) theory development and practice tools elaboration. The author of the book, impressed by the Wruck and Jensen ideas and by contemporary challenges for quality management, proposes to define contemporary TQM AE Quality Management. Global Conception and Researches Amfiteatru Economic 1034 as follows: “TQM is a science and art of organization’s management, the practice of value and strength, while creating sustainable development, excellence and success of an organization and society”. Leadership is the key principle of TQM and the basis for success of organizational development. The author defines leadership as a process of influence. The process includes careful thought and defined impact that creates “elegant” force between personalities, with purpose to control, structure, facilitate actions and relations, foster voluntary efforts of the team or organization and achieve established goals. Leaders shall create and maintain such internal environment, that people would be fully involved in achieving quality goals. They must create “friendly” working environment, “clear” and efficient employees’ motivation system. Leaders also must take responsibility for enterprise’s sustainable results, organization and future of the society. Author proposes to supplement contemporary theory of management with new TQM principles:  involving organization’s partners into solving problems of quality improvement and expansion;  emphasizing teamwork and cooperation within organization;  eliminating the atmosphere of fear (to make mistakes, criticize, etc.); creating constructive criticism and analysis of mistakes, used as a tool for improving organizational activities;  implementing social responsibility in organization;  developing sustainability & ecology-friendly culture (precautious expansion, promoting business philosophy of environment-friendly manufacturing processes and products);  unreserved attitude towards any kind of quality, operational and communication problems (solving instead of hiding and nurturing);  prioritizing change and knowledge management in an organization. The rudiments of the newest QM doctrine - global quality management (GQM) – are also analysed in this chapter. By author’s opinion, in the global world, characterized by transformations in the business environment, crisis and external pressures, it is necessary for TQM to move to GQM, which permits a better adaptability to the global business environment. To be successful in knowledge society, companies will need to implement new strategies and new measures for simultaneously creating economic, social and environmental values. TQM philosophy must be rethought and recreated in the context of the new global transformation to make the switch to GQM. Global quality management is an emerging area of practice but, despite frequent references to the term, it has not yet been systematically defined and researched. By the author’s opinion, GQM conception needs to be consolidated and developed. Chapter 3 - "Quality Standardization and Regulation" shows the role of standardization in creating of the organization’s and its product’s quality. Standards are the most widely accepted means of quality regulation applied in international trade. Author’s models of quality regulation worldwide system and of standardization, certification and market relations are generalized in this chapter. The WTO strongly insists that countries and businesses follow international standards, in particular those set by the International Organization for Standardization (ISO), as this is one of the most effective ways of minimising technical barriers to trade on a global scale. Economic aspects of Amfiteatru Economic recommends AE Vol. XVI • Nr. 37 • August 2014 1035 standardization are very important for the development of state economy. Standards are the assumption of international economic collaboration and the world trade. Standardisation technologies and other advantages mentioned above are well understood by a manufacturing staff, however, while discussing with leaders of companies the economic benefit of standards is understood best. For example, standardization raises Germany’s gross domestic product (GDP) by 16 billion Euros per year. Chapter 4 - "Quality Certification" deals with future quality professionals about different types and techniques of products and management systems certification. The contemporary European quality certification system is generalized in the chapter. This system involves conformity assessment of products, organizations, voluntary and paid employees. A few types of certification could be mentioned: quality (e.g., ISO 9001, Key Mark), environmental (e.g., ISO 14001, EMAS, eco-labelling), social responsibility (e.g. SA 8000, Fair Trade), health, safety, security and other requirements (e.g., OHSAS, ILO-OSH, HACCP, ISO 27001, CE marking, etc.), E-commerce reliability and responsibility, energy management (EN 16001 & ISO 50001) and other. Unfortunately, the majority of European quality science textbooks and manuals do not baselessly include religious-ethnical products, quality and certification aspects. Quality sciences and quality academics must always be pioneers in innovations of management measures for business practice and society. Today this quality field is very important for business development of all European countries. This sort of certification can be directed to both products and their manufacturers. The main attributes of quality assurance system for halal products are given in the author’s model. The study revealed the areas of the quality management systems certification that need improvement. The author highlights the most important two of them – absence of the workable subsystem that could measure the satisfaction of the customers’ needs and their loyalty and lack of appropriate methodology of calculations of QMSs costs and for their effectiveness evaluation. The author provides some recommendations for the development of the effective quality management system:  it takes time for the new culture of the quality system to spread through the entire enterprise and to change the established work culture. The institutionalization of changes is a consciously monitored process that calls for preparation and skills;  leadership – one of the most important and responsible areas of the quality management system development activity – should be entrusted to persons competent in the quality management area. Leadership principles should be provided for by strategic planning at the top organizational authority level;  without a clear strategic direction and conception of the genuine objective of the quality system, quality implementation attempts will not warrant the benefit that the quality system yields;  objectives and probable results of the quality system should be set individually for each enterprise after much research and strategic considerations have been performed and after a general consensus on the vision-ideal of the quality system that the enterprise should aspire to be reached;  an indispensable condition in order to reach the highest efficiency of the quality management system is not to modify and adapt the idealized vision to the current situation and various possible restrictions with the aim of optimally approaching the idealized result;  work, related to the development or changing of the organization structure and quality culture in implementing the quality system, is of utmost importance, constitutes AE Quality Management. Global Conception and Researches Amfiteatru Economic 1036 about half of the system development work and guarantees up to 70 per cent of the effectiveness of this innovative activity. In the chapter 5 - "Environment Quality Management” the author presents development of the concepts of sustainability, ecological footprint, carbon footprint, eco-labelling, etc. According to the principle of sustainable development, a country’s economic and social development should be orientated such that the satisfaction of today’s needs would not impinge on the opportunities for satisfying the needs of future generations. Ecological footprint is an indicator reflecting national and global sustainable development. It shows the effect inhabitants of a particular region or country have on the environment they live in and on natural resources. The chapter presents ecological footprint concept and methodology and the international benchmarking of this indicator. The current level of human consumption already exceeds the Earth‘s ecological potential, i.e., the ecological footprint of all the countries in the world exceeds nature‘s capacity for regeneration. The USA, the United Arab Emirates, and high income countries in the EU leave the greatest EF. Finland and Sweden have the biggest ecological reserve, and Spain and Greece have the biggest ecological deficit among EU countries. The Lithuania, Latvia and Estonia have a positive ecological balance, meanwhile, the ecological footprint of the Ukraine, Romania and the Belarus exceeds the country‘s biological potential. The global community is using natural resources too intensively. That is why both EU countries and economically developed countries throughout the whole world should prepare a new sustainable development strategy encompassing the marked development of renewable natural resource production, as well as the effective implementation of various environmental protection measures. Sustainable development can also encourage the broader application of sustainable trade and fair trade principles and standards on a global scale. This research revealed that the concept of ecological footprint is still perceived superficially among both business representatives and specialists of governmental institutions responsible for sustainable development policies of the country. Therefore scientific studies on issues of ecological footprint and its public enlightenment are highly important. The implementation of systematic environmental educational programmes, adapted to children, businessmen, the employees of governmental institutions and society, should to be the governmental task. Chapter 6 - "Quality of Life” presents the concepts of quality of life and of quality of working life and its case study results. Quality of life is defined as a concept of economics and sociology, which encompasses individual’s spiritual (emotional), social and physical well-being. The quality of working life could be defined as synthesis of work place strategies, processes and environment, which stimulates employee’s job satisfaction. It also depends on work conditions and organization’s efficiency. Individual’s quality of working life directly influences the quality of life value. Generally, quality of life is also determined as employee’s and his or her work environment’s relationship quality. All quality of life components are interdependent and influence individual’s satisfaction with quality of life. The quality of working life concept encompasses the following factors: job satisfaction, involvement in work performance, motivation, efficiency, productivity, health, safety and welfare at work, stress, workload, burnout, etc. Some quality of working life factors are the same as in quality of life, only they are related to employee’s working environment and work itself. The author presents quality of working life case-study results and make fundamental generalization – quality of life and working life quality can be managed, measured and evaluated. World quality of living cities ranking and others indicators are Amfiteatru Economic recommends AE Vol. XVI • Nr. 37 • August 2014 1037 analysed in this chapter. Author proposes a new integrated - total living quality - indicator. This indicator joins quality of living cities rank and eco-quality cities rank. In the chapter 7 - "Corporate Social Responsibility” the author analyses the peculiarities, interrelationships and development of social responsibility activities. Various tools are created and used to ensure a successful CRS implementation: management, social balance, codes of ethics and conduct, social responsibility reports, marking, socially responsible investment, contribution to sustainable development strategy, environmental policy, combating unemployment, participation in social life and creation of social welfare. All CRS tools and their implementation should first and foremost be incorporated in a company’s decision-making and everyday processes. These tools are implemented in different ways and to a different extent depending on the company. This depends on the view of the company’s executives, values and education, business ownership form, corporate culture of the country. A socially responsible business which adopts the concept of sustainable development is increasingly often in need of adequate conduct of supply chain partners. The complex of tools to achieve socially responsible activities consists of SA 8000 (Social Accountability), OHSAS 18001 (Occupational Health and Safety Assessment Series), ILO-OSH, Global Compact, GRI, QualEthique, ISO 26000 and other tools and can be integrated in one organization. The chapter provides benchmarking and analysis of the development of these tools in Lithuania in the context of European and multinational businesses. The new original models of the system of social responsibility tools, ethical profit assurance, social initiatives implementation and communication and results of a case study and international benchmarking of implementation of social accountability management systems are presented in the chapter. The comparative estimation of different countries quality, sustainable development and corporate responsibility activities by absolute variable of number of certified system and tools is not informative enough. For the purpose of benchmarking of the level of corporate social responsibility activities in different counties and regions, the author proposes to use two new comparative indicators – the number of SA 8000 certified enterprises per 1 million of the population by country and the number of employees at SA 8000 certified enterprises per 1 million of the population of the country. By author’s opinion, the number of employees at SA 8000 certified enterprises per 1 million of the population by country is the most objective indicator for countries social responsible business level assessment. Therefore, this relative indicator can be recommended for international benchmarking of social responsible activities of different countries and regions. The last chapter of the book („Quo Vadis, Qualitologia?“) is dedicated to communication of quality concept and formulation of insights into development of quality sciences. There are meaningful insights of the author about significantly changed modern universities mission (402 p.). High quality performance needs supreme quality people. Higher education institutions act an important role here as well. Higher education institutions are charged with moulding the minds of the future. Universities are springboards for transforming the mindset of upcoming generations to a greener and cleaner outlook. It is essential that universities integrate sustainability and excellence principles into the curricula. Nowadays universities main mission is to educate world class quality citizens. These are the people with strong individual excellence, sensitive to others’ needs, having positive attitude to service and vigorous society focus. The oldest universities in Europe all the times were treated as cradles of innovations, new ideas and values. It is important to highlight that values and activities policy of modern higher education institutions, affected by nowadays environmental conditions related with modern economy, globalization and AE Quality Management. Global Conception and Researches Amfiteatru Economic 1038 internalization of science and studies, should cover quality management, environment protection, social responsibility and other spheres of sustainability and excellence. That is why it is advisable for universities and colleges to form social responsibility and sustainability development strategies, including inculcation of different resources sparing and frugal culture or development of institutional quality, environmental protection and sustainability management system. These practices have been adopted by several Germany and Scandinavian countries universities yet. To be a pioneer in this sphere is an affair of honour for every university as well as one of their modern missions. The applied quality, sustainability and excellence policy could raise students’ awareness in management, sustainable development, social responsibility not only from theoretical manuals but from practical university activities, if the range of the higher institutions‘ functions could be broaden by the mention innovative areas as well. Therefore, after graduation from universities or colleges the gained experience and knowledge could be disseminated broader. The spread of own positive experiences and best practices is not only a principal of total quality management but also one of the most important objectives of higher institutions mission. Adopted practices would benefit university or college not only materially, educationally, or culturally but it would also make a positive influence on European higher institutions' image among global academic community, business professionals and society. It is also valuable to pay attention to the significant insight of quality guru B. P. Crosby – “Quality is the result of a carefully constructed cultural environment. It has to be the fabric of the organization, not part of the fabric“. Author gives such possible quality management sciences development insights to quality scientists, consultants and quality practicings:  development of the rigorous methodology of calculation of QMSs and other management systems’ design, implementation and maintenance costs and of their effectiveness evaluation;  evaluation of the standardization, QMSs, environmental management systems and eco-labelling tools efficiency and influence on company’s added value and country’s gross domestic product;  evaluation of the real and comparable value of management systems certificates, delivered by different conformity assessment institutions;  studies of the influence of national cultures and worldwide religious to the using effectiveness of modern quality management methods;  quality of government of the state and public sector;  quality of working life (including academicals life);  quality management in the specific activities and organizations (religious organization, political parties, force structures, legal activities, etc.);  development of the methodology for intellectual products’(trademarks and brands, industrial designs, know-how, products with the certificates of geographical origin, copyright and neighbouring products, etc.) value and quality evaluation;  ecological footprint and carbon footprint conception development and its communication to the businessmen, employees of governmental institutions and society;  studies of the emotional and attractive quality content, evaluation and measurement;  global quality management (GQM) conception, theory and methodology consolidation and development. The final part of the book - "Epilogue" is also very valuable. In this part in the form of sentences the author uncovers his long-term experience in academic and consultancy Amfiteatru Economic recommends AE Vol. XVI • Nr. 37 • August 2014 1039 activities in the field of quality and provides several original maxims, reflecting quality in life, business and others activities. An example: “Quality does not need an image; it is the organization’s and its product’s image that needs quality”. This monographic book properly integrates the results of the author's own and other scientists’ latest researches in the area of quality management. There are presented several tens of authorial models and pictures. There is also a reference to the author's consultancy activities practices as well as to 162 other scientific and academic sources. Moreover, practical examples based on the personal author’s consultancy experience are also appropriately integrated here. This book is a great example and a role model of scientific researches integration into the studies, worth to follow. The value of the publication is approved by the fact that Vilnius University Senate Commission’s decision was to grant this book the official status of Vilnius University manual. The book will be useful not only for foreign students, taking quality management courses at Vilnius University, but also for local students that aim to improve their French business language, while honing the management science knowledge. It could be also valuable for business practitioners – francophones, seeking for innovative strategic management tools, planning to introduce or improve quality, environment protection, social responsibility, product safety and other contemporary managerial systems as well as intending to apply quality management methods and models for business processes’ efficiency development. About the author JUOZAS RUŽEVIČIUS is habilitated doctor and full professor at the Department of Management at Vilnius University (VU), Head of the Quality Management Masters Programme at VU, management and business consultant, visiting professor of the universities of France, Italy, Belgium, Romania, Kazakhstan, Ukraine, Azerbaijan. He is an author of over 550 scientific articles published in Lithuanian, English, French, German, Russian, Romanian, Kazakh, and 12 books on quality management. He is awarded as the Best Vilnius University Teacher and as the Best Vilnius University Scientist. He is Member of the International Guild of Quality Professionals, Member of the Executive Board and Expert of the International Society of Commodity Science and Technology (Vienna), Editor-in-Chief of the Scientific Journal "Current Issues of Business and Law". Research interests: total quality management, effectiveness of management systems, quality of education, quality of life, corporate social responsibility, quality in public sector, sustainable development, innovations. He is a frequently invited speaker at professional and academic international conferences and corporate meetings and serves on the editorial boards of eight international research journals in USA, Germany, Austria, Ukraine, Romania, Russia, Lithuania and Kazakhstan. For quality ideas worldwide dissemination J. Ruževičius is nominated to N. Kano International Quality Award. He is frequently invited speaker at professional and academic conferences and corporate meetings. Address: Sauletekio 9, Bld. II, Room 715, LT-10222 Vilnius, Lithuania. Phone: +370 5 2366155; 2366154; phone mob. (GSM): +370 68609710. Fax: +370 5 2366127. E-mail: [email protected], web-site: www.kv.ef.vu.lt