ASHRAE Journal Quality

Achieving Quality
Using TQM and ISO
By Gordon V.R. Holness tion of the guiding principles of Kaizen
Fellow ASHRAE Teian Z—guiding improvements through
employee suggestions.

I
The approach transfers the ownership
n a increasingly competitive marketplace, providing a quality product,
of work to those who execute the work.
delivered on time and within budget, is seen as a prerequisite for success- This may sound simplistic, but in larger
ful business practice. Consistent delivery of quality only can be achieved organizations it is often complex. Lead-
ers must create an environment of own-
by using repeatable and sustainable practices. Performance at this level can ership and employee empowerment so
help each of us address our ultimate business goal of being our client’s first that each person wants to be responsible
for his or her own performance. This is
choice in what is truly becoming a globally competitive marketplace. well addressed in the book, Zapp – The
Lightning of Empowerment,5 on how to
In the design profession, the smaller, variety of forms. Many are the offspring improve quality, productivity and em-
proprietor-led companies typically of Dr. William Edwards Deming’s ployee satisfaction.
achieve quality through dedicated per- doctrinations to the Japanese in the People feel powerless when they expe-
sonal attention and service, undertaking 1950s and 60s. Subsequent quality gu- rience no control over their work. Lead-
each element of design. However, as com- rus, such as Crosby, Juran, Hayden and ers can coach the development of
panies grow larger in size and diversity others, have trumpeted the message that individual’s capabilities and competence.
of practice, and handle larger projects, quality is the key to corporate success. Coaches can help people see beyond
this personal attention and service be- Deming1,2 established 14 points for man- where they are now and to what they can
comes harder to achieve on a consistent agement (Table 1). Crosby3,4 suggested become. Being empowered and respon-
and repeatable basis throughout the com- 14 steps to quality improvement (Table sible for our performance, as well as our
pany. A large industrial or health care 2). During this period, the definition of team performance, often is contrary to our
project may involve anywhere from 50 to quality has evolved, e.g., 1970’s “conform traditional roles in a hierarchical organi-
150 team members expending 10,000 to to product requirements;” 1980’s “con- zation and requires a change in mind set.
50,000 labor-hours over a 6 to 18-month form to customer’s expectations;” and It inverts organizational pyramids to be-
period, requiring a more structured sys- 1990’s “exceed customer’s expectations.” come employee-driven and employee-
tem, with individual commitment within a TQM is a philosophy and a set of guid- empowered. This is explained well in The
team approach. ing principles that represent the founda- Flight of the Buffalo: Soaring to Excel-
This article reviews the evolution of tion of a continuously improving lence, Learning to Let Employees Lead6
Total Quality Management philosophies organization, leading to the elimination and in Teaching the Elephant to Dance.7
and their progression into structured of waste. By design, TQM is the applica-
quality operating systems such as the tion of quantitative methods and human ISO: The Next Step
international ISO standards and their po- resources to improve 1) the material and Recently, various quality certification
tential impact on ASHRAE members. It services provided by an organization, 2) programs have been promoted. The In-
addresses the feasibility of such struc- all the processes within an organization ternational Organization for Standardiza-
tured programs for professional engineer- and 3) the degree to which the needs of tion (ISO) in Geneva, Switzerland has
ing services and in the manufacturing of the client are met, now and in the future.
About the Author
equipment. TQM integrates fundamental manage-
ment techniques, existing improvement Gordon V.R. Holness is chairman
Total Quality Management efforts, and technical tools under a disci- and CEO of Albert Kahn Associates.
Total Quality Management (TQM) pro- plined approach focused on continuous He is a member of ASHRAE’s Publish-
grams have existed for many years in a improvement. It is also the implementa- ing Council.
January 2001 ASHRAE Journal S193
ASHRAE Journal
developed a series of standards for in- Create consistency of purpose
End the practice of awarding business
dustry. Emanating out of Europe, ISO has towards improvement of product and
on the basis of price tag.
60 member countries. It is rapidly becom- service.
ing the predominant standard for the au- Cease dependence on mass Adopt the new philosophy We can
tomotive and aircraft industries. ISO inspection. Require, instead, no longer live with commonly
standards such as ISO.9000 (1987) cover statistical evidence that quality is built accepted delays, mistakes, defective
quality management and quality assur- i n. materials, and defective workmanship.
ance guidelines for manufacturing com- Find problems. It is management s job Drive out fear, so that everyone may
panies, while ISO.9001 (1994) provides to work continually on the system. work effectively for the company.
similar guidelines related to service indus-
tries and provides a model for quality as- Institute modern methods of training Break down barriers between
surance in design, development, on the job. departments.
production, installation and servicing. Eliminate numerical goals, posters, Institute modern methods of
Companion standards include ISO 9002 and slogans for the work force, asking supervision of production workers.
(1994), which addresses production, in- for new levels of productivity without The responsibility of foremen must be
stallation and servicing; ISO 9003 (1994) providing methods. changed from numbers to quality.
addresses final inspection and testing; Eliminate work standards that Institute a vigorous program of
ISO 14001 addresses environmental man- prescribe numerical quotas. education and retraining.
agement. Although ISO has gained wide-
spread acceptance in Europe and Asia, it Remove barriers that stand between Create a structure in top management
is only now beginning to make signifi- the hourly worker and his right to that will push every day on the above
pride of workmanship. 13 points.
cant inroads in the United States.
ISO 9001 offers a documentation struc- Table 1: Deming’s 14 points for management.
ture supporting a set of policies and pro-
cedures guiding the design, development, Make it clear that management is
Form quality improvement teams with
production, and delivery of manufactured committed to quality.
representatives from each
product, as well as delivery of services department.
(design, educational, research and oth- Determine where the current and Evaluate the quality awareness and
ers). As such, it offers guidelines for most potential quality problems lie. personal concern of all employees.
segments of ASHRAE’s membership. ISO,
itself, does not ensure quality, but it does Raise the quality awareness and Take actions to correct problems
personal concern of all employees. identified through previous steps.
establish a structure for consistent deliv-
ery of product and services. Quality Op- Train supervisors to actively carry out
Establish a committee for the zero
erating Systems (QOS) can serve as the their part of the quality improvement
defects programs.
basis for continuous improvement and, program.
when coupled with TQM programs, can
Hold a zero defects day to let all Encourage individuals to establish
significantly improve not only quality but employees realize that there has been improvement goals for themselves and
also productivity. Taken together, ISO/ a change. their groups.
TQM can move corporations forward in
a complementary and dramatic way to Encourage employees to communicate
to management the obstacles they Establish quality councils to
improve quality. face in attaining their improvement communicate on a regular basis.
The questions for manufacturers, ser- goals.
vice industries, educators and engineers
today are: Recognize and appreciate those who
Do it all over again to emphasize that
• What are the benefits of these participate.
the quality improvement program
never ends.
programs?
• Do they really improve quality and Table 2: Crosby’s 14 steps to quality improvement.
efficiency?
• Is the effort to implement the to these efforts exist? Certainly! When characteristics and needs. It is also im-
programs worthwhile? owners insist on manufacturers and de- portant to advise clients of the qualifica-
• Can the investment and mainte- signers meeting a certification standard, tions and limitations in what you will do.
nance costs be justified? the first question to ask is “has the client Is there increased liability exposure with
• Is this just the latest management embraced and implemented the same stan- or without a TQM/ISO-based quality op-
fad, philosophy and marketing dards in their own operations?” If not, erating system and quality assurance pro-
gimmick? then they may have unrealistic and gram? The answer could be yes either
Even if the answers to these questions unachievable expectations. It is important way. Without such programs, you could
are affirmative, do potential downsides to select your clients and understand their be subject to damaging testimony as to
S194 w w w. p u b - s e r v. c o m / r s / a s h r a e January 2001
 Quality
the “absence of quality assurance” contributing towards your end? No, it’s just the beginning and we have a long way to go
assumed negligence and performance below the “standard of with our continuous improvement program.
care” of the industry. On the other hand, with ISO/TQM you Current expenditure between TQS and ISO is probably about
must be certain that you do what you say. Absence of docu- $2.25 million in personnel time and training. This is a huge in-
mentary evidence of compliance with your own quality plan vestment for a company of our size. Has this expenditure been
will leave you even more vulnerable, regardless of relativity to worthwhile? I believe so. Our corporate profitability has steadily
the issue. Above all, be realistic in what you promise and take and significantly improved (by more than 20%) over the past
care of what you say in promotional materials. Attorneys tell me five years. We are in the final phase of an extensive and expen-
that their favorite sources of damaging information are over- sive program to redo our facilities (at a cost of $4.5 million) to
blown promises in marketing materials and on home web page accommodate and respond to these changes. This included
sites. While we would never accept a contract requiring the modular and flexible workstations and the establishment of stu-
“highest standard of professional practice” (unattainable), we dio teams and project team centers with all technical disciplines
often make that promise to our clients in our marketing. located together.
As indicated previously, ISO, itself, does not ensure quality.
Our Experience It can be a valuable tool and when combined with TQS to de-
First, recognize that with any of these programs fundamental velop Quality Operating Systems (QOS) can be quite effective.
changes in philosophy, management style and organizational While TQS develops the philosophy and culture of an organi-
culture must occur. As a large to mid-sized (400 person) archi- zation, ISO provides the structure to build upon. The ISO 9001
tectural and engineering organization, with a legacy going back model for quality assurance is driven by 20 clearly defined re-
more than 100 years, our company well knows the difficulty in quirements to establish a QOS (Table 3). It provides focus,
changing corporate culture. The tangible elements are relatively discipline and defined responsibilities. It can provide a struc-
easy to address, it is the intangibles that are hard to recognize tured basis to develop systematic programs for improvement.
and even harder to change. It starts by recognizing people, More than anything else, it forces you to document your poli-
their changing cultures and needs, and by understanding who cies and procedures for operations. Computer technology has
they are. From the Great Depression-sensitive, workaholic, World helped enormously, allowing organized filing and retrieval of all
War II leaders of today, to the fast-rising Baby Boomers now documented data. The electronic file becomes the “controlled”
taking over, to the free-wheeling Generation Xers entering the document, providing the latest approved record of current poli-
workforce, a real diversity exists and along with that a chal- cies and procedures. All paper documents are “uncontrolled”
lenge in communication, priorities and direction. data since it is impossible to determine if they are the “latest”
Our company started our Total Quality Service (TQS) Pro- official issue. How often do you dig outdated documents from
gram eight years ago at a time that we were successful and your file drawer for reference or use on a project?
reasonably content with the quality and content of our prod- With ISO there are no halfway measures, it’s all or nothing.
uct. With the help of a consultant, we spent considerable effort However, a lot of irrationalities exist in ISO for service compa-
in internal training and development of our staff and under- nies that need to be worked out with your auditor. Beaumont8, 9
standing of TQS philosophies and culture. Probable cost was provides a good insight into ISO requirements and interpreta-
in excess of $1.75 million over a period of three years. Along the tion. After you get through policies and procedures, large philo-
way, we became far more customer-focused, developed better sophical issues need to be worked out within your organization
client relations and services, established a wide range of bench- as to how far to go in developing policies, procedures and work
marking tools, including issuing client surveys on every project instructions. There are the engineers who want to document
and conducting internal client surveys with our staff. We were and record everything, and then there are the creative archi-
the first AE worldwide to achieve Ford Motor Company’s Q1 tects who want to do things by instinct. Finding the right bal-
Quality Certification in 1995, but not before our first audit showed ance is essential, but the system does provide for substantial
that we had no idea of the realities of establishing a formal, flexibility in its application.
documented quality system. The key for success is to fully integrate TQM into daily func-
As a result of the TQS program, we changed our entire orga- tions, establishing measurable performance goals, appointing
nizational structure, moved away from a technical department- champions for implementation and monitoring, education and
driven, internally focused operation, to an externally driven training as a critical component and establishing benchmarks
market focus group operation with studio teams and team cen- for improvement. This involves full management commitment.
ters. We revised our operations by eliminating top-down-driven It cannot be a flavor of the month. It must create lasting solu-
corporate board committees and moving to a company cross- tions to age-old problems. Benchmarks can range from tradi-
sectional TQS steering committee with process improvement tional business measurables of workload and profitability, to
teams to drive change. We moved on towards QSA-S/QOS as a items like errors and omissions. These are tracked not only to
common standard for automotive OEMs. We have completed follow the trends, but also to compare our performance against
the final lap and were successful in obtaining ISO 9001 Certifi- industry leaders. Vital benchmarks relate to internal client sur-
cation in November 1998 by learning from each step in the veys that address communication and recognition issues, and
process as we progressed through our gap analysis, pre-as- external client surveys that address performance expectations
sessment audit, preliminary audit and initial audit. Is this the and results. A good presentation on TQM is given by Stephen
January 2001 ASHRAE Journal’s Official Product & Show Guide S195
ASHRAE Journal
Section 1.0 Scope 4.6.4 Verification of Purchased Product
4.6.4.1 Supplier Verification
Section 2.0 Normal Reference
4.6.4.2 Customer Verification
Section 3.0 Definitions 4.7 Control of Customer Supplied Product
3.1 Product 4.8 Product Identification and Traceability
3.2 Tender 4.9 Process Control
3.3 Contract 4.10 Inspection and Testing
4.10.1 General
Section 4.0 Quality System Requirement 4.10.2 Receiving Inspection and Testing
4.1 Management Responsibility 4.10.3 In-Process Inspection and Testing
4.1.1 Quality Policy 4.10.4 Final Inspection and Testing
4.1.2 Organization 4.10.5 Inspection and Test Record
4.1.2.1 Responsibility and Authority 4.11 Control of Inspection, Measuring and Test
4.1.2.2 Resources Equipment
4.1.2.3 Management Representative 4.11.1 General
4.1.3 Management Review 4.11.2 Control Procedures
4.2 Quality System 4.12 Inspection and Test Status
4.2.1 General 4.13 Control of Non-Conforming Product
4.2.2 Quality System Procedures 4.13.1 General
4.2.3 Quality Planning 4.13.2 Review and Disposition of Non-Conforming
4.3 Contract Review Product
4.3.1 General 4.14 Corrective and Preventive Action
4.3.2 Review 4.14.1 General
4.3.3 Amendments to Contracts 4.14.2 Corrective Action
4.3.4 Records 4.14.3 Preventative Action
4.4 Design Control 4.15 Handling, Storage, Packaging, Preservation and
4.4.1 General Delivery
4.4.2 Design and Development Planning 4.15.1 General
4.4.3 Organizational and Technical Interfaces 4.15.2 Handling
4.4.4 Design Input 4.15.3 Storage
4.4.5 Design Output 4.15.4 Packaging
4.4.6 Design Review 4.15.5 Preservation
4.4.7 Design Verification 4.15.6 Delivery
4.4.8 Design Validation 4.16 Control of Quality Records
4.4.9 Design Changes 4.17 Internal Quality Audits
4.5 Document and Data Control 4.18 Training
4.5.1 General 4.19 Servicing
4.5.2 Document and Data Approval and Issue 4.20 Statistical Techniques
4.5.3 Document and Data Changes 4.20.1 Identification of Need
4.6 Purchasing 4.20.2 Procedures
4.6.1 General A Bibliography
4.6.2 Evaluation of Subcontractors
4.6.3 Purchasing Data

Table 3: ISO 9001 format/content.

Covey in Implementing TQM – Competing in the Nineties criteria and coordination of technical disciplines. The second
through Total Quality Management.10 relates to risk management review and should be conducted by
a senior manager looking at broader, fundamental application
Key Issues and design issues from a risk or liability standpoint—will the
One of the key issues in a QOS is that of checking the draw- system selected or configured meet the requirements and per-
ings for errors and omissions. The old policy of third-party form?
checking gave way to the philosophy of “do it right the first Are we there yet? Not by half! We are just beginning to see
time” and “self-directed checking,” that recognized that up- the potential. It has been a huge effort with dedicated key re-
stream prevention costs less than downstream correction or sources to make it happen. But we can answer some of the
repair. In this regard, it is important to understand that 20% to questions already.
40% of your employees’ time is spent redoing a task. There What are the benefits? Clearly ISO can improve the opera-
needs to be two layers of checking/review. The first relates to tions of service companies by:
quality assurance and here, clearly, the project designer and • Development of an integrated and structured operating
design team are in the best position to ensure compliance with system.
S196 w w w. p u b - s e r v. c o m / r s / a s h r a e January 2001
 Quality
• Disciplined problem solving. are totally committed and do it properly. I believe that a
• Measured performance, analysis and corrective action. combined TQS/QOS approach is essential. Whether you
• Elimination of loose practices. go all the way to ISO depends on your client base.
• Eradication of wasted work. But, it does have the untapped potential to eliminate waste,
• Improved documentation of policies and procedures. provides a foundation for continuous improvement
• Establishment of empowered cross-functional teams. and provides the measurables to track your progress.
• Defined roles for each team member. • Do these ISO certification programs lead to new clients
• Dynamic and systematic approach that is logical and re- or markets? Maybe! But it depends on who they are.
sults orientated. Industrial—possibly, particularly for European companies,
but other markets—not really. Only a limited demand
Lessons Learned exists for this type of qualification. However, we do
Insist on providing construction follow-up services. They know that our TQS/QI efforts have gotten us two or more
are essential to control the services needed to ensure the suc- new clients.
cessful completion of a contract. • Would we do it again? Absolutely, but I hope that
• Look at the role of the project manager in the quality con- we would learn from our mistakes because we have
trol program. The project manager is really the gatekeeper. made many. We understand the process better and
• Hire dedicated and qualified staff to spearhead QA and would approach the process in a more deliberate and
T&PD Programs. Do not try to give this to someone as a aggressive way than we did. This assumes, however, that
secondary role. changes to our culture could keep pace. (By the way,
• Involve the project manager and the team in the proposal the limitation is in the leadership ranks. Employees gener-
phase of a project so that they really understand the scope ally are quite flexible if a clear and understandable direc-
of work. tion is set.)
• Allocate resources, set priorities, empower the team, stay • The future of certification programs? ISO is not a
informed but get out of the way. panacea for quality improvement. Indeed, it can be a
• Hire good people and expect nothing but the best for real challenge to implement. However, when effectively
them. used in conjunction with a meaningful quality assurance
• Empower the team—the leadership role is to set direction, program, they can have a significant positive impact
not to make all the decisions. on your company. As such, I think the market will con-
• Get feedback from your employees along the way to make tinue to support them, and our clients will demand them.
sure they understand the goals and you understand their Final note: the International Standards Organization, like most
concerns. professional societies, is constantly striving to update its stan-
• Measure and broadcast your successes. dards and terms of reference. ISO is no different, typically oper-
• Choose your TQM consultant and your ISO auditor from ating on a five-year life cycle, and a revised series of 9000
companies familiar with service providers, not just manu- standards are to be issued shortly. Standard 9001 is being
facturing companies. streamlined and tailored more specifically to the service indus-
• Be patient, things will get worse before they get better. tries and users will find it easier to follow and more effective to
• Be consistent, persistent, people will look for reasons not implement.
to follow the programs if they see you wavering.
References
Conclusions Walton, M. and W. Edwards Deming. 1988. The Deming Man-
So, back to the original question: Should ASHRAE members agement Method.
move from an embrace of TQM programs to the next level of Aquayo, R. and W. Edwards Deming. 1991. Dr. Deming: The
incorporating ISO standards? Grammatically one should not Man Who Taught the Japanese about Quality.
answer a question with a question, but here goes: Crosby, P.B. 1992. Quality is Free: The Art of Making Qual-
• Can these systems really improve quality and efficiency ity Certain.
on a consistent basis? Unequivocally Yes! Our external Crosby, P.B. 1989. Quality without Tears: The Art of Quality
client surveys show steady and positive improvements in for Management.
all areas. Our internal benchmarking also shows steady Byham, J.C. and Jeff Cox. 1992. Zapp –The Lightning of Em-
improvements in production efficiency. powerment.
• Are these programs only applicable to large companies or Belasco, J.A. and R.C. Stayer. 1993. Flight of the Buffalo:
should smaller firms also participate? I believe they are Soaring to Excellence, Learning to Let Employees Lead.
applicable regardless of company size. Establishing cor- Belasco, J.A. 1991. Teaching the Elephant to Dance.
porate design standards and standard details, for example, Beaumont, L.R. 1993. ISO 9001 The Standard Companion.
avoids repeating the same mistake over again and makes Beaumont, L.R. 1995. ISO 9001 The Standard Interpretation.
it easier to bring new staff up to speed with company Covey, S.R. and J.R. Jablonski. 1994. Implementing TQM:
practices. Competing in the Nineties through Total Quality
• Is it a worthwhile investment to make? Only if you Management.
January 2001 ASHRAE Journal’s Official Product & Show Guide S197