August 19, 2018 – The world is too small? or Is it?

Welcome to August, 2018 edition of Carnival of Quality Management Articles and Blogs.

ISO 9004 and ISO 19011, the two important guidelines standards in the ISO family of standards have been recently revised. Therefore, we will take a quick recap of Changes in ISO 9004: 2018 as well as in ISO 19011:2018 in our August, 2018 issue.

ISO 9004: 2018 cancels and replaces the third edition (ISO 9004:2009), which has been technically revised. The main changes compared to the previous edition are as follows:

alignment with the concepts and terminology of ISO 9000:2015 and ISO 9001:2015;
focus on the concept of “quality of an organization”;
focus of the concept of “identity of an organization”

[Note: We will cover the concepts – “quality of an organization” and “identity of an organization” in our subsequent issues.]

Secrets of business success in new ISO standard – The 2018 Corporate Longevity Forecast lists new technologies, economic shocks, disruptive competitors and failure to adequately anticipate and prepare for future challenges as some of the key reasons cited for the demise of the organizations sooner than later..IS0 9004:2018 intends organizations not only to survive, but achieve “sustained success”, by addressing topics such as the alignment and deployment of strategy, policy and objectives within the broader context of the organization’s vision, mission, values and culture.

ISO 9004:2018 – Sustaining Success – ISO 9004:2018 has taken a major step in defining itself as a standalone document that is related to—but separate from—ISO 9001:2015. It’s all about business, with a primary focus on organizations’ sustained success…The words “sustained success” have been chosen carefully and may be confusing to some people because ISO and quality management system-related standards consistently promote improvement in their titles. ISO 9004:2018 broke with that tradition to convey the message that no matter what an organization attempts, it must first adopt sustainability as a bedrock principle.

ISO 19011:2018 was updated to ensure it continues providing effective guidance to address changes in the marketplace, evolving technologies and the many new management system standards recently published or revised.

The main differences compared to the 2011 edition are as follows:

addition of the risk-based approach to the principles of auditing;
expansion of the guidance on managing an audit programme, including audit programme risk;
expansion of the guidance on conducting an audit, particularly the section on audit planning;
expansion of the generic competence requirements for auditors;
adjustment of terminology to reflect the process and not the object (“thing”);
removal of the annex containing competence requirements for auditing specific management system disciplines (due to the large number of individual management system standards, it would not be practical to include competence requirements for all disciplines);
expansion of Annex A to provide guidance on auditing (new) concepts such as organization context, leadership and commitment, virtual audits, compliance and supply chain.

With these improvements, ISO 19011:2018 still details the principles of auditing, managing an audit program, and conducting management system audits. It also details guidance on evaluating the individuals managing the audit program, auditors, and audit teams.

ISO 19011:2018 provides valuable information on how to improve an audit program systematically, just as other departments in an organization are expected to improve… Organizations, in pushing for auditing improvements, should consider the needs of customers and other interested parties…An area of increasing importance in auditing management systems and business in general is the concept of risk. As of the 2011 edition, risk has been integrated throughout the audit program management section of the ISO 19011:2018 standard.

[Note: We would take up ‘concept of risk’, as ingrained into the auditing process, in our next issue.]

We will now turn to our regular sections:

For the present episode we have picked up William Cohen, Ph.D’s article How to Avoid Inevitable Failure Through Innovation @ Lessons From Drucker column of Management Matters Network….’If any organization continued to do what in the past had made it successful, it was certain that it would eventually go under’ was one sure way that Drucker knew that an organization was going to fail…Avoiding failure requires innovation, and innovation is one of two primary tasks of any business, the other being marketing…He also understood that resources in time, talent, capital, and facilities are needed every time an innovation is initiated and exploited. This led Drucker to a very important concept which has come to be called “abandonment.”… Drucker saw that logically this meant that an organization must be prepared to abandon everything it does at the same time that it must devote itself to creating the new. So that abandonment must simultaneously be executed along with continuous improvement, exploitation of past successes and innovation.

We now watch one of the latest ASQ TV episodes:

Implementing a Continuous Improvement Program – Chris Moustakas, CEO, DevonWay, discusses the strategy behind implementing an org-wide continuous improvement program.

Jim L. Smith’s Jim’s Gems posting for August, 2018 is:

Organizational Excellence in Quality Management – The basic element is people who care. – People who care understand the negative impact of doing less than their best…Caring isn’t a new concept. The late Dr. W. Edwards Deming called it “pride in workmanship”…. If their employees really do care, it is so tangible it can be felt and detected in many ways. There’s a foundation of caring permeating throughout the organization. However, if people don’t care, it really doesn’t matter what kind of products or system they have or how many plaques are hanging on the walls, they will never achieve the level of performance needed for all to succeed.