8.3 Relationships between ISO and TQM

	Although Total Quality Management (TQM) came on the scene first as a method for companies to improve
	profits and repeat business, complying to the ISO 9000 standards is the first thing a company should
	consider to improve the way it does business.
	Questions you may have include:

		Why should ISO 9000 be used first?
		What is the role of using TQM concepts?
		What are the benefits of using the two together?

	This lesson will try to answer those questions.
	Using ISO 9000 first.

		ISO 9000 consists of a set of international standards for running a business in an effective manner.
		These standards require a business to document their plans, specifications, procedures, activities,
		and such.

Like planning household finances.

		Using ISO 9000 is analogous to planning your household finances and keeping your records straight
		for paying your bills and taxes.

8.3 Relationships between ISO and TQM

		Keeping your records straight, as recommended in the ISO 9000 standards, is the first step in
		effectively running a business.

Organizes business.

		Getting your house in order is the very first thing a company should do in order to run effectively.
		You must make sure you know where your money and goods are going.
		You need records for paying your bills and taxes.
		You need your employees to do consistent work.
		A business that follows the ISO 9000 standards will usually eliminate wasteful and careless practices
		that can drain their profits.

Verify following standards.

		By becoming registered in ISO 9000, a company is verifying that it is fulfilling the general requirements
		for operating a business in an effective manner.
		It is also possible for a company to simply comply to the standards, as a business strategy, without
		formally becoming certified.

8.3 Relationships between ISO and TQM

TQM enhances good company.

		On the other hand, TQM is a way of running a business that concentrates on satisfying the customer.
		Its use will result in repeat and continued business.
		TQM should usually be started after a business properly documents its activities, as per ISO 9000.
		Besides satisfying the customer TQM also is concerned with empowering the workers.
		This will ensure that their skills are effectively used and that they feel they have a stake in the success
		of the organization.
		A final aspect of TQM is the use of statistics to determine the correct areas to make changes and
		improvements.

Companies use both to their benefit.

		Companies that have effectively implemented ISO 9000 standards and TQM concepts have
		dramatically improved their profits and customer retention.

Can be misused.

Unfortunately, both of these methods have been misinterpreted and misused by many companies.

8.3 Relationships between ISO and TQM

		Some companies have simply paid lip service to ISO 9000 and schemed to find ways to get around
		the requirements and to fool the auditors.
		They see ISO 9000 as an intrusion to the way they prefer to do business, instead of a good method to
		reduce costs in the long run.
		Many companies have used TQM as an excuse to downsize and pressure their workers to produce
		more for less money.
		Downsizing was later taken over by the re-engineering movement.
		Customer satisfaction became more of a buzzword than a practice.

Proves beneficial.

		In general, companies that have honestly employed ISO 9000 and/or TQM have been proven to be
		better run, have fewer problems, have less waste, get more repeat business, and have increased
		profits.
		Of course, having a well-run company is not the only thing that results in success.
		A good product line, effective marketing, and being able to beat out the competition are very important
		factors.
		But by employing first ISO 9000 and then TQM methods, a company can get a leg up on its competition.