Principle 7 : Factual Approach Essay

1420 WordsJul 8, 20166 Pages
Principle 7 - Factual Approach to Decision Making: “Effective decisions are based on the analysis of data and information” (International Organization of Standardization, 2011f). According to Deming (1986), quality can be improved if it measurable. Thus, it is important to collect data and information accurately so that the process of analyzing the data and information results in meaningful in terms of linkage between key measures and business performance (Evans & Lindsay, 2008). Statistical process control, design of experiment and quality function deployment are some of the quality tools to analyze and improve quality. Principle 8 - Mutually Beneficial Supplier Relationships: “An organization and its suppliers are interdependent and a mutually beneficial relationship enhances the ability of both to create value” (International Organization of Standardization, 2011f). Establishing long-term relationship and minimizing the number of suppliers can improve the relationship with the supplier (Kaynak, 2003). By having close relationship, these parties can have more focus on solving quality problem. Moreover, Baird et al. (2011) argue that supply chain management is positively related to inventory performance. However, their study shows that it does not significantly related to quality performance. Quality management principles are translated into requirements. The successfulness of standards implementation is related to ISO 9000 policy and procedural knowledge (Russo, 1995).
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