Measuring quality management system performance using quantitative analyses

Dissertation submitted in fulfilment of the requirements for the degree Master of Technology: Quality in the Faculty of Engineering at the Cape Peninsula University of Technology, 2013Many top performing businesses, which achieve superior levels of success and sustainability, have a sound, implemented, and well maintained, Quality Management System (QMS). The correlation between business success and an implemented management system has been shown in numerous papers. This research, which culminates in a quantitative measure of QMS performance, was conducted at Eskom’s Koeberg Nuclear Power Station (KNPS). The power station is the operating leg of the Koeberg Operating Unit (KOU). The researcher is a QMS lead auditor in the KNPS Quality Assurance Department. A program of audits is planned based on the KOU quality and safety manual and the national regulatory licencing requirements. The audit monitoring program is then implemented over a three year period and considers all the management system processes which impact on nuclear safety and business performance. The individual audits each consider ISO 9001 criteria in context of the business area audited. Each major business area (e.g. design, maintenance, etc.) within the power station adheres to all generic ISO 9001 QMS clauses and considerations, such as documentation management, records management, etc. Each process or business area audit is thus effectively a QMS audit. The audit results, when combined are therefore a representative measure of the overall organisational QMS performance. The potential value to be gained from the audit results and data accrued over the monitoring period has not been optimised to maximise the return on investment to Eskom. The research problem statement thus proposes that the performance measurement capability of the quality management system at Eskom's Koeberg Power Station is insufficient. This diminishes management's ability to identify business risk resulting from management system deficiencies, which impacts negatively on business performance. The research question seeks to determine how the performance measurement capability of the QMS can be improved to assist management in identifying business risk resulting from quality management system deficiencies in order to improve business performance. The research objectives are supported by the literature study, which identifies the quality management methods currently used in order to measure and subsequently improve business performance. It also shows how QMS performance measurement, when deconstructed and analysed can provide the required insight for supporting management decision making. The research approach is considered inductive in that a theory is developed based on the collection and the analysis of that data. Applied research, will thus serve as the basis of the research methodology as it is considered the most appropriate research approach, based on the need to answer practical questions around the measurement of QMS performance philosophy. The research shows that by introducing additional theming and severity data into the secondary audit findings data, it is possible over time to extract high level strategic direction information when analysing the additional metadata. The dimensions and value of the QMS Performance measuring instrument are: Ø A cause and effect theming philosophy of audit findings providing an additional context to business improvement advice to management. Ø The provision of a QMS process deficiency locator / identifier which targets management action areas for improvement. Ø The provision of a quantitative measure of the management system performance, providing a reference from which to improve. By providing a quantifiable measure of an organisations QMS performance, a reference point is provided to gauge QMS performance and also render a definitive measure to enable performance improvement of the business