ISO 10014:2006(en) Quality management — Guidelines for realizing financial and economic benefits enhanced organizational performance, credibility and sustainability.

Foreword

ISO (the International Organization for Standardization) is a worldwide federation of national standards bodies (ISO member bodies). The work of preparing International Standards is normally carried out through ISO technical committees. Each member body interested in a subject for which a technical committee has been established has the right to be represented on that committee. International organizations, governmental and non-governmental, in liaison with ISO, also take part in the work. ISO collaborates closely with the International Electrotechnical Commission (IEC) on all matters of electrotechnical standardization.

International Standards are drafted in accordance with the rules given in the ISO/IEC Directives, Part 2.

The main task of technical committees is to prepare International Standards. Draft International Standards adopted by the technical committees are circulated to the member bodies for voting. Publication as an International Standard requires approval by at least 75 % of the member bodies casting a vote.

Attention is drawn to the possibility that some of the elements of this document may be the subject of patent rights. ISO shall not be held responsible for identifying any or all such patent rights.

ISO 10014 was prepared by Technical Committee ISO/TC 176, Quality management and quality assurance, Subcommittee SC 3, Supporting technologies.

This first edition of ISO 10014 cancels and replaces ISO/TR 10014:1998, which has been technically revised.

The intent of this edition is to improve the relationship of ISO 10014 with the ISO 9000 series of International Standards and to include a new structure relating to the quality management principles. Also, the title and the scope have been revised to reflect the changes in the ISO 9000 series and to give guidance for performance improvement and realization of the aim of this International Standard.

Introduction

This International Standard is addressed to top management. It provides guidelines for realizing financial and economic benefits through the effective application of eight quality management principles derived from ISO 9000:2005. These principles are subsequently referred to as “management principles” within the body of this standard. The intent of this document is to provide top management with information to facilitate effective application of management principles and selection of methods and tools that enable the sustainable success of an organization. A self-assessment is included as a gap analysis and prioritization tool (see Annex A).

This International Standard builds upon these interrelated management principles to develop processes that facilitate the realization of the organization's objectives.

The management principles are

• a) customer focus,
• b) leadership,
• c) involvement of people,
• d) process approach,
• e) system approach to management,
• f) continual improvement,
• g) factual approach to decision making, and
• h) mutually beneficial supplier relationships.

Adoption of these management principles is a strategic top management decision. It affirms the relationship between effective management and realization of financial and economic benefits. Deployment of appropriate methods and tools fosters the development of a consistent systematic approach for addressing financial and economic objectives.

Economic benefit is generally attained through effective management of resources and implementation of applicable processes for improving the overall worth and health of the organization. Financial benefit is the result of organizational improvement expressed in monetary form, and realized by cost-effective management practices within the organization.

Successful integration of the management principles relies on the application of the process approach and the Plan-Do-Check-Act (PDCA) methodology. This approach enables top management to assess requirements, plan activities, allocate appropriate resources, implement continual improvement actions and measure results in order to determine effectiveness. It allows top management to make informed decisions, whether they relate to the definition of commercial strategies, the development of a new product or the execution of financial agreements.

Financial and economic benefits that can result from the application of the management principles include

• — improved profitability,
• — improved revenues,
• — improved budgetary performance,
• — reduced costs,
• — improved cash flow,
• — improved return on investment,
• — increased competitiveness,
• — improved customer retention and loyalty,
• — improved effectiveness of decision making,
• — optimized use of available resources,
• — heightened employee accountability,
• — improved intellectual capital,
• — optimized, effective and efficient processes,
• — improved supply chain performance,
• — reduced time to market, and
• — enhanced organizational performance, credibility and sustainability.

This International Standard is applicable equally to organizations with products that include services, software, hardware and processed materials. It is relevant in both the public and private sector and can provide useful guidance regardless of the number of employees, diversity of product offerings, revenues, complexity of processes or number of locations. It also provides support to public and governmental organizations to facilitate sustainable economic growth and prosperity.

1   Scope

This International Standard provides guidelines for realizing financial and economic benefits from the application of the ISO 9000 quality management principles.

NOTE These are herein referred to as “management principles”.

This International Standard is directed to top management of an organization and complements ISO 9004 for performance improvements. It provides examples of achievable benefits and identifies management methods and tools that are available to assist with the achievement of those benefits.

This International Standard consists of guidelines and recommendations, and is not intended for certification, regulatory or contractual use.

2   Normative references

The following referenced documents are indispensable for the application of this document. For dated references, only the edition cited applies. For undated references, the latest edition of the referenced document (including any amendments) applies.

• ISO 9000:2005, Quality management systems — Fundamentals and vocabulary

3   Terms and definitions

For the purposes of this document, the terms and definitions given in ISO 9000 apply.

NOTE 1 In ISO 9000:2005, the term product (3.4.2) is defined as the “result of a process”, where process (3.4.1) is defined as “set of interrelated or interacting activities which transforms inputs into outputs”. The term product encompasses four generic product categories: services, software, hardware, and processed materials. These terms are further described in ISO 9000.

NOTE 2 Documents referenced outside the ISO 9000 family of standards might have terms and definitions that differ from those of ISO 9000.

Bibliography

[1]	ISO 9001, Quality management systems — Requirements
[2]	ISO 9004, Quality management systems — Guidelines for performance improvements
[3]	ISO 10002, Quality management — Customer satisfaction — Guidelines for complaints handling in organizations
[4]	ISO 10007, Quality management systems — Guidelines for configuration management
[5]	ISO 10015, Quality management — Guidelines for training
[6]	ISO/TR 10017, Guidance on statistical techniques for ISO 9001:2000
[7]	ISO 11462-1, Guidelines for implementation of statistical process control (SPC) — Part 1: Elements of SPC
[8]	ISO 14001, Environmental management systems — Requirements with guidance for use
[9]	ISO 19011, Guidelines for quality and/or environmental management systems auditing
[10]	ISO/IEC 17799, Information technology — Security techniques — Code of practice for information security management
[11]	ISO/IEC Guide 73, Risk management — Vocabulary — Guidelines for use in standards
[12]	ISO/IEC 15288, Systems engineering — System life cycle processes
[13]	IEC 60300-3-3, Dependability management — Part 3-3: Application guide — Life cycle costing
[14]	EN 12973, Value management
[15]	ISO/TC 176/SC 2 544, Guidance on the Concept and Use of the Process Approach for Management Systems
[16]	ISO/TC 176/SC 2, Quality management principles brochure