See discussions, stats, and author profiles for this publication at: https://www.researchgate.

net/publication/237503670

QUALITY MODELS AND SYSTEMS AND THEIR INFLUENCE TO THE BUSINESS

Article · January 2006

CITATION READS

1 1,986

2 authors, including:

Juozas Ruzevicius
Vilnius University
66 PUBLICATIONS   486 CITATIONS   

SEE PROFILE

Some of the authors of this publication are also working on these related projects:

Rimantas Zajarskas View project

All content following this page was uploaded by Juozas Ruzevicius on 08 March 2014.

The user has requested enhancement of the downloaded file.

VADYBA / MANAGEMENT. 2006 m. Nr. 2(11) 129

QUALITY MODELS AND SYSTEMS AND THEIR INFLUENCE

TO THE BUSINESS

Juozas Ruzevicius, Jurate Sauciuniene

This is an analysis of the theory, methodology and business practice used to measure quality. The models and are
presented and some of its elements are discussed in relation to its influence on the competitiveness of Lithuanian business.
Special attention is given to new aspects in quality assessment, in particular, social quality. The fundamental elements of
these qualities are also presented. The authors conducted surveys of Lithuanian businesses and consumers and has used
this data to formulate and test the model and interpret its elements.
Key words: systems of quality, total quality management, international regulations of quality.

Introduction
The integration of the world economy and the resultant growth in competition has made quality one of
the most important factors in an organisation’s survival and success. The European Union’s (EU) Quality
Promotion Policy considers quality to be the main strategic instrument in European organisational activity. In
2000, the European Organisation for Quality announced the European Vision of Quality, which focussed
especially on new perspectives in quality formation – where quality management should encompass not only
the technological and economic aspects of product and service quality, but also incorporate both the unique
and the universally-accepted activities undertaken by social, environmental and other organisations [1]. The
partnership between business, state institutions and community organisations is equally important in ensuring a
certain standard of quality. The aim of this study is to disclose the importance of quality in the economics and
social field, to highlight the systems related to quality management, to reveal their content, to educe the
components of the new quality aspect – the social quality using the data on Lithuanian businesses collected by
the authors to validate the quality model’s relevance. Methodology: this article refers to scientific, normative
and legal literature, as well as logical analyses of economic activity and generalisations based on theoretical
and methodological assumptions, systemised business practices, and the results of the author’s systemised
research on quality-related problems.

2. Quality and Total Quality Management (TQM) concepts

Quality, as a concept, does not easily fit into any given timeframe. Our human understanding of quality
lays a long way back in history, perhaps even a million years ago, or when humans first began constructing
tools [2]. The concept of quality rests on its management, so before delving deeper into quality management
measures and systems we should first familiarise ourselves with definitions of quality. The concept of quality
has long been analysed by numerous representatives from many academic and business backgrounds. Despite
this, one universal and common definition of quality is yet to be agreed on. The reason for this is the
complexity and breadth of quality as a concept which is due to the great variance in quality, in terms of all the
factors and issues that affect it. In other words, quality is not a static, but a dynamic concept that, over time, is
treated differently depending on current specifications and the particular object concerned [1; 2]. Quality may
be defined as meeting certain set standards and specification requirements, being suitable for use, or the degree
of customer/client satisfaction. We may evaluate quality according to which particular aspect of consumer
needs a given product satisfies. In this approach we may evaluate the product‘s functionality, reliability, and
how it meets various social, ergonomic, aesthetic, environmental, and economic requirements. One of authors
of this article suggests that we defined quality in terms of the total sum of a product‘s features that ascribe its
suitability to meet all expressed and implied consumer needs as determined by the product‘s conditions of use
and its purpose. Quality also incorporates product‘s defectives and its impact on the environment [1]. In
business practice the concept of quality is often interpreted more narrowly, that is, how product‘s features
satisfy standards, technical regulations, specifications, legal acts, and commercial contract requirements.
Quality is important not only as a measure of how competitive a business is, it also determines the efficacy of
sciences, technologies, state governance and other public sector organisations, the stability of a nation’s
economy, and the quality of life of its citizens. This is why it is necessary to broaden our understanding of
quality. The model of interaction of the sciences, technologies, quality and economics is showed in Figure 1.
Technologies and quality are the integrating and maintaining factors of the engineering, economics, and
management systems.
130 VADYBA / MANAGEMENT. 2006 m. Nr. 2(11)

MANUFACTURING,
BUSINESS,
SERVICES

Engineering
systems Economics
and
management
QUALITY systems ECONO-
MANAGEMENT
SYSTEMS
MICS
ENGINE- &
(also environmental, safety, MANAGE-
ERING health, social responsibility MENT
systems)

Economics
and
Engineering management
sciences sciences

SCIENCES
Fig. 1. The cycle of the sciences, technologies, quality and economics

The term “Total Quality Management” is currently well-established in scientific and academic circles, as
well as in business world and has replaced a number of different terms such as Total Quality Control, Total
Quality Improvement and Strategic Quality Management that were bringing a lot of confusion a decade ago,
but basically described the same concept. Despite the fact that there is no unanimous opinion of what the
essence of TQM is or what the key issues it covers are, definitions that describe the concept the most precisely
and comprehensively are presented below. Walsh et al. describes TQM as the creation of an organizational
culture, in which continuous strive to satisfy the needs of the clients is encouraged and sustained by using an
integrated system of tools, methods, and trainings [3]. Anjard refers to TQM as a purposeful cultural
movement towards establishing a management philosophy, which would stimulate all employees to bear
responsibility for providing high quality services and products [4]. Gunasakaran et al. defines TQM as a
management philosophy and a system of methods and procedures that formulates an overall systematic
approach to quality: that everyone is responsible for it [5].
According to the opinion of the authors of this article, TQM is a management theory (philosophy)
putting exclusive emphasis on quality and a system of practical management tools, which allows an
organization, which chooses to use them, to continuously improve itself by involving its employees into all
processes of quality improvement to fully satisfy the needs of internal and external customers and to provide
value to the employees, shareholders, clients and society. To reach the aforementioned goals TQM
organization uses an integrated system of more than 100 management methods, models, and employees’
competency development system and refers to the following principles [1-5]:
organization’s top management’s dedication to pursuing quality and providing leadership;
directing management activities towards satisfying the needs of internal and external customers and
systemically measuring this process;
continuous improvement of all organization’s activities;
involving every employee into quality improvement processes;
creation of nonconformity prevention (and not only identification) system;
VADYBA / MANAGEMENT. 2006 m. Nr. 2(11) 131

public announcement and pursuance of organization’s vision, values, mission, quality policy and
commitments;
switching the emphasis in quality area towards developing human resources (taking care of
employees’ needs, increasing their qualification, etc.);
designing quality assurance system as a continuous and integral process, concentrating the efforts
towards ensuring that quality is the result of all the intermediate stages (process management);
devoting attention to data, facts and their systematic analysis (fact-based decision making, quality
measurement, systematic application of quality management methods);
taking care of customers’ success (following the principle – “we succeed, if our clients succeed”);
involving organization’s partners into solving the problems of quality improvement and expansion;
emphasizing teamwork and cooperation within organization;
eliminating the atmosphere of fear (to make mistakes, criticize, etc.); constructive criticism and
analysis of mistakes is used as a tool for improving organizational activities;
corporate social responsibility;
development of ecology-friendly culture (precautious expansion, promoting business philosophy of
environment-friendly manufacturing processes and products);
prioritizing change management and knowledge management;
systematic training and education of organization’s employees, directed towards transforming their
mindsets and company’s culture into one supporting the concept of TQM and facilitating the adoption of its
methodologies and the implementation of the quality policy.

3. Development of food quality and safety management systems

With the increasing complexity of food technologies, ingredients and assortment, globalization of sales, a
need arose to create a system, which on an international level would guarantee food safety and quality independent
of which world region the ingredients and food are imported [6; 7]). The first step of this process began in 1962
when the Food and Agricultural Organization of the United Nations (FAO) and the World Health Organization of
the United Nations (WHO) created the food standards organization, called the Codex Alimentarius Commission.
This is an international organization joining more than 160 nations. It prepares international standards (Codex Stan)
for food products, general labeling, food additive requirements, regulations for good food hygiene practices, special
limitations for impurities in food and regulations for good agricultural and veterinary practices.
1. The second step in this process occurred with international agreements at the World Trade
Organization:
1. Agreement on Agriculture (AoA) applied the main trade rules to agriculture. The three main
principles of this agreement are used to lower trade barriers, reduce national farm subsidies and to decrease
export subsidies.
2. TBT – Agreement on Technical Barriers to Trade is an agreement whose purpose is to guarantee that
standards and technical regulations, including package labeling and certification requirements, do not create
unnecessary barriers to international trade. TBT agreements regulate barriers for the trade of food products and
other products. TBT criteria include various areas from automotive safety to energy saving equipment. This
agreement also includes packaging and labeling for food products [8; 9]).
3. SPS – Agreement on Sanitary and Phytosanitary Measures is an agreement that just covers food
products and animal feeds, which can pose a health hazard to humans or harm plants. The SPS Agreement
includes criteria, whose purpose is to safe guard the health and life of humans and animals from harmful food
products; diseases which can pose a hazard to the health and life of humans borne by animals or plants; animals
and plants from harmful pests and diseases [15]). [10]).
Sanitary regulations are those that protect the health of humans and plants. Phytosanitary measures are those
that safeguard the health of plants from pests and disease-bearing organisms. The SPS Agreement guarantees clarity,
assures that criteria applied to the assurance of the health of humans, animals and plants are accessible to all
interested parties and their trading partners. This agreement requires each State, without delay, to publish all sanitary
and phytosanitary regulations and on request of another State, to issue clarifications concerning the consumption of
certain food products and criteria associated with the health of plants and animals.
Most of the food labeling regulations, caloric values and food quantity criteria, quality and packaging
conditions are not sanitary or phytosanitary criteria, therefore they are discussed in the TBT Agreement. On the
other hand, regulations related to the microbiological contamination, pesticides or the allowed amounts of
veterinary medicines or food additives are discussed in the SPS Agreement. The SPS Agreement does not
regulate pharmaceutical products although these products are related to the health of humans. Further, the
132 VADYBA / MANAGEMENT. 2006 m. Nr. 2(11)

WTO does not include tobacco as a food product; therefore the TBT Agreement and not the SPS Agreement
regulates the labels and warnings placed on a package of cigarettes [6]. The legal and technical quality control
system regulations for production and international trade are summarized in figure 2.
The WTO recommends that member States use international standards (ISO, IEC, Codex Stan, etc.) as
often as possible in the conduct of international business or trade.
The third step of this process is the implementation of the food safety assurance system. With the
increasing complexity of the composition and technologies associated with the production of certain food
products, the cost of maintaining State inspection services has become an unacceptable financial burden.
Governments have started to look for ways to reduce the financial costs associated with food control without
reducing its effectiveness. This changed the definition of inspection in the food industry by returning the
responsibility for food quality control and safety to the producer and distributor.
At this time in western countries, food safety inspections are defined as those inspections, which are regulated
by national and local government agencies working together with the food industry so that activities associated with
food manufacturing, storage, transportation and distribution work as one system [11-13]. This assures that food is
suitable for human consumption and meets all of the safety and quality requirements. Ingredients stated of the
products labels must correctly and honestly reflect the composition of the product as required by law.
The transformation of the definition of food quality control has required food product manufacturers and
distributors to take additional responsibility for their manufactured products by implementing strict procedures
assuring product safety and quality. In other words, a new food safety and quality assurance system is being
developed to prevent food products not suitable for consumption from reaching the market.

5
Products Services
4

Organisations

Fig. 2. Model of international regulations of quality:

1. Standards (ISO, IEC, Codex Stan, IDF, EN, ETS, LST, DIN, BS, NF, UNI, GOST / ȽɈɋɌ,
GOST–R / ȽɈɋɌ–Ɋ , etc.); technical specifications (international, regional, national, branches of
production, organizations).
2. International legal regulations (international conventions, agreements, codex, EU directives,
technical requirements, regulations associated with good practices, World Trade Organization – WTO
decisions).
3. National legal regulations (laws, resolutions, decrees, technical requirements, hygiene norms (lith. –
HN), documents associated with environmental norms (lith. – LAND), medical norms (lith. – MN), technical
building requirements (lith. – STR), etc.).
4. Product conformity assessment and quality certification (required, voluntary, environmental,
origin of product, supplier conformity declaration).
5. Company activity (production) certification (Voluntary – quality management systems ISO 9001;
environmental management systems ISO14000; Occupational Health and Safety Management Systems OHSAS
18000 – LST 1952: 2004 ; Organizational Social Responsibility systems CSR, ISO 26000, SA 8000; Capability
Maturity Models CMM, etc. Required – food product safety assurance systems – Hazard Analysis Critical
Control Points HACCP – ISO 22000; Good Hygiene Practices GHP; Good Manufacturing Practices GMP;
Good Distribution Practices GDP, etc.).
6. Additional quality assurance regulations written in commercial contracts.
7. Requirements of society.
VADYBA / MANAGEMENT. 2006 m. Nr. 2(11) 133

Once this system is implemented, government agencies activities will concentrate on auditing such
systems, rather than the quality assurance of the individual products. Currently, to assure food safety, the most
widely used system of risk analysis and control is the HACCP system. EU directive 93/43/EEC defines how
this system is implemented in the EU, while in the Republic of Lithuania the HN 15:2001. In 1997, AB “Kraft
Foods” was the first company in the Republic of Lithuania to implement this food safety and quality assurance
system.
Universal international management systems (ISO 9001, ISO 14001, etc.) cannot always be effectively
adapted to the management of specific businesses [14-16]. Specialized management systems, such as QS 9000
and ISO/TS 16949 (automobile industry), TL 9000 (telecommunications); Tick IT (information technologies),
CCM (computer programs), OHSAS 18000 (employee health and safety), etc. have been created to fulfill
specific needs. The new ISO 22000 food-safety management systems are also included in this group of
specialized management systems [17]. ISO 22000, which includes food safety management requirements, can
be applied to any part of a food safety management organizational structure. When comparing the current
HACCP system with ISO 22000, certain new requirements can be seen such as the creation of interactive
communication systems within and outside the company, the creation of a system for the prevention of
unforeseen situations, implementation of certain necessary programs, etc. An effective communication
management system must be created between the producer, suppliers, subcontractors and consumers (first
concerning information about the product), government institutions overseeing the food products market or
other organizations, which will affect or be affected by the results of the food safety management system. Since
the amount of incoming and outgoing information is large, this information must first be classified, the form of
retaining this information and its content, etc. must be determined. The standard requires that interactive
communications must be planned and supervised in such a way so that important food safety factors are
identified and adequately managed at each stage of production. All concerned parties must be informed in a
timely manner about all technological and management changes. It is also important to identify, define and
manage all potentially hazardous situations (fire, accidents, power loss, forces of nature, etc.) by developing
and implementing appropriate management procedures. The management system, which is developed, will
have to accurately define product labelling procedures, form and content. The implementation of labelling
procedures for genetically modified products is very complicated. If the ingredients supplied are genetically
modified the supplier must present a certificate indicating the specific nature of the genetic modification. The
integrated HACCP, ISO 22000 and ISO 9001 safety and quality management system can to assure product
safety and improve the overall quality at the company. Survey of Lithuanian organizations confirmed that new
quality system models stimulates companies to study and implement total quality management.

4. Quality integrated model

Integration processes in the world’s economy and the growth of international trade have led to the
internationalisation of quality processes, and quality remains one of the most decisive elements dictating a
company’s competitive ability. In light of this, the European Quality Promotion Policy and quality politics
have ensured EU industries a strategically important position in the 21st century [1]. This program gives
particular attention to training employees at all levels in quality awareness and assessment, as well as
providing further training for quality management positions.
Lithuania must create and develop a competitive economy which can secure the welfare of its citizens if
it wants to establish itself and remain an equal and respected member of the international community in the
current world climate. Now that Lithuania is a member of the EU, the competitive ability of its national
products and services will depend not only on the ability of individual organisations to safeguard quality, but
on the combined efforts of all sectors of the economy and other state institutions.
Quality is important not only as a measure of how competitive a business is, it also determines the
efficacy of state governance and other public sector organisations, the stability of a nation’s economy, and the
quality of life its citizens enjoy. This is why it is necessary to broaden our understanding of quality, so that
other aspects (e.g. social) are also covered. The author’s quality integrated model can be seen in figure 3.
During this period of our nation’s full integration into the European economy quality is of particular
importance not only for traditional industries, businesses and service providers, but for the public economy as
a whole, for the public sector as much as for effective governance. That is why in addition to the quality of
products and services, the quality model also reflects other wider dimensions in quality management, such as
quality of governance, public economy and social quality, the social responsibility of organisations, the quality
of education, quality of life, consumer satisfaction indicators and so on. Social quality refers to the quality of
government and public sector organisations, social equality, quality of life, the social responsibility of
134 VADYBA / MANAGEMENT. 2006 m. Nr. 2(11)

organisations, partnerships between business, state institutions and society, etc. The social responsibility of
organisations refers to the system of attitudes, actions and means by which these organisations function with
interested third parties with respect to the integration and prioritisation of social interests, ethical norms and
environmental protection requirements. At present, social and life quality in Lithuania has not yet been
systematically researched.

1. Value
7. Infrastructure orientation
(nationals,
for quality religious, organs of
government, market
participant
consumers)
6. Quality 2. Social
management, Systems Principles quality
standardisation, (quality of life,
certification, consumer
quality satisfaction
indicators, quality
evaluation, of governance,
comparative QUALITY social
testing of responsibility
Method Functions

5. Product
(commodities, services, Models 3. Quality of economic
intellectual property, management,
processes...) quality & sustainable development,
organisational performance &
environmental
business excellence
indicator’s design
4. Qualitative
diversity of
products

Fig. 3. Quality integrated model

Quality management in state and public sectors. In order to improve the quality of state management and
the administrative abilities of employees in the public sector specifically formulated quality assessment
programs are needed. Similarly, quality management models and methods for the improvement and evaluation
of the results of the activitites carried out by these institutions are also necessary. The widespread acceptance
and use of quality management methods hinges directly on society’s willingness to embrace this concept and
fully appreciate its benefits. Thus, the public needs to broaden its knowledge of issues relating to quality and
environmental management, competitive ability, regional EU and innovation politics, the creation of civil
society, the general social responsibility of organisations, and so on. The quality and image-formation of
national products and services and the general improvement of the activities of organisations can only be
secured through co-operation between the state and businesses, the state and society, and among businesses
themselves. Fostering good-natured agreement between consumers, employees and employers is also
important.
These co-operative efforts depend on the attitudes of state management institutions and initiatives that
describe each party’s specific mission, quality policy, self-awareness of their main product, indicators of its
quality, and the expected consumers. The co-operation of state management and community organisations
along with the guarantee of transparency and publicity of information creates a foundation from which positive
public opinion of the actions of state management organisations can be formed. Their contribution to the
improvement of the quality of life of all memebers of society is then assured.
 VADYBA / MANAGEMENT. 2006 m. Nr. 2(11) 135

Conclusions
Quality is important not only as a measure of how competitive a business is, it also determines the
efficacy of sciences, technologies, state governance and other public sector organisations, the stability of a
nation’s economy, and the quality of life of its citizens. This is why it is necessary to broaden our
understanding of quality. The model of interaction of the sciences, technologies, quality and economics is
showed in the article. Technologies and quality are the integrating and maintaining factors of the engineering,
economics and management systems.
According to the opinion of the authors of this article, TQM is a management theory (philosophy)
putting an exclusive emphasis on quality and a system of practical management tools, which allows an
organization, which chooses to use them, to continuously improve itself by involving its employees into all
processes of quality improvement to fully satisfy the needs of internal and external customers and to provide
value to the employees, shareholders, clients and society.
Authors proposed to create an integrated HACCP, ISO 22000 and ISO 9001 safety and quality
management system. Such system can to assure product safety and improve the overall quality at the company.
Survey of Lithuanian organizations confirmed that new quality system models stimulates companies to study
and implement total quality management.
Quality is important not only as a measure of how competitive a product or business is, it also
determines the efficacy of state governance and other public sector organisations, the stability of a nation’s
economy, and the quality of life its citizens enjoy. This is why it is necessary to broaden our understanding of
quality, so that other aspects (e.g. social) are also covered. The author’s quality integrated model is presented
in the article.

REFERENCES
1. Ruzevicius, J. (2005). Quality management models and its application in the conditions of business internalization: Habilitation
work, Vilnius, Vilnius University.
2. Ruzevicius, J. (2005). Quo vadis qualitologia?, Economics. Research Papers, Vol. 72(2), p. 108-120.
3. Walsh, A., Hughes, H., Maddox, D. P. (2002). Total Quality Management continuous improvement: is the philosophy a reality?,
Journal of European Industrial Training, Vol. 26, No. 6., p. 299-307.
4. Anjard, R. P. (1998), Total Quality Management: Key Concepts, Work Study, Vol. 47, No. 7, p. 238-247.
5. Gunasekaran, A., Goyal, S. K., Martikainen, T., Yli-Olli, P. (1998), Total Quality Management: a new perspective for improving
quality and productivity, International Journal of Quality & Reliability Management, Vol.15, Nr. 8/9, p. 947-968.
6. Ruzevicius, J. (2005), Technical barriers to trade and quality, Business development possibilities in the new European area:
Scientifics proceedings of the international conference, Vilnius University, M.V. Lomonosov State University, Part II, p. 210-215.
7. Export Quality Management (1999), Geneva: International Trade Centre.
8. Getting help from a Technical Cooperation Agency (2004), Geneva: International Trade Centre.
9. Technical Barriers to Trade: TBT Agreement (2003), Geneva: World Trade Organization.
10. Sanitary & Phytosanitary Measures (1998), Geneva: World Trade Organization.
11. Anon, M. (1989), Food and drink manufacture: Good manufacturing practice, London: Institute of food science and technology.
12. Brown, M. (2000), HACCP in the meat industry, Florida: Ross Publishing.
13. Bryan, F. (2002), Teaching HACCP techniques to food processors and regulatory officials, Dairy, Food and Environmental
Sanitation, Vol. 11, No. 10, p. 562-568.
14. Ruzevicius, J. (2005), Quality management subsystems and their impact to the business competitiveness, Economics. Research
papers, Vol. 71, p. 77 – 89.
15. Ruzevicius, J., Adomaitiene, R., Sirvydaite, J. (2004), Motivation and efficiency of quality management systems implementation:
a study of Lithuanian organizations, Total quality management & business excellence, Vol. 15 (2), p. 173-189.
16. Ruzevicius, J., Kasparaitiene, G. (2003), Motivation and Utility of Implementing Environmental Management Systems in
Lithuania, Journal of Environmental Engineering and Landscape Management ,Vol. XI, Supplement 1, p. I a – I h.
17. ISO 22000 (2005), Food safety management systems – Requirements for any organization in the food chain.

View publication stats