Theory of Quality Management LO30251

From: Alan Cotterell (
Date: 06/11/03

I note on the Standards Australia International web site ( ), Dr Kevin Foley's review of a PhD thesis presented
to Melbourne Uni. It is suggested that Quality Management 'doesn't have a

I suggest the following is the 'Theory of Quality Management':

In any business there are four areas of Operational Risk:

Quality - the risk of supplying goods or services that are not 'fit for
purpose' i.e. don't fulfil customer requirements.

Safety - the risk of supplying unsafe product or services or injuring
workers during their manufacture or supply.

Environment - the risk of supplying environmentally unfriendly product or
services or damaging the environment during their manufacture.

Security - the risk of supplying an insecure product or service or being
subject to criminal activity during its supply.

Risk is defined in Australian Standard AS 4360 - Risk Management, in terms
of 'what could happen, how likely it is to happen and what are the
potential consequences of an incident'. Risk Management is the activity
of identifying, evaluating (rating) and controlling risk.

Normal risk control in all areas is subject to a hierachy of controls e.g.
Engineering Control
Administrative Control
Personal Protective Equipment or Personal Intervention

Quality Management Systems are a form of administrative control which
involve implementation and maintenance of mission , vision and values
statemnents, policy and procedure.

Administrative controls have been typically avoided as they require people
'to do the right thing', thus the concept of behavioural safety must be
used in conjunction with them. In the quality area the concept of Total
Quality Management (TQM) is introduced.

The term 'safe' may be defined as 'a situation or condition where risk has
been minimised to a level tolerable to all stakeholders'.

A major objective of the total integrated Management System, and all of
its components, is to achieve 'safety' through administrative control of
risk, and preventing loss. Another is empowerment of employees through
provision of sufficient guidance material, to allow them to self-manage.

Best Regards,
Alan Cotterell
Acotrel Risk Management Pty Ltd


Alan Cotterell <>

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