Development of quality management system in accordance with ISO 9001-2000 for Ben Thanh tourist - Hanoi

vietnam national university, HANOI
hanoi school of business








Nguyen The Cuong





DEVELOPMENT of QUALITY MANAGEMENT
SYSTEM IN ACcORDANCE WITH ISO 9001:2000
FOR Ben THANH TOURIST – HANOI






master of business administration thesis

Hanoi - 2007
vietnam national university, HANOI
hanoi school of business





Nguyen The Cuong





Development of quality management
system in accordance with iso 9001:2000
for Ben thanh tourist - Hanoi







Major: Business Administration
Code: 60 34 05

Master of business administration thesis





SUPERVISOR: DR.TA NGOC CAU






Hanoi - 2007
TABLE OF CONTENT

ACKNOWLEDGEMENTS
i
ABSTRACT
ii
ABSTRACT (Vietnamese)
iv
TABLE OF TERMS DEFINITION
IX
LIST OF ILLUSTRATIONS
XIV
LIST OF ABBREVIATIONS

XV
INTRODUCTION ………………………………
1
1
The need for study ………………………….
1
2
The statement of the problem ……………
1
3
Aim and Purpose of study ………………….
3
4
Research questions ………………………….
3
5
Scope of work …………………………….
4
6
Assumption ………………………………
4
7
ta sources and Processing ……………………
4
8
Experiment Method ………………………
5
9
Signification ………………………………
6

10
Limitations …………………………………
6
11
Expected results ……………………………
7
12
Short summary ………………………………
7
CHAPTER 1: THEORETICAL FOUNDATION ….
8
1.1.
What is ISO 9001:2000 ……………………
8
1.2.
Why we need to develop ISO 9001:2000 …
8
1.3.
Aim of ISO9001:2000 standard ……………
10
1.4.
The Standards ISO 9001:2000 analysis …
12
1.4.1.
Quality management system requirements
13
1.4.2.
Management responsibility ………………….
13
1.4.3.

Resource management ………………………
13
1.4.4.
Production realization ………………………
14
1.4.5.
Measurement, analysis and improvement ….
14
1.5.
Quality management principles ……………
16
1.6
Process approach …………………………
26
CHAPTER 2: EXPERIMENTAL RESEARCH
29
2.1.
Ben Thanh Tourist Hanoi Introduction
29
2.2.
Methodology ……………………………
31
2.2.1.
Research problem …………………………
31
2.2.2.
Research objectives …………………………
31
2.2.3.
Research method …………………………….

32
2.2.4.
Researcher role …………………………
32
2.2.5.
Data collection procedures ………………
32
2.2.6.
Interview procedure and protocol ……….
33
2.2.7.
Data analysis procedures ……………………
34
2.3.
Research report …………………………….
35
CHAPTER 3:FINDINGS AND
RECOMMENDATIONS …….
58
3.1.
Research findings ……………………….
58
3.1.1.
Quality management ………………………
59
3.1.2.
Management responsibility ………………
60
3.1.3.
Resource Management ………………………

61
3.1.4.
Product realization …………………………
62
3.1.5.
Measurment analyses and improvement …
64
3.2.
Recommendations ………………………….
66
CONCLUSION …………………………………….
72
APPENDIX 1 : the company report of the year 2006

APPENDIX 2. financial report for the year 2006

APPENDIX 3. interview questions

REFERENCES


1

INTRODUCTION
1. The need for study
Ben Thanh Tourist was founded in 1990. It provides all inbound and outbound
tours to travelers. Ben Thanh Tourist starts recognizing the importance of investing in
quality and providing high quality services due to several reasons.
First of all, international tourists have been increasingly visiting Vietnam over past
years; foreign tourists are rousingly interested in Vietnam leading to a larger number of

inbound travelers.
As Vietnam‘s economy is booming, thus standards of living are rising.
Consequently the need to reach higher quality standards of tours is becoming more
demanding. Travelers are increasingly expecting the high standards of service
The competition among tour companies in Hanoi is really strong. In addition,
travelers have a big choice of where to book their travel. Some of them book via travel
companies; others arrange all or part of their travel directly with service suppliers, i.e.
airlines, hotels, car-rental companies. The emergence of on-line booking tools, on-line
booking possibility via airline web pages where lower service charges are offered, also
pose a threat to tour companies. Unless Ben Thanh found solutions how to retain the
biggest inbound market share and meet its needs, big part of business may be lost.
Recently international travel agency have required Ben Thanh Tourist to apply
a quality management system in accordance with ISO 9001: 2000 in order to ensure
consistent high quality of service to their customer.
Therefore the manager board decided to apply ISO 9001:2000 for its tour
operation business
2. The statement of the problem
As a tour operator, Ben thanh tourist offer a number of service of tour packages,
making reservation, booking and other tour arrangement for tourist. The company
2

report reveals that annually growth accounts for 10% in term of sale revenues. The
benefits achieve a round 12%. The number of tourists increases 15%. However some
key staffs decided to move from the company with the reason of low salary.
Consequently, it takes company some time and money to train new staffs. Furthermore,
the customer made complaint with the quality. The reasons for most of complaints are
as follows:
 Staff make error because of ill preparations
 Every does the job in his/ her way hence use varying quality level
 Various company departments do not speak to each other.•

 Staff does not feel responsible for quality.•
 When an error is made it is difficult to determine the cause, and the same errors
tend to repeat.
In order to fulfill requirements or needs of customers and demonstrate the quality of
its services to the outside world. The Ben thanh Tourist decided to apply to implement
ISO 9001:2000.
Problem in implementing a quality management is to:
 Get all employees to know to the standard.
 Evaluate the current quality management system
 Set up documentation systems.
 Analysis nonconformities
 …etc
There are some handbooks showing the way how to implement a quality
management system. Unfortunately, all of them are intended to give advice to others
businesses than Tour Company. Although ISO 9001:2000 is brought into Vietnam for
almost 10 years and thousands of others industries and services enterprises claimed
themselves to be compliant with ISO 9001:2000.
3

In the past, the Ben Thanh Tourist runs its own quality management. It seem be
good so far. But now, customers are more demanding, they expect consistent services
and fully satisfaction by implementing a quality management system.
As the result of that, this study shall demonstrate its quality service based on ISO
9001:2000 requirements.
3. Aims and purpose of study
The overall purpose of the study is to
 Evaluate Ben Thanh Tourist‘s quality management
 Identify the gap between Ben Thanh Tourist tour operations with the standards
requirements
 Work out some recommendation to Ben thanh Tourist quality management.

In other word, the purpose of the study is to evaluate how effective and efficient
Quality management, looking into their current status, and compare its performance
with the standard requirements in order to see how much of the quality process is
assured and managed.
Moreover the study then develop an action plan to implement a Quality
Management System based on ISO 9001:2000 as a tool to boost its performances in
order to improve the quality and efficiency of its travel services based on positive
current system.
The aim of the study also helps set up the steps of applying quality management
system compliance with ISO into tour operation business.
4. Research questions
Many studies show that there is a need for effective quality management system
implementation in tour operation business, but relevant research directly related to this
need is limited. The overall questions guiding this study ask: How compliant the
quality management system at Ban Thanh Tourist is in the view of ISO 9001:2000.
4

The ISO 9000:2000 standard requirements serve as the theoretical lens that
frames this study. This approach creates confidence in implementing quality
management system in accordance with ISO 9001; 2000. Research questions are
relating to:
a) Quality management system
b) Management responsibility
c) Resources management.
d) Product realization
e) Measurment analysis and improvement
5. Scope of work
The study focused on only the tour operation of package tour so the results of this
study might not be applied to other business.
The study only focused on quality management system in Ben Thanh Tourist

Branch Hanoi so the findings of the study may not be related to for other management
such as finacial, human resources management, and straegy management.
6. Assumption
There was a commitment of the management board to applying ISO 9001:2000.
The quality policy is in the line with the company policy. Ben Thanh Tourist
management prepare determine and provide enough resources for implement quality
management system.
7. Data Sources and Processing
Following the data collection and processing is explained. In this study, primary
data was collected. Methods used to collect primary data are interview, review
document and reports, and observation. An in-depth interview is characterized by its
length, depth and structure. Therefore, it suited to the study which demands to seek a
better insight into Ben thanh Tourist operations to identify gaps between the standard
ISO 9000:2000 requirements with its performances.
5

The formulation of the interview question plays a vital role in the structure of
the study and in ensuring a successful result. These interview questions are based on
the recommendations or requirements of ISO 9001-2000. In other word, all the ISO‘s
requirements are transformed into the form of question. PRAXIOM RESEARCH
GROUP LIMITED has provided approach of interviewing referred as gap analysis:
Each interview question has two possible answers: Yes, No. A Yes answer means that
the organization has already met one of ISO's requirements, a No answer points to a
question. No answers reveal gaps that exist between the ISO 9001 2000 Standard and
the organization's processes. Whenever the answer No to a question, there are at least
one of the organization's processes fails to meet an ISO 9001 2000 requirement. A No
answer tells the organization that a process needs further development. It tells that a
process needs to be modified, improved, or created.
Therefore, whenever there is answer No to a question, that processes must be
considered, and decided which ones need to be changed. The interview questions are

found at the appendix 3.
As the information to be provided had to be complex, it was important to
Choose the right interviewees who would be experts in business. It was decided to
contact the manager of Ben Thanh Tourist Hanoi Branch due to the fact that he has
been a senior managers of Ben Thanh Tourist Hanoi Branch since its established in
1990 and were contacted agreed to be interviewed and provided a wealth of
information as well as brought to light different perspectives. Consequently, the senior
manager‘s answers reflects the true current status of the Ben thanh Tourist
8. Experiment Methods
Case Study approach is applied in this study. With reference to primary data,
case study approach was chosen due to several reasons. First of all, a descriptive case
study is the best method of providing the rich and complex details of the issue. Yin
(1994) defines a case study as ―an empirical inquiry that investigates a contemporary
6

phenomenon within its real-life context, especially when the boundaries between
phenomenon and context are not clearly evident‖ (p.13). I chose case study research in
order to gather information of a greater depth than would be possible using another
methodology such as survey data.
Because case study researcher relies on multiple sources of data, I conducted
structured interviews asking a set of yes-no questions. With Yes/ no questions one can
only be answered with ―yes‖ no‖. This form of question is important for confirmation,
in order to make sure that certain action has been correctly carried out
All interviews were direct and deep. Numerous documents related to its
performance were also reviewed for this study. Documents included, but were not
limited to, policy manuals, records of operation, web site information, and memos.
Finally this allowed to documentation a chain of evidence throughout the study.
Memo writing in the journal helped me to reflect on my thoughts and ideas as I went
through the research process. Another benefit of maintaining a researcher‘s journal was
to document any changes necessary in the study.

9. Significance
Designed to provide systematic inquiry into the quality management system
compliant with ISO 9001:2000 in a tour company, this study contributes substantive
information about how to build a quality management system in a tour company.
Results of this study could have implications for tour operators, travel agents…. In
response to the growing numbers of tour operators today and the limited amount of
research in the business , it is expected that this research will make a contribution to the
knowledge base of current practices in supporting tour company to apply quality
management.
10. Limitations
There are several limitations of this study that must be noted. It was conducted
in a branch in Hanoi. While this setting may limit the applicability of this study to Ben
7

Thanh Tourist Branch Hanoi, it can also encourage others to conduct studies that add to
my findings. In addition, with two-way textual communication of interview it was
more complicated to gain detailed information. Therefore, some of the relevant
information was difficult to interpret and transcribe.
Finally, it should be pointed out that the validity of the gathered information is
limited to the time of the current research. Therefore, it should be taken into account
that there may be ongoing changes resulting in information updates.
11. Expected Results
The expected results are intended to give some ideas on: what operations that
Ben Thanh has complied with the standard and been documented, what operations that
Ben Thanh has complied with the standard and not been documented, what operation
that Ben Thanh has not complied with the standard and not been documented. Base on
this finding, an action plan will be developed to implement ISO in Ben thanh Tourist
Hanoi.
12. Short summary
This study provides a detailed look Ben Thanh Tourist‗s current status, and

compare its performance with the standard requirements in order to see how much of
the quality process is assured and managed and then develop a plan to implement a
Quality Management System based on ISO 9001:2000 as a tool to boost its
performances in order to improve the quality and efficiency of its travel services.
Introduction part begins with purpose of the study, research questions, data sources and
process, methodology, limitations of the study, significance of the study, and short
introduction. Chapter One contains theoretical foundation –the framework for this
study. Chapter Two contains Empirical research identifying the procedures for
collecting and analyzing the data. Findings are presented in Chapter Three, and
implications for practice included in Conclusion.

8

CHAPTER 1
THEORETICAL FOUNDATION
In order to achieve research aim and objectives, the standard ISO 9000 family,
particular 9001:2000 will be used to analyze in order to understand: What are the
individual recommendations or requirements of the standard? What action must be
taken in order to follow the recommendations or to fulfill the requirements? In this
chapter, each clause of the standard will be presented in detail
1.1 What is ISO 9000 family
ISO 9000 family form a coherent set of quality management system standards
facilitating mutual understanding within national and international trade. The ISO 9000
family has been in existence for over 20 years and is applied all over the world.
The origin of the standards and their first application was to be found with
industrial companies where generally products were manufactured in accordance with
customer specifications. With increase use of the standards and the certification based
on them, application within various sectors of industry and commerce increased- both
in industrial companies and service providers. The ISO 9000 standards have been
revised 2 times : 1994 version & 2000 version, each version have updated new

achievement in Quality Management
Quality management systems in accordance with the ISO 9000 family have
become extremely widespread over the last few years. It can be assumed that a great
many companies have built up quality management systems in accordance with this
family of standards.
1.2 Why we need to apply ISO 900
The reason for this is that for several years now important companies have set
requirements for their suppliers with regard to creation and form of quality
management system. As a result, whole sector, for example the automotive industry to
9

service, have laid down requirements as regards the quality management system of
their supplier [DGQ].
Many suppliers with customers in different sectors of economy had to adapt
their company management system to different requirements with a considerable
expenditure of time and effort. National standards offered suppliers the possibility of
orientating themselves toward standards requirements at least within one country
[DGQ]
As the global economy progressed, it becomes necessary to set uniform
requirements as regards quality system which would be accepted worldwide.
With the ISO 9000 family, for first time company management system have been
described in standards. At beginning, many were doubtful, as company management
systems must be suited to the specific characteristics of individual companies and for
this reason cannot be standardized. The standards organizations recognized this
problem and limited themselves to standardizing the requirements as regards company
and quality management system, but not their actual concrete form.
This means that every company retains the opportunity of creating its quality
management system in an individual way which is suited to its own individual
requirements. The ISO 9000 family of standards lay down what should be regulated
within the framework of a quality management system, but do not specify how this has

to happen.

10


Figure1.1: Concept relating to quality [source: ISO 9001:2000]

1.3 Aim of ISO 9000 family of standards
Industrial, commercial supply products, service with the intention of fulfilling
requirements or needs of customers. Increasing competition with regards to quality has
led continuous rise customer expectations. In order to be competitive and to maintain
good economic performance, companies have to make use of more and more effective
and efficient system.
11

The ISO 9000 family of standards has been developed to assist organizations, of
all types and sizes, to implement and operate effective quality management systems
[ISO 9000:2000].
— ISO 9000 describes fundamentals of quality management systems and specifies the
terminology for quality management systems.
— ISO 9001 specifies requirements for a quality management system where an
organization needs to demonstrate its ability to provide products that fulfill customer
and applicable regulatory requirements and aims to enhance customer satisfaction.
— ISO 9004 provides guidelines that consider both the effectiveness and efficiency of
the quality management system. The aim of this standard is improvement of the
performance of the organization and satisfaction of customers and other interested
parties.
— ISO 19011 provides guidance on auditing quality and environmental management
systems.
12

Together they form a coherent set of quality management standards facilitating
mutual understanding within national and international trade.


Figure 1.2: Concept relating to organization [sources ISO 9000:2000]
1.4 The Standards ISO 9001:2000 analysis
ISO 9001:2000 is the latest version of a quality management standard which has
been in existence for many years and which has been applied by more than 300,000
organizations world-wide. It specifies minimum requirements for a quality
management system where an organization needs to:
• Demonstrate its ability to provide consistently a product that meets customer
and applicable regulatory requirements and to:
• Address/enhance customer satisfaction through the effective application of the
system, developing processes for continual improvement and the prevention of
errors and mistakes.
13

The ISO 9001: 2000 contains five requirements sections, each dealing with one
of the fundamental building blocks required by any process. These are:
1.4.1 Quality management system:
This section details the general requirement for QUALITY MANAGEMENT
SYSTEM and documentation requirements that are the foundation of the management
system. The general requirements ask the organizations to look at the processes of the
management system, how they interact with each other, and what resources are needed
to run the processes; and how the processes will be measured and monitored and action
plan will be implemented. The second part of the section then sets out the requirements
for the documentation needed to operate the system effectively, including quality
manuals, procedures, records and how the documentation should be controlled.
1.4.2 Management responsibility:

The management of the systems is the responsibility of the "top management" at
a strategic level in the organization. The "top management" must know it‘s
commitment to develop QUALITY MANAGEMENT SYSTEM , make the staffs
awareness of customers' requirements at a strategic level and make a commitment to
meeting these as well as statutory and regulatory requirements. Set up quality policy,
objectives, "Top management" must set policies; and to achieve these policies set
objectives through planning how the objectives will be met. "Top management" should
also ensure that there are clear internal communications and that the management
system is regularly reviewed.
1.4.3 Resource management:
This covers the people and physical resources needed to carry out the process.
People should be competent to carry out their tasks and the physical resources and
work environment need to be capable of ensuring that the customers' requirements are
met.

14

1.4.4 Product/Service realization:
These are the processes necessary to produce the product or to provide the
service. Determine the quality & objectives for the products, requirements of customers
; monitor ,validate the product, communicate with customers . This is the act of
converting the input of the process to the output. For a service organization, this may
be the process of take tourists on tour throughout the country.
1.4.5 Measurement, analysis and improvement:
These are the measurements to enable the systems to be monitored to provide
information on how the systems are performing with respect to the customer, the
management systems themselves through internal audits, the processes and the product.
Analyzing these, including any defect or shortfall in performance, will provide
valuable information for use in improving the systems and products where this is
required.

Each of these five fundamental building blocks is required for any process
because, if one is missing, a controlled process does not occur. This is recognized in
the new standard and represents a shift to viewing the quality system as a series of
processes.
In order to carry out a "process analysis" the inputs will be started, then
followed by the process through its various stages to examine how it is controlled and
verify that the output meet what is required.
Such a process may be, for example, the actions required by the organization on
receipt of a customer order, and the steps taken to convert that order into something
that will allow a reservation to be provided. The input here would be the customer
order, and the output, the organization‘s internal documents, resources and services
that allow the provision of the service.
15

Thus the process will need be looked, the inputs be determined, examined how
it is controlled, and look at the outputs. The way the process is controlled may require
an examination of mechanisms other than documented procedures.
Such control mechanisms could be by, for example, control charts, process flow
diagrams or by training of operatives to ensure they are competent. Whatever the
means by which the organization decides to control the process, evidence will be
sought that the control mechanism is indeed effective. The ultimate test of
effectiveness is an examination of whether the end result of the process is in
accordance with the inputs.
Thus, during research of the process, process output would be determined if it
met the requirements of the organization and the process for obtaining them was
operating under the controlled conditions that the organization had defined.
Research of processes should result in a logical research of the activities in
carrying out the various functions required to supply customers with a product or
service which meets their needs.
1.4.6 Exclusion of requirement

In order that each organization may have the opportunity of demonstrating the
conformity of its quality management system with ISO 9001:2000, exception are
permitted in clause7. According to ISO 9001:2000, clause 1.2 only those requirement
may be excluded ―where exclusions are limited to requirements within clause7, and
such exclusions do not affect the organization‘s ability, or responsibility to provide
product that meets customer and applicable regulatory requirements‖[ISO]
Such exclusion may find their justification in:
 The character of the organization
 The character of the product
16

If more exceptions are made than are permitted, conformity with ISO 9001:2000
may not be claimed. This includes situations where the fulfillment of regulatory
requirements allows exceptions, which go beyond the exceptions permitted by ISO
9001:2000.
1.5 Quality management principles
1.5.1 Introduction
The ISO 9000 Family of standards will be based on these Quality Management
Principles. With growing global competition, quality management is becoming
increasingly important to the leadership and management of all organizations.
The Quality Management Principles apply universally to all user groups. This
document focuses on the needs of executive managers. The Quality Management
Principles may be incorporated into new or existing documents to satisfy the needs of
other user groups.
By applying the following eight Quality Management Principles, organizations will
produce benefits for customers, owners, people, suppliers, local communities and
society at large.
17

Figure 1.3: Concept relating to quality management [sources ISO 9000:2000]

18

1.5.2 Quality Management Principles
A quality management principle is a comprehensive and fundamental rule or
belief, for leading and operating an organization, aimed at continually improving
performance over the long term by focusing on customers while addressing the needs
of all other stakeholders.
1.5.2.1 Principle 1 - Customer-Focused Organization
"Organizations depend on their customers and therefore should understand
current and future customer needs, meet customer requirements and strive to exceed
customer expectations".[ISO 9001:2000]
Applying the principle of customer-focused organization leads to the following actions:
 Understanding the whole range of customer needs and expectations for
products, delivery, price, dependability, etc.
 Ensuring a balanced approach among customers and other stakeholders
(owners, people, suppliers, local communities and society at large) needs
and expectations.
 Communicating these needs and expectations throughout the
organization measuring customer satisfaction and acting on results, and
managing customer relationships.
Beneficial applications of this principle include:
• For policy and strategy formulation, making customer needs and the needs
of other stakeholders understood throughout the organization;
• For goal and target setting, ensuring that relevant goals and targets are
directly linked to customer needs and expectations;
• For operational management, improving the performance of the
organization to meet customer needs;

• For human resources management, ensuring the people has the knowledge
and skills required to satisfy the organization‘s customers.
19

1.5.2.2Principle 2 - Leadership
"Leaders establish unity of purpose and direction of the organization. They should
create and maintain the internal environment in which people can become fully
involved in achieving the organization‘s objectives."[ISO 9001:2000]
Applying the principle of leadership leads to the following actions:
• being proactive and leading by example,
• Understanding and responding to changes in the external environment,
• considering the needs of all stakeholders including customers, owners,
people, suppliers, local communities and society at large,
• establishing a clear vision of the organization‘s future,
• establishing shared values and ethical role models at all levels of the
organization,
• building trust and eliminating fear,
• providing people with the required resources and freedom to act with
responsibility and accountability,
• Inspiring, encouraging and recognizing people's contributions,
• promoting open and honest communication,
• Educating, training and coaching people,
• setting challenging goals and targets, and
• implementing strategy to achieve these goals and targets.
Beneficial applications of this principle include:
• For policy and strategy formulation, establishing and communicating a
clear vision of the organization‘s future;
• For goal and target setting, translating the vision of the organization into
measurable goals and targets;
• For operational management, empowered and involved people achieve the

organization‘s objectives;
20

• For human resource management, having an empowered, motivated, well
informed and stable workforce.
1.5.2.3 Principle 3 - Involvement of People
"People at all levels are the essence of an organization and their full
involvement enables their abilities to be used for the organization‘s benefit".[ISO
9001:2000]. Applying the principle of involvement of people leads to the following
actions by the people:
• accepting ownership and responsibility to solve problems,
• Actively seeking opportunities to make improvements,
• Actively seeking opportunities to enhance their competencies,
knowledge and experience,
• Freely sharing knowledge and experience in teams and groups,
• focusing on the creation of value for customers,
• being innovative and creative in furthering the organizations objectives,
• Better representing the organization to customers, local communities
and society at large,
• deriving satisfaction from their work, and
• be enthusiastic and proud to be part of the organization.
Beneficial applications of this principle include:
• For policy and strategy formulation, people effectively contributing to
improvement of the policy and strategies of the organization;
• For goal and target setting, people sharing ownership of the
organization‘s goals;
• For operational management, people being involved in appropriate
decisions and process improvements;
21

• For human resource management, people being more satisfied with
their jobs and being actively involved in their personal growth and
development, for the organization‘s benefit.
1.5.2.4 Principle 4 - Process Approach
"A desired result is achieved more efficiently when related resources and
activities are managed as a process."[ISO 9001:2000]
Applying the principle of process approach leads to the following actions:
• defining the process to achieve the desired result,
• identifying and measuring the inputs and outputs of the process,
• identifying the interfaces of the process with the functions of the
organization,
• evaluating possible risks, consequences and impacts of processes on
customers, suppliers and other stakeholders of the process,
• establishing clear responsibility, authority, and accountability for
managing the process,
• identifying the internal and external customers, suppliers and other
stakeholders of the process, and
• when designing processes, consideration is given to process steps,
activities, flows, control measures, training needs, equipment, methods,
information, materials and other resources to achieve the desired result.
Beneficial applications of this principle include:
• for policy and strategy formulation, utilizing defined processes
throughout the organization will lead to more predictable results, better
use of resources, shorter, cycle times and lower costs;
• For goal and target setting, understanding the capability of processes
enables the creation of challenging goals and targets;