The application of lean thinking to improve the effectiveness of quality management systems

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1 Scientific Journals Maritime University of Szczecin Zeszyty Naukowe Akademia Morska w Szczecinie 2011, 27(99) z. 2 pp , 27(99) z. 2 s The application of lean thinking to improve the effectiveness of quality management systems Wykorzystanie filozofii lean do poprawy skuteczności systemów zarządzania jakością Jerzy M. Ścierski Silesian Technical University, Faculty of Organization and Management Institute of Production Engineering Politechnika Śląska, Wydział Organizacji i Zarządzania, Instytut Inżynierii Produkcji Zabrze, ul. Roosevelta 26, jerzy.scierski@polsl.pl Key words: quality management, improvement, lean engineering, QMS documentation Abstract Quality management systems established according to the requirements of the ISO series 9000 standard have a tradition of more than twenty years. For many companies the possession of a certificate has become a prestigious issue or a market requirement this applies in particular to enterprises co-operating with the automotive industry. Irrespective of systems based on ISO 9001 requirements, many companies establish systems modelled on the production system of Toyota. There has been conducted an analysis of causes due to which lean engineering and QMS (Quality Management Systems) established according to the ISO 9001 standard are not integrated and most frequently are treated as two independent systems. This article was based on the information and observations from third party audits conducted in 148 companies having different business profiles and well-established quality management systems. Słowa kluczowe: zarządzanie jakością, doskonalenie, lean engineering, dokumentowanie SZJ Abstrakt Systemy zarządzania jakością ustanawiane zgodnie z wymaganiami norm ISO serii 9000 mają już ponad dwudziestoletnią tradycję. Posiadanie certyfikatu stało się dla wielu firm sprawą prestiżową lub wymogiem rynku szczególnie dotyczy to przedsiębiorstw współpracujących z przemysłem motoryzacyjnym. Opinie na temat skuteczności SZJ są podzielone. Wiele przedsiębiorstw niezależnie od systemów opartych o wymagania normy ISO 9001 ustanawia systemy wzorowane na systemie produkcyjnym Toyoty. Dokonano analizy przyczyn, które powodują, że lean engineering i SZJ ustanowione zgodnie z normą ISO 9001 nie są integrowane i najczęściej w przedsiębiorstwach są traktowane jako dwa niezależne systemy. W artykule wykorzystano informacje i spostrzeżenia z auditów trzeciej strony przeprowadzonych w 148 firmach o zróżnicowanym profilu działalności oraz posiadających ugruntowane SZJ. Introduction Quality management systems (QMS) compliant with the requirements of ISO series 9000 have a long tradition in Poland, dating back to the early 1990s. In the initial period, these systems were implemented by big organisations, usually industrial enterprises which had sufficient financial resources and staff prepared for the implementation of systems based on the above mentioned standard requirements. The interest in QMS is related to the transformation that took place in Poland in the last decade of the 20 th century. A quality management system was viewed as a tool improving the competitiveness of an enterprise on the world market. When Poland was included in the structures of the European Union, the aim of the support geared towards small and medium-sized companies was to eliminate trade barriers and enable them to manufacture products on the same technical level 86 Scientific Journals 27(99) z. 2

2 The application of lean thinking to improve the effectiveness of quality management systems as those offered by competitors from the EU [1]. Investigations conducted in enterprises which had benefited from the subsidies for the implementation of QMS indicate that the most frequently quoted expectations from the system included the improvement of one s position on the market and reduction of operating costs [1]. The first decade of the 21 st century saw a considerable increase in the number of certified quality systems. Information on the number of granted certificates is published by the ISO Survey of Certification Geneva. According to this data, by the beginning of the year 2010, there had been issued certificates confirming the compliance of the implemented quality management systems with the requirements contained in ISO 90001:2008 Quality Management Systems. Requirements. The published data concerns 178 countries. The biggest growth in the number of issued certificates was noted for China. In Poland, certificates were issued until the end of In the year 2009, a nearly 16% increase was observed compared to the year 2008 [2]. Companies are more and more frequently interested in the use of production management systems based on lean engineering. This system, implemented by Toyota since the 1940s, achieved its success in the eighties of the 20 th century. Quality Management Systems based on ISO series 9000 versus lean engineering The assumption of lean engineering is the involvement of the company s management in a process of continuous investment in the staff and the culture of continuous improvement. This philosophy is supported by tools which allow fast resetting of machines, standardization of work, pull production system and error control. Lean engineering is defined as a five-stage process including the specification of customer value, identification of value stream, the ensuring of its flow, customer pull and aim for perfection [3]. The ISO 9001 standard [4] is based on similar principles. It assumes, that Quality Management Systems take into consideration the customer focus, leadership, people s commitment, a system approach, a process approach, continuous improvement, a fact-based decision making process and mutual beneficial relations with suppliers. It may be therefore assumed that both lean engineering and QMS compliant with the requirements of ISO 9001 have many common areas. The relations between QMS and lean engineering assumptions have been shown in figure 1. ISO 9001 is addressed to enterprises which want to show their capability of delivering a product that meets customer s requirements, as well as legal requirements of relevant regulations, and which strive to increase customer satisfaction by an effective application of the system [5]. Although the ISO 9001 standard refers only to the system effectiveness understood as a degree in which the aims are fulfilled, the goal of every organization is to generate profit. This aim is achieved by improving the effectiveness understood as a relation between the achieved results and resources used. ISO 9004:2000 Quality Management Systems. Improvement Directives (9004:2000 was amended in 2009, in the current version it is entitled Management aimed at achieving the organisation s lasting success Approach through quality management) in 86 paragraphs lists efficacy and effectiveness at the same time [6]. The author s investigations indicate that in 97% of system documentations subjected to analysis this standard was not used in the process of the quality system building, maintaining and improving. A question therefore might be asked why quality systems based on ISO 9001 requirements in the general opinion of both the managing staff and employees are treated as not very effective and bureaucratized? [4, 7, 8]. In works [9, 10] it has been shown that this situation is in great measure caused by consultants who support the process of quality systems implementation in enterprises as well as insufficient employees training within the scope of problem diagnostic tools and process improvement. Extensive research conducted in the years indicates, that using an external advisory company does not always guarantee the implementation of an effective quality management system suited to the processes and products offered by this enterprise [10]. A common practice involves proposing to prepare system documentation, which is typical of advisory companies offering to implement the system at low cost over a short period of time. Most probably these companies propose unified documentation, which is written in a general way and fulfils minimum requirements of the standard. Frequently the system documentation contains fragments of general requirements specified in standards, while ignoring documentation necessary on an operational level standards, technological process sheets or workstation instructions. The main reason for that is the lack of understanding for the process approach and the fact that a quality system is documented on the basis of the table of contents of a standard instead of the processes which are defined as significant for Zeszyty Naukowe 27(99) z. 2 87

3 Jerzy M. Ścierski Responsibility and authority Human resources ISO 9000: a Customer focus - 0.2b Leadership - 0.2c Involvement of people - 0.2h Mutually beneficial supplier relationships - 01 General - 02 Process aproach General requirements Documentation requirements Management representative Management review Infrastructure Planning of product realization Purchasing process Production and service provision Control of monitoring and measuring equpment - 8 Measurement, analysis and improvement ISO 9000: a Customer focus - 0.2b Leadership - 02c Involvement of people - 02h Mutually beneficial supplier relationships - 02 Process approach Management commitment Management representative Reveiev autput Continual improvement ISO 9000: f Continual improvement - 02g Make decision on the basis of facts Continual improvement Quality management Quality improvement Continual improvement Customer focus Planning Management review Problems resolving (Continual improvement) People and partners (Respect, challenges, education Process (Eliminateing of waste) General conception (strategic thinking) Continuously teach, through Kajzen To involve personal, to understand situation thorough Make decision on the basis of consensus and carefully consider all opportunities Implement decision fast To educate leader To respect people and take care of their progress To respect partners and challenge them To create continuous and smooth process of problems identification To use pull system to eliminate overproduction To even out load of the work To brake work when problems appeared To standardize tasks t o asure continuous improvement To introduce visual control to disclose problems To introduce through technology Fig. 1. Connection of the QMS based on standard with assumptions of lean engineering [8] Rys. 1. Powiązania SZJ opartego na wymaganiach normy ISO 9001, wersja 2008 z założeniami lean engineering [8] To develop strategy on farreaching conceptions - even at the cost of short term financial results Table 1. Breakdown of processes determined in the QM of the firm employing 2 persons [source: QM of XYZ Company] Tabela 1. Zestawienie procesów określonych w Księdze Jakości Firmy zatrudniającej dwie osoby [źródło: Księga Jakości Firmy XYZ udostępniona przez właściciela] Process Process owner QM chapter A1. Planning Manager 5.4 A2. Resorce management Manager 6, 6.1 A2.1 Human resources Manager 6.2 A2.2 Infrastructure Manager 6.3 A2.3 Work environment Manager 6.4 A3. Analysis of data Manager 8.4 A4. Control of nonconformity and corrective and preventive action Management representative 8.3, 8.5 B1. Marketing Manager 7.2 B2. Review and managing of proposals and contracts Manager 7.2 B3. Design of courses and trainings Manager 7.3 B4. Realization of courses and trainings Manager 7.1, 7.5 C1. Purchasing Manager 7.4 C2. Monitoring and measurement Management representative 8.2 C2.1 Internal audit Management representative C2.2 Monitoring and measurement of products and services Maganement representative 8.2.3, C2.3 Monitoring of client s satisfaction Maganement representative C3. Control of documents and records Maganement representative 4.2 C4. Communications Maganement representative Scientific Journals 27(99) z. 2

4 The application of lean thinking to improve the effectiveness of quality management systems a particular enterprise. Table 1 shows an example of QMS documentation, that is not suited to the products and scope of the company s activity. In this company the function of QMS Representative is performed by the Director (owner). The processes quoted in table 1 have been defined in co-operation with an advisory company consultant in a school offering language and vocational courses. Except the owner, the company employed one person working full time and language or profession teachers working according to orders received. It should be stressed that the owner kept documentation of his management system by means of an Excel sheet, which met nearly all requirements contained in the ISO 9001 standard. The situation in which the QMS documentation does not correspond to the needs of an enterprise may result from the employer s lack of awareness regarding the idea of QMS, or from the fact that for many companies which implement a quality management system the only aim is to obtain a certificate. The end in itself is to obtain and maintain the certificate, and not to use it as an improvement tool. Many requirements of the standard may cause difficulties related to the creation of system documentation. Most frequently this results from the lack of specialist knowledge on the part of consultants who support an enterprise in the process of quality system implementation. The ISO 9001 standard contains a number of open requirements, which demand knowledge within the scope of technologies applied. This problem has been raised in the work [8]. Lean engineering contains elements, that may be included in the culture of an organization. Great emphasis is placed on the work of a team leader and daily meetings of experts, aiming at continuous improvement, visualization and leadership. The requirements contained in ISO 9001 are focused on what rather than how something should be done. The analysis of quality system documentation conducted by the author indicates that basic tools for process improvement and data analysis support were used merely in 12% of the examined cases. Most frequently these were enterprises working for the automotive industry. This may result from the fact that ISO 9001 requirements do not force a reduction of costs by eliminating the activities, that do not bring an added value. Such requirements will be most probably taken into consideration in the great amendment of ISO 9001, planned for the year This amendment is going to emphasise the relationship between the fulfilment of customer s expectations and the management of an organization s financial resources. Attention should be paid to the consideration of risk related to a particular business. Also in this respect, the ISO 9001 standard contains paragraphs referring to the consideration of risk in management the paragraphs of the standard which regard quality planning, management review, product processing planning, designing or corrective and preventive measures. Proposals concerning the amendment take into consideration the adoption of thinking in terms of risk in relation to: delivery of products which fulfil customer s requirements as well as legal and other requirements; strengthening of the process approach, the aim of which is to protect an organization against risk related to process capability reduction; improvement of the management system effectiveness with regard to the fulfilment of goals and the analysis of internal and external factors that influence management efficacy and effectiveness [9]. Quality management systems have in-built tools for the maintenance of improvement, which are missing in the lean philosophy. Such tools include the supervision of documents, including records defined by an organization as necessary to effectively plan the supervision of processes, as well as the system of internal control in a form of internal audits, management reviews and verification of undertaken activities efficacy. They constitute the requirements of QMS compliant with the ISO 9001 standard. The drawback of the lean philosophy is the lack of the obligation to document and supervise the records except for the documentation and supervision of work standards and kanban. These are the only requirements regarding the supervision of documents. Contrary to QMS requirements, in the lean philosophy trainings are not planned. They are organized according to needs that result from current problems. Internal audits, characteristic of QMS, could point to major weak points in a lean system and losses which initiate Kaizen. Also RCA requirements, obligatory in QMS, are missing in the lean system. It may be therefore concluded that lean engineering and ISO 9001 requirements complement each other. In enterprises, which have implemented a production based on lean engineering, quality management systems are most often treated as absorbing ones, whereas lean is perceived as a novelty, which can be easily sold to the employees. Such an approach results in the functioning of two separate systems, QMS being usually maintained by the Zeszyty Naukowe 27(99) z. 2 89

5 Jerzy M. Ścierski representative and resuscitated before subsequent control and recertification audits. Why QMS is not integrated with the lean engineering philosophy The functioning of QMS and lean as two separate systems results from the fact that documentation is not tailored to the needs and course of processes in an enterprise. The integration of QMS with the lean engineering philosophy should begin by setting QMS documentation in order. As indicated by the author s investigations into the quality of advisory services used by most companies that implement quality systems, this documentation is excessively elaborate within the non-production scope [10]. It lacks the description of processes and procedure standards. Below, have been listed the most frequent reasons why users treat the QMS documentation as troublesome and not very useful: errors in the process description, resulting from the use of obsolete procedures and instructions, which were prepared many years ago and describe procedures that no longer exist this is most frequently due to changes in the technology, infrastructure, requirements; the procedures may contain a requirement of providing paper copies or records and storing them in files, although an IT system of data collection and analysis has been implemented; the QMS documentation is full of temporary solutions included in the procedures, e.g. as a result of inconsistencies found during a third party audit; repetition of the same information in many documents; this usually results from the fact that procedures were created by many authors; the belief of QMS procedures authors that placing the same information in different documents favours the effective supervision of processes; the same requirements and specifications have been accidentally inserted in different documents; they may be contained in drawings, inspection plans, check lists, check sheets, orders; the same written requirements may be recorded in different forms; some people prefer text procedures, while the other block diagrams, instructions or databases; many procedures are not written in the process approach; they do not take flow into consideration; if procedures are not written in the flow convention, they contain repetitions many authors do not take into account what the employees do and simply copy the requirements of the standard such procedures resemble a standard rather than work instruction, thus becoming incomprehensible for employees; continuous improvement of QMS efficacy, which is frequently accomplished through an extension of system documentation by adding new sentences, paragraphs or new work instructions in the existing documents; there is an opinion that corrective measures must be accompanied by additional documents; the recommended form of QMS documentation are directives contained in ISO/TR Directives for quality management system documentation. The proposed format of procedures encourages the introduction of repetitions or procedures which do not provide an added value; before being approved for use, the documentation is not reviewed as a whole, but only as a single document; documents which are not used in practice are not removed from the QMS documentation, according to the just in case way of thinking; although the great amendment of the ISO 9001 standard took place 11 years ago, many organisations continue to apply numerous procedures which were required by the provisions of ISO as of 1994 there is a belief that each element of this standard is a process such an approach causes many repetitions in QMS documentation; some authors treat QMS documentation as a tool forcing the management to take actions that are difficult to enforce it is seldom related to an added value, which should be present in the process; overly extensive documentation also results from the concern that a third party auditor may regard the lack of a document as inconsistency; some third party auditors require extensive QMS documentation [6, 12]. Quality procedures which describe procedure standards should be simple and practical in use so that they can be applied in daily workshop practice. Therefore, the effective functioning of management systems based on both the ISO series 9000 standard and the lean engineering philosophy depend on the rational construction of system documentation. The first step towards the integration of the systems should be setting the system documentation in order. The use of a tool applied in lean engineering 5S seems to be effective. As regards QMS documentation, particular stages include the identification of documentation which is not used 90 Scientific Journals 27(99) z. 2

6 The application of lean thinking to improve the effectiveness of quality management systems or which is present in unjustified amounts at a workstation (sort). Sorting should begin with a review of the quality book and procedures, followed by the same procedures with lower rank documents instructions, plans, specifications. In the second stage (storing) the contents of procedures/instructions should be standardized. This stage should include the removal of chapters which: are not read by the users; are contained in other quality system documents; are merely information which does not specify the procedures; are a repetition of information contained in another place of the document (e.g. block diagrams) or system (other procedures / instructions); provide a list of information, without referring to its role in the process, appearing in most procedures Scope of procedure, Responsibility, Related documents, Terminology and Abbreviations. Procedures that do not provide an added value in QMS include procedures which: have not been reviewed for a long time (it is necessary to specify what that means); have not been used to train the staff; are information procedures and do not specify tasks to be performed; are the remains of QMS documented according to the requirements of the standard as of 1994 (they usually have the following titles: Management Responsibility, Quality System, Control and Tests Status, Statistical Techniques). A useful tool which is seldom applied when sorting the documentation is provided by internal audits. During an audit the auditors should pay attention to the repetition of requirements within one document and in other documents. In the third stage of setting the documents in order (shine) it is important to make sure that: the documentation is easily accessible; each document refers to at least one other document; whenever workshop orders, workshop guidebooks, control plans and circulation sheets are used in manufacturing conditions, these documents should be combined with work instructions and a simple and logical system of their numbering should be applied; the titles of documents facilitate finding the necessary information. QMS documentation standardization should first of all refer to the format of documents, the location of relevant information in the same places, the form of operating instructions and the uniform collection of documents. At this stage, it is necessary to specify what contents are included in the procedure. The fifth stage of system documentation preparation (sustain) regards the maintenance of documentation. A big role in the maintenance of the obtained state should be played by internal audits. However, this requires the preparation of auditors so that in the process of viewing the QMS documentation they can discern the areas which do not bring an added value. Conclusions Beside lean engineering systems implemented in production organisations, managing staffs often take a decision to implement QMS based on the requirements of the ISO series 9000 standard. In nearly all the cases, the two systems, though focused on continuous improvement, are not integrated with each other. Quality management systems are usually perceived by both the managing staff and production personnel as useless, bureaucratic systems and are treated merely as a marketing element. Such an approach frequently results from errors made at the stage of establishing quality management systems, which are detached from real processes performed by an organization. The integration of QMS with the lean engineering system should be commenced by adjusting the QMS documentation to the scope of activity and the processes defined by and carried out in the company as well as removing any documents that are not used in the organisation s activity. During trainings that prepare QMS internal auditors it is necessary to pay attention to the importance of taking into consideration the usability of the examined documentation in the organisation s improvement processes. It seems that this aspect is not sufficiently investigated during third party audits. References 1. ŚCIERSKI J.: Doskonalenie systemów zarządzania w małych firmach. [w:] Zarządzanie jakością. Doskonalenie organizacji. Red. T. Sikora, Uniwersytet Ekonomiczny w Krakowie, Kraków 2010, D=7dec0978a4fe65afe8fc08b4ce6efa9a, pobranie: z dnia LIKER J.: Droga Toyoty. 14 zasad zarządzania wiodącej firmy produkcyjnej świata. Wydawnictwo MT Biznes, Warszawa Zeszyty Naukowe 27(99) z. 2 91

7 Jerzy M. Ścierski 4. PN-EN ISO Systemy zarządzania jakością. Podstawy i terminologia. PKN, Warszawa PN-EN ISO Systemy zarządzania jakością. Wymagania. PKN, Warszawa PN-EN ISO Systemy zarządzania jakością. Wytyczne doskonalenia funkcjonowania. PKN, Warszawa LIGARSKI J.: Dlaczego systemy zarządzania jakością mogą nie działać. [w:] Metody i narzędzia nowoczesnego zarządzania organizacjami, red. J. Pyka, TNOiK, Katowice 2008, ŚCIERSKI J.M., BALCER M.: Integracja SZJ z modelem produkcyjnym opartym o filozofię lean-management. [w:] Nowoczesność przemysłu i usług. Modele, metody i narzędzia zarządzania organizacjami. Red. J. Pyka TNOIK, Katowice 2010, ŚCIERSKI J.: Ewolucja systemów zarządzania jakością kierunki zmian w normach ISO serii ŚCIERSKI J.: Jakość usług doradczych wyniki badań. [w:] Rola towaroznawstwa w zarządzaniu jakością w warunkach gospodarki opartej na wiedzy Towaroznawstwo w nauce i praktyce. Red. J. Żuchowski, Politechnika Radomska, Radom 2010, ŚCIERSKI J.: Analiza niezgodności wykrywanych w trakcie auditów zewnętrznych. [w:] Instytucjonalne i rynkowe uwarunkowania rozwoju małych i średnich przedsiębiorstw w Polsce. Red. Michalski E., Piocha S., Polskie Towarzystwo Ekonomiczne, Koszalin 2008, MICKLWRIGHT M.: Lean ISO 9001, ASQ Quality Press, Milwaukee, Wisconsin Recenzent: dr hab. inż. Zofia Jóźwiak, prof. AM Akademia Morska w Szczecinie 92 Scientific Journals 27(99) z. 2

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