QUALITY MANAGEMENT SYSTEM IN NON-PROFIT STATE JOIN STOCK COMPANY LATVIAN ROAD ADMINISTRATION

Transcription

1 QUALITY MANAGEMENT SYSTEM IN NON-PROFIT STATE JOIN STOCK COMPANY LATVIAN ROAD ADMINISTRATION Inguna Siljāne-Karple, Quality Manager, Latvian Road Administration Background In July, 2000, the management of the Non-Profit State Joint Stock Company Latvian Road Administration prepared a strategic development programme for the period until June 1, 2003 and set a target to implement a Quality Management System to improve the efficiency of company activities. The expected result is professional and efficient management of the state road network. The company has established its quality policy by defining quality as the most relevant factor in road network management and development, which is to be achieved by the implementation and further development of a Quality Management System. The basis of company activities is the identification and satisfaction of our customers needs, as well as, evaluation and improvement of the efficiency of our services. In 2002 the Latvian Road Administration (LRA) accomplished the preparation and implementation of its Quality Management System in conformity to international standard ISO 9001:2000. The System covers all main processes in the LRA s activities. In December 2002 a certification auditing was carried out in the Latvian Road Administration by the company SIA Bureau Veritas Latvia International which acquired contract for auditing in open tender. Quality Management System covers the state road network management and the management of road construction works. The system covers road routine maintenance, periodic maintenance, reconstruction and construction, preparation and planning of work programmes, road network registration and evaluation, management of the company and its resources and documents, as well as, provision of different services. Quality Management System and its procedures are targeted to improve the efficiency of the LRA s activities therefore each employee is expected to provide input in implementing the quality policy and achieving its targets by using appropriate procedures and instructions. The employees may submit recommendations and require the elimination of activities that do not conform to the quality system and hinder the achievement of higher quality level. 1

2 Essentials of Quality Management System Quality Management System defines the quality environment of company s business. Efficient Quality Management System may be established in any business activity both in servicing and production, public and private sector. Its common characteristics are the following: Quality Management System has to be based on the understanding of business sphere, clients and their requirements; Quality Management System has to be controlled and supported by the management; All employees have to be involved in the implementation of Quality Management System; Quality Management System has to be targeted to the prevention of mistakes and not only to their statement and correction. This factor minimises the total burden of costs and improves business performance; Quality Management System has to cope with changes in the company and its development. Quality management activities in the Latvian Road Administration In 2001 a project for the implementation of Quality Management System based on the standard ISO 9001:2000 was launched. A project group for implementing the Quality Management System was set up in the company. Its main functions were to: define the business spheres of the Latvian Road Administration where the Quality Management System would be needed; define the quality policy and goals of the Latvian Road Administration; ensure that the requirements of our clients are identified precisely and fulfilled in order to increase the level of their satisfaction; ensure the planning of the Quality Management System to meet the set requirements and achieve quality goals; ensure the determination of responsibilities and authorities and their clarification throughout the company; ensure the preparation of procedures, instructions and other documents needed for the Quality Management System; audit the implemented Quality Management System after regular intervals in order to ensure its adequacy, conformity and efficiency. 2

3 The implementation group of the Quality Management System held regular meetings once in a week to draft the necessary documents, discuss and solve problems, as well as, follow up the implementation progress and make relevant decisions. In order to implement the Quality Management System the Latvian Road Administration attracted a consulting company thus acquiring the following benefits: implementation time decreased; confidence in the conformity of the System to ISO 9001:2000 requirements increased considerably; initial audit was not necessary at the moment of certification. The Quality Management System in the LRA was implemented in the following stages: stage I situation evaluation auditing in the company and preparation of initial evaluation report; stage II training of employees; stage III defining of processes in the company, preparation of documents and implementation of the Quality Management System; stage IV internal auditing of the Quality Management System. Situation evaluation auditing Situation evaluation auditing is the evaluation of the conformity of company structure, documentation, personnel skills, testing and measurement methods, equipment and other factors to the requirements set in the Quality Standard. The aim of situation evaluation auditing was to acquire some initial information in order to prepare a programme for the implementation project of the Quality Management System. In October, 2001, the situation evaluation auditing was carried out in the Latvian Road Administration with the help of a consulting company in accordance with ISO 9001:2000. Interviews of managers mostly (directors and department heads) were done by using randomly selected examples. These interviews helped to find out the areas where the Latvian Road Administration already conformed to ISO 9001:2000, as well as, areas where improvements to achieve conformity to the standard were needed. After the situation evaluation audit several advantages of the Latvian Road Administration for the implementation of the Quality Management System were found. Non-Profit State Joint Stock Company Latvian Road Administration is a governmental organisation, which acts on the basis 3

4 of its Statutes, therefore it has rather advanced system of documentation in comparison with private companies. All job descriptions, statutes of departments and divisions, work instructions, etc. have been elaborated. A number of documents of external origin (standards and laws regulating the LRA s activities) have also been identified and even included in the LRA s homepage. A number of the LRA s activities, such as public procurement, are regulated by the existing laws, therefore no specific procedures in the LRA are needed. As the State Archive regularly checks the LRA s documents and records, the storage of documentation has also been well developed, and therefore after implementing the quality management system no problems with the maintenance of records and documents are expected The Latvian Road Administration has its own Training Centre, which organises training, therefore all employees have an opportunity to be trained and acquire the qualifications and skills needed to fulfil all job duties. The company since its foundation has also a clearly established structure, therefore if a necessity to reorganise the company arises, only minor changes in the structure might be needed, as the interaction of all departments and divisions is defined clearly. Training of employees Training of employees was needed because of several factors. Firstly, one of the Quality Standard requirements directly refers to the training of personnel specifically in quality management issues. Secondly, it is recommended to implement the system correctly with the first try and it is possible only with the help of trained personnel. And at last, as the employees working in structural units with major influence on the quality are properly trained the project preparation and implementation may be performed by a team comprised of specifically trained employees, and this method is today regarded as the most efficient method for problem solution. The Latvian Road Administration appointed a Quality Manager who was trained accordingly. During the implementation of the Quality Management System it was also decided to train one employee in each LRA s division who could consult other employees of the same division during the preparation and implementation of procedures and instructions. It was done because the activities of each division were so specific that a single Quality Manager would not be able to have a good knowledge of them all. Division quality managers were trained also in quality auditing and thus formed a team of quality auditors at the Latvian Road Administration. These employees would also be responsible for maintaining the quality management in each division after the implementation of the Quality Management System. 4

5 Top level managers, namely, Director General, Deputy Director General and division Directors were also trained. Their training was tailored to the needs of top level management and focused mostly on the management responsibilities and liabilities defined by the Quality Standard, as well as, on the Standard itself and its essence. Department heads of the Latvian Road Administration were trained after the compilation of the results of situation evaluation audit. Requirements of the Standard were clarified with the help of examples of activities in the company by indicating those activities, which already met the Quality Standard requirements, as well as, procedures, which needed some amendments or even complete revision. Defining of processes in the company, preparation of documents and implementation of the Quality Management System Quality Management System comprises many interacting processes. In order to achieve efficient quality management, all the necessary processes, their sequence and interaction have to be identified and managed. Defining of processes in the Latvian road Administration was one of the most essential stages in the implementation of the Quality Management System. After identifying the flows of information and processes a scheme of company processes was worked out (see Figure 1). Road network management AO MAJOR PROCESSES Road construction management BO MINOR PROCESSES Client Road network records A1 Road network evaluation A2 Services in road network A3 Road routine maintenance B1 Periodic maintenance, reconstruction, construction B2 Client LRA s management CO Quality management DO Resource management EO Figure 1. Scheme of company processes 5

6 Together with process definition the number of necessary procedures and instructions was determined. In further development of the Quality Management System the Scheme of company processes served as a basis for establishing a system of procedures, instructions and documentation of internal and external origin. After the implementation of the Quality Management System this Scheme is used to improve the company s activities. The Scheme shows all LRA s main processes, which are comprised of minor processes consisting of specific procedures and instructions. Every procedure and instruction determines the sequence of activities in each minor process, for example, the sequence for carrying out road inspections. Activities in procedures and instructions are showed in a flow chart by indicating the responsible employee for each activity, types of records and their storage places and terms. To ensure the preparation of uniform procedures and instructions a sample for procedures and instructions was prepared for the implementation period of Quality Management System, and it was made available for every employee involved in the preparation of procedures and instructions. In total, 53 procedures and instructions were prepared, approved an implemented in the Latvian Road Administration. This number, however, changes constantly, as some procedures are abolished, other are amended and even new procedures and instructions are created. Procedures of the Latvian Road Administration document the LRA s internal processes, responsible employees, flow of information and management tools by providing references to specific instructions, other compulsory procedures, documents of internal origin (decrees, statutes, etc.) and external origin (laws, standards, etc.). When preparing the procedures and instructions the existing documents (e.g. statutes) were also used by updating and adapting them to the new processes. Quality Management System records at the Latvian Road Administration have been created, and they are constantly revised, therefore it is important to ensure that all involved employees refer to the relevant versions of all documents. A handbook of the Quality Management System at the Latvian Road Administration was also worked out which provided a general description of the Quality Management System. Quality handbook defines the authorities and responsibilities of the managers of specific LRA s processes. Quality handbook also serves as means of demonstrating the Quality Management System at the Latvian Road Administration. 6

7 Internal quality audits Quality audit is a systematic and independent analysis in order to assure that the activities and invested resources in quality management conform to activity plans, as well as, provide that these activities are useful and suitable to achieve the established goals. Quality audits in the Latvian Road Administration are carried out regularly and help the management to see the clarity of the activities and timely identify the areas needing any improvements. Quality audits help in solving difficult issues well in advance before they have developed into serious problems. Latvian Road Administration has prepared a procedure, which determines the order of quality audits, both for the auditors and the personnel to be audited. Audits are carried out by the employees the direct duties of which are not connected with the audited area. Benefits of the Latvian Road Administration after the implementation of Quality Management System Benefits of the Latvian Road Administration after the implementation of Quality Management System are the following: Much more efficient work processes; More efficient documenting of activities; Assured quality; Improvement of teamwork and internal communication; Prestige; Risk awareness and management; Improvement of document handling; Contribution to the satisfaction of the publics. Planned activities for further development The planned activities for further development will be the following: Implementing of electronic management for the documents of external origin. For the time being, all documents of external origin are distributed to the employees in printed versions, however, the large number of the LRA s employees and their distribution in 26 districts creates problems in timely distribution of the valid document versions to all employees. 7

8 Implementing of uniform management system for claims and recommendations of our clients, which would improve the flow of information inside the company, expand data storage possibilities, as well as, improve tools for internal control. 8