Taking a holistic QMS approach to enhancing productivity Harnek Singh 9 th March 2012 Enhancing Productivity and Business Growth Through Quality Management Systems
Rationale for the QMS A response to the emerging globalization of markets North American Free Trade Act (NAFTA) European Free Trade Association (EFTA) European Community (EC) Provides confidence to organization and its customers that it is able to provide products that consistently fulfill the requirements. Consistency in meeting customer requirements is now a measure of corporate efficiency/ sustenance Partnering arrangements with suppliers Presents an opportunity for internal improvement
ISO 9000 Quality Standards focus on the SYSTEM, not the Product.
Management system refers to what the organization does to manage its processes, or activities, so that its products or services meet the objectives it has set itself, such as: -» satisfying the customer's quality requirements,» complying with regulations, or» meeting environmental objectives Management system standards provide a model to follow in setting up and operating a management system. This model incorporates the features on which experts in the field have reached a consensus as being the international state of the art.
Meaning of Quality: Consumer s Perspective Fitness for use how well product or service does what it is supposed to Quality of design designing quality characteristics into a product or service A Mercedes and a Ford are equally fit for use, but with different design dimensions
Ability of ISO 9000 standards to adapt / Challenges/ Opportunities
So, why is this important to me??
The Real-Time Economy = Ideas + Technology + Information (Better) (Faster) (Cheaper)
Delighted Customers better, faster, cheaper Getting the Right Things to the Right Places at the Right Times, for Profit / with Savings
How good is your quality? processes people products Lens of the organisation Lens of the customer outcomes benefits results
Quality Throughout A Customer s impression of quality begins with the initial contact with the company and continues through the life of the product. Customers look to the total package - sales, service during the sale, packaging, deliver, and service after the sale. Quality extends to how the receptionist answers the phone, how managers treat subordinates, how courteous sales and repair people are, and how the product is serviced after the sale. All departments of the company must strive to improve the quality of their operations to achieve excellence & overall productivity improvement.
The Key is to keep improving: Sustaining the best practices ( processes ) and Improving/innovating those processes which fall short / are lacking
1. Customer Focus 8. Factual Approach to Decision-Making 2. Leadership Eight Quality Management Principles 7. Mutually Beneficial Suppler Relationship 3. Involvement of People 4. Process Approach 5. System Approach To Management 6. Continual Improvement
Continual Improvement of the Quality Management System Management Responsibility Customers (and other interested parties) Resource Management Measurement, Analysis & Improvement Customers (and other interested parties) Requirements Product Realization Product Satisfaction Model of a Process-Based QMS
QMS Approach Customer needs & expectations Continual improvement Quality Policy & Objectives Corrective action Processes & responsibilities Applying measures Establish methods to measure Resources an approach also for maintaining and improving an existing QMS.
The ISO 9000 family ISO 9001 is the standard that gives the requirements for a quality management system. ISO 9001:2008 is the latest version. It is the only standard in the ISO 9000 family that can be used for certification. There are 17 other standards in the family that can help an organization on specific aspects such as performance improvement, auditing, training
ISO 9000 Family of Standards 17 published standards Quality management systems - Fundamentals & vocabulary Annexes A & B for information only ISO 9000 Measurement Audits ISO ISO 10012 10012 ISO 19011 Guidelines Quality management approach - Managing for the sustained success of an organization ISO 9004 ISO 9001 Quality management systems - Requirements Technical Reports
The core standards in the family: ISO 9000:2005 - Quality management systems - Fundamentals and vocabulary ISO 9001:2008 - Quality management systems Requirements ISO 9004:2009 - Managing for the sustained success of an organization - A quality management approach ISO 19011:2011 - Guidelines for provides guidance on auditing management systems
The supporting standards: ISO 10001:2007 Quality management --Customer satisfaction -- Guidelines for codes of conduct for organizations ISO 10002:2004 Quality management --Customer satisfaction -- Guidelines for complaints handling in organizations ISO 10003:2007 Quality management --Customer satisfaction -- Guidelines for dispute resolution external to organizations ISO/TS 10004:2010 Quality Management Customer satisfaction - Guidelines for monitoring and measuring ISO 10005:2005 Quality management --Guidelines for quality plans ISO 10006:2003 Quality management systems --Guidelines for quality management in projects ISO 10007:2003 Quality management systems --Guidelines for configuration management ISO 10012:2003 Measurement management systems -- Requirements for measurement processes& measuring equipment ISO/TR 10013:2001 Guidelines for quality management system documentation
The supporting standards (continued) ISO/TR 10014:2006 Quality management systems --Guidelines for realizing financial and economic benefits ISO 10015:1999 Quality management --Guidelines for training ISO/TR 10017:2003 Guidance on statistical techniques for ISO 9001:2000I ISO 10019:2005 Guidelines for the selection of quality management system consultants and use of their services ongoing development of new standards: ISO/CD 10018 Quality management --Guidelines on people involvement and competences ISO/NWIP Quality Management Customer satisfaction Guidelines for business-to-consumer electronic commerce transactions
Relationship between ISO 9001 and ISO 9004 ISO 9004 perspective: TQM/ Business excellence ISO 9001 perspective: Quality of products and/or services - customer satisfaction
QMS Process Model
What s the goal of QMS? Do the right things right the first time, every time.
Goal of a Quality Management System For an entity: to operate efficiently and effectively, meeting customer/stakeholders/ regulatory requirements to be managed with the interests of the customer first mindset to ensure that everyone understands who is responsible for doing what, when, why,where and how to meet the performance expected and continually strive for improvement that better quality and productivity.
Quality Policy & Objectives Quality Policy communicates the commitment to quality both internally & externally Understood, maintained & implemented at all levels Quality Objectives communicates how you will meet the commitment in the quality policy Should be measurable & relevant http://www.iso.org/
Evaluating the QMS When evaluating quality management systems, there are four basic questions that should be asked in relation to every process being evaluateda. Is the process identified and appropriately defined? b. Are responsibilities assigned? c. Are the systems implemented and maintained? d. Is the process effective in achieving the required performance/ results?
8. Measurement, Analysis and Improvement 8.5 Improvement 8.5.1 Continual Improvement The organization shall continually improve the effectiveness of the QMS through the use of: Quality policy Quality objectives Audit results Analysis of data Corrective and preventive actions Management Review
Continuous Improvement Programme (CIP) Management System standards like ISO9001 and Business Excellence criteria standards help fix the level of progress which organisations can achieve with CIP and innovation CIP Standards assure the level Progress (e.g. ISO 9001) Time
Effectiveness of the QMS 100 100 Organizational Objectives Organizational Results 0 0 Things are looking good! The gap measures the lack of effectiveness of the quality management system. The narrower the gap, the more effective the QMS.
Effectiveness of the Organization 100 100 QMS Results Organizational Business Results 0 0 The gap measures the lack of business effectiveness of the organization. The narrower the gap, the more effective the organization.
The holistic approach Assess Improve Control BE Framework (Holistic & or Niche Standard) QMS ISO 9001:2008, ISO 9004:2009, JCI, Best Practices, ISO 9001/ 14001 QI/PI tools. Innovation /JCI etc Various Project, Kaizen, Lean Mgmt Sys Stds, 6 Sigma, IQC etc Performance Mgmt Foundation Business Process Framework / Organisation Profile Total Leadership Commitment
Process Approach for QMS Benefits 1.Integration & alignment of processes 2.Focus effort on effectiveness & efficiency 3.Transparency of operations 4.Lower costs through effective use of resources 5.Improved, consistent and predictable results 6.Focused and prioritized improvement initiatives 7.Encouragement of active involvement of people 8.The clarification of responsibilities
Another way to put it At it s simplest, an effective QMS is where all managers are actively leading and facilitating all contributors in everyone s two main objectives: 1. client/customer satisfaction through quality products and services; and 2. continuous improvements / innovations to processes, systems, people, suppliers, partners, products, and services.
BENEFITS OF STANDARDIZATION TO ISO 9001 Improved productivity More Market Competitiveness Better Export Capability
Challenges / Opportunities - SEEK Scope of certification and integration? Education / awareness for all to appreciate and rally together Engagement of those less involved in QMS activities for synergy and common goal Knowledge management/acquisition - participation by all in audits/assessments gain knowledge & better appreciation of own and other work done for a holistic view and benefit
Success Factors (Pre-requisites) Know your organization, your processes, your products and your customers and other interested parties, Decide where you want to go and how (vision and mission), Specify by setting objectives and targets, Clarify roles and responsibilities for action using procedures, instructions and action plans, Measure progress regularly and make revisions when needed, Communicate internally and externally.
VISION Vs ACTION Vision without Action is Day-dreaming Action without Vision is Simple Waste of Time Vision with Action can Change the World
4 In summary
In Conclusion QMS Excellence & Productivity VISION, ACTIVE LEADERSHIP, QUALITY POLICY & OBJECTIVES
Thank you for listening If you have ideas, suggestions, comments, we would love to hear them. 40