Volvo India

Leadership and ISO 9001:2000

Are you prepared? Welcome to a 2 hour workshop for change / improvement drivers

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Aims

To highlight the opportunities change in the role of leadership in ISO 9001:2000 To understand the principles behind the new requirements To show how the new requirements can bring business benefits and lead to improvement in business performance

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Structure

The need for change Quality management principles behind requirements in the new standard The expected role of leadership in ISO 9001-2000 Aligning quality objectives with business performance Measuring performance and recognizing achievement

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User Feedback.....ISO 9001:1994

Of 1100 users more than 80% said the standard:

Lacks simplicity and clarity

Was too biased to manufacturing

User create too much bureaucracy Discourages initiative and creativity Only addresses a portion of the organisation

Does not fit into business practices

Has poor connection to other standards

Writing down what we do then doing as we say only assures that we..............................................do things right

as opposed to..................................doing the right things

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Change in Focus

ISO 9001:1994 details requirements of quality assurance

Whereas ISO 9001:2000 details requirements for quality management as opposed to quality assurance
- what difference will this make?

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User Preferences.....ISO 9001:2000

Process oriented standard Increaded focus on customers More user friendly Easily adaptable to any business Ability to integrate with other standards e.g. - ISO 14001- OHSAS 18001 - EFQM excellence model Inclusion of continual improvement

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Scope......ISO 9001:1994

The Standard specifies quality systems requirements for use where a suppliers capability to design and supply conforming product needs to be demonstrated. The requirements specified are aimed primarily at achieving customers satisfaction by preventing nonconformity at all stages from design through servicing. The Standard is applicable in situations when: a) design is required and the product requirements are stated principally in performance terms or they need to be established and; b) confidence in product conformance can be attained by adequate demonstration of a suppliers capabilities in design development production installation and servicing.

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Scope.....ISO 9001:2000

The standard specifies requirements for a QMS where an organisation needs to demonstrate its ability to consistently provide product that meets customer and applicable regulatory requirements and Aims to enhance customer satisfaction through the effective application of the system, including processes for continual improvement and the assurance of conformity to customer and applicable regulatory requirements.

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Potential Limitations of Q.A.System

Only elements directly involved with product realisation or service delivery included Potential for conflict with other functions due to lack of coordinated approach Elements having significant effect on customer satisfaction may be excluded from the system

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Quality Management Principle

A quality management principle is a complete comprehensive and fundamental rule or belief, for leading and operating an organisation, aimed at continually improving performance over the long term by focusing on customers while addressing the needs of all other stakeholders.

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Principle 1

Customer Focussed Organisation

Organisation depends on their customers and therefore should understand current and future customer needs, should meet customer requirements and should strive to exceed customer expectations.

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Customer Focus

Top management shall ensure that customer requirements are determined and fulfilled with the aim of enhancing customer satisfaction.

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Customer Satisfaction

As one of the measurements of the performance of the QMS, the organisation shall monitor information relating to customer perception as to whether the organisation has fulfilled customer requirements. The methods for obtaining and using this information shall be determined

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Principle 2

Leadership

Leaders establish unity of purpose, direction, and the internal environment of the organisation.
They create the environment in which people can become fully involved in achieving the organisations objectives.

EFQM Criterion 1-Leadership

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Management Commitment

Top management shall provide evidence of its commitment to the development and implementation of the QMS and continually improving its effectiveness by a) Communicating to the organisation the importance of meeting customer as well as statutory and regulatory requirements, b) establishing the quality policy, c) ensuring that quality objectives are established, d) conducting management reviews, e) ensuring the availability of resources.

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Top Management

Top management introduced as a term More that 80% of senior and middle management feel top management is not involved in the QMS Increased requirement for demonstrable commitment from top management to develop and improve the QMS

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Quality Policy

Top management shall ensure that the quality poicy

a) is appropriate to the purpose of the organisation,

b) includes a commitment to comply with requirements and continually improve the effectiveness of the QMS,
c) provides a frame work for establishing and reviewing quality objectives, d) is communicated and understood within the organisation and e) is reviewed for continuing suitability.

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Quality Objectives

Top management shall ensure that quality objectives, including those needed to meet requirements for product are established at relevant functions and levels within the organisation. The quality objectives shall be measurable and consistent with the quality policy.

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Quality Objective

Something sought, or aimed for, related to quality

Note 1 Quality objectives should be based on the organisations quality

policy Note 2 Quality objectives are specified at different levels in the organisation .At an operational level,quality objectives should be quantitative. Note 3 Different terms are sometimes used for quality objectives, such as quality targets, quality aims and quality goals.

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Quality Objectives

Established by you to provide focus and reaction. Objectives determine the intended result and lead you to plan how to utilise resources to realise the results. Objectives can be linked to business plans. Objectives need to be measurable and achievable positives need to be measurable and achievable

improved efficiency,
effectiveness, performance, confidence of stakeholders.

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Principle 3

Involvement of People

People at all levels are the essence of an organisation and their full involvement enables their abilities to be used for the organisations maximum benefit.

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Responsibility and Authority

Top management shall ensure that the responsibilities, authorities and their interrelation are defined and communicated within the organisation.

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Management Representative

Top Management shall appoint a member of management who, irrespective of other responsibilities, shall have responsibility and authority that includes. ensuring that processes needed for the QMS are established, implemented and maintained, reporting to top management on the performance of the QMS and the needs for improvement, ensuring the promotion of awareness of customer requirements throughout the organisation

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Internal Communication

Top management shall ensure that appropriate communication processes are established within the organisation and that communication takes place regarding the effectiveness of the QMS

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Human Resources

Personnel performing work effecting product quality shall be competent on the basis of appropriate education, training skills and experience.

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Competence, Awareness and Training

The-organisation shall

determine the necessary competence for personnel performing work effecting product quality

provide training or rake other actions to satisfy these needs,

evaluate the effectiveness of the actions taken ensure that its personnel are aware of the relevance and importance of their activities and how they contribute to the achievement of quality objectives, maintain appropriate records of education, training, skills and experience.

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Infrastructure

The organisation shall determine, provide and maintain the infrastructure needed to achieve conformity to product requirements. Infrastructure includes for example a) buildings, workplace and associated utilities b) process equipment, both hardware an software, c) supporting services such as transport or communication.

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Principle 4

Process Approach A desired result is achieved more efficiently when related resources and activities are managed as a process

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Business process

A business process is a series of actions taken to

achieve a specified business objective at the most economical cost.

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Principle 5

System Approach to Management

Identifying, understanding and managing a system of interrelated processes for a given objectives contributes to the effectiveness and efficiency of the organisation.

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Key Business Processes

There are 2 types of key Business Processes in management systems:

(1)

Customer Facing Processes:

Process which deliver the components of customers requirements

(2)

Support and Enabling Processes

Processes which provide and facilitate the management and resourcing of an organisation in order to make the customer facing Processes happen effectively.

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Exclusion?
Exercise

Considering the boundaries (scope) of your current management system Which areas/functions are currently excluded from the formal system? Do any of these functions impact upon your ability to manage processes effectively?

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Quality Management system

The organisation shall establish, document, implement, maintain a QMS and
continually improve its effectiveness in accordance with the requirements of The standard.The organisation shall,

Identify the processes needed for the QMS and their application throughout the
organisation

determine the sequence and interaction of these processes determine criteria

and methods needed to ensure that both the operation and control of these processes are effective

ensure the availability of resources and information necessary to support the

operation and monitoring of these processes.

Measure, monitor and analyse these processes and

implement actions necessary to achieve planned results and continual

improvement of these processes.

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Principle 6

Continual Improvement A permanent objective of the organisation is Continual Improvement

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Quality Improvement

Part of quality management focused on increasing effectiveness and efficiency

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Measurement, Analysis and Improvement

The organisation shall plan and implement the monitoring, measurement, analysis and continual improvement processes needed to demonstrate conformity of the product, ensure conformity of the QMS, and Continually improve the effectiveness of the QMS

This shall include the determination of, applicable methods including statistical techniques and the extent of their use.

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Monitoring and Measurement of Processes

The organisation shall apply suitable methods for monitoring and where applicable, measurement of the QMS processes,

These methods shall demonstrate the ability of the processes to achieve planned results
when planned results are not achieved, correction and corrective action shall be taken, as appropriate, to ensure conformity of the product.

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Measurability

Ensure that degree of measurability is considered as an integral element of the process

Auditable
Total visibility Feedback on effectiveness to internal customers Measuring and lauding improvements

Encouraging innovation
Looking objectively at problems

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The Three Es
Economy
Acquiring the inputs for an operation at the lowest possible overall cost (consistent with specified requirements for inputs) Producing the required quantity of outputs with the minimum quantity of inputs and resources (Consistent with specified requirements for outputs) Producing goods and services that

Efficiency

Effectiveness customers want

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Economy

Economy is not just finding goods and services at the lowest unit cost Purchasing activities should find goods and services of the right grade at the right time, in the right quantity at the right price Measure true economy by comparing the total cost of acquisition rather than the purchase price.

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Efficiency

Normally expressed in terms of productivity i.e. The ratio of output to input We can create many efficiency/productivity measures for any given activity or operation You should consider how the particular measure will be effective

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Effectiveness

A measure of outcomes related to customer expectations / requirements.

Often difficult to determine

Possible to derive measures from: Mark share Profit

Customer satisfaction feedback

Internal performance Internal customer satisfaction surveys

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