implementing a quality management system world quality day symposium – nov. 10, 2011 a financial...

Implementing a Quality Management System

World Quality Day Symposium – Nov. 10, 2011

A Financial PerspectiveBy

Cecil D. White

Defining the QMS?

The benefits?

The Costs?

Is it worth it?

Presentation Topics

1

2

4

3

What is a Quality Management System?

Policies,

Processes

Procedures

What is a Quality Management System?

Required for planning and executing business processes

To meet customer requirements

Accredited to International Standards by a Registrar

ISO 9001:2008 is an example

A Cultural Transition

A PHILOSOPHY

Change

It Requires …..

1. Leadership

2. Determination

3. Resilience

4. Commitment

5. Engagement

Requires Leadership

RESILIENCE

How to Engage your Employees?

It Requires …..

1. Trust

2. Inspiration

3. Openness

4. Training

5. Incentives

Create a Trusting Environment

Be Inspirational

Be an Excellent Communicator

Create a Learning Evironment

Offer Rewards & Recognition

What are the benefits?

State of Preparedness

Size of Organization

Complexity of processes

Success Determined by

ISO STANDARD10014:2006

Quality Management Guidelines for

realizing financial and economic benefits

A Strategic Choice

Effective Application of ISO 9000 QM Principles = Financial & Economic benefits

Financial benefit results from cost-effective management practices within the organization.

Economic benefit results from improvements in the overall worth and health of the organization.

ISO 9001 Management Principles

1. Customer Focus

2. Leadership

3. People Involvement

4. Process Approach

5. Systems Approach

6. Continual improvement

7. Factual Approach to Decision Making

8. Mutually Beneficial Supplier Relationships

Derived Benefitsimproved profitability, improved revenues,

improved budgetary performance,

reduced costs, improved cash flow, improved return on investment,

increased competitiveness, improved customer retention and loyalty, improved effectiveness of decision making, optimized use of available resources,

heightened employee accountability, improved intellectual capital, optimized, effective and efficient processes,

improved supply chain performance, reduced time to market,

enhanced organizational performance, credibility and sustainability.

Realization of Benefits

INPUTS

OUTPUTS

PROCESS

The Inputs1. Customer Focus

2. Leadership

3. People Involvement

4. Process Approach

5. Systems Approach

6. Continual improvement

7. Factual Approach to Decision Making

8. Mutually Beneficial Supplier Relationships

The ProcessAssess requirements,

Plan activities,

Allocate appropriate resources,

Implement continual improvement actions,

Measure results to determine effectiveness,

Financial Benefits

improved profitability,

improved revenues,

improved budgetary performance,

reduced costs,

improved cash flow,

improved return on investment,

Output / Result

Increased Productivity

Everyone Wins

Everyone Wins

What are the costs?

State of Preparedness

Size of Organization

Complexity of processes

Costs Determined by

Costs

1. Registrar

2. Internal

Registrar1. Auditor’s Fees & Expenses

2. Application Fee

3. Registration Fee

4. Initial Assessment

5. Registration audit

6. Surveillance Audits

7. Re-registration

Internal Cost1. Sensitization

2. Gap Analysis

3. Training

4. Documentation

5. Implementation

6. Internal Audits

7. Consultant

Beware of

The Iceber

gEffect

Only 10%

Visible

Is it worth it?

Implementing ISO 9000:2001

A Case Study

NHF 2003Government Agency

Startup company

Provision of benefits

Customer base – 150,000

Single location

Employees - 34

Steps to ISO 9000 Certification

1. Hire Quality Management Consultant

2. Conduct Gap Analysis

3. Establish Quality Policy

4. Redefine Business Processes=> 3 Core Processes

Individual Benefits Institutional BenefitsHealth Promotions

5. Company Wide Quality Seminar

6. Prepare Quality Manual (electronic records)5. Quality Policies

6. Quality Objectives

5. 21 Procedures

7. Establish Quality Metrics

8. Prepare Work Instructions

Steps to ISO 9000 Certification

9. Quality Training for ALL9. Audit Training (34 employees)

10.Appoint Lead Auditors

11.Conduct Pre-Assessment Audits (2)

12.Contract Registrar ISOQUAR Ltd (2005 – 2009) NCBJ (2009 – present)

Steps to ISO 9000 Certification

13.Registration Audit13.Audit Training (34 employees)

14.Conduct Internal Audits13.2 per year

15.Surveillance Audits13.2 per year

16.Re-Registration Audits 2008, 2011

Steps to ISO 9000 Certification

How much does it cost?

•First Year – US$ 18,000

•Annual – US$ 5,000

How much does it cost?

•First Year – US$ 18,000

•Annual – US$ 5,000

Our ExperienceA QMS involves more that

HARD measures of quality

SOFT MeasuresTeamworkEmpowermentManagement styleWorking environment

Lessons Learnt1.Shift in Management Philosophy

2.Culture of Continuous Improvement

3.Training is Key

4.Effective Communications

5.Recognition of Achievements

6.Results in Improved Productivity

NHF UPDATEExpansion through Merger

Mature organization

Provision of benefits, Supply Chain, Retail Pharmacy

Customer base – 450,000

Multiple Locations

Employees - 250

THE END