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