Transcript Document

Implementing a Quality Management System
A Financial Perspective
By
Cecil D. White
World Quality Day Symposium – Nov. 10, 2011
Presentation Topics
1
4
Defining the QMS?
2
The benefits?
3
The Costs?
Is it worth it?
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.
2.
3.
4.
5.
Leadership
Determination
Resilience
Commitment
Engagement
Requires Leadership
RESILIENCE
How to Engage your Employees?
It Requires …..
1.
2.
3.
4.
5.
Trust
Inspiration
Openness
Training
Incentives
Create a Trusting Environment
Be Inspirational
Be an Excellent Communicator
Create a Learning Evironment
Offer Rewards & Recognition
What are the benefits?
Success Determined by
 State of Preparedness
 Size of Organization
 Complexity of processes
ISO STANDARD 10014:2006
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 Benefits
 improved 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
PROCESS
OUTPUTS
The Inputs
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
The Process
 Assess requirements,
 Plan activities,
 Allocate appropriate resources,
 Implement continual improvement
actions,
 Measure results to determine
effectiveness,
Output / Result
Financial Benefits
 improved profitability,
 improved revenues,
 improved budgetary performance,
 reduced costs,
 improved cash flow,
 improved return on investment,
Increased Productivity
Everyone Wins
Everyone Wins
What are the costs?
Costs Determined by
 State of Preparedness
 Size of Organization
 Complexity of processes
Costs
1. Registrar
2. Internal
Registrar
1. Auditor’s Fees & Expenses
2. Application Fee
3. Registration Fee
4. Initial Assessment
5. Registration audit
6. Surveillance Audits
7. Re-registration
Internal Cost
1. Sensitization
2. Gap Analysis
3. Training
4. Documentation
5. Implementation
6. Internal Audits
7. Consultant
Beware
of
The
Iceberg
Effect
Only
10%
Visible
Is it worth it?
Implementing ISO 9000:2001
A Case Study
NHF 2003
 Government 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 Benefits
 Health Promotions
Steps to ISO 9000 Certification
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 ALL
9. 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 Audit
13.Audit Training (34 employees)
14.Conduct Internal Audits
13.2 per year
15.Surveillance Audits
13.2 per year
16.Re-Registration Audits
 2008, 2011
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 Experience
 A QMS involves more that HARD
measures of quality
 SOFT Measures
Teamwork
Empowerment
Management style
Working environment
Lessons Learnt
1. 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 UPDATE
 Expansion through Merger
 Mature organization
 Provision of benefits, Supply
Chain, Retail Pharmacy
 Customer base – 450,000
 Multiple Locations
 Employees - 250
THE END