Iso9001executive

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  • This presentation covers at the executive and managerial level, the requirements defined in ISO 9001:2000. The clauses of the standard are: 0. Introduction 1. Scope 2. Normative Reference 3. Terms and Definitions 4. Quality Management System 5. Management Responsibility 6. Resource Management 7. Product Realization 8. Measurement, Analysis, and Improvement _______________________________________________________________________________________________ _______________________________________________________________________________________________ _______________________________________________________________________________________________ _______________________________________________________________________________________________
  • Iso9001executive

    1. 1. Quality Management An executive overview
    2. 2. Overview Agenda <ul><li>Quality Management Principles </li></ul><ul><li>Business Plan </li></ul><ul><li>Performance Indicators </li></ul><ul><li>Question Period </li></ul>
    3. 3. Business rationalization <ul><li>To achieve competitive advantage, East Penn must proactively implement business strategies to </li></ul><ul><ul><li>meet customer requirements & enhance customer satisfaction </li></ul></ul><ul><ul><li>achieve, maintain and improve overall organizational performance & capabilities </li></ul></ul>
    4. 4. Competitive Risks <ul><li>Markets </li></ul><ul><ul><li>customers, competitors, pricing, changes </li></ul></ul><ul><li>Product </li></ul><ul><ul><li>quality, performance, reliability, maintainability, innovation, demand, mix, seasonality </li></ul></ul><ul><li>Processes </li></ul><ul><ul><li>facility, capability, capacity, technology, quality </li></ul></ul><ul><li>Suppliers </li></ul><ul><ul><li>quality, delivery, price, consistency, flexibility </li></ul></ul><ul><li>Other </li></ul><ul><ul><li>workforce, capital, governmental policies, health, safety & environment </li></ul></ul>
    5. 5. Quality Management <ul><li>Implementing a quality management system must be a strategic decision </li></ul><ul><li>Must be consistent with other business strategies </li></ul><ul><li>Can be integrated with other management systems such as environmental, occupational health & safety, financial & risk management </li></ul><ul><li>QMS controls must focus on: </li></ul><ul><ul><li>product conformity; consistency; continual improvement; enhancing customer satisfaction </li></ul></ul>
    6. 6. Quality Management Principles <ul><li>Eight quality management principles identified to implement a QMS </li></ul><ul><li>Must be used by top management to: </li></ul><ul><li>Lead & operate an organization successfully </li></ul><ul><li>Direct & control in a systematic & transparent manner </li></ul><ul><li>Address the needs of all interested parties </li></ul><ul><li>Maintain a management system & continually improve its performance </li></ul><ul><li>Maintain consistency with other management disciplines </li></ul>
    7. 7. Customer Focus <ul><li>Understand current & future needs of customers </li></ul><ul><li>Meet customer requirements </li></ul><ul><li>Strive to exceed customer expectations </li></ul><ul><li>Application </li></ul><ul><li>Understand product, delivery, price, support, etc </li></ul><ul><li>Communicate needs and expectations </li></ul><ul><li>Measure customer satisfaction </li></ul><ul><li>Manage customer relationships </li></ul>
    8. 8. Leadership <ul><li>Establish unity of purpose </li></ul><ul><li>Provide direction </li></ul><ul><li>Create proper internal environment </li></ul><ul><li>Application </li></ul><ul><li>Have a clear vision of organization’s future </li></ul><ul><li>Demonstrate commitment to strategies & policies </li></ul><ul><li>Provide required resources and authority </li></ul><ul><li>Be proactive and lead by example </li></ul><ul><li>Understand and respond to external changes </li></ul><ul><li>Inspire, build trust and recognize </li></ul><ul><li>Have open & honest communication </li></ul>
    9. 9. Involvement of people <ul><li>Foster full involvement of people at all levels </li></ul><ul><li>Application </li></ul><ul><li>Encourage employees see themselves as stakeholders </li></ul><ul><li>Empower them to take ownership and responsibility </li></ul><ul><li>Motivate them to seek opportunities to make improvements & recognize achievements </li></ul><ul><li>Allow them to be innovative and creative </li></ul><ul><li>Assist them in enhancing their competencies </li></ul><ul><li>Encourage them to share knowledge </li></ul><ul><li>Help them derive satisfaction from their work </li></ul><ul><li>Emphasize focus on creating value for customers </li></ul>
    10. 10. Process Approach <ul><li>Manage resources and activities as a process to achieve more efficient results </li></ul><ul><li>Application </li></ul><ul><li>Define processes & their sequence & interaction </li></ul><ul><li>Determine criteria, methods & responsibilities to operate & control processes </li></ul><ul><li>Monitor & measure inputs, outputs and conversion </li></ul><ul><li>Ensure adequate resources & information are available </li></ul><ul><li>Analyze & improve process performance </li></ul>
    11. 11. Resources <ul><li>Materials </li></ul><ul><li>Facilities & equipment </li></ul><ul><li>Support services & utilities </li></ul><ul><li>Labor </li></ul><ul><li>Technology </li></ul><ul><li>Methods & measures </li></ul><ul><li>Management </li></ul><ul><li>Finance </li></ul>
    12. 12. Process Concepts <ul><li>All work is a process – things go in (inputs), get worked on (conversion), come out differently (output) </li></ul><ul><li>Conversion activities transform inputs to outputs </li></ul><ul><li>Activities require resources </li></ul><ul><li>Outputs can be product or service </li></ul><ul><li>Inputs, outputs and activities are measurable </li></ul><ul><li>Each activity has a supplier and a customer </li></ul><ul><li>Each process must have a process owner </li></ul>
    13. 13. Process Model Input from supplier value adding activity value adding activity Output to next process Output to next process East Penn Mfg Organization ABC Company Inc
    14. 14. Process Concepts <ul><li>All businesses are defined by processes </li></ul><ul><li>All processes are inter-dependent </li></ul><ul><li>All processes are defined by sub-processes </li></ul><ul><li>All processes cut across functional lines </li></ul><ul><li>All processes must satisfy customer requirements </li></ul><ul><li>All processes are capable of being improved </li></ul>
    15. 15. Process Management Supplier ABC co Customer Processes
    16. 16. Process Structure ABC Mfg Processes Activities Tasks Control Level Work Level
    17. 17. Relationship between processes, functions and departments Functions Processes Processes Processes Customer Needs Satisfied Customers $$$ Depts Depts Depts
    18. 18. Earmarks of process deficiencies <ul><li>Functional separatism exists within the organization </li></ul><ul><li>Problem analysis focuses on the symptoms rather the root causes </li></ul><ul><li>Symptoms trigger the change rather than root cause analysis </li></ul><ul><li>Changes are implemented mostly by management and take long to implement </li></ul><ul><li>Inter-departmental politics and battles rage </li></ul><ul><li>Employees do not see themselves as stakeholders </li></ul><ul><li>Employees are unaware of how other processes & functions work </li></ul><ul><li>Measurements exist to prove functional interaction </li></ul><ul><li>Business objectives have a short term focus </li></ul>
    19. 19. Relationship of processes to quality management <ul><li>Quality management is achieved by managing: </li></ul><ul><li>The structure and operation of processes </li></ul><ul><li>The quality of the resources and information flowing within the processes </li></ul>
    20. 20. Systems approach to management <ul><li>Understand and manage the system of inter-related processes </li></ul><ul><li>Application </li></ul><ul><li>Structure process flow to efficiently achieve customer requirements and internal objectives </li></ul><ul><li>Understand the inter-dependencies </li></ul><ul><li>Establish effective communication </li></ul><ul><li>Measure and evaluate system effectiveness </li></ul><ul><li>Continually improve the system </li></ul><ul><li>Establish resource constraints prior to action </li></ul>
    21. 21. Continual Improvement <ul><li>Establish continual improvement as a permanent objective </li></ul><ul><li>Application </li></ul><ul><li>Products, processes, system, customer satisfaction </li></ul><ul><li>Make it the responsibility of every person </li></ul><ul><li>Establish & achieve progressive objectives </li></ul><ul><li>Focus on effectiveness and efficiency </li></ul><ul><li>Use and provide training on tools and methods </li></ul><ul><li>Promote prevention based activities </li></ul><ul><li>Recognize improvements </li></ul>
    22. 22. Factual approach to decision making <ul><li>Analyze and review operational results for effective management and decision-making </li></ul><ul><li>Application </li></ul><ul><li>Gather performance data relevant to business objectives </li></ul><ul><ul><li>Products, processes, QMS, customer satisfaction, suppliers </li></ul></ul><ul><li>Ensure data is accurate, reliable and accessible </li></ul><ul><li>Analyze data and information using valid methods </li></ul><ul><li>Use analysis to make decisions balanced with experience and intuition </li></ul>
    23. 23. Costs of poor quality <ul><li>Prevention costs </li></ul><ul><ul><li>Training, improved specifications, improved process, employee empowerment, improved technology & equipment </li></ul></ul><ul><li>Appraisal costs </li></ul><ul><ul><li>Costs of inspection, labor and equipment, moving & handling materials </li></ul></ul><ul><li>Failure costs - Internal </li></ul><ul><ul><li>Scrap & disposal, rework & re-inspection, opportunity costs of lost time, moving & storage of reworked units </li></ul></ul><ul><li>Failure costs - External </li></ul><ul><ul><li>Scrap & disposal, rework, opportunity cost of lost time & lost future sales, legal damages </li></ul></ul>
    24. 24. Mutually beneficial supplier relationships <ul><li>Create value by developing suppliers </li></ul><ul><li>Application </li></ul><ul><li>Identify and select key suppliers </li></ul><ul><li>Balance long-term and short-term goals </li></ul><ul><li>Create clear and open communications </li></ul><ul><li>Jointly establish a clear understanding of customer needs </li></ul><ul><li>Initiate joint development, but protect proprietary work & product </li></ul><ul><li>Share information and future plans </li></ul><ul><li>Recognize supplier achievements </li></ul>
    25. 25. Management Responsibility <ul><li>Top management is responsible for the following: </li></ul><ul><li>Management Commitment </li></ul><ul><li>Customer Focus </li></ul><ul><li>Quality Policy </li></ul><ul><li>Planning </li></ul><ul><li>Responsibility, Authority, & Communication </li></ul><ul><li>Management Review </li></ul>
    26. 26. Management Commitment <ul><li>P rovide evidence of it’s commitment to develop, implement, and improve the quality management system: </li></ul><ul><ul><li>Express importance of meeting requirements </li></ul></ul><ul><ul><li> (customer, as well as, statutory and regulatory) </li></ul></ul><ul><ul><li>Establish the quality policy </li></ul></ul><ul><ul><li>Ensure quality objectives are established </li></ul></ul><ul><ul><li>Conduct management reviews </li></ul></ul><ul><ul><li>Ensure the availability of resources </li></ul></ul>
    27. 27. Quality Policy <ul><li>Top management must ensure quality policy: </li></ul><ul><li>is appropriate to purpose of organization </li></ul><ul><li>provides a framework for quality objectives </li></ul><ul><li>is communicated & understood within organization </li></ul><ul><li>is reviewed for continuing suitability </li></ul><ul><li>includes commitment to comply with requirements and continually improve effectiveness of system </li></ul>
    28. 28. Quality Planning <ul><li>Top management must: </li></ul><ul><li>ensure measurable quality objectives are established at relevant functions and levels </li></ul><ul><li>Establish objectives for products, processes, customer satisfaction, QMS, suppliers, dept’s </li></ul><ul><li>set objectives consistent with quality policy </li></ul><ul><li>ensure QMS planning is carried out to manage & improve processes as well as meet objectives </li></ul><ul><li>maintain integrity of system when changes to system are planned and implemented </li></ul>
    29. 29. Responsibility, Authority and Communication <ul><li>Top management must ensure: </li></ul><ul><li>responsibilities and authorities are defined and communicated within the organization </li></ul><ul><li>a member of management is appointed as the Quality Management Representative </li></ul><ul><li>external & internal communications processes are established </li></ul><ul><li>communication takes place on the effectiveness of the QMS </li></ul>
    30. 30. Management Review <ul><li>Top management must perform reviews of QMS </li></ul><ul><li>Conduct these reviews at planned intervals </li></ul><ul><li>Ensure QMS is suitable, adequate, effective </li></ul><ul><li>Evaluate need for changes or improvement to QMS, processes, product, quality policy, objectives & resource needs </li></ul><ul><li>Maintain records of management reviews </li></ul>
    31. 31. Provision of Resources <ul><li>Determine and provide needed resources to: </li></ul><ul><li>Implement and maintain the quality system </li></ul><ul><li>Continually improve its effectiveness </li></ul><ul><li>Enhance customer satisfaction (by meeting their requirements) </li></ul>
    32. 32. Personnel <ul><li>Determine competency needs for personnel </li></ul><ul><li>(education, training, skills, and experience) </li></ul><ul><li>Provide training to satisfy competency needs </li></ul><ul><li>Evaluate the effectiveness of training </li></ul><ul><li>Make employees aware of importance of activities & contribution to quality objectives </li></ul><ul><li>Maintain appropriate records (education, training, skills, and experience) </li></ul>
    33. 33. Infrastructure <ul><li>Determine, provide, and maintain the infrastructure needed to achieve conformity to product requirements. </li></ul><ul><li>Infrastructure includes, as applicable: </li></ul><ul><ul><li>Buildings, workspace, and associated utilities </li></ul></ul><ul><ul><li>Process equipment (hardware and software) </li></ul></ul><ul><ul><li>Supporting services </li></ul></ul><ul><ul><li>(such as transport or communication) </li></ul></ul>
    34. 34. Work Environment <ul><li>Determine and manage the work environment needed to achieve conformity to product requirements. </li></ul><ul><li>Facility </li></ul><ul><ul><li>Layout & condition of production, storage & office facilities </li></ul></ul><ul><li>Safety of workforce </li></ul><ul><ul><li>Temperature, dust, noise, ventilation, light, ergonomics, health & safety compliance </li></ul></ul><ul><li>Safety of product </li></ul><ul><ul><li>storage locations, containers, movement, mistake-proofing, preservation, packaging </li></ul></ul>
    35. 35. Business Plan <ul><li>Have a formal Business Plan </li></ul><ul><li>Plan must be comprehensive and controlled </li></ul><ul><li>Use short-term as well as long-term goals </li></ul><ul><li>Have methods to determine customer’s current & future requirements & expectations </li></ul><ul><li>Have process to define scope & analysis of information, including frequency & methods of collection </li></ul><ul><li>Have methods to track, update, revise & review the plan </li></ul><ul><li>Ensure plan is followed and communicated as needed to the organization </li></ul><ul><li>Confidential & not subject to audit </li></ul>
    36. 36. Business Plan contents <ul><li>Company history </li></ul><ul><li>General management </li></ul><ul><li>Marketing & sales </li></ul><ul><li>Products & pricing </li></ul><ul><li>Infrastructure </li></ul><ul><li>Operational performance </li></ul><ul><li>Personnel </li></ul><ul><li>Quality management system </li></ul><ul><li>Environmental management system </li></ul><ul><li>Financial management </li></ul>
    37. 37. General management <ul><li>Plan & establish - goals, objectives, policies, processes </li></ul><ul><li>Define organizational structure </li></ul><ul><li>Provide resources </li></ul><ul><li>Demonstrate timely & effective decision-making </li></ul><ul><li>Establish effective communication processes </li></ul>
    38. 38. Marketing <ul><li>Gain knowledge of the market </li></ul><ul><li>Gain knowledge of the customers </li></ul><ul><li>Gain industry & competitor information </li></ul><ul><li>Evaluate channels of distribution </li></ul><ul><li>Determine effective advertising & promotion </li></ul><ul><li>Determine marketing strategies & objectives </li></ul><ul><li>Establish branding & packaging strategies </li></ul><ul><li>Define plans & resources to deploy strategies </li></ul><ul><li>Track & measure marketing performance </li></ul>
    39. 39. Sales Management <ul><li>Develop sales forecasts </li></ul><ul><li>Deploy sales management </li></ul><ul><li>Establish internal & external communication processes </li></ul><ul><li>Define and provide after sales service & customer customer </li></ul><ul><li>Provide sales & customer training </li></ul><ul><li>Determine sales strategies & objectives </li></ul><ul><li>Define plans & resources to deploy strategies </li></ul><ul><li>Track & measure sales performance </li></ul>
    40. 40. Product & pricing <ul><li>Evaluate existing product lines </li></ul><ul><li>Compare with competitor products </li></ul><ul><li>Research & evaluate new product technologies </li></ul><ul><li>Have strategies for new product introduction </li></ul><ul><li>Analyze product costs & profit contribution </li></ul><ul><li>Evaluate impact of volume & price changes </li></ul><ul><li>Study competitor costs </li></ul><ul><li>Determine product & pricing strategies & objectives </li></ul><ul><li>Define plans & resources to deploy strategies </li></ul><ul><li>Track & measure performance </li></ul>
    41. 41. Infrastructure <ul><li>Determine capacity & capability of existing facilities </li></ul><ul><li>Include – buildings, equipment, tooling, transportation, lab, information systems & support services </li></ul><ul><li>Relate to requirements for products, processes, access, workspace, environmental protection, health, safety, security, ergonomics, maintenance & support services </li></ul><ul><li>Determine strategies & objectives for infrastructure expansion </li></ul><ul><li>Define plans & resources to deploy strategies </li></ul><ul><li>Track & measure performance </li></ul>
    42. 42. Operational Performance <ul><li>Research & apply suitable production, tooling & material handling technologies </li></ul><ul><li>Optimize facility layout and process flows </li></ul><ul><li>Use appropriate production planning and control techniques </li></ul><ul><li>Optimize inventory management – turns, rotation & levels </li></ul><ul><li>Determine strategies & objectives for operational performance </li></ul><ul><li>Define plans & resources to deploy strategies </li></ul><ul><li>Track & measure performance </li></ul><ul><li>Benchmark against industry & competitors </li></ul>
    43. 43. Personnel <ul><li>Establish recruitment strategies & policies </li></ul><ul><li>Develop compensation & benefits policies </li></ul><ul><li>Develop employee relations & services policies </li></ul><ul><li>Establish personnel development methods </li></ul><ul><li>Determine personnel strategies & objectives </li></ul><ul><li>Define plans & resources to deploy strategies </li></ul><ul><li>Track & measure performance </li></ul>
    44. 44. Quality & Environmental management <ul><li>Plan QMS upgrade to ISO 9001:2000 </li></ul><ul><li>Plan QMS certification to ISO/TS 16949 </li></ul><ul><li>Plan EMS certification to ISO 14001 </li></ul><ul><li>Plan laboratory certification to ISO 17025 </li></ul><ul><li>Establish timeline, activities & resources </li></ul><ul><li>Develop & implement documentation & controls and provide necessary training </li></ul><ul><li>Achieve planned certification </li></ul>
    45. 45. Financial Management <ul><li>Establish financial capital planning </li></ul><ul><li>Implement reliable & timely financial accounting & reporting systems </li></ul><ul><li>Develop value-added cost accounting systems </li></ul><ul><li>Implement effective cash management </li></ul><ul><li>Establish budgets to track & control monthly and annual performance </li></ul><ul><li>Set appropriate credit management policies </li></ul><ul><li>Provide asset & risk management </li></ul><ul><li>Establish tax planning and management </li></ul>
    46. 46. Performance indicators
    47. 47. Performance indicators <ul><li>Market and Customer </li></ul><ul><li>Share of market </li></ul><ul><li>New and lost customers </li></ul><ul><li>Customer satisfaction or dissatisfaction indices </li></ul><ul><li>Quality performance </li></ul><ul><li>Delivery performance </li></ul><ul><li>Response time </li></ul><ul><li>Market/channel/customer profitability </li></ul><ul><li>Warranties, claims, returns </li></ul>
    48. 48. Performance indicators <ul><li>Competitor </li></ul><ul><li>Share of market(s) </li></ul><ul><li>Customer satisfaction or dissatisfaction indices </li></ul><ul><li>Quality performance </li></ul><ul><li>Delivery performance </li></ul><ul><li>Price performance </li></ul><ul><li>New-product development cycle time </li></ul><ul><li>Proportion of new products </li></ul><ul><li>Financial performance </li></ul>
    49. 49. Performance indicators <ul><li>Business Processes </li></ul><ul><li>Product (PPM; defect; scrap; rework, waste, etc) </li></ul><ul><li>Order to delivery response times </li></ul><ul><li>Product-development cycle time </li></ul><ul><li>Number of new products </li></ul><ul><li>Manufacturing cycle time </li></ul><ul><li>Inventory turns </li></ul><ul><li>Sales (production) per employee </li></ul><ul><li>Reinvestment indicators </li></ul><ul><li>Health and safety performance </li></ul>
    50. 50. Performance indicators <ul><li>Personnel </li></ul><ul><li>Employee morale </li></ul><ul><li>Applicants/acceptance ratio </li></ul><ul><li>Development hours per employee </li></ul><ul><li>Employee competence measures </li></ul><ul><li>Employee suggestions </li></ul><ul><li>Turnover ratios </li></ul>
    51. 51. Performance indicators <ul><li>Environmental </li></ul><ul><li>Hours of community service </li></ul><ul><li>Hours of industry activities </li></ul><ul><li>Percentage use of recyclable materials </li></ul><ul><li>Amount of pollutant discharge </li></ul><ul><li>Accidents and injuries resulting from products or services </li></ul><ul><li>Fines/violations of government regulations </li></ul>
    52. 52. Performance indicators <ul><li>Financial </li></ul><ul><li>Revenue growth </li></ul><ul><li>Markets/customer profitability </li></ul><ul><li>Product profitability </li></ul><ul><li>Return on sales </li></ul><ul><li>Working capital turnover </li></ul><ul><li>Economic value added </li></ul><ul><li>Return on capital </li></ul><ul><li>Return on equity </li></ul><ul><li>Cash flows </li></ul>
    53. 53. Performance indicators <ul><li>Need Training or Consultancy help? </li></ul><ul><li>http://www.askartsolutions.com has significant expertise in all of the implementation steps and can help you fast track your way to an effective and profitable QMS. </li></ul><ul><li>If you need help in developing or implementing your ISO 9001:2000 QMS, please call us at 905-593-8867 for a no obligation review of your needs. </li></ul>

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