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The effect of implementation of iso 9001 2008 qms  organizational
 

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    The effect of implementation of iso 9001 2008 qms  organizational The effect of implementation of iso 9001 2008 qms organizational Document Transcript

    • International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 –INTERNATIONAL JOURNAL OF MANAGEMENT (IJM) 6510(Online), Volume 4, Issue 1, January- February (2013)ISSN 0976 – 6367(Print)ISSN 0976 – 6375(Online)Volume 4, Issue 1, January- February (2013), pp. 47-55 IJM© IAEME: www.iaeme.com/ijm.html ©IAEMEJournal Impact Factor (2012): 3.5420 (Calculated by GISI)www.jifactor.com THE EFFECT OF IMPLEMENTATION OF ISO 9001:2008 QMS ON THE ORGANIZATIONAL PERFORMANCE IN AN R&D ESTABLISHMENT Neeti Jain*, Jimmy Kansal*#, AshwagoshaGanju*, Anil Khurana**, PramodSatyawali* * Snow & Avalanche Study Establishment, Sector - 37 A, Chandigarh, India. ** Estate Management Unit (R&D), Sector – 29 A, Chandigarh, India. jimmy.kansal@sase.drdo.in ABSTRACT One recurrent theme within the research into implementation of quality management systems is the study of its effect on the organizationalperformance. However, most research is focused on analyzing the effects of the implementation of different QM systems in either a manufacturing industry or in production lines. This paper presents an empirical study, which examines the effectiveness of ISO 9001:2008 QM system practices in an R&D establishment. This study used data of an R&D establishment certified with ISO 9001:2008 by Standardization, Testing & Quality Certification (STQC), Government of India. Two research questions were posed, with the first pertaining to the effect of implementation of ISO 9001:2008 on the User satisfaction and the second focusing on the effect of QMS on the key performance indicators viz. Project performance, Instrument management systems, Human Resources Development, User communication and Management performance. The findings showed significant contribution of ISO 9001:2008 QMS in enhancing the effectiveness of an R&D organization. These results further suggest that ISO 9001:2008 as a set of generic quality managementprinciples can be adapted in environments other than manufacturing or production areas. Keywords: ISO 9000, ISO 9001:2008, R&D, Quality Management Systems (QMS), User Satisfaction Index (USI), Key Performance Indicator (KPI) 1.0 INTRODUCTION The theory of Quality Management is the most popular and durable modern management philosophies, which has a profound and unparalleled impact on modern business industry (1).This theory lays emphasis on the documentation of various procedures and 47
    • International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 –6510(Online), Volume 4, Issue 1, January- February (2013)adopts a process based approach. The standards and the framework of requireddocuments vary according to the objectives of the organization. The topmanagement,leadership and people involvementare also important factors in successful QMSimplementation in any sector, as it is directly related to quality planning, human resourcemanagement, learning and customer focus. Managers can integrate quality related issuesand plan accordingly, that helps in defining the goals with improved quality (2). QMS inresearch and development begins with strict attention to precise documentation, uses ofappropriate methodology and scientific correctness. In R&D organization QMS promotescollaborative accomplishments, reward both team as well as individual performance, andinitiates and maintains an environment conducive to achievement of set targets, whereasin industries it starts with the aim of profitability.ISO provide a normative framework and methodology to define a QMS in a consistentway, paying special attention to user feedback, which is a function of user satisfaction,timeliness and delivery. The aim of ISO is to promote the philosophy of standardizationand related activities in the world with a view to facilitate the exchange of goods,services, intellectual, scientific, technological and economic activities globally. Two mostimportant objectives of the ISO 9001 series of standards are to develop a simplified set ofstandards that are equally applicable to small as well as medium and large organizationsand the details of documentation required to be more relevant to the desired results of theorganization’s process activities.The ISO 9000 standard allows a registrar company toconduct outside audits of a company’s quality management system (QMS), whichcertifies the implementation and compliance of the QMS to the ISO standard (3).ISO 9001: 2008 requires organizations to continually improve their business processeswhich also force the firm to look at its institutional context and resource allocationdecisions. This enables each individual organization to develop the minimum amount ofdocumentation needed in order to demonstrate the effective planning, operation andcontrol of its processes. ISO 9001: 2008 is a process based, more generic and clearlybased on Plan, Do, Check and Act principle. An ISO 9001: 2008 guideline specifies thestandardized requirement for a quality management system implementation in order toenhance user satisfaction and continual improvement, which can be achieved byidentifying and periodically measuring the KPI of institutionalactivities.KPI are theindicators/ attributes of any task on which particular activity can be assessed and rankedfor their output. These KPIs are required to be documented, measured and analysed toinvestigate the relationship between QMS and its effect on the performance.2.0 METHODOLOGY A case study of an R&D establishment has been carried out to assess the effect ofimplementation of ISO 9001:2008 QMS on the organizational performance. Theestablishment is working in the development of technologies for the mitigation ofavalanche hazards and providing area specific operational avalanche forecast to theservices, civilian population and disaster management agencies in Himalayas. At presentthe establishment is certified as per ISO 9001: 2008 for its QMS. The methodologyadopted is to collect the data pertaining to various attributes of QMS and carry out theiranalysis for organizational performance.For assessing the effect of QMS implementation, 48
    • International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 –6510(Online), Volume 4, Issue 1, January- February (2013)various KPIs have been identified, selected and analyzed for their performance after ayear of implementing QMS. The data is collected by a closed questionnaire administeredin person as well as a set of open questions to clarify any kind of doubts.Thequestionnaire is based on the past experience and literature survey. The process ofdeveloping questionnaire included a number of brainstorming sessions to modify andeliminate a number of variables. A pilot survey is then conducted to update version one tomake the questionnaire further free from any kind of errors as a step towards continualimprovement. The questionnaire is answered by the Divisional and Group headsresponsible for the implementation of quality practices in the respective departments.Secondly for evaluatinguser satisfaction through USI and continual performance, datawas collected from various users of the establishment on a five point Likert scale. Afteranalyzing the KPI for various tasks, we have verified the extent of user satisfaction bytaking the feedback from the user and compared it with KPI markings. The effect of usersatisfaction on the continual performance of the establishmentwas also analyzed.2.1 Model I Clause 5.1of ISO 9001: 2008 standard defines thattop management shall provideevidence of its commitment to the development and implementation of the qualitymanagement system and continually improving its effectiveness. This is achieved byestablishing and reviewing quality policy, quality objectives for continuing suitability,conducting management review and ensuring resource availability. In this studymanagement responsibilityis assessed after identifying KPI of management performanceviz. timeliness, resource allocation etc. Clause 7.6 of the standard emphasizes on thecontrol of monitoring and measuring equipmentbycalibration against international ornational measurement standards. Calibration of instruments has been kept as a keyperformance indicator in the instrument management system. ISO standard for QMS layslot of emphasis on user satisfaction vide Clause 8.2.1 of ISO 9001:2008. This attribute isshortlisted as one of the measurements of the effect of QMS on organizationalperformance and analyzed under user communication system. Clause 6.2.2states that theorganization shall determine the necessary competence for personnel performing workaffecting conformity to product requirements (ISO 9001: 2008). The employees should becompetent on the basis of appropriate education, skill and experience consideredmandatory for the continuous growth of organisation. This aspect of competence, trainingand awareness is captured and analyzed under the HR practices.The validity of QMS implementation was measured using a second order measurementmodel where QMS was treated as a second order KPI, which was measured by five firstorder latent KPIs responsible for assessing effect of QMS on overall performance. The setof five KPIs alongwith their attributes under this study areproject performance,instrument management system, HR practices, user communication system andmanagement practices as mentioned in Table 1.In this paper we have analysed the effectof implementation of QMS on all above identified performance based KPIs. 49
    • International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 –6510(Online), Volume 4, Issue 1, January- February (2013) Table 1: Various KPI and their considered attributesS. No KPI Attributes 1 Project performance Preparedness, Planning time, Over run time, Failure, Performance 2 Instrument Preventive maintenance cost (PMC), Breakdown cost , Outage management system time, Mean performance efficiency (MPE) 3 HR Practice Timeliness, Procedural correctness, Training Effectiveness 4 User Communication Involvement, Clarity in requirement, Satisfaction system 5 Management Practice Timeliness, Problem solving, Budget planning, Resource management2.2 Model II In user feedback form, grade points were sought from various users of the establishment. Thegrade points were finalized based on various parameters namelyvision, mission, strategies, values androadmap of the establishment. A set ofperformance parameters were considered includingtimelinessin services, consistency in results, promptness in query resolution and accuracy in results. Userfeedback form was chosen for collection and analysis of data. The grades are shown as mean ± SEMof all the 20 feedback forms. Evaluation of USI has been further done using ∑AGPi=1,n/ n.3.0 RESULTS ISO 9001: 2008 clause 4.2 gives detail requirements about management responsibility. In thisstudy we have analysed the effect of implementing ISO 9001:2008 QMS on managementperformance (figure 1) in the establishment. Results indicate an improvement in the managementactivities primarily focusing on timelinessthat has enhanced by about 20 % when compared to theindices before implementing QMS. Problem solving capacity is also enhanced significantly. Thebudget planning time required is reduced due to proper documentation of the procedures andactivities. Resources are used optimally as all the activities are well defined and management is awareabout the present competencies and required competencies for the organization as the responsibilitiesand skill sets are available. Figure 1: Effect of ISO 9001: 2008 QMS implementation on Organisational performance attributes 50
    • International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 –6510(Online), Volume 4, Issue 1, January- February (2013)Figure 2 reflects the effect of QMS implementation on various attributes of project management.Results revealed that after implementing QMS, the establishment is geared up to take new projects.TheProject Directors and Project Leaders are spending more time in the conceptualization andplanning phase of the projects. Overrun time has reduced due to increased preparedness anddocumentation, thus failure chances of projects has reduced. Overallperformance of project isincreased significantly. 100 B efo re IS O 9 0 0 1: 2 0 0 8 A fter IS O 9 0 0 1: 2 0 0 8 80 Percent (%) 60 40 20 0 P re p a re d n e s s P la n n in g tm O R T F aliu re R a te P e rfo rm a n c e Figure 2: Effect of ISO 9001: 2008 QMS implementations on attributes of Project management.Figure 3 indicates the benefits of QMS implementation on instrument management system of theR&D establishment. The instrumentation is a major area of concern as the thrust areas of theorganization include development of technologies for the assessment and mitigation of cryospherichazards. Results indicate that after implementing QMS, there is a significant increase in preventivemaintenance, leading to a substantial reduction in breakdown cost of instruments and also reduction inoutage time of individual instrument. The instruments are forced to be calibrated, thereby enhancingthe effectiveness of the results.Figure 3: Effect of ISO 9001: 2008 QMS implementation on Instrument Management System (IMS) attributes. 51
    • International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 –6510(Online), Volume 4, Issue 1, January- February (2013)Figure 4 shows effect of ISO certification on working of HR group, results revealed that QMShas ledto significant rise in timeliness of job, team work and communication. The procedures are streamlinedand documented. The clarity of goals is observed due to clear responsibility of each individual.Various attributes of HR are also integrated. This has led to a transparent environment and overallincrease in the efficiency of the establishment. Figure 4: Effect of ISO 9001: 2008 QMS implementations on Human Resource Group (HRG) attributesFigure 5 shows how implementation of QMS affected User attributes. After implementing QMS wehave observed significant increase in user involvement vis-a-vis clarity in requirement. Significantrise is also observed in user satisfactionthat has beenanalysed through user feedback forms. Figure 5: Effect of ISO 9001: 2008 QMS implementations on User Satisfaction Index (USI) and its attributes. 52
    • International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 –6510(Online), Volume 4, Issue 1, January- February (2013)Table 2 indicates the grade points awarded by user for various services provided to them bythe establishment. The grade points awarded by the users for various services afterimplementation of ISO 9001:2008 vis-à-vis before the implementation of QMS wereanalysed to evaluate USI. Results indicate the enhancement in the grades awarded by usersfor various services.S.No Services Grades awarded by Grades awarded remarks user (Before ISO) by user (After ISO) 1 Timeliness in services 2.13± 0.19 4.31± 0.34 Excellent 2 Promptness in query 3.01± 0.15 4.76± 0.12 Excellent resolution 3 Consistency in results 2.76± 0.21 3.32± 0.17 Very good 4 Accuracy in results 2.29± 0.27 3.41± 0.31 Very good 5 Organisational 3.05± 0.25 4.71± 0.15 Excellent performance 6 Design competency 2.11± 0.31 3.61± 0.26 Very good 7 Technical expertise 2.13± 0.17 3.47± 0.21 Very good 8 User Satisfaction Index 2.07± 0.025 4.65± 0.034 Excellent( 1-2: poor; 2-3: good; 3-4: very good; 4-5: excellent)Table 2: Grade points awarded by users for various services provided by organization and user satisfaction index (USI)4.0 DISCUSSIONS Several studies have developed an instrument for measuring quality management,assessing its reliability and validity applicable to industrial as well as service sector and R&D(4,5,6). QMS also makes R&D more receptive to the concept of control and measurement. Itdirects R&D divisions to focus on user needs and expectations (1, 7). Various studies havebeen reported regarding QMS and performance by using different dimensions of performanceon basis of several criteria viz. customer results, people results, society results and qualityperformance, some are found dependent and few have not found such link between QMS andperformance (8, 9,10,11). Nevertheless, the positive arguments listed earlier on theapplicability of QMS in R&D environments have also been supported by a number of studies(8; 12). Szakonyiusing six case studies showed that R&D function should adapt qualityprinciples in order to achieve not only their own objectives but ultimate business successes,QMS also reported to enhance project performance in defence R&D (12, 13).The studies have also suggested that R&D practitioners are less prone to adopt qualitysystems merely because of the organisational legitimation it brings (14). However laterstudies have showed the link between quality management practices and improvedperformance using both factual data and perceptual data (15). The conceptual development ofQMS has been reflected in its application, which has permeated beyond manufacturing orproduction lines into wider functions in organisations(1).The literature also reflects that QMStools have a statistically significant effect on continuous improvement (16). 53
    • International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 –6510(Online), Volume 4, Issue 1, January- February (2013)This study has produced two interesting findings in terms of integration of KPIs and USI onQMS and further its effect on organizational performance. The effect of QMS is in line withfindings reported in other studies primarily in production, manufacturing and other R&Dsectors (3, 16, 17). From the theoretical point of view, the integration of all the processes inan establishment supports the proposition of QMS in synergizing the efforts in enhancing theeffectiveness and efficiency. Results revealed that organisation is excellent in terms oftimeliness in services and promptness in query resolution, very good in consistency andaccuracy in results. Evaluation of USI has been done using ∑AGPi=1,20/ 20. The averagegrade point value corresponding to different services has yielded USI as 3.7175, which meansthe organizational performance is close to excellent. This further implies that though theoverall view of the users about the establishment is encouraging, there is a definite scope forcontinual improvement from Excellent to Outstanding.5.0 CONCLUSION The case study of an R&D establishment has been discussed in the context of effect ofimplementation of ISO 9001:2008 on the organizational performance. The opportunity tobecome wiser and the scope to excel in new areas is drawing attention. Quality ManagementSystems has really served as a value addition. The establishment is more focused towards itsusers and the USI has become an index in its annual reports. The identified KPIs have servedas a base in reflecting the tangible outputs after implementation of ISO 9001:2008. Overallthe findings have been quite encouraging and motivating.6.0 REFERENCES 1. Prajogo, D.I., Hong, S.W. (2008), The effect of TQM on performance in R&D environments: A perspective from South Korean firm. Technovation, 28, 855-863. 2. Marta, S., Lertiz, L.E, Mumford, M.D. (2005), Leadership skills and the group performance: Situational demands, behavioural requirement and planning. The Leadership Quarterly, 16(1), 97-120. 3. Anderson, S.W., Daly, J.D., Johnson, M.F. (1999), Why firms seek ISO 9000 certification: Regulatory compliance or competitive advantage. Production & Operations Management, 8, 28-43. 4. Flynn, B.B., Schroeder, R.G., Sakakibara, S. (1994), A framework for quality management research and an associated measurement instrument. Journal of Operations Management, 11 (4), 339- 366. 5. Ahire. S.L., Dreyfus. P. (2000), The impact of deign management and process management on quality: an empirical investigation. Journal of Operations Management, 18 (5), 549-575. 6. Rao, S. S., Solis, L.E., Raghunathan, T.S. (1999), A framework for international quality management research: Development and validation of a measurement instrument. Total Quality Management, 10 (7), 1047-1075. 7. Jayawarna, D., Holt, R. (2009), Knowledge and quality management: An R&D perspective. Technovation, 29, 775-785. 8. Powell, T.C. (1995), Total quality management as competitive advantage: a review and emperical study. Strategic Management Journal, 16 (1), 15-37. 54
    • International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 –6510(Online), Volume 4, Issue 1, January- February (2013) 9. Spector, B., Beer, M. (1994), Beyond TQM Programmes. Journal of Organisational Change Management, 7 (2), 63-70. 10. Easton, G.S., Jarell, S.L. (1998), The effect of total quality management on corporate performance: An empirical investigation. Journal of Business, 71(2), 253-307. 11. Taylor, W.A., Wright, G.H.(2003), A longitudinal study of TQM implementation: factors influencing success and failure. Omega, 31 (2), 97-111. 12. Pillai, A.S., Joshi, A., Rao, K.S. (2002), Performance measurement of R&D projects in a multi –project, concurrent engineering environment. Int. J Project Management, 20, 165-177. 13. Szakonyi, R. (1992), Integrating R&D with company efforts to improve quality. International Journal of Technology Management, 7 (4, 5), 254-277. 14. Xu, Q. (2000), On the way to knowledge: making a discourse at quality. Organisation, 7 (3), 427-483. 15. Prajogo, D. I., Sohal, A. S. (2006), The integration of TQM and technology/ R&D management in determining quality and innovation management. Omega, 34, 296- 312. 16. Tari, J.J., Molina, J.F., Casterjon, J.L. (2007), The relationship between quality management practices and their effects on quality outcomes. European Journal of Operational Research, 183, 483-501. 17. Li, S.T, Chang WC. (2009), Exploiting and transferring presentational knowledge assets in R&D organisations. Expert System with Application, 36, 766-777. 18. Mrs. Varsha H. Patil and Mrs. Snehal M. Kamalapur, “A Conceptual Thinking Of Total Quality Management In Engineering Education” International Journal of Management (IJM), Volume 3, Issue 1, 2012, pp. 169 - 174, Published by IAEME 55