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WelcomeWelcome
1
Akhil GargAkhil Garg
1974 post-graduate from Indian School of Mines1974 post-graduate from Indian School of Mines
2
Session topic is ā€¦Session topic is ā€¦
Basic Concepts of Management,Basic Concepts of Management,
AndAnd
Standardized Management SystemsStandardized Management Systems
A subject of ā€¦.A subject of ā€¦.
Management and SystemsManagement and Systems
3
I am here before you as ā€¦I am here before you as ā€¦
A management-systems expertA management-systems expert
Sr Member, ASQ ā€“ since 1999Sr Member, ASQ ā€“ since 1999
with listing as Expert on theirwith listing as Expert on their
Virtual Quality NetworkVirtual Quality Network
Analyst, Trainer, Auditor for various ManagementAnalyst, Trainer, Auditor for various Management
Systems ā€¦. since 1993Systems ā€¦. since 1993
Quality, Environment, Social Accountability, Health & Safety,Quality, Environment, Social Accountability, Health & Safety,
Information Security, Energy Performance, Health Care,Information Security, Energy Performance, Health Care,
LaboratoriesLaboratories
[ISO 9001, ISO 14001, SA8000, OHSAS 18001, ISO/IEC 27001, ISO 50001, ISO 17025][ISO 9001, ISO 14001, SA8000, OHSAS 18001, ISO/IEC 27001, ISO 50001, ISO 17025]
4
ā€¦ā€¦ andand
A transactional analyst &A transactional analyst &
counselorcounselor for individuals, couples, families, groups,for individuals, couples, families, groups,
and organizations.and organizations.
Member ITAA since 1999Member ITAA since 1999
5
We will discuss
ā€¢ Evolution of organizations, and management
practices
ā€¢ Evolution of systems approach in
management
ā€¢ International standardization of
management-systems
ā€¢ Basic approach of Standardized Management
Systems
ā€¢ Basics of the Core Management Standard
6
What will you be expected to do ?
What will you be in the Organization ?What will you be in the Organization ?
What will be your daily / routine function ?What will be your daily / routine function ?
Let us start from here ā€¦..
7
Top Management
ManagerManager
Subordinates
Peers
Customers
Suppliers
What will determine your success ?What will determine your success ?
8
Hard SkillsHard Skills Soft SkillsSoft Skills
Your technical or
operational
expertise
Your managerialYour managerial
and interpersonaland interpersonal
expertiseexpertise
What will determine your success ?What will determine your success ?
So is this introduction of management for youSo is this introduction of management for you
9
Need and Emergence of ManagementNeed and Emergence of Management
Industrial Revolution
.. changed basic premise of human development
Our pre-modern economypre-modern economy (agriculture based)
got transformed into
modern economymodern economy based on industrializationindustrialization
( = mechanised production of manufactured goods )( = mechanised production of manufactured goods )
ā€œ ultimate welfare of mankind lies
in its industrial prosperityindustrial prosperity
not in its agrarian efficacyagrarian efficacy ā€
10
Pre-modern EconomyPre-modern Economy
(Pre Industrial Revolution) Domestic Production System
Modern EconomyModern Economy
(Post Industrial Revolution)
Human Evolution ā€“ Production SystemsHuman Evolution ā€“ Production Systems
Centralized Production System
Organizing the work only in some largeOrganizing the work only in some large
central places (factories) to enable thecentral places (factories) to enable the
immediate supervision of compleximmediate supervision of complex
production processes and efficient and co-production processes and efficient and co-
ordinated use of labour and other resourcesordinated use of labour and other resources
o Factories
o Organizations
11
ā€¦. Need also emerged for
managing them ā€¦
ā€¦ so that they can achieve
their basic purposebasic purpose
(= ultimate welfare of mankind)(= ultimate welfare of mankind)
Managing OrganizationsManaging Organizations
OrganizationOrganization were defined ā€¦
Numerous management techniques got evolvedNumerous management techniques got evolved
ā€¦ā€¦ NumerousNumerous ā€“ but under 2 categoriesā€“ but under 2 categories
Management ApproachesManagement Approaches
Classic Management ApproachesClassic Management Approaches
(Traditional Management)(Traditional Management)
Systems Management ApproachSystems Management Approach
(Modern Management)(Modern Management)
13
ā€¢ (Late 18(Late 18thth
Century)Century) Universal Management ApproachUniversal Management Approach
Henri FayolHenri Fayol
A French mining engineer, who developed a general theory of businessA French mining engineer, who developed a general theory of business
administration.administration.
BornBorn: July 29, 1841,: July 29, 1841, Constantinople, TurkeyConstantinople, Turkey
DiedDied: November 19, 1925,: November 19, 1925, Paris, FranceParis, France
Management ApproachesManagement Approaches
Systems Management Approach (Modern Management)
Classic Management ApproachesClassic Management Approaches
(Traditional Management)(Traditional Management)
14
Every organization has only 3 elementsEvery organization has only 3 elements
oSpecialization of LaborSpecialization of Labor (who does what?)(who does what?)
oChain of CommandChain of Command (who reports to whom?)(who reports to whom?)
oAuthorityAuthority (who is ultimately responsible for work?)(who is ultimately responsible for work?)
Managing Organization means, managing these 3 elementsManaging Organization means, managing these 3 elements
So, successful managers are interchangeable across organizationsSo, successful managers are interchangeable across organizations
Management ApproachesManagement Approaches
Systems Management Approach (Modern Management)
Classic Management ApproachesClassic Management Approaches
(Traditional Management)(Traditional Management)
ā€¢(Late 18(Late 18thth
Century)Century) Universal Management ApproachUniversal Management Approach
(by Henri Fayol, a French mining Engineer)(by Henri Fayol, a French mining Engineer)
15
ā€¢ (Late 18th
Century) Universal Management Approach (Henri Fayol)
ā€¢ (Early 19th Century)(Early 19th Century) Scientific Resource ManagementScientific Resource Management
Frederick Winslow TaylorFrederick Winslow Taylor
An American mechanical engineer who developed ways to improve industrialAn American mechanical engineer who developed ways to improve industrial
efficiency - the father of scientific management and one of the firstefficiency - the father of scientific management and one of the first
management consultants.management consultants.
Born: March 20, 1856, Philadelphia, USBorn: March 20, 1856, Philadelphia, US
Died: March 21, 1915, Philadelphia, USDied: March 21, 1915, Philadelphia, US
Management ApproachesManagement Approaches
Classic Management ApproachesClassic Management Approaches
(Traditional Management)(Traditional Management)
Systems Management Approach (Modern Management)
16
ā€¢ (Late 18th
Century) Universal Management Approach (Henri Fayol)
ā€¢ (Early 19th Century)(Early 19th Century) Scientific Resource ManagementScientific Resource Management
(by Frederick W Taylor, a British technician)(by Frederick W Taylor, a British technician)
Every organization uses some resourcesEvery organization uses some resources
o MenMen
o MoneyMoney
o MaterialMaterial
o MachinesMachines
Managing Organization means, managing these resourcesManaging Organization means, managing these resources
scientificallyscientifically
Management ApproachesManagement Approaches
Classic Management ApproachesClassic Management Approaches
(Traditional Management)(Traditional Management)
Systems Management Approach (Modern Management)
17
ā€¢ (Late 18th
Century) Universal Management Approach (Henri Fayol)
ā€¢ (Early 19th Century)(Early 19th Century) Scientific Resource ManagementScientific Resource Management
(by Frederick W Taylor, a British technician)(by Frederick W Taylor, a British technician)
Later, added to this ā€¦Later, added to this ā€¦
o Productivity Management ApproachProductivity Management Approach (Henry Ford)(Henry Ford)
Mass production and optimization of costsMass production and optimization of costs
o Human Relations ApproachHuman Relations Approach (Many,(Many, main onesmain ones Mayo, Herzberg, Maslow,Mayo, Herzberg, Maslow,
McGregor)McGregor)
Industrial Humanism - to take care of the people aspectIndustrial Humanism - to take care of the people aspect
Initially to handle employee unrest, adverse public sympathy, unionism, etcInitially to handle employee unrest, adverse public sympathy, unionism, etc
that had become very dominant by 1930sthat had become very dominant by 1930s
Management ApproachesManagement Approaches
Classic Management ApproachesClassic Management Approaches
(Traditional Management)(Traditional Management)
Systems Management Approach (Modern Management)
18
ā€¢ (Late 18th Century)(Late 18th Century) Universal Management ApproachUniversal Management Approach
ā€¢ (Early 19th Century)(Early 19th Century) Scientific Resource ManagementScientific Resource Management
o Productivity Management ApproachProductivity Management Approach
o Human Relations ApproachHuman Relations Approach
Many limitations emerged ā€“Many limitations emerged ā€“
- Too conservativeToo conservative - No innovations- No innovations - Inflexible- Inflexible
- RationalisticRationalistic - Analytical- Analytical - Negative- Negative
- UnemotionalUnemotional - No individualism- No individualism - No dehumanizing- No dehumanizing
- Preoccupied with bignessPreoccupied with bigness ā€¦ā€¦ā€¦ā€¦ result was ā€¦.result was ā€¦.
Management ApproachesManagement Approaches
Classic Management ApproachesClassic Management Approaches
(Traditional Management)(Traditional Management)
Systems Management Approach (Modern Management)
Need and Emergence of ManagementNeed and Emergence of Management
19
The harder chimney smoked, the better it was
Companies became free to ensure production and
profits within their 4 walls ā€¦ at any cost
ProductionProduction became the only goal of organizations
GDP / GNP / etcGDP / GNP / etc became synonyms of development
HappinessHappiness & Quality of LifeQuality of Life - became biggest causalities
Whereas the purpose of industrialization was ā€¦.
ā€œā€œ Ultimate welfare of mankind ā€Ultimate welfare of mankind ā€
20
Gross National Happiness (GNH)Gross National Happiness (GNH) ā€“ conceptualized in 1972ā€“ conceptualized in 1972
ā€¢ 11stst
three ā€“ Denmark, Switzerland, Austriathree ā€“ Denmark, Switzerland, Austria
ā€¢ 88thth
ā€“ Bhutanā€“ Bhutan
ā€¢ 2323rdrd
ā€“ USā€“ US
ā€¢ 4141stst
ā€“ UKā€“ UK
ā€¢ 8282ndnd
ā€“ Chinaā€“ China
ā€¢ 9090thth
ā€“ Japanā€“ Japan
ā€¢ 104104thth
ā€“ Bangladeshā€“ Bangladesh
ā€¢ 119119thth
ā€“ Nepalā€“ Nepal
ā€¢ ā€¦..
21
Bottle green
Dark green
Light green
Yellow
Brown
Red
Grey
8.000 - 8.999
7.201 - 7.999
6.000 - 7.200
5.000 - 5.999
4.000 - 4.999
3.000 - 3.999
No Data
Quality-of-lifeQuality-of-life
22
2nd
World War
was most severe & immediate test of product quality
Later, Deming explained inherent ideological flawinherent ideological flaw
in the traditional concept of Quality ControlQuality Control
.... Even product failure
ā€¢ Best specificationsspecifications & designsdesigns of products
ā€¢ Best inputsinputs & committed workforcecommitted workforce
ā€¢ Technologically best production facilitiesproduction facilities
ā€¢ Strict inspection of QualityStrict inspection of Quality before delivery
It showed that products miserably failedmiserably failed
to deliver their intended use, despite ..
23
By 1960s Concept of Quality Control
gave way to
Quality AssuranceQuality Assurance
That is ā€¦ performanceperformance, with continual process improvementscontinual process improvements
By 2000 Quality Assurance
gave way to
Quality ManagementQuality Management
24
By late 1940s,
Deming identified
causes of failure of
organizations ā€¦
Special causes
Common causes
CausesCauses ofof FailuresFailures ā€¦
25
Special CausesSpecial Causes Common CausesCommon Causes
(remain once ā€˜special causesā€™ are eliminated)
Prevent uniform performance of product /
service
Prevent product / service to be considered
suitable and/or required; despite uniform
performance
Can be identified by workforce Can be identified by managers
Can be eliminated by managers
through,
Changes in technology, workmen, working
procedure, etc
Can only be eliminated by top management
through,
Changes in design & operation of organizational
system
responsible < 66 % responsible > 9494 %
TechnologicalTechnological SystemicSystemic
incapabilityincapability incapabilityincapability
26
Obviously, the focus of management
techniques got shifted to
Managing systemsystem
capabilitiescapabilitiesrather than
Managing productionproduction capabilitiescapabilities
productionproduction being a byproduct of systemsystem
27
New concept of organizational management
emerged in Japan
came to West in 1970s, which termed it
QUALITY MANAGEMENTQUALITY MANAGEMENT
More appropriately
ACCEPTABILITY MANAGEMENTACCEPTABILITY MANAGEMENT
28
ā€¢ (Late 18th Century) Universal Management Approach
ā€¢ (Early 19th Century) Scientific Resource Management
- Productivity Management - Human Relations Approach
Management ApproachesManagement Approaches
Classic Management Approaches (Traditional Management)
Systems Management ApproachSystems Management Approach
(Modern Management)(Modern Management)
Organizations are ā€¦Organizations are ā€¦
ā€¢ Network of processes (= superset of sub-systems)Network of processes (= superset of sub-systems)
Not a conglomerate of structure, facilities, infrastructure, resourcesNot a conglomerate of structure, facilities, infrastructure, resources
ā€¢ Subset to larger systemsSubset to larger systems
So, they need to integrate their internal environment with their externalSo, they need to integrate their internal environment with their external
environment to always remain dynamic and automatically meshed withenvironment to always remain dynamic and automatically meshed with
external changes eg, policies, economy, society, technology, customerexternal changes eg, policies, economy, society, technology, customer
preferences, etc.preferences, etc.
29
ā€¢ (Late 18th Century) Universal Management Approach
ā€¢ (Early 19th Century) Scientific Resource Management
- Productivity Management - Human Relations Approach
Management ApproachesManagement Approaches
Classic Management Approaches (Traditional Management)
Systems Management ApproachSystems Management Approach
(Modern Management)(Modern Management)
Organizations are ā€¦Organizations are ā€¦
-- (Network of processes)(Network of processes) Superset of SubsystemsSuperset of Subsystems
- Subset to super-systems- Subset to super-systems
o Complete departure from the pastComplete departure from the past
o A paradigm shiftA paradigm shift
o Based on a completely different style of thinkingBased on a completely different style of thinking
30
ā€¢ (Late 18th Century) Universal Management Approach
ā€¢ (Early 19th Century) Scientific Resource Management
- Productivity Management - Human Relations Approach
Management ApproachesManagement Approaches
Classic Management Approaches (Traditional Management)
Systems Management ApproachSystems Management Approach
(Modern Management)(Modern Management)
Individual experts gave differentIndividual experts gave different
management models ā€¦ creating worldwidemanagement models ā€¦ creating worldwide
confusionconfusion
ISO came to rescue in 1979ISO came to rescue in 1979
3131
International Organization for Standardization
Began in 1926 as ISA
(International Federation of National Standardization Associations)
Formed as ISO in 1946, Headquarters at GENEVA
World-wide federation of National Standards
Bodies, eg, NIS (ISO Member Bodies)
Published first management standard inPublished first management standard in
19871987
ISO - an International BodyISO - an International Body
32
Industrial Development
To
SUSTAINABLE DEVELOPMENT.
Emphasis had shifted world-wide from
33
Objectives of OrganizationsObjectives of Organizations
SustainableSustainable
EquitableEquitableBearableBearable
ViableViable
SocialSocial
ObjectivesObjectives
EconomicEconomic
ObjectivesObjectives
EnvironmentalEnvironmental
ObjectivesObjectives
34
Basic ConcernsBasic Concerns
Internal Efficiency
Environment
Social Accountability
Occupational Health & Safety
ISO 9001 : 2008ISO 9001 : 2008
ISO 14001 : 2004ISO 14001 : 2004
SA 8000 : 2008SA 8000 : 2008
OHSAS 18001 : 2007OHSAS 18001 : 2007
Available Management System StandardsAvailable Management System Standards
35
Objectives of OrganizationsObjectives of Organizations
SustainableSustainable
EquitableBearable
Viable
SocialSocial ConcernsConcerns
SA 8000/OHSAS 18001SA 8000/OHSAS 18001
EconomicEconomic ConcernsConcerns
ISO 9001ISO 9001
Environmental ConcernsEnvironmental Concerns
ISO 14001ISO 14001
36
Specific ConcernsSpecific Concerns
For Energy Performance
For Information Security
For Risk Management
For Supply Chain Security
For Food Safety
For Societal Security
(including business continuity)
ISO 50001 : 2011ISO 50001 : 2011
ISO 27001 : 2013ISO 27001 : 2013
ISO 31000 : 2009ISO 31000 : 2009
ISO 28000 : 2007ISO 28000 : 2007
ISO 22000 : 2005ISO 22000 : 2005
ISO 22301 : 2012ISO 22301 : 2012
Available Management System StandardsAvailable Management System Standards
37
All
Management System
Standards
are genericgeneric
38
Thrust is now on
performanceperformance of theof the whole organizationwhole organization
Not just on its production capability
Management of System (=Acceptability) concerns
AllAll organizational processesorganizational processes
not just
Production processes / technical processes
( which can contribute maximum 6 % to organizational success )
Systems Management ApproachSystems Management Approach
(Modern Management)(Modern Management)
39
So, Productivity now gets redefinedredefined
from
Capability to Produce
to
Capability to PERFORMCapability to PERFORM
Systems Management ApproachSystems Management Approach
(Modern Management)(Modern Management)
40
Basic principles ā€¦
Process ApproachProcess Approach
Corrective ApproachCorrective Approach
Preventive ApproachPreventive Approach
PDCA ApproachPDCA Approach
ā€¦. and
Continual ImprovementContinual Improvement
41
Process ApproachProcess Approach means ā€¦
ā€¦ managing organization
as a network of processesnetwork of processes
(inter-dependent, inter-departmental)(inter-dependent, inter-departmental)
rather than managing organization
as a conglomerate of
persons, facilities, departments, etc
42
Purchase is not a department
It is a PROCESS
Maintaining Infrastructure is not an activity
It is a PROCESS
Customer Focus is not a requirement
It is a PROCESS
An altogether different paradigmdifferent paradigm
43
Corrective ApproachCorrective Approach
Preventive ApproachPreventive Approach
ā€¦ā€¦. and. and
Continual ImprovementContinual Improvement
Systems Approach
All Management Systems pursue ā€¦
PDCA ApproachPDCA Approach
44
Corrective Approach & PreventiveCorrective Approach & Preventive
approachapproach
..
4545
Nonconformity Non-fulfilment of requirement
(any undesirable situation)
Ā 
Correction Action to eliminate the effects of
a detected nonconformity
Corrective Action Action to eliminate the
recurrence of a detected
nonconformity
Preventive Action Action to eliminate the
occurrence of a potential
46
Corrective Approach
Preventive Approach
ā€¦ā€¦. and. and
Continual ImprovementContinual Improvement
Systems Approach
All Management Systems pursue ā€¦
PDCA ApproachPDCA Approach
47
PPLAN
PDCA approach
DDOCCHECK
AACT
Continual Improvement
48
PPLAN
PDCA approach
DDOCCHECK
AACT
Continual Improvement
EstablishEstablish
objectives, processes,
and criteria
MakeMake & ImplementImplement
achievement plans
MeasureMeasure actual
achievements against
set objectives & criteria
CorrectCorrect & improveimprove
everything to ensure
better result next time
49
8 Management Principles8 Management Principles
1. Customer focus
2. Leadership
3. Involvement of people
4. Process approach
5. System approach to management
6. Continual improvement
7. Factual approach to decision making
8. Mutually beneficial supplier relationship
50
Basic ConcernsBasic Concerns
ISO 9001 : 2008ISO 9001 : 2008
ISO 14001 : 2004ISO 14001 : 2004
SA 8000 : 2008SA 8000 : 2008
OHSAS 18001 : 2007OHSAS 18001 : 2007
Available Management System StandardsAvailable Management System Standards
Specific ConcernsSpecific Concerns
ISO 50001 : 2011ISO 50001 : 2011
ISO 27001 : 2013ISO 27001 : 2013
ISO 31000 : 2009ISO 31000 : 2009
ISO 28000 : 2007ISO 28000 : 2007
ISO 22000 : 2005ISO 22000 : 2005
ISO 22301 : 2012ISO 22301 : 2012
ISO 9001 QMS isISO 9001 QMS is
core management standardcore management standard
51
BENEFITS OF ISO 9001
(UNIDO-ITC)
0 10 20 30 40 50 60 70 80 90 100
Export Market
Internal Efficiency
Trade Barriers
TQM
Market Share
Domestic Market
Employees' Morale
Fair High
1959 - US developed a quality standard for military purchases, stating1959 - US developed a quality standard for military purchases, stating
what suppliers had to do to demonstrate that their productionwhat suppliers had to do to demonstrate that their production
systems were adequately controlled to deliver required productssystems were adequately controlled to deliver required products
1962 -1962 - NASA developed similar QA standard for their suppliersNASA developed similar QA standard for their suppliers
ISO 9001 QMSISO 9001 QMS ā€“ historical backgroundā€“ historical background
1968 -1968 - NATO imposed its own QA standard on equipment suppliersNATO imposed its own QA standard on equipment suppliers
1969 - UK and Canada developed QA standards for all1969 - UK and Canada developed QA standards for all
sectors, but needing assessments by individualsectors, but needing assessments by individual
customerscustomers
1971 / 1974 - BSI published UK standards BS-9000 (for electronics) and1971 / 1974 - BSI published UK standards BS-9000 (for electronics) and
BS-5179 (for others) ā€“ for 3rd party assurance systemsBS-5179 (for others) ā€“ for 3rd party assurance systems
1979 -1979 - BSI published BS 5750, a generic standardBSI published BS 5750, a generic standard for allfor all sectorssectors
1994 - ISO revisedrevised ISO 9001 standard - mainly to do away
with its ā€˜manufacturing orientationā€™
1987 -1987 - ISO published ISO 9001 standard -ISO published ISO 9001 standard - as the first genericas the first generic
(but dynamic) standard internationally applicable for QA(but dynamic) standard internationally applicable for QA
ISO 9001 QMSISO 9001 QMS ā€“ historical backgroundā€“ historical background
2000 -2000 - ISO again revised ISO 9001 as per program ā€“ now toISO again revised ISO 9001 as per program ā€“ now to
make a radical change to facilitate actual intent ofmake a radical change to facilitate actual intent of
managing organizationsmanaging organizations (which was getting lost ā€¦ )(which was getting lost ā€¦ )
Shift from QA concept to process-management conceptShift from QA concept to process-management concept
That is, on performance, with continual process improvementsThat is, on performance, with continual process improvements
= Quality Management= Quality Management
2008 -2008 - ISO again revised ISO 9001 ā€“ to further clarifyISO again revised ISO 9001 ā€“ to further clarify
ā˜¼ā˜¼ (4.1.a)(4.1.a) Identify the processesIdentify the processes needed for organizationneeded for organization
ā˜¼ā˜¼ (4.1.b)(4.1.b) Determine the sequence & interactionDetermine the sequence & interaction ofof these processesthese processes
ā˜¼ā˜¼ (4.1.c)(4.1.c) Determine theDetermine the criteriacriteria && methodsmethods needed forneeded for these processesthese processes
ā˜¼ā˜¼ (4.1.d)(4.1.d) Ensure resources & informationEnsure resources & information to supportto support these processesthese processes
ā˜¼ā˜¼ (4.1.e)(4.1.e) Monitor, measure, & analyzeMonitor, measure, & analyze these processesthese processes
ā˜¼ā˜¼Ā Ā  (4.1.f)(4.1.f) Implement actionsImplement actions to achieve desired results & improvementto achieve desired results & improvement
ofof these processesthese processes
ā˜¼ā˜¼ (4.2.1.d)(4.2.1.d) Identify the documentationIdentify the documentation needed to ensure effectiveneeded to ensure effective
planning, operation, and control ofplanning, operation, and control of these processesthese processes
ISO 9001 wants an organization toISO 9001 wants an organization to
ManagingManaging identified processesidentified processes is fundamental to ISO 9001is fundamental to ISO 9001
Processes Needed to be Managed ā€¦Processes Needed to be Managed ā€¦
-- Providing leadershipProviding leadership
- Focus towards customer requirements- Focus towards customer requirements
- Policy declaration- Policy declaration
- Objectives setting- Objectives setting
- Allocating responsibilities and authorities- Allocating responsibilities and authorities
- Reviewing system performance- Reviewing system performance
Top-managerial ProcessesTop-managerial Processes
(ā€œperson or group of people, who directs and controls an(ā€œperson or group of people, who directs and controls an
organizationorganization atat the highest levelā€)the highest levelā€)
- Determining and providing resources- Determining and providing resources
- Managing competence and awareness- Managing competence and awareness
- Managing infrastructure- Managing infrastructure
- Managing work environment- Managing work environment
Processes Needed to be Managed ā€¦Processes Needed to be Managed ā€¦
Resource Related ProcessesResource Related Processes
(to ensure that required activities can be properly coordinated;(to ensure that required activities can be properly coordinated;
and do not fail)and do not fail)
- Determining requirements for product- Determining requirements for product
- Determining characteristics & specification required- Determining characteristics & specification required
in product and production processin product and production process
- Purchasing suitable input materials/services- Purchasing suitable input materials/services
- Planning of product-realization activities- Planning of product-realization activities
- Controlling product-realization activities- Controlling product-realization activities
- Controlling monitoring/measuring devices- Controlling monitoring/measuring devices
Processes Needed to be Managed ā€¦Processes Needed to be Managed ā€¦
Product-Realization Related ProcessesProduct-Realization Related Processes
(to ensure that an output is realized that can serve the purpose(to ensure that an output is realized that can serve the purpose
of customer, user, industry-sector, society)of customer, user, industry-sector, society)
- Monitoring customer satisfaction- Monitoring customer satisfaction
- System auditing- System auditing
- Measurement of product and processes- Measurement of product and processes
- Controlling nonconformance- Controlling nonconformance
- Analyzing relevant data- Analyzing relevant data
- Undertaking corrective actions- Undertaking corrective actions
- Undertaking preventive actions- Undertaking preventive actions
Processes Needed to be Managed ā€¦Processes Needed to be Managed ā€¦
Improvement Related ProcessesImprovement Related Processes
(ā€œrecurring activities to increase the ability(ā€œrecurring activities to increase the ability
to fulfil needs and expectations of customer, user, industry-to fulfil needs and expectations of customer, user, industry-
sector, society - stated, implied, or obligatoryā€)sector, society - stated, implied, or obligatoryā€)
59
Basic ConcernsBasic Concerns
ISO 9001 : 2008ISO 9001 : 2008
ISO 14001 : 2004ISO 14001 : 2004
SA 8000 : 2008SA 8000 : 2008
OHSAS 18001 : 2007OHSAS 18001 : 2007
Available Management System StandardsAvailable Management System Standards
Specific ConcernsSpecific Concerns
ISO 50001 : 2011ISO 50001 : 2011
ISO 27001 : 2013ISO 27001 : 2013
ISO 31000 : 2009ISO 31000 : 2009
ISO 28000 : 2007ISO 28000 : 2007
ISO 22000 : 2005ISO 22000 : 2005
ISO 22301 : 2012ISO 22301 : 2012
All follow common principles, that of ISO 9001All follow common principles, that of ISO 9001
60
ISO 9001ISO 9001 QMS
ISO 14001ISO 14001 EMS
OHSAS 18001OHSAS 18001 OHSMS
SA 8000SA 8000 SAMS
ISO 50001ISO 50001 EnMS
ā€¦ā€¦ā€¦
ā€¦ā€¦ā€¦
ā€¦ have been developed as mutually compatible
Fully integrated Systemintegrated System
is most effective ā€¦ and a necessity ā€¦ forfor
Sustainable DevelopmentSustainable Development
ā€¦. to enable organizations to integrate
Quality,Quality, Environment, OH&S, SA, ā€¦Environment, OH&S, SA, ā€¦
into their management systems
6161
The FutureThe Future
One standardOne standard
One auditOne audit
One certificateOne certificate!!
Mario CortopassiMario Cortopassi
Past President ISOPast President ISO
62
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Overview of Organizational Management Systems

  • 1. WelcomeWelcome 1 Akhil GargAkhil Garg 1974 post-graduate from Indian School of Mines1974 post-graduate from Indian School of Mines
  • 2. 2 Session topic is ā€¦Session topic is ā€¦ Basic Concepts of Management,Basic Concepts of Management, AndAnd Standardized Management SystemsStandardized Management Systems A subject of ā€¦.A subject of ā€¦. Management and SystemsManagement and Systems
  • 3. 3 I am here before you as ā€¦I am here before you as ā€¦ A management-systems expertA management-systems expert Sr Member, ASQ ā€“ since 1999Sr Member, ASQ ā€“ since 1999 with listing as Expert on theirwith listing as Expert on their Virtual Quality NetworkVirtual Quality Network Analyst, Trainer, Auditor for various ManagementAnalyst, Trainer, Auditor for various Management Systems ā€¦. since 1993Systems ā€¦. since 1993 Quality, Environment, Social Accountability, Health & Safety,Quality, Environment, Social Accountability, Health & Safety, Information Security, Energy Performance, Health Care,Information Security, Energy Performance, Health Care, LaboratoriesLaboratories [ISO 9001, ISO 14001, SA8000, OHSAS 18001, ISO/IEC 27001, ISO 50001, ISO 17025][ISO 9001, ISO 14001, SA8000, OHSAS 18001, ISO/IEC 27001, ISO 50001, ISO 17025]
  • 4. 4 ā€¦ā€¦ andand A transactional analyst &A transactional analyst & counselorcounselor for individuals, couples, families, groups,for individuals, couples, families, groups, and organizations.and organizations. Member ITAA since 1999Member ITAA since 1999
  • 5. 5 We will discuss ā€¢ Evolution of organizations, and management practices ā€¢ Evolution of systems approach in management ā€¢ International standardization of management-systems ā€¢ Basic approach of Standardized Management Systems ā€¢ Basics of the Core Management Standard
  • 6. 6 What will you be expected to do ? What will you be in the Organization ?What will you be in the Organization ? What will be your daily / routine function ?What will be your daily / routine function ? Let us start from here ā€¦..
  • 7. 7 Top Management ManagerManager Subordinates Peers Customers Suppliers What will determine your success ?What will determine your success ?
  • 8. 8 Hard SkillsHard Skills Soft SkillsSoft Skills Your technical or operational expertise Your managerialYour managerial and interpersonaland interpersonal expertiseexpertise What will determine your success ?What will determine your success ? So is this introduction of management for youSo is this introduction of management for you
  • 9. 9 Need and Emergence of ManagementNeed and Emergence of Management Industrial Revolution .. changed basic premise of human development Our pre-modern economypre-modern economy (agriculture based) got transformed into modern economymodern economy based on industrializationindustrialization ( = mechanised production of manufactured goods )( = mechanised production of manufactured goods ) ā€œ ultimate welfare of mankind lies in its industrial prosperityindustrial prosperity not in its agrarian efficacyagrarian efficacy ā€
  • 10. 10 Pre-modern EconomyPre-modern Economy (Pre Industrial Revolution) Domestic Production System Modern EconomyModern Economy (Post Industrial Revolution) Human Evolution ā€“ Production SystemsHuman Evolution ā€“ Production Systems Centralized Production System Organizing the work only in some largeOrganizing the work only in some large central places (factories) to enable thecentral places (factories) to enable the immediate supervision of compleximmediate supervision of complex production processes and efficient and co-production processes and efficient and co- ordinated use of labour and other resourcesordinated use of labour and other resources o Factories o Organizations
  • 11. 11 ā€¦. Need also emerged for managing them ā€¦ ā€¦ so that they can achieve their basic purposebasic purpose (= ultimate welfare of mankind)(= ultimate welfare of mankind) Managing OrganizationsManaging Organizations OrganizationOrganization were defined ā€¦ Numerous management techniques got evolvedNumerous management techniques got evolved
  • 12. ā€¦ā€¦ NumerousNumerous ā€“ but under 2 categoriesā€“ but under 2 categories Management ApproachesManagement Approaches Classic Management ApproachesClassic Management Approaches (Traditional Management)(Traditional Management) Systems Management ApproachSystems Management Approach (Modern Management)(Modern Management)
  • 13. 13 ā€¢ (Late 18(Late 18thth Century)Century) Universal Management ApproachUniversal Management Approach Henri FayolHenri Fayol A French mining engineer, who developed a general theory of businessA French mining engineer, who developed a general theory of business administration.administration. BornBorn: July 29, 1841,: July 29, 1841, Constantinople, TurkeyConstantinople, Turkey DiedDied: November 19, 1925,: November 19, 1925, Paris, FranceParis, France Management ApproachesManagement Approaches Systems Management Approach (Modern Management) Classic Management ApproachesClassic Management Approaches (Traditional Management)(Traditional Management)
  • 14. 14 Every organization has only 3 elementsEvery organization has only 3 elements oSpecialization of LaborSpecialization of Labor (who does what?)(who does what?) oChain of CommandChain of Command (who reports to whom?)(who reports to whom?) oAuthorityAuthority (who is ultimately responsible for work?)(who is ultimately responsible for work?) Managing Organization means, managing these 3 elementsManaging Organization means, managing these 3 elements So, successful managers are interchangeable across organizationsSo, successful managers are interchangeable across organizations Management ApproachesManagement Approaches Systems Management Approach (Modern Management) Classic Management ApproachesClassic Management Approaches (Traditional Management)(Traditional Management) ā€¢(Late 18(Late 18thth Century)Century) Universal Management ApproachUniversal Management Approach (by Henri Fayol, a French mining Engineer)(by Henri Fayol, a French mining Engineer)
  • 15. 15 ā€¢ (Late 18th Century) Universal Management Approach (Henri Fayol) ā€¢ (Early 19th Century)(Early 19th Century) Scientific Resource ManagementScientific Resource Management Frederick Winslow TaylorFrederick Winslow Taylor An American mechanical engineer who developed ways to improve industrialAn American mechanical engineer who developed ways to improve industrial efficiency - the father of scientific management and one of the firstefficiency - the father of scientific management and one of the first management consultants.management consultants. Born: March 20, 1856, Philadelphia, USBorn: March 20, 1856, Philadelphia, US Died: March 21, 1915, Philadelphia, USDied: March 21, 1915, Philadelphia, US Management ApproachesManagement Approaches Classic Management ApproachesClassic Management Approaches (Traditional Management)(Traditional Management) Systems Management Approach (Modern Management)
  • 16. 16 ā€¢ (Late 18th Century) Universal Management Approach (Henri Fayol) ā€¢ (Early 19th Century)(Early 19th Century) Scientific Resource ManagementScientific Resource Management (by Frederick W Taylor, a British technician)(by Frederick W Taylor, a British technician) Every organization uses some resourcesEvery organization uses some resources o MenMen o MoneyMoney o MaterialMaterial o MachinesMachines Managing Organization means, managing these resourcesManaging Organization means, managing these resources scientificallyscientifically Management ApproachesManagement Approaches Classic Management ApproachesClassic Management Approaches (Traditional Management)(Traditional Management) Systems Management Approach (Modern Management)
  • 17. 17 ā€¢ (Late 18th Century) Universal Management Approach (Henri Fayol) ā€¢ (Early 19th Century)(Early 19th Century) Scientific Resource ManagementScientific Resource Management (by Frederick W Taylor, a British technician)(by Frederick W Taylor, a British technician) Later, added to this ā€¦Later, added to this ā€¦ o Productivity Management ApproachProductivity Management Approach (Henry Ford)(Henry Ford) Mass production and optimization of costsMass production and optimization of costs o Human Relations ApproachHuman Relations Approach (Many,(Many, main onesmain ones Mayo, Herzberg, Maslow,Mayo, Herzberg, Maslow, McGregor)McGregor) Industrial Humanism - to take care of the people aspectIndustrial Humanism - to take care of the people aspect Initially to handle employee unrest, adverse public sympathy, unionism, etcInitially to handle employee unrest, adverse public sympathy, unionism, etc that had become very dominant by 1930sthat had become very dominant by 1930s Management ApproachesManagement Approaches Classic Management ApproachesClassic Management Approaches (Traditional Management)(Traditional Management) Systems Management Approach (Modern Management)
  • 18. 18 ā€¢ (Late 18th Century)(Late 18th Century) Universal Management ApproachUniversal Management Approach ā€¢ (Early 19th Century)(Early 19th Century) Scientific Resource ManagementScientific Resource Management o Productivity Management ApproachProductivity Management Approach o Human Relations ApproachHuman Relations Approach Many limitations emerged ā€“Many limitations emerged ā€“ - Too conservativeToo conservative - No innovations- No innovations - Inflexible- Inflexible - RationalisticRationalistic - Analytical- Analytical - Negative- Negative - UnemotionalUnemotional - No individualism- No individualism - No dehumanizing- No dehumanizing - Preoccupied with bignessPreoccupied with bigness ā€¦ā€¦ā€¦ā€¦ result was ā€¦.result was ā€¦. Management ApproachesManagement Approaches Classic Management ApproachesClassic Management Approaches (Traditional Management)(Traditional Management) Systems Management Approach (Modern Management)
  • 19. Need and Emergence of ManagementNeed and Emergence of Management 19 The harder chimney smoked, the better it was Companies became free to ensure production and profits within their 4 walls ā€¦ at any cost ProductionProduction became the only goal of organizations GDP / GNP / etcGDP / GNP / etc became synonyms of development HappinessHappiness & Quality of LifeQuality of Life - became biggest causalities Whereas the purpose of industrialization was ā€¦. ā€œā€œ Ultimate welfare of mankind ā€Ultimate welfare of mankind ā€
  • 20. 20 Gross National Happiness (GNH)Gross National Happiness (GNH) ā€“ conceptualized in 1972ā€“ conceptualized in 1972 ā€¢ 11stst three ā€“ Denmark, Switzerland, Austriathree ā€“ Denmark, Switzerland, Austria ā€¢ 88thth ā€“ Bhutanā€“ Bhutan ā€¢ 2323rdrd ā€“ USā€“ US ā€¢ 4141stst ā€“ UKā€“ UK ā€¢ 8282ndnd ā€“ Chinaā€“ China ā€¢ 9090thth ā€“ Japanā€“ Japan ā€¢ 104104thth ā€“ Bangladeshā€“ Bangladesh ā€¢ 119119thth ā€“ Nepalā€“ Nepal ā€¢ ā€¦..
  • 21. 21 Bottle green Dark green Light green Yellow Brown Red Grey 8.000 - 8.999 7.201 - 7.999 6.000 - 7.200 5.000 - 5.999 4.000 - 4.999 3.000 - 3.999 No Data Quality-of-lifeQuality-of-life
  • 22. 22 2nd World War was most severe & immediate test of product quality Later, Deming explained inherent ideological flawinherent ideological flaw in the traditional concept of Quality ControlQuality Control .... Even product failure ā€¢ Best specificationsspecifications & designsdesigns of products ā€¢ Best inputsinputs & committed workforcecommitted workforce ā€¢ Technologically best production facilitiesproduction facilities ā€¢ Strict inspection of QualityStrict inspection of Quality before delivery It showed that products miserably failedmiserably failed to deliver their intended use, despite ..
  • 23. 23 By 1960s Concept of Quality Control gave way to Quality AssuranceQuality Assurance That is ā€¦ performanceperformance, with continual process improvementscontinual process improvements By 2000 Quality Assurance gave way to Quality ManagementQuality Management
  • 24. 24 By late 1940s, Deming identified causes of failure of organizations ā€¦ Special causes Common causes CausesCauses ofof FailuresFailures ā€¦
  • 25. 25 Special CausesSpecial Causes Common CausesCommon Causes (remain once ā€˜special causesā€™ are eliminated) Prevent uniform performance of product / service Prevent product / service to be considered suitable and/or required; despite uniform performance Can be identified by workforce Can be identified by managers Can be eliminated by managers through, Changes in technology, workmen, working procedure, etc Can only be eliminated by top management through, Changes in design & operation of organizational system responsible < 66 % responsible > 9494 % TechnologicalTechnological SystemicSystemic incapabilityincapability incapabilityincapability
  • 26. 26 Obviously, the focus of management techniques got shifted to Managing systemsystem capabilitiescapabilitiesrather than Managing productionproduction capabilitiescapabilities productionproduction being a byproduct of systemsystem
  • 27. 27 New concept of organizational management emerged in Japan came to West in 1970s, which termed it QUALITY MANAGEMENTQUALITY MANAGEMENT More appropriately ACCEPTABILITY MANAGEMENTACCEPTABILITY MANAGEMENT
  • 28. 28 ā€¢ (Late 18th Century) Universal Management Approach ā€¢ (Early 19th Century) Scientific Resource Management - Productivity Management - Human Relations Approach Management ApproachesManagement Approaches Classic Management Approaches (Traditional Management) Systems Management ApproachSystems Management Approach (Modern Management)(Modern Management) Organizations are ā€¦Organizations are ā€¦ ā€¢ Network of processes (= superset of sub-systems)Network of processes (= superset of sub-systems) Not a conglomerate of structure, facilities, infrastructure, resourcesNot a conglomerate of structure, facilities, infrastructure, resources ā€¢ Subset to larger systemsSubset to larger systems So, they need to integrate their internal environment with their externalSo, they need to integrate their internal environment with their external environment to always remain dynamic and automatically meshed withenvironment to always remain dynamic and automatically meshed with external changes eg, policies, economy, society, technology, customerexternal changes eg, policies, economy, society, technology, customer preferences, etc.preferences, etc.
  • 29. 29 ā€¢ (Late 18th Century) Universal Management Approach ā€¢ (Early 19th Century) Scientific Resource Management - Productivity Management - Human Relations Approach Management ApproachesManagement Approaches Classic Management Approaches (Traditional Management) Systems Management ApproachSystems Management Approach (Modern Management)(Modern Management) Organizations are ā€¦Organizations are ā€¦ -- (Network of processes)(Network of processes) Superset of SubsystemsSuperset of Subsystems - Subset to super-systems- Subset to super-systems o Complete departure from the pastComplete departure from the past o A paradigm shiftA paradigm shift o Based on a completely different style of thinkingBased on a completely different style of thinking
  • 30. 30 ā€¢ (Late 18th Century) Universal Management Approach ā€¢ (Early 19th Century) Scientific Resource Management - Productivity Management - Human Relations Approach Management ApproachesManagement Approaches Classic Management Approaches (Traditional Management) Systems Management ApproachSystems Management Approach (Modern Management)(Modern Management) Individual experts gave differentIndividual experts gave different management models ā€¦ creating worldwidemanagement models ā€¦ creating worldwide confusionconfusion ISO came to rescue in 1979ISO came to rescue in 1979
  • 31. 3131 International Organization for Standardization Began in 1926 as ISA (International Federation of National Standardization Associations) Formed as ISO in 1946, Headquarters at GENEVA World-wide federation of National Standards Bodies, eg, NIS (ISO Member Bodies) Published first management standard inPublished first management standard in 19871987 ISO - an International BodyISO - an International Body
  • 33. 33 Objectives of OrganizationsObjectives of Organizations SustainableSustainable EquitableEquitableBearableBearable ViableViable SocialSocial ObjectivesObjectives EconomicEconomic ObjectivesObjectives EnvironmentalEnvironmental ObjectivesObjectives
  • 34. 34 Basic ConcernsBasic Concerns Internal Efficiency Environment Social Accountability Occupational Health & Safety ISO 9001 : 2008ISO 9001 : 2008 ISO 14001 : 2004ISO 14001 : 2004 SA 8000 : 2008SA 8000 : 2008 OHSAS 18001 : 2007OHSAS 18001 : 2007 Available Management System StandardsAvailable Management System Standards
  • 35. 35 Objectives of OrganizationsObjectives of Organizations SustainableSustainable EquitableBearable Viable SocialSocial ConcernsConcerns SA 8000/OHSAS 18001SA 8000/OHSAS 18001 EconomicEconomic ConcernsConcerns ISO 9001ISO 9001 Environmental ConcernsEnvironmental Concerns ISO 14001ISO 14001
  • 36. 36 Specific ConcernsSpecific Concerns For Energy Performance For Information Security For Risk Management For Supply Chain Security For Food Safety For Societal Security (including business continuity) ISO 50001 : 2011ISO 50001 : 2011 ISO 27001 : 2013ISO 27001 : 2013 ISO 31000 : 2009ISO 31000 : 2009 ISO 28000 : 2007ISO 28000 : 2007 ISO 22000 : 2005ISO 22000 : 2005 ISO 22301 : 2012ISO 22301 : 2012 Available Management System StandardsAvailable Management System Standards
  • 38. 38 Thrust is now on performanceperformance of theof the whole organizationwhole organization Not just on its production capability Management of System (=Acceptability) concerns AllAll organizational processesorganizational processes not just Production processes / technical processes ( which can contribute maximum 6 % to organizational success ) Systems Management ApproachSystems Management Approach (Modern Management)(Modern Management)
  • 39. 39 So, Productivity now gets redefinedredefined from Capability to Produce to Capability to PERFORMCapability to PERFORM Systems Management ApproachSystems Management Approach (Modern Management)(Modern Management)
  • 40. 40 Basic principles ā€¦ Process ApproachProcess Approach Corrective ApproachCorrective Approach Preventive ApproachPreventive Approach PDCA ApproachPDCA Approach ā€¦. and Continual ImprovementContinual Improvement
  • 41. 41 Process ApproachProcess Approach means ā€¦ ā€¦ managing organization as a network of processesnetwork of processes (inter-dependent, inter-departmental)(inter-dependent, inter-departmental) rather than managing organization as a conglomerate of persons, facilities, departments, etc
  • 42. 42 Purchase is not a department It is a PROCESS Maintaining Infrastructure is not an activity It is a PROCESS Customer Focus is not a requirement It is a PROCESS An altogether different paradigmdifferent paradigm
  • 43. 43 Corrective ApproachCorrective Approach Preventive ApproachPreventive Approach ā€¦ā€¦. and. and Continual ImprovementContinual Improvement Systems Approach All Management Systems pursue ā€¦ PDCA ApproachPDCA Approach
  • 44. 44 Corrective Approach & PreventiveCorrective Approach & Preventive approachapproach ..
  • 45. 4545 Nonconformity Non-fulfilment of requirement (any undesirable situation) Ā  Correction Action to eliminate the effects of a detected nonconformity Corrective Action Action to eliminate the recurrence of a detected nonconformity Preventive Action Action to eliminate the occurrence of a potential
  • 46. 46 Corrective Approach Preventive Approach ā€¦ā€¦. and. and Continual ImprovementContinual Improvement Systems Approach All Management Systems pursue ā€¦ PDCA ApproachPDCA Approach
  • 48. 48 PPLAN PDCA approach DDOCCHECK AACT Continual Improvement EstablishEstablish objectives, processes, and criteria MakeMake & ImplementImplement achievement plans MeasureMeasure actual achievements against set objectives & criteria CorrectCorrect & improveimprove everything to ensure better result next time
  • 49. 49 8 Management Principles8 Management Principles 1. Customer focus 2. Leadership 3. Involvement of people 4. Process approach 5. System approach to management 6. Continual improvement 7. Factual approach to decision making 8. Mutually beneficial supplier relationship
  • 50. 50 Basic ConcernsBasic Concerns ISO 9001 : 2008ISO 9001 : 2008 ISO 14001 : 2004ISO 14001 : 2004 SA 8000 : 2008SA 8000 : 2008 OHSAS 18001 : 2007OHSAS 18001 : 2007 Available Management System StandardsAvailable Management System Standards Specific ConcernsSpecific Concerns ISO 50001 : 2011ISO 50001 : 2011 ISO 27001 : 2013ISO 27001 : 2013 ISO 31000 : 2009ISO 31000 : 2009 ISO 28000 : 2007ISO 28000 : 2007 ISO 22000 : 2005ISO 22000 : 2005 ISO 22301 : 2012ISO 22301 : 2012 ISO 9001 QMS isISO 9001 QMS is core management standardcore management standard
  • 51. 51 BENEFITS OF ISO 9001 (UNIDO-ITC) 0 10 20 30 40 50 60 70 80 90 100 Export Market Internal Efficiency Trade Barriers TQM Market Share Domestic Market Employees' Morale Fair High
  • 52. 1959 - US developed a quality standard for military purchases, stating1959 - US developed a quality standard for military purchases, stating what suppliers had to do to demonstrate that their productionwhat suppliers had to do to demonstrate that their production systems were adequately controlled to deliver required productssystems were adequately controlled to deliver required products 1962 -1962 - NASA developed similar QA standard for their suppliersNASA developed similar QA standard for their suppliers ISO 9001 QMSISO 9001 QMS ā€“ historical backgroundā€“ historical background 1968 -1968 - NATO imposed its own QA standard on equipment suppliersNATO imposed its own QA standard on equipment suppliers 1969 - UK and Canada developed QA standards for all1969 - UK and Canada developed QA standards for all sectors, but needing assessments by individualsectors, but needing assessments by individual customerscustomers 1971 / 1974 - BSI published UK standards BS-9000 (for electronics) and1971 / 1974 - BSI published UK standards BS-9000 (for electronics) and BS-5179 (for others) ā€“ for 3rd party assurance systemsBS-5179 (for others) ā€“ for 3rd party assurance systems 1979 -1979 - BSI published BS 5750, a generic standardBSI published BS 5750, a generic standard for allfor all sectorssectors
  • 53. 1994 - ISO revisedrevised ISO 9001 standard - mainly to do away with its ā€˜manufacturing orientationā€™ 1987 -1987 - ISO published ISO 9001 standard -ISO published ISO 9001 standard - as the first genericas the first generic (but dynamic) standard internationally applicable for QA(but dynamic) standard internationally applicable for QA ISO 9001 QMSISO 9001 QMS ā€“ historical backgroundā€“ historical background 2000 -2000 - ISO again revised ISO 9001 as per program ā€“ now toISO again revised ISO 9001 as per program ā€“ now to make a radical change to facilitate actual intent ofmake a radical change to facilitate actual intent of managing organizationsmanaging organizations (which was getting lost ā€¦ )(which was getting lost ā€¦ ) Shift from QA concept to process-management conceptShift from QA concept to process-management concept That is, on performance, with continual process improvementsThat is, on performance, with continual process improvements = Quality Management= Quality Management 2008 -2008 - ISO again revised ISO 9001 ā€“ to further clarifyISO again revised ISO 9001 ā€“ to further clarify
  • 54. ā˜¼ā˜¼ (4.1.a)(4.1.a) Identify the processesIdentify the processes needed for organizationneeded for organization ā˜¼ā˜¼ (4.1.b)(4.1.b) Determine the sequence & interactionDetermine the sequence & interaction ofof these processesthese processes ā˜¼ā˜¼ (4.1.c)(4.1.c) Determine theDetermine the criteriacriteria && methodsmethods needed forneeded for these processesthese processes ā˜¼ā˜¼ (4.1.d)(4.1.d) Ensure resources & informationEnsure resources & information to supportto support these processesthese processes ā˜¼ā˜¼ (4.1.e)(4.1.e) Monitor, measure, & analyzeMonitor, measure, & analyze these processesthese processes ā˜¼ā˜¼Ā Ā  (4.1.f)(4.1.f) Implement actionsImplement actions to achieve desired results & improvementto achieve desired results & improvement ofof these processesthese processes ā˜¼ā˜¼ (4.2.1.d)(4.2.1.d) Identify the documentationIdentify the documentation needed to ensure effectiveneeded to ensure effective planning, operation, and control ofplanning, operation, and control of these processesthese processes ISO 9001 wants an organization toISO 9001 wants an organization to ManagingManaging identified processesidentified processes is fundamental to ISO 9001is fundamental to ISO 9001
  • 55. Processes Needed to be Managed ā€¦Processes Needed to be Managed ā€¦ -- Providing leadershipProviding leadership - Focus towards customer requirements- Focus towards customer requirements - Policy declaration- Policy declaration - Objectives setting- Objectives setting - Allocating responsibilities and authorities- Allocating responsibilities and authorities - Reviewing system performance- Reviewing system performance Top-managerial ProcessesTop-managerial Processes (ā€œperson or group of people, who directs and controls an(ā€œperson or group of people, who directs and controls an organizationorganization atat the highest levelā€)the highest levelā€)
  • 56. - Determining and providing resources- Determining and providing resources - Managing competence and awareness- Managing competence and awareness - Managing infrastructure- Managing infrastructure - Managing work environment- Managing work environment Processes Needed to be Managed ā€¦Processes Needed to be Managed ā€¦ Resource Related ProcessesResource Related Processes (to ensure that required activities can be properly coordinated;(to ensure that required activities can be properly coordinated; and do not fail)and do not fail)
  • 57. - Determining requirements for product- Determining requirements for product - Determining characteristics & specification required- Determining characteristics & specification required in product and production processin product and production process - Purchasing suitable input materials/services- Purchasing suitable input materials/services - Planning of product-realization activities- Planning of product-realization activities - Controlling product-realization activities- Controlling product-realization activities - Controlling monitoring/measuring devices- Controlling monitoring/measuring devices Processes Needed to be Managed ā€¦Processes Needed to be Managed ā€¦ Product-Realization Related ProcessesProduct-Realization Related Processes (to ensure that an output is realized that can serve the purpose(to ensure that an output is realized that can serve the purpose of customer, user, industry-sector, society)of customer, user, industry-sector, society)
  • 58. - Monitoring customer satisfaction- Monitoring customer satisfaction - System auditing- System auditing - Measurement of product and processes- Measurement of product and processes - Controlling nonconformance- Controlling nonconformance - Analyzing relevant data- Analyzing relevant data - Undertaking corrective actions- Undertaking corrective actions - Undertaking preventive actions- Undertaking preventive actions Processes Needed to be Managed ā€¦Processes Needed to be Managed ā€¦ Improvement Related ProcessesImprovement Related Processes (ā€œrecurring activities to increase the ability(ā€œrecurring activities to increase the ability to fulfil needs and expectations of customer, user, industry-to fulfil needs and expectations of customer, user, industry- sector, society - stated, implied, or obligatoryā€)sector, society - stated, implied, or obligatoryā€)
  • 59. 59 Basic ConcernsBasic Concerns ISO 9001 : 2008ISO 9001 : 2008 ISO 14001 : 2004ISO 14001 : 2004 SA 8000 : 2008SA 8000 : 2008 OHSAS 18001 : 2007OHSAS 18001 : 2007 Available Management System StandardsAvailable Management System Standards Specific ConcernsSpecific Concerns ISO 50001 : 2011ISO 50001 : 2011 ISO 27001 : 2013ISO 27001 : 2013 ISO 31000 : 2009ISO 31000 : 2009 ISO 28000 : 2007ISO 28000 : 2007 ISO 22000 : 2005ISO 22000 : 2005 ISO 22301 : 2012ISO 22301 : 2012 All follow common principles, that of ISO 9001All follow common principles, that of ISO 9001
  • 60. 60 ISO 9001ISO 9001 QMS ISO 14001ISO 14001 EMS OHSAS 18001OHSAS 18001 OHSMS SA 8000SA 8000 SAMS ISO 50001ISO 50001 EnMS ā€¦ā€¦ā€¦ ā€¦ā€¦ā€¦ ā€¦ have been developed as mutually compatible Fully integrated Systemintegrated System is most effective ā€¦ and a necessity ā€¦ forfor Sustainable DevelopmentSustainable Development ā€¦. to enable organizations to integrate Quality,Quality, Environment, OH&S, SA, ā€¦Environment, OH&S, SA, ā€¦ into their management systems
  • 61. 6161 The FutureThe Future One standardOne standard One auditOne audit One certificateOne certificate!! Mario CortopassiMario Cortopassi Past President ISOPast President ISO