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Implementing a Quality Management System

Implementing a Quality Management System. A Financial Perspective By Cecil D. White. World Quality Day Symposium – Nov. 10, 2011. Presentation Topics. 1. Defining the QMS?. 2. The benefits?. 3. The Costs?. 4. Is it worth it?. What is a Quality Management System?. P olicies,

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Implementing a Quality Management System

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  1. Implementing a Quality Management System A Financial Perspective By Cecil D. White World Quality Day Symposium – Nov. 10, 2011

  2. Presentation Topics 1 Defining the QMS? 2 The benefits? 3 The Costs? 4 Is it worth it?

  3. What is a Quality Management System? • Policies, • Processes • Procedures

  4. What is a Quality Management System? • Required for planning and executing business processes • To meet customer requirements • Accredited to International Standards by a Registrar ISO 9001:2008 is an example

  5. A Cultural Transition

  6. A PHILOSOPHY

  7. Change

  8. It Requires ….. • Leadership • Determination • Resilience • Commitment • Engagement

  9. Requires Leadership

  10. RESILIENCE

  11. How to Engage your Employees?

  12. It Requires ….. • Trust • Inspiration • Openness • Training • Incentives

  13. Create a Trusting Environment

  14. Be Inspirational

  15. Be an Excellent Communicator

  16. Create a Learning Evironment

  17. Offer Rewards & Recognition

  18. What are the benefits?

  19. Success Determined by • State of Preparedness • Size of Organization • Complexity of processes

  20. ISO STANDARD 10014:2006 Quality Management Guidelines for realizing financial and economic benefits

  21. A Strategic Choice • Effective Application of ISO 9000 QM Principles = Financial & Economic benefits • Financial benefit results from cost-effective management practices within the organization. • Economic benefit results from improvements in the overall worth and health of the organization.

  22. ISO 9001 Management Principles • Customer Focus • Leadership • People Involvement • Process Approach • Systems Approach • Continual improvement • Factual Approach to Decision Making • Mutually Beneficial Supplier Relationships

  23. Derived Benefits • improved profitability, improved revenues, improved budgetary performance, • reduced costs, improved cash flow, improved return on investment, • increased competitiveness, improved customer retention and loyalty, improved effectiveness of decision making, optimized use of available resources, • heightened employee accountability, improved intellectual capital, optimized, effective and efficient processes, • improved supply chain performance, reduced time to market, • enhanced organizational performance, credibility and sustainability.

  24. Realization of Benefits OUTPUTS INPUTS PROCESS

  25. The Inputs • Customer Focus • Leadership • People Involvement • Process Approach • Systems Approach • Continual improvement • Factual Approach to Decision Making • Mutually Beneficial Supplier Relationships

  26. The Process • Assess requirements, • Plan activities, • Allocate appropriate resources, • Implement continual improvement actions, • Measure results to determine effectiveness,

  27. Output / Result Financial Benefits • improved profitability, • improved revenues, • improved budgetary performance, • reduced costs, • improved cash flow, • improved return on investment,

  28. Increased Productivity

  29. Everyone Wins

  30. Everyone Wins

  31. What are the costs?

  32. Costs Determined by • State of Preparedness • Size of Organization • Complexity of processes

  33. Costs • Registrar • Internal

  34. Registrar • Auditor’s Fees & Expenses • Application Fee • Registration Fee • Initial Assessment • Registration audit • Surveillance Audits • Re-registration

  35. Internal Cost • Sensitization • Gap Analysis • Training • Documentation • Implementation • Internal Audits • Consultant

  36. Beware of The Iceberg Effect Only 10% Visible

  37. Is it worth it?

  38. Implementing ISO 9000:2001 A Case Study

  39. NHF 2003 • Government Agency • Startup company • Provision of benefits • Customer base – 150,000 • Single location • Employees - 34

  40. Steps to ISO 9000 Certification • Hire Quality Management Consultant • Conduct Gap Analysis • Establish Quality Policy • Redefine Business Processes => 3 Core Processes • Individual Benefits • Institutional Benefits • Health Promotions

  41. Steps to ISO 9000 Certification • Company Wide Quality Seminar • Prepare Quality Manual (electronic records) • Quality Policies • Quality Objectives • 21 Procedures • Establish Quality Metrics • Prepare Work Instructions

  42. Steps to ISO 9000 Certification • Quality Training for ALL • Audit Training (34 employees) • Appoint Lead Auditors • Conduct Pre-Assessment Audits (2) • Contract Registrar • ISOQUAR Ltd (2005 – 2009) • NCBJ (2009 – present)

  43. Steps to ISO 9000 Certification • Registration Audit • Audit Training (34 employees) • Conduct Internal Audits • 2 per year • Surveillance Audits • 2 per year • Re-Registration Audits • 2008, 2011

  44. How much does it cost? • First Year – US$ 18,000 • Annual – US$ 5,000

  45. How much does it cost? • First Year – US$ 18,000 • Annual – US$ 5,000

  46. Our Experience • A QMS involves more that HARD measures of quality • SOFT Measures • Teamwork • Empowerment • Management style • Working environment

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