c_white quality management_a financial perspective[1]
DESCRIPTION
Document & PPT helpful to ISO9001TRANSCRIPT
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Implementing a Quality Management System
World Quality Day Symposium – Nov. 10, 2011
A Financial PerspectiveBy
Cecil D. White
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Defining the QMS?
The benefits?
The Costs?
Is it worth it?
Presentation Topics1
2
4
3
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What is a Quality Management System?
Policies, ProcessesProcedures
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What is a Quality Management System?
Required for planning and executing business processes
To meet customer requirements
Accredited to International Standards
ISO 9001:2008 is an example
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A Cultural Transition
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A PHILOSOPHY
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Change
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It Requires …..1. Leadership2. Determination3. Resilience4. Commitment5. Engagement
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Requires Leadership
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RESILIENCE
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How to Engage your Employees?
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It Requires …..1. Trust2. Inspiration3. Openness4. Training5. Incentives
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Create a Trusting Environment
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Be Inspirational
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Be an Excellent Communicator
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Create a Learning Evironment
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Offer Rewards & Recognition
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What are the benefits?
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State of PreparednessSize of OrganizationComplexity of processes
Success Determined by
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ISO STANDARD10014:2006
Quality Management Guidelines for
realizing financial and economic benefits
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A Strategic ChoiceEffective 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.
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ISO 9001 Management Principles
1. Customer Focus
2. Leadership
3. People Involvement
4. Process Approach
5. Systems Approach
6. Continual improvement
7. Factual Approach to Decision Making
8. Mutually Beneficial Supplier Relationships
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Derived Benefitsimproved 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.
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Realization of Benefits
INPUTS
OUTPUTSPROCE
SS
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The Inputs1. Customer Focus
2. Leadership
3. People Involvement
4. Process Approach
5. Systems Approach
6. Continual improvement
7. Factual Approach to Decision Making
8. Mutually Beneficial Supplier Relationships
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The ProcessAssess requirements, Plan activities, Allocate appropriate resources, Implement continual improvement
actions,Measure results to determine
effectiveness,
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Financial Benefitsimproved profitability,improved revenues, improved budgetary performance,reduced costs, improved cash flow, improved return on investment,
Output / Result
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Increased Productivity
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Everyone Wins
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Everyone Wins
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What are the costs?
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State of PreparednessSize of OrganizationComplexity of processes
Costs Determined by
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Costs
1. Registrar2. Internal
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Registrar1. Auditor’s Fees & Expenses
2. Application Fee
3. Registration Fee
4. Initial Assessment
5. Registration audit
6. Surveillance Audits
7. Re-registration
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Internal Cost1. Sensitization
2. Gap Analysis
3. Training
4. Documentation
5. Implementation
6. Internal Audits
7. Consultant
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Beware of
The Iceber
gEffect
Only 10%
Visible
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Is it worth it?
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Implementing ISO 9000:2001
A Case Study
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NHF 2003Government AgencyStartup companyProvision of benefitsCustomer base – 150,000Single locationEmployees - 34
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Steps to ISO 9000 Certification
1. Hire Quality Management Consultant2. Conduct Gap Analysis3. Establish Quality Policy4. Redefine Business Processes
=> 3 Core Processes Individual Benefits Institutional BenefitsHealth Promotions
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5. Company Wide Quality Seminar6. Prepare Quality Manual (electronic records)
5. Quality Policies6. Quality Objectives
5. 21 Procedures
7. Establish Quality Metrics8. Prepare Work Instructions
Steps to ISO 9000 Certification
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9. Quality Training for ALL9. Audit Training (34 employees)
10.Appoint Lead Auditors11.Conduct Pre-Assessment Audits (2)12.Contract Registrar
ISOQUAR Ltd (2005 – 2009) NCBJ (2009 – present)
Steps to ISO 9000 Certification
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13.Registration Audit13.Audit Training (34 employees)
14.Conduct Internal Audits13.2 per year
15.Surveillance Audits13.2 per year
16.Re-Registration Audits 2008, 2011
Steps to ISO 9000 Certification
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How much does it cost?
•First Year – US$ 18,000
•Annual – US$ 5,000
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How much does it cost?
•First Year – US$ 18,000
•Annual – US$ 5,000
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Our ExperienceA QMS involves more that
HARD measures of qualitySOFT Measures
TeamworkEmpowermentManagement styleWorking environment
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Lessons Learnt1.Shift in Management Philosophy
2.Culture of Continuous Improvement
3.Training is Key
4.Effective Communications
5.Recognition of Achievements
6.Results in Improved Productivity
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NHF UPDATEExpansion through MergerMature organizationProvision of benefits, Supply
Chain, Retail PharmacyCustomer base – 450,000Multiple LocationsEmployees - 250
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THE END