Sharing on Success Factor of ISO/TS16949 Implementation - Study 1

I been auditing ISO/TS16949 since 2003. I observed that the organization are struggling to utilise the system to provide the positive results. A lot of "patch on" in order to maintain the compliance to standard. Why this is happen???

I agreed with the literature review conducted, that main issues is lies on Human Resources.

The main problem is on the TOP MANAGEMENT. Not about commitment as mention in most of the research, but AWARENESS on the standard. This ISO/TS standard is meant for TOP management since there are 2 major clause for them and the title of the standard itself is quality MANAGEMENT system. I observed, if the top management are aware on standard requirements, the system will work smoothly and less patch on since the management already utilised the system in their day to day management.

The second issues is implementor AWARENESS. Seldom, the owner of the process ask WHY the standard required to implement the requirements. All the requirements in the standards have the REASON. Before adopting the requirements, you must always ask or question back WHY, WHY WHY. Once the owner aware on the reason, then they will implement effectively....... not implement because the requirements SAY SO, or the auditor say so.

The results of not aware... the system i.e the procedure is been develop so so so  COMPLICATED until they even know how to implement it. Then 1 or 2 week before the audit, they start to be busy in preparation for the external audit.

In order to succeed in ISO/TS implementation, follow this 3 steps of A - S - U


STEP 1 - AWARED

STEP 2 - SIMPLIFIED the system

STEP 3 - UTILISED the system to become DAY to DAY activities

-CER-

Critical Success Factor of ISO9001 QMS implementation - Literature Review

In the study of Feng et al. (2008), three basic components of implementing the standard were examined: planning for ISO 9001 certification, organizational commitment, and implementing procedures. Organizational performance was measured in two dimensions, namely operational performance (related to organization’s internal operation, such as productivity, product quality, and internal customer satisfaction) and business performance (related to financial and marketing such as sales growth, profitability, and market share). The results showed a positive and significant relationship between the certification practices (implementation, organizational commitment, and planning) and operational performance. However, the relationship between these practices and business performance was found to be positive but not significant. Organizational commitment to certification was found to be most strongly related to operational and business performance.

The findings from the study of Lin and Jang (2008) revealed a comprehensive ISO 9001 model that was supported by four key constructs namely top management support, quality planning, employee involvement, and continuous improvement. These constructs created a series of chain which had a direct positive impact on business performance. It must be noted that these constructs are interdependent, rather than parallel components. Jang and Lin (2008) found that a positive relationship exists between the extent to which companies implement ISO 9001 and their performance.

Amongst the major findings of the study of Terziovski and Power (2007) is that organizations that seek ISO 9001 certification with a proactive approach driven by a continuous improvement strategy are more likely to derive significant business benefits as a result.

According to the findings of Park et al. (2007), the ISO 9001:2000 certified companies driven by internal motives tended to comply with the major requirements better than those driven by customers demand. More specifically, the certified companies motivated by internal reasons actively accomplished documentation requirements, improvement, customer-related processes, provision of resources and responsibility, authority and communication. Even though companies were certified for internal reasons, they were negligent in thoroughly complying with requirements regarding quality policy, management review, control of nonconforming products, and analysis of data. The results of Park et al. (2007) also showed that a company’s size did not significantly affect the major requirements’ conformity, except for monitoring and measurement, with which the large-sized companies achieved compliance better than the small-sized ones. The results also showed that the companies certified for longer operating years easily managed processes with respect to purchasing, infrastructure, customer, work environment and control of monitoring and measuring devices. However, the certified companies established for a longer time seemed to be careless about complying with planning, customer focus, quality policy, management commitment, and analysis of data.

Poksinska et al. (2006) found that the ISO 9001:2000 standard was implemented by standardising the practice (change only the presentation of organizational processes, not the practice) and not by practising the standard (the practice is changed). The requirements were interpreted by the studied organizations in such a way that it was possible to describe the existing practice in the language of the standard. The organizations stated that standardising the practice was the starting point of the work with ISO 9001 and in the future they also want to practise the standard, but the lack of internal motivation stopped the process or made it very stagnant. As a consequence of this approach, many opportunities for improvement were lost. The ISO 9001:2000 was not perceived as a tool for managing organizational processes, but as a tool for keeping and updating documentation. Consequently, this was reflected in the benefits achieved. Despite the external benefits like improved customer relations, the internal benefits most often mentioned were more structure and order in the work and standardisation of organizational processes. One should notice that those benefits resulted from standardising the practice. ISO 9001:2000 as a first step towards TQM. It is generally accepted that the ISO 9001:2000 standard is much more in line with TQM than the previous versions. However, the gap between ISO 9001:2000 and TQM and the way to effectively reach business excellence in a specific business environment are still under question.

The findings from the study of Magd (2006) seem to confirm the assertion that the ISO 9001 certification constitutes a base for, or is at least complementary to TQM. This can be said due to the fact that the researched companies were hoping to implement TQM in the near future, as they wanted to go further than simply maintaining ISO 9001 in order to achieve long-term success. The results from the study of Tari (2005) showed that the certified companies must improve their people orientation and use quality improvement techniques and tools to a higher extent in order to progress towards TQM. He concluded that if the final company’s objective is to maintain the ISO 9001 certificate, it will stay at a basic TQM level and will show no interest towards a wider development of quality management components. However, if the company wishes to go beyond ISO 9001, it must improve all TQM aspects in order to improve its

competitiveness. In practice, the next step could be the use of the EFQM model to define improvement activities.

The basic conclusion drawn from the study of Gotzamani et al. (2007) was that the ISO 9001 certification indicated an improved EFQM enablers’ performance, especially in the category of process management. Even more, it was indicated that the certification motives are particularly significant for the contribution of certification in excellence performance. The contribution of the standard was indicated to be higher for organizations that implement it focusing mainly on true quality improvement of their internal operation and their final products and services. The results also revealed that the efforts after certification should focus on the “soft” elements of TQM (leadership, employee participation and empowerment and customer relations), since these were the ones with the least improvement from certification.

Terziovski and Power (2007) found that the promotion and facilitation of a quality culture can be achieved through ISO 9001 implementation and the quality auditor is an important player in the process. The relationship between quality culture – ISO 9001 certification and improved business performance was moderately strong, especially in SMEs

certified for longer periods. Finally, it was found a weak relationship between

management responsibility and value derived from ISO 9001 certification, especially in SME certified for less than five years.

Adopted from

Evangelos L. Psomas and Christos V. Fotopoulos” A meta analysis of ISO 9001:2000 research – findings and future research proposals” IJQSS pg 128-144

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Difficulties and issues in ISO9001 quality management system implementation – Literature reviewed

The companies are always faced with minor or major difficulties in conforming,  maintaining and improving the quality management system. It is important that organization aware on the issues in order to come out with relevant strategy to minimized issues and problem in implementing effective quality management system according to ISO9001 standards. Here we discussed difficulties and issues identified by researcher in quality management system:

1.  Magd (2008) surveyed, identified top management commitment and the lack of qualified personnel to be the major barriers for the effective implementation.

2.   Zeng et al. (2007) found that the main barriers were the short-sighted goal for “getting certified”, the over-expectation on ISO 9001 standard, the mandatory requirement in some industries and the following others in certification.

3. Prajogo (2008) identified readiness to change is lacking and stronger resistance from professional i.e. technical staff.

4.  In the study of Gotzamani et al. (2007), the surveyed companies confronted with difficulties in dealing with practices such as promoting social and cultural activity of personnel, managing risks related to financial resources, developing business strategy based on information from the external environment and developing long-lasting relations with suppliers.

5.   In the study of van der Wiele et al. (2005), few of the companies regarded the required conversion to the revised ISO 9001:2000 standard as too difficult or costly.

6.  The results from the study of Casadesus and Karapetrovic (2005) seem to support the notion that ISO 9001:2000 faces a number of perhaps insurmountable challenges, because the companies reported higher levels of implementation and maintenance costs with respect to ISO 9001:2000 in comparison with the ISO 9001/2/3:1994 standards.

7. The study of Singh et al. (2006) revealed small points of differences in difficulties faced with ISO 9001 implementation by manufacturing and service companies. The service companies had fewer problems with teamwork, training of personnel, and with conflicting interpretations of the requirements of the standard, in comparison with the manufacturing companies.

8.  In the study of Boiral andRoy (2007), the four groups of companies created according to their motivation (quality enthusiasts, ritual integrators, ISO integrators, and dissidents) did not differ significantly with regard to human resource problems associated with the implementation of the standard. Nevertheless, the “dissidents” experienced more human resource problems, such as a lack of resources and a lack of support from both employees and top management. However, differences among the three other groups were not significant. Bureaucracy problems and opinions about the audit process basically followed the same pattern as the human resource problems. The “dissidents” had clearly different views on these two issues, reporting higher levels of bureaucracy problems and having amore critical viewof the audit process. However, the three other groups were not significantly different on these two aspects.

9.   With regard to effective audit of the standard, Zeng et al. (2007) found that the main problems were the lack of commitment from some certifying bodies, the excessive competition between certifying bodies and the offering of a total packaged service from consultancy to certification by certifying bodies.

1

   Magd (2006) found that the most important problem faced by manufacturing organizations regarding the registration agencies was the high costs associated to the auditing process.

Discussions

There are 2 majors difficulties or issues faced by organization in implementation of ISO9001. The first issues is related with Human, Second issues is related with Cost.

Human resources issues included lack commitment, support, team work, awareness, competency while the cost issues included, the certification, consultancy, beaureaucracy, and documentation.

Next discussions, will discuss on critical factors to successfully implement the ISO9001.

References - as per next post

Adopted from

Evangelos L. Psomas and Christos V. Fotopoulos” A meta analysis of ISO 9001:2000 research – findings and future research proposals” IJQSS pg 128-144

Quality of Life - Reduce crime rate in society

Today is my fifth time I am in Vietnam, but first time landed in Ho Chi Minh City (HCM). Normally before I landed to any city, I will do some research on crime rate and modus of operandi.

From the reading, it is quite clear in city the crime rate will be higher. But there is thousand of motorbikes on the road of HCM, but seldom we heard snatch thief like in Malaysia. Just watch this clip from friend fb, even in cafe, there is snatch thief.

http://www.facebook.com/photo.php?v=10200541029038115
(this link maybe working or not)

But when I am in Tam Ky, or Chu Lai area in Vietnam, the house not even closed (not to mention locked or grilled). The family nicely watch TV without worrying people will enter the house. I still remember my village window or door not even have grilled and it always widely open... that maybe backed in 80s. Why there is different in crime rate today???? MOst of our house have big lock, with CCTV somemore, taller gate and fence... and many other security features

The main reason is different in quality of life especially when there is big gap between super rich and super poor. If the quality of life is relatively or almost the same...

- What you have in your house.. is also almost the same on what we have in our house.
- You have motobike, I also have motobike
- I don't have laptop... you also don't have laptop
- I earn $30 .. you also earn about $30

So what is the need to ROBBED or snatch other people belonging... no REASON isn't it

IF you ask me.. what is the best strategy to BALANCE or at least make the gap smaller between SUPER RICH and SUPER POOR.......

Lot of rich people don't like this..

• We need SUPER EFFICENT TAXING SYSTEM (so that the super rich cannot find the way to run away from tax)
• We need SUPER TAX for RICH people

Do you how much super rich in...
UK, Sweden, Norway... paying the tax??? Go and search Wilkipedia..
They are rich country and the country that doesn't have external debt...

Of course there are other factors... but for tonight.. that is my insight

Good night... and a have a nice, safe and quality day tommorow....

Rgds
-CER-
HCM