Iso 9000 and 9001
OPERATION MANAGEMENT Group 9 ENVIRONMENT MANAGEMENT ISO 14000 AND ISO 9000 Quality: Measure of excellence. Standard: To determine quality we need to set standard so that we can compare quality. Standards form the base to evaluate quality. Why standards matter? Standards ensure desirable characteristics of products and services such as quality, safety, reliability, compatibility, efficiency, environmental friendliness and interchangeability – and at an economical cost. When products, systems, machinery and devices work well and safely, it is often because they meet standards.
And the organization responsible for many thousands of the standards which benefit the world is ISO. What Is ISO? ISO stands for International Organization for Standardization. ISO is the world’s largest developer and publisher of International Standards. ISO is a network of national standards institutes of 162 countries, one member per country, with a Central Secretariat in Geneva, Switzerland, that coordinates the system. Bureau of Indian Standard in collaboration with Quality Council of India is the National Standards Body of India and is a founder member of ISO.
ISO is a non-governmental organization that forms a bridge between the public and private sectors. On the one hand, many of its member institutes are part of the governmental structure of their countries, or are mandated by their government. On the other hand, other members have their roots uniquely in the private sector, having been set up by national partnerships of industry associations (Chamber of Commerce) Therefore, ISO enables a consensus to be reached on solutions that meet both the requirements of business and the broader needs of society. Process certification and not product certification
ISO Certification is process certification and NOT Product certification. Some of the product certifications are ISI, Agmark, QC, etc ISO is a process certification it does not take into consideration the individual quality of the product produce in an organization but the process followed by the organization for making the Product. It is based on the principle of doing things right will result in delivering right product. “Certification to ISO standards does not guarantee any quality of end products and services; rather, it certifies the business organization for a particular process, group or all processes which are being applied. Features of ISO Democratic Every full member of ISO has the right to take part in the development of any standard which it judges to be important to its country’s economy. No matter what the size or strength of that economy, each participating member in ISO has one vote. Each country is on an equal footing to influence the direction of ISO’s work at the strategic level, as well as the technical content of its individual standards. Voluntary ISO standards are voluntary. As a non-governmental organization, ISO has no legal authority to enforce the implementation of its standards.
ISO does not regulate or legislate. However, countries may decide to adopt ISO standards – mainly those concerned with health, safety or the environment – as regulations or refer to them in legislation, for which they provide the technical basis. In addition, although ISO standards are voluntary, they may become a market requirement, as has happened in the case of ISO 9001 quality management systems, or of dimensions of freight containers and bank cards. ISO itself does not regulate or legislate. Market-driven ISO only develops standards for which there is a market requirement.
The work is mainly carried out by experts from the industrial, technical and business sectors which have asked for the standards, and which subsequently put them to use. Consensus ISO standards are based on international consensus among the experts in the field. Consensus, like technology, evolves and ISO takes account both of evolving technology and of evolving interests by requiring a periodic review of its standards at least every five years to decide whether they should be maintained, updated or withdrawn.
Globally relevant ISO standards are technical agreements which provide the framework for compatible technology worldwide. They are designed to be globally relevant – useful everywhere in the world. ISO 9000 implementation Steps a) Reading Of Relevant Standards By Top Management: Quality is the responsibility of the top management. . Every clause has to be re read by the management, debated preferably under the guidance of an expert in ISO 9000,and should arrive at a proper aspect required to meet the standard.
Only then a conscious decision can be taken to implement system with full commitment from the top management and their continuous support would be possible b) Preparation And Announcement Of All Quality Policy And Objective: Quality policy conveys to the employees/suppliers/customers the company’s quality policy and intentions the essentials are -policy should incorporate company’s quality intentions and directions to the extent they can be achieved -quality policy should be evolved by the CEO of the company in consultation with the senior managers reporting to him and should be signed by him and the top management -quality policy should be evolved by keeping the customer in the focus c) Appointment Of The Management Representative (MR): MR must be selected based on the following parameters -MR may be selected among the members of the top management reporting to the hief executive -since MR is required to put considerable time up to certification, he should not be t he person holding direct responsibility of production/marketing. -MR should have knowledge of working of all departments and functions d) Selection Of The Core Group For Implementation: They are the persons of second level in each department, who should prepare the necessary documentation and operate the system in active cooperation with their departmental heads.. These persons selected should extent their thinking process beyond their departmental barriers and should think of the interests of the company as a whole. e) Training Of All Employees In Quality System Assurance or the employees to have a general awareness on ISO 9000, the MR ,departmental heads and the core group members should give training to all the employees in batches of 15-20. specific training if needed should be given. The data of these training records should be maintained f)Preparation Of Quality Assurance Manual And Relevant Departmental Procedures And Work Instructions: Work on implementation of the departmental manuals should begin with collection of existing manuals, procedures and formats. The MR, the core member team and departmental heads should compare the existing standards with the standard ones and correct them wherever deficiency is found. This corrected format and manual, procedures and formats is presented to the CEO. g) Implementation Of Procedures And Work Instructions
Once the quality manual is finalised, the employees of all the departments are made aware of the new procedures standards by their departmental heads. All their difficulties are then discussed and accordingly work instructions are prepared. Periodic discussions are held to review the progress the progress of implementation and resolve difficulties if any h)Selection And Training Of Internal Auditors: the internal auditors have to be given training which has to be conducted by a lead assessor trined by CEI/BATALAS UK. core group members generally prove to be good auditors i) Internal Quality Audits QA For Compliance: Internal audits are conducted in two stages adequacy audits are intended to recertify whether each element of the documented system meets the requirements of the standards and identify any gaps if any -compliance audit is conducted to check whether the operations actually conform to the draft documented system, this type of audit can easily show whether there is any break down of the new procure j) Rectification Of Nonconformities: once the review is completed all nonconformities are taken up by the CEO and the core team, reasons for such nonconformities are found out and solutions for improving them are also found out besides this target dates for solving such errors are also decided k) Stabilising System:
Each department is expected to perform as per the parameters set up by the ISO 9000 standards; for this purpose all gaps are removed and nonconformities rectified. Further internal audits may be confirmed to maintain system stability. l) Publication Of Final Document System: Final draft of the manual, procedures and formats can be released once the system has been stabilised for a period of more than 6 months as evidenced from internal audit reports and management reviews m) Pre Audit By Certifying Agency: External audit by the certifying agency is planned once the system has been stabilised. a group of certified auditors accredited to ISO 9000/9001 are invited for audit purpose. It may also involve foreign exchange payment to the certifying agency.
This type of audit can throw up some more nonconformity n) Rectification Of Nonconformities, Internal Quality Audit And Management Review: The nonconformities identified during the pre audit required to be solved and completion dates for such purpose has to be decided and informed to the certifying body o) Final Audit By The Certifying Agency: Depending upon the nature of nonconformities the agency may issue a certificate immediately or after some time. If the natures of nonconformities are not so serious then the company is expected to solve them immediately. If the nature of such discrepancies indicate system failure then the company is given time to correct them prior to the next assessment p) Issue Of Certificate: Certificate by the agency is issued within six weeks of completion the final audit. The certification is valid for a period of 3 years . he surveillance audit are expected to be conducted in every 6 months, the certificate may be cancelled if there is any breakdown in the procedure and many discrepancies are noticed q) Sustaining And Improving The System: Quality standards should never be static as customer preferences keeps on changing, so accordingly quality goals must be changed . thus getting ISO certificate is only one step towards quality improvement ,sustaining the system is another important aspect. ENVIRONMENTAL MANAGEMENT Environmental management is not, as the phrase could suggest the management of the environment as such, but rather the management of interaction by the modern human societies with, and impact upon the environment.
Environmental management is not the conservation of the environment solely for the environment’s sake, but rather the conservation of the environment for humankind’s sake. It involves the management of all components of the bio-physical environment, both living (biotic) and non-living (abiotic). This is due to the interconnection and network of relationships amongst all living species and their habitats. The environment also involves the relationships of the human environment such as the social, cultural and economic environment with the bio-physical environment. As with all management functions, effective management tools, standards and systems are required.
An ‘environmental management standard or system or protocol attempts to reduce environmental impact as measured by some objective criteria. The ISO 14001 standard is the most widely used standard for environmental risk management and is closely aligned to the European Eco-Management and Audit Scheme (EMAS). Benefits Of Environmental Management Systems Cost Savings Successful environmental management will evaluate all opportunities for cost savings, the most common benefits derive from a review of resource/ energy utilization and its efficiency, forcing full consideration of alternative energy sources and their cost effectiveness. The other primary element will be minimization of waste and cost of disposal. Customer Requirements
The range and diversity of customer needs and expectations is constantly growing with many customers increasing preference for use of suppliers and subcontractors who can demonstrate that they are good environmental citizens. No customer would want to risk a tarnished reputation from the poor environmental performance of their suppliers and sub-contractors. Corporate Image The ability to demonstrate a responsible environmental attitude can dramatically improve the image of the corporation fostering better relations with the company’s stake holders. Even more importantly, adverse publicity about the organizations environmental performance is always highly damaging. Legislation
The scope and severity of environmental legislation is ever increasing. A management system that ensures recognition of the requirements and compliance with them will ensure that fines are avoided and staff are not imprisoned in addition to avoidance of the publicity that inevitably follows an environmental prosecution. Investment The investors are increasingly moving to green portfolios, and it is interesting that the financial performance of these portfolios has been good in comparison to more traditional investment. In seeking additional investment for the organization it is sensible to ensure the widest scope and this is only aided by a demonstrably sound environmental performance. Insurance
Insurance companies are fully aware of the risk to their policies from poor environmental performance of the insured. Companies with a sound and effective environmental management system are able to demonstrate that they pose less risk to the insurance company and creates a negotiating tool for lower premiums. Some insurance companies now require an environmental audit of the company prior to agreeing cover. Marketing Opportunities All companies seeking growth obviously want their product and services attractive to a widest possible market. Poor environmental performance will encourage many potential customers to decide not to buy from the company, good environmental performance will ensure continuation of the widest possible market. ISO 14000 Introduction:
After the success of the ISO9000 series of quality standards, the International Standards Organization published a comprehensive set of standards for environmental management. This series of standards is designed to cover the whole area of environmental issues for organizations in the global marketplace. Why Have These Standards? A set of international standards brings a world-wide focus to the environment, encouraging a cleaner, safer, healthier world for us all. The existence of the standards allows organizations to focus on environmental efforts against internationally accepted criteria. At present many countries and regional groupings are generating their own requirements for environmental issues and these vary between the groups.
A single standard will ensure that there are no conflicts between regional interpretations of good environmental practice. The fact that companies may need environmental management certification to compete in the global marketplace could easily overshadow all ethical reasons for environmental management. Within Europe, many organizations gained ISO9000 Registration primarily to meet growing demands from customers. ISO 9000 quality registration has become necessary to do business in many areas of commerce. Similarly, the ISO 14000 management system registration may become the primary requirement for doing business in many regions or industries.
Who Do The Standards Apply To? The standards apply to all types and sizes of organizations and are designed to encompass diverse geographical, cultural and social conditions. For ISO14001, except for committing to continual improvement and compliance with applicable legislation and regulations, the standard does not establish absolute requirements for environmental performance. Many organizations, engaged in similar activities, may have widely different environmental management systems and performance, and may all comply with ISO14001. What Do The Standards Apply To? This is primarily for the company to decide, and to clearly document the extent of coverage.
However, limiting coverage to a small [inconsequential] area may provide competitors with an ideal marketing opportunity! There does not appear to be a limit to the coverage of the environmental management system in that it can include the organization’s products, services, activities, operations, facilities, transportation, etc. From a slightly different viewpoint, all of the elements in the previous sentence should be considered for environmental impact resulting from current practices, past practices and future practices, and should further be reviewed for their impact under normal, abnormal and emergency conditions. WHAT DOES ISO 14000 SERIES COVER? StandardTitle / Description 4000Environmental Management Principles, Systems and Supporting Techniques 14001 Environmental Management Systems – Specification with Guidance for Use 14010 Guidelines for Environmental Auditing – General Principles of Environmental Auditing 14011Guidelines for Environmental Auditing – Audit Procedures-Part 1: Auditing of Environmental Management Systems 14012Guidelines for Environmental Auditing – Qualification Criteria for Environmental Auditors 14013/15Guidelines for Environmental Auditing – Audit Programmes, Reviews & Assessments 14020/23/24Environmental Labeling – Practitioner Programs – Guiding Principles, Practices and Certification Procedures of Multiple Criteria Programs 14031/32Guidelines on Environmental Performance Evaluation 14040/43Life Cycle Assessment General Principles and Practices 14050Glossary 14060Inclusion of Environmental Aspects in Product Standards Case Study : ISO 9000 Laser Co. is a high-tech manufacturer, employing 150 people. The organisation has three main functions/divisions: manufacturing, engineering and sales.
Engineering had a pattern of high staff turnover and it was felt that the ‘wheel was continually being reinvented’ – the organisation did not retain ‘how we did it last time’. Another influence was that bigger customers were starting to ‘make noises’ about the need for a quality system. They took advice from a consultant. It was also found to be misleading – the consultant told them that traceability was a requirement of the Standard. They agonised over this for six months. Eventually, re-reading the Standard, they discovered that traceability was only important if the customer required it; theirs did not. They soon learned to work on their own interpretation of the Standard and not rely on the consultant. Manufacturing found implementation to be very easy.
The personnel in manufacturing were all used to working in a structured way; they used work tickets, time sheets and had a structured management information system (MRP). The focus in manufacturing was on writing down what they did. In Engineering, implementation was more difficult. The prime purpose of introducing ISO 9000 into Engineering was to establish a unified design process across the various groups. There was, prior to this, no predefined method. Furthermore the personnel in these groups had previously worked in fairly ill-defined environments. To a large extent this meant starting the implementation from scratch. There was, for example, an engineering change process and ISO 9000 implementation forced a review if it.
People learned just why the engineering change process had to be so involved – there were so many consequences stemming from engineering changes. With effort, implementation produced ‘remarkable’ changes in engineering, mostly as a consequence of introducing procedures which would minimise the ‘reinventing of wheels’. Consistent with their desire to minimise bureaucracy, the implementation team dumped their procedures manuals in favour of flow-charts. It kept the processes in focus in a simple and meaningful way. The whole effort took two and a half years. Laser Co claims reductions in time, reductions in errors and reductions in waste. The managers argued that ISO 9000 registration produced benefits.
Processes were more clearly defined and that resulted in less waste or more efficiency. They had recognised and sought to avoid unnecessary bureaucracy, and even went a further step away from the norm by getting rid of procedures, using flow-charts to provide clarity of focus. Even more disturbing is that this process took two years. A company of only 150 people could make a change to improve economic performance in months, not years. ISO 9000 has decreased the probability that change will be possible in this case. Case Study: ISO 14000 Since the 1960s, ALL(Ashok Leyland Ltd. ) had shown strong commitment towards eco-friendly manufacturing practices.
It had replaced the potentially harmful shot blasting technique used for surface cleaning treatment of rough materials and heat treatment scaling at the Ennore unit with the sand blasting technique. Heavy-duty dust collector machines were placed to collect the blasting dust from the machines, and this dust was sent to other companies for making firecrackers. In 1980, ALL stopped using harmful chemicals like sodium cyanide by modifying the processes involved. It thus eliminated the production of poisonous waste. ALL started a round-the-year awareness program for reducing emissions from engines by conducting pollution checks. Action programs were held at operators’ meets and campaigns. It also launched a mobile emission clinic that operated on highways and at entry points to the national capital, New Delhi.
This clinic carried out tests for emission levels, recommended remedies and offered tips on maintenance and care of the vehicle. ALL constantly reviewed its manufacturing processes and frequently modified/replaced the existing manufacturing processes with eco-friendly processes. The effluent treatment process at ALL aimed at treating the waste generated to produce usable by-products and safe disposal of unused water. ALL established effluent treatment plants at all its manufacturing units. At the Ennore plant, around 1. 28 million litres of treated water was discharged everyday. Effluent plants at Hosur I were ranked on par with the most modern plants. These plants could perform primary, secondary and tertiary treatment operations.
At the Ennore plant, a control circuit modification was done on 265 machine tools that were used to switch on a coolant motor without switching on any other motor. This enabled energy conservation, as no other motors were required for running the coolant on holidays. Replacement of chemical fertilizers with the manure extracted from sludge resulted in savings of Rs 1,65,000 per annum for the Ennore plant. According to company sources, on an average, around 250,000 litres of recycled water was pumped into the garden and other greening initiatives, saving the company Rs 15 million per annum. The company’s energy conservation efforts resulted in reduction in energy required for heat treatment by 70%. As a result of all these initiatives, ALL reportedly saved around Rs 70 million per year.