IMS Case Study Annex

THE INTEGRATED USE OF MANAGEMENT SYSTEM STANDARDS CASE STUDY ANNEX These case studies are reproduced as supplied by the organizations.

The case studies that support and shape the content of this book are drawn from organizations that are: — Profit and not-for-profit — Large, medium or small — From a number of continents — Of various maturities — In service, manufacturing, construction and other industries — Local, regional and global — At different stages in the integrated use of management system standards. Individually, each case study offers an insight into the integration process. Collectively, the case studies provide a practical support for the central message of this book, namely that there is no unique formula for success in the integrative application of management system standards. As the case studies so clearly demonstrate, the drivers for action, objectives established to achieve, starting points, routes taken, tools used, impediments encountered, lessons learned, and benefits derived are diverse as the organizations themselves. To facilitate their use, each case study has been summarized and described using a common format. Source

Industry

Size

Region / Country

MSS Used

Aleris Recycling

Aluminium Recycling and Manufacturer

Medium

Germany/ Europe

TS 16949, ISO 9001, ISO 14001, OHSAS 18001 and EMAS II

Brenntag

Chemical

Large

North America / Canada

ISO 9001 ISO 14001

CETIB (non-profit)

Service

Small

Europe / Spain

ISO 9001 ISO 14001

Codelco

Engineering

Medium

South America / Chile

ISO 14001 ISO 9001

CPAC

Automotive

Large

Worldwide

ISO TS 16949 ISO 14001

Ferrovial

Construction

Large

Europe / Spain

The integrated use of management system standards - Case study annex

ISO 9001 ISO 14001

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Source

Industry

Size

Region / Country

MSS Used

Formulaciones Químicas S.A.

Chemical

Medium

Central America / Costa Rica

ISO 9001 ISO 14001

General Motors Corp. – Organizational Unit

Automotive

Large

Worldwide

QS-9000 ISO TS 16949 ISO 14001

GKN Driveline

Automotive

Large

Europe / UK

Hijos de Rivera

Beverages

Small

Europe / Spain

IBM

Information Technology

Large

Worldwide

Mandarin Oriental Hotel

Hotel / Service

Medium

Asia Pacific / Malaysia

MLPC INTERNATIONAL

Chemical

Small

Europe / France

Rafael

Defense

Medium

Middle East / Israel

SENER

Engineering

Small

Europe / Spain


ISO TS 16949 ISO 14001 OHSAS 18001 ISO 9001 ISO 14001 ISO 22000 ISO 9001 ISO 14001 ISO TS 16949 ISO 13485 ISO 9001 ISO 14001 OHSAS 18001 ISO 9001 ISO 14001 OHSAS 18001 ISO 9001 ISO 14001 OHSAS 18001 AS9100 ISO 90003 ISO 9001 ISO 14001 EN 9100

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Aleris Recycling Introduction Who are we, market, business content

— Leading aluminium/magnesium recycler and manufacturer of aluminium cast and wrought alloys in Europe — Headquarters: Grevenbroich — Employees: 450 — Turnover: 260 Mill. € — Capacity: 170.000 t cast alloys ; 100.000 t wrought alloys — Facilities: Erftwerk, Grevenbroich Innwerk, Toeging Neckarwerk, Deizisau Aleris Recycling (UK) Ltd., Swansea Aleris Recycling B.V., Delfzijl — Certification: TS 16949, ISO 9001, ISO 14001, OHSAS 18001 and EMAS II

Customer/stake holder requirements (what were the drivers for action)

As a supplier to the automotive industry it is required to have a quality and a environmental management system. Customers demand products which live up to requirements and which are derived from secure, validated processes. Legislators and authorities set out standard values, conditions and other guidelines for products and production. All this means numerous and sometimes contradictory requirements that call for organizational as well as technical measures. Until now individual management systems (e.g. for quality assurance or environmentally sound practice) that provide information on a company’s organization and operational procedures, in documented, and usually certified form, have been implemented to meet these requirements. However, because of the high volume of work created by legal and normative policies, and because of limited manpower resources, setting up and maintaining several parallel systems is just too taxing, especially for medium-sized companies.

Getting started and further steps in the development of an integration plan including milestones – what was the project plan? (What, when and how including background)

Following the decision to introduce an integrated management system (IMS), a new position was created for a person responsible for the central management system, whose principle task would initially be to develop and implement the IMS. To get the ball rolling with the project a situation review for an integrated process management system was made, with external support from the consulting firm Conex. Building on the outcomes of this concept and the process model it describes (Figure 1), a management system called ProMys (Process-integrated management-System) was to ensue, which would meet the following requirements: — Integrating the available management systems for quality and environment together with the continuous improvement process and health & safety. — Achieving the conditions necessary for further growth by means of process standardization. — Capitalizing on synergy effects when maintaining and updating the system. — Tightening up operational procedures and structures. — Creating a user-friendly IT solution.


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— Cutting down the effort required for certification.

Figure 1: Process Model ProMys The management team consisted of the person responsible for the management system, who acted as project leader, the external consultant who acted as a protagonist for professional input and persons responsible for environment, work safety and quality assurance. Main steps of implementation

The team drew up drafts for a company handbook, system descriptions and guidelines. In this way the documentation available for both production locations, including location-specific particularities (e.g. dictated by different production facilities) were unified, and where possible summarized. This preliminary work meant valuable time could be saved in the workshops that followed for employees affected by the respective processes being developed. In workshops the submissions compiled by the project team were honed and checked for accuracy and completeness. In doing this, procedures were reduced to their essential steps and interface problems which occurred were eliminated. This often entailed organizational changes too. Manuals and related documentation were revised, and where necessary replaced with new documents. The new Company Handbook created in this process essentially consists of company policy and higher-level objectives, a description of the organizational structure and a fundamental description of the ‘ProMys’ management system based on the process models described. In this way a tailor-made structure and layout could be chosen for the Company Handbook, taking into consideration the normative requirements stipulated for its contents. (Figure 2)


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Figure 2: Main Steps The implementation was based entirely on standard software such as the Microsoft Office applications and Acrobat Writer. Building on pre-existing IT-supported document templates for processes, guidelines, operating instructions and brief instructions as well as forms, a uniform documentation was developed which is binding for all production locations, and which can be transferred to new locations in the future. The finished documents were approved by the person responsible for the process in question, then made available to all staff over the intranet. This IT solution offers sufficient possibilities to link documents with each other and to safeguard against manipulation or accidental changes. Process sequences were created with Visio, a graphics programme that among other things offers the possibility of analyzing and optimizing the process. Then, using Acrobat Writer, the documents created with the Office applications were converted into a form which could be read at all workstations with Acrobat Reader, and linked to each other with the link function. Besides that, all documents were write protected by a password on Acrobat Writer, and had a digital signature for clear identification. To round off the management system, going beyond the system documentation, the company was provided with a uniform recordkeeping and overall documentation system ‚InfoDok‘. (Figure 3)

Figure 3: IT Solution


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Assessment, review and addressing obstacles

While working on existing documents it often became apparent that the regulations which had been formed over the years were not coordinated and often appeared as a redundancy in several different documents. In addition, a direct relation to operational processes was often lacking – a consequence of the element-based structural orientation which had been pursued up until 2000. The challenge was to find the least costly IT solution, which at the same time wouldn’t require special training.

Perceived v. actual benefits

With the IT solution and the integration of the management systems which had until now been separate, a development which was very well received by employees, the expectations for this exercise were, to a great extent, already achieved (Figure 4) — Fast access company-wide to management system regulations and guidelines — Decrease in volume of documentation by about 20% — Reduction of work instructions from 269 to 115 — Facilitation of certification process through co-ordinated audits — Identification of management and staff with documented processes — Employees’ understanding of the reciprocal effects of processes Figure 4. Benefits A further aspect was the on-site implementation. Management and employees were already as deeply involved as possible with the drawing up and fine-tuning of system documents. Additional training specific to the workplace supplied knowledge of the objective, structure and proper handling of ProMys. Training and information was provided by qualified in-house staff, so that questions could continue to be answered or problems with the application solved even after the training sessions. Involving the senior staff in these communications measures contributed to establishing ProMys even more securely.

Continual improvement, lessons learned, the way forward or future direction

— Integration of Risk Management and administrative Management Processes — Participation on national and international Competitions — Implementing of ProMys in all existing and new plants


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Brenntag Canada Inc. Introduction Who are we, market, business content

Brenntag Canada, a member of the Brenntag group of Companies, is a leading distributor of specialty and commodity chemicals, plastics, processing aids and raw materials to major Canadian resource and manufacturing industries. We are a major formulator of specialty chemicals for oil and gas producers and refiners, and a producer of colour concentrates for thermoplastics processing industry. We operate from nineteen warehousing and packaging facilities located in key business centres from coast to coast, utilizing selected logistics partners and representing the foremost chemical and plastics producers from around the world. We are uniquely positioned to provide our customers with superior service on a broad range of quality products, and unique value-added supply chain management solutions. In 2000 Brenntag AG purchased Holland Chemical International to become the world’s largest chemical distributor. Brenntag is now the market leader in Central, Eastern and Northern Europe, the market leader in South and Latin America and holds a strong number three position in North America. Brenntag brings world class competencies in e-commerce, information technology, global procurement, international logistics and single sourcing services to our already extensive Canadian service capabilities. A CENTURY OF PARTNERSHIP WITH CANADIAN INDUSTRY Brenntag Canada was incorporated in June 1897 as Standard Chemical Ltd. to exploit owner Arthur Peuchen’s discovery of a method to extract acetic acid, acetone and wood alcohol from scrap hardwood. Peuchen was one of the few survivors on the White Star Line’s doomed ship the RMS Titanic. Through its rich history Brenntag Canada has changed ownership several times reflecting Arthur Peuchen’s instinct for survival and entrepreneur leadership. Over the years, several owners have been consumers of chemicals, including Domtar, one of the world’s leading producers of pulp and paper products, while others, including PPG and ICI, were chemical manufacturers. In 1990 Stanchem, as it became known, was acquired by Holland Chemical International, and ended up where it should be and is today, and in doing so has become an essential link between industrial chemical consumers and chemical manufacturers. With Brenntag's acquisition of Holland Chemical International in 2000, we became a member of the world’s largest chemical distribution company. Many of the key industry and specialty market areas which have been served in the Canadian marketplace over the years, include; INDUSTRIAL CHEMICALS Proudly representing the world’s leading chemical producers, Brenntag Canada offers a broad range of chemicals and services to all markets coast to coast. With packaged goods warehouses and bulk storage facilities strategically located across the country we offer next day delivery. Our regional blending and packaging plants ensure that we deliver the exact amount you require in the most economical package. We have products for end uses from aerosol packaging through chemical processing, pulp and paper to water treatment. For a list of our major


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markets click on Markets Served. The services we offer include custom blending and packaging, remote tank monitoring systems, inventory management and just in time deliveries. OIL & GAS Brenntag Canada has provided exceptional technology, products and service to the Canadian Oil and Gas Industry for over 40 years. Our close relationship to sister Brenntag companies in the U.S.A, South America and Europe enables us to provide a broad range of chemical products and technical support to meet our customer needs. Brenntag Canada provides chemical technology and service from the customer’s well through the gathering system to the processing facilities. We also provide products and technical support services to oil refineries and petro-chemical plants. At Brenntag Canada, we work with our customers to reduce total life cycle production costs. We focus on customer product cost, performance chemistry, lab analysis programs, logistics and administrative expenses. Optimizing the customer’s chemical program reduces the volume of chemicals required, increases production and reduces maintenance and repair costs associated with a nonoptimized chemical program. Additional savings and efficiencies can be gained through Brenntag Canada's streamlined transportation and distribution network. Our world-class business system offers all the benefits and opportunities of eCommerce. PLASTICS & COLOUR CONCENTRATES Plastics and colour concentrates is one of the youngest businesses within Brenntag Canada, but also one of the most dynamic and fastest growing areas within our organization.


MARKETS SERVED Brenntag Canada serves all industrial major chemical and related markets in Canada. We offer the complete range of high-quality chemicals. Brenntag supplies complete product lines of industrial and specialty chemicals within the framework of our core business. In addition to this, the company also maintains and operates efficient distribution centers to ensure that your orders are delivered promptly, as well as offering advice on application technology. The markets served include; — — — — — — — — — — — — — —

Food and Beverage Pulp and Paper Coatings, Adhesives & Sealants Water Treatment Textiles Pharmaceuticals Detergents and Cleaners Packaging Transportation Mining Personal Care Graphic Arts Chemical Processing Metal Treating & Fabrication


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— Agriculture Commitment to ISO Standards & Codes of Practice Brenntag Canada Inc. is totally committed to providing quality products and superior service to our Customers; we are also committed to the protection of the environment, as well as assuring the health and safety of our employees, suppliers, contractors, and the community in which we all live and work. In a proactive effort to better manage the various aspects of our business, to demonstrate our corporate values, our commitment to quality and continual improvement, and our dedication to care for our environment, we are dedicated to the following initiatives: — ISO 9001:2000 Quality Management System (QMS). — ISO 14001:2004 Environmental Management System (EMS). — Canadian Association of Chemical Distributors – Responsible Distribution Code of Practices. Situational Analysis - Evolution of Management Systems Although the organization had been committed to both ISO standards and the Responsible Distribution Code of Practice for close to 15 years - something was missing. In 1999, the documented systems of the day, to support registrations and verifications were manual, cumbersome, outdated and ineffective. Technologies had advanced in many areas, and the organization was either not adopting them, or under-utilizing these advances. Efficiently and effectiveness were lacking in many areas. The organization seemed very ‘internally-focused.’ Management recognized there was a need to change, and refocusing and aligning the organization to the following Mission and guiding Principles, was the starting point. The system and executive management’s position (leadership response)

Our Mission We will be the quality provider of chemicals, plastics and value added services to customers in our chosen markets and be the preferred partner for our suppliers. Guiding Principles We will: — create superior value through in-depth market knowledge, outstanding customer service and the innovative application of technology; — maintain a working environment for our employees that recognizes individual contribution and provides opportunities for personal growth; — pursue continuous improvement in all aspects of our business; — operate in a safe, clean and environmentally responsible manner; — increase value for our shareholders by growing the company on a sound financial basis; — conduct our affairs with integrity. In 2000, with the above mission in mind, Brenntag embarked on planning the change initiative. By providing our customers with superior value, we will grow our customer base and as a result, attract and retain high quality suppliers, and customers. By increasing our sales revenue and enhancing our operating efficiencies, we can continually improve our profitability. In early 2001, with this as our vision, the Canadian management group determined how they could become the clearly superior, customer focused, continually improving, efficient and profitable organization in the view of our shareholders, suppliers, customers and work associates.


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In 2000, prior to embarking on the integration initiative, core management representation from across the Brenntag Canadian organization was brought together for two-(2) day Management Clinic and Transition Workshop sessions. These sessions focused on management principles, Brenntag business values, alignment of the ISO 9001 standard with the management approach, teambuilding, problem solving, and process-based improvement strategies. During these sessions, a number of brainstorming activities were performed to define the ‘current, as-is’ situation within each level of our organization. The results of which are summarized in the points below. Issues & Opportunities Identified – Corporate were identified as follows: — Distributed Approach: − Common Processes Lacking. − No National Standards or Consistency; — Corporate Functions Not Part of Quality/Environmental System: − Lack of Involvement, Knowledge and Awareness. − Communication Weaknesses. − Delegation to the Regions (mostly ISO). − Plant & Operations Focused. − No Corporate Quality Review Process. — Internally Focused Approach rather than a Customer Focused Approach. Issues & Opportunities Identified - Region were identified as follows: — Common Processes between Regions: − No Standards or Consistency. − Disjointed – Lack of Common Culture. − Inconsistent Complaint or NC/CA Resolution & Improvement Process. — Procedure Driven – Not Process Driven: − Documentation Overkill – Complex, Bureaucratic, Inflexible. — Best Practices – Not Shared or Communicated. — Perception of Benefit or Value-Added Lacking. — Inconsistent Documentation of Customer Requirements. — Customer Satisfaction Processes No Means of Determining or Measuring. − Customer Dissatisfaction is the Only Measure and Focus. — Reactive: − Corrective Rather than Preventive. − Weak Problem Solving. — Supplier Focus – Inconsistent or Weak. — Campaign Driven – For the Certificate on the Wall: − Doing Things to Satisfy the ‘Auditor’. Getting started and further steps in the development of an integration plan including milestones – what was the project plan? (What, when and how

Transition Planning Upon concluding the workshop sessions, planning and implementation activities were initiated, including the following steps and activities; — Enhance the Brenntag culture through the introduction and use of Management Systems Principles, aimed at continually improving the organizations performance over the long term by focusing on Customers while addressing the needs of all — Management System Principle(s) to become the comprehensive and fundamental role and belief for leading and operating our organization, including:


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including background) GRAPHICS

− − − − − − − −

Customer Focused Organization. Leadership. Involvement of People. Process Approach. Systems Approach to Management. Continual Improvement. Factual Approach to Decision Making. Mutually Beneficial Supplier Relationships.

Integration of Commonality Through the Organization The key steps in the transition and integration approach included: — Confirm Management Principles for Brenntag. — Establish Common Language. — Define the Scope & Inter-relationship between Processes for ALL Brenntag – Develop the Road ‘Map’. — Specify / Establish ‘High-Level’ Objectives: − Customer Focus. − Consistent Processes. − Consistent Practices/Procedures/Tools based on Best Practices. — Support of Functional Teams to Develop Commonality. Corporate Roles and Responsibilities were identified to guide the transition and integration approach including: — Provide Leadership: − Create Our Corporate Vision. − Set Our Direction. − Establish the Communication Plan. − Support & Champion the Process. − Willing to Change & Act as ‘Agents of Change’. — Provide Resources: − People, Money, Sponsorship. − Facilitation, Forum for Arbitration (if needed). — Set Milestones: − Objectives / Time-Lines. — Review, Analyze & Improve. Helping the Regions With Transition; key steps were identified to advance the transition and integration initiative including: — Foster Concept of National Consistency and Best Practices. — Develop a ‘Customer Satisfaction’ Process: − Approach, Methods, Questions, Evaluation Criteria, and Tools. — Provide Toolkit to Enhance Commonality: − System Platform (QSi System 9000); — Training. — Facilitation: − Act as ‘Agents of Change’. Standards & Document Transition In order to achieve an approach where our organization was able to integrate many of the requirements of various ISO standards and Industry Codes of Practice, the organization undertook a parallel exercise to map out the various standards and practices as a means of understanding both the common elements and the critical gaps. Information was available to Brenntag to assist with some of these activities, i.e., ISO 14001 and ISO 9001 clause mapping included in various


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reference and essentials documents assisted with the basics. Much of the mapping exercise was largely a manual exercise, undertaking to ensure that the direction taken was based on a sound concept and design. A significant component of the initiative was to ‘dis-assemble’ the existing ISO documentation and update and build the document environment to be more customer-focused and responsive to the organizations needs. Main steps of implementation GRAPHICS

Planning & Implementation of the Integration The Strategies, Initiatives & Activities step was achieved through the following steps: — Creation of National Functional Teams: − Operations. − Commercial & Sales. − Supply Management. — Project & Implementation Plan: − Corporate & Local Plans. − Local Working Groups. — Initiation is Imminent (management was highly committed to getting this initiative started). — Communication: − Timelines established. — Process Mapping & Procedure Review: − Deadlines established. — Documentation Revisions: − Deadlines established. — Completion: − Timelines established. − Upgrade Registration to ISO 9001-2000 QMS using ‘business processes’. − Fully integrated audits with existing ISO 14001 EMS. Development of Process-Approach for Integration of Business Activities The Brenntag organization developed a team-based approach to identify, map, and improve core business processes across the entire organization. This initiative was called ‘Customers First’ and was developed as a strategy to assist the Brenntag organization to take a more integrated, process-based approach to business, as part of transitioning to the ISO 9001:2000 standard. The crossfunctional teams focused on core business areas such as Sales, Supply, Commercial activities and Operations, and mapped their processes based on best ‘shared’ practices from across the organization.

The resulting roadmap document provided an overview of the inter-relationships of key processes, activities, and responsibilities across the Brenntag organization.


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Streamlining of Procedures The Integration of Commonality Through the Organization’ step was achieved through the following steps: — Identify Common Processes at National Level & at Regional Level. — Establish Functional Teams or ‘Task Forces’. — Review Current Situation: − Review Processes and Procedures. − Identify and Eliminate Weaknesses. − Build on the Strengths. — Communicate. — Develop Draft Process Diagrams: − Map Processes: Define Inputs & Outputs. Define Customers & Suppliers. − Align Work Process to Incorporate a Customer Focused Approach. − Identify Controls and Measures of Performance. — Develop Draft Procedures: − Strip Away District/Local ‘Work Instructions’ from old ‘ISO Manual’. − Address any ‘New’ ISO Requirements. − Revise Procedures based on Process Map. The ‘Roles & Expectations of Corporate Leadership During Transition’ step was achieved through the following steps: — Provide the Leadership: − Commitment. − Strategies and Direction. − Common Perspective – ‘Customer Focus’. − Employing Concepts of Quality Policy within the Business. — Identify Common Processes at National & Regional Level. — Establishing / Incorporating Corporate Policies. — National Plan. — Provide the Resources. — Training. — Supportive Management Tools. — A System Platform (QSI System 9000). — Communication with the Regions. The ‘Helping Brenntag Make the Transition’ step was achieved through the following steps: — Commitment: − People Resources. − Competence. − Energy. — Extensive Knowledge of Processes, Procedures and Quality Programs: − Local Knowledge of Customer Base. − Previous ISO Experience. — Information (Data, Procedures). — Training


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Integration of Documentation and Management System Requirements An electronic document management system was also used to both migrate existing paper-based documentation, as well as provide a platform for improved integration of documentation. This approach further allowed the integration and deployment of various management system functions, within the Brenntag organization, i.e., corrective and preventive action, management review, environmental risk assessment, legal requirements, internal assessment, etc.


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The diagram illustrated below, outlines several of the key documentation and activities associated with the electronic integration of the business management system requirements, and how they were deployed within the Brenntag organization.


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This electronic compliance system provided for essential functionality where both local document management requirements were needed, as well as where corporate and national management systems requirements were needed. This functionality was designed based on the following criteria and requirements; — Site-specific Information Catalogue databases enable settings for Approvers, Document Number Prefixes, etc., to be developed based on local record and document requirements, while maintaining ‘keyword’ information that is standard across the organization as used in various forms. — Unique Databases use Document number prefixes specific to the identified site, as required, i.e., NCMR’s Customer Complaints, SOP’s, etc. — Shared Databases, such as Released Documents, Corrective Action, Supplier Management, will allow sites to view the consolidated records of the Brenntag organization, while maintaining an ability to differentiate and view individual records specific to each site. Shared Databases, such as Released Documents, Corrective Action, Supplier Management, will allow assignment of activities to persons at other locations within the organization. Assessment, review and addressing obstacles

Integration Approach to Process-based Assessment Since the organization was moving to an integrated, process-based approach, the decision was made that assessments should align as well to a process–based approach. Many of Brenntag’s internal assessors were skilled in traditional ‘internal’ auditing, based specifically on the ISO standards, a clause-by-clause, procedural-based approach to assessing, not fully reviewing or recognizing the activities or businessprocesses of the organization. As part of the transition, process-based assessor training and workshops were conducted to help transition our audit approach to an integrated, process-based methodology. This was accomplished by incorporating actual internal assessments within the training workshops, whereby first-hand experience with the process tools and approaches was learned within the workplace. The assessors were observed and evaluated by both the instructors and lead auditors to share the learning and identify areas of improvement with the approach. Minor obstacles were encountered during actual internal assessments. Some of the audit tools used were stand alone, (i.e., specific to either, quality, environment, or Responsible Distribution), and did not always lend themselves well to the integrated approach. Although integration of selected quality, environmental and health and safety elements was not always possible, they were completed, where possible. The electronic compliance system platform did provide for significant improvement and efficiency in documenting and follow-up of assessment findings. Continual Improvement Approach Brenntag employs a system of Nonconformance, Corrective Action and Preventive Action processes to address problems, complaints, improvement opportunities, supplier and product performance issues, and process and management systems gaps, including those determined during assessments or audits.


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The following diagram illustrates the inter-relationship and flow of these activities, processes and actions within the Brenntag organization.

Improvement is what management systems are all about, and as such, improvement is a prerequisite of Brenntag’s management system approach, well founded within the requirements of ISO 9001, ISO 14001 and Responsible Distribution. Numerous sources of information for corrective and preventive action improvement are available to the Brenntag organization as opportunities.


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These include customer complaints, product quality failures, process nonconformances, inadequacies identified during housekeeping / safety inspections, equipment failures, emergency response simulation deficiencies, environmental complaints, internal assessment and external audit findings, and so forth. Tools within the electronic compliance system assist the organization with documentation, workflow, facilitation, and processing of these improvement initiatives. Follow-up on, and the closure of any identified management system gaps, including the effectiveness of the Corrective / Preventive Action implementation, is typically determined and evaluated based on the following criteria: — verification that the action has been taken; — documentation of the actions taken; — ensuring additional "ripple-effects" have been assessed including ensure new problems have not been created as a result of the actions taken; — ensuring the action is permanent and the problem is solved and will not reoccur; — determine the effectiveness, success or "measure of completion" of the action: − cost, − complexity, − resource requirements, − time requirements, and, − resolution date; and, — assessment of the level of satisfaction of the Customer, and/or initiator of the corrective action. Management Review Completing integrated management review functions posed more of an obstacle, often due to the nature of the varied requirements that needed to be reviewed, and the specific audience (management representation) required for the review function (i.e., quality topics required different management, commercial, and site representation than environmental topics). Where practical, critical and related elements were reviewed in an integrated manner.


Some of the perceived versus actual benefits were often communicated informally across the Brenntag organization. More often than not, the benefits were hard to comprehend through the cloud of ‘non value-added’ or ‘negative’ aspects of our previous management systems. Some of these ore outlined below, representing the collective experience; + Process-based approach to business and work activities was well received, and viewed as an improvement over the procedural-based approaches used in the past. + Customers First generated many other improvement initiatives including, product quality management, inventory management, quality control related to supplier document management, sales-process and customer relationship management. + Significant internal cost savings / return-on-investment benefit by moving to an integrated electronic document management system (from paper-based systems) - internal costs savings and productivity improvements determined at $96k. + Improved workflow, and better access to information, procedures, documents,


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+ + + + + + -

-


complaints, non-conformances, CAR’s, related to the Management System from the electronic compliance system. More focused, performance-based reviews of environment, quality, health and safety data and information within the Management Review process. Enhanced, fact-based decisions based on improved availability, reporting, and presentation of system data and information (from electronic compliance system). Internal assessments became more beneficial and effective, and seemed less like audits, bringing more internal value to the organization, electronic tools were a significant enhancement to the assessment process Significant cost savings realized by converting to an integrated approach where an audit sampling plan was introduced with our third-party registrar Multi-site registrations were evolved into corporate single-certificate registrations, resulting in cost savings of third-party registration costs (2530%). External Auditor competence, practices and experience generally found to be quite good and always professional. General perception that external auditing services provides a ‘negative’ effect on the Brenntag organization. Brenntag perception is we are doing things for the ‘auditor’ and ‘ISO,’ and not for our organization. Identified external audit and auditor performance issues often not resolved in a timely fashion, or in an effective manner. General lack of attentiveness and responsiveness to Brenntag’s needs and requirements by our registrar, inflexibility in adapting to our ‘process-based’ business approach. Limited communication on the part of registrar, especially to align business approach with our organizations changing markets and needs Perceived lack of a value-added contribution to the business, even though the external costs were reduced. Many hidden costs associated with increased time and effort to deal with administrative activities and follow-up activities and related issues, as a result of performance-related issues by third-party registrar.

One of the key concepts and approaches to Brenntag successfully achieving an integrated management system within the organization was that we needed to ensure our organization was doing the right activities for the right reasons, such as; — Management commitment must be steadfast throughout the entire process. — Develop a culture based on leadership values and attributes such as the Management System Elements: − Customer Focus. − Leadership. − Involvement of People. − Systematic Approach. − Continual Improvement. − Fact Based Decision Making. − Mutually Beneficial Supplier Relationships. — We want to understand our customers' requirements and be focused on meeting their needs, committed to continuously improving the aspects of what we do, and regularly monitoring our performance. — We will do this efficiently by eliminating work that does not add value for our


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customers and suppliers and by utilizing best national practices. — Our personnel will be well trained, properly directed and intensely customer focused. — Process-based approach was taken in order to make Brenntag a better, more effective organization. — All processes must be customer-focused, and contribute value to the organization. — Break down barriers and identity of the old system to ISO. — We were not doing this just for ISO – this is Brenntag’s business management system. — We no longer were doing this for our ‘auditors’. — There are no more ISO procedures, no more excuses that we ‘can’t do things because of ISO’. — Clearly communicate to third-party registrar that the management system they are auditing is Brenntag’s Management System, which coincidently meet the requirements of ISO standards. — Developed a better process to formally document the needs of our customers. — Measure our ability to meet these needs every time. — Develop a process to monitor customers' perceptions of our performance. — Simplified and standardized our work procedures using best practices. — Focused our procedures on meeting customer's requirements. — Adopted common language, measurements and efficiency-enhancing tools. — Recognition - Celebrate the successes, even the small ones. In the words of our President, “Nobody said it would be easy.” With the successful transition of the Brenntag organization, we have continued to differentiate ourselves from our competition by providing superior products and services, and at the same time improving productivity and, performance contribution from our most important resource, our people. Customers First ...the way we do business!

Authored by: Brenntag Canada Inc., Bernard C. Cook, Manager, Quality & Environmental Systems


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CETIB (Col⋅legi d’Enginyers Tècnics Industrials de Barcelona) Introduction Who are we, market, business content

CETIB (College of Industrial Engineering Technologists of Barcelona) is a professional, non-profit association that has as its main objectives the representation of the general interests of the industrial engineering technology profession, as well as the provision of professional and other services of interest to its members. The territorial coverage of CETIB includes six administrative regions in and around Barcelona. The mission of CETIB is to regulate and monitor professional practice, represent the general interests of the profession, defend the professional interest of its members, assure that the practice of the profession is suitable for public interest, assure the ethical conduct of the profession in the manner in which citizens’ rights are respected, exercise its disciplinary jurisdiction in professional and membership matters, guarantee that the professional practice is conducted in the environment of free competition and the law regarding the application of professional fees. The association offers a number of services to its members, such as discounts and benefits with collaborating entities, job referral services, library and documentation, professional assessment, project accreditation, a member directory, services related to professional adjudication, rental of measuring equipment and insurance.


The first management system standard implemented by CETIB was ISO 14001: 1996 for environmental management. Although the initial objective also included the implementation of the ISO 9001: 2000 standard for quality management, it was considered more appropriate for the association to start the process of establishing a standardized management system with ISO 14001. This was due to the opinion that an environmental management system was less demanding and more familiar to the engineering business culture, and therefore it would have been easier to involve the whole organization in this system. At the same time, the environmental management system could help CETIB in learning how to manage these types of systems in general. It was also considered favourable to start the process of environmental management system implementation in this manner since CETIB is very much involved in environmental topics. For example, CETIB has won the City of Barcelona Agenda 21 sustainability award, and the association itself gives awards to its student members for the best sustainable development project. Furthermore, with its registration to the ISO 14001: 1996 standard, CETIB would become (and eventually became) the first professional association in Spain to obtain this certificate. As for the ISO 14001: 1996 environmental management system, CETIB decided to implement ISO 9001: 2000 on its own accord, i.e. without the explicit pressures or demands from its customers or external stakeholders. Namely, a quality management system was established due to a decision of the executive management of CETIB to address the overall societal requirements for improved quality.

The system and executive management’s position

The implementation of both the ISO 14001 and ISO 9001 standards, and the subsequent application of an integrated management system at CETIB, were all driven by the association’s executive management. From the very beginning and


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(leadership response)

throughout this process, integration has been fostered since the association did not believe that an effective and efficient implementation of the standards could have been done in any other way. This belief in a single management system is underscored, for example, by the decision to implement ISO 14001 first in order to more easily integrate ISO 9001 after, and supported, for instance, by the executive management wishes to have simplified and shorter annual reports, as well as not to draft and communicate separate quality and environmental policies. Another factor contributing to the decision to establish an integrated management system was the high level of importance given to actually using the system established according to a standard, rather than just leaving it documented, but not used. Furthermore, the objectives not to duplicate work and to minimize work interruptions by doing everything possible together (e.g. audits), resulting in higher efficiency (e.g. shorter meetings), also facilitated the integration.

Getting started and further steps in the development of an integration plan including milestones – what was the project plan? (What, when and how including background) GRAPHICS

CETIB obtained the ISO 14001: 1996 certificate in 2001. Starting at that moment, the association had been working on the system for managing the quality of the most important processes in the organization. In 2004, CETIB received its ISO 9001: 2000 registration, together with a renewal of the ISO 14001: 1996 certificate. After a number of individual audits and annual reviews, the ISO 14001: 2004 standard was implemented in the whole organization, while ISO 9001: 2000 was applied to the most important services, such as the admission of new members, membership services, and the accreditation of projects and documents. However, currently CETIB has the objective to include the rest of the services it provides into the quality management system shortly. In addition, in May 2006, CETIB’s registrar has, for the first time, carried out an integrated audit with a single audit plan for both ISO 9001 and ISO 14001 standards. A future challenge set out in CETIB’s plans is the introduction of the EMAS environmental management scheme into the integrated management system. Different from the environmental and quality aspects, for which specific management system standards have been used, CETIB does not plan on establishing an occupational health and safety management system based on the OHSAS 18001 standard. This is because the association considers that, in this area, the related law is more rigorous than the standard and inspection for conformity to the law is carried out differently compared to certification. However, CETIB's Integrated Management System Manual covers not only quality and environmental management, but also the prevention of occupational risks, and includes, for example, an integrated policy for these three aspects. The same person in CETIB is responsible for managing quality, environment, as well as occupational health and safety.

Main steps of implementation GRAPHICS

The implementation of the whole management system was accomplished using only the internally-available resources, with a continuing objective to design a useful and dynamic system in accordance with CETIB’s needs. Consequently, the employees designed their own procedures, having in mind the following executive management guideline: “do something that will serve you, because the system will be yours.”


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Following the creation of these procedures, an improvement phase was initiated and carried out through group-work and an analysis of all of the information resources that were used in regular work. In this manner, and with the objective of facilitating the understanding of the documentation, each procedure contained a diagram of the corresponding process. The management system was organized through a set of interrelated processes, with three specific types distinguished: — Fundamental processes, i.e., member registration, membership services, professional orientation, accreditation services, industry services, technical services, and education. — Strategic processes, i.e., institutional relations and professional representation, general coordination, information and communication, management of quality, environment and occupational health and safety, commissions, and professional conduct. — Supporting processes, i.e., administration and accounting, infrastructure maintenance, information technologies, human resources, and secretarial support. Each process carried a unique code associated with it, with the letter indicating the type of the process (“F” for fundamental, “E” for strategic and “S” for supporting), and the subsequent number identifying the actual process. For example “F.01” indicates the member registration process, while “S.04” pertains to the human resource management process. Each process also contained one or more related procedures. In turn, each procedure was also identified by a specific number following the corresponding process number. For instance, “S.02.10” refers to the cleaning procedure contained in the infrastructure maintenance process (“S.02”). The requirements of the ISO 14001 standard were then mapped against the corresponding processes undertaken at CETIB. The following table, adapted from the CETIB’s Integrated Management System Manual (Table 9.4), provides a list of the selected requirements from the standard and the corresponding procedures used in the CETIB. ISO 14001: 2004 Requirement 4.4.2 Competence, training and awareness 4.4.3 Communication 4.4.4 Documentation 4.4.5 Control of documents

4.4.6 Operational control

4.4.7 Emergency preparedness and response 4.5.3 Nonconformity, corrective and preventive action 4.5.4 Control of records

Procedure S.04.10 Personnel training E.04.30 IMS Communication -E.04.20 Documentation management S.03.05 IMS maintenance and security E.04.45 Waste management S.02.05 Construction S.02.10 Cleaning S.02.15 Maintenance S.02.30 Administration S.02.36 Resource management: Electrical energy, water and atmospheric emissions S.02.40 Purchasing and storage S.02.10 Cleaning S.02.40 Purchasing and storage E.04.05 Management of complaints, suggestions and incidents E.04.15 Improvement actions E.04.25 Records management

The implementation of the second standard, namely ISO 9001: 2000, was undertaken with the help of an analysis of common elements of the ISO 9001 and ISO 14001 standards, and using the same process maps that the association


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designed at the beginning, since these maps (and the processes they represent) did not change in the meantime. Following the study of the requirements given in ISO 9001: 2000, most of the work was done on meeting the section 7 “Product Realization” of the standard, since the other requirements were more or less already included in the ISO 14001: 1996 - compliant system.

The following table, adapted from the CETIB’s Integrated Management System Manual (Table 9.2), illustrates the selected requirements of ISO 9001: 2000 mapped against the specific corresponding procedures of CETIB. Evidently, a number of procedures cover processes that are completely integrated, i.e. a single procedure meets the requirements of both ISO 9001 and ISO 14001 standards. This is the case, for example, in the personnel training procedure S.04.10 that covers sections 6.2.2 of ISO 9001: 2000 and 4.4.2 of ISO 14001: 2004 at the same time. Requirements for record control (4.5.4 of ISO 14001: 2004 and 4.2.4 of ISO 9001: 2000) of both standards are also covered by a single procedure (E.04.25 Records management). Requirements specific to quality or environmental management, such as environmental operational control (section 4.4.6 of ISO 14001: 2004) and control of production and service provision (section 7.5.1) are mapped against the corresponding, but distinct processes and procedures. ISO 9001: 2000 Requirement 4.2.3 Control of documents 4.2.4 Control of quality records 5.5.3 Internal communication 6.2.2 Competence, training and awareness 7.5.1 Control of production and service provision

8.3 Control of nonconforming product 8.5.1 Continual improvement 8.5.2 Corrective action 8.5.3 Preventive action

Procedure E.04.20 Documentation management S.03.05 IMS maintenance and security E.04.25 Records management E.04.30 IMS Communication S.04.10 Personnel training F.01.05 Member registration F.01.10 Modifications and monitoring of the registration data F.01.15 Member retirements F.02.10.05 Initiation of agreement services … F.04.10 Accreditation in the association … F.04.19 Internet accreditation … S.01.05 Receipt management E.04.05 Management of complaints, suggestions and incidents E.04.15 Improvement actions E.04.15 Improvement actions E.04.15 Improvement actions

With the objective of having a paperless environment, the integrated management system of CETIB is formalized in an internal computer network through the application of widely-used office applications. In this Intranet, all of the processes of CETIB are related to the specific legislative requirements and ordered in accordance with the corresponding impacts, as illustrated in the following tables.


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Legislative Reference Official Provincial Bulletin (BOP) No. 13 of 11/05/2001 BOP of the Province Barcelona No. 275 16/11/2000 BOP of the Province Barcelona No. 275 16/11/2000

of of of of

Impact Office waste entry into the environment Construction work waste entry into the environment

Title Municipal Ordinance of the Activities and Integral Intervention of the Environmental Administration Modification of Chapter VI of the 1st General Ordinance of the 26th of March 1999 Modification of Chapter VI of the 1st General Ordinance of the 26th of March 2000 No.

Affected Activity licences

I1

Office waste

I2

Work waste entry into the environment

Process

Procedure

S.02.30 E.04.45 S.02.05 E.04.45

Administration Waste management Construction work Waste management

1 2

Management system documentation is completely integrated, using single procedures and records wherever possible. For example, CETIB uses a single record for the initiation and follow-up of preventive and corrective actions, with the possibility to indicate a specific area of concern, i.e. quality, environment or occupational health and safety with a check mark on the form. CETIB uses an integrated annual plan as a key tool of its management system, incorporating not only the issues related to ISO 9001 and ISO 14001 registrations, but also the day-to-day tasks and possible improvements. This plan is revised monthly by the quality and environmental management committee, which consists of the top management representatives, the quality / environmental manager and process owners. Assessment, review and addressing obstacles

In virtually all cases where the requirements of the two standards implemented, i.e. ISO 9001 and ISO 14001, were different for a set process, CETIB has opted to apply the more comprehensive requirement. This is evident, for example, in the integrated policy of the association, as well as in the procedures for the communication of the management system and supplier evaluation. CETIB’s internal audit team consists of nine auditors, with one lead auditor. Internal audits are looked at in a very motivating light, since it is possible to evaluate the functions and the responsibilities of one’s colleagues at work. All CETIB’s employees are trained as internal auditors. Internal audits against both standards are performed process-by-process, in an integrated manner, with single audit plans and reports.


CETIB encountered a number of benefits as a result of the implementation of the standards and the establishment of an integrated management system. Among those, particularly emphasized are the improvement of the overall organization

of CETIB, better employee awareness of the importance of their work as a contributor to the whole association, and, although to a much lesser extent, a certain prestige for the public recognition of the registration to both ISO 9001 and ISO 14001 standards. Internally, as a consequence of integration,


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a more agile system was created, with less redundancy and without bringing much more work each time a new standard is added. Continual improvement, lessons learned, the way forward or future direction

The perceived success factors necessary to undertake the integration were to start the implementation of the standard with less comprehensive requirements in order to involve the whole organization in the implementation, and to reach appropriate process ownership in the sense that each employee considers the procedure he or she is using as his or her own, for which he or she bears the responsibility and authority. Regarding the integrated management system, the main advantage is that integration “helps to integrate more” and creates a solid framework in which it will be much easier to add new management systems based on the standards, for example energy audits and complaint management.


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Codelco Introduction Who are we, market, business content

Andina is one of the five operational divisions of Codelco mining company and is located in the Andes mountain range, 50 kilometres north-east of Santiago, Chile. Its mining operations are performed at an elevation of 3 500 to 4 200 metres above sea level, in the western side of the Rio Blanco quarry. Mining resources in total are more than 14 767 million tons of minerals with an average of 0.57 % copper content and 0.019% of molybdenum. Its exploitation is conducted in both open pit and underground mines. At present, the daily treatment capacity is 72 000 tons, which annually represents 245 000 tons of fine copper. To reach this production level, Andina is staffed with 1 100 company employees and 4 000 contract workers. Given the operating conditions and mineral reserves of this mine, Andina is currently analysing an expansion project which would imply multiplying by three the treatment capacity in 2012 and by four in 2022.


The Integrated Management System (IMS) is represented by Codelco´s Commercial Vice-Presidency (VCO), who maintains direct contact with end consumers, fulfilling their contractual specifications with the utmost accuracy.

The system and executive management’s position (leadership response)

The key to success has been the permanent and effective leadership of the director general and the highest level of administration in the development stage of the Integrated Management System (IMS). IMS is presently constructing and implementing the main directional and motivating settings for the management and process improvement in accordance with the mining business.

Getting started and further steps in the development of an integration plan including milestones – what was the project plan? (What, when and how including background)

Codelco Andina began its pioneering efforts towards the Integrated Management System (IMS) in 1996 when they were awarded certification to ISO 9003:1994 “Inspection Certification and Final Product Testing”. Later, in December 2001, Andina´s Environmental Management System was certified to ISO 14001:1996 and additionally in 2003, its Quality Management System was certified to ISO 9001:2000 for all of its processes. Both systems were developed with an integrated criterion, in which structural procedures were defined and an IMS Manual was created in December 2005. Codelco received its OHSA 18001 certification and incorporated it within its IMS, occasionally renewing the certification of the environmental system to meet the 2004 version of ISO 14001. This way, the trilogy has been comprised within the same (IMS) system, a process which took nine arduous years to be completed.

Main steps of implementation

In addition to the ISO 9003 and 14001 certifications, a process was initiated to put in place an Integrated Management System to develop further existing auditing systems, determining nonconformities in order to integrate them and in turn generate a plan of action to modify documentation. A manual on IMS policies and structural procedure systems was created, combined with strong leadership from top management and involving the leaders in the process. Internal systematic audits and management reviews were performed to adequately verify the efficiency of the IMS. Today, the IMS manual is the only tool used by Process Management in areas of Security, Occupational


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Health, Environment and Quality. Assessment, review and addressing obstacles

The main obstacle that had to be overcome was for the organisation to have an integrated perspective of the standards and specifications when preparing its instructions and procedures, which was satisfactorily improved with adequate training and permanent team support. The second obstacle was to establish, at the beginning of the IMS, the appropriate dynamics for processes to manage improvement opportunities, an aspect that was reverted through the involvement of the process leaders and workers in the improvement of key indicators, something that helped in creating a continual improvement culture. On the other hand, top management, by means of systematic management reviews, provided the necessary resources to carry out improvements that required investment of certain level.


Among the main benefits of creating an Integrated Management System are the following: a) This integration generated synergies between the three systems, thus having the common elements to enable saving resources and avoiding duplication of efforts. b)

A minimal auditing process can review the systems.

c) These three systems are based on the methodology of continual improvement which creates and adds value to business processes. d) Control of integrated documentation is simplified in order to exist in a pertinent software market. e) The documentation is updated, paying special attention to critical activities, thus allowing the management of knowledge to assure the longevity from within the business. f)

Ongoing training to increase employee’s capacity in each of the three disciplines is a common activity.

g) Integration optimises operational controls, simplifies work and reduces confusion. h) Considering the legal requirements as “inputs”, management was oriented in a common direction.


i)

Top management was compelled to assume a visible leadership role and perform periodic revisions that constitute an important directional and motivating circumstance.

j)

Lastly, this style of doing things requires an active commitment from workers, giving them certain roles and responsibilities.

Andina division has been able to affirm that operating under the IMS has contributed to standardising activities, especially the critical ones, which materialised in correct decision making in every single process of this business. IMS has continually led to important improvements, avoiding accidents, illnesses, process delays, equipment damage and promoting a positive public image. IMS has definitely added value to our business.


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Cadillac Products Automotive Company (CPAC) Management System Development and Integration of Business, Quality and Environmental Systems Introduction

Cadillac Products Automotive Company consists of four manufacturing sites and a Corporate office. The manufacturing sites Quality Management Systems have been registered to QS 9000 since 1996 and to the Environmental Management System (ISO 14001) since 2002. Our Corporate Office supports the plants in the areas of Quote/Contract Review, Purchasing and Design. A QS compliant system to control these functions was developed at our Corporate office. The plants worked independently to develop their systems due to the structure of the QS 9000 standards and the plant infrastructure. The resultant systems were very different from one another and became registered independent of one another.

Introduction, cont.

Introduction

CPAC is a family-owned business with four manufacturing sites and corporate offices in Michigan with approximately 400 employees.

Tier 1 and 2 supplier to DCX, Ford and GM, and larger tier 1 systems integrators.

We are a vertically integrated manufacturer with many diverse manufacturing processes producing parts from plastic for automobile interiors.

QS-9000 registration was first achieved in summer of 1996

LEAN manufacturing methods were implemented in 2000 throughout our manufacturing sites and corporate.

TS 16949:2002 registration was achieved in June 2004 for corporate offices and Rogers City Plant.

TS 16949:2002 and ISO 14001:2004 standards were integrated into a common process in May 2005 at the Rogers City plant.

ISO 14001:2004 upgrade/registration audit was performed on the “integrated “ system in June 2005.

TS 16949 rollout to suppliers

The Corporate Quality Director, CPAC Plant and Quality Managers attended the AIAG rollout meeting for ISO/TS 16949 and noted the differences between the elemental approach the current (QS 9000) systems were developed around and the process approach ISO 9001 & TS 16949 contained. There was enough information given at this session to cause us to have more questions than answers when we looked at this challenge ahead and thus sought more training for the Management Representatives at each of our locations before proceeding.

Obtaining upper managements commitment

Prior to beginning the development work, the Corporate Quality Director made a presentation to the Corporate Executive staff and Plant Managers outlining the differences between the standards to communicate the work required and get their commitment to support and lead in this transition. Management saw the advantages in describing our operations with the process approach and committed resources and support to make this happen.

Develop a plan including milestones Gap Analysis

The plans initially included conducting a gap assessment at each manufacturing site and at the corporate office to determine where we did not already comply with the current requirements (QS 9000 and Customer Specific Requirements). Our results told us that we were more than 95% compliant with the requirements though a method had yet to be defined to describe the sequence and interaction of our system processes. A meeting was held at our Corporate office including the Corporate Quality Director and the Plant Quality Managers (these positions are also the Management Reps for their respective facility). It was decided at this meeting that each location would:


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— develop a matrix to show where documents that were developed for QS were 1) required by TS and, 2) needed to describe activity for training and/or auditing purposes. — identify their core and support processes; — mapping the sequence and interactions; — develop project timelines to meet projected dates (goals) established by Corporate; — the transition would also focus on as much standardization as possible between the manufacturing sites which would require periodic reviews. Our first problem-

Our initial problem was finding a method that would best identify the sequence and interactions and provide a method to describe the process without rewriting the entire system. There was no value seen to rewriting procedures to describe processes that were already in place and may need only minor revisions to be compliant. The Corporate Management Rep reviewed the Quality Manual that he was responsible for at corporate and identified where our current system aligned with the TS requirements. The result was a matrix showing where in our current system we addressed the requirements of the TS 16949 standard and/or customer specific requirements. Once this was done it was then possible for the plants to understand the relationship their current documentation had to applying it in the process model that was to be developed.

Pursuing the solutionSequence and interactions

We had tried conventional flow chart software but, though it could show sequence, it didn’t make it practical to describe the interactions and the processes (Who, What, How, Inputs, Outputs and measurables) effectively. We finished a Corporate and Plant model but they still were unclear and many interactions (links) were not readily apparent. At this point we trialed software (Terrapene Process Management Suite) at our corporate office that was advertised on the AIAG website and followed up with an onsite demonstration by the manufacturer (Plexus Corp., St. Paul, MN). The Corporate demonstration included our Quality Director, IT Director and the plant Quality Managers. The usefulness of this software in accomplishing what we were working on was readily apparent. The Executive Staff approved it.

Corporate role applicable to all sites

Corporate developed and “owns” the Level 1 Quality Manual and reviewed the TS and customer specific requirements to what we currently had documented. Policies were revised as necessary and the Table of Contents reformatted to cross reference where we addressed TS requirements in the existing system. This then became the guide for the plants in applying existing documentation to the new processes. The software was purchased by corporate, installed on a server that all locations had access to and the software supplier was brought in to train each locations implementation team. The plants were then told to begin mapping their processes including linking relevant documentation (procedures, work instructions and metrics) to each process. The plants were directed to not rewrite everything we had but to identify in the process diagrams (referred to as turtles in our Terrapene software) where the particular document was applicable and link it to that “turtle”. The document was then reviewed to ensure it was compliant with the requirements and matched the process it was linked to. Most changes to our documentation revolved around taking out references to the QS 9000 standard. Under corporate direction the plants were then directed to begin developing their individual systems and these were monitored from corporate on the server as they were developed.


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Corporate system development

A team was established made up of the heads of each department and the Management Rep to brainstorm and map the corporate core, management and support processes. Once this top level model was agreed to “process owners” were assigned that would be responsible for the development of the process that represented their area(s) of responsibility. — The documentation (Policy, Procedures, work instructions and forms in electronic form) were moved into a shared folder on the main server to give access to all CPAC salaried employees so they could be linked where necessary to the project turtles in our Terrapene system. — The corporate Management Rep set up the project and gave access to the Terrapene process owners to begin developing their processes. — Process owners had been trained on the use of the Terrapene software and began filling in their turtles using input from other members of their department. — The Management Rep at Corporate monitored work on the Terrapene projects at all sites and provided direction where problems were observed or reported. — Each plant Management Rep was granted read rights to review work being done at the other locations to work to commonize/standardize as much as possible between all sites. This process took three months to complete once the software was in place and work was assigned to the process owners. No one worked “full time” on this effort but instead had worked when time was available. — Internal audits were conducted next to validate the work and to verify we were compliant to TS 16949 and customer specific requirements. — The system was adjusted where necessary through our normal corrective action process and areas of nonconformance were re-evaluated. — Management review was conducted at Corporate and the system was approved.

Continual improvement

During the Corporate Management Review, the completed project was reviewed and the CEO saw the opportunity to track plant data through the Terrapene system and also to include our Corporate Management Reports that are reviewed in monthly business review meetings (both at the corporate office and at each manufacturing site). The plant managers were then directed to develop the Management Responsibility process at each facility to include the measurables that the plant reviews each month with the Executive Staff during plant level business review meetings. These are all linked using the Terrapene software so that the CEO can review these through the Corporate system whenever needed.


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Planning the transition-Corporate

Executive overviews were presented to key managers and the senior executive staff by a third party.

Training (transition training for internal auditors and the new standard-clause by clause) was conducted on TS 16949 for the team that was to work on the transition to the ISO/TS 16949:2002 standard.

A plan was then developed to begin work on the transition corporate-wide.

Managements Concerns Moving Forward

Resources in light of “right sizing” initiatives to cut costs meant we would make the transition with fewer people available.

The plants had developed their current systems independently and complaints about the amount of documentation they already had were voiced by both plant and corporate management.

All CPAC manufacturing sites had developed different systems both in the way they executed the requirements and in staffing assignments for responsibilities identified in procedures.

Corporate Transition Plan

Rogers City Plant – Planning the Implementation

Initial work identified where in our QS-9000 system we already addressed the requirements of the new standard.

A gap assessment was done to determine the areas that had not been addressed in our current system.

Work was assigned to department heads to eliminate this gap.

The Corporate Quality Director would provide guidance to the plants for identifying the relationship of our current system QMS (Policies) to the new standard.

The plant established a team that included the QS-9000 “Element Owners” whose designation soon changed to “Process Owners”. The team was trained on the TS 16949 standard and process approach; then worked to identify and close the gaps between the QS and TS standards. This team also identified the sequence and interaction of the plants core and management processes while the Internal audit team was being trained on the TS standard and process approach to auditing. After closing the gaps, internal audits were conducted to address any further compliance or process effectiveness issues. Management Review on the effectiveness of the processes and results of the internal audits ensured we were fully implemented and ready for registration.

Rogers City Plant – Problems

As with the Corporate office, the plant experienced problems with how to document the sequence and interaction of the processes and did not want to rewrite the documented system that was already in place. The first attempt was to simply cross reference the procedure table of contents to the TS 16949 clause. This was useful for identifying documents related to TS, but did nothing to “show” the sequence and interactions. Next we tried using flowcharting software and ultimately utilized MSExcel to create a flow chart of the processes. Due to the amount of detail needed, this final product ended up confusing and did not really reflect the true interactions of the processes.

Rogers City plant – Solution

Again the software solution (Terrapene Process Management Suite, developed by Plexus Corp., St. Paul, MN) provided a template so that the sequence and interactions were “visible”. The software utilized the “turtle” diagram to describe a process which includes Input, Output, What, Who, How & Measure. Our current level 2 documentation did a decent job of explaining the What, Who and How and also included some Input and Output detail in sections we called Scope and Reason, but very little if anything in our procedures connected you to


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other processes or defined any measures and objectives. Dialing in on measures and objectives related to our processes has been a key component to the continual improvement in our processes. Completing this leg of the turtle diagram was enlightening to many process owners, management and auditors on how to evaluate whether or not the process is effective and reminds us of the reason we do things that we do or need to. System integration at the plant

The method we applied to converting our QS system to TS worked so well for us that we looked next at further adding the Environmental Management System (ISO 14001) that we were registered to as well. The plants are individually registered to ISO 14001 as they are to the TS standard but our Corporate office is not involved in this process (ISO 14001). The Rogers City Plant found it very easy to follow the same path they had followed for TS and combined areas that were similar (e.g., Records, Document Control, Management Review, Internal Auditing, etc.) as well as developing new process turtles in the TS model to address the ISO 14001 specific areas that needed to be detailed. In both of these efforts, very little work had to be done to our existing documentation (procedures) unless improvement was seen after the turtle was completed and then the procedure(s) were revised to agree with the model. There are now plans being made to integrate the ANSI/AIHA Z10-2005 American National Standard-Occupational Health and Safety Management System into the same system by December 31, 2006. This standard was chosen by our company over others (such as 18001) because OSHA has and said they would recognize this standard but has not committed to others. Our Terrapene models in place throughout CPAC have become a Business Model reflecting the way we manage our combined Business, Quality, Environmental and soon our Employee Health and Safety programs. Rogers City Plant-

Implementing the plan

Planning the Implementation

Established a team to:

Identify and close the “gaps” between QS and TS. Define the core processes (COPS) and their sequence and interactions. Conduct internal audits of core processes and identify compliance issues. Define management and support processes as appropriate.

A team was assembled that would become the Process Owners (referred to as “Element Owners” under QS System). This team had to review the TS requirements against their process to evaluate compliance to the standard.

When a noncompliance (e.g., “gap”) was discovered it was put onto a “project form” to track.

The goal at this phase was to quickly identify where revisions, deletions or additions had been/or needed to be made, correct them and conduct a thorough/critical audit of the system.

Rethinking our approach

Corporate was experiencing the same problems as the plant.

We were getting closer to a customer mandated compliance deadline.

Corporate began researching alternative methods to define and map our processes.

Corporate and the plant continued to identify and resolve compliance differences between the two standards.


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Our solution

Our solution

Why we chose this model

We had tried to use methods we heard were being used by other suppliers but didn’t see the results our senior management was looking for.

We had tried to use methods we heard were being used by other suppliers but didn’t see the results our senior management was looking for.

We had been trained to look at process-based management systems as a Plan-Do-Check-Act model. This was further expanded to what is referred to as a turtle diagram.

We had been trained to look at process-based management systems as a Plan-Do-Check-Act model. This was further expanded to what is referred to as a turtle diagram.

Process inputs and outputs could be clearly described and linked as we identified the support processes to the COPs.

A software solution was discovered that would provide a template so that the sequence and interactions were “visible.”

A software solution was discovered that would provide a template so that the sequence and interactions were “visible.”

The picture we were developing helped us “visualize” how our current system interacted and we were then able to relate current documentation to our processes.

With this model we were able to describe the sequence and interactions, which helped in the following ways: We were able to map our top-level processes (COPs) and then show their sequence and interactions.

Process Diagram-Example


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Rogers City plant COPs


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RCP Management Processes

How this approach helped

Seeing our processes in this way uncovered areas in our processes that didn’t work as we thought.

This model allowed us to rethink the way our processes were structured and rebuild them with confidence where we saw opportunities to add value.

We were able to “link” supporting documentation (procedures, metrics, etc.) to describe how the process worked. Everyone working within a “process” had a much better understanding of both a “process approach” and how the processes worked including interactions.

How this approach helped, cont.

Senior management could see the processes and took an active role in their redesign in some cases.

Metrics for evaluating the processes performance were linked to the measurements block of the turtle allowing for objective measure of a processes performance.

The system is much easier to audit and maintain than the elemental approach followed previously.

We have been able to integrate the ISO 14001:2004 standard into most of our current processes and recognized where we needed to add new processes utilizing the same approach and tools.

Systems Management


Turtle diagrams are reviewed during the internal audits to evaluate process effectiveness.

The measurements are evaluated to assure the process performance is as it should be.

Any documentation associated with the process is attached and can be reviewed (ours include performance indicators and corporate has business results attached to theirs).

Process sequence and interactions can be reviewed and audit trails developed to verify the process.

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Corporate Transition Plan

Systems Management

Process owners attach records of process performance to their turtle diagrams for use in monthly business review meetings conducted onsite. This review includes the corporate executive staff and plant department managers.

The system is also reviewed as part of our management review process to assess areas for improvement while the staff is together and can review the processes they may not be familiar with.

Benefits we’ve recognized throughout the company

Initial work identified where in our QS-9000 system we already addressed the requirements of the new standard.

A gap assessment was done to determine the areas that had not been addressed in our current system.

Work was assigned to department heads to eliminate this gap.

The Corporate Quality Director would provide guidance to the plants for identifying the relationship of our current system QMS (Policies) to the new standard.

Documents of external origin (customer-specific requirements, relevant IAOB and IATF documents, regulatory documents, etc.) are linked where required.

— Time to develop and implement was greatly reduced using this approach. — Fewer people were involved resulting in a savings in man hours. — Our systems (Business Operating System, Quality Management System, and Environmental Management) are much better understood by all levels of employees in the organization and make it easier to train new employees. — We were able to use most of our documentation with little or no rewriting. — We only brought into the system those documents we needed to explain the processes resulting in a reduction in “paper work” of approximately 40%. — The models we’ve built were developed around the way we do business and are used for problem resolution. — All important measurables for monitoring performance in each department are linked electronically to the process making them viewable to the Executive Staff and senior plant management whenever they choose to see it. — Our registrar has had a much easier time auditing our processes with the sequence and interactions being visible as well as the links to documents. — Being able to “see” our processes uncovered areas in processes that didn’t work as we thought. — We were able to link supporting documentation (procedures, metrics, etc.) to the turtle diagrams to describe how the process worked and is working. This saved a lot of time. — We could see the way our processes connected which helped identify some disconnects. For the plant it was the first time we really thought about how our management processes interacted. — We were able to attach the specific clauses of the standard to the turtle diagrams to ensure we had full clause coverage. — Senior management (both at the Corporate and Plant level) could see the processes and took an active role in the redesign in some cases! — The system is easier to audit and maintain than the elemental approach. — We have been able to integrate the ISO 14001 standard into most of our current processes and recognized where we needed to add new processes utilizing the same approach and tools. — The processes describe the way we do business. — Process performance and effectiveness has improved with the additional metric identification and tracking. — The system once built in this manner has allowed for the easy integration of not only the other standards we must comply with (TS, EMS, Safety & Health) but also been expanded to other areas not identified by a particular customer requirement (e.g., financial processes and metrics, facility processes, employee benefits).


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Benefits we have recognized

The processes we defined are the way we do business. It is recognized as a business management tool.

Benefits we have recognized, cont.

Procedures and instructions that have not been used are being obsoleted and archived.

The model developed around corporate and RCP has become the model applied to our other manufacturing sites resulting in a common system.

Processes within the model are being evaluated and “best practices” identified. This will lead to additional commonizing/refinement of processes.

New business was awarded this year that will result in a new plant for CPAC in Texas. This model will simplify installation and implementation of the TS system in a timely manner.

When questions arise, the documented processes drive decisions.

CPAC contacts

The method we are using to map processes has and continues to be championed by our senior management which has begun to require other elements of our management processes (“nonquality”) to be mapped in a like manner.

More metrics are continuing to be linked to the turtles as management uses the software during business reviews.

The process approach made integrating the ISO 14001 EMS into the model almost seamless.

This information is derived from a presentation made at the AIAG TS 16949 Implementation Workshop in June 2005. Dennis Gentry-Corporate Quality Director; Cadillac Products Automotive Company [email protected] and, Andy Stone-Plant Quality Manager; Cadillac Products Automotive CompanyRogers City Michigan plant [email protected]


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FERROVIAL Introduction Who are we, market, business content

Ferrovial. “Building the future” Ferrovial is a leading European infrastructure, construction and services group, with a stable presence in more than 40 countries in Europe (UK, Poland, Hungary, Portugal, Ireland, Italy, Switzerland), North America (USA and Canada), Latin America (Chile), Australia, Africa and Asia (India). In June, Ferrovial completed its acquisition of the British Airport Authority (BAA, the largest airport operator worldwide), in a deal worth €15 billion. Such acquisition has transformed the portfolio and profile of Ferrovial. Ferrovial works in the following four strategic lines of business: — INFRASTRUCTURES (airports, toll roads, motorways, car parks); — CONSTRUCTION (building, civil works, environmental & industrial projects); — SERVICES (environmental services, waste and wastewater management, handling and cargo services, facility management, infrastructures and road maintenance); and — REAL ESTATE. Including BAA assets, Ferrovial’s revenues reach more than €14 billion, keeping its leadership by profitability and capitalization (which exceeds €8 billion). At the end of 2005, Ferrovial’s workforce increased to 79 000 employees (more than 53% out of Spain). Sustainability Strategy Ferrovial is recognised by analysts as a “sustainability giant” (Ethical Corporation, August 2006). The group has a strong record in implementing sustainability strategies and integrating management systems (in 1997 Ferrovial was the first construction company in the world to implement and certify an environmental management system according to ISO 14001). Alongside other companies on the Spanish IBEX 35, Ferrovial has been instrumental in promoting corporate responsibility and sustainability issues in Spain, where Ferrovial was one of the first firms to sign the UN Global Compact. Ferrovial is part of the main Sustainability Ratings, as Dow Jones Sustainability Indexes, FTSE4Good, ASPI Eurozone and Ethibel. The results of the last annual review of Dow Jones Sustainability Index (September 2006) place Ferrovial as the “world industry leader” in its activity sector (Heavy Construction). For the past five consecutive years, Ferrovial has been the only Spanish construction group included in DJSI World, as well as the DJSI STOXX. Analysts agree that Ferrovial is positioned among the sustainability leaders in the world. According to their assessment, Ferrovial has a strong performance in integrating sustainability strategy into business and corporate thinking, in particular in the following issues: — Crisis and Global Risk Management (integrating financial and reputation risks with such related to environmental and social impacts). — Corporate Governance. — Transparency and reporting on environmental and social issues. — Environmental policy and management systems. — Talent attraction and retention. — Management systems and standards for suppliers.

Customer/stake

Main stakeholders are considered within Ferrovial’s Sustainability Policy:


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holder requirements (what were the drivers for action)

shareholders, investors, partners, suppliers and customers… as well as employees and Society representatives (relevant NGO’s related to protection of the environment, social action and human rights). As an innovative company, Ferrovial has also a strong relationship with universities and the scientific community.


Corporate Quality & Environment Director reports to CEO and the Board. Each one of the business areas has a Quality, Health and Safety Director reporting to the Director General. In all cases, directors are members of the Steering Committee, at the top executive level. Corporate Q&E Direction is also responsible for Global Risk Management and Insurance Policies.


In 1993 the quality management department of Ferrovial was created reporting to the Director General. In addition, the Occupational Health and Safety department had an integrated management system based on legal requirements, without considering a programme on continual improvement of quality. Environmental Management was carried out by a technical department developing environmental aspects of construction projects and production sites advising. The objectives were the integration of Quality, Operational Health & Safety and Environmental management and responsibilities, optimization of human resources in these areas, more integrated and simplified documented systems and optimization of management tools.


In 1996 Ferrovial was the first Construction Company which centralised Quality, Environmental and Health and Safety areas in the same department handled by one single person (who, in 1997, became part of the Steering Committee), who reports directly to the Director General. In addition, a quality strategic plan was approved. A specific department of Environmental Management was created to implement and develop a management system according to ISO 14001 standard. In this sense, in 1997 the environmental management system was certified to ISO 14001 requirements (the first construction Company in the world to be awarded this certificate). In 1999, Ferrovial and Agroman merged and so there was an integration process. The specialists of the Health and Safety department received an intensive training plan on continual improvement, Quality Management and Environmental systems. In 2002 the integration process made progress. On the one hand, there was a single corporate policy called Sustainability Policy that included legal requirements of the three areas, and on the other, the documentation and the information system were completely integrated. For instance, the intranet of the company has only a web site which includes all the information concerning Quality, H&S and Environmental Management.


The main problem when taking care of integration is the difference in profile and training level of technical officers involved in quality and environmental work and of those involved in prevention matters. Based on this fact, prevention work has traditionally focused on strict legal observance, and not on aspects such as continual improvement or systematised processes. Different prescriptive and legal frameworks for quality, environmental and prevention scopes sometimes inspire opposite philosophies.


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The production line does not capture with the same intensity, quality, environmental and occupational health and safety matters, as effective risk factors for its business. This fact shall be borne in mind and depends on the circumstances and professional background of technical officers. As a conclusion we can say that the main challenge is to integrate the attitudes and approaches of those who manage the systems, instead of other kind of issues relating to more technical aspects. Perceived v. actual benefits

On the one hand, some of the following issues are instrumental in improving management on a daily basis: — Substantial decrease in document load and system maintenance charges. — Simplification of work procedures and information for people responsible for production activities. — Improvement in information quality reported to top executive level turning into a more useful tool in order to assume decisions. — The fact that the organisation is led by one single Director, at the top executive level of the company has made of environment, quality and prevention an area of daily interest and focus for top management. — Optimization of the resources bound to development and maintenance of information systems. — Advising service integrated in production sites related to quality and environmental subjects. — Improvement of the capacity of production sites to solve problems, associated risks control and detection of new chances. On the other hand, Ferrovial has a strong record in managing acquisitions and mergers, creating value to its stakeholders. Integrated systems, including such related to Global Risk Management, help make acquisitions easier in order to create value to stakeholders as soon as possible. In particular in the context of pre- and post-acquisition due diligence processes. Concerning the appropriate management of acquisitions, integrated systems help in processing information, in transmitting culture and know-how, as well as in merging systems of both companies in an effective way.


The main problem caused by the different profile and training level of technical officers involved in quality and environmental matters from those involved in prevention was resolved by replacing prevention managers, as well as achieving and developing an ambitious and innovative prevention project to completely renew the prevention system. That innovative programme has contributed to meet attitudes, approaches and management skills, getting closer to an integrated continual improvement system. With regard to different and sometimes contradicting legal bodies on environment, quality and H&S, problems are found in the way to establish homogeneous objectives and management schemes. In order to solve these problems, we have recently finished at corporate level an innovative project aiming to integrate all legal requirements in one single information system. All the work sites can have on-line access to that system. With regard to the different perception of the three subjects, such as effective risks factors for the business, a supplementary effort has to be made regarding training and information, at work sites and staff levels.


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FORMULACIONES QUIMICAS S.A. Introduction Who are we, market, business content

Formulaciones Químicas S.A. was established in the year 1982. Right from the start, the company aimed at providing services for formulation of plant protection products for other national as well as international companies involved in Central American, South American and Caribbean markets. With the support of a chemical laboratory equipped with modern analytical equipment, Formulaciones Químicas S.A. has contributed to the development of formulations for its customers and has provided a strong support in the analytical area. Located within an extensive property of more than 18 hectares on the Pacific Coast of Costa Rica, close to the port of Caldera, the production plant is distributed among a compound of buildings with an area of more than 10.000 m², including office buildings, storerooms, production areas, service areas and extensive green areas.


The company is aware of the importance of its customers and the environment and has implemented systems based on ISO 9001 and ISO 14001 standards in order to manage quality and environmental matters. These systems have been certified by the Costa Rican entity INTECO and the Spanish entity AENOR.Our policy regarding quality, the environment and occupational health and safety is based on these pillars: Customer satisfaction. Prevention of pollution risks of our products because of foreign substances. Prevention of environmental pollution. Occupational health and safety. Compliance with legal requirements. Training of staff.Continual improvement.


To ensure the establishment, implementation and improvement of the environmental and quality management system, the executive committee ensures the management review of the essential resources. These include human resources, specialised abilities, organisational infrastructure and financial and technological funds. The executive board is formed by the President and the directors of the enterprise.


Before starting with the implementation project of the environmental and quality management system, the enterprise drafted a plan aiming to fulfil the following plans: — minimise production costs and residues — obtain a competitive advantage — improve the image regarding quality and environmental protection — improve the documentation system — evidence the efforts in the amelioration of quality and environmental protection — improve the organisation of operations. The decision of an integrated implementation was based on: — achieving the balance between the satisfaction of customers and of society; — making the effort once; — highlighting the importance of quality and environmental management in a company that uses and produces chemical products; and


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— the fact that standards had many things in common. Main steps of implementation GRAPHICS

Implementation Stages Initial stage: Search for a consulting body. Creation of the management committee. Creation of the implementation committee. (Responsibilities). Designation of a head of systems. Awareness of the personnel. (Activities) Intermediate Stage: Document creation and implementation. Qualification of internal auditors and lead auditor. Meetings of the management committee. Meetings of the implementation committee. Report on the developments achieved by the consulting body. Designation of the head as leader. Weekly meetings of the management committee. Qualification and awareness of the employees. Search for the certification body. Final stage: Audit of document analysis. Internal audits and adoption of corrective and/or preventive actions. Weekly meetings of the management committee. Objectives control. Visit and certification audits. Systems Maintenance. (Passivity)


The obstacles found during the implementation process were: distance between documents and reality, non-compliance of procedures, recordkeeping, lack of conceptualization of the systems, dependency on consultants, non-compliance of deadlines, incorrect concepts, and deficiency of commitment to average and low controls.


— — — — — — — — — — — — — —

— Continual improvement, lessons learned, the way forward or future direction

Qualified personnel. Deliveries in time. Reduction of re process. Reduction of complaints. Identification of negative aspects. Documented system. Improved organisation in warehouses and production areas. Improved project planning. Better recordkeeping. Improved relations with Government, customers and especially in terms of quality and the environment. Improved ability to respond to emergency situations. Less documents needed for integration. Better control of environmental aspects. One single management committee. (Group) Improved legislation knowledge.

stakeholders,

The organisation learned during the process to optimise processes and activities. It was understood that the planned activities contribute to achieving an efficient distribution of resources and residues. The future of the certification of the occupational health and safety system is considered under OHSAS 18001.


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General Motors Corp – Organizational Unit

Introduction Who are we, market, business content

This organization in General Motors Corporation is responsible for global design, manufacturer and sales of products for medium- and heavy-duty vehicle applications.


This GM unit sought to be certified as compliant ISO/ TS 16949:2002. This GM unit was certified to QS-9000, and in 2001 certified to 14001.


This GM unit analyzed its Quality Management System Model and compared it to its Business Process Model. The direction of the business and the basic links between the business processes including its Quality Management System became visibly evident.

Getting started including further steps in the development of an integration plan including milestones.

Comparison of the Quality Management System model (Figure 1) and the Business Process model (Figure 3). These living documents became the basis for internal and external process audits, and created the opportunity for integration of the QMS into the organization’s overall Business process model . Feedback GPDP

e ag s an ce M nan 0 Fi 70

GP DP

Product Teams 1100

Manage Materials 400

Market & Sell Product

Re s M our g c 80 mt. e 0

DP GP

G PD P

DP GP

200

Business Planning 100

Produce Product 500

DP GP

DP GP

Qu M alit g y 90 mt. 0

Customer Support 600

GP DP

Sy S stem u p 10 port 00

Design Product & Process 300

CUSTOMER

GP DP GPDP

Measurement

Figure 1. Quality Management System (High Level Model)


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The Example (see figure 2 below) of an Automotive Supplier Process Flow shows how main, support and high level processes may interact with the customer. This model is important for development and understanding of the key processes for product realization, their linkages and interactions, and where MSS requirements may impact in the automotive supply organization.

AN EXAMPLE OF AN AUTOMOTIVE PROCE SS FLOW Warran ty Payment

C U S T O M E R R E Q U I R E M E N T S

Qualit y Assurance

Purc hasing

Receive Sale s Order

Order Entry

Order Material

Sales and Market ing

Orde r / Re quest

Re ceive Mat eri al

Produc tion Cont rol

M arket Analysi s

Inspec t Material

Human Resources

Acct g.

Gen erate Work Order

Inv. Mate rial

Fac ili ties

Desi gn Engineeri ng DFMEA

Bui ld Order

Pro duct ion Co ntro l Plan

Produc t and Process Desi gn

Bid / Tender

C U S T O M E R

Shi p

Test

Manufact uri ng Engi neering PFMEA

Pro duct and Process De si gn Verification and Vali dation

Post Sales / Customer Feedb ac k

The Organization Courtesy IAOB Main Process

Sup port Processes

C.O.P.S

Figure 2 – generic process flow – automotive example


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S A T I S F A C T I O N

This GM unit applied the automotive generic process flow in figure 3 below showing the relationship of product realization and functional support. PROCESS FLOW C U

Financial

S

PDC

Accounts

T

Receivable

O

/ Payable

C

C

U S

E

S

Process

T

M

U

Product &

R

T

Design

O

O

M

S

M

Purchasing

E

E

R

R

A T I S

R E

S

MC/PC

Order

Manufacturing

Scheduler

Admin.

Planner

Q

Ship

& Test

A T

U

I

I

S

R

Sales &

Quality

E

Marketing

Mgmt.

F A

Facilities

M

C

E N T

T Business

Human

System

Product

Planning

Resources

Support

Teams

I O N

S

Key Processes

Foundational COPS

Activities

Figure 3 – This GM unit’s Product Realization Process Flow and Support Processes


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Customer

F

Support

A C T I O N


Top Management -This GM unit began laying the groundwork for the implementation and transition from QS-9000:1998 to ISO/TS 16949:2002. In the 4th quarter of 2002, a multi-level, cross-functional team was established and a team leader assigned to direct this effort. The multi-disciplined approach provided expertise from many aspects of the business, which enabled the transition from QS-9000 to ISO/TS 16949 to be disseminated throughout the organization in an efficient manner. Working as a team, this GM unit was able to ensure that the TS requirements were addressed and interpreted in a consistent fashion. Each team member was considered a TS subject matter expert in their respective functional area. All of this GM unit’s employees, including Top Management, relied on the team members to educate and convey information regarding the TS specification and the implementation requirements throughout the organization. The team quickly forged into the new TS technical specification requirements and began analyzing the basic components of the business. In an effort to identify gaps between current procedures and practices and those required by ISO/TS 16949:2002, Gap reviews (see Figure 4) were initiated in the various functional areas and disciplines throughout the organization. In addition, a subteam was formed to develop the Quality Management System model and the Business Process model. These living documents became the basis for the organization’s internal and external process audits. In reviewing these documents, the direction of the business and the basic links between the business processes became visibly evident.

Completed Gap Analysis Matrix (Example Only):

Clauses: Organization Procedure/ Practice

Quality System Gap Analysis - ISO/TS16949 Organization: Quality Systems Support Revision Date: 4.1 4.1.1 4.2.1 4.2.2 4.2.3 4.2.3.1 4.2.4 4.2.4.1 A A A A A A A A Conformance Status: Gap Action Conforms Initiated

5.1 A Action Comments

QSP4.1.1 QSP4.1.2 QSP4.1.3 QSP4.1.4 QSP4.1.5 QSP4.2 QSP4.2.1 QSP4.2.2

4.2.3c) - identification of changes is not defined

QSP4.4.1 QSP4.5 QSP4.16

Quality Manual

Quality Manual

Practice

4.2.4 - Storage, protection and disposition of records is not defined 4.2.2b) - Procedure cross reference matrix is being updated via gap analysis process 4.2.2a) - details of and justification for exclusions are not 4.2.2 c) defined - process interactions are not Note: defined Consideration needs to be given to changing the requirement numbering scheme from QS to ISO/TS or create a cross reference matrix 4.2.1 c) & d) - completed gap analysis will determine 4.2.4.1 compliance - A process does not exist nor is one documented for identifying applicable regulatory and customer record requirements

Figure 4 This GM unit gap analysis example showing application of to Quality System support function


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Once the business processes and links were identified, the next step involved developing a better understanding of the activities within each process and the associated inputs and outputs. This was accomplished by using the Process Mapping approach. In addition to inputs and outputs, the process measures were also identified and shown on the process maps. This was one of the keys to a complete understanding of the business. If business processes are not measured, the basic health of the business is unknown. Applicable business process metrics are an important part of understanding the business as a whole. A healthy business will be reflected in the process metrics. In cases where trouble spots exist, the metrics will indicate which process should receive the greatest focus. In addition, a firm understanding of the process metrics is an important part of maintaining a healthy business; however, reacting to the measures is even more important. If a process metric consistently indicates a problem exists, and no action is taken, the measure becomes non-value added. When corrective action is taken, a review to determine the effectiveness of the action should also be initiated. The TS 16949 specification not only encouraged suppliers to follow this example, it actually required it. The methodology used at this GM unit for gap closure requirements derived from the gap analysis matrix included: — Resolve all identified procedure/instruction and practice non-conformities. — Keep Gap Analysis Matrix sheets updated to determine progress.· Submit updated Gap Analysis Matrix sheets to the process owner for review followup and maintenance. — Monitor gap closure activity and be prepared to review the status of Gap Analysis activities at each gap closure meeting. — At the conclusion of an organization’s gap analysis and follow-up activities, all procedure/instruction and practice matrix entries must be shown as being in conformance. The idea of expanding the business knowledge beyond the individual components to the relationship between the components enabled this GM unit to more efficiently understand how and where improvements should be implemented. This then, fostered an integrated and continual improvement approach toward the customer's perception of this GM unit’s products and services. Another sub-team was also established to develop a communication plan for ensuring the entire workforce was informed of the transition from QS 9000 to TS 16949. It was determined that the most efficient and effective way to accomplish this task was to identify the high-level differences in QS 9000 and TS 16949 in the form of a 7-minute TS Awareness video designed to be shown in the regular staff, group, and department meetings. In addition, some supplemental Q&A sheets were provided to the managers and supervisors to relate the transition to an individual and personal employee level. ISO/TS 16949:2002 Clause # 6.2.2.4 requires the organization to have a process for motivating employees to achieve quality objectives, to make continual improvements, and to create an environment to promote innovation. This GM unit has several programs designed to motivate and encourage employees to initiate improvements; however, there was some concern regarding the understanding of these programs and the potential inconsistency in employee responses when this issue was raised with employees at this GM unit. To address this issue, the Human Resource department developed an Employee Enthusiasm model which was cascaded throughout the organization. The model was designed with the Process Mapping format and provides a host of motivational programs and measures. With the heavy emphasis on Product Realization in Section 7 (Product Realization) of ISO/TS 16949:2002, a significant amount of time was allocated to


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reviewing the practices and procedures. These reviews included both product and manufacturing engineering areas, as well as the gate reviews (decisions to move forward) conducted by the cross-functional product teams. Issues such as product and process validation, verification, control plans, non-conforming product identification, analysis of data and qualifications of engineers were given major consideration. These issues were evaluated against the ISO/TS 16949:2002 requirements to determine compliance level. The key to the successful implementation of ISO/TS 16949:2002 at this GM unit was the commitment and full support of Top Management. This unit’s Top Management continually expressed complete confidence in the assigned team to accomplish the task of implementing TS and they actively participated, with the team, in training seminars and work sessions. The new ISO/TS 16949:2002 standard requires Top Management involvement (not just a commitment) in the business process. The management review input requirements identified in section #5 of the TS technical specification were, for the most part, already being performed in various business meetings conducted at the staff level. In an effort to visually match the TS management review input requirements with the management review meetings, a Management Review Meeting matrix was developed. Similar to the premise of the Employee Enthusiasm model, the Management Review Meeting matrix enabled a better understanding of the avenues for the required TS input items, resulting in improved consistency in responses regarding management review questions. The ISO/TS 16949:2002 technical specification is very new to suppliers of automotive customers and the change from QS 9000 required a little different insight into how the heart of the business operates. Prior to ISO/TS 16949:2002, this GM unit applied the QS 9000 individual element approach to their internal audit activities. Metrics were presented in a cross-functional format; however, in many cases they were viewed in a functional context rather than considering the links between functional areas. Under the premises of ISO/TS 16949:2002, the functional areas may not necessarily coincide with the business processes. A business process may contain multiple functional responsibilities. In an effort to capture the applicable TS clauses associated with each main business process, an audit matrix was developed. In addition to developing the audit matrix, This GM unit completed a full cycle of process audits in accordance with ISO/TS 16949:2002 pre-audit requirements. Also, a three-year TS audit schedule was established. The progress of the team’s efforts throughout the entire implementation process, were tracked via a Microsoft Project spreadsheet. The progress chart was strategically located in an area where This GM unit’s Top Management could review the activity for their respective functional area(s) on a daily basis. This communication link provided an added sense of accountability to the functional representatives working to ensure a smooth transition from QS 9000 to TS 16949. Now that this GM unit has implemented the changes necessary to improve the business and comply with the ISO/TS 16949:2002, the audit scheme is approached in a little different manner. For instance, during audit interviews, interviewees are asked to provide more detailed responses concerning inputs and outputs related to their business process. This was initiated in an effort to ensure that they understand the overall objectives of the business and, in some cases, to provide additional evidence of training and competency on their particular job assignment. As final preparation for the actual ISO/TS 16949:2002 certification audit, the implementation team functional representatives were asked to (1) perform informal pre-audits, using some pre-established guides within their associated functional areas and (2) ensure that continual improvement, corrective action, and preventive action programs and techniques were identified and communicated throughout the organization. In addition, they were asked to have


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examples of each readily available for review. Assessment, review and addressing obstacles

The quick transition from QS-9000 to ISO/TS 16949:2002 at this GM unit was a positive change toward customer focus by providing a mechanism and process for ensuring all customer and management system requirements are addressed within all aspects of the business. The culture at this GM unit has changed from viewing the business as several independent functional elements (QS-9000) to considering the business as a system comprised of several interactive processes linked together and focused on common business goals and objectives (ISO/TS 16949:2002). This change is not one that is simply endorsed by this GM unit’s Top Management; they are actually leading the charge. There are frequent employee meetings, with Q&A, to ensure indiviuals understand their role in supporting the overall business goals and objectives. Employees are kept informed of the business "Hits" and "Misses" in the market place which provides a sense of ownership and urgency in resolving customer concerns and preventing customer dissatisfaction in the future. At this GM unit, a well trained, well informed workforce makes the difference when it comes to leading as opposed to simply keeping the pace.


Perceived benefits: — Improved and consistent registrar oversight and auditor training. — Process based audits focusing on customer satisfaction. — Global acceptance of the TS standard in place of 3 European standards and QS-9000. — Incorporation of improvements learned through the implementation of QS9000" . — Integrated internal audits. In addition, the integrated process approach and relentless effort on the part of this GM unit TS Implementation Team significantly contributed to the recommendation to this GM unit succeeding as the first North American GM site to be certified to ISO/TS 16949:2002. The requirements of ISO/TS 16949:2002 in the Quality Management System were cascaded to ensure constant analysis of the business processes, reaction to process metrics, and effective corrective action reviews, while continually applying a proactive approach to avoid potential concerns and issues in the future. In addition a video was created describing TS16949 implementation and integration into the business system of the GM unit. The video was shown to all employees during the activities leading up to certification. The video was also used by a number of GM units and made available in the GM Library. The culture at this GM unit changed from viewing the business as several independent functional elements (QS-9000) to considering the business as a system comprised of several interactive processes linked together and focused on common business goals and objectives (ISO/TS 16949:2002). This change is not one that is simply endorsed by this GM unit’s Top Management; they are actually leading the charge. There are frequent employee meetings, with Q&A, to ensure individuals understand their role in supporting the overall business goals and objectives.

Continual improvement, lessons

Employees are kept informed of the business "Hits" and "Misses" in the market place which provides a sense of ownership and urgency in resolving customer concerns and preventing customer dissatisfaction in the future. This culture at


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learned, the way forward or future direction

this GM unit promotes a well trained, well informed workforce to make a difference and recognizing the leadership role of each individual to improve the overall business system.


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GKN Operating as a global business – the management system as a framework for efficient consistent operation of business processes and integration Introduction

The introduction of the process based standard ISO 9001:2000 together with the introduction of ISO/TS16949 provided a unique opportunity for the driveline businesses of GKN. GKN Driveline supplies over 40% of the passenger car driveshafts in the world from more than forty locations in over thirty countries. The growth of the business had taken place through a mixture of acquisition, licensing, joint ventures and organic growth. The resulting business was dynamic, successful but when presenting to global customers such as Ford, GM, Toyota and the like, it appeared as a collection of independent businesses, each successful in its own right but not effectively sharing knowledge on corrective actions when problems occurred or improvement activities. The development of a global management system for the automotive industry meant that every site needed to change its registration to comply with customer requirements; the introduction of ISO9001:2000 provided the opportunity to structure a global system that was based on the processes of the organization, rather than the management structure, and the processes were similar from site to site. The result was the GKN Driveline Management System, based on business processes, aligned to quality management system requirements – including customer requirements and additionally the requirements for environmental management systems in ISO 14001 and Health and Safety Management System requirements in OHSAS 18001. The top-level manual for this global system is five pages long, the system is largely invisible to employees. Yet today it provides for the consistent operation of a business with 21,000 employees in 30 countries making 80 billion driveshafts each year.

Customer Requirements

GKN Driveline is committed to the achievement of customer satisfaction, the foundation of which is to meet customer requirements both in terms of operation and of product quality, cost and delivery. That said, in operating as a single global entity, there is a compelling case for a single management system, rather than different faces to different customers. The case for a single system is also founded on the potential for efficiency both in operation and in communication across the global business.

The system and executive management

One of the issues with traditional management systems, they always seemed to relate to management involvement. This would manifest itself both through auditing, where evidence of management review was at best sketchy or indeed in terms of management involvement; most quality professionals would recognize a situation where the level of management involvement in quality was in direct proportion to things gone wrong! The process based system starts with the business plan in that the realization processes must be defined for the organization. Only the management of the organization can undertake this, it is intuitive, therefore establishing management as integral to the system, almost without being aware of its existence. That has become the basis of the philosophy behind the GKN Driveline Management System; a system that provides for consistent operation of all the processes of the business, that adds value to the organization and is intuitively best practice and therefore integral to the business. This is a long way


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from the old basis of control systems that were policed by quality personnel and created additional work because they were not aligned to business objectives. What, when and how

The opportunity for establishing a globally consistent management system came with the introduction of ISO 9001:2000 and of ISO/TS16949. This created an imperative where every operation in GKN Driveline had to change its management system and seek new third party registration. A management system model was provided to each location, together with a plan for their transition. This made life easier for the operations, and since every plant received the same model, over a period of twelve months global alignment was achieved – far easier than if the change was initiated as a head office instruction! The reality was that twelve months saw the change in registration – with one or two exceptions, but three years work has led to functional alignment so that the system operates in a consistent manner globally.


Most easily defined as a process flow – one of the side effects of our management system is a tendency to describe all activities in process terms. The definition of a process requires it to be positioned within the management system model, it must have a customer, measures for acceptance of the result or product by the customer and it must have an owner for the process. Without these basics, then further discussion would be necessary. In the case of the IMS, there were three customers, with different objectives. The first was the external customer, who as a condition of contract required third party registration of compliance with ISO/TS16949. The second customer was the executive management team of GKN Driveline whose strategy was to migrate from more than 40 separate operations to a single global business with multiple locations, while the third customer was the plants themselves, who had to take a functioning system and while maintaining operations, migrate to a new management system which at least provided for maintenance of current quality performance. The process GKN Driveline defined had the following steps: — Define a management system model, based on the principles of ISO 9001, that identified the top level of processes of the organization and linked them to the requirements of ISO/TS16949, ISO 14001 and OHSAS 18001. — Develop a training package to explain the principles of process management, relevant to the operation of GKN Driveline. — Deliver the training to quality managers and construct a schedule to work with each location on a transition plan to the new management system model — Develop the supporting tools for:

Assessment and review

−

Training of other personnel

−

Measurement of performance

−

A process audit manual for verification of system performance

−

Global tools for concern management, problem solving and performance management

The model provides, in alignment to ISO 9001, tools for measurement and evaluation. The development of a process audit manual followed the introduction of the system, and provides for auditing of any business process, for requirements related to quality or environment or health and safety, and it can be related to the system, the workplace or the product of the related process. The audit manual verifies compliance with the defined system and as such results in either evidence of compliance or corrective action.


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In parallel, GKN Driveline has introduced a business excellence model. This is used for structured assessment of the organization. It uses trained “excellence champions” to facilitate and results in identification of the strengths and weaknesses of each operation. It is the basis for continual improvement of the organization. Other results, from process measurement, from second and third party audits and from benchmarking, are combined with the audit and assessment results to provide input to the strategic planning process, thereby integrating management review with the planning for future operation of the organization. Corporate governance and social responsibility

Since introduction of the global management systems ,the requirements, to demonstrate sound corporate governance, and to act in a socially responsible manner, have become fundamental requirements of both government and shareholders, and indeed all stakeholders in business organizations. GKN Driveline has always aimed to operate the business with integrity, where the minimum requirement is regulatory compliance. The management system today provides the basis for demonstrating the integrity of actions to stakeholders. The presence of a verified management system, in operation is the basis for corporate governance. It applies, via the management system model, to all business processes and is controlled through assignment of ownership and measurement of every process. Corporate Social Responsibility is catered for both by processes within the model and the measurement and evaluation of all business processes.

The way forwards

GKN Driveline has a new management system model. It is a product of efforts of recent years, and has come from work on corporate governance, rather than changes in customers or other requirements. The model is a development, a refinement, of the original rather than a step change, and the Company believes it will continue to evolve. GKN Driveline has improved customer satisfaction – not only through a common face to customers, but also through the operation as a global business. As an example, three years ago GKN Driveline set the objective for external customer rejects to be 0ppm. Year one achieved a 20% improvement, largely through additional inspection and just providing a focus. Year two saw a 75% reduction so that the global performance related to supply of over 40 million products fell to approximately 30ppm, a level now maintained for two years. This – and other performance improvements – have supported this through the introduction of global tools for concern management, for problem solving and for real-time knowledge sharing. There are global initiatives, developed from analysis of performance of the global system to improve the quality of product launches, to train first line supervisors throughout the organization and for the management of customer satisfaction. The integrated management system remains mainly invisible to the majority of people. It is integral to the business, it adds value, and everything in the business can be related to it – but it remains like the skeleton within a body – an invisible framework for efficient operation of functions, rather than a control system for regulation of management by an external authority.


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GKN Supporting graphics: The framework is the management system

Corporate Governance Overview Legal obligation relating to standards for company reporting Mandated through Corporate Audit. Provides a mechanism to understand and manage business risk Establishes a company-wide culture of sound business practices and ethics. Leads to effective business processes and measurement of efficiency as a basis to manage and monitor risks.

An opportunity to improve the effectiveness & efficiency of the management system !


BUSINESS PROCESSES Business Planning and Review REALISATION PROCESSES Manage Customers

Product & Manufacturing Process Development

Manufacture the Product Manufacturing Development

SUPPORT ACTIVITIES Manage Suppliers

Information Systems

Integrated Loss Documentation Prevention requirements

Finance

IPR & Licensing

Human Resources

MEASUREMENT CONFORMITY AND IMPROVEMENT Monitoring & Measurement

Improvement

© GKN Driveline 2006

Conformity


Map the risks to visualize the cause and effect relationship It is a cause with an estimated probability of occurrence that has a severity of effect on business performance.

Causes (Risk)

CAPM

Effect (Outcome)

Analyze the risks and identify the gaps

Gaps are related to control process definition, accountability and measures to effectively manage the business




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C U S T O M E R S A T I S F A C T I O N

GKN Driveline Management System External Requirements

Documentation System

Customer

¾ Top level Quality Manual

ISO/TS16949, Q-1, APQP …. Environmental Standard Approach

Environmental Health & Safety Business Excellence ……..

QS9000 / ISO 9000 ISO 14001 GKN Driveline Standards ……..

External Requirements Documentation System

GKN Driveline Redditch GKN Driveline Birmingham (Erdington & Hamstead) GKN Driveline Walsall GKN Freight Services

¾ Top level Quality Manual

GKN plc

GKN Driveline

GKN Driveline Management System

¾ Detailed procedures, usually Function based

¾ Detailed procedures, usually Function based

¾ Supported by local Instructions / specifications

¾ Supported by local Instructions / specifications

¾ Detailed training (induction / on-going)

GKN Driveline Company

¾ Referencing applicable GKN Driveline Standards as required ¾ Internal audit and corrective action system

Regulatory

Environmental Law Health & Safety ……..

¾Usually separate documentation systems for: • Health & Safety (OHSAS 18000) • Environment (ISO 14000)

GKN Driveline Alamance GKN Driveline Auburn Hills GKN Driveline Bowling Green GKN Driveline Columbia GKN Driveline Durham GKN Driveline Roxboro GKN Driveline Sanford GKN Driveline Sanford PF

¾ Referencing applicable GKN Driveline Standards as required

GKN Driveline Sloveneja

GKN Driveline Cheonan Velco n

¾ Internal audit and corrective action system

GKN Driveline Only GKN Driveline + Local

Purpose

Vision & Mission Policy Manuals e.g. Quality Manual

Defines approach and responsibilities

Records and results

GKN Driveline Rayong GKN Driveline TOYODA

GKN Driveline Charqueadas GKN Driveline Porto Alegre

¾Usually separate documentation systems for: Health & Safety (OHSAS 18000) Environment (ISO 14000)

GKN Driveline Montevideo

GKN Driveline Singapore Unidrive Univel

GKN Driveline Carcastillo GKN Driveline España GKN Driveline Lazpiur GKN Driveline Legazpi GKN Driveline Vigo GKN Driveline Zumaia

GKN Driveline Bruneck GKN Driveline Firenze

operate as a global company

Instructions / Specifications Other Documentation

Defines who, what, when

common face in front of global customers common processes and ways of working

Answers how

sharing of best practice Records information as evidence of activity

reduced duplication and complexity



Shanghai GKN Drive Shaft Jilin GKN Norinco Drive Shaft Fujiwa Machinery

Taiway

GKN Driveline Penang

Advantages of an integrated management system:

How

Job Instructions / Specifications

GKN Driveline India (Faridabad, Dharuhera, Gummidipoondi)

Transejes Homocinéticas de Columbia



Procedures

GKN Driveline Fukushima GKN Driveline Nagoya GKN Driveline Osaka GKN Driveline Oyama (RPDC & Viscodrive) GKN Driveline Tochigi GKN Driveline Tokyo GKN Driveline Utsunomiya GKN TOYODA Driveshafts Akatsuki Fuji Kosan Haga



Policy

GKN Driveline Lohmar GKN Driveline Kiel GKN Driveline Mosel GKN Driveline Offenbach (Offenbach & Waldhof) GKN Driveline Rösrath GKN Driveline Trier GKN Kaiserslautern

GKN Driveline Oleśnica

¾ Detailed training (induction / on-going)


Procedures

GKN Driveline Arnage GKN Driveline Carrières GKN Driveline Florange GKN Driveline Ribemont


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Subsidiary companies Joint Ventures

GKN Driveline Management System Certification Requirements

GKN Driveline Management System ¾ Integrated system covering: ¾ Quality (ISO 9001: 2000 / TS16949: 2002 Process Based) ¾ Environment (ISO 14001: 1996) ¾ Health and safety (OHSAS 18001: 1999)

ISO 9001: 2000 TS16949: 2002

Integrated Management System

ISO14001: 1996

Consisting of: ¾Top level Manual ¾ Minimum number of GKN Driveline process based standards ¾ Supported by GKN Driveline/local specifications and instructions

Based on Best practice

¾ Detailed training programmes (induction / on-going)

OHSAS18001: 1999

¾ Reference to local standards as required ¾ Divisional process based audit system to be implemented locally



PROCESS AUDIT


Based on GKN Driveline Management System

-------------- GKN Driveline ---------------

Driveline Processes & Owners

Procedures

Our activities and intention

What we must do to satisfy requirements

Process Approach

Local

Specifications

Work

The purpose of a process approach is to ensure that customer requirements are met. Identifying and then meeting customer requirements is necessary to achieve customer satisfaction. Customer satisfaction is essential to achieve business success.

Instructions

To what standard



How it will be done


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Process approach consists of four main elements:

Processes must have: -

Risk managed, (KPI)

establish leadership and responsibility Activities / Resources

(Supplier) Input

provide resources identify each process and map all significant processes

Output (Customer)

Responsibility

Creating a process driven organisation

establish process measurement and improvement activities

GKN Driveline Management System © GKN Driveline 2005




Definition: Business Processes C U S T O M E R

Realisation Processes

I N P U T

Process 3

C U S T O M E R

Process 1

Process 2

O U T P U T

Process 4 Health & Safety Human Resources

Environmental Purchasing

Documentation Control Finance

Information Systems

Support Processes

Measurement & Improvement


BUSINESS PROCESSES Business Planning and Review REALISATION PROCESSES Manage Customers Manufacture the Product


Information Systems


Finance

IPR & Licensing


Improvement



CAPM



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Conformity

Human Resources


EXAMPLE KEY PROCESSES OF AN ORGANISATION Management Processes

Business Planning Policy & Objectives Management Review

Customer Oriented Processes

Manage Customers

Support Processes

Measurement, Conformity & Improvement Processes

ISO 14001 Clauses 4.1, 4.2, 4.3.1, 4.3.2, 4.3.3, 4.3.4, 4.4.1, 4.4.3, 4.6 4.3.1, 4 .4.3, 4.4.6 4.3.1, 4.3.2 4.4.3, 4.4.6 4.4.6

OHSAS 18001 Clauses 4.1, 4.2, 4.3.1, 4.3.2, 4.3.3, 4.3.4, 4.4.1, 4.4.3, 4.6 4.3.1, 4.4.3, 4.4.6 4.3.1, 4.3.2 4.4.3, 4.4.6 4.4.6

4.4.6

4.4.6

6.3 6.4 6.3

4.1, 4.4.4, 4.4.5, 4.5.3 ----4.4.6 -----

4.1, 4.4.4, 4.4.5, 4.5.3 ----4.4.6 -----

6.1, 6.2

4.4.2

4.4.2

8.1, 8.2.3, 8.2.4, 8.4 8.5.1 8.2.2, 8.3, 8.4, 8.5.2, 8.5.3

4.5.1

4.5.1

4.3.4 4.4.7, 4.5.2. 4.5.4

4.3.4 4.4.7, 4.5.2, 4.5.4

ISO 9001:2000 Clauses 5.1, 5.2, 5.3, 5.4, 5.5, 5.6

7.2.3, 8.2.1

Product/Service & Manufacturing/Provision Process Development Realise Product/Service

Manage Suppliers (approve supplier, place order, approve supplier’s plant, manage supplier) Documentation Control (control of documents & quality records) Work Environment Finance (prepare accounts, product / process costing, financial transactions, prepare budget & forecasts, capital expenditure procedure, produce performance & cost data) Hum an Resources (provide staff, train & develop staff, manage staff performance) Monitor & Measurement (incl. calibration) Improvement (continual improvement) Conformity (measure process and product/service, analyse data, corrective and preventive action, concern management, audit system)

7.1, 7.2, 7.3 7.5.1, 7.5.2, 7.5.3, 7.5.4, 7.5.5, 7.4.1, 7.4.2, 7.4.3 4.1, 4.2


GKN Driveline Management System C U S T O M E R R E Q U I R E M E N T S

BUSINESS PROCESSES Business Planning and Review REALISATION PROCESSES Manage Customers CAPM



Information Systems


Finance


Improvement

Qualify Supplier

Place Business

Supplier Certification Requirements

S

Product Specification (Design STDS)

S

I

S Material Specification (Material STDS)

S

I

Supplier Classification

Conformity


Manage Suppliers

I Commodity Codes

IPR & Licensing



Know the Market

Manufacture the Product

Qualify Part BOP Standards

Polymers

Manage Suppliers I

Cost of Poor Quality

I Reasons for Rejection & Deviation

S Lubricants

T. Jones




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Human Resources


GKN Driveline Management System Human Resources

Provide the People

Equip & Align The People

Manage Performance I Minimum Requirements for Assessment

IGKN Driveline STD Definitions

B. Johnson

GKN Driveline Management System C U S T O M E R R E Q U I R E M E N T S

BUSINESS PROCESSES C U S T O M E R Product & Manufacturing Process Development Key Performance Indicators (Risks):S A SUPPORT ACTIVITIES • ppm customer rejects T • Customer concerns repeats Information I LOGISTICS: Systems Integrated S Manage Human IPR & Finance Loss F Suppliers Resources Licensing • Delivery performance vs customer Key Performance Indicators (Risks): Documentation Prevention A requirements schedule • Accident Frequency Rate C • Accident Severity Rate T • Premium freight cost CONFORMITY AND IMPROVEMENT • Serious InjuryMEASUREMENT Rate I MANUFACTURE: Monitoring O • CO2 emissions & • Production scrap Improvement Conformity N Business Planning Key Performance Indicators (Risks): and Review • By commodity actual/committed • volume and prices REALISATION PROCESSES • Suppliers ppm reject Manage • Supplier No.Customers of concerns Manufacture the Product • Delivery performance CAPM

Measurement



• Manufacturing process capability © GKN Driveline 2005

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Responsibility assigned

Risks managed

Hijos de Rivera S.A. (ESTRELLA DE GALICIA) Introduction Who are we, market, business content

Hijos de Rivera S.A. is constituted, nowadays, like a global business corporation, not only as a beer factory, but also with ample activity in sectors such as that of mineral water, wine, orujo (eau de vie) liquor and cider, as well as an important implementation on the service sector, covering from distribution and logistics to comprehensive development of infrastructures in the catering sector, including management of their own premises. Today, the company is managed by the fourth generation of the Rivera family, remaining loyal to its origins with 100% Spanish capital and as a family-run business. In recent years, more than 70 million € have been invested in manufacturing and distribution processes, to ensure the company remains at the very forefront in terms of technology and logistics, investing in a virtually automated factory prepared for the future. ESTRELLA DE GALICIA is more than just a trademark –loyal to its tradition, it has been able to blend responsible leadership with the social commitment that its proximity to society requires. Hijos de Rivera is a brewer company with five brands in the market: Estrella Galicia, our special beer; 1.906, extra beer; “HR”, light beer; “River”, nonalcoholic beer; and our most modern beer “River Zero”, beer containing 0.0% of alcohol.


In today’s competitive marketplace, subject to constant changes, it is essential that companies adopt new policies and strategies that allow them to continuously improve their processes and adapt to the needs of the market, with the aim of guaranteeing their success in the long term. For this reason, at the beginning of 2005, Hijos de Rivera started to develop a strategic project for managing quality (ISO 9001), the environment (ISO 14001) and food safety (ISO 22000). This project made it possible to have a working system that would become a dynamic tool aimed at guaranteeing compliance with legal requirements, satisfying our customers, and ensuring food safety throughout the whole of the production and distribution process until reaching the consumer, at the same time as minimising impact on the environment. Hijos de Rivera is committed to satisfying its customers’ demands, complying with legal requirements, as well as developing operational standards that guarantee the quality and safety of its products. As a result, the main lines of action for putting this project into practice may be summarised as: — Actions involving environmental responsibility − Analysing supplies and results, offering a global overview of how resources are efficiently used − A Waste Management plan, which includes classifying residues by type, using a separation technique based on the possibility of re-use − The design and implementation of operational control methods to reduce negative impacts derived from emissions and waste created. − Evaluation of options for improvement (by changing the raw materials


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−

−

used, good internal management practices, internal and external recycling, etc.) Analysing the viability of BAT (best available technologies) recommended for the sector, which apart from revealing the environmental advantages of the implemented strategy, constitute the starting point for defining programmes for improving the environmental control of our installations Planning and implementing the selected measures and monitoring their efficiency through environmental indicators

Compliance with these points has undoubtedly contributed towards beginning a process of continual improvement, by providing key instruments for monitoring and controlling environmental impacts, resulting in prompt improvements, a feeling of success, a stimulus that gives motivation, and most importantly, generating the ability to: − Put effective preventive measures into practice, and − Identify and solve problems in an efficient manner — Customer service – Customer satisfaction channels Hijos de Rivera provides its customers with a series of communication channels allowing constant contact with the company, based on a constant follow-up of their requirements and measuring the quality of service and product quality. It also has systems designed to measure customer satisfaction in relation to the products and services provided. This way, the Company has the information it requires to correctly respond to the needs and concerns of its customers, and to improve its service and products. — A commitment towards food safety The supply of safe foodstuffs by Hijos de Rivera is reinforced by the implementation of a food safety system, the purpose of which is to harmonise the different types of foodstuff control. Food safety depends on the efforts of all of those involved in the different stages of the production chain, from the farmer to the end consumer: it is a responsibility that is shared “from farm to fork”, as every individual stage influences the whole production cycle. The system and executive management’s position (leadership response)

As a result of this management strategy, the Quality Committee was created, to serve in the decision-making process and ratify the Management’s commitment towards the implementation of the System. The Quality Control Committee is the body ultimately responsible for establishing the company’s Policies and Objectives in terms of Quality, the Environment and Food Safety. This shows their commitment to develop and implement the Management System and the continual improvement of the organisation. The main responsibilities of top management within the framework of the Integrated Management System are: — Providing Hijos de Rivera with the necessary structures, human resources and technology for the development of its activities, in order to achieve continual improvement, prevent pollution and guarantee that its products are


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safe for human consumption. — Communicating and understanding the importance of complying with customers’ requirements, as well as legal and other requirements. — Ensuring that the Quality Control, Environmental and Food Safety Policy is: − Adapted to the organisation’s goals, the nature and type of its products and services, and therefore a driving force behind strategies aimed at minimising any negative environmental impacts that may be caused.


−

This includes the commitment to: o Comply with our customers’ requirements. o Comply with all legal or other requirements in terms of quality levels, respect for the environment and food safety.

−

To provide continual improvement in the efficiency of the management system.

Another important facet is the creation of a multidisciplinary team working in the field of food safety, with the participation of the main heads of the technical department. Their main duties are to: — Be aware of any changes in products, processes, legal requirements etc. that may have an impact on food safety, and to make sure that these changes are taken into account in order to keep the food safety control system up to date. — Identify and establish guidelines for action with emergencies and/or accidents having an impact on food safety. — Identify training requirements for personnel involved in activities connected with food safety. — Create and verify flow charts for the products included in the food safety control system. — Identify any dangers associated with the product and evaluate their risks in terms of impact and probability. — Identify critical control points and their critical limits. — Establish monitoring systems and actions required when critical limits are exceeded. — Analyse data taken from the food safety control system, such as results for verifying the HAPPC plan, validating control measures and audits.


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Development of Diagnostic Work Initial stage:

Technical Interviews

planning

Development of Diagnostic document

Contrasting task list

Defining the result of: 9 The study of the current situation 9 Scope of work 9 Significant areas and programmes

t interviews 9 Conducting after approving the sampling plan

9 Organisational diagram and levels

9 Actions to be taken in terms of certification . 9 Contrasting the result of information obtained during interviews with task list.

9 Degree of compliance with legal requirements 9 Proposals for actions aimed at continual improvement and sustainability

9 Interview structure 9 Completion programme

FOLLOW-UP MEETINGS


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Development of the Action Plan DOCUMENTATION PRODUCED

Presentation Presentation initial formation of of initialthe formation proyect the proyect 1

IMPLEMENTATION AND CERTIFICATION Formation of Formation of system system and specific and specific certification 4 certification

Formal Formal definition of definition of system system processes and processes and documentation2 documentation

Implantation of Implementation integral of integrated management management system system 3

Verification Verification 5 audits audits

6 Certification Certification process process


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The following working methodology was defined in developing the project: FUNCTIONS: Controlling and monitoring the performance of the working group (WG)

QUALITY COMMITTEE

PERSON IN CHARGE OF SYSTEM

Approval of documents as part of the Management System FUNCTIONS SHARED BY ALL MEMBERS OF THE COORDINATION COMMITTEE Coordinating WG meetings

COORDINATION COMMITTEE

Follow-up of planning established in terms of preparation, approval and implementation of documentation.

Head of Quality, the Environment, Food Safety Head of the Organisation Representative of the Interaction Group

Informing executive management about work carried out by WG. Being present at meetings by WG when considered necessary. Evaluating the results obtained by the WG. Coordinating the logistics of WG meetings.

FUNCTIONS Analysis and preparation of documentation regarding interaction between different processes.

INTERACTION GROUPS

FUNCTIONS Direction of members of WG. Preparation of meeting contents. Chairing meetings.

COORDINATORS OF WORKING GROUPS

Drafting minutes of meetings and distribution to Head of Quality in HR. Monitoring work defined. Obtaining planned objectives Encouraging participation by all members of WG. FUNCTIONS Playing an active role in meetings


21 WORKING GROUPS

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In order to ensure implementation methods that guarantee the monitoring and understanding of the degree of maturity of the Quality Control, Environment and Foodstuff Safety Management System, Hijos de Rivera started the implementation stage, which involved verifying “That work was carried out according to the methods documented in the processes defined in the working meetings with the Operational Groups”. The implementation stage helped in detecting possible actions for improving the documentary definition of the processes, as well as starting out on the path towards continual improvement, within the framework of the active participation of all of the staff working for Hijos de Rivera. Based on the requirements detected during the implementation process, a specific training plan was developed at the same time focused on the areas of: Quality control, Foodstuff safety, Environmental management, internal auditing process. The aim was to continue with the initial process of awareness and training in order to: — Avoid actions that did not comply with the management system that was designed. — Ensure the internal auditing procedure was accurately carried out.


Throughout the whole project, the Quality Control Committee carried out exhaustive monitoring of the results obtained at the meetings held by different working groups, defining actions aimed at guaranteeing the success of the project and maintaining the planning that was initially established. Once the implementation stage was complete, it was necessary to evaluate the efficiency of the Integrated Management System, together with compliance with the requirements of the reference standards, carrying out an internal audit before the certification process. The verification stage made it possible to: — Identify opportunities for improvement. — Identify facts for the decision making process.


The development of the Integrated Management System for quality, the environment and food safety is today a source of strength in terms of: — Improving internal management, making it possible to effectively evaluate how the organisation operates. — Detecting and eliminating errors, as well as their causes. — Minimising the demand for natural resources. — Guaranteeing work experience and training. — Implementing continuous management instruments for measuring and monitoring the capacity of the processes. — Implementing systematised working methods.

Continual improvement, lessons learned, the way forward or

As part of our efforts to ensure the process of continual improvement, the following strategic lines of action are planned for 2007: — To continue making progress with the process of implementing the recently certified system, in order to achieve a higher level of maturity. — The design, development and implementation of the requirements defined in


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future direction

EEC Regulation 761/2001 of the European Parliament and Council dated March 19th 2001, enabling organisations to voluntarily adopt the European Eco-Management and Audit Scheme (EMAS). — The implementation of the ISO 9004 advanced management model, based on a commitment towards continual improvement and supporting actions focused on achieving total quality.


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IBM Introduction

IBM is the world's largest information technology company. Measured by revenue, IBM is the biggest provider of IT services, hardware and financing, and second in software. (Information date 04/05). IBM Global Services is the world's largest information technology services and consulting provider. (5/05) IBM has the world's largest IT research organization, with more than 3,000 scientists and engineers working at eight labs in six countries. (5/05)

Customers and other stakeholders

IBM Stakeholders: Customers, shareholders, employees, suppliers, global and local communities, including but not limited to aspects of: society, health, environment, education, industry, technology and innovation. IBM’s actions are driven by these values: — Dedication to every client's success. — Innovation that matters, for our company and for the world. — Trust and personal responsibility in all relationships.

Leadership

Corporate management systems are the responsibility of the Corporate Executive Vice President who reports to the CEO. Each management system is the responsibility of a Corporate Vice President. Through senior management involvement with quality, commitment is clearly demonstrated and communicated to all employees.

Getting started and further steps in the development of an integration plan.

The quality management system standards ISO 9002 and ISO 9001 were the first international standards implemented. Each certification was implemented independently at all manufacturing and development locations. ISO 14001 was implemented as a single worldwide certification in 1996. Since then the quality management system has evolved to a single worldwide certification with a high degree of integration of the requirements of both ISO 14001 and ISO 9001 into the overriding business management system. A process approach is used to address management system standards integration. Executive ownership is established and project leaders are assigned. Project plans are put in places which include gap analysis to identify gaps and existing commonalities. Additional management system standard requirements are integrated into the appropriate processes of business areas serving specific industries as needed. Certification is obtained where appropriate. All management system standard and legal requirements are integrated into the business management system processes. The adoption of management system standards began as early as 1987 as unique project initiatives. That model has now been replaced with a continuous improvement model which allows IBM to proactively address new and emerging standards, legal and customer requirements as an integral part of IBM’s business management system.


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The decision to integrate the management system standards came as a result of the number of management systems that currently exist and the others that are in the pipeline. An initiative began to minimize the affect of maintaining and managing separate management system standard certifications and to simplify how management system standard requirements can best be satisfied. This lead to identification of common requirements that can be merged, better ways to introduce requirements into processes, and better ways to monitor and measure the system.


Implementation

Standards Requirements

ISO 9001

ISO 14001

Others

Corporate Instructions and Policies

Processes

¾ ¾ ¾ ¾

Management Processes Business Processes Goals & Targets Metrics

Standards Standards, Models, Customer and Legal requirements influence processes

Process Model Requirements

Legal & Customer Requirements Policies Instructions

IMS Manual Processes


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The importance of integrating management system standards requirements, including assessment and review, into daily business management processes cannot be over emphasized. Incorporating standard’s assessment control points into regularly scheduled business controls and internal audit functions is essential. The same is true for management reviews which occur at varying levels of the organization and at varying levels of detail which start at the lowest level with the greatest detail and move up through the organization to the top most executive levels. Initial obstacles to integration can be: — related to the understanding of how the standards requirements relate to individual roles and responsibilities. — the requirement of multiple management system third party (registrar) audits. — understanding of new standards overlap of common requirements. — understanding process versus system changes.


Perceived Benefit: — Employees feel they are assessed and audited less frequently. — System appears to be more simple. — Less bureaucratic. Actual Benefit: — Assessments and audits cover a larger area and go deeper into process performance. — While the system is more simply implemented and executed at the working level, the system itself is more complex because of the multiple layers and overlaps. This complexity is at the integration and development levels. It does not affect the general employee population. — The system appears less bureaucratic because the general employee population is not affected by the standards requirements. The requirements are integrated in to the organization’s processes and procedures. Education is focused on process rather than system standards. — Greater consistency in common management system standards procedures. — More consistent internal assessments and external audits. — Better communications. — Reduction in number of audit days because audits can also be integrated — Higher quality assessments and audits. — Deeper more meaningful external audits. — Reduction in potential for system or process defects recurring at other locations. — Rapid deployment and implementation. — End-to-end and top to bottom assessments and audits are enabled versus isolated audit or linear assessments. — Data reuse. —


Continual improvement is done through multiple means all of which are included in the management system. In addition to internal audit and assessment the following methods are used to improve the system and the processes: — Lessons Learned — Innovation


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— Data Analysis — Benchmarking — Proactive roll in country and international standards groups


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Mandarin Oriental, Kuala Lumpur Introduction Who are we, market, business content

Mandarin Oriental, Kuala Lumpur is a distinguished business address in Malaysia and an award-winning five-star luxury hotel. Mandarin Oriental, Kuala Lumpur enjoys a prime location in the heart of Kuala Lumpur’s business and retail district, adjacent to one of the world’s tallest buildings, the Petronas Twin Towers. Overlooking lush parklands, the hotel features 643 elegantly appointed guestrooms, the exclusive Mandarin Oriental Club, a dynamic fitness and spa centre, six signature restaurants and bars and extensive function and banqueting facilities that consist of 16 rooms with capacity for more than 3000 persons for meetings, conferences, dinners and premier social events. Our services encompass the following: — Accommodation — Food & Beverage — Meetings, Banquets and Conferences — Health & Fitness & Spa — Business Centre — Laundry — Transportation Apart from Mandarin Oriental internal resources, there are services that are outsourced. Our outsourcing activities include the contracted work as well as our tenants.


Mandarin Oriental, Kuala Lumpur has established and maintained documented procedures for ensuring completeness of the customer’s requirements. Requirements that are not specified by the customer but necessary to provide as a five-star luxury hotel are reflected in our Vision, Mission, Guiding Principles, Legendary Quality Experience (LQE), Mandarin Oriental Pillars (MOP), IMS Policy, processes in relation to Fire, Life, Health, Safety and Security, Environmental Care and of course obligatory legal and other requirements. Empowerment is given to all colleagues to ensure that they execute as flawlessly as possible guest requests. We emphasize sharing of responsibility, accountability and recognition through a climate of teamwork in order to complete such requests. Customer expectations are achieved through consistently reviewing, analyzing, communicating and addressing individual guest comments within appropriate time frame. Guest preferences and comments obtained during their stay are recorded in the guest history profile to ensure that guests are delighted upon their return to Mandarin Oriental, Kuala Lumpur. Food and Beverage Division has established and documented procedures ensuring effective processes, consistent provision of quality services, quality food and beverages to all our valued guests. With the Hazard Analysis Critical Control Points (HACCP) certification, we further ensure that cleaning, sanitation and control procedures as well as training programs are adhered to, in order to provide and promote occupational health, safety at our work environment. Regular monitoring on food handling processes from receiving, storing, preparation till serving are carried out to prevent contamination of food and beverage products and to ensure that all our products are safe for human


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consumption. Quality dining experiences are provided in guest rooms, restaurants and banquet facilities through our motivated and innovative culinary team. Established standards in quality, occupational health and safety support the team to excel in service delivery and creating innovative guest dining experiences. The system and executive management’s position (leadership response)

The Integrated Management System at Mandarin Oriental, Kuala Lumpur consists of the following: — — — —

ISO 9001:2000 – Quality Management System ISO 14001:2004 – Environmental Management System OHSAS 18001:1999 – Occupational Health & Safety Management System MS 1722:Part 1:2005 – Safety & Health Management System (Malaysian Standard)

Management Commitment The General Manager of Mandarin Oriental, Kuala Lumpur is committed to ensure not only excellent quality services and facilities, but is also committed to minimize adverse effects on the environment and committed to provide an occupational health and safe environment for guests, colleagues and community. He will appoint an IMS Management Representative who irrespective of other responsibilities is responsible and authorized to ensure that the processes needed for the Integrated Management System are established, implemented and maintained. The IMS Management Representative will report to the General Manager on the performance of the Integrated Management System and any need for improvement. He will also ensure the promotion of awareness of guest’s requirements throughout the hotel. The IMS established in Mandarin Oriental, Kuala Lumpur is the driving force to ensure that everyone is aligned to this commitment. Evidence of this commitment is further demonstrated through: (i) (ii) (iii)

(iv) (v)

Establishing IMS policy and ensuring all employees are committed to the policy Ensuring IMS Quality, Environmental, Occupational Health and Safety objectives are set and measurable Conducting management reviews and analyze results for continual improvement of activities and processes in hospitality services Ensuring availability of resources Complying with customer and legal requirements

Customer Focus Customer requirements and expectations are reflected by Mandarin Oriental Hotel Group’s quality, environment and safety & health policies. These standards were derived with the end in mind, i.e. achieving our Vision of “We will be recognized as one of the top three luxury hotel groups” and our Mission of “Our mission is to completely delight and satisfy our guests. We are committed to making a difference everyday; continually getting better to keep us the best”. Based on guest feedback through on-line surveys, letters, guest comment cards, mystery shoppers, audits and consistent management reviews, we are able to continuously improve to keep us the best.


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Planning Mandarin Oriental, Kuala Lumpur shall identify and plan the activities and resources needed to achieve quality, environmental, occupational health and safety objectives. The relevant quality, environmental, occupational health and safety planning has already been embedded in the IMS through careful identification and documentation of the procedures as per IMS Policy and ISO standards requirements. The planning shall also cover the verification of activities, processes, criteria for acceptability, identification of environmental aspects, significant environmental impacts, hazard identification, risk assessment and risk controls. Quality, Environmental, Occupational Health and Safety Objectives, Targets and Programs Quality, environmental, occupational health and safety objectives and targets are to be established and prioritized referring to our business requirements, views of interested parties including local regulatory authorities, significant impact register (SIR), hazard identification, risk assessment and risk control (HIRARC) and the legal register. Objectives and targets are reviewed and updated whenever there is a change in our activities and processes in provided hospitality services. An internal ISO standards Steering Committee shall review the objectives and targets during management review meetings to assess their suitability and make changes where necessary. Relevant quality, environmental, occupational health and safety programs shall be established to help Mandarin Oriental, Kuala Lumpur to achieve the quality, environmental, occupational health and safety objectives and targets. Program activities, time frames and responsibility for their execution are recorded on the management programs, which are monitored, controlled and managed by the appointed project leaders. All projects and programs established need prior approval by the IMS Steering Committee. Training & Communication Training and communication of IMS is carried out from the time new colleagues attend throughout their career with Mandarin Oriental, Kuala Lumpur. Conducted training needs analysis ensures that all areas of improvement in training are attended to within a stipulated period. Training and refresher courses are conducted in-house as well as by our external consultant. IMS Teams have been created with the intention of focusing on key areas of the standards: — — — — — — —

Environmental Care Committee Waste Management Committee Chemical Control Committee Legal Team Environmental Aspects Significant Impact Team Hazard identification Risk Assessment Risk Control Team Risk Management and OSH Committee – consisting of Fire, Life, Health,


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Safety and Security Team (FLHSS), Hazard Analysis Critical Control Point Team (HACCP) and Information Security Team Management Review Management review is conducted a minimum of three times a year with the internal ISO standards Steering Committee and relevant heads of departments. Review inputs and outputs are established in line with the three standards. Specific targets are then established for the next period. Getting started and further steps in the development of an integration plan including milestones – what was the project plan? (What, when and how including background) GRAPHICS

History In February 2003, Mandarin Oriental, Kuala Lumpur’s senior management decided that in order for us to sustain and continue our position as market leader, we would need to provide: — Unsurpassed quality product and services — A safe and secure place for our guests and colleagues — A commitment towards our corporate responsibility of reducing adverse effects on the environment We then decided to embark upon the journey of attaining ISO 9001 – Quality, ISO 14001 – Environment and OHSAS – Safety and Health. And we wanted the certification by the end of 2003. Thus on December 30, 2003, we became the first hotel in Malaysia to obtain all three certificates concurrently. Reassessment of the Integrated Management System against the three standards was scheduled in June 2006. At the same time, in keeping with the local sentiments regarding safety and health at work, Mandarin Oriental, Kuala Lumpur applied for certification to the Malaysian Standard for Safety and Health MS 1722-Part 1:2005. This standards was established in 2005 to address safety and health issues in many industries. Although it has not been legislated yet, Mandarin Oriental, Kuala Lumpur in keeping with our drive to always be the best, decided to nevertheless obtain certification. On July 24, 2006, Mandarin Oriental, Kuala Lumpur was certified for all four standards. During the period of understanding, embracing and implementing the Integrated Management System, an internal ISO standards Committee was formed consisting of senior and mid management colleagues. The IMS policy was drafted keeping in mind our Mandarin Oriental Hotel Group’s Vision, Mission and Guiding Principles. In addition, we had to ensure that the IMS policy depicted clearly the IMS direction and commitment of the organization with regards to quality, environmental, occupational health and safety performance. IMS Policy Mandarin Oriental, Kuala Lumpur an international award winning 5 star hotel is committed to actively participate in the continual improvement of quality services and facilities, protection on the environment, health and safety of our guests, our colleagues and the community.


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— We are committed to being the best by consistently providing innovative facilities and exceeding guest expectations by continuously delivering excellent services. — We shall continuously strive to minimize adverse effects on the environment and prevent pollution without compromising our quality standards and the comfort of our guests. — We are committed to promote our standards in Health, Safety, Quality and Environmental protection through continuous education. — We shall comply requirements.

with

relevant

legislation,

regulations

and

other

— We shall establish and review suitable objectives and targets for continual improvement Milestones — 2003 - Mandarin Oriental, Kuala Lumpur obtained certification for all three standards (IMS) within a period of 10 months. — 2006 – Mandarin Oriental, Kuala Lumpur obtained certification in four standards — Integrated Management System has been sustained due to senior management commitment and involvement. In addition, 860 colleagues are part of our drive to keep IMS alive and effective. Main steps of implementation GRAPHICS

Once the decision to pursue the Integrated Management System was made, plans to ensure successful implementation was thus prepared. They included: 1. Initial Assessment Report by the consultant to determine our areas of strengths and weaknesses. Best practices were identified which would be considered when preparing the IMS manual, policies and procedures. 2. ISO standards Committee members, the Management Representative and the Document controller were selected to work together with the consultant. 3. IMS policy was established embracing all three standards. 4. Corresponding matrix to the three standards was used as a basis of determining the essential policies and procedures required for the three standards. 5. Documentation requirements had to be identified – segregating them into level 1, 2 or 3. Policies and procedures were edited or created, streamlined and changed to IMS format. 6. Management responsibilities had to be defined with strong commitment from the senior management. 7. Simultaneously training programs were planned and an awareness campaign was launched 6 months before the certification date.


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8. Internal auditors were selected and an internal audit was planned before the certification audit. 9. Overall hotel business process flow, QMS and EMS process flow were established as depicted below (3 attachments) Assessment, review and addressing obstacles

IMS obstacles: — Being the only hotel in Malaysia that has Integrated Management System, ISO and OHSAS standards objectives and advantages are not known to the majority of people in the hospitality industry. Therefore there is initial resistance from new colleagues in accepting the requirements of IMS. — Legal issues are sometimes subject to interpretation by the relevant authorities. Unfortunately these interpretations sometimes differ and whilst the organization would like to comply, it is subject to change if the interpretation is not agreed upon. This causes confusion and frustration.


Initially the perceived benefit is that the ISO and OHSAS standards would be “well-known and recognized” and that it would complement our promotional and advertising efforts. However, whilst the above may be indeed true, it is just the superficial benefit of having any of the ISO or OHSAS standards implemented. Some other more important and appreciated benefits are: — Structure – there is an overall structure for three standards that are structured and easy to follow. The hotel had many practices in place would apply to the standards’ requirements. Having to comply to certification basically “forced” one to organize the documents, records data and eliminate irrelevant information.

well that the and

— Document control – Documents, records and data are always current. There is greater awareness of policies and procedures that have been established. There is of course easier access to documents due to the centralization of documents. — Training & communication – as a requirement in the standards, this plays an important part as it ensures that there is ample focus towards effective training and communication. The most important aspect of this is the evaluation of training effectiveness. — Legal and other requirements – the Legal, licenses, permits-register is an outstanding reference point to ensure that we comply to legal and other requirements in a timely manner. A trace system is in place to ensure that all due dates are traced 3 months ahead. — Safety & health – steps taken to be proactive in ensuring that risk controls are in place to overcome potential hazards has been beneficial in ensuring that we provide a safe and secure environment for our guests and colleagues. — Environment Aspects Significant Impact/ Significant Impact Register – similar to the Safety & Health requirement (HIRARC), environmental aspects and impacts have been proactively identified and control measures are in place to ensure prevention.


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— Emphasis on continual improvement – Definitely with the IMS in place, there is no choice but to continually improve in all areas of the organization. Colleagues are aligned to the organization’s needs from the first day they start work at the hotel. — Overall effectiveness of processes – Processes, service tasks and work instructions have been established over the past three years which have improved the effectiveness of our colleagues. Well thought through processes are the basis of effective training and thus successful delivery. − The way IMS is set up also encourages organizations to keep an archive of their best practices and/or areas whereby improvements are required. − Gathering of data - ,Consolidating and turning the data into usable information is an advantage. From this data, trends are indicated and thus programs required for improvement can then be validated. − Continual improvement, lessons learned, the way forward or future direction

Continual improvement efforts are based on many factors and key indicators: — Guests feedback – surveys and mail. — Colleagues survey feedback. — Mystery Shopper surveys. — Audits (internal and external). — Safety and Health reports and trends. — Environmental influences internally and externally. Apart from the Corrective, Preventive Action Report (CPAR) that encourages all colleagues to raise areas of concern for corrective or preventive action, there are also teams established for Mandarin Oriental Hotel Group’s MO Problem Solving Technology (MOPST). Hereby specific measurable areas of improvement are identified and looked into within a stipulated time frame. Mandarin Oriental, Kuala Lumpur understands and appreciates that within our 860 colleagues there can be a wealth of good ideas. This is driven through our “Fan-tastic Idea” program which has resulted in the implementation of ideas that have benefited the hotel within the context of quality, environment and safety & health. Lesson Learnt and the most important part of having a successful IMS system All senior management colleagues must understand and appreciate how IMS can be part of an organization’s business strategy. Only then the concept and advantages of an Integrated Management System can be successfully cascaded to our fellow colleagues. The Way Forward — Continuous training and re-training on changes that affect the Integrated Management System. — Benchmarking organizations that have successful Quality, Environment and Safety & Health programs so as to determine where else we can improve in. — Continue to monitor our key performance indicators so that we may be able


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to continuously improve or maintain a standard that is above average in the industry. — Mandarin Oriental, Kuala Lumpur is also looking into being certified to ISO 22000 – Food Safety management systems – targeted for late 2007.

For further information, please contact: Anne Ng Director of Business Management System (Management Representative) Mandarin Oriental, Kuala Lumpur Kuala Lumpur City Centre 50088 Malaysia Tel: 603-21798920 Email: [email protected]


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Business Process Flow with ISO/OHSAS elements G U EST 7 .2 .1 -7 .2 .3 , 8 .2 .1

C ontinual Im prove m ent C ontinual Im prove m ent T

G U EST

T

7 .2 .1 -7 .2 .3 , 8 .2 .1

CM BD

SALES

7 .2 .1 -7 .2 .3 , 7 .5 .4

7 .2 .1 -7 .2 .3 , 7 .5 .4

CM BD

SALES

7 .2 .1 -7 .2 .3 , 7 .5 .4

R E S E R V A T IO N S 7 .2 .1 -7 .2 .3 , 7 .5 .4 R E S E R V A T IO N S

7 .2 .1 -7 .2 .3 , 7 .5 .4

BANQ UET 7 .2 .3 , 7 .5 .1 -7 .5 .5 , 4 .3 .1 , 4 .3 .2 , 4 .4 .3

7 .2 .1 -7 .2 .3 , 7 .5 .4

F R O N T O F F IC E 7 .5 .1 -7 .5 .3 F R O N T O F F IC E

BANQ UET 7 .2 .3 , 7 .5 .1 -7 .5 .5 , 4 .3 .1 , 4 .3 .2 , 4 .4 .3

M AN A GEM EN T / A D M IN

A C C O U N TS 7 .2 .1 -7 .2 .2

7 .5 .1 -7 .5 .3

TELECO M . 7 .5 .1 -7 .5 .3

B U S IN E S S CO EN TELEC MT. R E 7 .5 7 .5 .1 -7 .5 .3.1 -7 .5 .3

A

R E LA T IO N S

P U B L IC

N

5 .5 .3 , 7 .2 .1 -7 .2 .3 , 4 .4 .3

R E LA T IO N S

8 .2 .4 , 4 .5 .1

E N G IN E E R IN G S T E W A R D IN G S E C U R IT Y 7 .5 .1 -7 .5 .3 , 6 .3 , 6 .4 , E 7 .6 N, G I N E E R IN G 7 .5 .1 -7 .5 .3 S T E W A R D IN G 7 .5 .1 -7 .5 .3 , 4 .4 .7 S E C U R IT Y 4 .5 .1 7 .5 .1 -7 .5 .3

L e ge nd

7 .5 .1 -7 .5 .3 , 6 .3 , 6 .4 , 7 .6 , 4 .5 .1

7 .5 .1 -7 .5 .3 , 4 .4 .7

M A N

A

5 .5 .3 , 7 .2 .1 -7 .2 . 3 , 4 .4 .3

7 .4 .1 -7 .4 .3 , 7 .6 K IT C H E N H O U S E K E E P IN G LAUN DRY .5 .3 .1 -7 .5 .3 , 8 .2 .3 , H 8 .2O .4 U S E K E7E .5 P .1 -7 .5 .3 B U S7I.5N.1E-7S S, 8 .2 .3 , 8 .2 .4 K IT C H7E.5 N IN G, 8 .2 .3 , L A U N D R Y H U M A N 8 .2 .4 , 4 .5 .1 CEN TRE 7 .5 .1 -7 .5 .3 , 8 .2 .3 , 8 .2 .4 7 .5 .1 -7 .5 .3 , 8 .2 .3 , 8 .2 .4 7 .5 .1 -7 .5 .3 , 8 .2 .R 3 ,E S O U R C E

7 .5 .1 -7 .5 .3

Q uality IS O 9001 eleLme egents nd

M

7 .2 .1 -7 .2 .2

M A T E R IA L M G M T.

P

A C C O U N TS

P U B L IC

F& B O U TLETS ROOMS V IT A L IT Y C L U B 7 .5 .1 -7 .5 .3 , 8 .2 .3 , 8 .2 7 .5 .1 -7 .5 .3 V IT A L IT Y C L U B F.4& B O U T L E7 .5 T.1S-7 .5 .3 , 8 .2 .3 , 8 .2 .4 R O O M S 7 .5 .1 -7 .5 .3 , 8 .2 .3 , 8 .2 .4

O

P

5 , 5 .1 , 5 .2 , 5 .3 , 5 .4 , / A D M IN 5 .4 .1 , 5 .4 .2 , 5 .5 , 5 .5 .1 , 5 .5 .2 , 5 .6 , 5 , 5 .1 , 5 .2 , 5 .3 , 5 .4 , 5 .4 .1 , 5 .4 .2 , 5 .5 , 5 .6 .1 -5 .6 .3 5 .5 .1 , 5 .5 .2 , 5 .6 , 5 .6 .1 -5 .6 .3

7 .5 .1 -7 .5 .3

7 .5 .1 -7 .5 .3 , 8 .2 .3 , 8 .2 .4

O M AN A GEM EN T

6 .2 .1 , 6 .2 .2 4 .4 .1 , 4 .4 .2

TR A IN IN G 6 .2 .1 , 6 .2 .2 4 .4 .1 , 4 .4 .2

A

M A T E R IA G L M G M T.

G

7 .4 .1 -7 .4 .3 , 7 . 6

E

E

HU M AN R E S O U R CM E 6 .2 .1 , 6 .2 .2 4 .4 .1 , 4 .4 .2

M

E

E

TR A IN IN G

N

6 .2 .1 , 6 .2 .2 4 .4 .1 , 4 .4 .2

N

C ontinual Im prove m ent T G U E S T S A T IS F A C T IO N C ontinual Im prove m ent G U E S T S A T IS F A C T IO N 7 .2 .1 -7 .2 .3 , 8 .2 .1

7 .2 .1 -7 .2 .3 , 8 .2 .1

E n viro n m e nt IS O 1 4Q 0 0uality 1 & IS O 9001 ele m e nts G e nera l (o vera ll) O S H -O H S A S 1 8 0 0 1 /M S 1 7 2 2 E n viro ele me nts (refer to matrix in n m e nt IS O 1 4 0 0 1 & 4 .1 , 4 .2 .1 -4 .2 .4 , 5 .5 .3 , 6 , 6 .1 , 6 .2 , 6 .2 .1 , 6 .2 .2 , 7 .1G , 8e.1 , 8 .3l ,(o 8 .4 , 8 .5ll) .1 -8 .5 .3 nera vera OSH -Oin H gS A S 1 8 0 0 1 /M S 1 7 2 2 IM S M a n ual fo r corresp o nd 4 .1 , 4 .3 .14-4 4 .4 4 .4 , 4, .5 .3 .1 , 4, .5 .4 . 2 , 7 .1 , 8 .1 , 8 .3 , 8 .4 , 8 .5 .1 -8 .5 .3 ele me nts (refer to matrix in .1.3 , 4.4.2, .1 -4.4.2, .4 , 5.5.5-4 .3.4 , 6.7, ,64.1.5, .2 6 .2 6 .2 6 .2 ele me nts for M S 1722) IM S M a n ual fo r corresp o nd in g 4 .1 , 4 .3 .1 -4 .3 .4 , 4 .4 .4 , 4 .4 .5 -4 .4 .7 , 4 .5 .2 , 4 .5 .3 , 4 .5 .4 ele me nts for M S 1722)


T

5 , 5 .1 , 5 .2 , 5 .3 , 5 .4 , 5 .4 .1 , 5 .4 .2 ,

5 , 5 .1 , 5 .2 , 5 .3 , 5 .4 , 5 .5 , 5 .5 .1 , 5 .5 .2 , 5 .6 , 5 .4 .1 , 5 .4 .2 , 5 .6 .1 -5 .6 .3 5 .5 , 5 .5 .1 , 5 .5 .2 , 5 .6 , 4 .2 , 4 .6 5 .6 .1 -5 .6 .3 4 .2 , 4 .6

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Quality Management System – Process Flow


89

Environment Management System


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MLPC International: Introduction Who are we, market, business content

Discover MLPC International: — MLPC International is an actor of the chemical industry. It is a medium size company, employs approximately 250 persons working in 2 production plants located in the South-West of France: Rion des Landes and Lesgor. The company is a subsidiary of the Arkema Group. — MLPC International has developed over nearly 60 years its expertise in the chemistry of carbon sulphur (CS2), cyanogens chloride (CNCl) and amines. — MLPC International is a worldwide leader or co-leader in the production and sales of additives for the rubber industry (thioureas, guanidines and rubber chemical masterbatches) and fine chemicals intermediates such as carbazides and isothiocyanates. — MLPC International turnover in 2005 reached 52 million euros. Around 87 % of the sales are generated outside France, about 55 % in Europe (excluding France), 15 % in North and South America, 6 % in Asia and 11% in the rest of the world market. — MLPC International is ISO-certified for its quality management system since 1995. The company is also classified for safety and environment relating to National and European regulations (ICPE and Seveso II - directive) with frequent and enforced controls of the health, safety and environmental management system and its performances by the competent national authorities. The history of MLPC International and its fields of activity: 1926 Creation of the "Société Landaise de Produits Chimiques" in Rion des Landes producing wood derivatives (charcoal, tar and pyroligneous) from the raw material of the region, the pine trees. 1939 Creation of a joint stock company "Manufacture Landaise de Produits Chimiques" (MLPC) and in 1944 first listing of MLPC shares on the Paris Stock Exchange. 1945 Development of the production of paints from light oils then rosin oils and in 1949 beginning of the chemical activity (synthetic products for the rubber industry). In 1955 construction of a new plant in Lesgor and in 1966 stop of the carbonisation activities with a launch of new rubber chemicals (thioureas). In 1979 based on its chemistry and expertise, development of fine chemicals for applications outside the rubber industry. 1989 Elf Atochem (the chemical branch of the Elf Aquitaine Group) becomes the main shareholder of MLPC (67.2 %). After the majority has been taken in 1989 by Elf Atochem (renamed “Atofina” and later “Arkema”), the fine chemicals activity has been strengthened through the synergy with the Hydrogen Sulphur (H2S) chemistry of Elf Atochem and the support of its Research Center of Lacq (GRL) also located in the South-West of France. 1995

Purchase of the carbazides business from the Degussa Group.

1998 The company's name is changed from MLPC into MLPC International in order to take into account its worldwide activity and in 2000 start-up of the unique


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masterbatch plant for rubber chemicals. 2005 MLPC International becomes a 100 % subsidiary of the Arkema Group with the following fields of activity: — Chemicals for the Rubber industry (tires and industrial rubber) vulcanization accelerators, sulphur donors and anti-degradants — Fine chemicals - agrochemicals, intermediates for pharmaceuticals, adhesives and others. Customer/stake holder requirements (what were the drivers for action)

At the end of the 20th century, MLPC International had to match 3 types of requirements and expectations, which can be considered as the drivers to transform the existing management systems for quality assurance and health, safety and environment into a “one and only” integrated management system (IMS): 1) Customer requirements: MLPC International is a supplier of the automotive industry and other high quality demanding branches. The company realized that the ISO 9001 requirements for its quality management system were not sufficient and that the customers expected more. Therefore there was a need to take into account and “to integrate” complementary ISO and other branch or customer specific quality standards in its management system. Also the customers got more and more interested in health, safety and environment aspects and related performances. 2) Requirements of the local authorities in health, safety and environment and expectations of the business environment including the neighbourhood: MLPC International is an actor of the chemical industries and has to face a multitude of exigent French, European and International regulations. The legal compliance, but also the acceptance of the community is of a big importance in order to maintain its business activity at its 2 plants in the South-West of France. 3) Internal requirements The requirements and management procedures of the main shareholder concerning business performance, but also performance of quality, health, safety and environment aspects are also multiple and needed to be taken into account in the companies operational management system. The expectation and need of the staff of MLPC International was that all requirements were taken into account in clear internal procedures and operations instruction without incoherencies and concurrence between the in the company existing subsystems for quality and health, safety and environment. All these multiple requirements requested a change in the company’s organisation and its management system(s). This in order to be able to meet the requirements without “getting lost” and to maintain the focus on the company’s activity, its business, the related performances and the customer satisfaction. MLPC International was also aware, that future requirements in different areas would be numerous with the need to be taken into account in the company’s management system(s). It should be avoided that this means each time an important and time expensive change of the management system(s). Therefore the decision was taken to develop a unique management system for the company, which is based on the business processes with the ability to integrate all the existing and future requirements the company needs to meet.

The system and executive

The commitments of MLPC International: MLPC International aims to be an innovative player in the global chemical industry,


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management’s position (leadership response)

exemplary in terms of quality, health, safety, environment and sustainable development: — by promoting customers partnerships and working closely with the aim to offer innovative products and services ; — by pursuing its policy of ongoing improvement in health, safety and environmental protection based on its Integrated Management System ; — by educating, training and involving all concerned, both MLPC International employees and subcontracted personnel, striving therefore for excellence in safety issues ; — by encouraging a community-based dialog to heed the legitimate expectations of stakeholders and in particular residents living in the vicinity of its facilities. To achieve these aims a management tool is implemented since 2001 organizing the processes of the company’s business activities. In this unique and integrated management system (IMS), workflows are clearly identified with the legal, standard and other requirements to respect, and the corresponding responsibilities of the personnel. Following the request of the General Director, the Supply Chain and IMS manager organizes a management review twice a year. The management review is supported by the responsible manager of the department for quality, health, safety and environment and all the responsible process pilots, who are mainly members of the executive committee. The first meeting in the middle of the year has for target to realize a functional review of the business processes, its interfaces and the related performances, to state on the progress of the aims declining the company’s policy and to exchange on important facts, new requirements or identified tendencies to consider in the system. The second meeting at the end of the year is completed by a detailed review of the company’s performances in quality, health, industrial safety and environment, defines the company aims for the next year. It is also the forum to decide in which way the system should be developed in order to maintain and improve compliance with newly assessed requirements and performances of the business activity of the company.


The evolution of the management system of MLPC International: < 1992 No formalized system, but formalized organisational procedures and operational instructions taking into account quality, health, safety and environmental aspects, but also operational practices based on oral instructions and for MLPC habitual or individual practices. 1992

To enforce the quality assurance, development of a formalized management system inspired by the ISO 9002 standard. 1995 first ISO 9002 certification and in 1998 ISO 9002 recertification.

2000

Implementation of a unique and integrated management system (IMS) including quality, health, safety and environmental aspects.

2001 Integration of the European "Seveso II"- regulation requirements for the prevention of major accidents in the IMS and inspection of the safety management twice a year by the competent national authorities. First ISO 9001v 2000 certification and in 2004 ISO 9001 v 2000 recertification. Since Integration process of the "Financial Safety"-regulation requirements in the IMS and Tomorrow integration of future requirements in order to ensure the business activity of MLPC International in accordance with the values of the sustainable development. Importance of the human factor – commitment of the general management and the capacity of the personnel to work on a shared aim: The general management is the unique authority to decide the change of a


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company’s management and its system. The vision and personal implication of the internationally experienced General Manager and its management committee was of a big importance for the IMS project in order to mobilize energies and to federate the personnel. The pro-active and motivated co-pilots for the integration process were also an important factor to succeed the IMS-project. The development of a viable and evolutive concept for the unique company’s management system was the result of an intensive collaboration without rivalries of the existing expert in Q-management and the existing expert in HSE-management. The successful step-wise application of the management system in change was achieved by the active implication of the management-level and the operational staff, which were in the need of less but clear and coherent management procedures and working instructions. Learning, management of change and management of projects: To succeed the IMS-project it was important to get inspired by “good practices”, for example the methodological approach for project management (ref. ISO 10006). — Phase of decision: Realisation of a first inventory of existing requirements and expectations of the customer and the business environment, but also of the existing management responses. Evaluation of the targets, stakes and investments, but also risks for the company. This key phase can be considered as a learning phase and a set to management of change. — Phase of preparation: Definition of aims, project plan and related communication. — Phase of realisation: Detailed analyse of the business activities and related requirements, existing workflows and procedures. Development of a management system concept based on the identified and formalized key processes and requirements. Implementation in the company. Controls of the application and implementation of corrections. Continual accompany of the application in order to achieve and succeed the stepwise change of the management practice in the company. This key phase can be also considered as a learning phase for the whole personnel and is therefore a set to operational change. Achieved time goals of MLPC International for its IMS-project: — Be among the first company’s certified ISO 9001 v 2000. — Be in legal compliance with the time schedule of the European “Seveso IIDirective” for industrial safety and the prevention of major accidents.


The IMS-approach of MLPC International: — Abandon of the former requirement-based management system structure and development of a business-based management system concept. — No revolution, but step-wise evolution of existing management and operational practices. — Identification of the key processes for the business activity and review of the existing workflows. — Maintain of the good and well established practices with consolidation of the


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existing related documents. Change of ineffective workflows and related management documentation with redundancies. — Identification of key requirements and integration in the workflows of the business processes, their related management procedures and operations instructions. The Concept of the integrated management system: MLPC International has developed a management system for quality, health, safety, environment and other aspects based on the following principles : — process approach : The business activities and related resources are managed as processes inspired by ISO 9001. The product realisation processes are the « back-bone » of the management system. — plan-do-check-act principle : This generic principal guides the process management and management review in order to improve the activities and the company’s performances. — common elements : The common elements (ref. ISO Guide 72) of management system standards (ISO 9001, ISO 14001 etc.) are taken into account in the concept of the management system in order to simplify the key management issues and related procedures. The implementation of the integrated management system is supported by ergonomic soft-wares for management documentation and the management of audits, identified non-conformities and related actions plans. The following figure shows the concept of MLPC International’s integrated management system and maps the identified key processes for its business activity:

Policy and Leadership

Customer Focus Customers

POLITI

ORGA

P

COM

D

Resources FINANC

COMCLI

SYSTEM

HUMAIN

Stakeholders

INFO

Supports CONTRA

CONCEP

MAIN

TRAV

Product Realization PLANIF

APPRO

Stakeholders

FAB

ACHABS

Emergency URGENT

A

CTRL

STOCK

METROL


Customers

REJET

Survey and Improvement NC-ACT

EXPED

C

AUDIT

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The continual survey of requirements and expectations of the customers and the business environment of MLPC : Managing a business includes identifying, understanding, satisfying the essential requirements of your customers but also the interested parties of your business environment. And this is a continuous process of the integrated management system! Multiple and different types of requirements exist world wide. They are related to different issues and branches. Therefore they are of different importance and utility for the business and management system. There are formalized requirements, as legal and standard requirements. Some issues as quality, environment and occupational health and safety are of particular importance for organizations and have standardized management system requirements (ref. ISO 9001 for quality management and ISO 14001 for environmental management). Also there are nonformalized, but existing requirements and expectations of the customers and other interested parties in the business environment. Some are active players and therefore well known, others are quite passive, but could be of effect for your business in case of negative affectation. Also they are the changing internal requirements of the company as its business aim and related strategies. It is important to identify and asses the existing requirements in order to check up their importance and utility for the business. Fitting the essential requirements helps to improve the business performances in getting inspired by “good practices” and in satisfying the relevant customers, the shareholders and interested parties. This is important for the viability of the company’s activity and its sustainable development. Generally there are two ways to identify the essential requirements for your business and management system. The first one is the reactive way: the company has to face specific demands of customers and interested parties. For example the public authorities are requesting legal compliance of your business activities. But also, as they had discovered that formalized management systems could be useful tools to master the business processes and their impacts on the environment, the public authorities extend their in the past more technical requirements towards organizational requirements in referring to existing management system standards. MLPC International did the path away from an impression of obligations towards the contemplation of opportunities and benefits for its business activity and organization. This change of mind produces the second, the more anticipative way to identify essential requirements. To point out in an operational way the essential requirements, a collective reflection and crosschecking matrix approach is helpful. First step is the identification of all the interested parties. Then, in a second step, you are able to identify the related requirements, the explicit ones, but also the implicit expectations. The third step is to asses the importance of all these requirements and expectations in order to decide, to plan and to realize their integration in the company’s management system. With these reflections and formalized exercises, the requirements and expectations are identified and assed in an argued way. The general management is now able to make its choice whether to integrate or not. These choices might be in some cases strategic decisions for the business activity and related resources. The following figure intends to visualize in a cartoon MLPC International as a chemical company, the interested parties of the business environment and the approach to integrate related requirements:


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z

Identification of customer requirements and expectations, but also of the stakeholders and other interested parties.

z

Assessment of the priorities for our business and customer focus.

z

Integration of the key requirements and expectation in our management processes.

Î

for example the prevention of major accidents and the industrial safety management ...

The following figure reflects the link to the key issue “safety” and the related management system requirements of the European Seveso II-directive in the process-based integrated management system of MLPC International : 7 Key requirements of the EU Seveso II directive

The SGS manual is the synopsis of the safety management in the IMS of MLPC International

2 Risk identification and assessment

3 Management of industrial processes and operations 4 Management of changes

Policy and Leadership

Customer Focus Customers

POLITI

Manual SGS


COM

D

HUMAIN

Stakeholders

INFO

Supports CONTRA

CONCEP

MAIN

TRAV

Product Realization

6 Management of experiences

PLANIF

APPRO

Stakeholders

7 Controle of the safety performances, audits and management reviews

SYSTEM

Resources FINANC

COMCLI

5 Management of emergencies

ORGA

P

FAB

ACHABS

Emergency URGENT

A

CTRL

STOCK

METROL

Survey and Improvement NC-ACT

EXPED

Customers

REJET


1 Policy for the prevention of major accidents, organisation and training

C

AUDIT

Hard factors : Without a solid business orientated management system concept and project approach for the integrated use of management system standard (MSS) requirements, there might be a risk: — to “get lost in the jungle” of MSS requirements and other requirements, if you


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have no clear vision about what is essential for your organisation in your specific business environment: priorities of the customers and other interested parties, identification and assessment of the important and useful requirements. — to create artificial subsystems in your management system, which does not permit improvement of your business processes with sustainable benefits, but only temporary compliance to satisfy identified stakeholders. Soft factors: Without a solid project plan and an explanatory, motivating communication of the top management, the personnel might develop unproductive impressions and attitudes: — “Fear of the new”: the impressions of heaviness and complexity of an IMS generating additional and not useful work charges and management-system documentations, but also more and more difficult decisive processes and related actions. —

“Concurrence”: the impression, that in an IMS there is no place anymore for real expertise in order to master and improve the quality aspects, the health and safety aspects, the environmental aspects or other specific but necessary domains of a management system; therefore some might fear that there is no need to employ the corresponding experts or to support the corresponding competences of the personnel.

— “Individual ambitions”: the impressions of concurrence could generate attitudes affecting in a negative way the capacity to collaborate, to work in a group in order to achieve the shared aims of the company and not individual ambitions. — “Culture”: the change of the management culture combining “vertical” organizational structures and responsibilities with management responsibilities of processes, which might be “something new” and inexperienced for companies. Perceived v. actual benefits

External oriented benefits: With a solid, but flexible business orientated management system concept integrating multiple management-system standards and/or other standards requirements, the company is able: — to consider and to take into account in a reactive way the needs of the customers and other interested parties in order to achieve and to prove compliance, and therefore — to satisfy the customers, shareholders and other interested parties allowing to maintain or to improve the business activity of the company. Internal benefits: With a business orientated management system integrating the as necessary identified multiple requirements in a coherent way, the company is able : — to facilitate the processes to achieve adequate and coherent strategies and decisions, because the IMS approach makes it easier to take into account all


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the essential demands of the business environment and needs of the company in a global and not only partial way. — to make useful rationalizations possible with the generalization of document control, integrated and therefore unique company policy, management procedures and operational work instructions, audit programs and management reviews (e.g. common elements of management system standards). — to master, to control and to develop the management in a structured way (e.g. with the PDCA-cycle) in order to improve the business activities with more internal transparency of missions, visions, strategies of the organization, structured work flows in the business processes integrating all the necessary requirements, but also coherent and companywide shared work-methods. — to guide and to federate the efforts of the personnel in order to achieve the companies aims ; to manage all the necessary competences. — to be a “learning organism” and to get continually inspired by the “good practices” indicated in the multiple management system and other standards nowadays and in the future ; to fertilize new ideas and approaches inside the company. — to have a reliable internal and credible external communication. The IMS approach of MLPC International was a based on a review of the business activities, the identification and assessment of the essential requirements and the adequacy of its related management and work organization. This management of change was not done by a rupture with the past or “bigbang”. It was achieved in a learning process which still continues and could therefore be considered as a “natural evolution” of the management system. Continual improvement, lessons learned, the way forward or future direction

The success of a “collective”, an organization - a company, is the result of engaged people sharing the same vision and moving in the same direction. The executive committee with an “esprit entrepreneur”, a long term vision and strategy is essential in order to convince, to motivate and to federate the personnel to get personally engaged to improve the business activity - to succeed together as an enterprise. A structured management system integrating the as essential for the business viability identified requirements is a tool, which helps in an organization to succeed together: share the same vision and work methods, get inspired from “good practices”, adapt them to the company need and go “your way”. MLPC International has chosen its way. The company has a sustainable development policy. In line with this engagement, MLPC International has implemented an operational management system for quality, health, safety, environment and sustainable development in an integrated way. Since 1995 MLPC International is certified by an accredited French body for its quality management. Nevertheless customer audits, but also audits of share- and stakeholders, checking quality, the management system conception and performances including health, safety and environmental aspects, are more and more frequent. Also, because of its chemical activity and the related risks, the production plants of MLPC International have to comply with the exigent National and European regulations (ICPE and Seveso II - directive). As the controls by the authorities are also frequent, enforced and including the performances of the safety and environmental management, MLPC International has taken the decision in the past not to add ISO 14001, EMAS or OSHAS 18001 certification and the


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related audits to the ISO 9001 certification. The company has integrated their key requirements in its IMS-management system and proves this on demand while customer and other audits. Actually, this position is in a review. MLPC International has the intention to join the "International Safety Rating System" (ISRS) approach for our health, safety and environmental management, as requested by the shareholder Arkema Group. Also there is the intention to obtain an ISO 14001 certification and eventually the branch specific ISO/TS 16949 certification by an accredited body in order to satisfy especially the customers of the automotive industry. These intentions represent an important resource investment for a medium size company as MLPC International. A feasibility and resource check is in process. To prove the existing commitments of MLPC International in quality, health, safety, environment and financial safety, please find enclosed our sustainable development policy:

For a sustainable business activity, MLPC International commits also to face new challenges and to integrate the related new requirements in its evolutive and learning management system. Feel free to contact MLPC International for further information or contact the website www.mlpc-intl.com.


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RAFAEL, the Armaments Development Authority Ltd Introduction Who are we, Market business content

RAFAEL, the Armaments Development Authority Ltd., designs, develops, manufactures and supplies a wide range of high-tech systems for defense applications. RAFAEL is a government-owned company. Rafael has 5000 employees, with sales upwards of US$ 900 million, 9% of which is invested in R&D. RAFAEL's know-how is embedded in almost every Israel Defense Force system in operation today. The company has also formed partnership with civilian counterparts to develop commercial applications based on its propriety technology. RAFAEL's mastery of leading edge technology for defense applications has a unique infrastructure, including advanced laboratories and R&D centers. Its high-technology base has enabled it to maintain a leading edge in world markets, winning world wide acclaim and an international customer base. RAFAEL has 4 Divisions and 16 product lines in the areas of: Air defense, Armor protection, Helicopter systems, Electronics warfare, Homeland Security and Border control, Airborne Missile Systems, Naval Systems, and Space technology, Training and Simulation, Urban Warfare. RAFAEL has formed partnerships with companies in Israel and with leading aerospace and other defense firms overseas. Offset activities and industrial cooperation are conducted with over 20 countries worldwide. In the last ten years. International business activities have been steadily expanding, with RAFAEL acting as prime contractor or subcontractor, capitalizing on its strengths at both system and subsystem levels.

Customer/stake holders requirements (what were the drivers for action

Governments' requirements, outside customers, suppliers, employees and law and regulation requirements (national and international) are considered in Rafael policy. Drivers for the integration process were customer’s requirements, increasing demands for Environmental protection and internal motivation for improvements in the holistic approach.

Rafael's Management Systems Integration Approach

The Quality Management System is integrated within all corporate and divisional operations throughout the life cycle of every project. RAFAEL implements an Integrated Management System approach which includes the Quality Management System, the Environmental Management System and the Occupational Health and Safety (OH&S) Management System. The policies governing these three systems are supported by internal procedures covering quality, environmental quality and safety, and they are implemented through integration of activities and methods as prescribed by each Management systems.. RAFAEL has a tradition of certification, both by customers and Third Parties. Rafael's Quality Management System meets the requirements of ISO 9001:2000, and is certified by the Standards Institute of Israel (SII) since May 2003.


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Management commitment

Integrated Management System – Total Quality, Environmental, Safety and Occupational Health is integral part of Rafael Quality Policy. A steering committee was nominated by the CEO. The committee allocates resources and monitor and coordinates the integration.

Getting started and further steps in the development of integration plan including milestones what was the project plan? (What, when and how including background)

Rafael Quality system was formalized in 1988 and adopted the Process improvement process through the whole organization. Rafael Quality Director reports to the CEO, and is member of Rafael senior management board. Every Division, Product line and Directorate has a quality director. The Corporate Chief Safety Engineer, who is in charge of safety and environmental systems reports, also to Rafael CEO. There is coordination between the Quality Director and the Chief Safety Engineer. Corporate Steering committee coordinates the Integration process of Quality, Safety and Environmental Management Systems.


— Policy Establishment: Integration policy is based on, and complies with the vision and the mission of Rafael. The Policy includes description of the organization approaches to integration, the Management Systems and Processes to be integrated and the main subjects and objective to focus on. The Policy indicates the management system standard to comply with, and stakeholder's interests. — Definition of the Integrated Process: Decision on the level of integration depending of the company type, size and the maturity level of the current management system standard implementation: — Planning the integration Process: −

Analyzing the organization processes and the payoff of the integration.

−

Decision which processes should be integrated such as audits, procedures, training, failure reporting and corrective action follow-up, management reviews.

−

Analyzing the risks and the benefits of the integration.

−

Planning the framework of the integration – time schedule, budget, resources – manpower, training, etc.

−

Preparing report for management approval.

— Management Approval: −

Approval of plan.

−

Nominate Steering Committee.

−

Assign project coordinator.

−

Allocate the needed resources.

— Detail planning of the integration process implementation: −

Establishing steering committee which it members represents the processes to be integrated and specialists in the various management


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systems standards. −

Analyzing the processes to be integration for identifying common and overlap areas in order to decide what to integrate and how.

−

Identifying discrepancies needed to be corrected in order to comply with legislation and standards requirements.

−

Assessing the risks and preparing risk mitigation plan.

−

Decision on the verification method.

−

Define the measures for success.

−

Establishing integrated working teams.

−

Preparing the detailed plan for each process which will include: x Flowchart. x Time schedule. x Measurable Objectives. x Training. x Control gates. x Follow-up and corrective action. x The pilot project. x Documentation needed – procedures, forms.

— Pilot integration project: −

Implementing the integration pilot project.

−

Analyzing the project results.

— Approval companywide implementation and updating the plan: −

Presenting the results of the pilot project to the senior Rafael. Management approval of company wide implementation.

−

Updating the plan according to the lesson learnt.

−

Implementation of the integration across the company.

— Implementation Verification: −

Implementation follow-up by the steering committee.

−

Auditing the process in-order to identify improvement opportunities.

−

Implementing corrective action and improvement.

— Maintenances and improvement:

Assessments, review of integrated process - Main features, Added value, Conditions for success.

−

Regular auditing routine.

−

Improvement teams.

1. Audits: — Main Features −

Audits by Integrated Audit Teams – Quality, Environmental and Safety Auditors.

−

One Audits Management System.

−

Unified format of reporting.

−

Integrated planning of the audits to cover the whole organization.

−

Audit leader is according to the type of the audited area.

— Added Value −

Saving costs – less manpower and time.

−

Unified certification system with the same principles for all the professions involved, and the unique needs of each one.


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−

Same principles for all types of audits.

−

Same format of reporting for better analysis by management.

−

One computerized management system for managing the audits and closing corrective and preventing actions.

−

Audit System covers the whole organization activities.

−

Improve follow-up of action items across the organization, and not only of the audit system.

−

Improve documentation and configuration control.

−

Highlights mutual needs.

−

Increase dialogue between people.

— Conditions for success −

Management commitment

−

Integrated training infrastructure for Quality, Environmental and Safety people.

−

Pilot project.

−

Profound professional infrastructure of Quality, Environmental Quality, and safety.

−

High level professionalism of people involved.

−

Safety people give the professional backup, while the Quality professional is the integrator.

−

Good management information System for managing and control the Audits and corrective action closing.

Notes: In some cases hazards surveys and security audits are also integrated in the system. 2. Management Review — Main Features −

Management reviews at Rafael top management and Division management level.

−

Twice a year.

−

Reporting and discussing of Quality, Environmental Quality and Safety issues.

−

The review is conducted by forum of Management members (General Managers, Vice Presidents, Division managers), the QA Director and Rafael Chief Safety Engineer.

−

QA Director presents the Quality System status.

−

Rafael Chief Safety Engineer. Presents Safety and Environmental Quality systems status.

— Added Value −

Saving of top management time.

−

Enhance management commitment to Quality, Environmental and Safety.

−

Improve solving cross organization Quality, Environmental and Safety problems.

−

Enhance understanding by management the importance and the


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value add of Quality, Environmental and Safety systems. −

Better decisions for solving Quality, Environmental and Safety problems by considering the whole organization benefits and priorities.

−

Improving the communication between management members considering Quality, Environmental and Safety issues.

−

Improve allocation of the organization resources for the integrated systems, and. for each of them.

— Conditions for success: −

General Manager Commitment.

−

Good and effective reporting system.

−

Numerical measures.

−

Intensive preparation of the review meeting.

− Distributing the reports before the meeting. The review summary, including corrective actions prescribed, implementation schedules and responsibility, shall be distributed on behalf of the General Manager. 3. Procedures: — Main Features −

One procedure for integrated processes such as audits, management review, training and certification.

−

Leading procedures are usually the quality procedures.

−

Specific procedures for specific process.

— Add-Value −

Fewer procedures by combining procedures, and eliminating the need for new procedures.

−

Less paper work.

−

Better covering of interrelated issues.

−

Easier implementation and use since all the information needed is in one document.

−

Better under standing and common language between Quality, Environmental and safety people.


Integrated writing team of professional from Quality, Environmental and Safety.

−

Good definition of the integrated process.

−

Good training.

4. Risk Management: — Main Features −

a. Risk management at 3 organization levels: x Organizational risks including safety. x Safety risks assessment. x Projects risks.

−

b. Unified method from which are derived the risk management


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processes for each type: x Organization risks. x Projects risks – Technical, procurement, financing, quality; x Safety risks and hazards. x Environmental risks. −

c. Specific procedures for specific process.

— Added Value −

Cross-organization risk management processes help management to determine priorities of risk mitigation.

−

Provides the management with an overall view of risk management status.

−

Unified reporting.

−

Enhancement of communication and openness between organization units.


Adequate training.

−

Procedures prepared by integrated multidisciplinary team.

−

Commitment and cooperation of managers.

−

Profound knowledge and professionalism in the risk type areas.

−

Start Implementation with pilot project.

−

Close control of the implementation process include periodical reassessment.

−

Good infrastructure which includes:

−

Risk management system.

−

System connected with project working plans.

−

Good data bank.

5. Lessons Learned Program: — Main Features −

Overall organization policy of event review and Lesson Learned implementation.

−

Lesson Learned implementation in macro and micro levels of the organization.

−

Closed control and follow up of Lesson Learned implementation.

−

Lesson Learned information and data are available in the organization Intranet.

−

Safety review process is derived from the main procedure.

— Added Value −

Keeping the organization knowledge and data for the coming generations.

−

Preventing occurrence of unwanted events.

−

Cost saving by preventing nonconformities, using unified methods, and less resources.

−

Enhancement of organization learning processes.


Defining and determining the process by multidisciplinary team.


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−

Infrastructure information data system and unified format tools.

−

Openness between organization units.

−

Promotion accurate reporting without penalties for mistakes.

−

Good system for communicating the information.

−

Information easily accessible.

−

Adequate training.

−

Follow-up implementation by management.

6. Employee Certification: — Main Features −

Single management system for certification and authorization of quality, safety, environmental and professional occupations.

−

The system includes: i. List of occupations requiring certification authorization. ii. Certification and authorization requirements. iii. Periodical follow-up. iv. Training programs. v. Regulations, legal and standards requirements.

and

— Added Value −

Single data bank;

−

Integrated training as required.

−

Follow-up of recertification.

−

Aid to preparation of training programs.

−

Real-time data on certification status.

— Conditions for success

Summary: Benefits Results

−

Management information system.

−

Good definition of certification and authorization requirements.

−

Cooperation between quality, safety, environmental and technology personnel.

The integration of the management systems in RAFAEL has begun with the certification process to those management systems. During the process a common language has developed between quality, environmental and safety personnel. Safety people have learned the ISO language and quality personnel have been exposed to what for them was a new profession. Quality personnel have also learned about environmental reviews and risk assessment, while safety personnel have learned about management reviews and closed loop corrective action. From Rafael's experience with certification processes, good coordination has been developed between the two systems when safety and environmental personnel lead the technical aspects and quality personnel led the process management and implementation of quality tools such as: audit, continual improvement, team skills, problem solving, metrics etc. We can summarize our gains from the integration by its contribution to the improvement of the company results:


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— Increasing the effectiveness of the processes. — Cost saving. — Enhancement of professionalism. — Creation of common language. — Integration of environment and safety in the Quality Manual and procedures. — Integration of Quality, Environment and Safety in External and Internal Audits. — Integration of Management Reviews. — In some cases, integration of functional units. Continual Improvement, lessons learned, the way forward or future direction

Main Issue problem coming from different professional culture and training level. Quality people culture was of preventing and improvement vs. fixing of the Safety and Environmental. Emphasize or the future is to extensive assimilation and looking for improving the integration process and increasing the number of processes participating.


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SENER Ingeniería y Sistemas, S.A.

Introduction Who are we, market, business content

SENER Ingeniería y Sistemas, S.A. (hereinafter SENER) is an independent, family owned, consulting engineering company, with headquarters in Getxo (Bizkaia) and other offices in Tres Cantos (Madrid), Barcelona, Valencia and the Canary Islands in Spain, as well as in Lisbon (Portugal), Mexico DF, Buenos Aires (Argentina) and Warsaw (Poland) SENER provides engineering services for studies and projects, including design (both design and software development), construction, assembly, integration and tests of equipment and systems (including production, integration, test, supplying and logistic support of equipment and installations), surveillance, upkeep, maintenance and integrated management. In order to be able to provide those services, technological disciplines have to be made use of, such as civil and structural engineering, mechanisms, mechanical engineering and processes, electrical engineering and instruments, electronics, actuation and control systems, electro-optics, data, image and signal processing, software development, simulation, artificial intelligence, computers and computing systems, telecommunication static and mobile equipment and systems, intelligence, supervision and surveillance systems. The mentioned engineering services are provided in fields of activity such as aeronautics, space, vehicles, communications, civil engineering, energy and environment, industrial processes, marine and naval engineering and medical devices.


The quality, environmental, and safety policy at SENER is aimed at ensuring that the projects it carries out, the services it provides, and the activities involved in these will be performed with due quality, in a manner that is respectful of the environment and that ensures safety conditions. Special attention will accordingly be given to compliance with the codes, regulations, standards, guides, etc. which are applicable in each field of activity, to the requirements in relation to quality, environment, and safety laid down by SENER, and to those contractually agreed to with the customer. The Integrated Quality, Environmental, and Safety Management System (hereinafter Quality Management System) is the instrument established by SENER top management for the achievement of the following objectives: — to satisfy customers’ needs; — to provide top management, those in charge of the project, and the entire firm, with confidence in the achievement of due quality, in a manner respectful of the environment and in adequate safety conditions; — to provide the customers, the government authorities and society in general with the same confidence; and — to ensure continual improvement in the overall quality of the projects and services provided.

The system and executive management’s position (leadership

In SENER, the director general personally assumes the overall direction of quality management, establishing the quality management policy and main system guidelines.


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response)

The director general has entrusted the management of the integrated quality system to the body known in SENER as quality, environmental, and safety management, which is independent and has sufficient authority to lay down the requirements of the system, to propose to general management the objectives and goals, to identify such problems as they may arise in relation to overall quality, to check that the solutions are implemented, and to check their effectiveness. The head of quality, environmental, and safety management is the person in charge of introducing, maintaining, and controlling the overall quality management system. He acts on behalf of the director general, to whom he reports on a quarterly basis, and as frequently as required, should the need arise. In those meetings the director general is informed about the performance of the quality management system, about the situations that might require his attention and, in addition, the quality indicator panel is presented. Yearly, a formal quality management system review is performed by the director general, so that any redirection of the system performance that might be necessary is detected and appropriate corrective and/or preventive actions are taken. Continued adequacy of the quality management policy is examined and changes adopted should the need arise. The quality management indicator panel is analysed and the quality objectives for the following year are established.


In the early eighties, when quality systems were not everyday tools, SENER was deeply involved in highly demanding projects, in fields of activity such as the nuclear and aerospace fields, which required the implementation of advanced quality tools and criteria. In the year 1994, on the occasion of the publication of ISO 9001:1994, SENER formally implemented and certified its quality system, pioneering the application and certification of quality systems among Spanish engineering firms. Later on, when quality referential applicable to given fields of activity were published – such as EN 9100:2003 for aerospace and AQAP 2110:2003 for defence– the quality management system was adapted to their requirements and certification sought. Besides that progression in quality, and as early as in year 1995, SENER’s management had also clear in mind that the company’s quality system should eventually include, not only quality aspects, but also environmental and safety management, and that all those aspects had to integrate a single management system and not three unconnected areas. No wonder, therefore, that when in 1995, the final drafts of the ISO 14001:1996 were made available, SENER enthusiastically started the design and implementation of an environmental management system, even when environmental aspects were apparently not that relevant for a consulting engineering organisation with no manufacturing facilities. Nevertheless, we soon realized that environmental indirect aspects, that is to say, those arising from the projects we performed for our customers, could be of paramount incidence on the environment. Under those considerations, SENER started the implementation of an environmental management system that was certified to ISO 14001:1996 in the year 2000. Similar considerations led us to the implementation of a safety management system, in which the indirect aspects, i.e. personal safety during the construction and during the operation of the facilities object of our projects, were of higher


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relevance than safety in our own premises. In the year 1996 we started the implementation of our safety management system. We encountered at the time, the added difficulty that no internationally accepted safety standard had yet been agreed and that we had first to select our system reference. We selected the specification OHSAS 18001:1999, as one widely accepted, and that has become along subsequent years a true de facto standard. SENER certified its safety management system in early 2001 to the mentioned specification. Main steps of implementation GRAPHICS

Even if the idea behind the implementation of the quality, environmental and safety management systems was integration, we realized after the certification of the three systems, that no real and full integration had yet been achieved and that the systems had to be considered as attached rather than integrated. Environmental and safety requirements were separately considered, both from the point of view of system and policy definition and from that of procedure preparation. In the year 2001 we considered to have established a compound system for the assurance of quality, environmental and safety requirements as a whole. We nevertheless felt that the compound assurance of requirements was far from being an adequate quality system. A further step had to be taken. On the occasion of the new trends established in ISO 9001:2000 towards quality management through process management, an effort was made to consider the three aspects of quality –quality, environment and safety– in a really integrated manner. Quality, environmental and safety aspects had to be considered in each process, rather than trying to respond to individual requirements of different standards. In 2005 the quality management system –note the change in terminology, parallel to what was established in ISO 9001:2000; we no longer speak of assurance of quality, environmental and safety requirements, but of quality management, implying that when processes are managed and performed, all three aspects of quality, environment and safety, are taken into account.


Although since 2005 the system integration can be considered as successfully achieved, in the framework of continual improvement, further steps towards integration enhancement have to be taken. Some aspects of integration need to be refined to a greater extent. Some of them are mentioned below, just as examples of improvement occasions. − Training - Training of heads of unit and internal auditors shall be improved. Perhaps the environmental and safety culture of technical officers still lags behind that of quality. Further education is needed. It is also convenient that both management and auditing of the integrated system be carried out by persons incorporating knowledge and capabilities on the three subsystems, so as to improve integration and performance. This aspect imposes some constraints in setting up a team. − Engineering capabilities - Environmental and safety aspects are generally not very well mastered by technical officers and engineers as quality aspects are. Some projects are highly dependent and can have potential impacts on environment and safety. Greater training and normative research efforts are still required.


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− Environmental and safety objectives and their respective indicators can often not be so easily established in the processes inherent to a consulting engineering firm, since many of them are highly dependent on customers’ and suppliers’ interaction. The attitude towards the customer has necessarily to be that adopted between consultant and adviser, whereas towards the suppliers it depends on the subcontracting needs of the engineering firm, which are not normally very high. Perceived v. actual benefits

Two are the main benefits that can be obtained through management system integration. One is common to any type of company, consisting of management cost reduction that can be achieved from the non repetition of activities that are common to the three systems. One can realize that many activities, other than operational control, are to a high degree coincident in them. Let us mention for instance, auditing activities, non conformance control, corrective and preventive actions, system review by the general management, supplier control, etc. But, important as the reduction of costs might be, the major benefit of integration, for a consulting engineering organization is the systematic analysis of functional, environmental and safety aspects of customer needs and normative requirements that integration brings to a project. This will certainly be to the advantage of the overall project quality and thereof resulting product.


Apart from continuing along the integration improvement path, as a policy inherent to any sound management system, following models like UNE 66177, two main lines of progression along the integrated quality management path are guiding SENER’s future system activities. On the one hand, whenever the organisation becomes active in a new activity field, the quality management system has to be adapted to any referential that might be available for the field –such as ISO 29001 for petrochemicals and ISO 13485 for medical devices, that are foreseen for the medium or near future. On the other hand, new overall aspects of quality management are on sight, such as information security management (ISO 27001 standard), social corporate responsibility (ISO 26000), etc. Adaptation of our quality management system to the requirements of ISO 27001 is already on, and certification to it, expected for the next few years. Application of some other useful standards is also envisaged, such as ISO 9004 for performance improvements, etc. In sum, we are fairly confident that progression along this management system standards path will make our management system converge on due time with the models of excellence in management that have nowadays wide acceptance in the industry.


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IMS Case Study Annex

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