IMPLEMENTING A
QUALITY MANAGEMENT SYSTEM

What the CEO would want to know

When confronted by the decision of whether to implement a formalised Quality Management System, the CEO will want answers on primarily two questions.

• What are the likely benefits to the organisations?
• What will it cost the organisation and how long will it take to implement?

The benefits of a formal system implementation massively outweigh the informal approach.
The top four reasons (externally articulated) for getting certification are:

• products and services associated with ISO 9000 seen as being of higher quality, and customers are more likely to contact a company if it has ISO 9000. Enhancing the company’s image in the market place. Customers tend to notice 'ISO 9000' in the labelling and marking of products/services. Consumers also possess greater levels of trust and confidence in ISO 9000 products and services.
• Responding to customer demand (pressure imposed on the company to comply).
• Getting preferred supplier status .
• Improved return on investment.

The top internal reasons are:

• Establish better control over business operations. (Maintain clearer communication and accountabilities; significant reductions in product development time and customer complaints.) 
• To provide a foundation for continuous improvement.

The major benefits that accrue are:much improved relations with customers, better control of business processes, optimisation of business knowledge and information, and also in organisation strategy & culture, such as improving your managerial policies & procedures.

What will it cost the organisation and how long will it take to implement?

The implementation cost can vary widely as it is dependent on the unique situation of each company. (Example: The cost for a 40 employee company could be in the realm of R60,000 – R80,000). The cost can however be staggered over the duration of the project to ease any cash flow difficulties.

The mean time to implement ISO 9001:2000 is approximately 8 months. The accreditation companies require at least 3-4 months of working data, but we have completed companies in as short a period of time as 4-5 months.

What are the likely benefits to the organisation?

• products and services associated with ISO 9000 seen as being of higher quality, and customers are more likely to contact a company if it has ISO 9000. Enhancing the company’s image in the market place. Customers tend to notice 'ISO 9000' in the labelling and marking of products/services. Consumers also possess greater levels of trust and confidence in ISO 9000 products and services.
• Responding to customer demand (pressure imposed on the company to comply).
• Getting preferred supplier status.
• Improved return on investment.

The top internal reasons are:

• Establish better control over business operations. (Maintain clearer communication and accountabilities; significant reductions in product development time and customer complaints.) 
• To provide a foundation for continuous improvement.
• The major benefits that accrue are : much improved relations with customers, better control of business processes, optimisation of business knowledge and information, and also in organisation strategy & culture, such as improving your managerial policies & procedures.

What will it cost the organisation and how long will it take to implement?

The implementation cost can vary widely as it is dependent on the unique situation of each company. (Example: The cost for a 40 employee company could be in the realm of R60,000 – R80,000). The cost can however be staggered over the duration of the project to ease any cash flow difficulties.

What a Quality Management System does

The benefits are numerous. Internally , your company will use a management system that allows consistent quality of products and services. Having an ISO certificate helps your company to market its products and services to your prospects as ISO certifications become a good credential indicating that your company focuses on quality, customer satisfaction and continual improvement. Externally , your company’s image is enhanced in the market place. Customers and suppliers alike prefer to do business with ISO accredited companies because there is a greater perceived level of trust and confidence.

Why would you want to adapt your system to be a formalized Quality Management System

Feedback from ISO 9001:2000 Registered companies shows what you can expect as the payoff from all of your hard work.

• Because of the responsibilities called out in the ISO 9001:2000 Standard, organizations often see an increased involvement of top management with regards to the Quality Management System. This starts with the setting of the Quality Policy and Quality Goals and Objectives. It continues with Management Review looking at data from the QMS, and taking actions to make sure that Quality Goals are met, new Goals are set, and continual improvement is achieved.
• With the QMS in place and working for you, the organization is focused towards the Quality Goals.
• Management is provided with data on a continual basis and able to see progress or lack of progress towards goals and take appropriate action.
• Customer satisfaction increases are seen as Goals and Objectives take the customer needs into account.
• Customer needs are better understood as customer feedback is sought, received and analyzed. Goals and objectives are adjusted based on the information and the organization becomes more customer driven. Satisfaction increases are seen as Goals and Objectives take the customer needs into account.
• As goals focus on the customer, the organization spends less time focussing on individual goals of departments and more time working together to meet customer needs.

All of this leads to financial rewards, your reward for your hard work and investment in the Quality Management System. In a study conducted by researchers from UCLA results showed that companies that receive certification under the ISO 9000 Quality Standard show significant improvement in financial performance compared to those companies that have not pursued the standard.

What we offer

• Results-linked remuneration welcomed
• 1-2 Assessment days free (by two experienced facilitators)
• Appoint a Quality Manager (or Quality representative) for you – or: train someone in your organization for this role
• Develop your Quality Manual; develop and implement all other related documentation that is required
• Setup legal register
• Setup Internal Audit schedules – oversee audit program
• Provide all the necessary training and couching to successfully maintain your ISO System
• Manage all interactions with the Certification body on your behalf
• Setup Key Performance Areas and KPI’s for your staff
• Optimize Accountability and Responsibility Matrix (RACI)
• Supplement and strengthen your team

Top seven Quality Standards

• ISO 9001:2000 Quality Management System
• ISO 14001:1996 Environmental Management System
• OSHAS 18001:1999 Occupational Health and Safety Management System
• ISO 20,000 & 27,000: IT Service management & Information Security Information Systems
• ISO/TS 16949 Automotive
• ISO 13485 Medical Devices
• ISO 22000 Food Safety

Getting there

From this chart you can visualize the stages.

It is important to note that even if your goal is not ISO accreditation you should still strive to adopt world class quality procedures and standards.

We can take you to the level where the organization has a competent and effective quality system in place. For your current business needs this will more than reach the requirements for a sustainable quality system.

As time goes by you may well consider the need for formal accreditation. With a few more steps we can assist you to complete this stage.

Click on graph to enlarge