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Implementing a Quality Management

System
A Financial Perspective
By
Cecil D. White

World Quality Day Symposium Nov. 10, 2011

Presentation Topics
1

Defining the QMS?


2

The benefits?

The Costs?

Is it worth it?

What is a Quality
Management System?

Policies,
Processes
Procedures

What is a Quality
Management System?
Required for planning and
executing business processes

To meet customer requirements


Accredited to International
Standards
ISO 9001:2008 is an example

A Cultural Transition

A PHILOSOPHY

Change

It Requires ..

1.
2.
3.
4.
5.

Leadership
Determination
Resilience
Commitment
Engagement

Requires Leadership

RESILIENCE

How to Engage your


Employees?

It Requires ..

1.
2.
3.
4.
5.

Trust
Inspiration
Openness
Training
Incentives

Create a Trusting
Environment

Be Inspirational

Communicator

Create a Learning
Evironment

Offer Rewards &


Recognition

What are the benefits?

Success Determined by
State of Preparedness
Size of Organization
Complexity of processes

ISO STANDARD
10014:2006
Quality Management Guidelines
for
realizing financial and
economic benefits

A Strategic Choice
Effective Application of ISO 9000 QM
Principles = Financial & Economic
benefits

Financial benefit results from costeffective management practices within


the organization.

Economic benefit results from


improvements in the overall worth and
health of the organization.

ISO 9001 Management


Principles
1. Customer Focus
2. Leadership
3. People Involvement
4. Process Approach
5. Systems Approach
6. Continual improvement
7. Factual Approach to Decision Making
8. Mutually Beneficial Supplier Relationships

Derived Benefits

improved profitability, improved revenues,


improved budgetary performance,

reduced costs, improved cash flow, improved return


on investment,

increased competitiveness, improved customer retention


and loyalty, improved effectiveness of decision making,
optimized use of available resources,

heightened employee accountability, improved intellectual


capital, optimized, effective and efficient processes,

improved supply chain performance, reduced time to


market,

enhanced organizational performance, credibility and


sustainability.

Realization of Benefits

INPUT
S

PROCE
SS

OUTPU
TS

The Inputs

1. Customer Focus
2. Leadership

3. People Involvement
4. Process Approach
5. Systems Approach
6. Continual improvement
7. Factual Approach to Decision Making
8. Mutually Beneficial Supplier Relationships

The Process
Assess requirements,
Plan activities,
Allocate appropriate resources,
Implement continual improvement
actions,

Measure results to determine


effectiveness,

Output / Result
Financial Benefits

improved profitability,
improved revenues,
improved budgetary performance,
reduced costs,
improved cash flow,
improved return on investment,

Increased Productivity

Everyone Wins

Everyone Wins

What are the costs?

Costs Determined by
State of Preparedness
Size of Organization
Complexity of processes

Costs

1. Registrar
2. Internal

Registrar
1. Auditors Fees & Expenses
2. Application Fee
3. Registration Fee
4. Initial Assessment
5. Registration audit
6. Surveillance Audits
7. Re-registration

Internal Cost
1. Sensitization
2. Gap Analysis
3. Training
4. Documentation
5. Implementation
6. Internal Audits
7. Consultant

Bewar
e of
The
Iceber
g
Effect
Only
10%
Visible

Is it worth it?

Implementing ISO 9000:2001

A Case Study

NHF 2003

Government Agency
Startup company
Provision of benefits
Customer base 150,000
Single location
Employees - 34

Steps to ISO 9000


Certification
1. Hire Quality Management Consultant
2. Conduct Gap Analysis
3. Establish Quality Policy
4. Redefine Business Processes
=> 3 Core Processes
Individual Benefits
Institutional Benefits
Health Promotions

Steps to ISO 9000


Certification
5. Company Wide Quality Seminar
6. Prepare Quality Manual (electronic records)
5. Quality Policies
6. Quality Objectives
5. 21 Procedures

7. Establish Quality Metrics


8. Prepare Work Instructions

Steps to ISO 9000


Certification
9. Quality Training for ALL
9. Audit Training (34 employees)

10.Appoint Lead Auditors


11.Conduct Pre-Assessment Audits (2)
12.Contract Registrar
ISOQUAR Ltd (2005 2009)
NCBJ (2009 present)

Steps to ISO 9000


Certification
13.Registration Audit
13.Audit Training (34 employees)

14.Conduct Internal Audits


13.2 per year

15.Surveillance Audits
13.2 per year

16.Re-Registration Audits
2008, 2011

How much does it cost?


First Year US$
18,000
Annual US$
5,000

How much does it cost?


First Year US$
18,000
Annual US$
5,000

Our Experience
A QMS involves more that
HARD measures of quality

SOFT Measures
Teamwork
Empowerment
Management style
Working environment

Lessons Learnt
1. Shift in Management Philosophy
2. Culture of Continuous
Improvement

3. Training is Key
4. Effective Communications
5. Recognition of Achievements
6. Results in Improved Productivity

NHF UPDATE
Expansion through Merger
Mature organization
Provision of benefits, Supply
Chain, Retail Pharmacy

Customer base 450,000


Multiple Locations
Employees - 250

THE END

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