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SAE Technical Papers

Title: Principles of ISO Management System Integration/Transition (ISO 9001:2000/ISO 14001:1996) Document Number: 2005-01-0536 Author(s): Edward W. Surette - TUV America Abstract: Industry has become a place of constant change, with mergers, layoffs, bankruptcy, restructuring and now the requirements of customers for their suppliers to become certified to multiple (ISO) standards. The development of any one standard has typically been costly and time consuming, roughly $30,000 to $60,000 and 6 months of intensive implementation at all levels of the organization. No matter the scale, when these kinds of changes hit the workplace, the literal, situational shifts are often not as difficult for employees and managers to work through as the psychological transitions that accompany them. Indeed, organizational transitions affect people; it is always people who have to embrace a new situation and carry out the corresponding change. The International Organization for Standardization is a worldwide federation of national standards bodies. This organization has released several stand-alone documents governing management systems to support varied industry sectors and products. Each of these standards is specifically designed to assist an organization in enhancing customer satisfaction through continual improvement methodologies. The quality management systems most commonly identified include: ISO 9001:2000 which specifies requirements for all types and sizes of companies to implement and operate an effective quality management system; ISO/TS16949 specifies quality management system requirements more related to the automotive industry; ISO 14001:1996 is an International Standard for Environmental Management Systems, for which the ISO 9001:2000 has been aligned in order to enhance the compatibility of the two standards for the benefit of system integration. This paper defines the tools necessary for a controlled, systematic and transparent integration of the ISO 9001:2000 and the ISO 14001:1996 management systems. It will also present actual case studies of companies who have gone through this transition. The toolbox presented includes a review of the two management systems, their similarities and their specific stand-alone requirements. It describes in detail how a common systems manual can be established and implemented at all levels of the organization. The toolbox includes the following: - The integration of ISO 19011:2002(E) "guidelines for quality and/or environmental management systems auditing" into the overall system performance requirements. This focuses on the management of audit programs, the conduct of internal or external audits of a combined quality and environmental management system, as well as on the competence, training and evaluation of auditors. Where quality and environmental management systems are implemented together, it is at the Standard user's discretion as to whether the quality management system and environmental management system audits are conducted separately or together. - Management Support of Continual Improvement; senior management review of the combined QMS/EMS is a tool to keep the organization on course. It provides a high-level examination of where the QMS/EMS has been and where it needs to go, in order to meet established goals and objectives. This overview may also provide an opportunity to identify additional goals and objectives that need to be established for effective and efficient functioning of the QMS/EMS. This paper is an invaluable managerial tool for navigating through a tumultuous time. As concern grows for maintaining and improving the quality of the environment and protecting

human health, organizations are increasingly turning their attention to the potential environmental impacts of their activities, products or services. The environmental performance of an organization is of increasing importance to internal and external interested parties. Achieving sound environmental performance requires organizational commitment to a systematic approach and to continual improvement of the organization's management system(s). The majority of organizations interested in implementing an environmental management system conforming to ISO 14001 requirements are already registered to a Quality Management system such as ISO 9001:2000. There are an increasing number of companies certified to multiple management systems which maintain these systems autonomously but are doing so at a considerable, unnecessary cost. An organization's cost position results from the cost behavior of its value activities. Cost behavior depends on a number of structural factors that influence cost, which are termed cost drivers. The cost of maintaining multiple Management Systems is affected by how all activities are performed. Proper linkages create the opportunity to lower the total cost of combined activities. They provide a potentially powerful source of cost advantage because linkages are subtle and require joint optimization between these management systems across organizational lines. When linking ISO 14001:1996 and ISO 9001:2000, changing the way one of them is performed can reduce the total cost of both. These linkages will lead to opportunities for cost reduction through two mechanisms: coordination and optimization. A comprehensive management system is at the core of the success or failure of any organization. Top management determines the appropriateness of the organization's activities that can contribute to its performance, such as: innovations, a cohesive culture, or good systems implementation. Management system strategies aim to establish a profitable and sustainable position against the forces that determine profitability. It is intended that the implementation of an Environmental Management System (ISO 14001:1996) into an established Quality Management System (ISO 9001:2000) described by their appropriate specifications will also result in improved environmental performance. This is based on the concept that the organization will periodically review and evaluate its management systems in order to identify opportunities for improvement and their implementation. Such improvements to their management systems should impact their overall performance. The Environmental Management System (EMS) provides a structured process for the achievement of continual improvement, the rate and extent to be determined by the organization's given current economic and other circumstances. Although some improvement in environmental performance can be expected by adopting a systematic approach, it should be understood that the Environmental Management System is a tool to enable the organization to achieve and systematically control the level of environmental performance that it determines. The establishment and operation of an Environmental Management System will not in itself, necessarily result in an immediate reduction of adverse environmental impact. An organization has the freedom and flexibility to define its boundaries and may choose to implement this system as a stand-alone entity or link it into the ISO 9001:2000 framework. The level of detail and complexity of the combined management systems, the extent of documentation and the resources devoted to it is dependent on the size of an organization and its activities. This may be the case in particular for small and medium-sized enterprises. Integration of environmental matters with the overall management systems can contribute to the effective implementation of the combined management system, as well as to the efficiency and clarity of roles. File Size: 273K Product Status: In Stock See other papers presented at SAE 2005 World Congress & Exhibition, April 2005, Detroit, MI, USA, Session: The Evolution of Automotive Environmental Standards and Regulations