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Developing a Generic Standard

For
Organizations Compliance :
QMS, EMS, OHSMS, EnMS

Prepared by: Fadzilah Mohamad
Submission Date: 19-Aug-2013

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Table of Contents
CHAPTER 1 ................................................................................................................................................ 4
INTRODUCTION ....................................................................................................................................... 4
1.1 Background of the Research ........................................................................................................... 4
1.2 Objective of the research ................................................................................................................ 5
1.3 Scope of the research ...................................................................................................................... 6
1.4 Importance of the research .............................................................................................................. 8
1.5 Limitation of the research ............................................................................................................... 9
1.6 Layout of the thesis ........................................................................................................................ 9
LITERATURE REVIEW .......................................................................................................................... 10
2.1 Introduction 10
2.2 Evolution Of Management System Standards 10
2.3 Quality Management System (Qms) 13
2.4 Environmental Management System (Ems) 16
2.5 Occupational Health And Safety Management System (Ohsms) 18
2.6 Energy Management System (Enms) 20
2.7 Integrated Management System (Ims) 22
2.8 Methods Of Integrating The Management Systems 25
2.9 Types Of Management Systems Integration 26
2.10 Approaches For Integrating The Management Systems 26
2.11 Critical Success Factors Of Ims Implementation 27
2.12 Benefits Of Ims Implementation 29
2.13 Barriers For Implementing Ims 30
2.14 Conceptual Framework 30
2.15 Conclusion 31
CHAPTER 3 .............................................................................................................................................. 33
METHODOLOGY .................................................................................................................................... 33
3.1 Introduction.................................................................................................................................. 33
3.2 Survey.......................................................................................................................................... 34
3.2.1 Design of the Survey ............................................................................................................ 34
3.2.2 Design of the Questionnaire ................................................................................................. 36
3.2.3 Instrument Validity and Pilot Study ...................................................................................... 36
3.2.4 Implementation of the Survey ............................................................................................... 37
3.2.5 Data Analysis ....................................................................................................................... 37
3.3 EXPERT SAMPLING 38
3.3.1 Design of the Expert Sampling Instrument ............................................................................ 38
3.3.2 Implementation of Expert Sampling ..................................................................................... 38
3.3.3 Justification ......................................................................................................................... 38
3.4 Conclusion ................................................................................................................................... 38
REFERENCES 40
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CHAPTER 1
INTRODUCTION
1.1 Background of the Research
The modern definition of quality extends beyond products/ services
specifications to encompass the requirements of a variety of stakeholders. Stakeholder
requirements vary from ensuring employees health and safety, sustainability, customer
satisfaction, and transparency in organizational affairs to execution of business processes
in a socially responsible manner (Muhammad Asif, Fisscher, Brujin, & Pagell, 2010)
.These are the factors that obliging manufactures and suppliers to ensure all activities,
products and services are complying with the requirements namely, quality,
environmental and occupational health and safety. The energy is another element being
stressed as the thirst is growing. Thus an Integrated Management System adaptation is
favorable for companies.
IMS do not have a specific International Standard for compliance. So does in the
case of IMS practitioners. No database of IMS practitioners is available for referencing.
However, we can observe that a few MSSs which seems to have increasing number of
certificates issued namely Quality Management System (QMS), Environmental
Management System (EMS), Occupational Safety and Health Management System
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(OHSMS), Energy Management System (EnMS), Food Safety Management System
(FSMS) and Information Security Management System (ISMS). Some of it is multiple
certifications to the same companies.
Australia, Denmark, Spain and Great Britain are among the countries that have
developed national guidelines (Bernardo, Casadesus, Karapetrovic, & Heras, 2010).
Even though there is no International Standard released by International Organization
for Standardization (ISO), understanding the quest in the market, ISO has published a
handbook on Integrated Use of Management System Standards. This book provides
related methodology and are supported with a variety of case studies (Casadesus,
Karapetrovic, & Inaki, 2011).
The benefits and barriers are frequently discussed and shared to encourage IMS
implementation in companies, especially by the practitioners in the field. Among the
examples of benefits of IMS for the organization are cost saving, resources saving,
energy saving and reduced paper works. In contrast, the examples of barriers are the
lacking of top management commitment, internal organizational issues, resistance of
employees and lack of human resources.
In adapting MSSs, the implementation methods suggested are either sequential
implementation or simultaneous implementation. Sequential implementation is
recommended for those companies that already certified with multiple singular MSS
certification. However, for those new companies, it is strongly suggested by the
practitioners to apply simultaneous implementation, so that a unique MSS can be
established which covers multiple MSSs requirement.
1.2 Objective of the research
Companies interest in managing product quality, resources, energy and
environment has developed somewhat separately, as has the interest of scholars and
international(Giancarlo, 2005). Although interest in, and commitment to, quality is a
widespread feature of all branches of manufacturing industry, the same cannot be said of
interest in others i.e. environmental, occupational health and safety and energy. This is
due to the concern of additional cost and resources that is required in managing them.
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But, with the awareness that MSSs are tools that could support in strategic management
of the elements required by the stakeholders, massive number of companies are pursuing
for certifications.
Hence, the objectives of this research are:
i) To assess the status of IMS implementation in the Malaysian manufacturing
companies
ii) To investigate the strategies for implementing IMS and its implementation in
the Malaysian manufacturing companies
iii) To propose the strategies for implementing IMS in the Malaysian
manufacturing companies
1.3 Scope of the research
The coverage of this study will be on generic standard/ framework of IMS
implementation in Malaysian manufacturing companies. The scope will be limited to:
i. Generic Standard/ Framework will mean a general guideline to support
any companies that intends to pursue IMS implementation. This will
include strategies of implementation i.e. Methods of integrating, types of
integration, approaches of integrating, benefits and barriers, as well the
Critical Success Factors (CSFs) that will contribute to the success of the
IMS implementation.
ii. Organization is referring to manufacturing. It is selected because the
contribution of the sector is the second largest as reported in Figure 1.1. It
reflects that manufacturing sectors is contributing 25.0 % to the GDP of
Malaysia in 2013, which ranks it as the second largest contributor to the
countrys economy (Economic Planning Unit, 2013). Besides, SME
Master Plan 2012-2020 is aiming towards internationalization of SMEs in
Malaysia too, within the stipulated time period (National SME
Development Council, 2012).
iii. The sample consists of companies with certification of a minimum two
MSS within the range of QMS, EMS, OHSMS and EnMS. The trio is the
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most common standard in Malaysia (MOSTI- Ministry of Science
Technology and Innovation; MSAC- Malaysian Standards and
Accreditation Council, 2011). The EnMS, though new, is significant to
look into. The Malaysian Governments National Productivity
Corporation hosts an e-benchmarking database on energy efficiency,
supported by the Department of Statistics and prepared in collaboration
with industrial associations United Nations Industrial Development
Organization (UNIDO). The database provides plant-level energy-
efficiency data and has led to the identification of potential energy-
efficiency savings of 4045 percent in the cement and rubber industries,
some of it requiring little investment (United Nations Industrial
Development Organization, 2011).
iv. Malaysia is selected due to the sample companies are easily accessible
since the researcher and respondent are locals, and obviously, the number
research relating to MSS conducted in Malaysia are not much.
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Figure 1.1 Contributions by Industrial Sectors(Economic Planning Unit, 2013)
1.4 Importance of the research
The percentage of companies reporting a positive effect is higher for the
organizations with multiple MSS certificates than for those with a single
certificate(Casadesus et al., 2011). Malaysian organizations are paying more attention to
the needs of management standards and best practices. It was also evident from the
survey, systems integration is getting popular among the organization for example ISO
9001 being integrated with ISO 14001 and OHSAS 18001(Idris, Aziz, & Zailee, 2012).
Therefore, it is advantageous exposure:
i. To review the present status of IMS implementation in the Malaysian
manufacturing companies, since no updated data is available
ii. To provide assistance and structured guidance to companies for
implementing IMS and getting through the implementation
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iii. To encourage more companies to adapt IMS so that the MSSs subscribed are
holistically practiced in the organization
iv. To recommend possible synergies within the MSSs being certified.
v. As an additional literature on present business environment in Malaysia.
1.5 Limitation of the research
This study covers the manufacturing industries in Malaysia only and only four
MSSs, namely QMS, EMS, OHSMS and EnMS. The extent of integration will purely
depend on the commitment, need, resources availability and readiness for a change
within the organizations. The samples taken are from mainly from FMM2013 directory,
where only registered members are listed. It will be more comprehensive to refer to
Companies Commission of Malaysia, where any businesses in Malaysia are registered,
in order to have better numbers of samples.
1.6 Layout of the thesis
This thesis consists of five chapters as below stated:
Chapter 1 introduces the research background, objectives, scope, importance,
and limitations of the research.
Chapter 2 explains detailed Literature Review Relating to the topic
Chapter 3 describes the Methodology to be applied to gain appropriate survey
result of the research
Chapter 4 analyzes and discusses the result of the survey based on the data
collected and compiled.
Chapter 5 concludes the finding in relation to the research objectives and
suggests future research idea.

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Chapter 2
LITERATURE REVIEW
2.1 Introduction
This chapter presents an overview of the Integrated Management System (IMS)
and the four elements that have been selected for the integration purpose. As to begin
with, the definition of the Quality Management System (QMS), Environmental
Management System (EMS), Occupational Health and Safety Management System
(OHSMS) and Energy Management System (EnMS) are explained. Also explained are
ways of integrating the management systems, types of integrations, approaches for
integrating the management systems, frameworks of IMS, barriers and benefits of
implementing IMS and the Critical Success Factors of IMS. Finally, a conclusion of this
chapter is presented.
2.2 Evolution of Management System Standards
The compliance and certification to Management Systems Standards (MSSs) are
voluntary. However, they are being emphasized as essential criterion towards business
and corporate sustainability. From a corporate perspective, sustainability encompasses
economic, environmental and social issues that have business implications (Muhammad
Asif, Searcy, Zutshi, & Ahmad, 2011).In addressing the challenges of corporate
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sustainability, such as rapidly changing market conditions, coordination of operations at
a global level, and increased reliance on outsourcing, a number of MSSs have emerged
to help managers to systematically address the key stakeholder requirements, which are
published by International Organization for Standardization (ISO) and OHSAS Project
Group- specifically on OHSAS18001-(Muhammad Asif et al., 2011).
The ISO story began in 1946 when delegates from 25 countries met at the Institute of
Civil Engineers in London and decided to create a new international organization to
facilitate the international coordination and unification of industrial standards. In
February 1947 the new organization, ISO, officially began operations. Since the term
'International Organization for Standardization' would have different acronyms in
different languages (IOS in English, OIN in French for Organisation internationale de
normalisation), the founders decided to give it the short form ISO. ISO is derived from
the Greek word isos, meaning equal(International Organization for Standardization).
The MSSs published by ISO includes general standards, sector specific standard and
product specific organizational requirements (Romero, 2006). MSSs published by ISO
are indexed with ISO acronym followed by an index number. Whilst, MSS on
Occupational Health and Safety (OHS) was published separately, by the Group
comprised representatives from National standards bodies, academic bodies,
accreditation bodies, certification bodies and OSH institutions with the UKs national
standards body, BSI Group, providing the secretariat ("OHSAS18001,"). Occupational
Health and Safety Assessment Series (OHSAS) aims to certify an OHSMS that is able to
create and maintain safe workplace conditions and protect employees from workplace
injuries and illnesses(Fan & Lo, 2012). OHSAS 18001 is compatible with ISO9001 and
ISO14001.
With the introduction of the ISO 9001 Quality Management System standard in
1987, standards have been progressively developed for environmental management (ISO
14001), safety (OHSAS 18001), and corporate social responsibility (AA1000), to name
a few. It is clear that new standards continues to emerge and existing standards is
undergoing periodic updates(Rocha, Searcy, & Karapetrovic, 2007). For example,
ISO50001:2011 Energy Management System (EnMS) is a newly launched standard, to
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enable organizations to establish the systems and processes necessary to improve energy
performance, including energy efficiency, use and consumption. Implementation of this
International Standard is intended to lead to reduction in greenhouse gas emissions and
other related environmental impacts and energy cost through systematic management of
energy(Project Committee ISO/PC 242 Energy Management, 2011).
Romero(Romero, 2006) have listed some examples of MSSs as shown in Table 1.
This table has been edited to consist ISO launched standards. OHSAS18001is added on
to this table as a general standard, since it also aims to certify an OHSMS that is able to
create and maintain safe workplace conditions and protect employees from workplace
injuries and illnesses(Fan & Lo, 2012).
Table 2- 1: Examples of MSSs
General Standards
ISO9001 Quality Management System (QMS)
ISO14001 Environmental Management System (EMS)
ISO50001 Energy Management System (EnMS)
OHSAS 18001 Occupational Health and Safety Management System
(OHSMS)
Sector Specific
ISO 22000 Food Safety Management System (FSMS)
Product Specific
ISO/TS 16949 QMS for Automotive
ISO 13485 QMS for Medical Devices
ISO/TR 14061 EMS for Forestry organization
Consequently, the trend of certifications to management system standards is
reflecting its significance in the present business world. Figure 1 below depicts the
worldwide ISO certification trend. As of 2011, a number of 1,111, 698 certificates were
issued on ISO9001 Quality Management System (QMS), 267, 457 certificates were
issued on ISO14001 Environmental Management System (EMS) and a number 92, 302
certificates were issued on OHSAS18001 Occupational Safety and Health Management
System(OHSMS). Besides, ISO50001 had 461 certificates issued worldwide within the
same year of launching.(ISO Survey, 2012; OHSAS Project Group, 2012). These four
MSSs are general standards. Other product specific standard like ISO/ TS 16949 QMS
for Automotive product (20, 034 certificates), ISO13485 QMS for Medical Devices
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(47, 512 certificates) and ISO22000 Food Safety Management System (19, 980
certificates) are product specific. Whilst, ISO27001 Information Security Management
System(17, 509 certificates) are sector specific. The demand trend is also increasing.
However, the number of certificates issued for these standards are lower probably due to
the limitation of the standard in terms of products and sectors.
Figure 2- 1: Trend of MSS Certification Worldwide


Source:(ISO Survey, 2012; OHSAS Project Group, 2012)
With this data, it is known that multiple standards are being adapted by many
organizations. However, the extent of adaptation and implementation of Integrated
Management System seems limited. No database of practitioners adapting IMS found
for referencing. Based on discussion with local Management System Auditors, the
database are maintained as single management systems since the certificate issued are
meant for individual MSSs, even though the audit may have been carried-out as
integrated audits.

2.3 Quality Management System (QMS)
-
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1
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1
9
9
4

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ISO9001 ISO14001 ISO50001 ISO13485
ISO/TS16949 ISO22000 ISO27001 OHSAS18001
Year
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Among the popular QMS standards, both in Malaysia and throughout the world
as of 2011 are ISO9001 Quality Management System, ISO/ TS 16949 QMS for
Automotive Products and ISO 13485 QMS for Medical Devices. However, based on the
data, ISO9001 is the most popular with the highest number of certification recorded.
ISO/ TS 16949 and ISO 13485 have lesser demand due to it is product specific. (ISO
Survey, 2012). These standards are based on ISO9001 and added with specific
requirement related to the product that its meant for.
The purpose of the ISO 9000 standards is to assist organizations in all sectors
and sizes to implement and operate an effective quality management system (QMS)
(Wahid & Corner, 2009). However, motivation for the introduction of this standard
differs considerably and is most often connected with demands, requested by customers
in supply chains. Companies that implemented the standard keep asking the question
whether it was worth it to maintain the quality system and what added value it
brought(Piskar & Dolinsek, 2006) . Yet, companies or organizations that have seriously
adapted and practically implemented the system are able to benefit from it in the long
run.
Among the key benefits discussed in literatures are summarized in Table 2
(Lourenco, Fonseca, & Mendes, 2012) below:
Table 2- 2: External and Internal Benefits of QMS
EXTERNAL BENEFITS INTERNAL BENEFITS
Access to new markets Improved productivity
Improved company image Reduction for defective products
Improved Market Share Improved quality awareness
Improved relationship and communication with
the client
Definition of staff responsibilities and obligations
Customer satisfaction Improved in delivery times

Improved internal organization (Clarity of work
procedures and documentation systems)
Reduction of non-conformities
Decrease in customer complaints
Improved internal communication
Improved product quality
Improved competitive advantage
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Motivation of staff

In 2011, there are 1, 111, 698 certificates of ISO 9001 Quality Management
System(QMS) released to 180 countries, of which 10, 757 was to Malaysia (ISO Survey,
2012). Even though it is indicating a drop of 1% compared to 2010, it demonstrates
QMS acceptance by the organizations, besides the market saturation of QMS. In other
word, this is an impression that most of the organizations world-wide have adapted to
ISO9001 QMS, which also reflects that the significance of QMS implementation in
organizations.
QMS consists of five auditable clauses, namely as quality management system,
management responsibility, resources management, product realization, and
measurement, analysis and improvement. All these clauses are linked in the ISO9001
model as illustrated in Figure 1 (ISO, 2000)
Figure 2- 2: QMS Implementation Model


The purpose of ISO9000 standard is to assist organization in all sectors and sizes
to implement and operate with an effective QMS (Wahid & Corner, 2009). However, the
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motivation for the adaptation of QMS differs, most often connected to customers
demand, through the supply chain. But, as discussed by Franka Piskar and Slavko
Dolinsek, the question that haunts the companies adapting QMS is, whether it is worth
to maintain the implemented QMS and will there be any value added point, which it may
bring to the organization in the nearest future. On the other hand, based on the financial
indicators, it reflects that the QMS does bring effectiveness and efficiency to the
business process(Franka Piskar; Slavko Dolinsek, 2006). ISO9000 comprise of 8
principles derived from collective experience and knowledge of international experts
which are customer focus, leadership, involvement of people, process approach, system
approach to management, continual improvement, factual approach to decision making
and mutually beneficial supplier relationship (Burt, Dobler, & Starling, 2004).

2.4 Environmental Management System (EMS)
Chernobyl Accident is one of the serious industrial disasters that will serve as a
good hint of the significance of EMS, where a nuclear-power complex had two
explosions in one of the reactors, which blew-off 1, 000 tonnes of cover plate and the
roof of the building. The accident occurred at 01:23am on 26April1986, due to fatal
combination of design, illegal operation and unauthorized experiment. A land area of
23, 000km
2
were heavily contaminated, followed by a large scale restriction of
agricultural activities and mass evacuation of both urban and rural areas. Much of the
land area remains as Exclusion Zone till today(Bell & Shaw, 2005).
Besides the industrial environmental disasters, the ISO 14000 standards for
environmental management systems (EMSs) emerged also, as a result of the
negotiations at the Uruguay round of the General Agreement on Tariffs and Trade
(GATT) and the 1992 Rio de Janeiro summit on the environment (SX Zeng; P Tian;
Jonathan J Shi, 2005). Thus far, in 2011, a number of 267, 457 certificates of ISO14001
Environmental Management Standard (EMS) were released to 158 countries, of which 1,
934 were issued to Malaysian organizations too(ISO Survey, 2012).
The ISO14001 standard provides an orientation for the establishment of EMS
that can help firms to demonstrate publicly their commitment with the protection of the
natural environment. It is based on three principles i.e. pollution prevention, continuous
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improvement and voluntary participation (Bansal & Hunter, 2003)(Murillo-Luna &
Ramon-Solans-Prat, 2008). An EMS is a tool for managing the impacts of an
organisations activities on the environment which provides a structured approach to
planning and implementing environment protection measures(Chavan, 2005). ISO14001
is a widely-used EMS standard that provides a starting point for organizations looking to
institute good environmental management practices and by which, if effectively
implemented, may help the organization to continually improve environmentally and
economically (Searcy, Morali, & Karapetrovic, 2012).
Among the benefits of EMS are minimize environmental liabilities, maximize
the efficient use of resources, reduce waste, demonstrate a good corporate image, build
awareness of environmental concern among employees, gain a better understanding of
the environmental impacts of business activities and increase profit, improving
environmental performance, through more efficient operations(Chavan, 2005)
The EMS implementation Model is as described in the Figure 2, which includes
five (5) clauses:
Figure 2- 3: EMS Implementation Model

i. formulation and documentation of Environmental policy,
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ii. EMS Planning by assessing environmental aspects and impacts, and the
necessary control measures, as well the identification of relevant legal and other
requirements and its evaluation of compliance. Based on this information,
objectives, targets and environmental program shall be formulated.
iii. EMS Implementation and operation is to allocate resources available as per
the requirement in order to set-up an adequate EMS to the organizations
capacity and capability, as well setting the operational control, and internal and
external communication channels
iv. Checking and corrective action allows measurement of the performance
based on the objectives, targets and EMPs set as well the evaluation of
compliance performed.
v. Management review phase is to review the result of the four (4) clauses by the
top management, managers and key personnels and to obtain feedback in order
to proceed with continual improvement of environmental performances and
EMS.
All these clauses are linked in the ISO14001 model as illustrated in Figure 2 above as a
PDCA cycle.
The purpose of EMS is to drive an organization towards an improved EMS
performance in order to help companies to systematically identify and appropriately
manage their environmental obligations and risk. Beside ISO14001, various EMS
specific to the product types are available for adaptation e.g. ISO 14061 EMS for
Forestry organization and Eco-management Audit Scheme (EMAS).

2.5 Occupational Health and Safety Management System (OHSMS)
Global companies were facing safety risks. One of the worst industrial accidents
in the history is in Bhopal, India, where more than 40 tonnes of methyl isocyanides gas
leaked from a pesticide plant, which immediately kills 3, 800 people and causing
significant morbidity and premature death for thousands more. This disaster that
happened on 3
rd
December 1984, affected Union Carbides operation worldwide
(Edward Broughton, 2005). After 25 years, despite more than 500 000 registered victims
that have survived the tragedy, clinical studies have shown chronic illnesses in exposed
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groups. Also, survivors continue to experience higher incidence of reported healt h
problems(Mishra et al., 2009).This accident would have been one of the eye-opener for
the initiation of OHSMS standard.
OHSAS 18001, which was formulated by international certifying bodies with the
basis in BS 8800 and first published in 1999, can be described as a de facto standard and
is used as basis for certification of occupational health and safety management systems.
(Tine Herreborg, Mellado, & Remmen, 2004). A number of 104, 480 certificates of
OHSAS 18001 Occupational Health and Safety Management System Standard (EMS)
were released to 144 countries, of which 237 certificates were released to Malaysian
organization(OHSAS Project Group, 2012).
The OHSMS implementation Model is as described in the Figure 3, which also includes
five (5) clauses:
Figure 2- 4: OHSMS Model

i. formulation and documentation of OHS policy,
ii. OHSMS Planning by developing methodology, identifying and assessing the
hazard and determining the control methods as well the identification of
relevant legal and other requirements and its evaluation of compliance. Based
on this information, objectives, targets and OHS program shall be formulated.
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iii. OHSMS Implementation and operation is to allocate resources available as
per the requirement in order to set-up an adequate OHSMS to the
organizations capacity and capability, as well as setting operational control and
the internal and external communication channels.
iv. Checking and corrective action allows measurement of the performance
based on the objectives, targets and OHS programs set as well as the evaluation
of compliance performed.
v. Management review phase is to review the result of the four (4) phases by the
top management, managers and key personnels and to obtain feedback in order
to proceed with continual improvement OHS performance and OHSMS.

Among the benefits of OHSAS 18001 are improved company image, improved
productivity and working environment, Risk reduction on occupational safety and health
accidents and as a self- regulatory system in compliance with Occupational Safety and
health act.
Thus far, ISO have twice conducted ballot about whether to develop an ISO
standard in OHS field and both times the proposals was voted down(Tine Herreborg et
al., 2004). Communication regarding the development of OHSMS standard had been
initiated again by BSI in February 2013, and again, ISO seek out for a ballot vote by 11
June 2013. New Work Item Proposal(NWIP) had been circulated for the purpose of
seeking ISO International Experts opinions on the matter again (BSI & ISO, 2013).
NWIP had been accepted and ISO have formed Project Committee 283(PC283) to
proceed with the development of the standard and estimated to release the finalized
standard in 2016(BSI & ISO, 2013).

2.6 Energy Management System (EnMS)
Energy is embedded in any type of goods and is needed to produce any kind of service.
Currently, the worlds growing thirst for energy amounts to almost 96,000 meter
3
of
natural gas, 1,000 barrels of oil and 222 tonnes of coal a second(BP2009) (Setti &
Balzani, 2011). Furthermore, the increase in carbon dioxide concentration in the
atmosphere generated by the use of fossil fuels leads to an increase of the greenhouse
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effect that, in turn, causes climate change. This will impact food security, water
availability, fish production, and global forests, ocean acidification and permafrost
melting. Indeed, climate change caused by an increase of the CO
2
concentration in the
atmosphere might lead to devastating effects on humanity(Setti & Balzani, 2011).
United Nations Industrial Development Organization (UNIDO) recognized the
industrys need to enhance competitiveness while responding effectively to climate
change and to the proliferation of national energy management standards. Thus, in
March 2007, UNIDO hosted a meeting of experts from developing countries and
emerging economies, nations that had adopted or were developing national energy
management standards and representatives from the ISO Central Secretariat. That
meeting led to submission of a formal recommendation to the ISO Central Secretariat
to consider undertaking work on an international energy management standard
(McKane et al., 2010).
Among the MSS being discussed under this topic, ISO50001 is the latest,
launched in 2011. Certification to ISO50001 is showing significance as a number of 461
certificates for ISO50001 Energy Management System (EnMS) were released to 32
countries within the same year of launching. However, Malaysian organizations are yet
to obtain any certification to the EnMS standard (ISO Survey, 2012).
The EnMS implementation Model is as described in the Figure 4, which also includes
five (5) clauses:
i. formulation and documentation of EnMS policy,
ii. Energy Planning by developing methodology, conduct the energy review and
establish the baseline, energy performance indicators and determining the
control methods as well the identification of relevant legal and other
requirements and its evaluation of compliance. Based on the objectives,
targets and action plans necessary to deliver results in accordance with
opportunities to improve energy performance and the organization's energy
policy.
iii. EnMS Implementation and operation is to allocate resources available as per
the requirement in order to set-up an adequate EnMS to the organizations
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capacity and capability, as well as setting operational control and the internal
and external communication channels.
iv. Checking and corrective action allows monitoring and measurement of the
processes and the key characteristics of its operations that determine energy
performance against the energy policy and objectives and report the results.
v. Management review phase is to review the result of the four (4) phases by the
top management, managers and key personnels and to obtain feedback in order
to proceed with continual improvement of energy performance and the
EnMS.(Project Committee ISO/PC 242 Energy Management, 2011)

Figure 2- 5: EnMS Model


2.7 Integrated Management System (IMS)
In order to implement an IMS, the organization must be subscribing for a minimum of 2
MSSs. An integrated management system is a management system which integrates all
components of a business into one coherent system so as to enable the achievement of its
purpose and mission(Farahani & Chitsaz, 2010) . The joint implementation and
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registration of quality, environmental and occupational health and safety systems,
among others, has opened the door to IMSs, which organizations are adopting as they
find it more reasonable to integrate their MSs than manage them individually (Bernardo,
Casadesus, Karapetrovic, & Heras, 2009; Douglas & Glen, 2000; Karapetrovic &
Willborn, 1998; Zeng S X, Shi, & X, 2007). Organizations are having various
definitions on IMS. Among those that have been reported are as shown in Table 1.
Based on the articles and journals published in various libraries, integration of MS is a
fashion among current MS practitioners. Also, to be noted is that different combinations
of subsets are practiced in different organizations depending on the nature of activities,
product and services.
Table 2- 3: Main Reported Organizational Integration Definitions
Source Year Definition
Garvin 1991 [. . .] measure of the alignment or harmony in an organization
MacGregor
associates
1996 [. . .] a single top level management core standard with optional
modular supporting standards covering specific requirements
Karapetrovic and
Wilborn
1998 [. . .] interrelated processes set sharing human and financial
resources, information, materials and infrastructures aiming several
objectives focus on stakeholders satisfaction
Griffith 2000 [. . .] blend together quality, environmental and health and safety
procedures in order to demonstrate externally the company
commitment to deliver a product or service, improved environmental
performance and better health and safety management
Suditu 2007 [. . .] organizational structure, resources and procedures that support
the planning, monitoring, quality control, safety and environmental
activities of an organization
Source: (Paulo Sampaio; Pedro Saraiva; Pedro Domingues, 2012).

With these definitions, it can be summarized that IMS definition depends on extent of
practice of the integration of Management Systems in an organization.
Page 24 of 43

Figure 2- 6: Venn Diagram of IMS (M Asif, Brujin, & Fisscher, 2008)

The Figure 2-6 above depicts Venn diagram that showing integration of QMS, EMS and
OHSMS, the three common component of IMS (M Asif et al., 2008)

In present trends, the management systems are mushrooming and it is expected that the
new management system would keep appearing. Therefore, a true IMS would be one
that accommodates all existing management systems adapted by the organization and is
capable of incorporating prospective management systems as well. The illustration will
be as per the diagram shown in Figure 2-7 (M Asif et al., 2008).

Figure 2- 7: Generic IMS Illustration

Although ISO have not established any IMS standard, the need for it is arising as
more and more companies are obtaining multiple MSSs. The process of integration of
QMS
EMS OHSMS
QMS
EMS
OHSMS
Future
Management
systems
Sector
Specific
Standards

Generic
IMS

Convergence
of
individual
management
systems into
one
Page 25 of 43

MSs is not itself standardized, for instance, by an international standard that addresses
the best way to carry it out. There are, nevertheless, national guidelines by national
bodies namely, SAI Global, Dansk Standard, AENOR and BSI(Bernardo et al., 2010).
For example, British Standard Institution (BSI) introduced PAS 99, a Publicly Available
Specification (PAS) for organizations that already have a combination of formal
management system standards (such as ISO 9001, ISO 14001 and OHSAS 18001) to
create the framework for integrating these within a single system, including auditing
procedures, document control, risk management and performance improvement (BSI
Management System).
Also available as guide, a new ISO publication, namely a handbook on The
Integrated Use of MSSs (International Organization for Standardization, 2008b), which
provides related methodology supported by a variety of case studies (Casadesus et al.,
2011).

2.8 Methods of Integrating the Management Systems
Since MSS were not developed simultaneously ( e.g. ISO 9001 came in 1987, ISO
14001 in 1996 and OHSAS 18001 in 1999), and there is no way of knowing which
standards will appear in the future, they must be implemented one at a time
(Karapetrovic, 2003). The process of integration of MSs is not itself standardized, for
instance, by an international standard that addresses the best way to carry it
out(Bernardo et al., 2010). Therefore, the implementation order of the IMS shall be set
by the organization according to its culture and needs. The order may varies i.e. methods
for implementing IMS may be performed through either sequential implementation or
simultaneous implementation
a) Sequential implementation i.e. the individual MSS is implemented as a single
system. Then, it is integrated sequentially. For example, QMS is implemented,
followed by EMS, then OHSMS. Upon completion of the three (3) MSSs
implementation, review again the system to synergize and integrate them.
b) Simultaneous implementation i.e. integrates the MSs simultaneously from the
beginning. For example, when more than two (2) MSs need to be implemented
concurrently- such as subsets of QMS and EMS, EMS and OHSMS, QMS and
Page 26 of 43

OHSMS, QMS and EnMS, EnMS and EMS etc-, then, the MS shall be studied
and aligned to the organizations need prior to the implementation.(Jim
Roughton, 1993; Karapetrovic S, 2002; Mohammad, Osman, Yusuff, & Ismail,
2005, 2006)
2.9 Types of Management Systems Integration
The types of MSs integration describe the degree of integration that an organization
applies to its IMS (Muhammad Asif, Fisscher, Bruijn, & Pagell, 2010). There are 2 types
of MS integration proposed by (Jorgensen, Remmen, & Mellado, 2006; Karapetrovic,
2003; Mohammad, 2006a; Tine Herreborg et al., 2004). Those are:
a) Partial integration- This model consists in the integration of some common
procedures from the three or more management systems.
b) Total integration- This model goes beyond integration of common procedures
and involves integration based in risk-based approach, process approach and
continuous improvement.
2.10 Approaches for Integrating the Management Systems
The approaches of IMS have discussed in detail and summarized in the table below:
Proposed approach Researcher
The most cited sequence is the three (3) possible sequences based
on the integration of QMSs and EMSs. The options are to
establish:
the QMS first and the EMS second;
the EMS first and the QMS second; and
the QMS and EMS simultaneously.
(Karapetrovic &
Willborn, 1998)
Four possible sequences as a function of the MSs that have already
been applied in an organization and those that are required to be
implemented:
QMS first, followed by the others.
EMS first, then the others.
QMS and EMS simultaneously first, subsequently the
others.
Fundamental elements of the IMS first, any function-
specific subsystems after.
(Karapetrovic,
2002)
Organizations that have established a QMS before an EMS, a
possible strategy to integrate other MSs can be:
Integrate QMS and other MSs based on the process
approach of ISO 9001.
Integrate EMS and other MSs based on the PDCA model
(Karapetrovic &
Jonker, 2003)
Page 27 of 43

of ISO 14001.
Subsequently, join, align, and integrate these specific MSs
A strategy for implementing ISO 9001 and ISO 14001
concurrently, with the following three elements:
methodology;
competitiveness during implementation; and
change effect on personnel.
(Aboulnaga,
1998)
Step-by-step. A sequential implementation of individual
QMS, EMS, and OHSMS, and combining them into an
IMS.
Implementation of an IMS. Covering these three areas
(QMS-EMS-OHSMS) directly, a strategy applicable to
organizations with no implemented MSs.
(Labodova,
2004)
Three types of IMSs consisting of QMSs, EMSs, and OHSMSs,
namely:
Merged. In which EMS is combined with the existing
QMS.
Conversion. Based on an established QMS with added
EMS elements.
Engineered. In which QMS are integrated with EMS and
OHSMS, taking advantage of the related synergies.
(Griffith &
Bhutto, 2008)

These approaches were also analyzed in determining the matter of implementation order
(Bernardo et al., 2010). Singular sequential MS implementation methods are the most
recommended because of its simplicity. Besides, to engineer a MSS into the established
MS will save time and other resources. However, to get it right, the person that lead the
IMS implementation of the organization need to have a good understanding of the
MSSs, and the team will need to go through a comprehensive training session to develop
their understanding and competency on the MSSs.

2.11 Critical Success Factors of IMS Implementation
Based on the studies carried out, five most critical success factors for IMS
implementation have been identified(Mohammad et al., 2005; Mohammad, Osman,
Yusuff, & Ismail, 2007). These were identified based on a questionnaire survey carried
out during the research which were participated by 87 companies from Malaysia. Those
are:
a) management commitment and leadership,
Page 28 of 43

Role of top management in terms of commitment, communication, support,
resources and leadership is crucial and inevitable in the case of IMS. Top
managements responsibilities begin as IMS begin in the organization because it
is an on-going and eternal process which need strong support so that it can be
successfully implemented, completed and maintained(Zutshi & Sohal, 2005). As
part of the commitment and leadership, the top management must communicate
the policy and objective to all level of organization. Besides, Management
Representative and working committee (if necessary) shall be appointed. Their
roles, responsibilities and authorities shall be clearly defined, documented and
communicated(Technical Committee ISO/ TC176, 2008)
b) education and training,
Organizations have begun to realize that training is a tool not only for getting a
better job performance , but also for creating organization-wide adaptability
(Beckmerhagen, Berg, Karapetrovic, & Willborn, 2004)
c) continual improvement,
With an ongoing continual improvement to IMS framework, the use of IMS will
have enormous benefits in the way organizations are able to manage their
quality, environmental and OH&S responsibilities(Farahani & Chitsaz, 2010).
d) performance measurement,
With IMS, organization becomes a unified whole, with each function aligned
behind a single goal (Farahani & Chitsaz, 2010). Thus, when processes are
combined with a well defined model of strategic success, the measurement
system can enhance the strategic management process by challenging the
assumptions and the strategy itself (Bourne, Mills, Wilcox, Neely, & Platts,
2000).
e) systems and processes
Identify the gap in the intended systems and processes through a thorough gap
analysis activity. Based on the result, prepare appropriate documentations that
are compliant to the intended MSSs. Upon establishment of the formal
documentation, communicate to the relevant process owners and interested
Page 29 of 43

parties. Then, plan a periodic internal audit to gauge the system and process
performances.

2.12 Benefits of IMS Implementation
IMS is obviously a value-adding activity for any organization to adopt. It brings benefits
and fortune to any organizations. The benefits are in terms of operational and financial
and the fortune is terms of marketing and have been discussed widely and regularly
among the researches. The benefits may be split in to a few categories such as cost
saving, i.e cost saving by optimization of time and resources(Casadess M;
Karapetrovic S; Heras I, 2011; Jorgensen et al., 2006; Karapetrovic, 2003; Simon A;
Karapetrovic S; Casadess M, ; Zutshi & Amrik S Sohal, 2005); integrated audits(Zutshi
& Amrik S Sohal, 2005); cultural change i.e. integrated training and audits(Zutshi &
Amrik S Sohal, 2005), holistic view(Zutshi & Amrik S Sohal, 2005), better employee
morale(Simon A; Karapetrovic S; Casadess M, ; Wilkinson G; Dale B G, 1999);
enhanced reputation i.e. better organizational image(Simon A; Karapetrovic S; Casadess
M, ; Wilkinson G; Dale B G, 1999; Zutshi & Amrik S Sohal, 2005), improved
documentation i.e. minimization of documents and records, and reduction of
paperwork(Casadess M; Karapetrovic S; Heras I, 2011; Casadesus et al., 2011;
Jorgensen et al., 2006; Karapetrovic, 2003), and effective/ optimized operation i.e.
reduced reworks and scraps activities(Sampaio, Saraiva, & Domingues, 2012), reduction
of the environmental risk (optimization of raw material and energy consumption, which
also reduce residues from production)(Sampaio et al., 2012), the reduction of health and
safety risk(as processes are better understood the accidents probability decrease)
(Sampaio et al., 2012), less waste(Wilkinson G; Dale B G, 1999), lower energy
costs(Wilkinson G; Dale B G, 1999), operational benefits(Simon A; Karapetrovic S;
Casadess M), improved customer satisfaction (Simon A; Karapetrovic S; Casadess M),
better resources utilization (Zutshi & Amrik S Sohal, 2005), less
bureaucracy(Casadess M; Karapetrovic S; Heras I, 2011; Jorgensen et al., 2006;
Karapetrovic, 2003), effective strategic planning(Zutshi & Sohal, 2005) , enhanced
communication(Zutshi & Sohal, 2005) and simplification of internal and external audits
(Casadesus et al., 2011; Jorgensen et al., 2006; Karapetrovic, 2003).
Page 30 of 43


2.13 Barriers for Implementing IMS
The barriers though less discussed, is also important to be considered in implementing
IMS at any organization. Some of those discussed are lack of human resources(Simon
A; Karapetrovic S; Casadess M), lack of expertise and consultant(Zutshi & Sohal,
2005); lack of government support(Simon A; Karapetrovic S; Casadess M), continually
changing requirements and guidelines(Zutshi & Sohal, 2005), internal organizational
issues i.e. departmentalization of function(Simon A; Karapetrovic S; Casadess M), lack
of strategic planning(Zutshi & Sohal, 2005), lack of interest of individual concerns
within the involved people(Simon A; Karapetrovic S; Casadess M), resistance from
employees(Zutshi & Sohal, 2005), the need of fast reporting system(Zutshi & Sohal,
2005). These barriers are mainly addressing on resources provision which is vital and
could only made available by a committed top management, despite provision of system
that systematically designed to suit an organizations operation.
2.14 Conceptual Framework
The proposed framework will be as shown in Figure 2.8. A generic policy shall be
formulated by the management on all the four MSS proposed as to demonstrate
Management Commitment. Then, at Plan stage, an initial assessment shall be carried-out
individually. Based on the result, integrate the assessment methodology. Simultaneously,
evaluate the compliance to Legal and Other Requirement(LOR) by the organization in
line with the assessment methodology. This will provide overview of IMS and help to
identify the gap.
At the Do stage, proceed with necessary actions and integrate the documents adequately
and appropriately. This will include manual, procedures; work Instructions, Standard
Operating Procedures, Forms, LOR and others if any. Upon completion of the
documentation, IMS walkthrough shall be carried out using the documents established.
Training and communication will be essential at this stage, to develop the understanding
of the IMS established.
An Internal Audit shall then be planned, three to six months later, to review the
adequacy of the new system implementation. This escalates the organization to Check
stage. Findings shall be recorded and directed to the responsible parties. Corrective and
Page 31 of 43

Preventive Actions shall be imposed to improvise the condition and prefereably
eliminate the issues.
Upon completion, data shall be gathered to report to the top management on the
status of the IMS implementation in the organization through the Management Review
meeting. Resources, training and other necessary requirements shall be highlighted to
the management through this meeting. Continual improvement must be the goal of this
meeting. The meeting minutes shall be documented and communicated to all relevant
parties.
.Figure 2- 8 Framework of QEEnHSMS Integration



2.15 Conclusion
In this chapter, QMS, EMS and OHSMS are obviously an interest of every party. ISO
Survey 2012 result is obviously picturing the significance of MS certification. As
understood, the glocalization activities are the driver that has brought a strong emphasis
towards the IMS implementation. But, energy is embedded in any type of goods and is
needed to produce any kind of service(Setti & Balzani, 2011). Therefore, the component
of energy must be included as part of the IMS in order to control consumption and to
Page 32 of 43

optimize the usage. The gap in the literatures is showing that EnMS have not been
addressed in the integration. Thus, the below shown figure 6 will be the model to be
addressed through this research.
Figure 2- 9: QEEnHSMS Integration Model






QMS
EMS
OHSMS
EnMS
Page 33 of 43


CHAPTER 3
METHODOLOGY
3.1 Introduction
This chapter describes the methods and instruments used to complete this
research. The overall procedures in conducting this research are detailed Table 3.1. It
begins with the research objectives and scopes that have been identified and stated in
Chapter 1. This is followed by detailed literature reviews on IMS and its related
literatures published by various researches and academician worldwide and the
methodologies applied in obtaining the result and finally arriving to a conclusion.
The survey through a questionnaire is applied to obtain quantitative data. The
steps applied starts with review of the existing questionnaire, editing, re-validation of
instrument, and pilot study, conducting survey and finally analyzing the datas collected.
Then, the collected data are analyzed and drawn out with a framework on strategies of
implementing IMS by manufacturing companies in Malaysia. The framework drawn
from this data will be justified through the application of purposive sampling through
expert sampling opinion gathered.
Table 3.1:
Methods applied for data collection in relation to the objectives of the research
No Research Objectives Research Questions Data Collection
To assess the status of IMS
implementation in the Malaysian
manufacturing companies

What are the profiles of the
companies that have
implemented IMS?

Survey
What is the degree of IMS
practice among the companies
that have implemented IMS
Survey
Page 34 of 43

To investigate the strategies for
implementing IMS and its implementation
in the Malaysian manufacturing
companies

What are the strategies that
have been used by the
Malaysian manufacturing
companies in order to
implement IMS at their
companies?
Survey
How is the IMS strategies
implemented in Malaysian
manufacturing companies
Survey
To propose the strategies for
implementing IMS in the Malaysian
manufacturing companies

What should be the strategies
for implementing IMS in the
Malaysian manufacturing
companies
Purposive
sampling-
Expert opinion

3.2 Survey
A survey is a system for collecting information from or about people to describe,
compare, or explain their knowledge, attitudes and behavior which include setting
objectives for information collection, designing the study, preparing a reliable and valid
survey instrument, administering the survey, managing and analyzing the survey data,
and reporting the results(Fink, 2003).
Survey is applied in this research to obtain inputs on the research objectives
stated below:
i. To assess the status of IMS implementation in the Malaysian manufacturing
companies
ii. To investigate the strategies for implementing IMS and its implementation in
the Malaysian manufacturing companies
iii. To propose the strategies for implementing IMS in the Malaysian
manufacturing companies

3.2.1 Design of the Survey
The design of the survey for this research will be initiated with a descriptive design.
Descriptive design is used to explore the status of some phenomenon and to describe
what exists with respect to the individual, group or condition(Edmonds & Kennedy,
2013). To be specific, in this research, it will be through the circulation of the updated
questionnaire to the manufacturing companies that have been certified with more than
Page 35 of 43

one Management System Standards based on FMM Directory 2013 as well the personal
contacts of the researcher.

Figure 3. 1: Survey Design
The survey design is as described in Figure 3.1. The survey instrument being applied
in this research is a questionnaire. The detail information about the questionnaire will be
detailed in 3.2.2.
The sample chosen are manufacturing companies with certification of more than two
MSSs. The reason for selecting this sample is because:
i. FMM lists are a database of manufacturers that have registered with them as
members. So, it is beyond doubt that the companies selected are
manufacturer.
ii. For companies certified to ISO standards, there is no database is available for
companies applying IMS since the certificates issued are for individual
MSSs.
iii. Only when the companies have at least two MSS, then it can pursue for IMS.
Furthermore, the focus of this study is on QMS, EMS, OHSMS and EnMS.
Survey
Instrument
Prepare an updated questionnaire
Sample
manufacturing companies
have more than one MSS certified
based on FMM2013 Directory and the researcher's personal contacts
Target
Respondents
Management Representatives of the companies
Purposive-
Expert
sampling
Result of the analysed data from the questionnaire survey to be re-
validated through expert's opinion
Page 36 of 43

Thus, the sample company chosen must have minimum any of the MSS in
the group.
iv. Targeted respondents of this survey are the Management Representative
(MR) s. This selection is made because the MR is the champion of the MS of
the companies. In all the MSSs being discussed in this research topic, the
appointment of MR is compulsory as per the requirement of the International
Standards.
v. In Purposive sampling, the researcher selects individuals to participate based
on a specific need or purpose. The variations of purposive sampling include
snowball, expert and heterogeneity sampling.

3.2.2 Design of the Questionnaire
The questionnaire is a updated version of an existing questionnaire that had been
used in research previously(Mohammad, 2006b). The five step approach remained
unchanged, which consist of Section 1- Company Background, Section 2- IMS Practice,
Section 3- Strategies for Integrating the MSSs, Section 4- Reasons for Not Implementing
IMS and Section 5- Barriers Towards IMS. Some updates have been done to the
questionnaire.
In Section 1, a question added on the year of establishment of the company.
Then, the type of industry has been listed as per the European Accreditation (EA) codes.
Also, in the list of QMS, ISO13485 and AS9100 added since those are new active
standards in present trend. Two additional question rose were on EnMS implementation
and adaptation to uncertified standards by the companies. In Section 2 and 3, the update
is very minor. Section 2 added with more options on integration of MSSs. Whilst,
Section 3 added with more selections on sequence of integration. The section 4 and 5
remained unchanged.

3.2.3 Instrument Validity and Pilot Study
The questionnaire of this research is a validated questionnaire by previous
author. However, due to the update done, instrument validity is still carried-out. For
face validity purpose, the questionnaire was presented to two companies who are not
Page 37 of 43

certified to any MSSs and two companies who are certified with multiple management
system standards. All the parties are able to understand and answer the questionnaire.
Then, the content validities were done by presenting the questionnaire to academician
and practitioners who have knowledge on the subject matter. The content is accepted
and agreeable.
Subsequently, for pilot study purpose, the questionnaire was distributed to 50
respondents and still pending for reply.
3.2.4 Implementation of the Survey
The chronology of the survey conducted is as per the Figure 3.2 below:

Figure 3. 2: Chronology of the Survey

3.2.5 Data Analysis
Data gathered are to be analyzed using SPSS software
prepared a
database
of the
sample
companies
Prepared
official
cover letter
explaining
the purpose
of research
and non-
disclosure
of the
information
received
Using email of
protected soft-
copies and
online survey
to
communicate
with the
respondents.
Tracking of of
response
through the
email address
of the
respondents.
Compiled the
response for
data analysis
Page 38 of 43

3.3 Expert Sampling
The expert sampling is one of the purposive sampling techniques. It is a type of non-
probability sampling that is most effective when one needs to study a certain cultural
domain with knowledgeable experts within. Though choosing the purposive sample is
fundamental to the quality of data gathered, the reliability and competence of the
informant must be ensured. It is critical to be certain of the knowledge and skill of the
informant when doing purposive sampling, as inappropriate informants will render the
data meaningless and invalid (Godambe 1982). The researcher must also be alert for
possible biases on the part of the informant (Seidler 1974). (Tongco, 2007).
3.3.1 Design of the Expert Sampling Instrument

.
3.3.2 Implementation of Expert Sampling

.
3.3.3 Justification

..

3.4 Conclusion





Page 39 of 43


Page 40 of 43

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