Académique Documents
Professionnel Documents
Culture Documents
IJPPM
54,3 A case study of a quality system
implementation in a small
manufacturing firm
172
Nadia Bhuiyan and Nadeem Alam
Department of Mechanical and Industrial Engineering, Concordia University,
Received October 2003
Revised April 2004; Montreal, Canada
November 2004
Accepted December 2004
Abstract
Purpose – This paper aims to present the findings of a case study conducted at ABC Structures
(pseudonym), which is a small North American manufacturing company that has spent close to one
year working on implementing the ISO 9000 standard. The main obstacles faced by ABC during
implementation are highlighted. Although the company was not actually seeking registration, it was
motivated by an internal need to improve operations, and by a vision of expanding business globally,
in which case it expected that registration would be mandatory.
Design/methodology/approach – The case study method was used to achieve the objectives.
Information obtained from the case study was collected from various data sources including
interviews and informal conversations with the president, sales manager, engineering manager,
operations manager, purchasing manager, manufacturing manager and technical personnel,
attendance at project meetings, company documents, plant tours, and observations of the
manufacturing process and product samples. These sources provided information that was useful
in developing and implementing a quality system.
Findings – The case study conducted at ABC revealed a number of issues related to the
implementation of a quality management system in a small company. While studies have shown that
the ISO standard may not be applicable to small businesses, this study shows that the implementation
of the standard’s requirements benefited the company significantly. However, it should be noted that,
while the company did not invest in all of the costs associated with ISO registration, it did invest in
implementing as much as it could.
Practical implications – This study will be useful to quality managers, quality assurance and/or
quality control practitioners, as well as researchers seeking to further understand quality practices and
issues surrounding them. The study will also be beneficial to organizations that are planning to
implement ISO 9000, are in the implementation phase, or already practising or registered with ISO
9000. While some of the findings presented in this paper are not new, they confirm the results of prior
research on the organizational barriers that companies face in the process of implementing a quality
management system.
Originality/value – The paper provides a description of steps taken by a small manufacturing
company prior to implementing ISO 9000. It shows the hurdles it faced, and proposes how they could
be overcome.
Keywords Quality management, International standards, Quality standards
Paper type Research paper
Case study
Many companies avoid ISO implementation for fear of facing major organizational
roadblocks in the registration process. The case study presented in this paper
documents the experience of implementing a quality system in preparation for ISO
9000 registration in a small manufacturing company. Over a nine-month period, the
goal of the study was to focus efforts on changing procedures and implementing
standards of quality that would not only be beneficial for the company internally, but
would also prepare them for the future ISO registration process. Through this study,
the challenges and organizational barriers faced during implementation are
highlighted, and the results are compared to an empirical study that studied the
issues surrounding ISO implementation in Canadian companies.
About the company Quality system
ABC Structures (pseudonym) is a small-sized Canadian manufacturing company implementation
established in 1996. ABC designs and manufactures aquatic structures for recreational
purposes, mainly for use in outdoor playgrounds. The company’s primary market is in
North America, although it also serves markets in Europe. The company is privately
owned, employing about 40 employees, and has been growing steadily, gaining a
reputation among its major customers by delivering its products on time while offering 175
high quality at competitive prices. ABC offers a variety of products related to aquatic
recreation. Their products use equipment such as water cannons and ground sprays to
provide spray effects and to create an interactive, automated playground. All products
are made up of a controller, a physical structure, a distribution system, water
treatment, and filtration systems. The majority of the parts are manufactured from
stainless steel, while a selected few are made of fiberglass.
ABC has numerous products of varying types, each with different processing
requirements. Their process flow varies between the receipt of raw materials to the
delivery of the final product to customer. Raw materials such as steel pipes and
components (assembly accessories) are received at the receiving dock, and go through
an inspection process. If they are unacceptable, a nonconformance report is generated.
Raw materials that pass inspection are stored in a designated area until they are ready
for the next operation, which is metal preparation. This step includes cutting and
drilling, where the metal is prepared in the required dimensions and shape before
welding.
Once the metal is cleaned and prepared, it is welded using two techniques:
(1) gas metal arc welding (GMAW); and
(2) gas tungsten arc welding (GTAW).
This step is the most important and crucial operation at ABC because it requires
trained personnel, special equipment, the right materials, the proper methodology and
the proper work environment. In some cases, ABC sends its raw materials to
subcontractors for welding due to the pressure of fulfilling order requirements. After
the joining process, an air-test is carried out for both internal and subcontracted
products to check for weld-leakage, a critical defect. Visual inspection is also performed
to check the weld quality. Welded products are stored in a designated area after
passing through inspection and testing. These products are then shipped to the
painting subcontractor, and once the painted structures are returned, they go through
inspection and are crated and assembled in the next operation, where product
accessories are pulled out from inventories to build the final product. Finally, the
product is shipped to the customer after a last check of the product. Water treatment is
also a part of the ABC business process – it is not mentioned in the process flow
because it is required for a few products only. It involves a test of water flow through
automation and can be incorporated after welding in a generic process flow.
Data collection
Information obtained from the case study was collected from various data sources
including interviews and informal conversations with the president, sales manager,
engineering manager, operations manager, purchasing manager, manufacturing
manager and technical personnel, attendance at project meetings, company documents,
plant tours, and observations of the manufacturing process and product samples.
These sources provided information that was useful in developing and implementing a
quality system.
Gap analysis
The implementation began with a gap analysis to determine the discrepancies between
ABC procedures and the ISO 9000 framework. The analysis revealed that several areas
in the company needed to be considered, including:
.
engineering;
.
manufacturing;
.
sales and marketing;
.
purchasing;
.
inventory control; and
.
customer service.
Management was aware of some of the gaps that existed, such as handling of customer
complaints, but they were surprised at finding certain gaps related to shopfloor
activities, including a safe work environment, maintenance of the machines and tools, Quality system
and investing time in rework and inspection activities. A meeting was then set up with implementation
the president and the director of operations to discuss how to initiate filling in the gaps
and how the project would be developed and executed.
Management representative
A management representative (MR) was designated to lead the change. The key
responsibilities of the MR included:
.
ensuring the establishment, implementation and maintenance of the quality
system commensurate to the standard;
.
reporting the performance of the quality management system by presenting and
sharing results to top management and all team members as a basis for
improvement;
.
liaising with external parties such as vendors, customers and calibration
agencies on matters regarding quality system issues; and
.
ensuring awareness of customer requirements throughout the organization.
The responsibilities of the MR were given to the operations manager once the quality
system was in place. The responsibilities and authorities of the MR were made clear to
top management, and signed in a formal document by the president to provide
objective evidence for one of the mandatory requirements of the system.
Internal audit
Finally, at the end of the project, an internal audit was conducted to determine the gaps
remaining and submitted to top management for review in the next QC meeting. Most
of the elements required were documented and implemented, although some needed to
be done more effectively (process control, control of inspection, measuring and test
equipment, quality records and internal quality audits). At the time of the study, the
workers did follow the procedures but not very strictly, an indication that there was no
rush to do so. Understandably, their motivation was different from that of a typical
company working on registration.
Quality system implementation issues Quality system
During implementation, ABC faced various challenges that needed to be addressed to implementation
comply with the ISO requirements. The main challenges are discussed below.
Preventive maintenance
ABC does not have a set procedure for preventive maintenance of their machines. Some
of the workers perform maintenance checks, but not routinely. The company has
welding, cutting, and drilling machines that should be maintained with a regular
frequency. Establishing preventive maintenance for the machines had been planned
after a discussion with the manufacturing manager. Machine manuals were controlled
and the items specified for the maintenance had been considered to initiate routine
maintenance, which was the responsibility of operators. However, there were no
employees who could perform and implement a weekly and monthly maintenance plan.
Rework
Rework of parts is a time-consuming, non-value added activity, but ABC has no
account of how much time is spent on rework. As a result of the implementation
process, the manufacturing manager began to monitor rework activities through the
development of a nonconformance-tracking system throughout the company. A
nonconformance report (NCR) contains various sections such as problem identification,
root cause, corrective action, preventive measure, and verification of the action taken
for the nonconformance. For the quantitative analysis of NCR, a report is generated at
the end of month to figure out which NCRs have been closed and which have not. This
resulted in the improvement of reducing and tracking internal and external problems.
Inspection
At ABC, inspection is done at various stages in the process, but there is no supervision
of inspection activities. A bigger problem is that there is no independent quality
function, and as such, inspections are carried out by various people in the company,
depending on what needs inspection and when. The purchasing manager is
responsible for inspecting items that are received from suppliers, the manufacturing
manager supervises in-process or online inspection, the engineering manager controls
inspection for the water treatment and automation area, and final inspection of finished
goods is monitored by the assembly supervisor. This demonstrated the need to have an
independent quality function, but management was not serious enough to establish an
effective quality department at the time of the study. In the future, they will consider
this, depending on business growth and available resources.
Safety Quality system
Safety is an important issue and should be given top priority, especially for implementation
manufacturing companies where heavy machinery or dangerous tools are used. At
ABC, there were no safety procedures or a safety audit plan in place. Employees who
work on the shop floor were not restricted to follow typical safety precautions such as
wearing safety boots, goggles, gloves for handling products, ear plugs, etc. Anyone,
including visitors, could go into the plant without these protective items. To conform to 181
the ISO standard, safety procedures were put into place and every employee must now
follow the safety rules described in the procedures. An audit plan for safety, to be
conducted by trained personnel, is also included in the procedures. Now, nobody is
allowed to visit the shop floor area without following the safety precautions.
Customer complaints
ABC has a formal review board that meets once a month to examine returns and
complaints from the receiving and marketing departments respectively. The board
comprises the Purchasing Manager, the Director of Sales/Marketing, and the Floor
Supervisor. Depending on the type of problem they are examining, appropriate action
is taken. The approach of the board has been of a quick-fix type, with very little
supervision by the senior management. Handling of customer complaints is an
important clause in the ISO 9000 system, because responding to the customer
positively can rebuild customer relations and help maintain business. Therefore, a
procedure for handling customer complaints better was designed, and importantly, the
customer’s input was included. The procedure was modified and a potential/existing
customer satisfaction survey was also started. A weekly report is now submitted to the
president.
Overcoming the challenges outlined above forced ABC to improve its operations.
Whether or not the company opts for registration in the future, it has already benefited
from major improvements through the quality system implementation initiative.
Quality perception
Understanding the quality system, the implementation requirements and the benefits
was crucial to make the system effective at the grass-roots level. From the start, many
employees misunderstood the perception of the quality effort. A number of key people
considered the effort to be useless, believing that the status quo was good enough as
the quality of their products was considered best on the market. Furthermore, the
IJPPM assembly supervisor believed that tracking defects at the inspection stage meant that
54,3 the company had good internal quality. As a result, not everyone seriously committed
to making the changes needed to successfully implement a quality system.
Resistance to change
Employee resistance to change was found in the organization. Manufacturing
personnel believed that they would be overburdened with work and thus did their best
to defeat the improvement scheme. While some managers were supportive in
explaining the importance of the initiative, it was ineffective in assisting in
implementation. This resistance was due in part to the lack of top management
commitment, and also due to the lack of training and understanding of how the quality
system would benefit the organization. People will accept or reject change depending
on how the change will affect them. A strategy that convinces employees is needed to
overcome this hurdle through emphasis on teamwork, brainstorming sessions, and
consistent meetings. Employees’ participation and cooperation in the improvement
programs must be recognized and encouraged for effective implementation of the
improvement program.
Lack of resources Quality system
While many employees were not committed to the quality effort, a newly appointed implementation
manufacturing manager was eager to implement the system. However, due to a lack of
resources, he could not develop the preventive maintenance procedure for the
company.
At the time of the study, ABC did not have a resource committed solely to quality. It
was believed that the company needed a full-time quality manager to supervise 183
activities related to quality throughout the organization, and to assign inspectors for
reporting problems related to the inspections. This quality manager would also play
the role of the management representative. In this way, quality would be expected to be
free from bias, which could occur if the production head supervised quality-related
issues. Since an MR is a mandatory requirement of the ISO 9000 system, it would
beneficial to have one in the event of future registration. Unfortunately, at the time of
the study, due to budget constraints, a full-time MR was not appointed.
Lack of training
ABC’s management was not convinced that allocating funds for training at all levels
was necessary – only selected persons who were expected never to leave the
organization were trained. As a result, only a few people understood the system, and if
they were to leave the organization, they would take the knowledge of the system with
them. Sadgrove (1994) pointed out the importance of training, since quality depends on
employees. This lack of training was translated into the resistance to change discussed
previously.
Discussion
The case study presented in this paper demonstrates major issues that were raised
during the implementation of an ISO 9000 management system in a small
manufacturing company. An empirical study conducted by Bhuiyan and Alam
(2004) on Canadian firms investigates implementation issues related to the emergence
of the latest version of the ISO 9000 quality standard, ISO 9001:2000. Results of the
empirical study show that whatever the impetus for seeking registration, Canadian
companies generally faced the same degree of difficulty in implementation. The case
study was therefore compared to the empirical study.
The dominating reason for implementing ISO 9000 at ABC was internal, and the
intention was to put a formal quality system in place on the basis of availability of
resources. During implementation, human resources were busy executing other
organizational tasks, such as enterprise resource planning. Also, delivering
manufactured products on time with limited resources was the priority at the time
of the study, which made implementation of the quality system difficult. Results of the
empirical study show that most Canadian organizations seek registration to meet
customer demand/expectations. However, a large percentage of Canadian companies
also implement ISO 9000 in order to improve quality management practices – an
internally motivated reason for seeking registration, similar to ABC.
Budget allocation, time devotion, and scarcity of resources have created obstacles in
the smooth implementation of ISO 9000 at ABC. The empirical study showed that
scarcity of resources was found to be the biggest hurdle for organizations. Other
IJPPM barriers such as lack of training, employee resistance, and top management
54,3 commitment, were also found in respondent companies, similar to ABC.
The empirical study shows that companies that are rich in resources face a lesser
degree of difficulty as compared to small companies that have between one and 100
employees. This finding proved to be true with ABC, a small-sized company that had
40 employees at the time of study. The unavailability of required resources was found
184 to be the biggest hurdle during implementation. Most employees were over-burdened
to fulfil their tasks. This is a typical problem that occurs in small companies.
References
Bhuiyan, N. and Alam, N. (2004), “ISO 9001:2000 implementation: the North American
experience”, International Journal of Productivity and Performance Management, Vol. 53
No. 1, pp. 10-17.
Boys, K., Karapetrovic, S. and Wilcock, A. (2004), “Is ISO 9000 a path to business excellence?”,
International Journal of Quality & Reliability Management, Vol. 21 No. 8, pp. 841-60.
Calingo, L., Ma, R., Mei, A., Ping, C.M. and Mohamed, H. (1995), “Achieving total quality
management through ISO 9000 certification: a research note”, Accountancy and Business
Review, pp. 173-86.
Carlsson, M. and Carlsson, D. (1996), “Experiences of implementing ISO 9000 in Swedish
industry”, International Journal of Quality & Reliability Management, Vol. 13 No. 7,
pp. 36-47.
Chin, K.W., Poon, G.K.K. and Pun, K.-F. (2000), “The critical maintenance issues of the ISO 9000
system: Hong Kong manufacturing industries’ perspective”, Work Study, Vol. 49 No. 3,
pp. 89-96.
Fuentes, C., Benavent, F., Moreno, M.A.E., Cruz, T.G. and Pardo del Val, M. (2000), “Analysis of
the implementation of ISO 9000 quality assurance systems”, Work Study, Vol. 49 No. 6,
pp. 229-41.
Kim, Y. (1994), “ISO – making companies competitive”, Quality in Manufacturing,
November-December, p. 26.
Laframboise, K. (2003), “An empirical study of the relationship between quality practices and
business performance excellence in Central Canada”, doctoral thesis, Department of
Administration, John Molson School of Business, Concordia University, Montreal.
Lipovatz, D., Stenos, F. and Vaka, A. (1999), “Implementation of ISO 9000 quality systems in
Greek enterprises”, International Journal of Quality & Reliability Management, Vol. 16
No. 6, pp. 534-51.
IJPPM McAdam, R. and McKeown, M. (1999), “Life after ISO 9000: an analysis of the impact of ISO 9000
and total quality management on small businesses in Northern Ireland”, Total Quality
54,3 Management, Vol. 10 No. 2, pp. 229-41.
McDonald, M., Mors, T. and Phillips, A. (2003), “Management system integration: can it be
done?”, Quality Progress, Vol. 36 No. 10, pp. 67-74.
Perez, E. (1993), “Model for the design and implementation of reliable and cost-effective ISO 9000
186 quality control system”, Master’s thesis, Department of Mechanical Engineering,
Concordia University, Montreal.
Quazi, H.A. and Padibjo, S. (1998), “A journey toward total quality management through ISO
9000 certification – a Singapore experience”, International Journal of Quality & Reliability
Management, Vol. 9 No. 5, pp. 489-508.
Sadgrove, K. (1994), ISO 9000/BS 5750 Made Easy: A Practical Guide to Quality, Kogan Page,
London.
Salegna, G. and Fazel, F. (2000), “Obstacles to implementing quality”, Quality Progress, Vol. 33
No. 7, pp. 53-7.
Samson, D. and Challis, D. (2002), “Patterns of business excellence”, Measuring Business
Excellence, Vol. 6 No. 2, pp. 15-21.
Santos, L. and Escanciano, C. (2002), “Benefits of ISO 9000:1994 system”, International Journal of
Quality & Reliability Management, Vol. 19 No. 3, pp. 321-44.
West, J.E., Haworth, G., Arter, D.R., Harvey, K., Naish, P. and Green, J.W. (2002), “Should you
transition to ISO 9001:2000?”, Quality Progress, Vol. 35 No. 9, pp. 58-64.
Yahya, S. and Goh, W. (2001), “Implementation of an ISO 9000 quality system”, International
Journal of Quality & Reliability Management, Vol. 18 No. 9, pp. 941-66.
Further reading
Graves, S. (2000), “Why do we need international standards?”, Quality Progress, Vol. 33 No. 6,
pp. 138-9.