Achieving Competitiveness

Global Management Systems

Indian Oil

through

Course Outline

Basic Concepts in Quality, Environmental, Occupational Health & Safety Management

Integration of the three systems

The 8 Principles of Quality management Requirements of the ISO-/OHSAS standards Auditing for QMS, EMS and OHSAS Principles of Auditing

Auditing Process
Conducting Internal Audits Reporting and Pitfalls

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Your Expectations?

What is a successful Audit?

Critical Success Factors

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Management Systems Basic Assumptions

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The ISO Approach : Global Objectives

Say What You Do

Do What You Say Prove it !
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The Global Certification Systems

ISO-9001:2000 Quality Management ISO-14001:1996 Environmental Mgmt. OHSAS-18001:1999 Occupational Health & Safety
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Integrated Management
EMS
QMS Machines
Man

Material Material

OHSAS

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Quality, Environment, Safety : the connection?

Quality Unwanted outcomes Affected parties Direct financial impacts Indirect financial impacts Product failures, dissatisfied customers Customers Environment Environmental pollution, excessive use of resources Neighbours, society, regulatory authorities, customers Fines, clean-up costs, high costs of energy and raw materials Lost production, equipment and process redesign, equipment replacement ISO 14001 Safety Accidents, injuries, industrial illness Employees, contractors, visitors, the public Fines, compensation

Lost production, increased inspection Lost business

Lost production, equipment and process redesign, equipment replacement OHSAS 18001

System Standards

ISO 9001

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The global trend in Certification

Certificates Issued Globally by Dec 01 ISO 9000

ISO 14000

% Growth
Over last yr

5,10,616
36,765

25%
60%

(Source: 11th Cycle of survey by ISO)

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Global Growth
ISO 9000 Certificates

ISO 14000 Certificates

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Evolution of System Standards

1. 2. 3.

4. 5.

1987: ISO-9000 Standards ISO-9000 was revised in 1994 Environmental Management Systems: 14001 created in 1996 December 2000 : Whole series updated OHSAS-18001 was created on same line with ISO-14001.

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Quality Management Basic Concepts

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What is Quality?

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QUALITY DEFINITION
DEMING Removal Of Variation CROSBY Conformance To Specification

JURAN
Fitness to Use

TAGUCHI Minimum Loss To Society ISO (Earlier version) Totality Of Characteristics Of An Entity That
Bear On Its Ability To Satisfy Stated And Implied Needs

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Quality : ISO 9000 Definition Quality Degree to Which a Set of Inherent Characteristics Fulfils Requirements
Characteristic: A distinguishing feature Requirement: need or expectation that is stated, generally implied or mandatory
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Evolution of Quality Management

Country craftsman Factory system (industrial revolution) TAYLORIAN system (scientific management) Inspection based quality

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Exercise Text
The necessity of the fatherly handling of farm livestock is the foremost focus in the minds of farm owners. Since often the forefathers of the farm owners trained the farm hands for first class farms in the fatherly handling of fine farm livestock, the farm owners feel they should fully carry on with the family tradition of training farm hands of first class farms in the fatherly handling of farm livestock because they believe as if it is by far the basis of good fundamental farm management.
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Main Objective of IMS

PREVENTION rather than DETECTION

&

CONTINUAL IMPROVEMENT

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Evolution of TQM
COUNTRY CRAFTSMAN
FACTORY SYSTEM (INDUSTRIAL REVOLUTION) TAYLORIAN SYSTEM (SCIENTIFIC MANAGEMENT) INSPECTION BASED QUALITY QC APPROACH PROCESS CONTROL/COMPLIANCE (QA APPROACH) TOTAL QUALITY MANAGEMENT
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Principles of Quality Management

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Universal Principles of Quality Management

Quality Management Principles

1. Customer focus 2. Leadership 3. Involvement of people 4. Process approach 5. System approach 6. Continuous improvement 7. Factual approach to decision making 8. Mutually beneficial supplier relationship

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1. Customer Focus

Organizations should meet customer requirements and strive to exceed customer expectations .
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Customer Satisfaction

Customers perception of the degree to which the Customers requirements have been fulfilled
1. Absence of customer complaint does not
mean satisfaction 2. Fulfillment of agreed requirement doesnt mean high customer satisfaction
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2. Leadership

Leader establishes unity of purpose and direction of the organization Leader should create and maintain the internal environment in which people can become fully involved in achieving the organization's objectives.

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3. Involvement of people

People at all levels are the essence of an organization and their full involvement enables their abilities to be used for the organizations benefit.

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4. Process orientation

A desired result is achieved more efficiently when related resources and activities are managed as a process.

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Process Approach

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5. System approach

A system comprises of many Processes, having inter-relationships. A system comprises interacting elements to achieve common goals. System approach is essential to manage the processes in the system. It improves effectiveness and efficiency of the organization
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5. System approach consists of 1. 2. 3. 4. 5. 6. Clear objectives Organizational structure with well defined authority and responsibility. Planning for Quality Control of functions affecting quality. Coordination of interrelated processes. Audit mechanism for self regulated organization.
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6. Continuous Improvement

Continuous improvement should be a permanent objective of the organization.

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PDCA cycle
The PDCA cycle is also known as the Deming cycle

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7. Factual approach to decision making

Effective decisions are based on the analysis of data and information .

Performance

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8. Mutually beneficial supplier relationships.

An organization and its suppliers are interdependent A mutually beneficial SupplierCustomer relationship enhances the ability of both to create value

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Basics Assumptions in ISO 9000

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The ISO Approach to Quality Management

ISO-9000 provides Quality Assurance

Assurance to:
Customer

Management
Employees

Society
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What is ISO?

International Organization for Standardisation, established since 1947 HQ : Geneva Issued over 13000 Product Standards Member Countries : 140 Purpose: remove technical barriers to trade"

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ISO Systems standards

1. 2. First time 1987: ISO-9000 Standards were created for Systems rather than Products ISO-9000 was revised in 1994 Environmental Management Systems: 14001 created in 1996 OHSAS-18001 was created in 1999 A number of supporting documents/guidelines and standards are now created December 2000 : Whole 9000 series updated Indian Oil

3. 4.
4. 5.

Some Misconceptions about ISO

ISO 9000 is not ISO 9000

Its rather a family

ISO 9000: ISO 9001: ISO 9004: Fundamentals and Vocabulary QMS Requirements (Certifiable) Guidelines for Performance Improvement
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ISO 9000 Basic Premises

System Standard, not Product Standard There is nothing like ISO Certification No ISO-9000 certification Exists For any organization/system Any Product category: Hardware, Software, Services, Process Material Addresses the interests of Customers primarily but helps other interested parties as well

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ISO 9000 Family ISO-9000 IS0-9001 ISO-9004 IS0-19011

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Major Standards
ISO 9000:2000, Quality management systems - Fundamentals and vocabulary Establishes a starting point for understanding the standards and defines the fundamental terms and definitions used in the ISO 9000 family needed to avoid misunderstandings in their use.
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Major Standards
ISO 9001:2000 Quality management systems - Requirements This is the requirement standard used to assess your ability to meet customer and applicable regulatory requirements and thereby address customer satisfaction. It is now the only standard in the ISO 9000 family against which third-party certification can be carried. .
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Major Standards
ISO 9004:2000 Quality management systems Guidelines for performance improvements

This guideline standard provides guidance for continual improvement of your quality management system to benefit all parties through sustained customer satisfaction.
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Relationship with ISO-9004

Consistent pair approach ISO-9001 is requirement ISO-9004:

To move beyond the requirement Continual improvement Not for certification

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Major Standards
ISO 19011 Guidelines on Quality and/or Environmental Management Systems Auditing Provides you with guidelines for verifying the system's ability to achieve defined quality objectives. You can use this standard internally or for auditing your suppliers. .
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How to Read the Standards

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The Expressions

Shall To express a provision that is binding between two or more parties Will To express a declaration of purpose of intent by one party Should To express a recommendation among other possibilities May To indicate a course of action permissible within the limits of the system Note Information for guidance and clarity Indian Oil