BUREAU VERITAS

"Best Practices Workshop of Distribution Heads" being organized at the initiative of Ministry of Power on
AT 27th January 2004

For the benefit of business and people

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1 > INTRODUCTION TO BUREAU

SUMMARY

VERITAS & BVQI

2 > OVERVIEW OF ISO

9001:2000

3 > BENEFITS OF
CERTIFICATION

4 > IMPLEMENTATION OF ISO 9001:

2000

5 > CONCLUSION

1 > INTRODUCTION
TO BUREAU VERITAS

INTRODUCTION TO BUREAU VERITAS

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INTRODUCTION TO BUREAU VERITAS--OUR MISSION

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" Deliver economic value (increased performance,

reduced risk) to our clients through effective quality, health and safety, and environment management of their assets, projects, products and systems.

INTRODUCTION TO BUREAU VERITAS-- OUR CORE VALUES

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CORPORATE GOVERNANCE

" Integrity " Independence " Impartiality " Respect for others

INTRODUCTION TO BUREAU VERITAS--HISTORICAL HIGHLIGHTS

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CORPORATE GOVERNANCE
E BUSINESS

CONSUMER GOODS

CERTIFICATION

INTERNATIONAL TRADE

BUILDING

AERONAUTICS

INDUSTRY MARINE

1828

1910

1922 1929

1984 1988

1998 2000

INTRODUCTION TO BUREAU VERITAS--THREE AREAS OF EXPERTISE

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OUR BUSINESS

" Conformity and Certification

From design review to testing, inspection and
analysis. Issue of certificates, marks, labels and reports An undisputed world leader

" Consultancy and Training

Quality, Health, Safety, Environment.
Reference standards and performance indicators High level of technicality and quality

" Outsourcing
Total or partial management of customers QHSE
functions The reliability of a true long- term partner

INTRODUCTION TO BUREAU VERITAS

GLOBAL LEADER WITH LOCAL APPROACH

BVQI operates from dedicated offices located in 45 countries

INTRODUCTION TO BUREAU VERITAS

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Accreditation bodies Accreditation ISO/IEC Guide 62 EN 45012

Product Certification bodies Certification ISO 9001 etc. Organisations

ACCREDIATIONS BVQI HAVE OVER 27 ACCREDIATIONS

CREDIBILITY !

BVQI CREDENTIALS
      INTERNATIONAL NETWORK GLOBAL SERVICE LOCAL EXPERT KNOWLEDGE ACCREDITATION CREDIBILITY HIGHLY QUALIFIED AUDITORS EXPERIENCE IN ALL SEGMENTS OF THE INDUSTRIES

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For the benefit of business and people

SOME OF OUR CLIENTS. India

ABB ALCATEL ALSTOM AMERICAN DRY FRUITS ARVIND GROUP BAJAJ AUTO BAX GLOBAL BEML BHEL BPCL BOMBAY DYEING CROMPTON GREAVES DHL EICHER TRACTORS GREAVES HEWLETT PACKARD HAL HINDUSTAN LEVER LTD. HUTCHISON MAX ICI INDAL INFOSYS KIRLOSKAR GROUP LARSEN & TOUBRO LUCAS TVS MAFATLAL GROUP NIIT NOCIL PHILIPS GROUP RELIANCE GROUP SHAW WALLACE SUNDARAM GROUP TATA TEA TIMESOF INDIA TELCO VIP WIPRO GROUP

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For the benefit of business and people

BVQIs services
" Social
Accountability
ISO 9000 QS-9000 AS 9000 ISO/TS 16949 TRAINING

" Quality Assurance

SA8000
Codes of Conduct

" OH&S
Safety Cert BS8800

" Environment
ISO 14001 EMAS

" Food
HACCP

"Integrated Systems

BVQI
First clas service World class recognition
15 For the benefit of business and people

2 > OVERVIEW OF
ISO 9001:2000

Overview Of ISO 9001 : 2000

Consolidation of ISO 9000 family - Current 20 standards to be replaced by four:

" ISO 9000: Quality management systems- Fundamentals

& vocabulary

" ISO 9001: Quality management systems - Requirements " ISO 9004: Quality management systems - Guidance for
performance improvement

" *ISO 19011: Guidelines for auditing quality &

environmental management systems To be supported by technical reports

ISO 9001 : 2000

Some basics

"

Applicability : Universal Aim : Enhancing customer satisfaction Scope : As per the requirements of the organization

ISO 9001:2000

01 General " Strategic decision - adoption of QMS " QMS design & implementation is organisation
specific

" Standard can be used by internal & external parties

to assess the ability to meet customer, regulatory and organisations own requirements

" QMS requirements are complementary to technical

requirements for product

ISO 9001:2000 :

The Process Approach . Process approach to quality

management encouraged

Introduces & explains the process model as conceptual presentation of QMS requirements specified

Processes

Controls
(e.g.procedure)

Input

Process Activities + Resources

Output

Processes - understand interactions

Process A Process B

Process C Process D

Input Output Controls

The QMS Model

Quality Management System Continual Improvement Management responsibility

C U S T O M E R

R e q u i r e m e n t s

Resource management

Measurement, analysis, improvement

S a t i s f a c t i o n

Input

Product realisation

C U S T O M E R

Product Output

Process and System Approach

" Identify and manage processes " Determine the sequence and interaction of processes " Determine the criteria and methods to ensure effective
operation of the processes

" Measure, monitor, analyse the processes and

implement actions necessary to achieve planned results and continual improvement

" Ensure availability of information necessary to operate

processes (ISO 9001:2000 clause 4.1)

The Demming Cycle

Plan

Correct

Do

Verify

The recognition process

" Understanding the standard
requirements

" Establishment of a quality management

system

" Certification " Accrual of benefits

ISO 9001:2000

" The requirements :

Quality Management System Management Responsibility Resources Management Product Realization Measurement, Analysis & Improvement

ISO 9001:2000

"Clauses 0 - 3
Introduction Scope Normative references Terms and definitions

ISO 9001:2000

"Clause 4
QMS requirements
Process approach Documentation requirements

ISO 9001:2000

"Clause 5
Management responsibility
Commitment, Customer focus Policy, Objectives, Planning, Communication

ISO 9001:2000

"Clause 6
Resource Management
Human resources Infrastructure Work Environment

ISO 9001:2000

"Clause 7
Product Realization
Planning Marketing, selling, design, production, purchase

ISO 9001:2000

"Clause 8
Measurement, Analysis & Improvement
Measure, Analyse and improve

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ISO is only documentation ISO is expensive ISO is for the auditor ISO is the responsibility of MR

Myths

ISO will drastically improve results immediately ISO is TQM

3 > BENEFITS OF
CERTIFICATION

Benefits of certification

"Commercial "Non-commercial

Benefits of certification

" Enhanced customer satisfaction and

loyalty

" Reduced quality costs " Increased competitiveness " Improved internal transfer of know how " Improved morale and motivation of staff

Benefits : Commercial

" Competitiveness " Customer confidence " Exports " Governmental recognition

Benefits : Non-commercial

" Quality, an essential requirement today " Continual improvement, another necessity " Effect on costs
Higher quality costs less Quality has one of the highest ROI Almost the entire standard is preventative in
nature !

1 " Opportunity to integrate systems " Inspiring confidence to the management and
people of the organization

Benefits : Non commercial

" " " " " " " "

Transparency Identification of non conformities Reduced errors Internal quality audits Prestige Improved morale of staff Improvements becoming a way of life A stepping stone to TQM

1 " Generic " Goes beyond quality assurance to include

customer satisfaction

To Summarise

" Based on 8 quality management principles " Process approach " Allows tailoring to business but does not loose
sight of customer focus

" Low on documentation and high on

effectiveness (performance)

" Focuses on continual improvements through:

Quality objectives Corrective and Preventive actions

Benefits of certification

Certification of quality system to ISO 9001 as a bonus:

" Tangible proof that the companys quality system complies with certification Benefits of internationally
recognised standard.

" Avoidance of multiple second party audits.

Certificate

" Marketing edge.

ISO 9001

Benefits of certification
An opportunity to eliminate any excessive documentation requirements

THE CERTIFICATION PROCESS

THE CERTIFICATION PROCESS

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Top management commitment Formation of Steering committee Understanding The standard

Review of the Existing system

Gap Analysis

Time bound Action plan to Fill gaps

Internal Audits And Management Reviews

Pre-assessment review

Certification Audit

Continual Improvement

Problem Solving Techniques

" " " "

Cause & effect diagram Pareto analysis Flowcharting Brain storming

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How to effectively approach the project?

" " " " "

Steering committee and task force Diagnosis of an existing system Execution plan Training Planning, Re- engineering, Documenting

" Implementation " Audits and review " Possible changes

Identification and control of processes, their sequence and interaction is critical for effective quality management

IMPLEMENTING THE STANDARD

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STEP 1 TOP MANAGEMENT COMMITMENT

" A basic requirement for any quality

initiative

" Direction,monitoring and motivational

aspects

IMPLEMENTING THE STANDARD

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STEP 2 FORMATION OF A STEERING COMMITTEE

" To legitimise the issue " Should include top/middle/junior

management personnel

" Regular review of progress "

IMPLEMENTING THE STANDARD

" STEP 3 " UNDERSTANDING THE STANDARD " Attend training programmes " Organise Awareness programmes for all " Interpretation to the organisational practice " Appointment of a external expert if
necessary

IMPLEMENTING THE STANDARD

" STEP 4 " REVIEW OF THE EXISTING SYSTEM " Review of all current practices, written or
otherwise

" 1. 2. 3.

Review for Adequacy Suitability Effectiveness

IMPLEMENTING THE STANDARD

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STEP 5 GAP ANALYSIS Gap between the current practices and ISO 9001 requirements A checklist could be useful

IMPLEMENTING THE STANDARD

" STEP 6 " TIME BOUND ACTION PLAN TO FILL

THE GAPS

" For documentation " For compliance " For suitability " For adequacy " For effectiveness

" STEP 7 " INTERNAL AUDITS & MANAGEMENT

REVIEWS

" To evaluate adequacy of documentation " To evaluate compliance " To evaluate effectiveness

IMPLEMENTING THE STANDARD

" STEP 8 " PRE-ASSESMENT " By an external agency usually the

certification body

" In good time before the certification audit

IMPLEMENTING THE STANDARD

" STEP 9

" CERTIFICATION AUDIT " By the certification body

IMPLEMENTING THE STANDARD

" STEP 10 " CONTINUED COMPLIANCE " By reviews " By audits internal " By audits -- external

Quality system is for the organisation, and not organisation for the system.

Unnecessary changes should not be imposed.

Always consider:

company culture; operating philosophy; nature of business; market environment.

Flaws to avoid: System that is not tailored to suit the organizations mode of operation

Flaws to avoid: Insufficient training, communication & awareness

Certification Process
Contract Review Initial Audit Certification Surveillance Re-certification audit

Certificate ISO 9001

Scope of certification
"Standard "Products covered "Locations covered "Elements of organisation covered

Accreditation
" To ensure uniform standard of certification " To ensure recognition of certificates

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" BVCI GIVES THE NECCESARY
TRAINING 01 DAY AWARENESS 02 DAYS INTERNAL AUDITS 05 Days IRCA APPVD LEAD AUDITOR COURSES

" THE TRAINING CAN BE

OPEN INHOUSE

YOUR SESSION NOW ..

YOUR QUESTIONS PLEASE

Thank You !

> CONCLUSION