Posts Tagged ‘small business management’
Quality Management Systems Software Advantage
With all of the software packages out there today, it is hard to believe that there are any companies who still design their quality systems on paper. I grew up on the manual paper version of a quality management system, back when there was a whole department dedicated to document control and everyone had a three ring binder full of documented procedures on their desk. So here we are today with ISO 9001:2008, AS 9100 C and various other international standards which do not require reams of paper to be compliant. When a company decides to implement a new quality management system, I don’t believe anyone sets out to create the quality system from hell, but all too often that is exactly what happens.
Why put yourself through all of that pain and unnecessary cost? There are so many software solutions available today that make getting and maintaining your certification effortless. As a management representative for a small company in Arizona, I was able to manage the quality system and carry out the responsibilities of a supply chain manager without adding one more person to the company for the sake of our quality system. How you may ask is this possible? The answer is a fully customizable software application that put all of our processes and documentation in one place. This software is SaaS based and therefore it is accessible from anywhere internet access is provided. All of our employees, key customers and suppliers were able to view and make entries as need and management decisions where determined through the analysis of the data collected by the system. What was most impressive about the implementation process was how easy it was to train everyone to use the system.
As I said before there are literally thousands of software applications for quality management system implementation. The range of products goes from supper high upfront and maintenance costs, to low upfront and maintenance costs. Complicated canned systems with little customization possibilities to easy fully customizable systems are also available. If your company is use to complicated and costly to believe you are getting a good product, then that’s the road for you. If on the other hand you are a small to midsize company with limited resources, (People and Finances), you may be interested in the latter. Do your research well and you can find a system that will work for you and actually deliver a cost savings benefit. Some items to consider:
Costs
- Upfront Cost
- Monthly Support Costs: or
- Yearly Support Costs:
- Does your system include Unlimited Users and Storage and support and revisions and new features.
- Education & Safety Costs
- Cost for Additional Modules
Applications
- Communication System
- Document Management
- Reports and Graphs
- Master Calendar
- Work Orders
- User Preferences
- Nonconformance
- Corrective Action
- Customer Feedback
- Preventive Action
- Near Miss
- Customer Supplied Product
- Inspection
- Management Review
- Internal Audits
- Calibration Control
- Quality Objectives
- Supplier Approval and Evaluation
- Competency, Training and Awareness
- Purchasing
- Job Management
- Special requirements
ISO 9001 Documentation
As a third party auditor, I have seen so many examples of how not to document your quality management system. Most of the mistakes stem from lack of understanding of what the standard really does require. So many times I see companies who have paid someone to come in and document “their” system and nine out of ten times the system is either too complicated or does not reflect what they actually do. A full 90% of the non-conformances which are discovered during a surveillance audit have nothing to do with meeting the requirements of the standard, but are written against the requirements the company has imposed on themselves.
I’m here to tell you it doesn’t have to be so hard to meet the requirements of ISO 9001:2008 and manage your quality management system documentation. Hiring an outside consultant can be a great experience when the consultant facilitates the activities involved in developing your quality system, but leaves the ownership and management of the system to you. This is your system, not the consultants, and should be developed and implemented by your organization so it reflects the actual practices, processes and documentation of your organization.
There are only six required documented procedures and a quality manual that you “have to have “ , all other procedures that you develop are up to you. Don’t add procedures that do not add value to your processes. If you need a procedure to complete a process properly or a customer has required it of you, then you must have that procedure. If you want to have procedures for training purposes only, then call them just that. The key is to keep it simple and manageable, you’re in business to make a profit, not manage a monstrous quality management system. If you are not sure how to go about tackling ISO 9001 certification, call a reputable consultant, they can help set you on the right path. In the end, it is your system, and it should reflect what you do in a way that is transparent and easy to maintain.
How Do You Define ‘Risk’?
Risk may be defined in terms of exposure to a hazard (an incident), likelihood of an incident occurring, and the consequences of the incident. It should be pointed out that the ‘outrage factor’ must be considered as part of the consequences of an incident. Public opinion of an organization can be greatly affected by the way it manages its risk,( especially in the area of Occupational Health & Safety). The outrage factor can greatly magnify risk.
Generally we cannot predict the consequences of an incident, so it is difficult to rate risks in order of importance, to provide a basis for distribution of resources to control risk. We can however, assess the likelihood of an incident by using statistics to measure probability in many cases.
In practice it is usually enough to identify hazards and take appropriate action to minimize the associated risk, based on reasonable expectation of the outcomes of exposure.
The term ‘safe’ is used to denote a situation or condition where there is minimal acceptable risk, i.e. where the risk is tolerable to stakeholders.
When determining what is acceptable risk, it is important to remember the ISO risk management principles:
- Risk management should create value
- Risk management should be an integral part of organizational processes
- Risk management should be part of decision making
- Risk management should explicitly address uncertainty
- Risk management should be systematic and structured
- Risk management should be based on the best available information
- Risk management should be tailored
- Risk management should take into account human factors
- Risk management should be transparent and inclusive
- Risk management should be dynamic, iterative and responsive to change
- Risk Management should be capable of continual improvement and enhancement
ISO 9001: Management Review What’s It All About?
Section 5.6 if the ISO 9001:2008 standard requires that top management reviews the organizations quality management system in order to determine its continued suitability, adequacy and effectiveness. There are many ways to satisfy this requirement. Many companies miss interpret this passage to mean they must have a meeting specifically to satisfy this section of the standard. Some companies even go so far as to impose mandatory monthly meeting for this purpose. The standard does not say anything about a meeting, it says you must review the inputs and out puts of your processes at planned intervals.
You must decide how often it is necessary to carry out the review of the required inputs and outputs and how you will review them. You can have several meeting during a given time period during which you address one or more of the requirement at each meeting, (production meetings, customer service sales meetings, quality MRB meetings, annual state of the business meetings, safety meetings, etc). You may decide that top management can satisfy this requirement by individually reviewing the inputs and outputs of the QMS electronically and communicating the results to the organization through action plans to individual departments, group meetings, or supervisor dissemination to the work force. You may decide to go the traditional route and have scheduled management review meetings quarterly or yearly.
The key here is you must decide how and when, and then you must make sure this plan is carried out. When deciding, keep in mind the purpose of this exercise is continual improvement. Don’t invent an elaborate review process that does not add value, make it work for you.
ISO 9001 Paper or Software?
When setting up your quality management system it is important to understand your options and their advantages and disadvantages. I have been involved with developing and implementing ISO 9001 and AS 9100 quality management systems both through a manual paper system and an automated software system. Each option has very distinct advantages and disadvantages which can help you determine which way your organization should go.
Option # 1 the paper system. This system is best implemented in a small to mid size organization where control is easily maintained. A paper system can get extremely convoluted in larger companies, which can result in inadequate control and subsequent non-conformances during a third party audit. The key to implementing a successful paper quality management system is to keep it simple and manageable. If your system requires excessive maintenance it will become a burden which may result in the failure of the system to yield the continual improvement objectives that it was set up to achieve.
Option # 2 the software approach. This system is advantages in both small and large companies and offers the added advantage of organization and control for your entire quality management system. By setting up your system digitally you can automatically control revisions and distribution of your documentation. You will also be able to communicate non-conformances, progress towards objectives, internal audits, calibration control, preventive actions, and supplier control and customer satisfaction. Your only real limitation with this system is the level of access your organization is capable of providing. If the rank and file is unable to access the system it does you little good. The best digital systems are internet based SaaS systems which offer access anywhere, anytime to internal and external users such as customers and suppliers.
My Customer Wants Us Certified to AS9100, HELP!
You are a small business owner who has just been told you must become certified to AS9100 in order to continue to receive business from your largest customer. You have been putting this off for some time, hoping you would be able to wait until the economy gets better. Now what, you have a deadline and you haven’t got a clue how to get there from here? The best advice, find a competent consultant and get some training to the standard.
Those organizations who recruit good consultants get the job done roughly twice as fast. By helping you avoid mistakes, a good consultant can help you get the job done faster. But only a good consultant can do this. Not all consultants are created equally, and it is important to select a consultant that is right for you. A reputable consultant works hard to ensure that you fully own your quality management system at the time of registration. Key services you will require, if you have no idea what you are doing or how you will do it are as follows:
1. Required documentation development and implementation
2. Training: Quality policy and objectives, Management review, Corrective and Preventive action, Internal auditing, AS9100 Overview, Risk analysis, Overview of the Complete QMS, Collecting and analyzing data.
3. If software is being used to facilitate and run your quality system, you will also need training and implementation services for this.
4. Implementation of a competency, awareness and training program, internal audit, corrective and preventive action programs, management review and overall continual improvement programs.
5. Conduct internal audits for entire system (all processes), one high level internal audit to the AS9101C checklist in preparation for registration audit.
This is just a short list of services that you may need to accomplish your goal of certification to AS9100. Depending on the size and complexity of your organization and processes more may be needed. A good consultant can help you determine your individual needs.
Adapting to a Paperless World
We are living in an ever-increasing paperless world. With the advent of e-Readers and Smart Phones, in a few decades we may be viewing paper and print resources as barbaric instruments. While this may be disturbing to some, the digitalization of information and records has increased accessibility and made business more efficient than ever.
One of the best ways to take advantage of technology is by keeping your business ledgers and records in digital form. You can find comprehensive business management software that will allow you to keep track of all of your business practices in one place. Not only will this cut down on the amount of time and paper that you use, but it is more accurate as well.
Assistance in Developing Your Management System. Can the Registrar Provide These Services?
No, your registration company will not provide consulting services. The purpose of 3rd party assessments is to provide your organization with an unbiased, impartial review of your quality management system. If the registrar were to be involved in the development and implementation of your quality management system, impartiality would no longer exist. Additionally, the registrar reviews all auditor activities to ensure that auditors who are also consultants have not been involved in the development and implementation of the QMS scheduled for assessment; this includes not only the audit but decisions related to the client. Most registrars have access to a listing of consultants and are happy to provide you recommendations or references to consultants in your area.
There are consultants that specialize in small business management implementations. These consultants are usually cost effective and will provide a service which will customize your quality management system to meet your individual needs. Always remember to review the credentials of the consultants you select. There are a few questions that you should get answers to before you contact with a business management consultant. Most importantly make sure your consultant has been responsible for managing a quality management system and is certified to the standard they will help you implement.
Planting the Seed for a Successful Business
Exceptional management is at the core of every successful business. When it comes to establishing a hierarchy of employees, it’s important to implement a business process management system. Think of it like a family tree, everything spawns from one source and branches outward as it gradually expands. And like a tree, a business needs proper nourishment to grow.
As you begin to draft your business process management system, try to keep it basic. If your strategy is simple yet strong, like a tree it will blossom at a continual rate. Soon it will grow leaves, which symbolize the customers. And as the years pass the tree will grow, and so will your business.
Business Management System Tools For Today
We will devote this page of the blog to new and inventive ways to manage your business management system. We will discuss software trends and other time saving tools that will make developing and maintaining your quality management system both cost, and time effective.
You are invited to contribute your ideas and knowledge so that everyone may benefit from this blog. All though I am a consultant, I am very serious about working together with all that are interested in driving continuous improvement and the betterment of our community. If everyone who comes here, contributes just one idea, just think what we can do together.
Some small businesses cannot afford six figure consultant fees to help construct a quality management system that complies with the standard, and meets their indiviual needs. This is why these new tools are so improtant and should be shared and discussed openly.