TOTAL QUALITY MANAGEMENT, VOL.

9, NOS 4&5, 1998, S164-S166

CARFAX

Evolution from quality managetnent to an integrative system in modern businesses

DiETMAR M A N G E L S D O R F
Siemans AG, Public Communications Networks, Hoffmanstrasse 51, D-81358 Munich, Germany

Basic principles for future integrative business management

The basic principles for future business management are: the main operational processes are the 'product engineering cycle' and the 'logistic cycle'; other cross-functional aspects for managing a businesse.g. business controlling risk management, irmovation management, business management audits, quality and environmental managementmust be harmonized and will be adopted to customer and market needs by the management. Harmonized in this relationship means a consistent interworking of all managing aspects, free of redundancies, in one integrative management system. All management elements are based on the same essentials: the need for a vision, mission, strategies and the deployment of goals and objectives; the definition of the various elements' application range and priorities; definition of the organizational aspects, responsibilities and authorities; process documentation and control; communication, training and support for culture change aspects; management reviews and other business controlling procedures in hard and soft facts, regular checks and assessments of results, tuning of the goals, objectives and strategies for business and for continuous improvements and culture change in all levels of the organization. In this case, the ISO 9000 quality elements are fully integrated in modern business management.

Product and management system certification in Europe

In Europe, we have many years of experience in product and management system certification, not least because the 'global concept of testing and certification' of the European Union has intensified certification procedures in Europe, copied step by step in other countries and regions worldwide. Even in this field, evolution in controlling, validation/assessment and certification/verification goes step by step beyond traditional procedures. In the International Accreditation Forum (IAF), procedures are discussed under such titles as supervised audit confirmation (SSA), supplier audit confirmation (SAC) and a projectelaborated by the German Electrical and Electronic Manufacturers Association (ZVEI)named the supervised management system (SMS). In the search for an advanced assessment and certification process adapted to the market's needs, SMS is executed as a pilot project accepted by the German Accreditation Body (DAR) in the electric and electronic, chemical and building/civil work industries.
0954-4127/98/04S164-03 87.00 1998 Carfax Publishing Ltd

EVOLUTION FROM QUAUTY MANAGEMENT

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Nowadays, people's widespread opinions about ISO 9000 certifications can be summarized as: less 'added value' after years of application; reduced effectiveness of third-party audits due to growing complexity in all business processes; formal aspects dominate; higher effectiveness and efficiency of internal audits, management reviews and process improvement activities by the use of competent 'insider' auditors of the companies; certification has noticeably reduced relevance in customer relationship; certificate only in the phase of tenders and bids as formality requires; second-party customer relationships of higher value; market requirements overshoot the ISO standard; company seeks to differ against global competition. Management asks for more added value from the certification procedure. In this case, the third party auditor has to act more as a partner, and not only as an inspector, able to detect the real problems and bottlenecks in a breakthrough to more improved business excellence.

The SMS
The SMS procedure is developed in accordance with module A of the 'global concept for testing and certification' of the European Union, today favoured in the field of product certification. General objectives are: promotion of the self-responsibility of companies and managers; strengthen partnership between the certifying body and the company's management; more flexibility by reorganizations, mergers, take-overs, cooperation or joint ventures; use of internal resources and the existent 'insider know-how' of the company; supplier's declarations as a common basis for assessment, verification and certification; concentration on the core management elements ISO 4.1, 4.14, 4.17; inclusion of different management aspects, e.g. quality (ISO 9000), environmental protection (ISO 14000), occupational health and safety, project management and European Foimdation for Quality Management assessments. The basic process elements of SMS are: validation/verification of a supplier's declaration that goes beyond the ISO 9000 requirements; the principle of differentiation; validation/ verification is based on observations and cooperation within the company's own activities to own and to improve its management system; use of assessed, qualified auditors and various internal controlling activities; the performance of random sampled joint audits together with audit teams from the company to gain confidence. If a certification basis is given, the traditional certificates can be issued or maintained. Preconditions needed to apply for an SMS procedure are: 3 years' successful operation of a quality management system certified by an accredited organization (no open discrepancies from ISO 9000, the requirements of ISO 9000 are completely fulfilled or exceeded); the company has an independent quality manager reporting directly to the chief executive officer; qualified assessed auditors execute the internal audits; the lead auditor is sufficiently independent from the organization or process being audited. It is of great advantage if the company and the certification body have already worked together for several years and have gained a high level of confidence in each other.

The SMS validation, verification and certification process

In step 1 of the assessment procedure: the applicant demonstrates that all preconditions are fulfilled and declares that all requirements of ISO 9000 or other certifiable management fulfilled, a project plan will be elaborated. In step 2 of the assessment procedure: the supplier's declaration has to be elaborated upon and harmonized; the declaration comprises only proven results, facts and figures

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(documents, data, objects); internal communication and training of all employees; the annual audit plan is given to the certification body and a random sample for a joint audit is chosen; the certification body performs a joint audit together with auditors or audit teams of the applicant to gain confidence. In step 3 of the assessment procedure, the certification body: validates the applicant's management system by an assessment of the documentation of all internal audits and management reviews; assesses and verifies the supplier's declaration; assesses the auditors of the applicant; performs random interviews with company people and managers, relating to the supplier's declaration, given goals and objectives, improvement programmes and the internal audits and management reviews; and, last but not least, participates in a regular management review of the applicant. In step 4 of the assessment procedure: the results of the assessment are documented in a report by the certifier; the company must take these results into consideration in its finished supplier's declaration, which on request can be verified; if there are any plausibility gaps or doubts, opportunities are given for additional audit activities. On request, certificates based on ISO 9000 or other certifiable standards can be issued, and are valid for 3 years. Additionally, a special diploma can be issued, demonstrating successful performance of the SMS procedures. The SMS procedure supports the integration of international management standards, evolutionary TQM activities and business management into one integrative management system.