Vol. 3, No. 3 – May-June 2003 ISSN 1680-8096 Publicité JQA 1 page 2 ISO Management Systems – May-June 2003 Publicité AMADEUS 1 page ISO Management Systems – May-June 2003 3 Publicité JMH 1/2 page Publicité BVQI 1/2 page 4 ISO Management Systems – May-June 2003 Co n t e nt s Contents 6 Editorial – ISO’s magic spell ISO INSIDER p. 15 Viewpoint IMS interviews ISO’s new Secretary-General Alan Bryden : “ ISO is in the forefront of providing the economic and social players with reference documents to disseminate progress, demonstrate performance and facilitate international trade.” p. 19 Special Report The auto sector – ‘ISOmobile! ’ Eight of every 10 cars to run on ISO 9001:2000 by 2006 By the end of 2006, as many as eight out of every 10 cars and trucks produced around the world will contain parts or components that have been designed, manufactured and sold under an ISO 9001:2000-based quality management system. p. 41 International Japanese survey reveals timescale and benefits of ISO 9001:2000 transition “ How long does it take to transition from ISO 9001:1994 to ISO 9001:2000 ? ” and “ What are the challenges and the benefits ? ” This article provides answers to these and related questions gleaned from a recent survey of 630 companies in Japan that made the upgrade. 9 Revising ISO 14001 and ISO 14004 12 International benchmark for personnel certification schemes 13 New ISO/IEC guide aims to improve VIEWPOINT SPECIAL RE PORT efficiency of international trade 15 IMS interviews ISO’s new Secretary-General 19 Management systems in the automotive sector ISOmobile! Eight of every 10 cars to run on ISO 9001:2000 by 2006 24 Is certification paying for automotive manufacturers ? 31 How Japan’s car manufacturers rate ISO 9000 and ISO 14000 37 Finland’s Volvo network and the environ- INTERNATIONAL ment benefit from country-wide ISO 14001 certification 41 Japanese survey reveals timescale and benefits of ISO 9001:2000 transition 49 Managing organizational change Part 5 – Communication and change 58 Next issue ISO MANAGEMENT SYSTEMS is published six times a year by the Central Secretariat of ISO (International Organization for Standardization) and is available in English, French and Spanish editions. Publisher: ISO Central Secretariat, 1, rue de Varembé, Case postale 56, CH-1211 Geneva 20, Switzerland. Tel. + 41 22 749 01 11. Fax + 41 22 733 34 30. E-mail central@iso.org Web www.iso.org Editor in Chief: Roger Frost. Contributing Editor: Garry Lambert. Artwork: Pascal Krieger, Pierre Granier. A one-year subscription (six issues) to ISO MANAGEMENT SYSTEMS costs 126 Swiss francs. Subscription enquiries: Sonia Rosas, ISO Central Secretariat. Tel. + 41 22 749 03 36. Fax + 41 22 749 09 47. E-mail sales@iso.org ISO Central Secretariat has mandated SOGI Communication as its advertising representative, not only for the French edition, which SOGI also distributes in addition to ISO’s members, but also for the English and Spanish editions. SOGI Communication is also authorized to offer advertising banner space on ISO’s Web site (www.iso.org). SOGI Communication, 103, rue La Fayette, 75481 Paris cedex 10, France. Tel. + 33 (0)1 42 81 94 00. Fax + 33 (0)1 42 81 98 07. Director: Maurice Roboh. Editor in Chief: Martin de Halleux. E-mail halleux@qualite-references.com © ISO, May-June 2003. The views expressed in ISO MANAGEMENT SYSTEMS are those of the authors. The advertising of products, services, events or training courses in this publication does not imply their approval by ISO. ISO Management Systems – May-June 2003 5 Photo: Henry Voide Editorial BY Editorial R OGER F ROST ISO’s magic spell Costs would be drastically reduced if products could be tested once and the results accepted in all markets W e all look up to values. How do you bring them down to earth ? Naturally, most of us value quality, ecology, safety, economy, reliability, efficiency and effectiveness in the products and services we buy, use at work or home, or that our children use at play. The problem is that such values and criteria belong to the lofty realm of “ good ideas ”. To make them real, they need chunking down into specific characteristics that are relevant to a given product and service and practical to implement during its design, manufacture or supply. The solution seems simple, doesn’t it ? However, simple does not necessarily mean easy. The specific and concrete characteristics that bring concepts to life do not fall out of the sky – they have to be developed. To do so requires bringing together people with the necessary expertise and providing them with a tried and tested structure, and effective processes and efficient tools to work with. Obviously, this requires organization, especially as the task is multiplied by many hundreds of times – as many as there are products, services, materials, processes and systems to which developing agreements on worthwhile characteristics and specifications can add value for their manufacturers and providers, customers and users. Added value This added value is the output of the system for the development of International Standards. Simple, in theory ; in practice, not easy – but, fortunately, there is ISO. To date, the ISO system has produced more than 13 700 International Standards that provide state-of-the-art solutions for just about every business sector and area of technology. But there’s more to the story than just standards – and the story has grown more complicated over the years. Since early civilizations, people have implemented standards in areas like construction, transport, production and administration for the benefits they bring in efficiency and effectiveness at an economical cost. In addition to the immediate practical effects, on a higher level, standardization promotes general progress by acting as a repository for technical advances and their diffusion on a wide scale. At both these levels, the traditional benefits of stan6 ISO Management Systems – May-June 2003 dardization can be encapsulated by the metaphor of standards removing the obligation “ to have to re-invent the wheel ”. These primary benefits of standardization are still true today. If anything, they are accentuated by the critical need to provide practical means for encouraging sustainable development and the equitable sharing of developing countries and economies in transition in the fruits of technological and economic progress. With an intensified requirement for internationally applicable standards comes increased responsibilities : not only do the standards and the system that develops them have to be “ up to standard ”, but the different stakeholders need to be confident that claims to meet International Standards can be relied upon. Hence the growing attention paid to “ conformity assessment ”. As goods and services flow across borders, business partners or government agencies may require verification that they measure up to standards, regulations and other requirements. The technical term for this verification is “ conformity assessment ”. One of the main difficulties that exporters face is costly, multiple testing and/or certification of products, services, systems, processes and materials. These costs would be drastically reduced if products could be tested once and the results accepted in all markets. Guide 68 is a concrete Confidence example of how ISO So, in addition to International Standards for products, materials, etc., ISO develops standards and guidelines for conformity assessment activities, and the bodies that carry them out, with the practical aims of encouraging their coherence and consistency worldwide and thus increasing confidence in them. The strategic objective has been summed up as “ 1-1-1 ”, which can be described as ISO’s “ magic spell ” for opening the benefits of world trade to all : 1-1-1 = 1 standard, 1 test, 1 certificate – accepted everywhere. is working to make the 1-1-1 magic spell work Of course, does the side of the mountain really open to reveal a treasure trove at the magical command of “ Open sesame ! ” – except in the story ? Mere repetition of “ 1-1-1 ” will not work magic either. Fortunately, as already observed, ISO has a rich experience in the domain, such as transforming values like quality, ecology, safety, economy, reliability, efficiency and effectiveness into implementable requirements and specifications. An example is the new ISO/IEC Guide 68, Arrangements for the recognition and acceptance of conformity assessment results (see p. 13), which will contribute to reducing redundant, costly and timeconsuming aspects of conformity assessment activities. As well as meeting the practical requirements of conformity assessment professionals, Guide 68 is intended to be a useful tutorial for others, such as government trade officials. The potential audience also includes managers whose specific experience of ISO 9000 and ISO 14000 has awakened awareness of the role of International Standards in general in facilitating trade and are therefore curious to learn more. In short, Guide 68 is a concrete example of how ISO is working to make the 1-1-1 magic spell work. We all value values. ISO standards make them real. ISO Management Systems – May-June 2003 7 Publicité Qualios 1 page 8 ISO Management Systems – May-June 2003 ISO INSIDER Revising ISO 14001 and ISO 14004 To ensure that ISO standards represent the state of the art, ISO’s rules require its technical committees to review the standards they have developed within five years of their publication and to decide whether to revise, confirm or withdraw them. ISO’s environmental management system (EMS) standards ISO 14001 (EMS specification and guidance for use) and ISO 14004 (general guidelines on EMS principles, systems and supporting technologies) are no exceptions to the rule. Published in 1996, they are now being revised by Subcommittee (SC) 1 of ISO technical committee ISO/TC 207, Environmental management, which developed the original versions. In addition to ISO’s five-year review requirement, the following issues came into play during the discussions To ensure preceding the review : ! ! ! ! committee about the need for and possible approach to a revision of both standards and this took place in 1998. Thirty-one of the then 47 participating “ P” members (ISO technical committees also have observer “ O ” members who do not vote) of ISO/TC 207/SC 1 supported revising the standards with most of them preferring to see a wide-ranging revision. At the same time, concerns existed (and still do) that such an early revision could cause confusion or uncertainty among the potential users of the standards. Therefore, SC 1 decided to limit the revisions to the following : – enhancing compatibility between ISO 14001 and ISO 9001:2000, and – improving the clarity of the 1996 texts. This decision was designed to reassure that ISO the market place, standards represent assist existing users and help countries the state of the art, only recently becoming aware of and ISO’s rules require its involved in the technical committees development and use of the standards. to review the standards the overwhelming desire of the writers of the standards to ensure compatibility with the ISO 9000 series standards, which were underthey have going a major revision at the time ISO 14001 and ISO 14004 were first published ; the need to ensure that the standards are clear in their requirements and content ; the need to reflect experience in the use of ISO 14001 and ISO 14004 ; the need to ensure that the standards can be used and understood by all types and sizes of organization worldwide. SC 1 decided to survey the national delegations that make up the sub- In the case of ISO 14004, the scope of the revision was defined as follows : developed BY O SWALD A. D ODDS Oswald A. Dodds, MBE, is chairman of ISO technical committee ISO/TC 207’s Subcommittee 1, which is revising ISO 14001 and ISO 14004, and a member of the working group dealing specifically with ISO 14001. He is co-leader of the ISO/TC 207 Group on Corporate Social Responsibility, TC 207 liaison representative to ISO/CASCO, Committee on conformity assessment, and leader of the United Kingdom delegation to ISO/TC 207. He is also active in standardization at all levels within the British Standards Institution (BSI) and the European Committee for Standardization (CEN). Former executive director of a large British local government authority, Oswald Dodds now runs his own business support company, Osanda. – improve the clarity of the text, Oswald A Dodds, MBE, Director, Osanda Support Services, 19 Shepperton Close, Great Billing, Northampton NN3 9NT, United Kingdom. – reflect and integrate the experience of users, Tel. Fax E-mail – follow and remain consistent with the revisions of ISO 14001, + 44 1604 401726. + 44 1604 414366. oad.osanda@btinternet.com – ensure that the document can be used by and is relevant to small and medium enterprises (SME’s). Previous articles in ISO Management Systems by ISO/TC 207 experts Philip Stapleton (“ ISO 14004 revision will promote use of environmental management ISO Management Systems – May-June 2003 9 ISO INSIDER systems by the SME ”, IMS, March-April 2002) and Lynn Johannson (“ ISO 14001 : one for all, or just for some ”, IMS, September-October 2002) provided information on this aspect. Terms of reference for the revisions were agreed and the work got underway in 1999-2000. The original work plan showed that the task should be completed during 2003. It is now seen as more likely that the task will be completed during 2004. The revision process ISO/TC 207, SC 1 decided to limit the revisions to the following : – enhancing compatibility between ISO 14001 and ISO 9001:2000... 10 in that group (the Joint Task Group) have attended each other’s meetings, offering comments to aid the compatibility improvements of ISO’s quality and environmental management system standards. Key revisions Examples of key changes proposed to ISO 14001 include the following : ! changes to the diagram to show the Plan-Do-Check-Act methodology and the addition of a note of explanation and reference to the process approach used in ISO 9001:2000 ; Two working groups have been set up, each assigned the revision of one ! amendments to and the addition of the standards. They use many techof new definitions for compatibiliniques, ranging from general brainty, and enhancement and clarity of storming sessions to specific issue dismeaning ; cussions in small and large groups, not ! the explicit requirement to define to forget focussed task groups looking the scope of the EMS has been at a particular element (or even moved from the Introduction of phrase) in one of the standards. the existing version of the standard We have been through rough to clause 4.1 ; drafts, working drafts, editing groups, ! the requirement “ for the Policy to and many more ! We have had our be appropriate to the nature, scale “ moments ” en route to the present and environmental impacts ” will position, but that is all part of the now apply to the “ activities, prodprocess of consensus building which is ucts and services that at the core of the ISO are within the defined process. We have had the full scope of its EMS ”; Currently, we are in the middle of a foursupport and cooperation ! the phrases “ empmonth (approximately) loyees ” and “ memperiod for Committee of our colleagues bers ” are to be replaced Draft (CD) ballot/comby the phrase “ all perments that will hopeful- from ISO/TC 176/SC 2 – sons working for or on ly lead to a Draft the subcommittee behalf of the organizaInternational Standard tion ” ; responsible for (DIS) for both revised ! the Legal and other documents following ISO 9001:2000 requirements clause is to meetings scheduled to include an explicit protake place in Bali, vision “ to ensure that legal requireIndonesia in late June/early July 2003. ments are considered in developing, I should point out that through implementing and maintaining (an this activity we have had the full suporganization’s) EMS ” ; port and cooperation of our colleagues from ISO/TC 176/SC 2 – the ! the clauses in the 1996 edition that subcommittee responsible for ISO refer to Objectives and Targets and 9001:2000. Several years ago, during Environmental Management protheir own revision activity, a joint gramme are to be combined in group was established to deal with order to aid understanding ; compatibility issues and participants ISO Management Systems – May-June 2003 ISO INSIDER ! ! ! the clauses on Structure and responsibility, and Training, awareness and competence have been revised to clarify their purpose and make them more understandable for users ; the requirement for specific documented procedures is to be reduced to that required for operational control purposes. In all other cases, the need for documentation is to be covered by a revised Documentation clause that includes requirements for – documented environmental policy, objectives and targets, – a description of the main elements of the EMS and their interaction and reference to related documents, – documents required by this International Standard, – documents determined by the organization to be necessary to ensure the effective planning, operation and control of processes that relate to its significant environmental aspects, and – records required by this International Standard. ! Annex B : informative tables showing links between ISO 9001 : 2000 and ISO 14001:200X will be updated as the revision progresses. Space limitations preclude a more detailed explanation of proposed changes, as they are many and detailed. All of them are designed to : – improve the clarity of the 1996 text, – improve further compatibility between ISO 9001:2000 and ISO 14001:200X, – ensure easier translation and use around the world, and – avoid new requirements being introduced (beyond any changes needed to implement the other bullet points above). ...and – improving the clarity of the 1996 texts. Clearly, with both ISO 14001 and ISO 14004, the views of ISO national member institutes will have to be accommodated as we move to finalize the revised standards – and clearly too, the ballot results will be significant in how and when we move to finalize the process and ask ISO to publish the new editions. I am optimistic that we can achieve I am optimistic that publication during the requirement we can achieve publication 2004 – later than to evaluate legal originally expected, compliance peribut given the nature during 2004 odically is to be of the task and the separated from considerable interest the monitoring and measurement and involvement in our discussions, clause to ensure that it receives perhaps not entirely unexpected. appropriate attention by users ; ! the EMS audit clause will be amended to emphasize that the requirement is for an internal process (not to be confused with other audit-type activities) ; ! Annex A : the guidance offered on the use of ISO 14001 has been revised to fit with the changes to the requirements and to provide guidance based on experience and need, and ISO Management Systems – May-June 2003 11 ISO INSIDER International benchmark for personnel certification schemes BY E LIZABETH G ASIOROWSKI -D ENIS The author is a journalist in the Public Relations Department of ISO Central Secretariat. E-mail gasiorowski@iso.org ISO/IEC 17024 should be the basis for the recognition of the certification bodies and their certification schemes A new International Standard aims to harmonize the various procedures used around the world for certifying the competence of personnel in different professions. It will provide a global benchmark for certification schemes to ensure that they operate in a consistent, comparable and reliable manner worldwide, thus establishing an environment for the mutual recognition of schemes and facilitating the global mobility of personnel. Today, thousands of certification programmes exist for personnel in practically every industry, in particular in the service sectors, from health care personnel and financial planners to safety professionals and non-destructive testing operators, as a means of demonstrating their professional ability. One of the functions of the body carrying out certification of persons is to undertake an independent assessment of education/training, experience, demonstrated knowledge and skills applicable to the area for which the certification is awarded. This process is known as a “ certification scheme ”. Objective criteria The new standard, ISO/IEC 17024, Conformity assessment – General requirements for bodies operating certification of persons, provides a uniform set of guidelines for organiza- 12 ISO Management Systems – May-June 2003 tions managing the qualification and certification of persons, including procedures for the development and maintenance of a certification scheme. It is designed to help bodies operating certification of persons conduct well-planned and structured evaluations using objective criteria for competence and grading in order to ensure impartiality of operations and reduce any conflict of interest. “ To be able to choose a person with the competence needed, or for a person to be able to demonstrate specific competencies, the tool of certification under a defined certification scheme may be particularly useful,” said Dr. Thomas Facklam, Chairman of the International Accreditation Forum (IAF) and convenor of the ISO working group that developed the new standard. “ ISO/IEC 17024 should be the basis for the recognition of the certification bodies and their certification schemes, in order to facilitate their acceptance on the national and international levels. Only the harmonization of the system for developing and maintaining certification schemes for persons can establish the environment for mutual recognition and the global exchange of personnel,” further noted Dr. Facklam. The new standard is the work of ISO/CASCO’s working group WG 17, Certification of persons, in partnership with the IEC (International Electrotechnical Commission). ISO/IEC 17024, Conformity assessment – General requirements for bodies operating certification of persons, costs 59 Swiss francs and is available from ISO national member institutes (a complete list with contact details is posted on ISO’s Web site : www.iso.org) and from ISO Central Secretariat (sales@iso.org). ISO INSIDER New ISO/IEC guide aims to improve efficiency of international trade ISO/IEC Guide 68, Arrangements for the recognition and acceptance of conformity assessment results, costs 52 Swiss francs and is available from ISO national member institutes (a complete list with contact details is posted on ISO’s Web site : www.iso.org) and from ISO Central Secretariat (sales@iso.org). Useful introduction BY E LIZABETH G ASIOROWSKI -D ENIS A new ISO/IEC guide aims to reduce redundant, costly and timeconsuming aspects of “ conformity assessment ” activities and, in doing so, contribute to the efficiency of the international trading system. As goods and services flow across borders, business partners or government agencies may require verification that they measure up to standards, regulations and other requirements. This verification is known as “ conformity assessment ”. One of the main difficulties exporters face is costly, multiple testing and/or certification of products, services, systems, processes and materials. These costs would be drastically reduced if a product could be tested once and the results accepted in all markets. The new guide provides procedures for establishing and maintaining cooperation among the bodies that carry out conformity assessments and the “ accreditation bodies ” that verify their competence. This cooperation is formalized in what is known as a recognition arrangement (or acceptance arrangement) which will allow the contracting parties to recognize (or accept) the results of each other’s inspections, testing, certification or accreditation for goods and services traded internationally. These arrangements are expected to improve the confidence of both private and public sector purchasers, and of regulators, that requirements applicable to products, services and systems have been met. According to John Donaldson, convenor of the working group that developed ISO/IEC Guide 68, it is a useful introduction to the elements and procedures so far developed to establish cooperation among conformity assessment bodies. “ The concept of arrangements for the acceptance of conformity assessment results is complex. The new guide has attempted to simplify the concept for ease of understanding - at a general level. It will be used in tutorial situations for those unfamiliar with conformity assessment situations. Moreover, it should prove useful for educating trade policy analysts and others relatively new to the field of conformity assessment.” Arrangements for cooperation are intended to avoid the expense and inconvenience of multiple conformity assessments that goods and services may need to undergo, especially when they are traded across borders. They will also serve the market by helping to lower technical barriers to trade – which results in lower manufacturing costs – and to raise the level of confidence between buyers and sellers. ISO/IEC Guide 68 was developed by ISO/CASCO, Committee on conformity assessment, working group WG 11, Mutual recognition agreements, in partnership with the IEC (International Electrotechnical Commission). The new guide has attempted to simplify the concept for ease of understanding ISO Management Systems – May-June 2003 13 Publicité SQS 1 page 14 ISO Management Systems – May-June 2003 VIEWPOINT I was the generic and systemic approach, which lent itself to meeting other challenges that organizations face. This led to the development – and the success – of ISO 14000 and realization of the potential of management system standards for addressing other dimensions. Alan Bryden : There is an Above and beyond the understandable emphasis on practical benefits that ISO 9000 certification because certifiand ISO 14000 cates can be bring organcounted and izations in therefore proISO documents... terms of the vide a temptefficiency and ingly easy disseminate progress, effectiveness measure of sucdemonstrate of their operacess. However, tions, a full it would be performance and appreciation of superficial to their success understand the facilitate international needs to take success of ISO trade into account 9000 and ISO their strategic 14000 solely in importance. In terms of the fact, ISO’s manumber of cernagement systificates. If for tem standards no other reaform the spear son, we don’t point of an adknow how vance by intermany organizanational stantions impledardization in ment these general into standards for the centre of their internal Alan Bryden took office as ISO’s new Secretary-General – one of today’s benefits, withthe equivalent of a chief executive officer of a business corporation – principal ecoout seeking ceron 1 March 2003. nomic and tification. As social developthe benefits – ments – the globalization of trade. reported, for example, by IMS – to different types of organization in different sectors are considerable, ISO 9000 and ISO 14000 provide a globally then we would expect these numbers to be substanunderstood framework for business-to-business tial. relationships. They promote confidence in the context of international trade and today’s networked When ISO 9000 was published, it was a solution economy where even small and medium-sized whose time had come. The benefits of an inclusive, enterprises can reach out via Internet to markets integrated approach to ensuring quality had beyond their geographic hinterland. become widely recognized by leading organizations. ISO 9000 took the best features of different national approaches and distilled them into a stateUniversally known of-the-art model suitable for implementation by In ISO 9000 and ISO 14000, we provide the any type of organization, anywhere in the world. market with management standards universally In rationalizing best practice and making it known and accepted to enable companies and available to all, ISO 9000 resembled many ISO organizations both to improve their operations standards. What was new and different, however, IMS interviews ISO’s new Secretary-General Photo : P. Krieger SO Management Systems : More than 500 000 organizations worldwide certified to ISO 9000 standards, over 37 000 certified to ISO 14001 – how do you explain the international success of ISO’s management system standards ? “ ” ISO Management Systems – May-June 2003 15 VIEWPOINT and to communicate their achievements and their focus on customer satisfaction and continuous improvement to their customers and stakeholders, whether local or international. IMS : Not only are users implementing management systems based on ISO 9000 and ISO 14000, but a growing number are also adding or integrating processes to deal with dimensions such as occupational health and safety (OHS), risk management and so on. How does ISO propose to facilitate the task facing users in integrating management systems ? proliferating both at the national and international levels and providing reference documents. How is ISO reacting to this trend ? AB : Within ISO, we prefer to refer generically to “ social responsibility ” since the subject is of interest both to business corporations and to organizations at large. I would say that we are in a “ pre-standardization ” phase. Indeed, initiatives are numerous, reference documents are proliferating and social ratings agencies are prospering because investors and retailers are seeking assurances about the behaviour of companies. This is because consumers themselves are becoming more concerned. As a result, “ ethico-marketing ” is growing in relation to consumer goods, along with claims that are not always substantiated. In this connection, it is noteworthy that social responsibility made its entry to ISO through ISO/ COPOLCO, our Committee on consumer policy, which last year presented a report on the issue, suggesting that ISO endeavour to address it. reference AB : Whether in the small company sensitive to the need to use limited resources efficiently, or in multinational corporations at the corporate level, quality, environment and safety are best managed in a coordinated and consistent way. All three require the commitment of top management and they impact on the sustainability of the organization and affect the satisfaction of stakeholders at large. It is, after all, an issue of risk management : Developing failures in any of these dimendocuments for conformity sions may well compromise the First step mid-term economic and commerassessment is a very important Because ISO commits cial success of the organization. resources to new work only when Because OHS includes social facet of ISO's contribution the market need for it is clearly and labour aspects, this dimension to the world trading system established, our first step has is often affected by national or been to put representatives of the regional regulations. It is true that stakeholder interest groups and the authors of siga number of national standards have been develnificant international contributions around the oped addressing this component of the performtable to develop agreement on what social responance of companies. sibility actually covers and how ISO could help in It is also the case that national initiatives have designing international reference documents to been taken to develop guidelines to integrate the address it. three dimensions within one management system. On the basis of this first step, ISO Council was We are well aware of these initiatives, but you need advised and decided to go further. In the coming to remember that ISO has a “ bottom-up ” approach months, we will thus develop a Technical Report to developing new standards – the requirement has consisting of a compendium of current initiatives to emerge from the market. and proposing ways forward for international However, considering the success of these initiastandardization. They could consist of guidelines tives, I would not be surprised if we were invited to for integrating social responsibility issues in manproceed with giving them an international profile – agement systems, of a clarification of terminolobut it would be to provide a tool for improvement gy, or even of guidelines for reporting or assessing and communication, rather than a basis for certifiperformance, if the stakeholders so wish. cation, considering the links I mentioned with the Clearly, the ISO system offers a proven local legal context. “ machinery ”, a “ brand name ” and a dissemination process that can help to develop, in this area as we IMS : The three dimensions (economic-environhave done in others, internationally recognized mental-social) basically form the “ triple bottom and consistent reference documents. line ” often referred to when addressing “ corporate social responsibility”. There again, initiatives are 16 ISO Management Systems – May-June 2003 VIEWPOINT IMS : With the growth of cross border trade, more and more enterprises are becoming aware of the advantages of agreements facilitating worldwide recognition of tests, certificates and inspections relating to products, services and management systems. What clarity and practical help can ISO bring to businesses, trade negotiators and government regulators in this area of “ conformity assessment ” – to give it its technical name ? AB : ISO has already achieved a lot in this area. We can point, for example, to the success of accreditation which, in simple terms, means the formal approval of organizations as competent to offer specific conformity assessment services. The accreditation of many thousands of certification bodies and testing laboratories around the world is based on joint ISO/IEC standards and guides developed by ISO/CASCO, Committee on conformity assessment Confidence (see p. 12), which has just been published, breaks new ground for ISO – Conformity assessment – General requirements for bodies operating certification of persons. Our success in the area of conformity assessment is demonstrated by the fact that the WTO Committee on Technical Barriers to Trade is now well aware of our “ tool box ” for conformity assessment, which is a topic high on its agenda, and, in particular, of our Guide 68, Arrangements for the recognition and acceptance of conformity assessment results (see p. 13). Success also has its inconveniences : we must make sure that reference to ISO in these matters – especially claims of conformity to our standards – is not misused, because that would damage our image. We have taken collaborative steps to improve the situation. So, there again, ISO is in the forefront of providing the economic and social players with reference documents to disseminate progress, demonstrate performance and facilitate international trade. Photo : P. Krieger More and more, conformity assessment and mutual recognition arrangements based on peer assessment, such as those developed by ILAC (International Laboratory Accreditation Cooperation) and IAF (International Accreditation Forum) or between certification Quality, environment and bodies themselves, make use of the standards and guides that we have developed safety are best managed with the participation of all stakeholders. Under these arrangements, conformity in a coordinated and assessment bodies in different countries consistent way recognize as equivalent each others’ tests, certificates or accreditations. This may greatly contribute to facilitating trade, all the more so as conforming to our reference documents may result in greater confidence placed by the market and authorities in the corresponding conformity assessment services. Trade regulators themselves increasingly turn to our standards when they require conformity assessment procedures, or need to designate third party operators to carry out conformity Formerly Director General of France’s national standards assessment activities on their behalf. institute, AFNOR, Alan Bryden’s background includes So, all in all, I consider that develophands-on experience of conformity assessment as Director ing reference documents for conformity General of the French national testing laboratory assessment is a very important facet of (Laboratoire National d’Essais – LNE), which is one of the country’s ISO’s contribution to the world trading leading establishments for metrology, testing and certification. system. Progressively, we are completing Among other responsibilities, he was Vice-President of the first and improving our collection of such Committee on Technical Barriers to Trade in GATT, which has documents. For example, ISO/IEC 17024 since become the World Trade Organization (WTO). “ ” ISO Management Systems – May-June 2003 17 Publicités SAI et VCA 2 1/2 pages 18 ISO Management Systems – May-June 2003 SPECIAL RE PORT Management systems in the automotive sector ‘ ISOmobile! ’ Eight of every 10 cars to run on ISO 9001:2000 by 2006 BY H ENRY G RYN By the end of 2006, as many as eight out of every 10 cars and trucks produced around the world will contain parts or components that have been designed, manufactured and sold under an ISO 9001:2000-based quality management system. Henry Gryn represents car maker DaimlerChrysler on the International Automotive Task Force (IATF), an ad hoc group of automotive manufacturers and their respective trade associations, formed to provide improved quality products to customers worldwide. The author headed the IATF delegation which formed a partnership with ISO technical committee ISO/TC 176 and the Japanese Automobile Manufacturers Association (JAMA) to develop ISO/TS 16949:2002 in order to harmonize quality management requirements for the automotive sector worldwide. ISO Management Systems – May-June 2003 19 SPECIAL RE PORT F We found the standard to be much improved over the 1994 edition in that it is geared toward the way a company does business 1) ISO/TS 16949:2002, Quality management systems – Particular requirements for the application of ISO 9001:2000 for automotive production and relevant service part organizations, costs 116 Swiss francs and is available from ISO national member institutes (listed with contact details on ISO’s Web site : www.iso.org) and from the ISO Central Secretariat (sales@iso.org). 20 or the first time in history, the highly competitive automotive industry has reached consensus through the International Automotive Task Force (IATF) on a common set of supplier quality requirements that were developed and published in March 2002 by ISO (International Organization for Standardization – www.iso.org) as ISO/TS 16949:2002, Quality management systems – Particular requirements for the application of ISO 9001:2000 for automotive production and relevant service part organizations 1). A technical specification, ISO/TS 16949:2002 incorporates the verbatim text of ISO 9001:2000 plus automotive-specific requirements in areas such as employee competence, awareness and training, design and development, production and service provision, control of monitoring and measuring devices and measurement, analysis and improvement. Automotive manufacturers accounting for 80 % of vehicle sales around the world plan to migrate their suppliers to the new requirements by December 2006. At the time of writing this article, the technical specification has been rolled out – or is in the process – throughout North and South America, Europe, Asia and Africa, including the following countries : Argentina, Australia, Austria, Brazil, China, France, Germany, India, Italy, Japan, Korea, Mexico, Spain, the United Kingdom and the United States. We worked through ISO’s consensus process and relied on IS0 9000 as a foundational document not only because it represents a global model for quality management systems, but also because the core requirements of ISO 9001:2000 are consistent with Original Equipment Manufacturer (OEM) – the automobile manufacturers – quality requirements in the automotive industry. It was extremely helpful to use an ISO document as a starting point rather than having each OEM start with its own company-specific ISO Management Systems – May-June 2003 requirements. We found the standard to be much improved over the 1994 edition in that it is geared toward the way a company does business, not whether you have “ this paperwork and that paperwork ”. It’s more user friendly too. ISO 9001:2000 recognizes that each and every company is a little unique because each one does things in a different way. Over the next three years, the transition to ISO/TS 16949:2002 will affect thousands of supplier companies in every corner of the globe. In North America, the “ Big Three ” automakers – DaimlerChrysler, Ford and General Motors – have all agreed to transition their suppliers that had previously been subject to the requirements of the third edition of QS-9000 to ISO/TS 16949:2002 no later than December 2006 – and possibly sooner on a company-by-company basis. As you might expect, this decision will require considerable third-party auditing resources. Not wanting to interfere with the December 2003 deadline for companies to transition to ISO 9001:2000, the Big Three have entered into a special agreement with ISO, allowing the industry to continue to use the 1994 requirements of ISO 9000 in the QS-9000 document until December 2006. Supply base Each automotive OEM subscribing member of the IATF will provide specific direction to its supply base in the coming months. To date, the suppliers that will be impacted by ISO/TS 16949 are primarily direct manufacturing suppliers to BMW, DaimlerChrysler, Fiat, Ford Motor Company, General Motors Corporation, PSA Peugeot Citroën, Renault and Volkswagen. In Europe, Fiat requires compliance to ISO/TS 16949:2002 for new suppliers and renewals. PSA Peugeot Citroën will no longer recognize certification to ISO/TS 16949:1999 and to the French automotive sector quality specification EAQF-1994 from 15 December 2003. SPECIAL RE PORT From that date, certification to ISO/TS 16949:2002 will be the sole quality management system requirement for the first tier mass production suppliers to PSA Peugeot Citroën with transition deadlines of 1 July 2004 (for current EAQF-certified suppliers) and 15 December 2004 (for ISO/TS 16949: 1999-certified suppliers). Also in Europe, BMW requires compliance only, while Renault recently announced that its suppliers are required to be certified to ISO/TS 16949:2002 by 1 July 2004. Suppliers who are already registered to the first edition have until the end of 2004 to comply. DaimlerChrysler, the world’s number five automaker, has announced that it is requiring third-party certification of key suppliers to ISO/TS 16949:2002 by 1 July 2004. Counting the European programmes, we estimate that the newly combined automotive market represents more than 30 000 third-party certificates. In comparison, about 22 000 third-party certificates have been issued throughout the world to QS-9000. Having participated in the IATF meetings on behalf of Daimler Chrysler, I can say without hesitation that this technical specification is a value-adding document for the automotive sector. The process for completion was fast and involved participation by OEM’s, suppliers and experts from ISO Technical Committee ISO 176, which is responsible for the ISO 9000 family of International Standards for quality management. We believe that this technical specification, when coupled with its accompanying registration/certification scheme, has significant benefits for the suppliers to whom it is applicable, and for subscribing OEM’s. First published in 1999, ISO/TS 16949 represents the collaborative efforts of not only the aforementioned OEM’s, but also supplier trade organizations like the Automotive Industry Action Group (AIAG – USA, www. aiag.org), Associazione Nazionale Fra Industrie Automobilistiche (ANFIA – Italy, www.anfia.it), Fédération des Industries des Équipements pour Véhicules (FIEV – France, www.fiev. fr), Society of Motor Manufacturers and Traders (SMMT – United Kingdom, www.smmt.co.uk) and Verband der Automobilindustrie-Qualitätsmanagement Center (VDA-QMC – Germany, www.vda-qmc.de). The 2002 edition of ISO/TS 16949 also reflects participation by the Japan Automobile Manufacturers Association Inc. (JAMA, www.japanauto.com). Robust Over the next three The involvement of OEM representatives, supplier trade organizations, JAMA and ISO TC 176 resulted in a robust automotive sector ISObased document and certification scheme. The process was developed through a high level of expertise and in remarkably short order. The goals of common process development and implementation, auditable quality management system requirements and an ISO-released technical specification by early 2002 were clearly met. So far, there are no planned supplements to ISO/TS 16949, such as the Tooling and Equipment supplement for QS-9000, but they are expected by the 2006 expiration of QS-9000. Meanwhile, those suppliers subject to supplements should continue with their present certifications. In North America, we are trying to ramp down QS-9000 as we ramp up ISO/TS 16949:2002. The Supplier Quality Requirements Task Force, years, the transition to ISO/TS 16949:2002 will affect thousands of supplier companies in every corner of the globe ISO Management Systems – May-June 2003 21 SPECIAL RE PORT We estimate that the newly combined automotive market represents more than 30 000 third-party certificates 22 which administers QS-9000, has no plans or interest in updating QS9000. This includes sanctioned interpretations and customer specifics. Among the most visible changes for existing QS-9000 certificate holders will be the new process-based approach of auditors, a more rigorous approval process for third-party certification bodies and additional emphasis on meeting customer requirements as measured by delivered part quality performance, customer disruptions, delivery schedule performance, including incidents of premium freight and special status customer notifications related to quality or delivery issues. Suppliers will be expected to take more responsibility for assuring that auditors have the proper tools to do better audits under the new system. Every supplier must provide auditors with current customer ratings prior to each audit along with a list of customers, performance data from the previous 12-month period, a list of internal auditors and internal audit results. Unlike some QS-9000 audits in the past, where auditors relied on checklists, ISO/TS 16949 auditors use checklists only to verify the completeness of their audits. They are expected to use control plans, failure mode effect analysis and part approval rates as a vehicle for their audits and to verify that customer specific requirements are being met. In the past, the lack of emphasis on customer specific requirements was a major concern of OEM’s. Another key difference from QS9000 is in the area of scope. Only organizations that add value to the manufacturing process of a subscribing OEM may be awarded standalone certification to the new requirement. While functions such as ISO Management Systems – May-June 2003 sales, purchasing and engineering may be listed as supporting organizations, they are not eligible for separate ISO/TS 16949 certification. The second edition of ISO/TS 16949 permits the certification of assembly plants. As a result, elements of each of the Big Three are now pursuing certification. Correct past problems We have been concerned about inconsistencies among third-party audit practices since the first edition of QS-9000 was rolled out in 1994. Consequently, many of the differences in the ISO/TS 16949 registration/certification process are intended to correct past problems that resulted in too many instances of questionable audits. The new document provides for continual improvement, while emphasizing defect prevention and the reduction of variation and waste in the supply chain. Only registrars (certification bodies) contracted with one of the five regional IATF oversight offices established in France, Germany, Italy, the United Kingdom and the United States (see box “ Managing the ISO/TS 16949 certification scheme ”) may issue IATF-recognized thirdparty registration certificates in accordance with ISO/TS 16949 to eligible supplier organizations. IATF oversight offices have intentionally approved fewer registrars under ISO/TS 16949. We felt that the 174 registrars accredited to issue QS9000 certificates were a bit more than we could manage comfortably. In addition to IATF approval, certification bodies must also hold accreditation to issue ISO 9001:2000 certificates from a recognized national body in their country of origin. As a rough estimate, in the case of QS-9000, the transition to ISO/TS 16949 can be expected to take anywhere from three to six months depending on the state of the existing QS-9000 system and the amount of resources applied to the effort. SPECIAL RE PORT We expect that ISO/TS 16949:2002 will become the common and unique basis for the automotive industry's quality management system requirements worldwide, gradually replacing the multiple national specifications now used by the sector (e.g. QS-9000, AVSQ, VDA6.1 and EAQF). The second edition of ISO/TS 16949 also requires that direct product-manufacturing suppliers to the organization have their quality system in step with the organization seeking compliance to the technical specification. This essentially means the organization’s direct productmanufacturing suppliers need to have in place a robust development programme aimed at achieving conformity with ISO/TS 16949. There are a number of steps to be considered, including conformity to ISO 9001:2000 as the first, followed by registration to ISO 9001:2000, unless otherwise waived by the customer. Although there is no specific date for achievement, audit findings will likely be based on a defined plan and its effective implementation. A binding interpretation of QS9000, which became effective on 1 July 2001, contains a similar requirement for subcontractors but permits compliance to the 1994 edition of the QS-9000 standard, or registration to a current version of the ISO 9000 standard, with which many subcontractors already comply. Each of the subscribing automotive manufacturers has agreed to accept ISO/TS 16949 certification from suppliers in lieu of potential additional second-party or third-party assessments. Each OEM reserves the right to also impose customer-specific requirements in addition to the ISO/TS 16949 requirements document. In the case of the Big Three, each of the car companies has its own customer-specific requirements. One of the strengths of the new technical specification is that it is aligned with the process-based approach of ISO 9001:2000. We have enhanced the process approach in an automotive context. This enhancement reflects consistency with the way automotive companies in the supply chain operate. The focus on product realization and the process approach is the way we do business. I think there was legitimacy to the complaint that the quality system audit was too oriented to procedures based on an elementby-element assessment. What we have here is an approach that sets up an audit trail based on the line of sight from the agreedupon customer requirements to the operator instructions, and back to what was delivered to the customer. It is a better correlation with the way in which manufacturing product businesses operate. As a rough estimate, in the case of QS-9000, the transition to ISO/TS 16949 can be expected to take anywhere from three to six months Managing the ISO/TS 16949 certification scheme To implement and manage the ISO/TS 16949 registration/certification scheme oversight activities, the IATF established the International Automotive Oversight Bureau (IAOB). Based in Southfield, Michigan, USA, the IAOB manages and coordinates with four European regional offices to ensure consistency of ISO/TS 16949 certification and to support the IATF in the pursuit of global harmonization with other automotive manufacturers. The IAOB is also responsible for developing and maintaining a central IATF database of strategic information in support of the certification scheme. ! International Automotive Oversight Bureau (USA) E-mail quality@aiag.org Web www.iaob.org· ! CCFA (France) E-mail technique@ccfa.fr Web www.iatf-france.com· ! VDA-QMC (Germany) E-mail info@vda-qmc.de Web www.vda-qmc.de· ! ANFIA (Italy) E-mail servizi.qualita@anfia.it Web www.anfia.it · ! SMMT E-mail quality@smmt.co.uk Web www.smmt.co.uk/iatf-uk ISO Management Systems – May-June 2003 23 SPECIAL RE PORT Management systems in the automotive sector Is certification paying for automotive manufacturers? BY T REVOR D AVIES Head of System Certification Operations, VCA. As the United Kingdom's approval authority for new road vehicles and a supplier of product and management system certification services to the automotive sector worldwide, the Vehicle Certification Agency is well placed to provide this overview of the evolution of the use of management systems and certification in the sector. A s the automotive manufacturers and suppliers begin implementing the second edition of the technical specification ISO/TS 16949, ISO/TS 16949:2002, Quality management systems – Particular requirements for the application of ISO 9001:2000 for automotive production and relevant service part organizations it is the right moment to ask how well man- 24 ISO Management Systems – May-June 2003 agement system certification is serving the sector. We will begin with the Original Equipment Manufacturers (OEM’s) – OEM designates the manufacturers that actually supply the cars to the market. Automotive manufacturers have been subject to external assessment since the introduction of quality system standards. This began with second party 1) audits to SPECIAL RE PORT defence standards: the NATO AQAP seeking “ value for money ”, through series or, in the United Kingdom, the value-adding assessments that help Defence Standard 05 series, where satthem maintain disciplines and isfactory results were required in order improve their systems. to tender for new conIn the experience tracts. of the Vehicle Depending on the Automotive manufacturers Certification Agency type of product and (VCA), which has have been subject to the absence or not of issued certifications design responsibility, to the vast majority external assessment different levels of of United Kingdomsince the introduction of based vehicle manuAQAP were applicable. Interestingly, most quality system standards facturers, not all of passenger car manuthe latter structured facturers just needed their quality manto comply with the final inspection agement systems (QMS) around the requirements given in AQAP 9, with ISO 9000 clauses. Those that did so only OEM’s such as Land Rover and generally adapted their systems so Foden needing to comply with the that most of the intent of the 2000 highest level (AQAP 1) due to their version was already in place before design responsibility. the revised standard was published. For OEM’s, it was a change in the The system put in place in the early United Kingdom Ministry of Defence 1990’s by Rover, for which the compa(MoD) policy in the early 1990’s that ny sought ISO 9001 certification, was required them to seek third party cerbased around a one-page set of policy tification 1) . At that time, the ISO statements which covered product, 9000:1987 series comprised the applipolicy, processes, people, customers, cable quality management system etc., with a matrix giving policy standards. deployment across the organization. For each policy, there were corporate owners responsible for the high level Move to certification procedures, with other relationships given as either “ Prime ”, “ OperationThis enforced move to certificaal ”, “ Functional ” or “ Support ”, as tion was readily accepted by the appropriate. Using the same philosoOEM’s who, in the vast majority of phy, this “ plan-on-a-page ” approach cases where they had design activities then cascaded down to each of the in Europe, chose to seek certification, operational and functional areas of including of their design activities, to the company. ISO 9001. These certifications have The system presented a challenge been maintained as the ISO 9000 to VCA, Rover’s certification body, series has evolved, with increases in as it required greater understanding scope and additional operations in of the company’s systems and a more many cases. flexible approach to the assessment. Both internal and external certifiThe basics of the system stayed in cation costs are high. In addition, the place until the purchase of Rover by OEM’s need to meet contractual BMW. By then, it had already incorrequirements that exceed the miniporated environmental management mum requirements for certification. and integrated system assessments Their efforts therefore represent were being carried out. more than a mere “ certificate on the Japanese manufacturers based in wall ”. It is also very important to the United Kingdom, who took a simdemonstrate to their own suppliers ilar approach to Rover, already had that they are prepared to meet the in place effective systems based on rigours of external assessment and sound processes. When ISO 9001: certification. But in all cases, they are 1) “ Second party ” refers to audits of suppliers carried out by their customers. “ Third party ” audits are carried out by specialized independent bodies. ISO Management Systems – May-June 2003 25 SPECIAL RE PORT Jaguar and Land Rover achieve European first Britian’s Vehicle Certification Agency (VCA) has issued ISO/ TS 16949:2002 certification to United Kingdom manufacturers Jaguar and Land Rover who are both part of Ford’s Premier Automotive Group. They are the first European vehicle manufacturers to achieve certification to the new global automotive quality system standard and the second worldwide. Recognition for the two organizations of their systems conforming to the latest version of the automotive sector scheme standard follows an intensive period of work covering not only the introduction of systems to meet the new requirements, but also at the same time as Jaguar’s launch of the new XJ model. ISO/TS 16949:2002 is now being accepted as the baseline for the automotive supply chain and its implementation by Jaguar and Land Rover demonstrates their confidence in it to provide business benefits. They have led by example to their suppliers in practicing what they preach. The certificates follow an intensive period of review not only of Jaguar and Land Rover by VCA, but also of VCA by the United Kingdom’s Society of Motor Manufacturers and Traders (SMMT). The SMMT is the oversight body in Britain for the ISO/TS 16949 certification scheme, appointed by the International Automotive Task Force (IATF), and VCA is one of handful of certification bodies in the country recognized to award certificates against the latest version of the ISO technical specification. VCA’s Chief Executive Derek Harvey (left) presents the ISO/TS 16949:2002 certificate and plaque of recognition to Jaguar and Land Rover’s Chairman and CEO Bob Dover. 26 ISO Management Systems – May-June 2003 2000 arrived, their approach was to demonstrate how their processes met the requirements, rather than align their system with the standard. With very few exceptions, the processes already adequately met the requirements and, in many cases, were exceeding them. For the Japanese, the main benefit of ISO 9000 was that it required discipline in terms of consistency, documentation and records. Toyota Motor Manufacturing UK is certified to ISO 9001:2000 and ISO 14001. Kirsty Allen, an engineer in their Quality Assurance (QA) division, comments : “ The standards are important sales assets. They provide another badge of confidence for our customers. We are impressed with the standard, which works well for us, although in some areas, such as process control, the ISO 9000:1994 series was better, as it was less fragmented.” Effective results For manufacturers that have used the ISO 9000 standard as their QMS structure, there have been excellent examples of policy deployments and, in all cases, very good, effective and measured results to drive the business forward. Whilst these results have usually been included in audits since the 1994 version of the ISO 9000 series, there is greater emphasis on them in ISO 9001:2000, although linking them to key processes is challenging both for manufacturers and auditors. Jaguar took an interesting approach to assessment and certification. Although starting, like all other manufacturers, with ISO 9000, Jaguar quickly recognized the additional benefits of adopting QS-9000 (the US automotive sector quality system requirement that includes ISO 9001:1994) as their internal standard. In particular, the company realized that improvements were available through adopting the QS-9000 core tools for quality planning and control plans, risk analysis, measurement systems and statistical control. In VCA’s SPECIAL RE PORT experience, the extent to which About VCA Jaguar implemented these tools was unique among vehicle manufacturers. The United Kingdom’s Vehicle Certification Agency (VCA) is a Moreover, while still a new acquileading certification body in the automotive sector and its sition by Ford and modest in size services are used by vehicle manufacturers worldwide. Offering compared to other parts of the both product and management system certification from its American corporation, Jaguar was offices in Britain, North America, Japan, Korea and Taiwan, VCA well positioned to try out different supports the needs of vehicle manufacturers internationally in approaches compared to Ford's selling their products in Europe. mainstream operations. Jaguar was one of the first parts of Ford to use As an executive agency of Britain’s Department for Transport the parent company’s latest product and as the United Kingdom’s national approval authority for new development process, then known as road vehicles, agricultural tractors and off road vehicles, it the “ World Class Timing Process ”. contributes to British Government and European policy formulaThis has now developed into the tion and enforcement of vehicle safety and environmental excellent Ford Product Development standards. System (FPDS). This system identifies design and development as being Vehicle Certification Agency (VCA), 1 The Eastgate Office Centre, one of the main causes of poor qualiEastgate Road, Bristol BS5 6XX, United Kingdom. ty and, in particular, a source of the Tel. + 44 (0) 117 952 4106. reliability problems that can be so Fax + 44 (0) 117 952 4104. harmful to the reputation of a vehicle E-mail enquiries@vca.gov.uk manufacturer. Web www.vca.gov.uk This is also an area that causes difficulty for auditors, who are not helped by the ISO 9000/QS-9000 requirements that are still primarily mandate them all, down to the secfocused on manufacturing. Jaguar, ond and even third tiers, to the same together with the later Ford acquisistandard. At what point does it break tion, Land Rover, continues to see the camel’s back ? ” benefits in management system standards and has recently been audited Legal compliance to ISO/TS 16949:2002, which it has implemented in addition to existing A quality management system ISO 14001-certified environmental worthy of the name needs to address management systems. legal compliance and, in the United John Hanson, Quality Strategy Kingdom, quality management sysand Audit Manager tem standards are for Jaguar and Land part of the mechaRover says : “ ISO/TS The standards are important nism for meeting 16949 is not only legal requirements sales assets. vital to us as an effecfor vehicle systems tive global quality They provide another badge and components. standard, but has tanThese legal aspects of confidence for our gible and measurable are an integral part business benefits. For of VCA’s responsibilcustomers example, while it is ities to the British not an absolute prerequisite for govGovernment for issuing vehicle ernment procurement, it is looked approvals. upon very favourably and, specificalThe first link between quality sysly, for United Kingdom Ministry of tem standards and legal requirements Defence contracts. Having said that, was made in the 1970’s with the need while it is essential for our suppliers for vehicle and component manufacto have in place a QMS, I’m not necturers to demonstrate they had in essarily convinced of the necessity to place satisfactory quality systems. At ISO Management Systems – May-June 2003 27 SPECIAL RE PORT 9001:1994 and added specific interprethat time, the defence standards were tations and tools required by the US used as guidance. Since then, not only automotive industry. has the guidance kept in step with The stated objective of QS-9000 quality management systems as they was to harmonize the fundamental have evolved, but ISO 9000 certificasupplier quality system requirements tion has also become an option and assessment tools. among the approval The Big Three also requirements specified in European Directives. The first link between intended to reduce their own second party audits Ian Antill, Manager, quality system of suppliers’ quality sysQuality Systems Assutems by relying on the rance, at Jaguar, comstandards and legal assurance provided by ments : “ We have cusrequirements third party audits cartomers in approximately 70 countries worldwide. was made in the 1970’s ried out by certification bodies, thus enabling Every one has its own them to concentrate relevant legislation, but their resources in other areas. ISO/TS 16949 is now accepted globally and helps to demonstrate conformity of production (COP) to product Very prescriptive legislation, which means that our QS-9000 consisted of three secproducts maintain the tions : the ISO 9001:1994 requirenecessary approval to ments, sector-specific requirements meet the legislative and customer-specific requirements. requirements of each In all cases, the requirements were country, for example in very prescriptive, describing not only exhaust emissions, brakwhat was required but also how it ing systems and seatshould be applied. The specific interbelts.” pretations gave the generic ISO 9000 Some suppliers, such an automotive slant which, together as manufacturers of seat with the core tools contained in the belts, safety glass, tyres related manuals, provided a sound and lamps, hold managebase for the quality systems required ment system certificaby the industry. tion in support of their The same philosophies were carried product approvals. In over into the third, and still current, general, however, they edition of QS-9000 where the (someseek certification because one or times confusing) “ Sanctioned Interpremore of their customers require it. An tations ” were incorporated. The stanearly example of this was when Rover dard also took into consideration the required ISO 9000 certification under requirements of the parallel European its RG-2000 quality scheme for moniautomotive sector standards, VDA 6 toring and developing its suppliers. (Germany), EAQF (France) and Within the automotive industry, AVSQ (Italy). This was done in anticthere was a general consensus that the ipation of the global automotive stangeneric ISO 9000 standards – the 1987 dard published in 1999 as technical and 1994 versions – did not fully meet specification ISO/TS 16949, of which the sector’s specific requirements, parapproximately 90 % was drawn from ticularly in respect of the component QS-9000 and 10 % from European suppliers on which the car manufacturstandards – mostly VDA 6.1. ers depend. This point was emphasized Through the evolution of the sepaby the US “ Big Three” – Daimlerrate regional requirements (QS-9000, Chrysler, Ford and General Motors – VDA 6.1, EAQF, AVSQ), through and led to their developing QS-9000. ISO/TS 16949:1999 to the latest Released in 1995, this included ISO 28 ISO Management Systems – May-June 2003 SPECIAL RE PORT really is forcing us to address every ISO/TS 16949:2002, there has been a aspect of our business.” move towards concentrating on the desired results and away from describing “ how to do it ”. While this has Cascading down allowed suppliers to adopt a more flexible approach, it has also led to the To emphasise the importance of need for them to incorporate a multithe standard “ cascading down” the tude of customer specific requiresupply tier chain, Malcolm Neill conments in their QMS. Although this firms that Visteon insists that its own need was always present to a lesser or suppliers also conform to ISO/TS greater extent, and such requirements 16949 : “ One standard for our suppliwere always liable to auditing by cerers enables us to meet the multiplicitification bodies, there are still some ty of requirements from the automodifficulties in understanding exactly bile manufacturers.” what are the expectations. ISO/TS His only reservation about the 16949 rules that all customer specific standard, echoed by some of the requirements must be covered by the other commentators, is that it is initial audit. The expectation is that sometimes over-prescriptive. He these are therefore incorporated into points out : “ Our customers, the the suppliers’ QMS, OEM’s, already have which are then subject to detailed lists of cusThere has been a move tomer specific requireaudit. This is satisfactory for towards concentrating ments which are over the likes of the Big and above those in the Three, whose Failure on the desired results standard. The standard Mode and Effects could reflect that.” and away from Analysis (FMEA) issued Customer specifics by the Automotive are not the only chaldescribing Industry Action Group lenges when applying ‘ how to do it ’ (AIAG) is common to certification to automoFord, General Motors tive suppliers. There are and DaimlerChrysler and therefore a number of issues that are being tackapplicable to all their suppliers. led to make the process more effecHowever, German manufacturers tive : specify a system FMEA based on Firstly, the accreditation bodies VDA 4, which differs from the AIAG that approve the certification bodies document. These matters are imporas competent were not themselves tant, not only for the audit process, but seen to be fully effective in the eyes more importantly for the suppliers, of the OEM’s. As a result, the who need to operate systems that meet International Automotive Task Force the requirements of all their cus(IATF) has taken overall control and tomers. appointed a number of oversight The views of a major component offices to fulfil this role for ISO/TS manufacturer like Visteon are also 16949 certification. relevant. Malcolm Neill, Visteon’s Secondly, some certification bodies Quality System Manager, Europe, is were also judged by the OEM’s not to in no doubt about the importance of be fully effective which, added to a the latest version of ISO/TS 16949: certain lack of confidence in third “ Quite simply, possession of ISO/TS party certification itself, has led to dif16949 is a pre-condition of doing fering levels adopted by OEM’s, some business – it’s really an operating sysof which require certification, whilst tem. It gives us an opportunity to others look for conformity only. achieve a level of capability in the Variation in the competence of certifieyes of our customers, the vehicle cation bodies was the main reason manufacturers. The latest standard why the OEM’s took direct control ISO Management Systems – May-June 2003 29 SPECIAL RE PORT through the appointed oversight offices. Their plans now include a driving licence-type points system being introduced to provide a measure for the performance of certification bodies. Thirdly, there is also variation among suppliers in respect of both the understanding and application of core tools. The situation has not been helped in some cases by the OEM’s not working in partnership. Examples are late design changes and refusal to accept responsibility after having “ moved the goal posts ”. The arrival of the Japanese plants on British soil was to have far-reaching consequences for the British automotive industry, whose image had not been helped by years of industrial unrest and the unflattering parts per million (ppm) reject levels of components from United Kingdom suppliers, compared with those from Japan. But against this backdrop, the Japanese original equipment manufacturers were committed to using a progressively higher level of components and sub-systems being sourced from within Europe. Total business systems The common structure and similar purposes of ISO 9001 and ISO 14001 are making it easier for total business management systems to be developed 30 Finally, the current rules on nonconformities by suppliers can automatically result in probation and delisting. This can lead to suppliers showing a lack of transparency in their dealings with certification bodies and a tendency to take ineffective shortterm measures to deal with nonconformities, instead of developing robust solutions to prevent recurrence. Another initiative to improve supplier performance has been the Society of Motor Manufacturers & Traders (SMMT) Industry Forum that followed the arrival in the United Kingdom of Japan’s three automotive manufacturing giants to supply the European market. Honda set up its first plant in Swindon, Wiltshire, in 1985 ; Nissan began production in Sunderland, Tyne and Wear in 1986 ; and Toyota’s operations commenced in Burnaston, Derbyshire and Flintshire, North Wales, in 1992. ISO Management Systems – May-June 2003 Despite a measure of disagreement by both OEM’s and suppliers on certain aspects of certification, the common structure and similar purposes of ISO 9001 and ISO 14001 are making it easier for total business management systems to be developed, together with integrated audits. This is meeting the increased demand from clients, not only to reduce certification costs, but also their own internal costs to support the audits. Kirsty Allen, of Toyota, would like to believe it possible for the two ISO management system standards, ISO 9001 and ISO 14001, to merge eventually into one joint standard, commenting, “ The environmental perspective will become increasingly important. But we also believe that the guidelines for improvement in ISO 9004 will also become more important.” With an improved understanding between all the parties involved, this will lead to improved relationships being established and a robust and respected certification system that will benefit all stakeholders. SPECIAL RE PORT Management systems in the automotive sector How Japan’s car manufacturers rate ISO 9000 and ISO 14000 BY H ITOSHI S ASAKI ISO Management Systems is particularly excited to be able to offer readers a rare insight into the attitudes of Japanese car manufacturers towards management system standards. In a sector which is coming to terms with major change, ISO 9000 and ISO 14000 are seen as potentially useful tools in supplier evalution, particularly in global procurement. At the same time, whether the requirement is quality or environment-related, Japan’s manufacturers insist on proof in the product. Status symbol becomes necessity In Japan in the 1960’s, the motor car was considered to be a luxury item and if a family had a car, it had the value of status symbol, denoting the family as rich. Today, cars are becoming an absolute necessity for almost everyone and the norm in some of our cities may even be approaching one car per adult. Japanese car manufacturers no longer rely, therefore, on cars selling as long as they are of high quality (what is known as the “ product out ” strategy). They have now started focusing their attention on specific customers and catering to customer needs and demands (“ market in ” strategy). This customer-oriented approach also forms the basis of the management system in its current evolution. In contrast to the past, when the car was a status symbol – almost an Hitoshi Sasaki is Director, Quality Management Bureau, Management Systems Sector, of the Japan Quality Assurance Organization Japan Quality Assurance Organization (JQA), ATT-Akasaka Twin Tower Building, 2-17-22 Akasaka, Minato-ku, Tokyo 107-0052, Japan. Tel. + 81 3 3584 9123. Fax + 81 3 3224 9002. E-mail h-sasaki@jqa-iso.com Web www.jqa.jp ISO Management Systems – May-June 2003 31 SPECIAL RE PORT ornament – customers today want a The Japanese automotive car that is both attractive and practisector today cal. The key point is whether they In the highly competitive global have a feeling of satisfaction that market, even Japanese car manufacmakes the investment worthwhile. turers are forced to accept foreign Customers selecting branded cars by capital or collaborate with leading reputed manufacturers is on the overseas competitors. Such research decline. On the contrary, it is not and development collaborations unusual for customers today to automatically lead to more varieties choose a car from a new manufacturof product and thus er as long as it meets enhance the capacity to their requirements. What, therefore, is It is important to build develop new models, including energy-saving “ an attractive car ” a solid management cars. Moreover, as a today ? The answer lies in the correlation system that can cope result of standardizing components, joint purbetween satisfactory with any situation chasing, standardizaperformance/function tion/expansion of sales and the price. Car mannetworks, cost reduction and an ufacturers must undertake various increase in sales capacity can be measures to achieve competitive expected. pricing, while simultaneously improvThe production base is likely to be ing the performance/function. shifted to Southeast Asian countries Developing cars with beneficial such as China, where labour is cheap, features alone in order to achieve overall cost is not enough. reduction. There may be a concomiCar manufactant increase in the local (on-site) turers will be procurement rate of components and compelled to the finished goods will be re-importtake systematic ed to Japan. Alternatively, the proaction that may duction base may be transferred to a affect the country that was originally an export organization of destination, and the transportation existing mancosts and exchange risks will be elimagement sysinated. tems. In fact, However, new issues have now car manufaccome into play. Collaborations with turers underother companies have led to greater take cost-reduction activities need for the establishment of a comthroughout companies, constantly munication method to share informaracking their brains in collaboration tion and to convey accurate/rapid with all employees (including shopinformation. Moreover, with the floor workers) to develop processes transfer of production operations that produce quality cars with the overseas, it also becomes necessary to most rational design at low cost. establish a supply chain management In addition, it is important to system that includes components/mabuild a solid management system terial manufacturers. that can cope with any situation. In order to preserve the core of Manufacturers must also contemJapanese industry, a precise division plate how to create a mechanism that of labour between the Japanese factopromotes improvement throughout ry and the local factory, as well as a companies on a permanent basis. mechanism to promote the high added value of Japanese factories, will be important while ensuring the 32 ISO Management Systems – May-June 2003 SPECIAL RE PORT Japanese hallmarks of kaizen (improvement), and traditional knowhow. The sector’s attitudes towards ISO 9000 kaizen, “ mistake proofing ”, and “ first-in first-out (FIFO) ” that originated in Japan, where they have been in practice for a very long time. The Japanese term kaizen has been adopted globally, and is used more commonly than the English term “ improvement ”. Moreover, each company has its own levels of requirements for suppliers. While some car companies expect suppliers to obtain ISO 9000 or QS-9000 third-party certification, others require only voluntary conformity to standards and do not enforce certification. The most important point here is the choice of a way to cope with the above issues. For most Japanese automotive component suppliers, the way chosen is to implement ISO 9000 or QS-9000 Quality System Requirements developed by the American “ Big Three ” automotive manufacturers. QS-9000 is based on the ISO 9000:1994 family and incorporates requirements specific to the automotive industry. A future option is ISO/TS 16949, Quality management systems – Particular requirements for the application of ISO 9001:2000 for automotive production and relevant service parts organizations, which is being Collapse of the Keiretsu implemented worldwide, including by European car manufacturers. One aspect in which Japanese car However, the present uptake of manufacturers differ from their ISO 9000 by Japanese car manufacWestern counterparts is in the existurers has been rather unspectacular tence of a unique supply chain called compared to that of other industries, Keiretsu. This means that one final and the manner of its adoption is difassembly car manufacturer forms the ferent from company to company. apex, while many subcontractors On the one hand, there have been known as Keiretsu form tiers under it. companies that have gone ahead with They are usually subsidiaries of a the introduction of the standards in major car manufacturer for whom the belief that if certithey tend to work fication to standards exclusively. The present uptake of in the ISO 9000 family The car manufacis obtained, they will turer provides leaderISO 9000 by Japanese benefit from a partial ship for the subconcar manufacturers exemption of the factractors and depends tory audits carried out on them for procurehas been rather by customers as part ment of most of their of the latter’s product unspectacular compared to components. Such a audits. system succeeded in that of other industries On the other hand, nurturing long-term since the QS-9000 or trust and reliability ISO/TS 16949 requirements have that transcended the need for a contract between the two parties, leading already been adequately met by the to mutual cooperation in times of Japanese automotive industry, some boom and recession alike. The system companies do not consider it neceshas thus greatly contributed to the sary to introduce these standards. In production of high-quality cars under fact, the requirements of these stanthe “ umbrella ” of leading companies. dards reflect many techniques such as ISO Management Systems – May-June 2003 33 SPECIAL RE PORT Lately, however, cracks have In this new context, obtaining ISO appeared in the Keiretsu unity. With 9000 certification serves as an objecthe inflow of foreign direct capital tive demonstration of quality and a investment, there has been a corremeans of attracting customers. sponding influx of “ rational ” busiOptions are thus increasing for ness models of the European and component/material procurement, American styles. This development although procurement of specific can be attributed to the adverse components or materials tends to foleffects of total dependency on the low a pattern. The patterns include Keiretsu – especially during a receswhether it would be better to pursion, when manufacturers are comchase a material globally and send it pelled by necessity to curtail procureto a production base, or whether it ment costs. would be better to have local (onAt such site) procurement at a production times, having a base, or have it produced in Japan if it wide range of is an essential component. ISO 9000 competent supmay be also be used as a standard to pliers available evaluate these options. outside the Keiretsu makes Results-oriented approach it possible to select the most It can therefore be seen from the competitive. above that the Japanese automotive ISO 9000 stanindustry has also adopted global standards may be dards for quality assurance and quality used as the management systems. However, it is evaluation standard for that selecimportant to remember that Japanese tion. ISO 9000 enables manufacturers car manufacturers strongly support a to determine whether the subconresults-oriented approach. Having a tractors have introduced and are good management system is not, of applying a managecourse, contradictory ment system – and one with obtaining good based on global stanISO 9000 has proved to be results in terms of dards. ISO 9000 has quality and achieveproved to be quite use- quite useful in evaluating ments. But when ful in evaluating subresults are bad, the subcontractors with contractors with which manufacturer’s evaluathe manufacturer has which the manufacturer tion will not be positive never done business even if the procedure has never done business or mechanism is good. before. Suppliers too are No matter how before not content with their many ISO 9000 and Keiretsu experience. ISO 14001 certificaPreviously, the choice of suppliers tions are obtained, Japanese car manavailable to car manufacturers was ufacturers believe that certification limited and so suppliers enjoyed stadoes not necessarily guarantee prodbility of orders. Henceforth, if they uct quality because it is only a miniare trustworthy, the chances of mum requirement. In their view, what receiving orders from other car manis important is a confident manufacufacturers outside the Keiretsu are turer with a sense of responsibility in getting higher. If they do not have realizing the production of excellent such a good reputation, the fear is cars under a thorough management growing of being deserted even by system. car manufacturers who have dealt This philosophy is recognized not with them in the past. only in Japan, but also by car manu- 34 ISO Management Systems – May-June 2003 SPECIAL RE PORT facturers all over the world and is sometimes be cleaner than the surtaken into account in the QS-9000 rounding air. A next step is the techand ISO/TS 16949 requirements. This nological development whereby the explains why requirements related to exhaust gas itself will not be dis“ Performance ” are included in both charged. QS-9000 and ISO/TS 16949, even Moreover, the approach by manuthough absent from facturing plants difthe ISO 9000 family. It fers somewhat to that can even be said that The number is growing of of automobile retail this viewpoint is especar manufacturers obtaining outlets. For example, cially strong in Japan. the factories make efforts in the area of ISO 14001 certification “green procurement” Attitudes towards ISO in order to prove that they to conserve resources 14001 have fulfilled their 'social and to reduce the impact on the enviNow let us consider responsibility' ronment of waste; the approach of suppliers are comJapanese car manufacpelled to obtain ISO 14001 certificaturers towards ISO 14001. It seems tion, etc.. That that the number is growing of car said, the retail outmanufacturers obtaining ISO 14001 lets too are adoptcertification in order to prove that ing a multi-faced they have fulfilled their “ social approach to proresponsibility ” and thus raising the tecting and imcompany image. proving the enviThe Japanese automotive industry ronment with the considers that “ the car itself is an drawing up of an environment ”. In this light, an awareindependent ness of the need for “ developing an “ Green Charter ”, environment-friendly product (the based on ISO car) ”, seems to be stronger than 14001. building an environment-friendly ISO 14001 will mechanism (the management sysbe also be used as tem). a tool in the process of developing At present, cars that minimize the the car as “ an environmentally use of natural resources and the disfriendly vehicle ”, or in some cases, as charge of exhaust gas emissions are “ an environmentally friendly object ” being actively developed. These for 100 % recycling. Based on these include Low Emission Vehicles concepts, cars will be further devel(LEV’s) such as methanol-fuelled oped as environmentally friendly cars, natural gas (CNG) cars, and products in future. hybrid cars. There are also developments going a step further with Zero Emission Vehicles (ZEV’s), such as Future evolution fuel cell cars. Now I will turn to my views on the Technologies in these cars have evolution of the future business envibeen upgraded to such an extent that ronment of Japanese car manufacturthey impact the environment posiers and its repercussions on managetively, rather than merely minimizing ment system standards. the adverse effects on the environThe first point to take note of is ment. The more a car is driven, the the huge potential of China. Not only more the environment is improved, does China, with population of 1,300 especially in areas where terrible polmillion, offer enormous sales possilution has occurred. In other words, bilities, but in addition its labour the gas discharged from a car could ISO Management Systems – May-June 2003 35 SPECIAL RE PORT costs are cheap (about one-tenth The most important point is not those of Japan). The production base merely to operate the quality manwill therefore shift to China and the agement system, but to raise effecsales network there is being strengthtiveness by doing so. If the requireened. These trends are expected to ments related to the product are not continue in the future. fulfilled, Japanese The next point is manufacturers will ISO 14001 will be also be that there have been an often visit the subconincreasing number of tractor directly to recused as a tool in the partnerships between tify the problem – domestic and overseas process of developing the which may even groups. One such trend car as ‘ an environmentally include modifying is that car manufacturtheir processes – friendly vehicle ’ ers who had up to now rather than request been rivals join forces voluntary corrective to develop LEV’s. Another is that actions through the management syscompanies with no experience in light tem. motor vehicles tie up with the leading It may be a harsh statement to manufacturers and expand their busimake, but it should be noted that at ness into production and sales. present, Japanese car manufacturers In view of these trends, the necesare just not satisfied with subcontracsity to spread the implementation of tors obtaining QS-9000 or ISO/TS management system standards as a 16949 alone – not to mention ISO means of evaluating suppliers and 9000 certification. The future will sharing informaclarify, in response to the evolution of tion will probaQS-9000, ISO/TS 16949 and other bly increase. In such standards, just how far Japanese such a case, car manufacturers will go in adopting selecting subthe standards for evaluating subconcontractors by tractors. specialized stanLast but not least, third party dards for the auditors in the Japanese automotive automotive secsector will be required to conduct tor, QS-9000 or what is known as “ an utmost care ISO/TS 16949, audit ”, which is similar to a second will probably party audit as currently carried out prove to be on suppliers by the car manufacturadopted more ers. This can be described as auditing widely by the manufacturing base for “ a more than satisfactory ” level than ISO 9000. that reveals attentiveness to the cusHowever, we have seen that many tomer’s every need, included implied Japanese car manufacturers are still ones. evaluating subcontractors on the In more colourful language, basis of requirements specific to each Japanese car manufacturers will company and not just by the global expect their suppliers to be so standards (ISO 9000 family/QSattuned to the customer’s need that 9000/ISO/TS 16949, etc.). As menthey will know when he has an itch on tioned previously, it is necessary for his back that needs scratching, just by the purchasing company to see the expression on his face. whether the requirements for prodAs a country often attributed with uct (quality, cost, delivery date and having had a certain role in “ inventtime) are fulfilled. This objective goes ing ” the modern quality movement, beyond satisfying the requirements Japan places the bar very high. related to the quality management system. 36 ISO Management Systems – May-June 2003 SPECIAL RE PORT Management systems in the automotive sector Finland’s Volvo network and the environment benefit from country-wide ISO 14001 certification BY Teemu Kemppi, technician at Bilia Kaivoksela, sorts used paper-based air filters and metal-based oil filters into separate disposal/recycling containers, as part of the company’s ISO 14001certified environmental management processes. M ATTI S OVIJÄRVI The author, Matti Sovijärvi, is a freelance journalist who writes for Volvo Auto Oy Ab, and for industry journals. While the motor car has a major impact on the environment, car dealerships also generate substantial waste from servicing and repairs. However, Volvo Auto, Finnish importer of Volvo cars, and its large dealer, insurance and finance network, has implemented an organization-wide ISO-14001 environmental management system, resulting in significant waste reduction, increased recycling, and benefits to the bottom line. V olvo Auto Oy Ab 1), exclusive Finnish importer of Volvo cars, and all Volvo retailers in the country have become the first of such motor trade networks to receive ISO 14001 environmental management system (EMS) certification. Encompassing some 50 subsidiary retailers, private authorized dealers and associated insurance and finance companies, they are also the first in Volvo’s global organization to achieve the distinction. 1) Volvo Oy Ab, Public Relations, Taivaltie 1. FIN-01610 Vantaa, Finland. Tel. Fax E-mail + 358 9 5044 5326. + 358 9 566 8972. msuursoh@volvocars.com ISO Management Systems – May-June 2003 37 SPECIAL RE PORT Mikko Laurinus, Manager of the Bilia Volvo dealership, was able to incorporate stringent ISO 14001-based requirements covering service and repair operations, as well as waste handling, into the design of the company’s new auto centre in the Helsinki suburb of Herttoniemi. Ari Kettunen, of Volvo Auto dealer Bilia Herttoniemi, Helsinki, drains used engine oil from a vehicle prior to environmentally responsible treatment and disposal in accordance with the company’s ISO 14001-based management system. 2) Lloyd’s Register Quality Assurance (LRQA), Aleksanterinkatu 48 A, SF-00100 Helsinki, Finland. Tel. Fax E-mail Web 38 + 358 9 4761 4461. + 358 9 4761 4471. helsinki@lrqa.com www.lrqa.com entire life cycle of the Volvo S80 has The successful network-wide audit been ISO 14001-certified in Finland. and certification process was carried out by Lloyd’s Register Quality Assurance 2). A joint effort For decades, concern for the enviMikko Laurinus was one of the ronment has been one of Volvo’s core instigators of the EMS certification values. As far back as the 1970’s, programme while still a local managVolvo’s then CEO, Per Gyllenhammar, er for the importers, Volvo Auto. He declared that the time for apologies now heads the large, was over and that the modern Bilia garage motor industry had to shoulder its responsi- For decades, concern for owned by a Volvo bility for the environ- the environment has been dealer in Helsinki. “ Towards the end ment, in addition to one of Volvo's core values of the 1990’s, we comsafety. mitted the entire But the environFinnish Volvo organization to the mental impacts of a motor car are environmental programme, specifiextremely complex, and involve the cally to obtain internationally recogproduct life cycle from manufacture nized ISO 14001 certification – one of to retail sales, and from servicing to the most difficult certificates to final disposal. obtain,” Mr. Laurinus says. In his Volvos were among the first priview, other environmental certifivate cars fitted with catalytic convertcates, such as that issued by the ers, a new technology that reduced Finnish vehicle trade lobby, AKL, set emissions radically. The first convertmuch less severe demands on compaers cut noxious nies and their activities. exhaust emissions “ The AKL certificate is definitely by as much as a step in the right direction, and a 90 %, while the good start for companies that had not latest versions are previously shown concern for the able to reduce environmental impacts of their activeven these levels ities, but it is only a stepping stone to by a significant achieving the more exacting ISO amount. 14001 certification,” he asserts. Volvo’s misFrom the very beginning of consion to investigate struction of a new garage in the the environmenHelsinki suburb of Herttoniemi, Mr. tal impact of the Laurinus was able to incorporate motor car began stringent ISO 14001-based requirein the 1970’s with the development of ments covering service and repair production processes that would put a operations, as well as waste handling. minimal burden to the environment. One example was the changeover to water-soluble paints far less polluting Investing in the future than previously used. Another achievement has been Mr. Laurinus emphasizes that the “ cradle to grave ” cycle, from prowhile meeting ISO 14001 standards duction to dismantling and recycling required a major effort, it was a sensiprocesses, for the S80 model, also ble investment in the future. Adopting awarded ISO 14001 certification. the necessary working practices Every plastic component, for exammeant training staff and investing in ple, is marked by polymer type so the facilities and equipment, but mainmaterial can be recycled. In effect, taining the EMS is now no more diffiwith certification of importation, cult or costly than running a less envirepair and servicing processes, the ronmentally aware operation. ISO Management Systems – May-June 2003 SPECIAL RE PORT However, he points out that it heightened not only in the real world, would not have been possible to but also in the way people think. obtain ISO 14001 certification withThat’s why we are convinced that out the enthusiastic commitment of investing in the environment is the entire workforce. “ We had to be extremely worthwhile, especially in very sincere about working to protect the long term.” the environment, by demonstrating Mr. Laurinus emphasizes that our serious commitment to the exactenvironmental legislation will only ing standard right from the beginbecome tougher and that companies ning. in the automotive business will face “ Having made the initial effort to increasing demands to reduce polluimprove job practices, we discovered tion. “ It is better to take action that it takes about the same effort to before we are forced to do so,” he throw waste into a heap, for example, maintains. as it does to separate the materials as “ Many Volvo dealers and service soon as we create them. It’s mainly companies are private firms, for about assimilating the working methwhom ISO 14001 certification meant ods, and these can be seen now in our a significant initial outlay. Even so, all everyday routines,” Mr. Laurinus dealers committed themselves to the explains. process at a very early stage. We all “ It’s mainly a matter of principle want to play our part in helping the – ‘do as you say’. As an international environment – as well as being sucorganization, Volvo is committed to cessful car dealers in the future, too.” taking care of the environment and we must demonstrate our involveCaring for car and environment ment by actions as much as words,” he says. But he points out that A car dealership places a surprisbesides involvement and investment ingly large burden on the environtoday, it is also necessary to pay ment, mainly as a result of servicing attention to the long-term effects of and repairs. A major dealership like caring for the environment. Bilia can produce as much as two “ Our customers are extremely tonnes of waste per day, most of well versed in environmental matters which can be recycled or used to proand many of them are deeply conduce energy. cerned about such “An important part issues. For example, of our environmental forestry companies We committed the entire work is developing the are important clients Finnish Volvo organization right methods of of ours and they often measurement,” comrequire their suppliers to obtain internationally ments Hannu Sinisalo, to have the same enviwho is in charge of recognized ISO 14001 ronmental certificaBilia’s environmental certification tion as themselves. affairs. “ We have 22 “ We have also different waste catetrained our sales staff to raise envigories and we are able to monitor the ronmental issues in their discussions progress of each. We know precisely with customers. Private buyers and what should be recycled, treated as their families are also interested in hazardous waste, or put on the landthe environmental effects of cars,” fill.” Without appropriate measurenotes Mr. Laurinus. “ We could not ment techniques, he notes, it would even talk about these matters unless not even be possible to gauge the real we first took responsibility ourselves. effects on the environment. “ Much of the decision to buy a car Mr. Sinisalo emphasizes the is based on brand image. The imporimportance of sorting out the landfill tance of caring for the environment is waste from waste that can be used to Used cardboard packaging is fed into a cardboard pressing machine by Juha Tähtinen, in preparation for recycling. Juha Tähtinen, Spare Parts Manager at Bilia Herttoniemi, who is also responsible for environmental issues, separates metal waste resulting from auto servicing and repair, ready for recycling. ISO Management Systems – May-June 2003 39 SPECIAL RE PORT Hannu Sinisalo, Environmental Manager at Bilia, one of the largest dealers of the ISO 14001certified network of Volvo Auto, Finland, in front of the recycling area at the company’s Kaivoksela, Vantaa, branch. Before old shock absorbers are sorted for metal recycling at Bilia Herttoniemi, the components are drilled to release oil for separate disposal. 40 produce energy. Bilia has made a determined effort to reduce the amount of waste it sends to the landfill and succeeded in bringing this down from 30 % of total waste in 1999 to about 9 % today. “ We’ll be able to make further improvements,” he says. For instance, we must still develop a system for recycling broken or damaged windscreens. Nevertheless, we have consigned about 200 tonnes less waste to rubbish dumps during the past three years than we would have done without our environmental effort.” Bilia began planning its environmental programme in the summer of 1998, and had its own ISO 14001-certified EMS in place at all sites by the autumn of 1999. “ We’ve had an excellent monitoring system in place since 2000 which allows us to measure the precise amount of waste handled and sorted every day. By sorting material to be used as a fuel source and separating small metal objects, we have greatly reduced the amount of waste going to landfill dumps,” says Mr. Sinisalo. He underlines the importance of clear guidelines if sorting and recycling of large quantities of waste is to be carried out effectively. Furthermore, some of the refuse from a dealership consists of troublesome hazardous waste, which has to be treated with special care at a dedicated industry facility. ISO Management Systems – May-June 2003 Car dealers must often use vehicle servicing products – such as chemicals, oils and spare parts – manufactured and packed by others. Suppliers that care about the environment order chemicals and lubricants in barrels, or take delivery by tanker rather than in small plastic bottles. However, for protection of fragile spare parts, it is often necessary to use complex packaging made of different materials. “ Of course, we use materials and spare parts specified by Volvo, but we try to avoid disposable packaging as long as we can trust the quality of the product,” Mr. Sinisalo points out. “ For instance, we use 150 000 litres of motor oil a year, which would cause an enormous volume of waste if delivered in small canisters instead of by tanker.” Economic benefits from environmental efforts “ Everyone who works for Bilia undergoes environmental training. All new employees also receive environmental instruction during two or three induction sessions a year as part of their job training,” he explains. The firm also invested heavily in the physical environment, since waste sorting requires special containers for different materials. However, although the overall cost of ISO 14001 certification is difficult to estimate, Mr. Sinisalo says it represents a considerable outlay for a major dealership like Bilia. “ But it is not simply a question of costs. Landfill fees have risen sharply in Finland and they will do so again in about a year’s time. So Bilia will derive a direct economic benefit from its environmental efforts in addition to the huge indirect benefits.” I N TE RN ATI O NAL Japanese survey reveals timescale and benefits of ISO 9001:2000 transition “ How long does it take to transition from ISO 9001:1994 to ISO 9001:2000 ? ” and “ What are the challenges and the benefits ? ” This article provides answers to these and related questions gleaned from a recent survey of 630 companies in Japan that made the upgrade. D uring May to June 2002, the Japan Quality Assurance Organization (JQA) conducted a survey of 730 companies in Japan, previously certified to 1994 versions of ISO 9000 standards, that have made the transition to ISO 9001:2000. When the revised standard was published on 15 December 2000, organizations were given three years to make the transition. The companies figuring in the Japanese survey were therefore organizations that had made a decision to be leaders, rather than followers, in the transition process. The objectives of the survey were to find out how quickly these companies had made the transition, if they had experienced difficulties in doing so, their reactions to the key requirements of the 2000 version, and the benefits of having made the change. Results were based on answers from 630 companies, representing a very high response rate of 82,6 %. The principal findings are summarized below 1 How long did the ISO 9001:2000 transition take ? The transition process ranged from less than three months to more than one year. Nearly 60 %, completed the task within a year, a further 24,5 % made the transition within six months, 2,8 % in as little as three months, while 13,2 % required over a year. Interestingly, the findings indicated that as company size became smaller, so the transition period was likely to be shorter (see Table 1.1, overleaf). BY T OSHIO Y OKOMIZO The author, Toshio Yokomizo, is Executive Board Director of Japan Quality Assurance Organization (JQA). Japan Quality Assurance Organization (JQA), ATTAkasaka Twin Tower Building, 1-9-15 Akasaka, Minato-ku, Tokyo 107-0052, Japan. Contact: Sumio Asada, International Bureau, JQA. Tel. Fax E-mail Web + 81 3 3584 9123. + 81 3 3224 9002. y-fukui@jqa-iso.com www.jqa.jp ISO Management Systems – May-June 2003 41 I N TE RN ATI O NAL Respondents drew on various information and support sources before undertaking the transition of their organization’s quality management system (QMS). This was predominently divided between communication with auditors, input from seminars conducted by JQA and others, and guidance from books and documents on the subject (see Table 1.2). Transition audits took place relatively quickly following the decision to make the change, mainly because an ISO 9001:1994-based QMS was already in place, and through effective information gathering on the subject. Over half the companies based their responses on less than a year’s experience since implementa- Less than 3 months tion, 27,4 % on six months, while 21,2 % had operated in accordance with the 2000 version of the standard for over a year (see Table 1.3). 2 Why did you decide on early ISO 9001:2000 transition ? The principal reasons for making the early transition to ISO 9001:2000 were based on expectations of the effectiveness of the new version and efforts to avoid in-house confusion through long drawn out system changes (see Table 2.). Respondent companies were clearly determined to make the transition as smooth, practical and trouble-free as possible to gain early benefits. Table 1.1 – How long did the ISO 9001:2000 transition take ? Less than 6 months Less than 1 year More than 1 year No response Communication with auditors Table 1.2 – What did you use to guide you in the QMS transition ? Imput from seminars Imput from companies already transitioned Advice from consultants Books and documents on the subject Others Less than 6 months Table 1.3 – How long has your ISO 9001:2000 QMS been in operation? Less than 1 year More than 1 year No response 42 ISO Management Systems – May-June 2003 I N TE RN ATI O NAL In expectation of 2000 version effectiveness Table 2 – Why did you decide on early ISO 9001:2000 transition ? In order to develop an enhanced and flexible system To promote an advanced QM image To avoid in-house confusion Customer request Following group policy Others Some companies noted the compatibility of the new version with ISO 14001 and to the benefit of integrating quality and environmental management systems. 3 What are your expectations of ISO 9001:2000 ? “ Improved performance” (50,1%) and “ ease of use ” (27,8 %) were seen as the greatest expectations of ISO 9001:2000 (see Table 3.1). Companies were then asked to rank the main requirements of ISO 9001:2000 in terms of expected effect on QMS performance. Some 26 % expected greater effectiveness from the revised requirement for “ continual improvement ”, followed by a stronger “ focus on the customer ”, and the “ process approach ” (see Table 3.2). These findings could be interpreted to reflect the respondent’s expectations of improved effectiveness in the overall QMS. Table 3.1 – What are your expectations of ISO 9001:2000 ? Performance improvement Easier to use and closer to quality and production management systems used in manufacturing Not a big change from before The requirements seem a little too broad Others Table 3.2 – Which of the key 2000 version requirements will have the greatest effect ? Enhancement of the top management role The process approach Continual improvement Customer focus Resource management Monitoring and measurement of processes Internal audit Others ISO Management Systems – May-June 2003 43 I N TE RN ATI O NAL 4 Are you satisfied with the effects of ISO 9001:2000 in operation ? There was a generally high degree of satisfaction concerning the effect of ISO 9001:2000-based systems in operation – irrespective of company size and industry sector (see Table 4.1). However, over 20 % could not give a definite answer, many citing “ too short an operating period to judge effects ” as the reason. Many respondents rated the opportunity to simplify their existing QMS, the customer-oriented process approach, and similar performanceimproving aspects more highly than the conventional responses of “ a reduction in defects and complaints ” and “ greater QMS stability ” (see Table 4.2). This might suggest a deeper understanding of ISO 9001:2000 than of the earlier versions and a Very satisfied Generally satisfied greater intention by companies to utilize the QMS to deliver benefits. Some individual opinions associated “ QMS operating effects ” with “ effects of PDCA (Plan, Do, Check, Act) ”, “ closeness to the actual business ” and “ consistency with management plan ”. Some noted the positive effects of encouraging management commitment. 5 Which planned improvements have you achieved in transition to ISO 9001:2000 ? Almost all responded to this question, and many with multiple answers. Most planned creatively for their own QMS transition, taking their unique characteristics into account, to ensure maximum QMS improvement as a result of the change process. Table 4.1 – Are you satisfied with the effects of ISO 9001:2000 in operation ? Not sure Slightly dissatisfied Dissatisfied No response Enhancement of customer focus – improvement in customer satisfaction Table 4.2 – Identify the key effects of implementing ISO 9001:2000 Profit improvement from effect of process approach on quality, cost and delivery Continual QMS improvement through PDCA Greater top management involvement and enhanced business planning QMS stability Decrease in defects and claims QMS simplification resulting from re-examination of documents and procedures Others 44 ISO Management Systems – May-June 2003 I N TE RN ATI O NAL Re-examination of quality manuals and other system documentation Table 5.1 – Which planned improvements have you achieved in transition to ISO 9001:2000 ? Enlargement/integration of sites, divisions and headquarters Enhancement of QMS compatibility with ISO 14001, OHAS and other systems Better QMS adoption/application among design departments Better understanding of customer needs Improved unification/coordination with management and business planning Enhancement by IT systems, e.g. computerization, networking, etc. Improvement of top-down bottom-up synergies Others Table 5.2 – How has your documentation changed in the transition process ? Manuals changed in accordance with the 2000 version, but lower-level documents remain unchanged Only slight changes to manuals and lower-level documents These varied plans included simdocuments such as the quality manuplification of the quality manual and al in conformity with the new documentation, reinforcement of requirements, but left subordinate market- and customerdocuments intact in focus, strengthening of their ISO 9001:1994 verResults were based system consistency and sions. This reflected the its links with business fact that the 2000 revion answers projects, schemes to sion mainly affects the multiply the effects of from 630 companies top management level, top-down and bottomwhile changes at site up management, and level are less significant. upgrading of information systems Over 30 % of respondents sought such as electronic documentation (see to increase the user-friendliness of Table 5.1). their manuals, suggesting that many The conclusion here is that comconsidered the revision a good panies are making efforts to reinforce opportunity to improve the in-house and improve their QMS at the same usability of the QMS. Conversely, a time as they make the transition, in minority preferred to keep document light of their own past experiences in system changes to a minimum (see operating the system. Table 5.2). Concerning changes in document systems, the majority revised key Manuals and lower-level documentation revised to improve efficiency and ease of use Others ISO Management Systems – May-June 2003 45 I N TE RN ATI O NAL Companies are making efforts to reinforce and improve their QMS at the same time as they make the transition In relation to resource management : Initial concern Difficulties experienced 6 What difficulties did you encounter in the transition process ? Respondents were asked to express their initial concerns, and how these perceived difficulties may have grown or diminished during the actual transition experience. Overall, concerns about eventual difficulties eased during the transition period indicating that for many, the transition had taken place more smoothly than expected. On the other hand, “ raising understanding of ISO 9001:2000 requirements ” among employees proved more difficult than originally expected for many companies (see Table 6.1). The “ process approach ” and “ monitoring and measurement of processes ” were the most frequently reported challenges to adapting an existing QMS to ISO 9001:2000 (see Table 6.2). Table 6.1 – What difficulties did you encounter in the transition process ? Appointing employees to take responsibility for QMS transition Raising understanding and awareness of ISO 9001:2000 requirements QMS transition cost Smooth system transition Consultants fees Initial concern Difficulties experienced Table 6.2 – Which new ISO 9001:2000 requirements caused difficulties ? Enhancement of top management role The process approach Continual improvement Customer focus Monitoring and measurement of processes Internal audits 46 ISO Management Systems – May-June 2003 I N TE RN ATI O NAL To further enhance customeroriented approaches, e.g. better understanding of customer requirements, raising customer satisfaction Table 6.3 – What future problems or challenges do you anticipate ? Enhancing the continual QMS improvement process Contributing to improvements in quality, cost and delivery Enlargement/integration of sites, divisions and headquarters Further improvements in QMS compatibility with other management systems Question 6.3 asked respondents to anticipate future problems. Measures to further improve QMS performance via schemes to enhance customer-orientation, and efforts to ensure continual improvement and performance improvement were frequently mentioned. Improving employees understanding of the QMS and its implementation was seen as a further challenge (see Table 6.3). Identifying trends The JQA survey has served to highlight the following trends: 1. Companies expect improved performance from their ISO 9001:2000-based QMS compared to the 1994 version. 2. Companies are strongly motivated to put ISO 9001:2000 into operation. 3. A thorough understanding of the revised standard is required throughout the organization. 4. There is a need for greater standardization among auditors in the interpretation of audits. 5. Increasing use of third party audits is required to activate corporate quality management systems. Currently, the biggest challenges for registrars are to minimize the burden on the companies making the transition so that the exercise is carried out as smoothly as possible, while ensuring that ISO 9001:2000 is enforced effectively. Audit systems and services need to be strengthened to do this successfully and maintain QMS effectiveness and efficiency. In response, JQA makes continuing efforts to understand the varying needs and expectations of individual companies with the goal of improving the quality of auditing. Better guidance to enhance employee understanding of the QMS and its implementation Pursuit of greater efficiency in quality management Others JQA in brief The Japan Quality Assurance Organization (JQA) is a not-for-profit enterprise specializing in ISO management system certification services, and safety testing and certification of compliance with a variety of national and international standards. JQA was established in 1957, initially as a designated inspection body under Japan's Export Inspection Law. Its work contributed to the post-war recovery of an export-oriented Japanese economy by testing and certifying products destined for overseas markets. Today, more than half of JQA's 885 staff members are engaged in ISO 9000 and ISO 14000 certification services. In addition, the organization's services include product and component safety, public health and safety, environmental evaluations, and the authentification of compliance to regulations for fast-growing information technologies. Quality assurance and conformity assessment by an impartial thirdparty organization plays an important role in facilitating business transactions across borders. JQA has strengthened its global network through partnerships with overseas providers of testing and certification services. Through such networks, JQA promotes costeffective, one-stop-shopping services for multiple access to safety/certification marks in major countries. JQA is a leading member of the IQNet network of certification bodies which groups 33 partner organizations and 150 subsidiaries worldwide. Under the current Chairmanship of Masabumi Ono and President Kenji Sakuma, JQA operates 15 branches throughout Japan, and has total assets of approximately USD 150 million. Its competent authority is the Ministry of Economy, Trade and Industry (METI). ISO Management Systems – May-June 2003 47 I N TE RN ATI O NAL Managing organizational change Part 5 Communication and change This article is the fifth in a series dealing with the issue of managing change in organizations. The previous one, which dealt with the stage of awakening to the need for change, showed that communication has a major influence on the process of organizational change. Therefore, before going on to the transition and ritualization stages, we shall deal in this article with communication since understanding the issues at stake in this connection will prove very useful in the following phases. BY 48 P IERRE COLLERETTE , R OBERT S CHNEIDER , AND PAUL L EGRIS Introduction When you listen to people talk about their experience of change, problems of communication are usually at the forefront. In spite of the persistence of this shortcoming, very few serious studies have been made of the subject with a view to identifying effective practices. Nevertheless, the scant information available provides a number of interesting indications. Among them, it shows that in general, top management ISO Management Systems – May-June 2003 has an over-simplified idea of what is at stake in communication and that desirable communication practices are far removed from management’s usual reflexes. One common mistake, in particular, is to confuse information with communication. The experience of Euram Laboratories Euram Laboratories, specializing in the development and marketing of anti-influenza drugs, employs 850 staff I N TE RN ATI O NAL ! Circulate relevant information spread over five sites in Europe, about the programme on the comAmerica and Asia. The range of prodpany intranet. ucts varies somewhat from one site to another and each is relatively inde! Make available on the intranet a pendent at the operational level. For guide to the new system procehistorical reasons, until 2000 each site dures. had its own quality management pro! From time to time, convey informagramme. In a highly competitive settion about the programme to the ting and with a view to obtaining ISO staff by e-mail. 9000 certification, top management then decided to introduce a single, uni! Distribute to each staff member a fied quality management programme. colour leaflet describing the new A working group was assigned by programme. corporate headquarters to draw up a ! Offer the staff training to introduce programme suited to the company. A them to the new programme. one-year, on-site pilot project was conducted to fine-tune the programme, after which it was extended to the whole company. The responsibility for its implementation was entrusted to the management team on each site. At the yearly management review, the company’s management was informed about the programme and the pilot project. The staff received the same information in the company’s internal magazine, published on its intranet. The following year, a progress report on the implementation of the projet was given through the same channels. Barbara Turenne is in charge of the Dutch site. Although in agreement with the programme, which was periodically discussed in meetings at headquarters, she made a decision to address the implementation problems Launched in April 2002, the proearly on and asked the public relations gramme’s implementation was to be (PR) department to put forward a completed by the end of June of that communication plan. year. Many problems Although somewhat arose, however, and in surprised, the PR manSeptember, it had to be Top management has ager nevertheless subacknowledged that the mitted the following an over-simplified idea procedures and mechaplan : nisms had been applied of what is at stake only to a very limited ! Prepare a poster extent. To everyone’s in communication explaining the new dismay, it was just programme and about necessary to start place it where it again from scratch. It was not until would easily be seen by staff. March 2003 that the programme ! Circulate a newsletter-type leaflet became operational and even then explaining the programme and with deadlines and costs that were well announcing the launching of its beyond forecasts, and with a high level implementation. of discontent among staff and middle If people perceive inconsistency between words and acts, they will dwell on the acts rather than on the words, as if that were the real message ISO Management Systems – May-June 2003 49 I N TE RN ATI O NAL A visible commitment by top management plays a very important The researcher Alex Mucchielli management who generally deplored (1995) identified five major issues in the lack of communication. communication, only The communication one of which concerns plan, however, had been fully implemented and Communication consists the information conone can certainly not of an attempt to reach tent : accuse Barbara of having acted in bad faith. a common understanding 1. Exchanging information : for example – Nevertheless, she fell of life’s experiences “ The meeting will take victim to the usual illuplace at 10:00 ”. sion of believing that the key issue was that of information – 2. Defining one’s position in relation which led her to lay emphasis on the to that of others – “ I do not intend quality and quantity of information, on to associate with this project ”. its presentation and means of diffusion. Unfortunately, things are just not that simple and some of the real issues at stake lie elsewhere. symbolic role in communication Communication and its challenges Contrary to a widespread belief, the function of communication is not merely to exchange information, but also, and above all, consists of an attempt to reach a common understanding of life’s experiences. In fact, it involves a continual process of adjustment to establish and maintain a relationship that will evolve in the direction that the participating “ players ” expect. Let us take, for instance, the case of a manager making a presentation to his staff on a new process he wants to introduce in the department. On the one hand, the content of the presentation is flawless: clear, detailed, documented. On the other hand, his tone is authoritarian and pontificating. What will the staff first react to when they come out of the session?. To the content of his presentation? No! They will first react to his manner of communicating, the content being relegated to the background. Relational and personal considerations will dominate and will significantly contaminate the interpretation of the content. In other words, the staff will endeavour to adjust to the relationship; therefore, aspects other than content are at stake and will take precedence. 50 ISO Management Systems – May-June 2003 3. Influencing the entourage – “ You should adopt the same procedure as the other division ”. 4. Maintaining a relationship – “ I’m glad to see you again ! How are you ? ”. 5. Adjusting the relationship – “ You’re talking to loud : that irritates me ! ”. Our research (1995) and experience suggest that in the context of change, the information issue is not paramount. Our work leads us instead to conclude that if the adjustment to the relationship has failed to succeed to the satisfaction of all those present, the information will not be adequately I N TE RN ATI O NAL processed by those for whom the change is intended. In other words, communication addresses first of all the relational aspects and only afterwards is the information conveyed taken into account, except in urgent cases, where the information content takes precedence. Consequently, if the leader lays the emphasis on the transfer of information, however good it may be, he may be on the wrong track and waste his time and energy. It should be understood that apart from the information that is being explicitly circulated, an act of communication conveys several implicit messages that will affect the reception given to the information. Indeed, we are usually attentive to a variety of signs that enable us to position ourselves in relation to the information received : 1995). This means that all the gestures of management are part of the communication and not only the information dealing explicitly and intentionally with the change. One day, for instance, during a tense working session where staff were visibly uneasy at the anger expressed by their departmental head, the latter exclaimed : “ Don’t look at what I’m doing ! Listen to what I am saying ! ” Evidently, that is something they just could not do ! – Is the speaker being sincere ? – Does he have the support of his superiors ? – Was he successful with his previous projects ? – Does he seem to believe in the project ? – Is his tone appropriate ? In fact, research on communication In short, we closely observe many shows that if people aspects of the players, perceive inconsistency their behaviour and the Communication between words and context before turning actions, they will dwell to the information as addresses first of all on the actions rather such, in order for us to than on the words, as if the relational aspects decide how to deal with that were the real mesit. Should we : and only sage (Watzlawick et al., – Try to understand it ? 1972). If you need conafterwards is the – Reinterpret it ? vincing, put it to the information conveyed test by telling some– Figure out what is body, “ We’re good behind it ? taken into account friends, aren’t we ? ” as – Guess what is being you raise your fist, to said “ between the lines ”? see if he reacts to your words or to your gesture ! – Reject it ? etc.. The credibility of those who proBased on these considerations, we mote change and their ability to would define communication as being inspire trust are other important fac“ any expressive behaviour perceived tors in relation to the effectiveness of by the interlocutors ” (Mucchielli, communication. Larkin and Larkin ISO Management Systems – May-June 2003 51 I N TE RN ATI O NAL Face-to-face communication has a number of aspects that are missing in electronic media 52 ! They organize their objectives so as (1996) quote two, not very encouragto find common ground with their ing studies on this topic. One indicates interlocutors, or work with them to that 43 % of employees believe that achieve such a common framework. management cheats and lies (National Productivity Review, 1989) and the ! They use lively language and proother informs us that 64 % of employvide tangible evidence. ees believe that management lies often ! They adjust their emotional tone to (Council of Communication Managethat of their interlocutors. ment, 1994). This data clearly demonstrates Jay Conger emphathat the prime chalThe prime challenge is sizes that it is not a marlenge is not about keting operation aimed not about information, at selling ideas, but a information, but indeed about relationships. challenge in terms of but indeed about sharing ideas, of seeking relationships convergence. One basic principle, therefore, would be to maintain the Opportunities for exchange most direct line of dialogue with those When you ask people affected by the intended change. what it is the main feature of Research indicates that significantcommunication, they often ly more effectiveness when top manevoke the need for agers themselves becomes involved in exchange. From a number of promoting the change. The account interviews we conducted given by Greg Brenneman (1998) of within an organization how he saved Continental Airline which had succeeded in from bankruptcy in 1994 is quite implementing major change enlightening in this respect. He with few communication describes a number of situations problems, it came out that where, by becoming directly involved, the aspects which had conhe was able to motivate people and tributed most to the effecobtain changes that at first sight had tiveness of communication seemed impossible. were not linked to the information In 1998, the result of a study conconveyed, but instead to the relationducted by ProSci among about 100 ship fostered by management. companies showed that the absence of One lady concluded the interview visible involvement of top manageby stating that she would have liked ment was a significant failure factor. the exchanges and spirit of “ togetherFrom another study made in 2003 by ness ” to have been even stronger, and the same firm among 288 organizations that this was where there was a real in 51 countries, we learn that the most need. She was underlining a fundaeffective sources for communicating mental principle : exchanges enable change are top management and the the participants to arrive at a shared immediate supervisor. This apparent understanding of the problems and the dichotomy is explained by the fact that solutions – a necessary precondition it is the immediate supervisor who has to being receptive to change. the greatest control over the everyday In a research paper on leaders activities of his or her staff, while top acknowledged for their persuasivemanagement has the greatest control ness, Jay Conger (1998) came to simiover the company’s policy. lar conclusions, identifying four pracOur own observations point in the tices common to such leaders : same direction: a visible commitment ! Before trying to influence the tarby top management plays a very imporgeted audience, they first establish tant symbolic role in communication. In the eyes of staff, the active presence of their credibility. ISO Management Systems – May-June 2003 I N TE RN ATI O NAL Communication media top management means that “ this change must be really important ”. Absence or even discretion are interpreted as a lack of interest and that is the message that sticks. Active involvement of the immediate supervisor is just as important in reinforcing the momentum for change in actual practice. The usual reaction of top managemers is to say that they are too busy to become so involved. It may be true for some of them, but that solves nothing ! Endeavouring to have frequent – even brief – contacts may be a less demanding alternative, while still producing good results. Studies on the effectiveness of communication media in the context of change (Smeltzer and Zener, 1992) have shown that it is primarily the confidence in management and the “ richness ” of the means utilized that have the greatest impact. Considered in terms of “ richness ”, communication media can be subdivided into two groups : the “ poor ”, which do not allow mutual adjustment, and the “ rich ”, which provide opportunities for direct interaction (see Table 1). Table 1: Communication media and their influence Rich communication media Poor communication media Face-to-face meetings Company’s internal magazine Newsletter, information bulletin Small group discussions Intranet Internal memos Large group discussions Leaflets, brochures, posters Mass electronic mailing Presentations to small and large groups Procedures manuals Training sessions Working groups Video and audio cassettes 53 ISO Management Systems – May-June 2003 53 I N TE RN ATI O NAL Table 2 : Desirable communication behaviour in change context 54 ISO Management Systems – May-June 2003 I N TE RN ATI O NAL According to the authors, these The greater the extent of the properties enable speakers and listenchange involved, the more those ers to tend towards the same underattected require rich communication. standing of the issues at stake and Paper-based information is the poorto adjust their efforts est form, because it is to seek agreement. impersonal, and faceElectronic or paperto-face exchanges are Mass communication based communication the richest (Covin, is more limited in that 1993). Once again, we media remain respect: not only does come back to the notion precious tools. it introduce a time lag of direct and real-time dialogue. It is simply that they are before any reaction, but above all, it The use of mass communication media insufficient for ensuring removes all possibility is rather attractive successful communication of adjustment to the implicit aspects of the because they make it relationship. possible to reach a large However, there should be no misaudience quickly and at a relatively understanding : mass communication low cost. If the aim is to provide peomedia remain precious tools. It is ple with factual information or purely simply that they are insufficient for operational data, then this is an inexensuring successful communication. pensive approach. However, if the In a context of change, they usually intent is to influence people, the have a limited impact if they are not approach is somewhat ineffective. accompanied by other, richer mechaThe speed and the user-friendliness nisms that enable dialogue. This makes of information technology is also parthings far more complicated for manticularly attractive. To date, however, agement – but that is real life ! experience is far from conclusive in situations of change – quite the contrary. For example, a recent study (Friedman Euram’s experience, revisited and Curral, 2002) shows that in a conflict situation, e-mail can make misunIn the light of the above, what are derstandings even worse, sometimes to the major shortcomings in the the extent of causing irreparable damapproach followed at Euram ? age to the relations between correEssentially, the communication plan spondents. There are some useful lesprovided to Barbara : sons to be drawn from that study, even – was based on “ poor ” media (paper though it did not specifically refer to and electronic) ; contexts of change. The authors explain – was mainly concerned with the that face-to-face communication has a information to be circulated ; number of aspects that are missing from electronic media : – did not encourage contacts and – co-presence, which enables each meetings with management ; party to decode the non-verbal lan– did not provide a forum where peoguage of the other ; ple could have developed a shared – perceptibility, which allows the understanding of the problem and players also to perceive intonation ; the solution ; – concurrence and sequentiality, – management was scarcely visible. which allow the interlocutors to receive immediate feedback ; In a nutshell, the approach was – simultaneity, which means that largely based on technical media, each player is constantly issuing when the situation would have and receiving a whole range of required direct and more frequent messages. exchanges. All our behaviours contribute to communication and that people give more credit to our actions than to our words ISO Management Systems – May-June 2003 55 I N TE RN ATI O NAL Table 2 sets out in the form of a guide a number of suggestions which could have been applied to obtain better results. This guide can also be used to self-assess your own communication practices in a change context. It should be borne in mind that communication is the main vector of change and that the approach will have to be adjusted at each stage. Thus: ! At the awakening stage, one should endeavour to provide clear and reliable information that demonstrates the actual situation to be different from existing conceptions. ! At the disintegration stage, one should create opportunities for exchanging views on existing approaches and practices and for calling them into question. ! At the reconstruction stage, one should provide a framework and rules that make it possible to experiment and discuss new ways of doing things. ! At the ritualization stage, opportunities for exchange should be provided for assessing the results and agreeing on adjustments. The change context The following elements will constitute important assets for introducing and maintaining effective communication in a context of change : ! Close contacts (face-to-face exchanges between management and those affected by change). ! Frequent meetings (short, rather than long). ! Clear and truthful messages (express things as they are, in a straightforward manner). ! Congruence between management’s messages and behaviour (do what you say you do). About the authors Robert Schneider Pierre Collerette is an expert in computer science and public administration. He has gained more than 20 years of experience in management functions in the information technology and general administration fields. He is more particularly interested in the integration of technologies in company business processes and is pursuing research in that field. is a professor and researcher in management at the University of Québec in Outaouais (Canada). He has published several works in the fields of organizational change and management structures. In addition to his academic activities, he has held several management functions and has acted as a consultant in numerous projects in Canada and Europe. manages his own consultancy firm, the Centre de recherche et d’intervention en gestion (CRIG). He has been active for more than 25 years as a management consultant on planning, change and strategic organization. He has also taught in connection with several university programmes and has published several works and articles on organizations. Department of Administration Sciences, University of Québec in Outaouais, Gatineau (Québec), Canada J8X 3X7. Centre de recherche et d’intervention en gestion (CRIG). University of Québec in Outaouais, Bureau du recteur, Gatineau (Québec), Canada J8X 3X7. E-mail E-mail E-mail 56 Paul Legris pierre.collerette@uqo.ca ISO Management Systems – May-June 2003 crig.schneider@sympatico.ca paul.legris@uqo.ca I N TE RN ATI O NAL Bibliography BPR Online Learning Center (2002). The five biggest mistakes top management can make during a major change. ProSci, Internet : www.prosci.com. BPR Online Learning Center (2003). Communications – what worked and what didn’t, ProSci, Internet : www.prosci.com. Brenneman, Greg (1998). “ Right Away and All at Once : How We Saved Continental ”. Harvard Business Review, September-October, pp. 162-179. Collerette, Pierre ; Schneider, Robert (1996). Le pilotage du changement. Québec, Presses de l’Université du Québec. Restricting the communication challenge to information alone is an over-simplification It goes without saying that communication needs are even stronger in situations where people believe that the change will bring them nothing positive, or is even detrimental to them. It is in such circumstances that distortion is at its strongest and that dialogue is most necessary. Conclusion Let us keep in mind that communicating means exchanging views with those concerned. Restricting the communication challenge to information alone is an over-simplification. The principal challenge consists of building and maintaining trust and sustained dialogue. One of the keys to achieving this is to say what you do and do what what you say. Things would of course be far easier if content were the last word ; but the truth of the matter is that all our behaviours contribute to communication and that people give more credit to our actions than to our words. In 1967 already, the communication expert Marshall McLuhan asserted that “ the medium is the message ”. Collerette, Pierre (1998). “ Gestion du changement ; communication et paradoxes ”, in Gestion des paradoxes dans les organisations – Vol. 1 (Changement organisationnel). Actes du neuvième Congrès International de Psychologie du Travail et des Organisations ; sous la direction de Alain Rondeau. Presses Inter Universitaires, Cap-Rouge (Québec). Conger, Jay (1998). “ The Necessary Art of Persuasion ”. Harvard Business Review, May-June, p.84-95. Covin, T.J. (1993). “ Managing Workforce Reduction : A Survey of Employee Reactions and Implications for Management Consultants ”. Organization Development Journal, Vol. 11, #1, Spring, p. 67-76. Daft, Richard L.; Bettenhausen, Kenneth R., and Beverly B. Tyler (1993). “ Implications of Top Managers’ Communication Choices for Strategic Decisions ”. In Organizational Change and Redesign; Ideas and Insights for Improving Performance. Edited by George P. Huber and William H. Glick. New York, Oxford University Press. Friedman, Raymond A.; Currall, Steven C. (2002). “ E-Mail Escalation : Dispute Exacerbating Elements of Electronic Communication ”. IACM 15th Annual Conference, Paper on Internet. Johnson, Lauren Keller (2002). “ Does E-Mail Escalate Conflict ? ”, MIT Sloan Management Review, Fall. Larkin, T.J.; Larkin, S. (1996). “ Reaching and Changing Frontline Employees ”. Harvard Business Review, May-June, p. 95-104. Mucchielli, A. (1995). Psychologie de la communication. P.U.F., Collection Le psychologue. Smeltzer, L.R.; Zener, Marie F. (1992). “ Development of a Model for Announcing Major Layoffs ”. Group & Organization Management, Vol. 17, #4, Dec., p. 446-472. Watzlawick, P.; Beavin, J.H.; Weakland, J.H. (1972). Une logique de la communication. Paris, Seuil. ISO Management Systems – May-June 2003 57 Next ISO Insider issue How do you know the quality of your products really measures up ? In realizing a product, accurate measurement not only affects its overall quality, but can also impact on its reliability and safety. ISO 10012 complements the ISO 9000:2000 series by specifying the requirements of a veritable “ measurement management system ”. Medical laboratories get Vitamin ‘ Q ’ for Quality ISO 15189 is just what the doctor ordered for medical laboratories : tailor-made requirements for implementing ISO 9001:2000-based quality management systems to improve efficiency, meet regulatory requirements and improve their service to patients. Special Report Information and communication technologies and management system implementation Whatever happened to quality management software ? A review of the latest methods of using software to manage through quality principles Idea management systems : key tools for customer satisfaction and involving employees An Internet-based idea management system can cost-effectively provide the documentation and lead to the behavioral changes organizations need to prove they are continuously improving their products and services to meet the quality expectations of their clients. International ‘ Operation Aquitaine’ puts integrated management systems through their paces Feedback and good practice on an integrated approach to quality, environment and safety are gleaned from a cooperative project in Aquitaine, France involving local industry, with the support of central and regional government, the European Union and the French national standards institute, AFNOR. Business Standards 58 IT security – securing your business advantage Information is an asset, which, like other important business assets, adds value to an organization and consequently needs to be protected. ISO Management Systems – May-June 2003 A warm smile is a good start. ISO 9001 for Small Businesses helps you with the rest. The first edition of this handbook sold like hot cakes. For the second edition, it has been completely revised to align the advice with ISO 9001:2000. The new standard defines the requirements for a quality management system based on “the process model” and aimed at achieving customer satisfaction and continual improvement in performance. ISO 9001 for Small Businesses explains the standard in plain language, giving examples to illustrate its application. importance of keeping the customer satisfied, or the need to get better at it to meet rising expectations and to stay in the race with the competition. ISO 9001 for Small Businesses provides the know-how. Except for the smile. The handbook has been written by the experts who developed ISO 9001:2000. They give no-nonsense, practical advice – just what the small business wants. You don’t need to convince a small business of the Available from ISO national member institutes and ISO Central Secretariat: www.iso.org ISO 9001 for Small Businesses * English edition: ISBN 92-67-10363-6 186 pages, A5 format, hard cover, ring binder Price, 46 Swiss francs * A joint publication with the International Trade Centre UNCTAD/WTO ISO Management Systems – May-June 2003 59