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Quality System Documentation of SMEs in Process Management Framework
Article in Economics and Organization of Enterprise · January 2008
DOI: 10.2478/v10061-008-0010-1 · Source: RePEc
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Vol 1(1); p. 77 - 82 Year 2008
10.2478/v10061-008-0010-1
Quality System Documentation
of SMEs in Process
Management Framework
Piotr Grudowski*
Introduction
Quality management principles are becoming increasingly recognized and appreciated in
the Polish transforming economy. Diffusion of quality concepts into small organizations (employing up to 50 people) enables the necessary customer-oriented cultural change and more
effective process-oriented management.
Major certification bodies operating in Poland in November 2004 unofficially reported that
there are about 10-15% of small companies among Polish ISO 9000 quality management
systems (QMS) certified companies. Most of the current ISO 9001 QMS implementations in
Poland (allegedly all over the world) are conducted in small business sector. Despite some
criticism (e.g. [1]) directed towards ISO 9000 standards, most of publications concerning ISO
9000 experiences in SMEs show that small organizations can benefit from the system.
Many features of SMEs make the QMS implementation process less formalized comparing
to large organizations. On the other hand, due to limited resources they are usually not able
to apply effectively ISO 9001 QMS good practices.
The research conducted by the author implies that approximately 82% of Polish small organizations in the sample pointed out that the foremost condition for effective implementation
of QMS is simple methodology of process management. This methodology involves all staff
and is integrated with characteristic features of an organization.
Nearly 79% of small companies emphasize as the main problem accompanying QMS implementation, difficulties in understanding and applying the process approach – one of basic
principles of quality management. Moreover, the majority of small firms (~66%) notice that
they are not able to utilize effectively the mechanisms of their QMS after completing cooperation with external consultants.
The presented data suggest that support for small firms implementing QMS despite, some
positive trends in that area, is generally still not adequate. The handbook ISO 9001 for small
firms issued in 2003 by TC 176 in the opinion of Polish small entrepreneurs does not fill that
gap and is considered as too general. In response to increased demand of small organizations,
the paper presents some more concrete solutions regarding ISO 9001 QMS documentation
structure, based on process approach, developed and validated by the author.
Processes approach
Process approach creates natural foundations for ISO 9001 QMS. It is particularly useful in
determining a simple and effective structure of the system and the strategy of its implementation in any organization.
* dr hab. Piotr Grudowski – Associate Professor at University of Technology, Quality Engineering and Metrology
Dept - Gdansk, Poland
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Quality System Documentation of SMEs in Process Management Framework
Designed by the author original methodology of the ISO 9001 QMS implementation in small
organizations ([2]) is based on the process-oriented framework, consisting of four following
stages:
– Process planning
– Process implementation
– Monitoring of the processes and data analysis
– Processes’ improvement
which together parallel the classic W.E. Deming’s „Plan-Do-Check-Act” improvement cycle.
This paper describes suggested approach to QMS documentation structure design elaborated
during the first stage of the methodology – planning processes of the QMS.
It is generally advisable that the QMS implementation project starts with ISO 9001 requirements gap identification preferably conducted with an experienced consultant. The results of
such review have to be presented during the first training on ISO 9001 requirements for the
staff of a small organization. The first task following the training is to prepare in cooperation of
all employees a draft of the system map showing all interrelated processes essential in transforming requirements into products/services features to achieve customers’ satisfaction.
The draft of the interrelationship diagram of the system of an organization should be discussed
and systematized. While preparing such diagram (fig.1) it is common to divide processes
into three main categories ([3], [4] and [5]):
– management processes comprising such activities as strategic planning, HR management,
QMS audits, management reviews and corrective/preventive actions,
– operational processes creatinge typical lifecycle of a product/service - marketing and
contract review, designing/development, production/realization, after sale service,
– supporting processes - „invisible” for a customer but essential to proper realization of management and operational processes (e.g. purchasing, infrastructure control, accounting,
document and data control, etc.).
Most of main processes consist of sub-processes creating a multilevel, hierarchical process
structure (fig. 2). As a result, a detailed picture of the system is developed presenting the functional level of processes that should be controlled according to ISO 9001 requirements.
Figure 1. Example of QMS’s processes relationship diagram for a service organization
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and work
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design
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and
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Documents and
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Purchasing
ECONOMICS AND ORGANIZATION OF ENTERPRISE 1/2008
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Quality percepon
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Quality System Documentation of SMEs in Process Management Framework
MAIN
PROCESS
PROCESS
PROCESS
SUBPROCESS
SUBPROCESS
SUBPROCESS
SUBPROCESS
PROCESS
SUBPROCESS
SUBPROCESS
SUBPROCESS
Figure 2. Example of a main process structure
Typically, in small firms there are two or three levels (tiers) of hierarchy structure for a major
process. The structure of hierarchy and the number of sub-processes certainly is a function
of the nature of a business.
Identification of QMS processes hierarchy aims at clear definition of competences in a company. This process oriented knowledge distribution requires the assignment of persons
responsible for a certain area of activities – process owners ([3]). Their main responsibility
is to provide optimal conditions and resources for a process realization in cooperation with
management and other process owners. Depending on a structure of the QMS, process
owners may be assigned not only to main processes (I-st level) but, if justified, also to their
sub-processes. In small organizations, it is accepted that several processes (sub-processes)
have the same owner.
Process guides
The key element of presented methodology for the control of the QMS processes is elaboration of documents called process guides.
Process guides are developed for all processes identified on the „executive” level of a main
process, i.e. those processes that are not further divided into sub-processes. The following
contents of the process guide provide an adequate source of information for a clear, effective
control and improvement of identified processes:
– Name of the process,
– Owner of the process,
– Input of the process,
– Output of the process,
– Objective(s) of the process
– Current process measurable target(s) and measures used to monitor them,
– Method(s) and the frequency of measurements/monitoring,
– Method(s) used for data analysis (eg. basic quality tools),
– Documents used to provide the controlled realization of the process (eg. QMS procedures,
diagrams, work instructions, plans, regulations, standards etc.)
– Forms used in collecting data about the process,
– Records created during process realization, and
– Comments (if necessary).
A process guide as a regular QMS document (in electronic or paper format) should be
controlled according to ISO 9001 requirements (p.4.2.3 of the standard). It is advisable to
prepare all process guides and other documents (if possible) in an electronic format, which
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Quality System Documentation of SMEs in Process Management Framework
may simplify the accessibility of documentation by the use of hyperlinks. This simple method
of the QMS documentation arrangement that requires just standard office software (MS
Word) - emphasizes the interrelationship between processes within the system and prevents
most of the problems associated with management of paper documents and records. This
approach facilitates also future implementation of more sophisticated solutions – advanced
computer data and document control systems.
Process based QMS documentation
The foundation for the clear process based structure of QMS documentation is a quality manual.
The manual can be constructed in many different ways (for example according to [6]) but
useful and accepted solution in small firms is to design its contents according to the setup
of ISO 9001 requirements.
The starting point in localizing, any operational document used in a process (e.g.: procedure,
diagram, instruction) is a diagram of main processes (fig.1) placed in the quality manual. This
diagram is hyperlinked with tree diagrams (fig.2) showing the structure (sub-processes) of
any of the main processes. All processes, which do not have their sub-processes („executive”
level) are equipped with process guides. As stated above in these guides one can find all
documents, forms and records used (created) in the processes.
The idea of the hyperlinks usage within QMS documentation structure is presented in
fig.3.
QUALITY MANUAL
(relaonship diagram of main processes)
DIAGRAMS OF HIERARCHY
OF MAIN PROCESSES
PROCESS GUIDES
PROCEDURES, PLANS,
INSTRUCTIONS, STANDARDS,
Figure 3. Hyperlinks within the QMS documentation structure ([2])
It is worth pointing out that growing popularity of flowcharts as the tool for visualization of
a process. The results of authors’ research show that more than 70% of small companies
select a graphic method for their business processes description.
The most preferred form of flowcharts is one showing the localization (responsibility) of
activities. The elaboration of the flowcharts should be assigned not only to process owners.
It is very important to involve other persons participating in a process. This always secures
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Quality System Documentation of SMEs in Process Management Framework
better identification of staff with an implemented system.
Not all identified sub-processes have to be presented using flowcharts. It can be observed
that most of small organizations select „classic”, handwritten form for some of procedures particularly those related to activities typical for formalized QMS, for instance: internal audits,
management reviews or corrective actions. It is quite natural reaction since employees are
not familiar with those mechanisms and are expecting from consultants readymade solutions. The situation can be accepted providing that the initial version of such procedure will
be reviewed just after its practical validation (internal audit of a procedure). Those review’s
outcomes usually lead to simplification of a document and improvement of a process.
In order to secure success for the future of the system, it is important that other employees,
in addition to the process owners, are involved in the preparation of flowcharts. Usually, the
teamwork helps to bring out other issues. For example, it is often discovered that identical
sequence of activities may be applied for different processes. This standardization has a
very positive impact on a system considering the ease of control of the various processes
and their improvement.
Conclusions
Summing up, despite the lack of market clout, capital and managerial expertise, small organizations can operate within quality management framework as effectively as large firms
([7]). Although small organization should simplify their QMS structure (including documentation), in practice this postulate is not supported by well explained, applicable solutions.
Documentation of ISO 9000 QMS is often treated as its main feature. In many instances,
the documentation is too complex and hard to understand for users both in small and large
organizations. SMEs in particular require simple methods that enable both self-dependent
implementation and effective performance of their systems. Presented method of process
based documentation arrangement proved to be helpful not only in obtaining ISO 9001 QMS
certificate in small organizations but also in their regular operations ([8]). Future studies and
surveys that are scheduled by the author will aim at the determination of the optimal ISO
9001 QMS (and other formalized management systems) documentation structure for small
organizations of different types.
Bibliography
1. Seddon J. The Case Against ISO 9000. London: Oak Tree Press, 2001.
2. Grudowski P. Quality Management System According to ISO 9001 in Small Firm. Documentation.
Implementation. Audit. Bydgoszcz: AJG-OPO, 2004.
3. Hammer M, Champy J. Reengineering the Corporation: A Manifesto for Business Revolution. New
York: Harper Business Books, 1993.
4. Rummler G.A., Brache A.P. Improving Performance : How to Manage the White Space in the Organization Chart. New York: Jossey-Bass Business and Management Series, 1995.
5. Burlton R. Business Process Management: Profiting From Process. Indianapolis: Sams, 2001.
6. ISO/TR 10013:2001.
7. Ahire S.L., Golhar D.Y. Quality Management in Large vs Small firms. Journal of Small Business
Management 34(2)1996. p.1-13.
8. Grudowski P. Quality manual of ISO 9001:2000 QMS. An example with guidelines. Methodology
of development. Gdańsk: ODDK, 2004.
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Quality System Documentation of SMEs in Process Management Framework
Summary
The article presents elements of original methodology of process-oriented quality management system
implementation to be applied in small organizations. The primary objective of the paper is to show process
based documentation structure of a quality system and simple method of processes control description.
Thus, guidelines for preparation of quality system documentation in process management framework,
related research results and key findings concerning small organizations are discussed.
ECONOMICS AND ORGANIZATION OF ENTERPRISE 1/2008
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