1. PERPAMSI Persatuan Perusahaan Air Minum Seluruh Indonesia Indonesian Water Supply Association www.perpamsi.org REGIONAL WORKSHOP TO DISSEMINATE WATER SUPPLY AND SANITATION STANDARDS OF QUALITY OF SERVICES 24 – 27 July 2007, Kampala / Uganda Dr. Werner BRENNER, Advisor Finance & Management INDONESIAN EXPERIENCES IN ISO 9001:2000 CERTIFICATION OF PUBLIC WATER UTILITY SERVICES

2. WBI/InWEnt, Kampala, 24-27 July, 2007 - ISO Workshop OVERVIEW OF PRESENTATION A.INTRODUCING THE INDONESIAN WATER SECTOR B.OUTSET SITUATION C.OBJECTIVE FOR IMPLEMENTATION OF ISO 9001:2000 D.SCOPE & PROCESS OF QUALITY CERTIFICATION E.PROBLEMS & SUCSESS FACTORS F.BENEFITS OF ISO 9001:2000 CERTIFICATION G.WHAT NEXT H.PICTURES

3. WBI/InWEnt, Kampala, 24-27 July, 2007 - ISO Workshop Facts about PERPAMSI, the Indonesian Water Supply Association  Established:  1972 by the Ministry of Home Affairs  Organization:  Head quarter in Jakarta (30 employees)  27 Provincial offices to coordinate activities  Members:  All 328 Indonesian public water utilities  Around 100 extraordinary members (suppliers, investors,…)  Services:  Typical association services to the members, governmental institutions, financing institutions, investors, donors and others  Training institution under PERPAMSI A: THE INDONESIAN WATER SECTOR

4. WBI/InWEnt, Kampala, 24-27 July, 2007 - ISO Workshop A: THE INDONESIAN WATER SECTOR (cont)

5. WBI/InWEnt, Kampala, 24-27 July, 2007 - ISO Workshop A: THE INDONESIAN WATER SECTOR (cont)  Water utilities are owned by local governments and controlled by local parliaments  Coverage rates for piped water supply  around 35% for urban areas and  around 20% for overall Indonesia (ca. 6,5 million household connections are installed)  Urban water supply provided by 328 water utilities  Only 5% of water utilities have more then 50,000 connections  60% have less than 10,000 connections  Less than 25% of PDAMs considered to be “financially viable”  Overall coverage rate for sewerage services < 1%

6. WBI/InWEnt, Kampala, 24-27 July, 2007 - ISO Workshop A: THE INDONESIAN WATER SECTOR (cont)

7. WBI/InWEnt, Kampala, 24-27 July, 2007 - ISO Workshop A: THE INDONESIAN WATER SECTOR (cont)

8. WBI/InWEnt, Kampala, 24-27 July, 2007 - ISO Workshop B: OUTSET SITUATION THE SUSTAINABILITY CHALLENGE Deteriorating assets Declining productivity Increasing operating costs Intermittent supply Poor quality water Angry customers Unwillingness to pay Low tariffs Declining revenues Unpaid bills Inability to access financing Declining credit rating and investment Cycle of Physical & Commercial Decline Assets deteriorate & expansion is difficult if full economic costs are not recovered. Service to the poor & wastewater suffer.

9. WBI/InWEnt, Kampala, 24-27 July, 2007 - ISO Workshop B. OUTSET SITUATION (cont) 1.Human Resources 1.1 Low level of the employees’ competence 2.Equipment 2.1 Old treatment plant equipment 2.2 Equipment breakdown development (Fig. 1) 42 36 38 35 No. of Problems 2004 - 2005 Fig. 1 Equipment Breakdown

10. WBI/InWEnt, Kampala, 24-27 July, 2007 - ISO Workshop 3.Water Treatment Plant System (Cicokol WTP; 1.100 liter per sec.) 3.1 No standard operating procedures in place 3.2 Low efficiency & effectivity in the operation of the WTP (Fig. 2) 2004 – 2005 Hour Fig. 2 Breakdown Time for Maintenance B. OUTSET SITUATION (cont)

11. WBI/InWEnt, Kampala, 24-27 July, 2007 - ISO Workshop 4.Water Quality 4.1 There was no person in charge to handle & follow up the customer complains 4.2 Low water quality (eq : Turbidity & Chlor residue) (Fig. 3 & 4) B. OUTSET SITUATION (cont) 2004 - 2005 2.86 2.63 2.35 2.15 Fig. 3 Water Turbidity 2004 - 2005 0.96 0.99 0.85 0.78 Fig. 4 Water Chlor Residue ppm Standard 1.5 NTU Standard 0.6 ppm

12. WBI/InWEnt, Kampala, 24-27 July, 2007 - ISO Workshop C. OBJECTIVES FOR THE IMPLEMENTATION OF ISO 9001:2000 1.Increase customers satisfaction 2.Improve the company’s performance. 3.Improve efficiency & effectivity of working system 4.Improve employees’ capacity & responsibility 5.Better communication & improvement of data quality 6.Better customers & suppliers relationship

13. WBI/InWEnt, Kampala, 24-27 July, 2007 - ISO Workshop REQUIREMENTSREQUIREMENTS Management Responsibility Measurement, Analysis & Improvement Resource Management Product Realization Output Product CUSTOMERCUSTOMER SATISFACTIONSATISFACTION CUSTOMERCUSTOMER PROCESS APPROACH Input C. OBJECTIVES FOR THE IMPLEMENTATION OF ISO 9001:2000 (cont)

14. WBI/InWEnt, Kampala, 24-27 July, 2007 - ISO Workshop D. SCOPE & PROCESS OF ISO 9001:2000 CERTIFICATION I.SCOPE OF ISO 9001:2000 CERTIFICATION Operation & maintenance of a water treatment plant (capacity 1.100 liter per second) II. CERTIFICATION PROCESS 1.First Stage: 1.1 Determine the management commitment 1.2 Appoint the team member to develop the system 1.3 Socialization of the ISO 9001:2000 quality management system 1.4 Determine scope of certification

15. WBI/InWEnt, Kampala, 24-27 July, 2007 - ISO Workshop 2.Second Stage: 2.1 Selecting the employees who will develop the system 2.2 Training for the working group members on ISO 2.3 Developing the quality manual 2.4 Developing the quality policy & quality objective 2.5 Developing the procedures & working instructions 2.6 Socializing the documents (procedures, working instructions, quality policy) with the employees D. SCOPE & PROCESS OF ISO CERTIFICATION (cont)

16. WBI/InWEnt, Kampala, 24-27 July, 2007 - ISO Workshop 3.Third Stage: 3.1 Implementation of the ISO 9001:2000 system 3.2 Revision of documents if the trial run is not appropriate 3.3 Internal audit training 3.4 Execution of internal audit 3.5 Corrective & preventive actions plans 3.6 Management review meeting D. SCOPE & PROCESS OF ISO CERTIFICATION (cont)

17. WBI/InWEnt, Kampala, 24-27 July, 2007 - ISO Workshop 4.Fourth Stage: 4.1 Determine certification body 4.2 Pre audit by certification body 4.3 Corrective & preventive actions 4.4 Final audit by the certification body 4.5 Recommendation for ISO 9001:2000 certificate D. SCOPE & PROCESS OF ISO CERTIFICATION (cont)

18. WBI/InWEnt, Kampala, 24-27 July, 2007 - ISO Workshop No. DESCRIPTION TOTAL MONTH 2005 JANPEBMARAPRMAYJUNJULAUGSEPOCTNOPDES A. FIRST STAGE 0.5 1. Management Commitment 0.5 2.Member of Work Group0.5 3.Socializations0.5 4.Scope of Certification0.5 B. SECOND STAGE4 1.Training ISO 9001:20001.5 2.Develop the Quality Manual2.5 3. Develop the Procedure, Work Instruction 3.25 4.Socialization of documents2 Fig. 5 Implementation Steps Table D. SCOPE & PROCESS OF ISO CERTIFICATION (cont)

19. WBI/InWEnt, Kampala, 24-27 July, 2007 - ISO Workshop No. DESCRIPTION TOTAL MONTH 2005 JANPEBMARAPRMAYJUNJULAUGSEPOCTNOPDES A. THIRD STAGE 3 1. Implementation System 2.5 2.Revision of Documents1 3.Internal Audit Training0.25 4.Execution of Internal Audit1 5.Corrective & Preventive Actions1 6.Management Review Meeting0.25 B. FOURTH STAGE3 1.Determine Certification Body1 2.Pre Audit0.5 3.Corrective & Preventive Actions0.5 4.Final Audit0.5 5. Accepted the ISO 9001:2000 Certificate - Fig. 5 Implementation Steps Table D. SCOPE & PROCESS OF ISO CERTIFICATION (cont)

20. WBI/InWEnt, Kampala, 24-27 July, 2007 - ISO Workshop Fig. 6 ISO 9001:2000 CERTIFICATE D. SCOPE & PROCESS OF ISO CERTIFICATION (cont)

21. WBI/InWEnt, Kampala, 24-27 July, 2007 - ISO Workshop E. PROBLEMS & SUCCESS FACTORS DEVELOPMENT PHASE 1.Difficulties in “translating” ISO 9001 elements into water treatment plant management activities. 2.The limitations of human resources and experience in applying the ISO 9001. IMPLEMENTATION PHASE 1.Reluctance to improve or change 2.Quality management system is seen as another managerial burden. 3.Lack of discipline in documentation I. PROBLEMS DURING THE IMPLEMENTATION PHASE

22. WBI/InWEnt, Kampala, 24-27 July, 2007 - ISO Workshop 1. Prime commitment from the lowest to the highest staff level in the company. 2.The staff in the company is aware about ISO 9001:2000 standards. 3.High staff motivation and discipline. 4.Team building and co-operation II. KEYS SUCCESS FACTORS E. PROBLEMS & SUCCESS FACTORS (cont)

23. WBI/InWEnt, Kampala, 24-27 July, 2007 - ISO Workshop F. BENEFITS OF ISO 9001:2000 CERTIFICATION Internal : 1.Improvement in the company’s performance 2.Better working methods 3.Main tasks are undertaken more efficient and effective. 4.Media of continual improvement External : 1.Increase of customers satisfactions 2.Stakeholders and customers’ complaints are handled and anticipated better and better 3.Appreciation from external parties to the company’s existence are increased.

24. WBI/InWEnt, Kampala, 24-27 July, 2007 - ISO Workshop F. BENEFITS OF ISO 9001:2000 CERTIFICATION (cont)

25. WBI/InWEnt, Kampala, 24-27 July, 2007 - ISO Workshop Hour Fig. 8 Breakdown Time Maintenance Before After F. BENEFITS OF ISO 9001:2000 CERTIFICATION (cont)

26. WBI/InWEnt, Kampala, 24-27 July, 2007 - ISO Workshop Before After Fig. 9 Water Turbidity F. BENEFITS OF ISO 9001:2000 CERTIFICATION (cont)

27. WBI/InWEnt, Kampala, 24-27 July, 2007 - ISO Workshop Fig. 10 Water Chlor Residue ppm Before After F. BENEFITS OF ISO 9001:2000 CERTIFICATION (cont)

28. WBI/InWEnt, Kampala, 24-27 July, 2007 - ISO Workshop KIND OF AUDITDATE OF AUDIT GRADE/No. OF FINDINGS TOTAL MAJOR NC MINOR NCRCSFIxLRQA Final Audit25 – 26 Oct 2005--87-15 Surveillance Audit 116 May 2006--22-4 Surveillance Audit 228 Nov 2006--31-4 Fig. 11 Audit Findings Note : 1.Major NC= Major Non Conformity 2.Minor NC= Minor Non Conformity 3.RC= Requires Correction 4.SFI= Scopes for Improvement 5.xLRQA= Issue for Follow-up by LRQA at next visit Audited by Lloyd’s Register Quality Assurance F. BENEFITS OF ISO 9001:2000 CERTIFICATION (cont)

29. WBI/InWEnt, Kampala, 24-27 July, 2007 - ISO Workshop G. WHAT NEXT? ON GOING : 1.Implementation of safety management system (OHSA 18000) 2.Improve the internal audit 3.Improve the working efficiency and effectively 4.Paperless System for all documents of the quality management system NEXT STEPS : 1.Implementation of total productive maintenance (TPM) 3.Online monitoring system 4.Web based data management

30. WBI/InWEnt, Kampala, 24-27 July, 2007 - ISO Workshop THANK YOU!