1. Implementing a Quality Management System
A Financial Perspective By
Cecil D. White
World Quality Day Symposium – Nov. 10, 2011

2. Presentation Topics Defining the QMS? The benefits? The Costs?1
Defining the QMS? 2
The benefits? 3
The Costs? 4
Is it worth it?

4. What is a Quality Management System?
Policies,
Processes
Procedures

5. What is a Quality Management System?
Required for planning and executing business processes
To meet customer requirements
Accredited to International Standards by a Registrar
ISO 9001:2008 is an example

6. A Cultural Transition

7. A PHILOSOPHY

8. Change

9. Leadership Determination Resilience Commitment Engagement
It Requires …..
Leadership
Determination
Resilience
Commitment
Engagement

10. Requires Leadership

12. RESILIENCE

14. How to Engage your Employees?

15. It Requires …..
Trust
Inspiration
Openness
Training
Incentives

16. Create a Trusting Environment

17. Be Inspirational

18. Be an Excellent Communicator

19. Create a Learning Evironment

20. Offer Rewards & Recognition

21. What are the benefits?

22. Success Determined by State of Preparedness Size of Organization
Complexity of processes

23. Quality Management Guidelines for
ISO STANDARD 10014:2006
Quality Management Guidelines for
realizing financial and economic benefits

24. A Strategic Choice
Effective Application of ISO 9000 QM Principles = Financial & Economic benefits
Financial benefit results from cost-effective management practices within the organization.
Economic benefit results from improvements in the overall worth and health of the organization.

25. ISO 9001 Management Principles
Customer Focus
Leadership
People Involvement
Process Approach
Systems Approach
Continual improvement
Factual Approach to Decision Making
Mutually Beneficial Supplier Relationships

26. Derived Benefits
improved profitability, improved revenues, improved budgetary performance,
reduced costs, improved cash flow, improved return on investment,
increased competitiveness, improved customer retention and loyalty, improved effectiveness of decision making, optimized use of available resources,
heightened employee accountability, improved intellectual capital, optimized, effective and efficient processes,
improved supply chain performance, reduced time to market,
enhanced organizational performance, credibility and sustainability.

27. Realization of Benefits
OUTPUTS
INPUTS
PROCESS

28. The Inputs Customer Focus Leadership People Involvement
Process Approach
Systems Approach
Continual improvement
Factual Approach to Decision Making
Mutually Beneficial Supplier Relationships

29. The Process Assess requirements, Plan activities,
Allocate appropriate resources,
Implement continual improvement actions,
Measure results to determine effectiveness,

30. Output / Result Financial Benefits improved profitability,
improved revenues,
improved budgetary performance,
reduced costs,
improved cash flow,
improved return on investment,

31. Increased Productivity

32. Everyone Wins

33. Everyone Wins

34. What are the costs?

35. Costs Determined by State of Preparedness Size of Organization
Complexity of processes

36. Costs
Registrar
Internal

37. Registrar Auditor’s Fees & Expenses Application Fee Registration Fee
Initial Assessment
Registration audit
Surveillance Audits
Re-registration

38. Internal Cost Sensitization Gap Analysis Training Documentation
Implementation
Internal Audits
Consultant

39. Beware of
The
Iceberg
Effect
Only 10%
Visible

40. Is it worth it?

41. Implementing ISO 9000:2001
A Case Study

42. NHF 2003 Government Agency Startup company Provision of benefits
Customer base – 150,000
Single location
Employees - 34

43. Steps to ISO 9000 Certification
Hire Quality Management Consultant
Conduct Gap Analysis
Establish Quality Policy
Redefine Business Processes
=> 3 Core Processes
Individual Benefits
Institutional Benefits
Health Promotions

44. Steps to ISO 9000 Certification
Company Wide Quality Seminar
Prepare Quality Manual (electronic records)
Quality Policies
Quality Objectives
21 Procedures
Establish Quality Metrics
Prepare Work Instructions

45. Steps to ISO 9000 Certification
Quality Training for ALL
Audit Training (34 employees)
Appoint Lead Auditors
Conduct Pre-Assessment Audits (2)
Contract Registrar
ISOQUAR Ltd (2005 – 2009)
NCBJ (2009 – present)

46. Steps to ISO 9000 Certification
Registration Audit
Audit Training (34 employees)
Conduct Internal Audits
2 per year
Surveillance Audits
Re-Registration Audits
2008, 2011

47. How much does it cost?
First Year – US$ 18,000
Annual – US$ 5,000

48. How much does it cost?
First Year – US$ 18,000
Annual – US$ 5,000

50. Our Experience A QMS involves more that HARD measures of quality
SOFT Measures
Teamwork
Empowerment
Management style
Working environment

51. Lessons Learnt Shift in Management Philosophy
Culture of Continuous Improvement
Training is Key
Effective Communications
Recognition of Achievements
Results in Improved Productivity

52. NHF UPDATE Expansion through Merger Mature organization
Provision of benefits, Supply Chain, Retail Pharmacy
Customer base – 450,000
Multiple Locations
Employees - 250

54. THE END