Requirements on Management Responsibility - Case Study Example

Complying with ISO 9001 Section 5: Requirements on Management Responsibility Name Institution Date Table of Contents Table of Contents 2 Complying with ISO 9001 Section 5: Requirements on Management Responsibility 3 Introduction 3 Management Commitment 3 Customer Focus 5 Quality Policy 7 Quality Objectives and Planning 9 Responsibility, Authority and Communication 10 Management Review 12 Conclusion 15 References 16 Complying with ISO 9001 Section 5: Requirements on Management Responsibility Introduction Management responsibilities involve the entire activities within the business and factors in the external environment that affect the business. It does not only revolve around making difficult decisions but the right decision. According to Daft (2012), managers are responsible of product quality to consumers, the profitability of the business and the general society. These activities contribute to the major role of bringing together all organization functions and work together towards achieving the organization goals. International Organization for Standardization (ISO) 9001 section 5 provides the requirements that top management in an organization are expected to adhere to for a successful management. This includes the management commitment, focus on customers, service and product quality, management responsibility and authority and the general management review. Management Commitment ISO 9001 Quality management system oblige the management to display commitment in developing and implementing a quality management system within the business. It provides that this function of the organization must ensure that the system is continually under improvement. The requirements further explain that this commitments need to be supported by evidence from the management. Chalk (2008) states that, the management evidence of commitment involves both verbal communication and actions. The commitment of management ensures a successful co-ordination on the part of other organization functions. Due to changing times, ways of management and technologies, the management needs to constantly improve the quality of their management system in order to catch up with the changes. The standards provide that evidence can be shown through management communication efforts to other organization functions. The management needs to communicate to the functions the importance of meeting the consumers’ needs. It is also obligated to inform the organization on statutory and regulatory obligations. According to Daft (2012), information ensures awareness and provides a better working environment when everyone understands what is expected of them and what they are working towards achieving. Arella (2012) states that getting into agreements does not necessarily mean an assurance of performance and delivery. However, agreements are to be honored but it is much easier when a task is communicated. Communication with the client is also necessary incase there is a default from a previous agreement. Communication of legal requirements to organization staff ensures accountability in case of defaults on their part. The management is also required to establish quality policies in the organization according to section 5.3 of the ISO 9001 standards. This is another indicator of their commitment to developing a quality management system. The management together with a group of professionals is required to come up with a set of targets on how it will realize a quality management system. This document states the level of performance for organization departments, suggestive ways of meeting the required quality and duties of the specified department. Nestle Company, in their quality management system statement believes that delivering quality is embraced by everybody. The company considers quality as not only being the objectives the set on the paper, but living and practicing the written document. Another evidence of management’s commitment to a quality management system is ensuring that the organization establishes quality objectives. ISO 9001 section 5 provides that the objectives must not deviate from the policies and must target consumer requirements. This ensures compliance to consumer requirements, regulatory and statutory requirements or the organization. Chalk (2008) considers quality objectives as a determinant for improving strategic performance. These objectives also give the management an upper hand during planning and decision making. The management also needs to ensure that its staff knows the objectives and guarantee consistency, comparing the objectives with performance. It is up to the management to conduct management reviews to show commitment on developing and improving quality management systems. ISO 9001 section 5 requires that management conducts management reviews at least once in a year under normal circumstances as an indication of their commitment. Another indication of commitment provided by ISO 9001 is in section 6 which requires that the management ensures availability of resources in the organization. This includes human, physical and financial resources. Section 6.1 states the provision of resources; section 6.2 specifies human resources acquisition and maintenance of their competence through training. Customer Focus Customer focus involves identifying what an organization customers want, setting strategies and working towards fulfilling the requirements. ISO 9001 section 5.2 define customer focus as one of the management responsibilities. It requires that top management to recognize customers’ requirements and work on performing them to meet their satisfaction. Consumer satisfaction means that the organization has met consumers’ expectations of service or product delivery. However, Tricker (2012, p.84) states that, a focused organization with a quality management system will focus on getting achieving more than consumer expectations and not just their expectation level. ISO Clause 7.2.1 requires that the organization determine a product’s requirements. It needs to consider what customers want in a product, in terms of its quality, how they want them delivered and any services they expect after they purchase products form the organization. Consumers may not specify certain requirements in a product, or fail to state the requirements (Myhrberg et.al, 2010, p.59). The ISO Clause requires that the organization identifies the unspecified requirements that are essential in the product and understand it. Other than consumer requirements, every organization operates under legislation and is registered so as to sign the agreement of being governed. ISO Clause 7.2.1 requires that the top management identifies any legal requirements that govern their products in addition to consumer requirements. The organization management also needs to identify their own requirements of the products a part from the ones that other stakeholders provide. Singhal & Singhal (2008) note that, by developing a relationship and clear understanding between the organization and its customers, quality is established. The organization needs to know what they are to provide in order to meet customer needs. Mistakes made in establishing the understanding will lead to hiccups in the future. ISO Clause 8.2.1 defines customer satisfaction as a basis for measuring the quality of an organization’s management system. This involves identification of what needs to be satisfied, monitoring the process of delivering satisfaction and finally measure the level of satisfaction and comparing it to performance. Comparing performance is an analysis procedure to determine whether the organization has met or is working towards meeting the quality requirements. Organizations determine their own customer satisfaction measurement models. Customer complaints indicate that quality is being jeopardized. Other measures can be product returns from customers, benchmarking procedures, acquiring first-hand information from consumers, analyzing consumer performance reports and conducting customer surveys. Quality Policy ISO 9001 section 5.3 provides the management requirement for establishing organization quality policy. The policy involves the top management’s statement of its intentions to realize quality in the company’s procedures. These are major tools that the management needs to employ in leading the organization towards quality in production and company procedures. Most organizations prefer written policies for record purposes and serve as reference. According to Dawson (2008), clarification of organization intentions of operation and stating the goals that they are working towards ensure effectiveness towards achievement. Quality policy is not just a slogan in the organization, but measurable of its effectiveness by way of comparing performance if the quality management system. ISO 9001 requires that the policies be set according to organizations’ goals. The set policy need to be relevant to the purpose of operation of the organization. It is the responsibility of the top management to ensure that the policy constitutes commitment. It should indicate the commitment that the organization has towards meeting the ISO requirements and consistency of improving them. Organisation quality objectives are established from the set quality policy. Therefore, the management must ensure that the set quality policy provide a basis for the formulation and constant review of quality objectives. Another requirement for the quality policy is communication by the top management. The management must communicate to all its staff of the set quality policy and make sure that they understand (Singhal & Singhal, 2008, p. 67). Section 5.3 of ISO 9001 provides that quality policy must provide for constant reviewing of its suitability for the organization. ISO Clause 4.2.1 (a) was the first ISO documentation requirement for quality policy. It considered an organization’s quality statement as a document that controls the organization’s operations. Quality objectives support the document and emphasizes on attainment of quality. A quality policy must contain a statement of fulfilling consumer satisfaction and a statement indicating constant improvement of the policy over time. The management needs to establish a quality policy and maintain a constant evaluation of its effectiveness. Quality Objectives and Planning It is the responsibility of organizations’ top management to establish quality objectives and plan according to ISO 9001 section 5.4.1 and section 5.4.2. Quality objectives are formulated from the quality policy. In measuring how effective the quality management system of an organization is, measuring its performance towards its quality objectives is vital (Schlickman, 2003, p. 237). ISO 9001 section 4 provides the requisites for an organization’s quality objectives. The objectives need to be in line with the set quality policy of the organization in order to ensure commitment to performance of quality. The objectives must also be measurable and assured of constant improvement of the objectives. The Clause also provides that the objectives need to aim at achieving consumer satisfaction requirements. Quality requirements are provided for by the law, consumers and the organization itself through product quality development procedures. The top management therefore needs to consider these requirements too in establishing the quality objectives. Quality objectives must provide for monitoring and review procedures periodically to analyze results of performance. In case targets have not been met by the organization for the set objectives, the organization must install corrective measures and improvement procedures if results are positive. The results review must be included in management review. Quality management Planning is provided for by section 5.4.2 of the ISO 9001. It states that it is the responsibility of the management to planning in the organization meet the general requirements of organizational planning provided fro in the ISO 9001 Clause 4.1 requirements. This clause includes the procedure of planning that organizations need to observe for effectiveness. Planning also involves setting of quality objectives. During the planning procedure, the management must ensure that the reliability of the organization’s quality management system is preserved even as adjustments are made. The clause also requires that procedures are based on quality management system procedures of implementing planning. Planning in this case involves implementation of the ISO 9001 requirements for the first time and in addition, any changes in planning. Each organization must have systems of implementing these changes. Responsibility, Authority and Communication ISO 9001 section 5.5 provides the responsibilities, authorities and communication requirements for management and their staff. Section 5.5.1 requires that the top management ensures responsibilities within the organization are considered and adhered to by all staff at all levels. They should clearly identify, define and communicate these responsibilities to staff. In specifying these responsibilities and communicating them, managers are advised to have organizational charts, and job description documents. Job specification ensures that employees are accountable and committed to their lines of duties. Section 5.5.2 of ISO 9001 provides that the top management selects a representative to hold a management post. The representative of management is required to ensure that ISO 9001 process for quality management system (QMS) is determined, put in place and preserved. The representative is also obligated to the top management. They are required to give an account of the ISO 9001 QMS status and advise in case there is need for its development. The representative takes reports, analyses the reports and forwards them. They are also closer to employs and receive employee records from their department seniors. This enables them to make a better analysis. It is the responsibility of the representative to sensitize the organization of the ISO 9001, customer and legal requirements. Sensitization and continuous reminder may include training of staff, posting circulars as reminders and engaging the organization in programs that will improve their understanding and serve as reminders. Sensitization of organization functions on customer requirements enables them to deliver quality from their respective areas of work. Mastering legal obligations ensures accountability and compliance to the laws. The management representative also needs to be a contact person between the business and the external environment in relation to quality management system. Contact person responsibilities include harmonization of audits with customers and the manager in charge of International Organization for Standardization. Internal communication is another aspect of a quality management system as defined by ISO 9001 section 5.5.3. It is the responsibility of the top management to ensure methods of communication are established and written in documents for record and referring purpose. According to Turner & CIPD (2003, p. 42), communication includes from top management downwards, from the bottom level to the top and communication within the same level of authority. The ISO requirements consider that organizations carry out the internal communication activities through meetings at the top management level, meetings within departments and interdepartmental meetings. They should ensure that minutes are written during these meetings as a record and proof of their conformity to the internal communication requirement. Management review meeting is another requirement of internal communication that proves effectiveness of the Quality management system. Harrison (2000, p. 116) states that internal communication in an organization can involve memos, impromptu meetings or training programs. The top management should ensure that records of these meetings are kept and are focused towards maintaining a quality management system. Management Review ISO 9001 section 5.6 provides that the top management carries out a management review as one of the measures for a n effective quality management system. It is a significant ISO 9001 requirement since all decisions made in an organization are as a result of the management review. Management review is the pillar to planning in an organization. It guides the top management through the planning process (Robitaille, 2002). The management review system starts with the selection of parties for the process through discussions and agreements. This requires that the organization currently available information and resources be used together with other necessary data that can be possibly gathered. Items that require reviewing are then selected and possible actions established. ISO 9001 section 5.6.1 provide for the general management review by the top level management. The requirement states that, the top management is obligated to review the ISO 9001 quality management system at least once a year and at scheduled periods. This review enables the management to determine how suitable the ISO 9001 QMS is to the organization. The quality management system should remain suitable to the organization. A review serves as a proof to ensure the suitability is sustained. Establishing suitability is another reason for the management review requirement. ISO 9001 requires that a management review ensures that the quality management system is effective in the organization. There will be no essence of implementing a QMS in the organization if it is not going to be effective to the organization needs. A management review also enables the top management to identify any possible changes that the system requires. These changes improve the effectiveness of the QMS. It therefore serves as an opportunity for improving the ISO quality management system in the organization. ISO 9001 section 5.6.1 requires the top management to carry out a general management review so as to guarantee the suitability of quality objectives and quality policy in the organization. Section 5.6.2 of ISO 9001 provides that the top management must conduct a management review with seven major inputs. The management should include audit reports in the management review. This includes the audits conducted internally by the organization, second-part audit conducted by consumers and that conducted by the ISO certification body. Consumers provide feedback to the organization in terms of their comments and judgments regarding organization performance. According to Schlickman, (2003), the feedbacks must be included in the management review by the top management. The process performances and product conformity reports need to be included too. CAR production reports and CAR audit reports are among the preventive measures reports that the top management must include in the management review. The top management is required to use the status of the measures fro control and prevention while reviewing the QMS. They also need to follow up activities of previous management review. This is done through implementation of suitable procedures for the follow-up. The review will include any suggested possible changes likely to affect the quality management system of ISO 9001. These changes are then implemented after analytical discussions by the management. Participants in the management review can suggest any improvement measures for the system. The requirements of ISO 9001 provide for out put review in section 5.6.3. It requires that the management carries out a review as a motivating factor to the ISO quality management system and for its improvement. The review provides results (output) that benefit the general system. Minutes of the meetings are one of the results and act as proof of compliance. The review finds out ways of improving the system. Relevant opportunities are identified by the participants and recorded. These opportunities improve the effectiveness of the system. Participants in the management review identify possible requirements for products by consumers from the consumer reports and suggestions. This improves the product and improves product conformity to quality as provided for by the ISO 9001(Singhal & Singhal (2008). Management review enables the top management to identify any resources needed in the organization in order to ensure there is effectiveness in the ISO QMS (Mutafelija & Stromberg, 2003, p. 72). From the meeting, these resources are indentified from reports and discussions with departments. They determine if the human resource is enough for the organization intended activities if there is need for recruiting. In case there is any training needed, the management review process will identify it. Capital resources are another resource that the management review will identify. It identifies if there is any machines or infrastructure that the organization needs. Conclusion Complying with the requirements of ISO 9001 section 5 enables the management of an organization to be committed to their responsibilities and effectiveness of the quality management system. Quality policy statement allows compliance and provides the basis for formulating objectives. Understanding the responsibility authority and communication requirement by the management helps them in managing the organization better through clarification of staff responsibilities and effective communication. A management review provides for analysis of the general organization and through reviewing of reports and results the organization is able to forge ahead. References Arella, D. (2012). Managing by commitments- 5 steps descriptive practices to improve excecution. Retrieved on 14 November, 2012 from http://www.managementexchange.com/hack/commitment-based-management-20-making-and-keeping-commitments Bretta, K. (2008). Management commitment: Its not all about delegating. Quality digest magazine. Chalk, D.K (2008). Management by Commitment: Other Books Have Told You What to Do - This Book Will Tell You How!House Daft, R. L. (2012). Management. Mason, Ohio: South-Western Cengage Learning. Dawson, S (2008). ISO 9001 compliance : 5.3 Quality policies. Core Business Solutions Inc. Retrieved on 15 November, 2012 from Harrison, S. (2000). Public relations: An introduction. London: Thomson. Mutafelija, B., & Stromberg, H. (2003). Systematic process improvement using ISO 9001:2000 and CMMI. Boston, Mass. Artech House. Myhrberg, E. V., Crabtree, D. H., & Hacker, R. (2010). A practical field guide for AS9100C. Milwaukee, Wis: ASQ Quality Press. Proffessional ISO 9001 trainning center. (2011). ISO 9001 section 5 management Responsibility. Retrieved on 13 November, 2012 from Robitaille, D. E. (2002). The management review handbook. Chico, Calif: Paton Press. Schlickman, J. J. (2003). ISO 9001:2000 quality management system design. Boston: Artech House. Singhal, D & Singhal, K.R (2008). Implementing ISO 9001:2008 Quality Management System A Reference Guide. PHI Learning Pvt. Ltd object Policy. Retrieved on 12 November, 2012 from < http://www.qualitydigest.com/inside/quality-insider-article/management-commitment.html > Tricker, R. (2012). ISO 9001: 2000 for Small Businesses. Routledge Turner, P., & Chartered Institute of Personnel and Development. (2003). Organisational communication: The role of the HR professional. London: Chartered Institute of Personnel and Development Read More