ISO 9001:2000 QUALITY COMPANY MARK PITOUT MAGISTER

I SO 9 001 : 2 0 00 QUALITY MANAGEMENT IN A

CONSULT ING ENGINEERING COMPANY

B Y

MARK P ITOUT

A D I S S E R T AT I O N S U B M I T T E D I N PA R T I A L

F U L F I L M E N T O F T H E R E QU I R E ME N T S F O R

T H E DE G R E E

MAGISTER INGENERIAE

I N

ENGINEERING MANAGEMENT

I N T H E

FACULTY OF ENGINEERING AND

THE BUILT ENVIRONMENT

AT T H E

UNIVERS ITY OF JOHANNESBURG

N OV E M B E R 2 0 0 7

S U P E RV I S O R S :

P RO F. L . P R E T O R I U S

P RO F. J . H . C . P R E T O R I U S

ISO 9001:2000 QUALITY MANAGEMENT IN A CONSULTING ENGINEERING COMPANY

MARK PITOUT NOVEMBER 2007 II

A C K NOWL ED GEMENT S

My sincerest thanks and gratitude to:

My wife, Karien, for her love, support and patience.

My family, for their love and support.

Professor Leon Pretorius, for his guidance.

Richard Baard, for his support and assistance.

Roelene Botha, for convincing me to enrol in this masters degree program.

And above all, God.


MARK PITOUT NOVEMBER 2007 III

A B S T R A C T

This dissertation provides a study of ISO 9001:2000 based quality management in the

consulting engineering environment.

The motivation for carrying out this study was to assess why an ISO 9001:2000 based

quality management system was not operating effectively in a particular consulting

engineering company.

A brief literature study of the topic of Quality Management is given, as well as an

overview of the ISO 9001:2000 standard.

A case study is made of the particular consulting engineering company (called ABC

Projects as a pseudonym for the sake of confidentiality). The case study presents the results

of two questionnaires, one circulated among the employees of the consulting engineering

company, and the other circulated among the directors of the Group that owns the

company.

The case study also contains an assessment of the company’s quality management

system at the hand of the ISO 9001:2000 standard. The assessment highlights various

aspects of the company’s quality management system that needed to be improved.

The case study concludes with a 6-point plan aimed at improving the operational

procedures of the company, as well the quality management system used by the company.


MARK PITOUT NOVEMBER 2007 IV

T A B L E O F C O N T ENT S

ACKNOWLEDGEMENTS..............................................................................................................................II ABSTRACT................................................................................................................................................III TABLE OF CONTENTS...............................................................................................................................IV LIST OF FIGURES.......................................................................................................................................V LIST OF TABLES ........................................................................................................................................V LIST OF ABBREVIATIONS .........................................................................................................................VI

CHAPTER 1 : INTRODUCTION.............................................................................. 1

1.1 PROLOGUE..........................................................................................................................................1 1.2 PROBLEM STATEMENT.........................................................................................................................1 1.3 RESEARCH OBJECTIVES.......................................................................................................................2 1.4 RESEARCH METHODOLOGY.................................................................................................................3 1.5 CONCLUSION.......................................................................................................................................3

CHAPTER 2 : OVERVIEW OF QUALITY MANAGEMENT ............................... 4

2.1 INTRODUCTION ...................................................................................................................................4 2.2 HISTORY OF QUALITY .........................................................................................................................4 2.3 TOTAL QUALITY MANAGEMENT – A MODEL......................................................................................8 2.4 CONCLUSION.....................................................................................................................................12

CHAPTER 3 : OVERVIEW OF ISO 9001:2000 ..................................................... 13

3.1 INTRODUCTION .................................................................................................................................13 3.2 BACKGROUND...................................................................................................................................14 3.3 THE ISO 9001:2000 STANDARD .......................................................................................................17 3.4 AIMS AND BENEFITS OF ISO 9001:2000 ............................................................................................30 3.5 LIMITATIONS AND DISADVANTAGES OF ISO 9001:2000....................................................................32 3.6 CONCLUSION.....................................................................................................................................33

CHAPTER 4 : CASE STUDY - QUALITY MANAGEMENT IN ABC PROJECTS (A CONSULTING ENGINEERING COMPANY) ................................................. 34

4.1 INTRODUCTION .................................................................................................................................34 4.2 WHAT IS A CONSULTING ENGINEERING COMPANY?...........................................................................34 4.3 OVERVIEW OF ABC PROJECTS..........................................................................................................37 4.4 RESULTS OF THE QUALITY MANAGEMENT SYSTEM - EMPLOYEE OPINION QUESTIONAIRE.................38 4.5 RESULTS OF THE QUALITY MANAGEMENT SYSTEM - MANAGEMENT OPINION QUESTIONAIRE...........42 4.6 ASSESSMENT OF THE ABC PROJECTS QUALITY MANAGEMENT SYSTEM............................................47 4.7 IMPROVEMENTS THAT COULD BE MADE............................................................................................50 4.8 CONCLUSION.....................................................................................................................................53

CHAPTER 5 : SUMMARY, CONCLUSION AND RECOMENDATION ............ 55

5.1 SUMMARY .........................................................................................................................................55 5.2 CONCLUSION.....................................................................................................................................56 5.3 RECOMMENDATIONS FOR FURTHER STUDY.......................................................................................57


MARK PITOUT NOVEMBER 2007 V

BIBLIOGRAPHY..................................................................................................... 58

APPENDIX A. QUALITY MANAGEMENT SYSTEM EMPLOYEE OPINION QUESTIONNAIRE – AS COMPLETED BY THE EMPLOYEES OF ABC PROJECTS ............................................................................................................... 60

APPENDIX B. QUALITY MANAGEMENT SYSTEM MANAGEMENT OPINION QUESTIONNAIRE – AS COMPLETED BY THE MANAGEMENT OF THE ABC GROUP............................................................................................. 75

APPENDIX C. TRANSCRIPT OF THE INTERVIEW BETWEEN MARK PITOUT (THE AUTHOR) AND RICHARD BAARD (CHIEF OPERATING OFFICER OF ABC PROJECTS), 19 NOVEMBER 2007 ...................................... 82

L I S T O F F I G U R E S

Figure 2.1 Oakland’s model for TQM [3] .....................................................................................................9

Figure 3.1 Model of a process-based QMS [1] ...........................................................................................17

Figure 3.2 The Plan-Do-Check-Act methodology [3] ...............................................................................18

Figure 3.3 Generic model of a QMS............................................................................................................20

Figure 3.4 The QMS interacting with other processes in the organization ...........................................21

Figure 3.5 The product design and development process ........................................................................27

Figure 3.6 Cost of Poor Quality vs. QMS Cost [2] ....................................................................................31

Figure 4.1 Results of the QMS Employee Opinion Questionnaire ........................................................40

Figure 4.2 Results of the QMS Management Opinion Questionnaire ...................................................44

L I S T O F T A B L E S

Table 4.1 Results of the QMS Employee Opinion Questionnaire..........................................................39

Table 4.2 Results of the QMS Management Opinion Questionnaire.....................................................43


MARK PITOUT NOVEMBER 2007 VI

L I S T O F A B B R E V I A T I O N S

QMS : Quality Management System

QM : Quality Manual

TQM : Total Quality Management

ISO : International Organization for Standardization

PDCA : Plan-Do-Check-Act methodology

SAACE : South African Association of Consulting Engineers

ECSA : Engineering Council of South Africa

OP : Operational Procedure


MARK PITOUT NOVEMBER 2007 1

CHAPTER 1 : INTRODUCTION

1.1 PROLOGUE

Most businesses of today find themselves in a market, where they compete against each

other for customers. Competing organizations are evaluated based of their reputation for

Quality, Reliability, Price and Delivery. Of these factors quality is named as the most

important. [3]

But what is quality? How does one measure quality? How does one achieve quality?

Six Sigma provides the following definition for quality: “Anticipate and honour the

need of an intending user”. [11] This definition implies that the quality of a company is

dependant on the company’s ability to identify its customer’s need and then provide a

product or service that effectively satisfies that need.

The above definition of quality seems very simple; however it is the view of this author

that the implications of applying this definition in certain organizations can be very

complex.

Since the early 1950’s there have been many “Guru’s” that studied the concept of

quality and developed various philosophies and tools regarding the topic. [11] As a result

the notion of Quality Management was born, and many publications have been made on

this topic.

1.2 PROBLEM STATEMENT

In January 2003 the South African Association of Consulting Engineers (SAACE),

declared that all of its members shall “Implement and maintain a system of quality

management in their practices”. [7] The SAACE also names the ISO 9001:2000 standard as

“a comprehensive, internationally recognized common sense approach for managing and

controlling a consulting company” and recommends that consulting companies use it to

achieve quality in their operations. [7]



The ABC Group* (a member of the SAACE), adopted a quality assurance system based

on the ISO 9001:2000 standard. This system is to be used by all the member companies of

the group and is aimed at providing the companies with a Quality Management System

(QMS) that is to govern all of its operations, especially in the operation of delivering

engineering solutions to its clients.

Despite a strict company policy requiring its entire staff to cooperate and comply with

the system, ABC Projects† (a member of the ABC Group) has not yet implemented the

system successfully, nor has it attained ISO 9001:2000 accreditation.

1.3 RESEARCH OBJECTIVES

In this dissertation the author provides an overview of quality management and in

particular the ISO 9001:2000 standard by highlighting:

• The key aspects of the standard.

• The benefits / advantages of the standard.

• The limitations / disadvantages of the standard.

• The practical issues surrounding the implementation of the standard.

Furthermore the author makes an analysis of the implementation of the standard by

ABC Projects, and highlights the shortcomings and successes of their implementation.

At the hand of relevant research, the author also makes recommendations on how the

company could proceed to improve its quality assurance system and ultimately attain

ISO 9001:2000 accreditation.

* The ABC Group is a pseudonym for the sake of confidentiality.

† ABC Projects is pseudonym for the sake of confidentiality.



1.4 RESEARCH METHODOLOGY

Firstly the author provides a brief literature study of Quality Management as a whole,

highlighting the history of Quality, Total Quality Management, and ISO 9001:2000, and

their relation to each other.

Secondly the author provides a literature study on the ISO 9001:2000 standard,

highlighting the key aspects of the standard, the aims and benefits of the standard, the

structure of the standard and the limitations and disadvantages of the standard.

Thirdly the author provides a case study of the QMS in ABC Projects, evaluating it at

the hand of the ISO 9001:2000 standard.

In addition to this evaluation the author provides the results of two questionnaires that

were circulated in the company. One questionnaire was circulated among the employees of

ABC Projects, and the second among the management of the ABC Group.

Lastly the author provides his conclusions made from the study, the lessons learnt from

the study and also makes recommendations for further study.

1.5 CONCLUSION

In today’s competitive market quality has become a very important factor in the

survival of any organization, and since the early 1950’s the subject of quality management

has been widely studied and developed.

ABC Projects, a member of SAACE, has adopted a Quality Management System based

on the ISO 9001:2000 standard. However, ABC Projects has not yet implemented the

QMS successfully, nor has it attained ISO9001:2000 accreditation

This dissertation will provide and overview of quality management, and in particular

the ISO 9001:2000 standard. A case study of ABC Projects and its implementation of the

standard will also be presented.



CHAPTER 2 : OVERVIEW OF QUALITY MANAGEMENT

2.1 INTRODUCTION

In order to view the ISO 9001:2000 standard for quality management systems in

context, one should investigate the broader subject of quality management. Section 2.2

provides a brief overview of quality management, by highlighting the history of quality

management that led to the concept of Total Quality Management (TQM) as well as the

development of the ISO 9000 set of quality standards. Section 2.3 provides an overview of

a TQM model and highlights how ISO 9001:2000 standard forms part of that model.

2.2 HISTORY OF QUALITY

MEDIEVAL EUROPE

Before the industrial revolution of the early 19th century, goods were produced by

craftsmen that belonged to unions called guilds. Each guild had stringent rules that defined

the quality of products produced by its members. A product that passed the quality

inspection of the guild would be marked with a special symbol of that guild. In many cases

each craftsman would also mark his product with his own symbol. [6, 12]

These two symbols together with the reputation of the craftsman and the guild that he

belonged to, would indicate the quality of the product to the customer. In this era the

concept of quality was simple – Produce products that satisfy your customers or suffer a

bad reputation that will finally lead to the closure of your business.

THE INDUSTRIAL REVOLUTION

During the industrial revolution factories aimed at mass production and mass income

came into existence. Many of the smaller craftsman businesses were replaced by these

factories, and the craftsmen became employees in such factories. Initially quality was

achieved through skilled labourers and inspections. [12]



As time progressed the emphasis in factories became maximising productivity and

minimizing workforce, which led to a decline in quality. As a counter to this decline in

quality, factories created entire quality inspection departments that had the responsibility of

detecting and eliminating defective products before being released from the factory. [12]

In this era, the pride and reputation of the craftsmen gave way to mass production.

Quality was no longer an inherent part of the process of production, but rather an

afterthought. Rather than making sure that every product produced would satisfy the needs

of the customer, factories would only try to ensure that defective products were not sold.

EARLY 20TH CENTURY

In the mid 1920’s Walter Shewhart, a statistician for Bell Laboratories, developed

statistical methods for controlling quality. Shewhart’s approach was to evaluate the data

produced by manufacturing processes by using statistical techniques. Such evaluation then

indicated whether the manufacturing processes were operating correctly or not. [6, 12]

Shewhart’s methods of evaluating process related data by statistical techniques are

referred to as Statistical Quality Control (SQC). Shewhart’s SQC methods eventually led to

the development of modern day methods like control charts. [12]

The major difference between SQC and quality control techniques that were used

before it is that SQC focuses not only on the final product, but on the process that

produced it as well. [12]

During World War II the United States Army developed, with the aid of Bell

Laboratories, a standard for sample inspection of military equipment (MIL-STD-105). The

U.S. Army also promoted the use of SQC to its suppliers, and sponsored SQC training

courses. Despite this promotion of SQC most manufacturing companies only employed

SQC programmes to comply with the U.S. Army requirements, and terminated these

programmes when their contracts with the U.S. government expired. [6, 12]

Shewhart also introduced the Plan-Do-Check-Act (PDCA) methodology. [11] The

PDCA methodology forms the basis for the ISO 9001:2000 standard and is described in

section 3.3 of this dissertation.



TOTAL QUALITY MANAGEMENT

In the early years after World War II, Japan had a reputation for producing inferior

quality products, and most Japanese companies were unsuccessful in international markets.

As a result Japanese companies changed their view on quality, by broadening the focus of

their quality efforts to all their organizational processes. [12]

This approach of focussing on quality throughout the entire organization is called Total

Quality Management (TQM), and was developed by various “Guru’s” in the field of

Quality Management:

W.E. Deming - Developed a fourteen point plan, centred around changing the culture

in organizations to focus on quality. [13] His philosophy placed the majority of the

responsibility on the management of organizations to improve their business processes on

an ongoing basis. Deming also promoted the use of the Plan-Do-Check-Act methodology,

developed by Shewhart. [11]

Dr. J.M. Juran - Developed the quality trilogy which consists of three main items. [11,

14]

• Quality Control: Maintaining an established level of quality

• Quality Planning: Planning projects that are aimed at improving the quality of

processes within an organization

• Quality Improvement: Executing planned projects in order to establish a new

level of quality

Juran also considered each person involved in the processes of the organization as both

an internal supplier and an internal customer of the product, as it passed through the

various stages of manufacture.

Dr. K. Ishikawa - Developed the “seven basic tools of quality”, a set of analytical

diagrams and charts that are aimed identifying the cause of quality “problems” in the

organization. The most notable of these charts is the Cause and Effect diagram (or

Fishbone diagram). Ishikawa also advocated an organization-wide approach to quality. [11]



Dr. G. Taguchi - Promoted quality focused design that is aimed at developing

products that are impervious to variations in the production process. Taguchi believed that

quality problems needed to be solved at the design / development stage, rather than the

production or final inspection stages. Taguchi also developed the Taguchi Methodology – a

prototyping method aimed at optimising products during development. [11]

P. Crosby - As quality director of ITT, introduced two philosophies of quality namely

“Quality is free” and “Zero Defects”. Based on these philosophies he had four absolutes.

[3, 11, 15, 16]

• The definition of quality is conformance to requirements

• The system for achieving quality is prevention

• The standard for quality is zero defects

• The measurement of poor quality is the price of non-conformance

Crosby also offered his organization a 14-step program to improve quality. This

program revolved around concepts like management commitment and involvement,

communicating quality objectives throughout the company and continuous assessment and

improvement. [3, 11, 15, 16]

Ironically, in the second chapter of Crosby’s book “Quality is Free”, he makes the

statement that: “Unfortunately, the business of quality management is not all that easy.” [15]

Therefore quality management requires considerable effort. Effort implies time spent,

which in turn implies cost. Therefore quality is not entirely free. However by achieving

quality in one’s product, money can be saved in areas like maintenance and service costs,

and money can be made in other areas like repeat business from satisfied customers.

Therefore the effort, time and money spent on quality management, has a payback which

covers the expenditure and gives rise to the concept of “Quality Is Free”.



From the work of the “Guru’s” mentioned above one can see a common theme that

developed for the theory of TQM:

• Quality is a function that has to be driven by an organization’s management

• Quality is an organization-wide function

• Quality improvement is a never-ending cycle of assessment, planning,

implementation and re-assessment

THE ISO 9000 SET OF QUALITY STANDARDS

As a result of the increasing focus on quality in organizations around the world, the

International Organization for Standardization developed, in 1987, a set of standards

known as ISO 9000:1987. This set of standards has been reviewed and developed further

to produce sector specific standards, such as QS-9000 for the automotive industry, AS9000

for the aerospace industry, and ISO 14000 for environmental management. [12]

The process of refining the ISO 9000 set of quality standards to its current form

(ISO9000:2000) also led to ISO 9001:2000, an internationally recognized standard for

Quality Management Systems (QMS’s). An overview of ISO 9001:2000 is provided in

Chapter 3 of this dissertation.

2.3 TOTAL QUALITY MANAGEMENT – A MODEL

John S. Oakland presents in his book (TQM, Text with Cases - 3rd Edition) [3], a model

for TQM. This model is based on what he calls “The four P’s and three C’s of TQM” and

is provided in Figure 2.1.

In this model the four P’s represent the “hard management factors” that have to be

considered when TQM is practiced in an organization. The three C’s represent the “soft

management factors” that need to be integrated into the four P’s, in order for TQM to be

effective. [3]



Performance

ProcessPeople

Planning

Culture

Commitment

Communication

Figure 2.1 Oakland’s model for TQM [3]

It is the author’s opinion that Oakland’s model for TQM, elegantly ties the key aspects of

TQM together. Figure 2.1 provides only a high-level view of this model; so in order to

understand the model better, one must study the four P’s and Three C’s of the model.

Oakland provides a detailed description of this model in his book (TQM, Text with Cases -

3rd Edition). Here follows a brief overview of the model:

PLANNING

Planning for the implementation of TQM should include a review of the entire

organization. This review focuses on the organization’s mission and vision, processes, sub-

processes and structure. The mission and vision of the organization determines the goals of

the organization, while the processes and structure determines how the organization

achieves those goals. Consideration must be given to how each of these facets of the

organization impacts on quality. [3]



The resources that the organization uses in its processes (including those resources

sources from other organizations / suppliers) also need to be considered. An organization

should establish policies or rules that govern the sourcing and management of resources or

materials from suppliers, with the focus again being on the impact on quality. The

organization can choose to form partnerships with suppliers that adhere to these policies.

[3]

Products, services, processes, and organization structures are realized from designs. As

per the philosophy introduced by Dr. G. Taguchi, quality is introduced during the design

phase of these factors, rather than during the realization phase. Quality can be introduced

into designs by various methods, such as Quality Function Deployment (QFD) and Failure

Mode, Effect and Criticality Analysis (FMECA). [3, 11]

PERFORMANCE

As part of an organizations continuous improvement (the PDCA cycle) the

performance of the organization and its processes must be measured. For this

measurement an appropriate framework needs to be established to make measurements at

four levels: Strategic level; Process level; Individual Performance level; and Review level. [3]

Measurement frameworks have associated costs in their development and

implementation. These costs need to be balanced with the value that they add to the

organization. [3]

Various models like the Deming Prize, the Baldrige Award, and the European

Foundation for Quality Management Excellence Model are available for organizations to

perform self-assessment. These models can be used in a number of approaches, including

workshops, audits, surveys, etc. [3]

Benchmarking is another technique that can be used to measure an organization’s

performance. During benchmarking an organization compares its operations, products, and

services to those of a competitor, to industry standards, or internal standards. The purpose

of benchmarking is to establish the perspective of how well an organization is doing

compared to its competitors, to challenge current practises and standards, and to set goals

for improvement. [3]



PROCESSES

All activities in an organization can be viewed as processes. Managing the core

processes of the organization provides the key to improve performance. To help the

managers understand their organization’s processes better, flowcharts can be used to

graphically document the processes. In some cases it may be necessary to completely re-

design certain processes as the organization changes with time. [3]

In order to manage the quality of an organization, its processes and its products or

services, an appropriate Quality Management System (QMS) must be established. The ISO

9000:2000 set of standards (including the ISO 9001:2000 standard) provides an

international standard for such QMS’s. The QMS should follow the PDCA methodology.

[3]

The ultimate goal of the QMS is continuous improvement of the organization’s

processes. This improvement can be implemented by various methods such as Pareto

analysis, cause and effect analysis, matrix diagrams, Taguchi methods, etc. [3]

PEOPLE

The most valuable resource in an organization is its people. Organizations that place

emphasis on quality also align their Human Resource Management (HRM) policies with the

strategic goals of the organization. Employees should be empowered by and involved in

their organization. Employees should also be trained to have the skills they require for their

work. [3]

Process management and improvement is generally achieved by teams of people. The

success of such teams depends on factors like composition and dynamics, leadership, clear

objectives, and reviews. Teams go through four phases before they become truly effective.

These phases are: Forming; Storming; Norming and Performing. [3]

In order to sway the employees of an organization to accept the TQM approach,

effective communication with those employees must be achieved. The quality strategy and

goals must be clearly communicated from top management to all employees. Employees

must be educated to understand their role in the TQM process, as well as the benefits that

the TQM process offers. [3]



The combination of empowered and trained employees, well structured teams that also

perform well, and adequate communication of the organization’s quality strategy, will

create the right sort of culture for quality and also make the employees committed to the

TQM efforts of the organization. [3]

2.4 CONCLUSION

The history of Quality Management dates back to the industrial revolution, where the

method of production shifted away from individual craftsmen to factories. Quality

management developed from the initial method of inspecting the final product for

conformance to requirements, to making quality the focus of all aspects of organizations.

[6, 12] Various methods and models were developed to achieve quality in all aspects of

organizations, and the concept became known as Total Quality Management. As a result of

this focus on quality management the ISO 9000:2000 family of international standards were

developed. [11, 12]

Oakland’s [3] model for TQM provides a framework for understanding, developing

and implementing TQM in an organization. In this model there are four P’s (Planning,

Performance, Processes and People), that represent the “hard management issues” that

need to be considered, while the three C’s (Communication, Culture and Commitment)

represent the “soft management issues”.

As part of the “Processes” leg of the Oakland Model [3], an effective Quality

Management System (QMS) needs to be established in the organization, in order to manage

and improve the quality of the organizations processes and its products. The ISO

9000:2000 family of standards provides a framework for such QMS’s that may be

implemented by organizations across the world.

An overview of the ISO 9001:2000 standard is provided in the next chapter.



CHAPTER 3 : OVERVIEW OF ISO 9001:2000

3.1 INTRODUCTION

As ISO 9001:2000 is quoted by the South African Association of Consulting Engineers

(SAACE) as the recommended quality management standard to be used by a consulting

engineering company [7], it will be the focus of this study.

ISO 9001:2000 is also internationally recognised as the standard for quality

management due to the fact that it was produced by the International Organization for

Standardization (ISO).

In this chapter the author will provide background of the standard including the history

of the standard, and how the standard evolved from its previous versions to the current

ISO 9001:2000.

The author also takes an in-depth look at key aspects of the ISO 9001:2000 standard,

which include:

• The quality management system.

• Management responsibility.

• Resource management.

• Product Realization.

• Measurement, Analysis and Improvement.

Lastly the aims and benefits of the ISO9001:2000 standard are discussed, as well as the

limitations and disadvantages.



3.2 BACKGROUND

WHAT IS ISO?

The acronym ISO stands for “International Organization for Standardization”. It is an

international federation of national standards bodies, that develops standards by using

technical committees composed of representatives of each member body. [1]

One of ISO’s aims is to develop standards that are internationally applicable, and

provides a common “set of rules” for organisations to be governed and measured by. [2]

The ISO 9001:2000 standard, for example, is applicable to quality management, and

provides that “set of rules” that organisations can use to create, operate and maintain their

QMS.

The “set of rules” are also used to measure how well a specific organization’s QMS

performs, and the organization attains ISO 9001:2000 accreditation based on that

measurement. In certain industries it may be critical for an organization to attain this

accreditation, as their customers may insist on only dealing with organizations that are ISO

9001:2000 accredited.

HISTORY OF THE ISO 9001:2000 STANDARD

Ray Tricker [2] offers a very concise overview of the history of the standard in his book

ISO 9001:2000 for Small Businesses (3rd edition). Highlights of this history are given here:

The first version of the standard was released in 1987 as the ISO 9000:1987 set of

standards, and it was based to a large extent on the British Standard BS 5750, parts 1 to 3.

After its release various other standards bodies, adopted the text without changes and

republished it under their own naming convention (such as EN 29000:1987 as the

European version of the standard and BS 5750:1987 as the British version). [2]

As the standard grew in popularity, it also became more apparent that there were

certain elements missing. In 1994 the standard was revised and published as ISO 9000:1994

which consisted of 20 elements that had to be addressed in a QMS. However there were

still some problems with the standard. For instance, complying with the standard did not

implicitly mean that an organization would deliver services or produce products that were



of a high quality. It only ensured that the services and products were of a consistent quality.

In other words, if an organization that continually produced a poor quality product, could

still comply with the standard. [2]

As ISO 9000:1994 grew more popular it became apparent that the standard provided a

good base to start from, for organizations that wanted to implement QMS’s, but additional

effort and further development of their QMS’s was required for it to be of benefit.

Furthermore there were parts of the standard that an organization could ignore, and still

maintain the quality of their product. Therefore further revision of the standard was

required. [2]

The ISO maintains a policy whereby all international standards are reviewed five years

after publication, to determine if the standards are still applicable. To this end the ISO

assigned its technical committee No. 176 (also known as ISO/TC176), to conduct a survey

of the ISO 9000:1994 standard with the aim of discovering the problems with the standard

and the requirements for the revised standard. The committee was also to investigate how

the standard could be revised to complement environmental management and health and

safety standards. [2]

The survey indicated several improvements that needed to be made during the revision

of the standard. The most notable of these improvements were that the standard had to be

[2]:

• More flexible to accommodate organizations of all types and sizes

• Clearer and easier to understand

• Based on a process model

• More compatible with other management system standards

• Aimed at continual improvement and increasing customer satisfaction

ISO 9000:1994 was also a set of standards consisting of four parts ISO 9001:1994 ,

ISO 9002:1994 , ISO 9003:1994, ISO 9004:1994, which created some confusion as to

which one was applicable for certification. To this end two overall standards were created:

ISO 9001:2000, which combined the first three of the aforementioned standards and

addressed the requirements of a QMS, and ISO 9004:2000 which was a revision of the last



standard of the set, and addressed the gradual improvement of an organisations overall

quality performance. [2]

Based on the requirements that were identified in the survey conducted by

ISO/TC176, the standard underwent an extensive revision process whereby several drafts

of the standard were produced. Working drafts were produced during the course of 1997

and 1998, for review by the technical committee itself. Committee drafts were produced

during 1998 an 1999 for member bodies to vote and comment on. A final draft was

produced in September 2000, and finally in December 2000 the standard was published. [2]

WHAT DOES THE ISO 9001:2000 STANDARD LOOK LIKE TODAY?

Instead of 20 elements, the revised standard, ISO 9001:2000, now contains five main

clauses [1] pertaining to:

• The quality management system – Which sets the general requirements for the

system as well as its associated documentation.

• Management responsibility – Which details the requirements of an

organizations management to effectively implement and maintain the system.

• Resource management – Which details the requirements of an organizations

resources to effectively implement and maintain the system.

• Product realization – Which details the processes that are to be followed to

produce/deliver a quality product/service.

• Measurement, analysis and improvement – Which details the requirements for

assessing and improving not only products and services, but also the processes

within the organization and the QMS itself.

It is important to note that according to the definition given in the standard, a product

is seen as “a process, which uses resources to transform inputs into outputs” and can fall into one of

four categories – hardware; software; services; and process materials. [2] Therefore the

clause referring to product realization is not limited to the manufacturing industry.



3.3 THE ISO 9001:2000 STANDARD

The scope of the standard can be defined as the specification for a QMS that provides

assurance of an organization’s ability to [1]:

• consistently provide a service or product that meets customer and regulatory

requirements,

• enhance customer satisfaction and

• provides continual improvement of an organisations processes.

The introduction of the ISO 9001:2000 standard requires that all operations of an

organization (including the QMS) be process-based in order for the QMS to interact with

the other operations of the organization. A process-based QMS can be represented as in

Figure 3.1:

Figure 3.1 Model of a process-based QMS [1]

In the model of a process based QMS , the organization is represented as a cyclic

system that consists of Management Responsibility, Resource Management, Product

Realization, and Measurement, Analysis and Improvement. The cycle represents Clauses 4

to 8 of the standard.

Output

Customers

Product Realization

Resource Management

Requirements

Measurement, Analysis, and Improvement

Management Responsibility

Continual Improvement of QMS

Customers

Satisfaction

Products

Input



This system interacts with the customer on various levels: Management communicates

with the customer; the customer provides inputs to the product realization process; the

product is delivered to the customer; and the customer’s satisfaction is measured by

information relating to the customer’s perception.

The cyclic process of the QMS is not only focussed on improving the product and

thereby enhancing customer satisfaction, but also is also focussed on improvement of the

QMS itself.

Also noted in the introduction of the standard is that the Plan-Do-Check-Act (PDCA)

methodology can be applied to all processes. [1] The PDCA methodology dictates that one

must: plan the objectives of a process that is to be implemented; implement the process;

verify that the process is achieving the planned objectives; and take action to improve the

process. [3] Figure 3.2 represents the Plan-Do-Check-Act methodology as a continuous

cycle:

Figure 3.2 The Plan-Do-Check-Act methodology [3]

The ISO 9001:2000 standard consists of eight clauses and two annexes. However, as

mentioned in section 3.2 there are five main clauses in the standard, as the firsts three

clauses merely describe the scope of the standard, normative references, and terms and

definitions.

Implement the plan

Plan the actions aimed at achieving the desired results

Record and review the results

Revise the plan to improve the results

CHECK

ACT

DO

PLAN



The two annexes in the standard highlight the correspondence between ISO 9001:2000

and ISO 9001:1994 as well as ISO 14001:1996.

Here follows the author’s interpretation of the five main clauses of the ISO 9001:2000

standard (Clauses 4 to 8). In this study the standard as published by the ISO [1] and the

book ISO 9001:2000 for Small Businesses (3rd edition) by Ray Tricker [2] are used as the

main references.

CLAUSE 4 - QUALITY MANGEMENT SYSTEM

Clause 4.1 – The general requirements of a QMS follow almost logically from taking a

process view on the QMS. The requirements are plainly that:

• The processes required for the QMS, their sequence and their interaction be

identified.

• The criteria and methods for the operation and control of the processes be

identified.

• The resources and information required for the processes be available.

• The processes are monitored for effectiveness, and action be taken to

continually improve them.

Clause 4.2 - In addition to the system described in clause 4.1 there are also certain

documentation requirements for the QMS. The documents that must be prepared for the

QMS include:

• Statements of the quality policy and quality objectives.

• Quality manual.

• Quality procedures.

• Planning, Operation and Control documents of the organization’s processes.

• Quality records.

The manual must include the scope of the QMS, the quality procedures (or reference to

them), and the description of the interaction between the QMS processes.

The standard further specifies that a documented procedure must be established for

the control of the QMS documents. The procedure must basically ensure that approved

versions of the documents are available at the intended point of use; the documents are



revised and re-approved when required; superseded versions of the documents are

removed from circulation.

The last requirement of the QMS specified by the standard is that records must be kept

of product or service conformity to the given requirements, as well as the effective

operation of the QMS. A documented procedure must be established that describes how

these records are identified, stored, protected, and retrieved, as well as how long the

records are stored, and how they are disposed of.

As the standard is written to be generic and applicable to any organization, the standard

does not specify what the above documents should look like. Instead it merely states that

the extent of the documents depends of the size of the organization, the complexity of its

processes and the competence of its personnel.

Although this generic nature of the standard makes it applicable to any organization, it

does present some difficulties in the sense that very few “hard and fast” specifics are given

regarding the requirements of the QMS. Organizations are required to determine for

themselves what the extent of their QMS and its associated documents will be. Therefore

the success of the QMS will be determined by the skill of the people developing and

implementing the QMS in the organization, rather than the QMS’s conformance to the

standard.

As the QMS is meant to be approached as a process, a generic process flow diagram

for the QMS could be represented as in Figure 3.3.

Figure 3.3 Generic model of a QMS

Quality Improvement

Monitoring and Improvement

Information

Quality Records Network of QMS Processes

+ Quality Documents

Resources



The monitoring and improvement of the QMS is represented as a feedback loop to the

QMS. However, the QMS itself represents a feedback loop to the other processes of the

organization. Therefore a process flow diagram of the QMS and its interaction with these

other processes could be represented as Figure 3.4.

Figure 3.4 The QMS interacting with other processes in the organization

This interaction of the QMS with the other processes of the organization represents

what is known as a dual feedback loop. In other words the QMS monitors and improves

not only the other processes of the organization but itself as well.

The criteria for the QMS given in Clause 4 of the standard (as summarized above) are

stated very generically and without many specifics; the following clauses (5 to 8) provided

further requirements that must also be met by the system. These requirements will be

highlighted in the sections that follow.

CLAUSE 5 - MANAGEMENT RESPONSIBILITY

In this clause the standard lays a lot of responsibility on the top management of an

organization, to ensure that the QMS is implemented, maintained and improved. As with

all other systems, management has to be the driving force behind the QMS, in order for it

to be accepted in the organization. Functions that are to be fulfilled or driven by top

management are summarised below:

Quality Improvement

Monitoring and Improvement

Information

Quality Records

Network of QMS Processes

+ Quality Documents

Other Processes in the Organization

Inputs Outputs



Clause 5.1 - The top management of an organization must have a commitment to the

QMS. At first glance one might think that this is a very peculiar topic to be addressed in a

standard for a system. “Commitment” is a human attribute that may vary, depending on a

multitude of intangible factors, like for instance the personality of the person that fulfils the

management roll.

Then how does the standard determine an intangible factor like “commitment”? The

standard does this by specifying the measurement of the effect of the management’s

commitment: Clause 5.1 states merely that the top management of an organization shall

“provide evidence” of its commitment to the development, implementation and improvement

of the QMS by:

• Communicating the importance of meeting customer, statutory, and regulatory

requirements (i.e. the goal of the QMS).

• Establishing the quality policy.

• Ensuring that quality objectives are established.

• Conducting management reviews.

• Ensuring the availability of resources.

This implies that top management should perform the above functions (or at least

appoint people to perform them) and the products of these functions should be captured

on relevant records, to serve as evidence. The QMS must therefore make allowance for

these records and contain them.

Clause 5.2 - The top management of an organization shall ensure that the customer’s

requirements are determined and met, in order to enhance the customer’s satisfaction. This

focus on the customer’s requirements is needed, because unlike the statutory and regulatory

requirements that are naturally stated in specific terms by documents produced by the

bodies that enforce them; the customer’s requirements would not always be stated in

specific terms. Therefore the organizations must record and agree the customer’s

requirements in specific terms, so as to ensure that they are met, and the customer is

satisfied. Again the QMS is to allow for and contain records of these requirements.



Clause 5.3 - The Quality Policy of a company is indicated in Clause 4 of the standard

to be an integral part of the QMS documentation. Clause 5.1 states that the establishment

of this policy is the responsibility of the top management of the organization. The most

notable requirements of the quality policy is that: it must include the organizations

commitment to quality; provide the framework by which quality objectives are established

and reviewed; and the policy must be communicated and understood throughout the

organization.

Clause 5.4 - The quality objectives for each function and level of the organization

must be established by top management. These objectives are established when the top

management plans the QMS. Such planning should also ensure that the QMS fulfils the

requirements set in Clause 4.1 and that the QMS retains its integrity when changes are

made to improve the QMS.

Clause 5.5 - The organization must identify responsibilities and authorities, and

communicate them throughout the organisation. One such authority must be a

representative from top management who, aside from his other responsibilities, drives the

QMS by ensuring its operation, reporting on its performance, and promoting the QMS

throughout the organization. This clause therefore indicates the necessity for a person that

champions the QMS.

Clause 5.6 – States the requirement for the management of an organization to review

its QMS. These reviews should be held at planned intervals and should cover information

gathered about audits held, customer feedback, performance, etc. Of course all such

information that is to be reviewed should be captured on applicable records that form part

of the QMS. During the QMS review, management should make decisions on how the

QMS can be improved, how their product / service can be improved, and what resources

are required for the QMS and the identified improvements. The reviews themselves must

also be recorded and the records must be contained in the QMS.



CLAUSE 6 - RESOURCE MANAGEMENT

Clause 6.1 - As with most systems in an organization, the QMS will require certain

resources to operate properly. As every QMS would be unique to the particular

organization that it operates in, so to would the resources required to operate the QMS.

Clause 6.1 of the ISO 9001:2000 standard therefore does not specify what resources would

be required, but does state that the organization shall identify AND provide the resources

required for the effective operation of the QMS.

Clause 6.2 - People (human resources) involved in the QMS must have the

competence required to perform their assigned tasks. To accomplish this, the people

involved in the QMS have to be trained to have the competencies that are identified for

their specific tasks and records of such training have to be kept. Again these records are to

be provided and contained in the QMS itself.

The people involved in the QMS must also be informed of how their tasks influence

the achievement of quality objectives so that they understand the relevance of the tasks that

they perform. Having this understanding would in all probability increase their

commitment to the QMS.

Clauses 6.3 and 6.4 - Having the human resources to operate the QMS is not enough

though. The organization must also identify and provide the relevant infrastructure and

working environment for the QMS and its associated human resources. In other words, the

people that operate the QMS must not only be trained, but they have to be given the

required tools and workspace as well.

It is the author’s opinion that the one resource that is frequently overlooked in the

implementation of a QMS is time. Frequently the tasks required for the operation of the

QMS are assigned to people that already have other tasks to perform in the other systems

of the organization, and these people then struggle to find the time required to perform

their QMS tasks.



CLAUSE 7 - PRODUCT REALIZATION

Clause 7 of the ISO 9001:2000 standard describes the requirements for the systems that

realize the product of an organization. One might say that specifying requirements for the

product realization processes is beyond the scope of a standard for quality management

systems, and that the authors of the standard should focus on their own domain. However,

it is the interface between the QMS and the product realization process that prompts the

authors to define the requirements of these processes. In other words, how the product

realization processes are structured, will determine how well the QMS system can interface

with these systems and therefore measure the quality of the product.

As mentioned above in section 3.2, where the standard uses the word product, it is not

referring only to hardware or software but services as well. Therefore the services delivered

by a specific organization (for instance a consulting engineering company), could be

considered as its product.

Clause 7.1 - The first step to realizing a product is to plan how it will be realized. From

the QMS’s point of view this means that an organization needs to establish the following:

• The process required to realize the product, as well as associated documents

and resources.

• The quality objectives of the product and the process that produces it.

• The way in which the product will be verified, validated, tested, etc. to ensure

that the product fulfils the requirements.

• The records that will serve as proof of the abovementioned verification,

validation, testing, etc.

It is noted at the end of clause 7.1 that the documentation of the above can be referred

to as the quality plan. As a result of clause 7.1 it would be safe to assume that such a quality

plan would exist for every product produced by an organization.

Clause 7.2 - Before a product is realized, the requirements of the product must be

defined in specific terms. In this clause the standard describes what it calls a customer

related process whereby the requirements are determined (documented), reviewed, and

communicated to the client.



The documented requirements include those of the client, the relevant statutory and

regulatory bodies, the organization itself, and those necessary for the intended use of the

product.

An organization must review these requirements before it commits to producing the

product, in order to ensure that the requirements are defined in specific terms and that the

organization is capable of meeting the requirements.

Communicating the documented requirements not only ensures that the customer is in

agreement with the requirements, but also provides the forum for the customer to give

feedback to the organization.

Clause 7.3 - A product must be designed and developed according to a certain

process. The process described in this clause is one of:

• Planning the development stages; the review, verification and validation of each

stage; and resources required for each stage.

• Using the requirements documented as per clause 7.2 as inputs to the

development process.

• Documenting development outputs, such as purchasing, production and service

provision information; product acceptance criteria; etc.

• Reviewing the development process at certain predetermined stages.

• Verification of the design.

• Validation of the design.

• Controlling changes that result from review, verification, validation, or the

discovery of further requirements.

Each step of the process described in Clause 7.3 is to be documented and captured in

appropriate records that are provided by and contained in the QMS.

A generic process flow diagram for this process could be represented as shown in

figure 3.5:



Figure 3.5 The product design and development process

Clause 7.4 - Products purchased by the organization that form part of the product

realization process, must conform to predetermined purchase requirements. These

requirements must specify the approval procedures, qualification of the personnel involved

in providing the product, and the suppliers own QMS.

As part of the organization’s QMS, it must establish criteria whereby it will evaluate and

select suppliers of the products required for the product realization process. The QMS

must therefore provide and contain records of the evaluation of suppliers.

The organization must also verify that the products purchased conform to the stated

purchase requirements. Again the QMS must provide and contain these records.

Clause 7.5 - An organization must plan its production (or service delivery) processes in

such a way that they operate under controlled conditions. The control that must be

exercised on these processes must ensure that the appropriate information, work

instructions, equipment and measuring devices are available to the processes. Furthermore

the organization must ensure that the measurement is implemented in the production

process, as well as implement the process related to releasing the product to the customer.

Every product that is produced by an organization must be identified, and be traceable

back to the processes that produced it, as well as the monitoring and measurement that was

done on the product.

Inputs

Identify New Requirements

Change Records

Outputs

Verification

Development

Validation

Change Control

Review at Predetermined

Intervals

Planning

Final Outputs

Requirements Document



Clause 7.6 - An organization must exercise control of its monitoring and measurement

devices. This control will include maintaining the calibration status of the devices, and

where a device is found to be producing incorrect measurements, results of previous

measurements must be re-assessed.

CLAUSE 8 - MEASUREMENT, ANALYSIS AND IMPROVEMENT

Clause 8.1 – The organization has to put in place the systems that monitor, measure,

analyse and improve the organization’s products as well as the QMS. These systems should

provide the proof of the product’s quality, that the QMS operates as planned, and also

improve the QMS on an ongoing basis.

Clause 8.2 – The monitoring and measurement systems of the organization should

cover at least four aspects:

• The organization shall measure its Customers’ satisfaction by assessing their

perception of the organization’s ability to meet their requirements. This

assessment must be done in a formal and structured way.

• The organization shall audit its QMS on planned intervals and according to pre-

determined criteria, scope and methods. The auditors must be selected to

ensure impartiality. A documented procedure shall be established that describes

the auditing process (responsibilities, procedures, reporting of results, etc). The

management of any area that is audited must respond to the resulting audit

report, by ensuring that the required actions are taken, verifying those actions,

and reporting on the results.

• The organization shall also monitor the processes of the QMS, in order to

ensure that the expected results of the QMS are achieved. Where these results

are not achieved, the offending processes must be corrected.

• At appropriate stages of the product realization process, the product must be

assessed to ensure that it conforms to the requirements established at the start

of the product realization process (clauses 7.1 to 7.2) Records of these

assessments must be kept in the QMS. No product shall be released until it has

been verified as conforming to the requirements.



Clause 8.3 – If, during an assessment it is found that a product does not conform to

the requirements initially set out, the organization must identify that product and take

action to correcting the non-conformity. This can be achieved by eliminating the non-

conformity from the product, releasing it under concession of the client and or relevant

authorities, or precluding the original intended use of the product.

The QMS must contain records of any non-conforming products, as well as the course

of action that was taken to correct the non-conformity. Products that have been corrected

shall also be subject to re-verification.

Clause 8.4 – The organization shall analyse data generated by the measurement and

monitoring processes. The analysis should provide feedback regarding customer

satisfaction, product conformities and non-conformities, trends of the organization’s

processes and products, and feedback from suppliers. The information provided by the

analysis will be used to prove the effectiveness of the QMS and to identify areas of the

QMS that need to be improved.

Clause 8.5 - The organization can improve its QMS and its other processes in one of

three ways – Continual improvement is achieved as a natural result of the QMS’s

continuous monitoring, auditing and analysis processes; Corrective action is taken in

response to identified non-conformities (either by products or by the QMS); Preventative

action is taken where analysis of data identified potential non-conformities that may occur.

In all three ways of introducing the improvements into the organization processes, and

QMS, the organization is required to follow the Plan-Do-Check-Act methodology that is

described in the introduction of the standard. In other words any improvement the

organization makes is to be planned, implemented and the results recorded and verified.



3.4 AIMS AND BENEFITS OF ISO 9001:2000

The main aims of the ISO 9001:2000 standard are [2]:

• To be flexible enough to be applicable to any organization and integrate with

other management systems.

• To introduce a simple structure for QMS’s by implementing a Plan-Do-Check-

Act (PDCA) process-based model.

• To place emphasis on determining and reviewing customer requirements, and

verifying that they are met. Emphasis is also placed on measuring the

customer’s satisfaction.

• To assert continual reviewing and improvement of organisational processes,

including the QMS.

• To define the responsibilities, authorities and resource requirements of the

QMS.

The standard represents a QMS in a process-based manner that follows the PDCA

philosophy. This philosophy has a natural inclination towards continuous improvement as

it is a process of perpetuating cycles that start by planning the actions that are to be

implemented, and end with checking whether the planned results were achieved.

Improvements are achieved incrementally during each cycle and builds on the knowledge

of previous cycles.

The standard places emphasis on establishing the requirements for a product or a

service up front, where such requirements originate from both the customer and statutory

and regulatory authorities. Verifying that the requirements have been met serves as proof

of the quality of the product or service.

Emphasis is also placed on the records that are to be kept in the QMS. These records

provide the basis on which the QMS can be assessed, either by internal or external audits.

The records also serve as a knowledge base that assists the management of an organization

to improve its processes by learning from past achievements and failures.

As mentioned the ISO 9001:2000 standard is applicable to all organizations and the

products and/or services that they deliver. Therefore any organization, big or small, in any

market, can use the standard to develop and implement a QMS that can be certified by an



ISO 9001:2000 certification body. Certification of the QMS serves as proof to customers

that the organization can meet their needs.

The flexible nature of the standard allows an organization to shape its QMS to integrate

seamlessly with the rest of the operations of the organization, as long as they are process-

based. Therefore in most cases implementing the QMS will not drastically change the

operations of the organization, except where such changes are required to improve quality.

The financial benefit of a QMS is difficult to quantify up front, as the product of the

QMS (namely quality) is one that cannot generate revenue on its own. The QMS does

however introduce an indirect financial benefit, as the organization spends less time and

money correcting products that failed to meet their requirements. Further financial gain is

also made by virtue of the fact that the QMS enhances customer satisfaction, and therefore

stimulates future sales by repeat business and word-of-mouth.

However the financial gain of improved quality is not linear to the cost of improving

the QMS. There is a point where the quality of the product and the cost spent achieving

that quality reaches an optimum. This optimum point is illustrated in the Figure 3.6. The

challenge for the management of an organization is determining where that point lies.

Figure 3.6 Cost of Poor Quality vs. QMS Cost [2]

Cost of QMS

Cost of Poor Quality

Optimum Benefit

Achieved Quality

Increasing Cost



3.5 LIMITATIONS AND DISADVANTAGES OF ISO 9001:2000

P.D.T. O’Connor writes in his book, Practical Reliability Engineering [4], that the ISO

9001:2000 standard only describes the requirements for a QMS in “vague terms”. In

section 3.4 above the flexibility of the ISO 9001:2000 standard is mentioned as a benefit,

however it is this pursuit of flexibility that necessitates a certain degree of vagueness when

describing the QMS. In fact it would in all probability be impossible to describe in very

definite terms the requirements for a QMS that is applicable for all conceivable

organizations, as this would require that all organizations follow the same operational

processes.

The disadvantage that this vagueness of the standard presents, is that organizations

could develop a QMS that complies with the standard and attain ISO 9001:2000

certification, but still produce/deliver poor quality products/services. O’Conner calls such

products/ services “well documented rubbish” [4]. The challenge for the management of

an organization is thus to keep their focus on the improvement of quality and critically

evaluate whether their QMS does actually achieve planned quality objectives.

A further complication introduced by the vagueness of the standard, is that it requires

more effort to develop the QMS. Instead of directly implementing each clause of the

standard step-by-step, the management of an organization must first interpret how the

clauses apply to their organization and develop the relevant processes and records from

that interpretation.

The certification process also presents some limitations. The certification bodies

cannot always have the knowledge required to evaluate the quality of products produced by

specialist organizations. In such a case the only thing the certifying body can do is verify

that the QMS of the organization is developed according to the standard, and is being

operated in the prescribed manner. In other words the fact that an organization has ISO

9001:2000 certification merely proves that they have an operational QMS, but does not

guarantee that they produce high quality products.



3.6 CONCLUSION

The International Organization for Standardization has been developing the ISO

9001:2000 standard over the past thirty years, and is an internationally recognized standard

for Quality Management Systems (QMS’s).

The ISO 9001:2000 standard calls for a process-based quality management system that

follows the Plan-Do-Check-Act methodology. Further more it requires that all other

operations in an organization be process-based as well, in order for the QMS to

successfully interact with those operations.

The ISO 9001:2000 standard has five “main clauses” that set the requirements for a

QMS. These five main clauses cover the QMS itself, Management Responsibility, Resource

Management, Product Realization, Measurement, Analysis and Improvement.

Specific emphasis is placed on the roles that the top Management have to fulfil in order

to operate the QMS effectively. There are also a number of records that need to be kept for

certain functions of the QMS. These records are identified in the standard but are not

described in detail.

ISO 9001:2000 is flexible enough to allow the QMS to be tailored to suite any

organization’s structure and processes. This flexibility can be seen as a benefit, but also as a

disadvantage due to the fact that the flexibility of the standard also makes it vague.

With the overview of the ISO 9001:2000 standard in hand the author will now proceed

with a case study of a QMS that is implemented in ABC Projects (a consulting engineering

company).



CHAPTER 4 : CASE STUDY - QUALITY MANAGEMENT

IN ABC PROJECTS (A CONSULTING ENGINEERING

COMPANY)

4.1 INTRODUCTION

Having reviewed the broader subject of quality and the ISO 9001:2000 standard for

QMS’s, one can now investigate how well the ABC Projects has implemented its QMS, and

whether it conforms to the ISO 9001:2000 standard.

In section 4.2 the author presents a brief overview of what a consulting engineering

company is and in section 4.3 the author presents an overview of ABC Projects and its

operations.

Two questionnaires were prepared and circulated, one among the employees of ABC

Projects, and the other among the management (directors) of the ABC Group. The

purpose of the questionnaires was to acquire feedback from the employees and

management regarding specific issues highlighted by the ISO 9001:2000 standard and to

evaluate how well ABC Projects and the management structure it reports to, address those

issues. The results of these questionnaires are presented in sections 4.4 and 4.5.

The author also makes an evaluation of the QMS employed in ABC Projects, by

comparing it, clause by clause, to the ISO 9001:2000 standard. As part of this evaluation,

the author interviewed the Chief Operating Officer of ABC Projects, the transcript of

which is used as reference and is attached in Appendix C.

4.2 WHAT IS A CONSULTING ENGINEERING COMPANY?

Consulting engineering companies are businesses that generally offer independent

technology-based intellectual services in the built, human and natural environments to

clients for a fee. [7] The services offered can include:

• Administrative – Project planning, feasibility studies and management; Tender

preparation and adjudication; etc.



• Technical – Investigation; Design; Implementation; etc.

• Management – Construction management; Cost Management; Quality

management; etc.

• Contractual – Co-ordination of contractors; Special forms of contract; Financial

and Legal; etc.

In essence the product that a consulting engineering company sells to its clients is the

time and engineering expertise of its employees.

In addition to the above description, the South African Association of Consulting

Engineers (SAACE) has a code of conduct that its members must adhere too. This code of

conduct is divided into two parts – Regulatory and Good Practise Standards.

SAACE CODE OF CONDUCT - REGULATORY

Here follows a brief overview of the regulatory requirements set by the SAACE code

of conduct. Members of SAACE must [7]:

• Ensure that their conduct does not contravene the Laws of the country in

which they are working.

• Take all reasonable steps to ensure that persons registered at the Engineering

Council of South Africa (ECSA), in their employ, adhere to the code of

conduct of ECSA.

• Adhere to the constitution, policies and by-laws of the SAACE and conduct

their business so as not to bring the SAACE’s reputation into disrepute.

• Adhere to the rules and standards of the International Federation of Consulting

Engineers.

• Only undertake to provide services that are inline with their professional

competence and responsibility.

• Employee professionally registered persons to lead the organization, and

control the services provided to external clients.

• Not commit acts of corruption or other misconduct.

• Notify the SAACE if any registered person in their employ is found guilty of a

criminal offence or is declared insolvent.



These regulations therefore dictate that members of SAACE provide a professional

service to their clients.

SAACE CODE OF CONDUCT - GOOD PRACTISE STANDARDS

Here follows a brief overview of the good practise standards set by the SAACE code of

conduct. Members of SAACE must [7]:

• Maintain their integrity by acting at all times in the legitimate best interest of

their clients and other stakeholders.

• Always act in such a manner that protects the safety of the general public, and

the interests of society.

• Be impartial in the provision of advice, judgement, decision, and inform their

clients of any potential conflict of interests that might arise in the rendering of

services.

• Not injure the reputation of or business of others, or attempt to take the place

of another member already appointed by a client.

• Not review the work of another member except where that member has prior

knowledge of the intended review, or where the review is intended for legal

proceedings, or after notification of termination of that member’s services.

• Maintain records of calculations, drawings and contractual documents, for a

period of ten years after the completion of a particular project.

• When asked to submit tender proposals, structure such proposals in such a way

that enables them to discharge their responsibilities to the client adequately, and

not undertake work where the quality of the professional service may be

jeopardised.

• Implement and maintain a quality management system, and provide services

that are of a level of quality that is commensurate with accepted standards and

practices.

These good practise standards therefore dictate that members of SAACE provide a

high quality service to their clients. SAACE also names ISO 9001:2000 as the

recommended standard for a QMS in a consulting engineering company. [7]



4.3 OVERVIEW OF ABC PROJECTS

ABC Projects is a wholly owned subsidiary of the ABC Group. This group is well

established and has operated in the Republic of South Africa for more than 50 years. ABC

Group is a multidisciplinary consultancy group listed on the London Stock Exchange with

world wide representation and more than 6000 employees.

The ABC Group Vision is “To be the outstanding supplier of specialist and integrated

services in the built and natural environment”. The ABC Group have five core values:

• Trust

• Support and sharing

• Pride and passion

• Sustainability

• Innovation

ABC Projects is a specialist mechanical, electrical, instrumentation and control

engineering division providing a range of services from consulting through to turnkey

project solutions. ABC Projects employs fifteen people, of whom one is the chief operating

officer, one is a secretary, two are draughtsmen, and the other eleven are engineers and

project managers. ABC Projects operates in the following market sectors:

• Food and beverage.

• Mining.

• Materials handling.

• Infra-structural.

• Light manufacturing.

• Packaging.

• Pharmaceutical.

• Water and waste.

ABC Projects offers the following services to its clients:

• Project Management

• Electrical Engineering

• Instrumentation And Control Engineering

• Mechanical Engineering



In line with its vision and values, the ABC Group has developed a QMS that is to

manage the quality of the operation of all its companies, including ABC Projects. Despite

the fact that the QMS is based on the ISO 9001:2000 standard, ABC Projects has not yet

attained ISO 9001:2000 accreditation.

On initial inspection it appears that the failure to attain accreditation can be due to the

QMS not being operated effectively and that it is not being monitored or improved. The

QMS of ABC Projects is evaluated in the sections that follow.

4.4 RESULTS OF THE QUALITY MANAGEMENT SYSTEM -

EMPLOYEE OPINION QUESTIONAIRE

A questionnaire aimed at capturing the opinion of the employees of ABC Projects

regarding the QMS, was circulated among the fourteen employees of ABC Projects. All

fourteen employees completed the questionnaire, and their feedback is captured in

Appendix A.

The questionnaire was developed as a self administered survey, as per guidelines given

by D.R Cooper and P.S Schindler. [18] The questions asked in the survey were derived

from specific requirements identified in the ISO 9001:2000 standard [1], for instance that

the Quality Policy and Objectives be identified and communicated to the employees, etc.

“Yes” / “No” questions were asked to determine which aspects of the QMS the

employees agree or disagree on. Unanimous agreement on a certain aspects indicates a

definite positive or negative aspect of the QMS.

The employees were instructed to answer the questions as honestly as possible, but

leave the answer space blank in case they did not understand the question, or did not know

the answer. The number of “yes”, “no” and “no answer” answers per question are

tabulated in Table 4.1. A bar-chart representation of this data is also given in Figure 4.1.



In your opinion… Yes No No

Answer

Is the work that you do part of a defined process in your company

7 6 1

If so, do you fully understand the process? 6 6 2

Is there a need for a quality management system in you line of work?

14 0 0

Is the quality management system currently implemented in your business based on ISO 9001:2000

3 9 2

Do you know what the quality policy and quality objectives of your business are?

1 13 0

If Yes, what are they? See Appendix A

Is the quality management system effective? 0 14 0

Is there a need for training in the use of the quality management system?

14 0 0

Have you received training in the use of the quality management system?

1 13 0

Is the quality management system in an electronic (IT) format? 5 9 0

Is your performance measured by the quality management system on a regular basis?

1 13 0

Could the quality management system currently implemented in your business be improved?

13 0 1

If Yes, what improvements could be made to the system? See Appendix A

Table 4.1 Results of the QMS Employee Opinion Questionnaire



0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

Is the work that you do part of adefined process in your company

If so, do you fully understand theprocess?

Is there a need for a qualitymanagement system in you line of

work?

Is the quality management systemcurrently implemented in in your

business based on ISO9001:2000

Do you know what the qualitypolicy and quality objectives of

your business are?

Is the quality management systemeffective?

Is there a need for training in theuse of the quality management

system?

Have you received training in theuse of the quality management

system?

Is the quality management systemin an electronic (IT) format?

Is your performance measured bythe quality management system on

a regular basis?

Could the quality managementsystem currently implemented in

your business be improved?

YES NO NO ANSWER

Figure 4.1 Results of the QMS Employee Opinion Questionnaire



From Table 4.1 and Figure 4.1 it can be inferred that:

• Only half of the employees believe that the work they do forms part of a

defined process within the company, and understand that process. This would

therefore indicate that the procedures of the company have not been defined

clearly enough, or that the procedures have not been adequately communicated

to the employees.

• The employees unanimously agree that there is a need for a quality system in

their line of work, but they also unanimously agree that the current QMS is not

effective. The majority of the employees also agree that the QMS can be

improved.

• The majority of the employees do not know what the quality policy and quality

objectives of the business are. This indicates that the quality policy and quality

objectives have not been clearly defined, or have not been adequately

communicated to the staff.

• All the employees believe that there is a need for training in the use of the

QMS, but only one of the fourteen has indicated that he/she has received such

training.

Many of the employees also made suggestions for how the QMS can be improved. The

most notable of these suggestions are:

• The QMS should be simplified.

• The QMS should be tailored to suite each of the engineering disciplines in the

company.

• The QMS should be converted to an electronic format, rather than the current

paper based system.

• Management must take an active role in running the QMS.

• The employees are to receive training in the operation of the QMS.

• The QMS needs to be monitored regularly, to ensure its effectiveness.

• A dedicated resource is required to run the QMS.



4.5 RESULTS OF THE QUALITY MANAGEMENT SYSTEM -

MANAGEMENT OPINION QUESTIONAIRE

A questionnaire aimed at capturing the opinion of the directors of the ABC Group

regarding the QMS, was circulated among twelve of the directors of ABC Group that are

based in the Johannesburg office. Of those twelve directors, only six completed the

questionnaire and their feedback is captured in Appendix B.

This questionnaire was also developed as a self administered survey as per guidelines

given by D.R Cooper and P.S Schindler. [18] Due to the fact that the directors fulfil a

managerial role in the ABC Group, the Management Opinion Questionnaire differed from

the Employee Opinion Questionnaire, in that it was aimed at assessing whether specific

ISO 9001:2000 requirements of the top management of the group was being met.

Again “Yes” / “No” questions were asked. Unanimous agreement on a certain aspects

indicates a definite positive or negative aspect of the QMS. On aspects were there is no

unanimous agreement, it can be ascertained that there is a lack of unity in the approach that

the directors of the group have with regard to the QMS.

The directors were instructed to answer the questions as honestly as possible, but leave

the answer space blank in case they did not understand the question, or did not know the

answer. The number of “yes”, “no” and “no answer” answers per question are tabulated in

Table 4.2. A bar-chart representation of this data is also given in Figure 4.2.



In your opinion… Yes No No

Answer

Are the processes in your business identified and documented? 4 2 0

Are the sequence and interaction of these processes identified and documented?

2 3 1

Is the quality management system documented in terms of scope, procedures, etc.?

3 3 0

Do you know what the quality policy and quality objectives of your business are?

5 1 0

If Yes, what are they? See Appendix B

Does the management of your business hold reviews of the quality management system at regular / planned intervals?

3 3 0

Are adequate resources provided to implement, maintain and improve the quality management system?

1 5 0

Are your staff adequately trained in the use of the quality management system

1 5 0

Does the quality management system add value to the operations of your business?

3 1 2

Does the quality management system enhance customer satisfaction?

3 2 1

Could the quality management system currently implemented in your business be improved?

5 0 1

If Yes, what improvements could be made to the system? See Appendix B

Table 4.2 Results of the QMS Management Opinion Questionnaire



0 1 2 3 4 5 6

Are the processes in yourbusiness identified and

documented?

Are the sequence and interactionof these processes identified and

documented?

Is the quality management systemdocumented in terms of scope,

procedures, etc.?

Do you know what the qualitypolicy and quality objectives of

your business are?

Does the management of yourbusiness hold reviews of the

quality management system atregular/planned intervals?

Are adequate resources providedto implement, maintain and

improve the quality managementsystem?

Are your staff adequatly trained inthe use of the quality management

system

Does the quality managementsystem add value to the operations

of your business?

Does the quality managementsystem enhance customer

satisfaction?

Could the quality managementsystem currently implemented in

your business be improved?

YES NO NO ANSWER

Figure 4.2 Results of the QMS Management Opinion Questionnaire



From Table 4.2 and Figure 4.2 it can be inferred that:

• There is no unanimous agreement regarding any of the questions asked in this

questionnaire. This indicates one of two problems – either the questions asked

were not clear enough, or there is some division amongst the directors, where

the QMS is concerned. The latter bears a serious implication with regards to the

success of the QMS, as it is the directors (the top management of the ABC

Group) that have to ensure that the QMS is implemented, maintained and

improved (as per clause 5 of the ISO 9001:2000 standard). Without the “buy-

in” of the directors, the QMS is ultimately doomed to fail.

• 66% of the directors that responded believe that the processes in their

businesses are identified and documented, however only 33% believe that the

sequence and interaction of those processes are identified and documented. It

can therefore be said that the business processes of some of the companies in

the ABC Group, are documented, but perhaps that documentation needs to be

refined to illustrate how those processes interact with each other, and ultimately

impact on the nature of the companies.

• Half of the directors that responded believe that the QMS is documented in

terms of scope, procedures, etc. This indicates that some directors are unaware

of the QMS documentation that has been provided by the ABC Group, or do

not regard that documentation as adequate.

• Five of the six directors that responded indicated that they know what the

quality policy and quality objectives of their business are. But when asked to

state the policy and objectives each of them gave different answers. There was a

vague similarity in their answers in that they regard the quality objectives as

delivering technically excellent service and designs and complete projects within

budget and program.

• Half of the directors that responded indicated that they hold regular reviews of

the QMS. This indicates that the other half of the directors are not involved in

the review process. This may be due to the fact that their involvement is not

necessarily required.



• Five of the six directors that responded believe that they do not have adequate

resources to implement, maintain and improve the current QMS, and that their

employees are not adequately trained in the use of the QMS. It can therefore be

said that the directors recognise that there is a resource management problem

where the QMS is concerned.

• Only half of the directors that responded are of the opinion that the current

QMS adds value to the operation of their business and enhances customer

satisfaction.

• Five of the six directors that responded are of the opinion that the QMS can be

improved.

• The fact that only six of the twelve directors asked to complete the

questionnaire responded indicates that there is a lack of interest in the QMS

and its importance to the organization.

All six of the directors that responded also made suggestions for how the QMS can be

improved. The most notable of these suggestions are:

• The QMS must be formalized and documented properly.

• The current QMS is cumbersome and must be streamlined / simplified, as the

employees don’t have the time to operate the current QMS.

• The employees as well as management are to receive training in the use of the

QMS on a continuous basis.

• Regular audits must be held, to ensure the effectiveness of the QMS and to

verify that the employees are adhering to the system.

• The QMS should be implemented as a function that adds value in terms of time

and cost, and ultimately carries everyone’s “buy-in”.

• The “doers” (employees) must be consulted when determining quality

objectives and functions, as opposed to dictating from the top down.

• A dedicated group of employees directed by a member of management must be

appointed to run the QMS and to improve the QMS on an ongoing basis, as

well as updating the QMS to the latest standards and trends.



4.6 ASSESSMENT OF THE ABC PROJECTS QUALITY

MANAGEMENT SYSTEM

At the hand of the “five main clauses” of the ISO 9001:2000 discussed in section 3.3,

one can now assess quality management system of ABC Projects. Sources used for this

assessment include the two questionnaires discussed in sections 4.4 and 4.5, as well as an

interview that the author conducted with the Chief Operating Officer of ABC Projects.

The transcript of this interview [17] can be found in Appendix C.

D.R Cooper and P.S Schindler names interviews to be the primary data collection

technique for qualitative research methodologies and as per their definition this interview

was a “Structured Interview”. [18] The ISO 9001: 2000 standard was used as a guideline for

the discussion topics, and specific questions regarding the requirements set by the standard

were asked.

CLAUSE 4 - QUALITY MANGEMENT SYSTEM

ABC Projects complies with some parts of clause 4, but not all. The QMS processes

have been identified as well as their interaction with each other. The criteria and the

methods for the QMS have also been determined. These items may have been defined

vaguely, though.

Where ABC Projects fail with regards to the general requirements, is with the

availability of resources to support the QMS processes, the monitoring of the processes,

and the improvement of the processes. In essence the QMS has not been put to use

effectively and it hasn’t been improved in the past five years.

ABC Projects possesses documentation of their QMS that contains all the documents

required by the standard. However, this documentation was created by the London based

company ABC Group PLC that owns ABC Projects. Therefore the documentation has not

been specifically tailored for use in the South African based company, ABC Projects. [17]

The documentation does include a statement of the quality policy and objectives, as

well as the quality manual. There is also a procedure in place that controls the document as

required by the standard.



Unfortunately the system and its documentation are not being used, and therefore the

QMS in ABC Projects can be said to exist, but it cannot be said to be operational.

CLAUSE 5 - MANAGEMENT RESPONSIBILITY

ABC Projects does not comply with Clause 5 in its entirety. Part of the Management

responsibility is to establish and regularly review the quality policy as well as plan the

quality objectives. The current quality policy and objectives were established and dictated

by the parent company that owns ABC Projects, and the management of ABC Projects was

not involved in that process. Therefore it is safe to say that no inputs from the company’s

current operations were considered during the establishment of the Policy and Objectives.

There has also been no communication from either the management of the ABC

Group or the management of ABC Projects regarding the policy and objectives. This is

evident from the results of the Employee Opinion Questionnaire that was discussed in

section 4.4.

No responsibilities or authorities have been delegated to any of the staff with regard to

the QMS, and there is also no representative from top management, that ensures that the

QMS processes are implemented.

The top management of ABC Projects has also never been involved in a review of the

QMS. [17] Therefore none of the inputs that are to be reviewed according to clause 5.6.2,

have been considered and none of the outputs required by clause 5.6.3 have been

produced.

CLAUSE 6 - RESOURCE MANAGEMENT

Resource management is highlighted as a problem. [17] ABC Projects finds itself in a

booming market where there is a major skills shortage. In terms of the normal operations

of the company there are enough employees to handle the heavy workload presented by

projects being undertaken by the company.

Although there has been very little activity in the company in terms of training, plans

have been made to improve this situation, and staff will soon be receiving training to

improve their skills. [17]



The company has also improved its infrastructure, in terms of workspace as well as

process equipment. ABC Projects has started investing in software design tools, to assist

the engineers in their design and project management tasks. Almost all of the engineers

employed by the company have also been equipped with laptops, which enables them to

continue with office based work, even while travelling or visiting construction sites and has

ultimately improved productivity.

CLAUSE 7 - PRODUCT REALIZATION

In terms of the product realization ABC Projects again falls short. Product planning as

required by Clause 7.1 does not occur. Customer related processes as required by Clause

7.2 do not operate either.

Design and development does not follow the process called for by Clause 7.3. Design

and development are seldom planned, and the outputs of the design and development are

seldom measured according to documented product requirements (inputs). Review,

verification and validation of products are done sporadically, instead of regularly. [17]

The procurement process does however comply with the requirements set by Clause

7.4

ABC Projects does not necessarily comply with Clause 7.5 in terms of service

provision. If however, ABC Projects merely formalizes its process of service provision,

then it can easily comply with this clause.

ABC Projects does comply with Clause 7.6, as it does control all its measuring devices

as required, and maintains their calibration.

CLAUSE 8 - MEASUREMENT, ANALYSIS AND IMPROVEMENT

Again ABC Projects is found lacking in this department of their QMS.

ABC Projects does not regularly and actively monitor customer satisfaction. It also

does not conduct regular internal audits, monitor its processes, or monitor its products.

Limited control is exercised over products that are found to be non-conforming, and

the control is not exercised in a formalized manner.



ABC Projects does not analyse data collected regarding customer satisfaction, product

conformity to requirements, trends of processes, or suppliers.

Although there is a defined process regarding the elimination of non-conformities, the

process is not being followed. Corrective action is only taken if a specific non-conformity is

regarded as being serious enough to justify the additional effort. No preventative action is

ever considered.

4.7 IMPROVEMENTS THAT COULD BE MADE

From sections 4.4 to 4.6 it follows that various aspects of the current QMS currently in

use in ABC Projects can be improved. A 6-step process modelled after the PDCA cycle

(described in section 3.3) can be used to improve the QMS of ABC Projects. Here follows

the description the 6-step process:

STEP 1 – DEFINE OPERATIONAL PROCEDURES

ABC Projects should review its Operational Procedures (OP’s), with special focus on

its Product Realization processes. As illustrated in figure 3.4, the QMS serves as a dual

feedback loop for monitoring and improving the other (operational) procedures in the

organization. The QMS will therefore not operate effectively, if the OP’s of ABC Projects

are not clearly defined. Having clearly defined OP’s will also assist the employees of ABC

Projects in doing their work.

The OP’s should be defined in such a way that the QMS will be enabled to measure the

effectiveness of the procedures. For example, one of the services offered by ABC Projects

is Motor Control Centre Design. The procedure that defines the Motor Control Centre

Design process, should stipulate what information is required to design a Motor Control

Centre; what steps are to be followed during that design process; and what deliverables

(Documentation, Calculation Sheets, Specifications etc.) there are for the design process.

The QMS can then be adapted to monitor the Motor Control Centre Design process, along

with its inputs and outputs.



STEP 2 – CREATE A TAILOR-MADE QMS

ABC Projects should also conduct a systematic review of the entire QMS, where every

aspect of the QMS and its associated documentation (policy, objectives and procedures) are

evaluated. The management of ABC Projects should actively involve itself in this review, so

as to affect the updating of the QMS to suite the OP’s identified in Step 1.

It must be recognised that the various companies and business units in the ABC Group

do not necessarily have common OP’s, and therefore ABC Projects should have a QMS

uniquely tailored to its requirements.

The quality policy and objectives of ABC Projects may also differ from the other

companies or business units in the ABC Group, and therefore the top management of

ABC Group should allow ABC Projects to determine its own quality policies and

objectives.

STEP 3 – APPOINT A DEDICATED QMS RESOURCE

A resource should be appointed to manage the QMS. This resource may be a person

that also fulfils other roles in ABC Projects, but the QMS should be his / her main

concern. The resource should be someone that is committed to the QMS and buys into the

concept of Quality Management.

The QMS resource should be tasked with tailoring the QMS procedures and

documentation, to suite the OP’s of ABC Projects, managing the QMS function that

monitors the OP’s, and reporting back to management regarding the development of the

QMS and the efficiency of the QMS, etc.

ABC Projects delivers engineering services, and therefore the majority of the

procedures that the QMS will monitor, will be technical in nature. Therefore the resource

should also be someone that is able to grasp technical concepts in order to tailor the

monitoring procedures of the QMS. However, the resource does not necessarily have to be

a qualified engineer, but merely someone capable of grasping technical concepts.



STEP 4 – INCREMENTAL IMPLEMENTATION OF PROCEDURES

Once the OP’s of ABC Projects are identified and documented (Step 1), the QMS has

been tailored to suite ABC Projects (Step 2), and an adequate resource has been appointed

to manage the QMS (Step 3), the OP’s and the QMS will need to be implemented. This

implementation of the new OP’s and QMS will require some cultural change in the

organization, as the employees of ABC Projects will have been accustomed to the old

procedures.

The management of ABC Projects may be tempted to enforce a complete overnight

change to the new OP’s and QMS, but this approach will be met with the most resistance.

An incremental approach to implementation, will afford the employees of ABC Projects

the opportunity to gradually grow accustomed to the new OP’s and QMS.

An incremental implementation approach will also allow the management of ABC

Projects and its QMS resource to develop the OP’s and the QMS in an incremental

manner.

STEP 5 - TRAINING

To complement the incremental implementation process, training should also be

addressed. The employees of ABC Projects will require training that teaches them how the

new OP’s and the new QMS work.

Meticulous planning of the training will be required, to ensure that the training sessions

are effective. Training sessions should coincide with, and deal with each implementation

increment.

As part of the planning of training sessions, questions should be asked like: “Who will

be affected by implementation of the next increment?”, “What do the affected parties need

to know about the next increment?” and “What are the major differences in operation that

the next increment will introduce into the organization?” These types of questions will help

structure the content of the training sessions.



STEP 6 – CONTINUOUSLY MEASSURE, REVIEW AND IMPROVE

Inevitably the first attempt at the new OP’s and QMS will not be perfect. The

requirements of the OP’s and QMS will also change over time, as the organization grows /

changes and also enters new markets. Therefore, both the OP’s and the QMS should be

subject to an iterative measurement, review and improvement process.

This measurement, review and improvement process should be managed by the QMS

resource, as well as the management of ABC Projects. To enhance the effectiveness and

value of the process, feedback from the employees, as well as the customers should be

considered.

This concept of measurement, review and improvement forms the last step of the Plan-

Do-Check-Act (PDCA) cycle, and is not only a valuable step, but a requirement of the ISO

9001:2000 standard.

4.8 CONCLUSION

A consulting engineering company is a business that offers intellectual services, to its

clients, in the built, human, and natural environment. These services can include

administrative, technical, managerial, and contractual services. The SAACE has established

a code of conduct whereby its members may operate and deliver these services. One clause

of this code of conduct stipulates that its members will implement and maintain a quality

management system (QMS). [7]

ABC Projects is a member of the SAACE, and provides, to its clients, specialist

mechanical, electrical, instrumentation and control engineering services, as well as project

management services. It employs 15 people that include: one chief operating officer, one

secretary; two draughtspersons; and eleven engineers and project managers.

ABC Projects currently have a QMS based on the ISO 9001:2000, however it is not

being operated effectively, nor is it being monitored or improved, as required by ISO

9001:2000. [1]



The results of the Quality Management System - Employee Opinion Questionnaire

produced valuable data regarding the employees’ perception of the QMS used by ABC

Projects, and highlighted some areas of concern regarding the QMS. Various suggestions

by the employees for improving the QMS were also captured in Appendix A.

The results of the Quality Management System - Management Opinion Questionnaire

also produced valuable data regarding the directors’ perception of the QMS. However, the

data gained from the questionnaire seemed to indicate that a difference of opinion exists

among the directors regarding the current QMS. Similar suggestions to that of the

employees, for improving the QMS, were made by the directors and were also captured in

Appendix B.

The assessment of ABC Projects at the hand of the ISO 9001:2000 Standard [1]

indicated that although it does possess a QMS document that complies with the

requirements set by the standard, the organization itself does not fully comply with any of

the five main clauses of the standard. The main non-compliance issues were highlighted

during the assessment.

A 6-step process for improving the QMS of ABC Projects has been presented. This

process is modelled after the PDCA cycle described in section 3.3. In summary the process

is:

Step 1 – Define Operational Procedures.

Step 2 – Create a tailor-made QMS.

Step 3 – Appoint a dedicated QMS resource.

Step 4 – Incremental Implementation of Procedures.

Step 5 – Training.

Step 6 – Continuously Measure, Review and Improve.



CHAPTER 5 : SUMMARY, CONCLUSION AND

RECOMENDATION

5.1 SUMMARY

Many organizations of today find themselves in increasingly competitive markets. To a

large extent the quality of the products or services delivered by those organizations

determines their success and even survival. [3]

Since the emergence of quality management in the early 1950’s various methods and

models were developed to achieve quality in all aspects of organizations and a concept

known as Total Quality Management (TQM) was born. Another product of the focus on

quality management was the ISO 9000:2000 family of international standards. [6,12]

A model for TQM, presented by J.S. Oakland [3], was discussed and it provides a

framework for understanding, developing and implementing TQM in an organization. The

model is centred around four P’s (Planning, Performance, Processes and People) and three

C’s (Communication, Culture and Commitment).

The ISO 9000 set of standards have been developed over the past thirty years by the

International Organization for Standardizations and is recognized as the international

standard for Quality Management Systems (QMS’s). [12]

The ISO 9001:2000 standard is based on a methodology called the Plan-Do-Check-Act

methodology [3] and has five “main clauses” that set the requirements for a QMS. These

five main clauses cover the QMS itself, Management Responsibility, Resource

Management, Product Realization, Measurement, Analysis and Improvement. [1]

A consulting engineering company is a business that offers intellectual services, to its

clients, in the built, human and natural environment. ABC Projects is such a business and

also belongs to the SAACE which has established a code of conduct whereby its members

may operate and deliver these services. [7] In line with this code of conduct ABC Projects

has adopted a QMS that is based on ISO 9001:2000, but has not yet attained ISO

9001:2000 accreditation.



An assessment of the QMS used by ABC Projects, was made based on the five main

clauses of the ISO 9001:2000 standard. Two questionnaires were also circulated, and

feedback from the Employees of ABC Projects and the Directors of the ABC Group, was

captured.

Based on this assessment and the feedback that was captured, a 6-step process for

improving the QMS of ABC Projects was presented.

5.2 CONCLUSION

Due to the fact that organizations find themselves in increasingly competitive markets,

the quality of their products or service has become the factor that determines their success

and survival.

The subject of quality management has been widely studied and developed. Many

sources exist, with various models and methods for implementing a Quality management

System (QMS). [6, 11, 12, 13, 14, 15, 16]

The ISO 9001:2000 standard [1] is a generic framework that stipulates what an

organization’s QMS should consist of. It is due the fact that the ISO 9001:2000 standard is

written to be generic that it is somewhat vague.

ABC Projects has inherited a QMS, created by its parent company ABC Group PLC (a

London based company). This QMS is also written to be generic, in order for it to be

applicable to all the companies owned by the ABC Group. Similar to the ISO 9001:2000

standard the generic nature of the QMS, makes it somewhat vague, and detracts from its

effectiveness.

Numerous problems exist with in ABC Projects that prevent it from using the QMS

effectively. These problems have been highlighted, and at the hand of the 6-step plan

presented the problems could be solved.



5.3 RECOMMENDATIONS FOR FURTHER STUDY

Possible research studies that could be made include:

• A larger survey of the implementation of the ABC Group QMS could be made,

so as to identify what business units within the ABC Group have made

effective use of the QMS.

• Case studies could be made of other consulting engineering companies that

have successfully implemented a QMS and have attained ISO 9001:2000

accreditation.

• A study could be made between ISO 9001:2000 and other QMS standards, so

as to establish a better guideline of what a QMS should consist of.

• A generic model for quality management in a consulting engineering company

may be developed.

• A streamlined, computer based, quality management system may be developed

for consulting engineering companies.



BIBLIOGRAPHY

1. International Organization for Standardization (ISO). Quality Management Systems

– Requirements - Ref: ISO 9001:2000(E) , 2000.

2. R. Tricker, ISO 9001:2000 For Small Businesses 3rd Edition, Elsevier Butterworth-

Heinemann, 2005.

3. J.S. Oakland, TQM - Text With Cases, Elsevier Butterworth-Heinemann, 2003.

4. P.D.T. O’Connor. Practical Reliability Engineering – 4th edition, John Wiley & Sons

Ltd, 2002.

5. D.J. Van Den Berg, The Implementation Of Quality Standards In A Development

Organization, Rand Afrikaans University, 2000.

6. A. Al-Saket, A Case Study Of Total Quality Management In A Manufacturing And

Construction Firm, Rand Afrikaans University, 2003.

7. South African Association of Consulting Engineers (SAACE,

http://www.saace.co.za , 17 August 2007.

8. Association of British Certification Bodies (ABCB), Quality Systems In The Small

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quality/history-of-quality/overview/overview.html, 17 August 2007.



13. R. Aguayo, Dr. Deming – The American Who Taught The Japanese About quality, Carol

Publishing Group, 1990.

14. J.M. Juran, Juran On Leadership For Quality – An Executive Handbook, The Free

Press, 1989.

15. P. B. Crosby, Quality Is Free, McGraw-Hill, 1979.

16. P. B. Crosby, Quality Without Tears, McGraw-Hill, 1984.

17. Transcript of the interview between Mark Pitout (the Author) and Richard Baard

(Chief Operating Officer of ABC Projects), 19 November 2007.

- See Appendix C.

18. D.R. Cooper / P.S. Schindler, Business Reserch Methods, 9th Edition, McGraw-Hill,

2006.



APPENDIX A. QUALITY MANAGEMENT SYSTEM

EMPLOYEE OPINION QUESTIONNAIRE – AS

COMPLETED BY THE EMPLOYEES OF ABC PROJECTS



APPENDIX B. QUALITY MANAGEMENT SYSTEM

MANAGEMENT OPINION QUESTIONNAIRE – AS

COMPLETED BY THE MANAGEMENT OF THE ABC

GROUP



APPENDIX C. TRANSCRIPT OF THE INTERVIEW

BETWEEN MARK PITOUT (THE AUTHOR) AND

RICHARD BAARD (CHIEF OPERATING OFFICER OF

ABC PROJECTS), 19 NOVEMBER 2007