Matrix Certification Voith Siemens:three introducing remarks

Customers ask for information on role of OUs within VS regarding:• its financial and technical capacity,• its position relative to headquarter and other OUs,• its QM-System.

Complexity of projects becomes increasingly demanding:• growing need for internal collaboration between OUs,• complex interfaces with high penalties for delay and performance,• continuing cost pressure from the market side. Need for optimization of resources and processes / interfaces.

VS-Strategy: Matrix Certification based on new VS Management System• Matrix Certification among top management goals of all OU

Presidents Everybody is asked to do her / his best to make Matrix Certification

happen.

What is a Matrix Certificate ?

It certifies the compliance of a Management System with an Inter-national Quality Standard for an entire company with several affiliates.

Example Voith Siemens:Company: VSH + all VS-OUsInternational Quality Standard: ISO 9001:2000Management System: VS GDDs + Voith GDs

Example for Matrix „Business Function vs. OUs“: GDD = Group Division Directive

GD = Group Directive

SE

D

VS

Y

VS

MS

VS

CH

VS

PA

SH

EC

VS

FK

VS

H

VS

HK

VS

E

VS

PO

VS

O

VS

TR

SE

S

VS

M

VS

TO

ES

AC

VS

P?

VS

ID

Project Development xSales x x x x x x x x x x x x x xProject Management x x x x x x x x x x x x x xEngineering x x x x x x x x x x xProduction x x x x x xField Service x x x x x x

Matrix Certificate: how does it look like ?

One main certificate for Voith Siemens Hydro:• all VS OUs listed• all business functions listed• issued by one (central) Certification Body.

Separate local certificates for all OUs:• reference to main certificate• relevant business functions of OU listed• local certification body not listed.

VS TRQM Matrix Certification:the two main drivers

Oct 00 Mar 01 Oct 01 Mar 02 Oct 02 Mar 03

FY 2000/01 FY 2001/02 FY 2002/..

VS Mgmt. Systemestablished

ISO 9000:1994 ISO 9000:2000

transition phasepast futureManagement (inside)

view: implement VS

Management System a.s.a.p.

end "transition phase" include all OUs already

in certification audits 2002

Customer (outside) view: identical Quality standard

of all products and services throughout all VS-OUs

Matrix Certificate: Requirements, Pre-requisities (I/II) Products and services are similar/comparable at all

locations, There are central functions working for all locations The parent company applies a management system that is

also valid for all locations. For the relevant locations additional or deviating documents may exist for the description of special processes.

The legal responsibilities of the parent company and/or the management representative for all location must be guaranteed.

The manufacturing programs and/or manufacturing processes are standardized or similar at all locations.

There is an own product and process responsibility in the parent company.

Matrix Certificate: Requirements, Pre-requisities (II/II) The suppliers are assessed and selected centrally. The management system is supervised by the QM

representative of the board of management of the parent company. He/she has authority to issue directives for all locations.

The training requirement is determined centrally. All locations are subject to the internal audit program of the

company. At all locations the complete management system must be audited (to do).

A central management review must have been carried out (to do).

The certificate is withdrawn for the entire company, if one location meets the conditions for withdrawal. The exclusion of a ”problematic” location is not permitted as a matter of principle.

(!)

Milestones to Matrix Certificate VS

Oct 01 Mar 02 Apr 02 May 02

International Standards and internal directives publishedin Voith and VS-Intranet:• Standard DIN EN ISO 9001:2000• Group Directives J.M. Voith AG• Group Division Directives VS

TRQMMeeting

TRQM-Manual VS(MKe)

Certification auditsVSH + all OUs

Matrix Certificate

VS

Adaption of localMgmt Systems (I)

(OU-TRQMr)

Adaption of localMgmt Systems (II)

(OU-TRQMr)

Audits of theMgmt Systems

(OU-TRQMr)

Announcement of VS matrix certification goal (HPS)

Mgmt Review of VS Technical Risk and Quality

Mgmt System

VS

D w

i, M

Ke,

200

2-08

-21,

Sch

edul

e 3

Mat

rix C

ertif

icat

e V

S.p

pt

VS is about to complete the implementation of the new VS Management System. The VS Top Management has decided to aim at a Matrix Certification of the whole Company as soon as possible.

Review of TRQMM(all OUs)

Aug 02 Sep 02 Oct 02

GroupMeeting

Nov 02 Dec 02

Release TRQMM,selection of TÜVas Certification Body

For details

, contact

your OU-TRQMr

Matrix Certificate: Certification Body

Since most OUs had recommended their national TÜV organizations, VS has chosen TÜV Germany as the leading Certification Body.

Cooperation of TÜV Rheinland / Berlin / Brandenburg and TÜV Süd (Stuttgart / Munich) as leading body.

National TÜV organizations will be responsible for the local certification audits.

List of national TÜV organizations that will perform the local audits to be published soon at this place.

ISO 9000:2000 What’s New?

Product Realization

ProductService

Management of Resources

MeasurementAnalysis

Improvement

Responsibility

Input Output

QualitätsmanagementsystemKontinuierliche Verbesserung

Management

Input Output

Quality Management SystemContinuous Improvement

CUSTOMER

CUSTOMER

SATISFACTION

REQUIREMENTS

ISO 9000:2000 What’s New?

Four Main Chapters

• Management responsibility (General requirements, objectives, planning, quality management system, management review)

• Management of Resources (Human resources, information, infrastructure)

• Product Realization (Design and development, purchasing, production)

• Measurement, Analysis and Improvement (Customer satisfaction, internal audit, monitoring of processes, continuous improvement)

ISO 9000:2000 What’s New?

Important Changes:

The Management Review:

•The management review now requires a complete set of fact and data based reporting including customer satisfaction data and evidence for improvement

•The Management review Output now requires clear statements and action plans for:

- Improvement of the Quality Management System and its processes

- Resource planning in order to realize the improvements and overall Quality Management System- Improvement of product related items

ISO 9000:2000 What’s New?

Important Changes:

Resource Management:

•Resource Management now covers:- Training- Work environment- Financial resources

Continual Improvement

•Active determination of customer satisfaction•Process Improvement based on facts and data (performance indicators)

•Evidence that process improvements lead to a better overall company performance

The Matrix Certification

Affiliate

Headquarter

Affiliate

Audit

Affiliate

Audit

Affiliate

Audit

Certificate

Certif

icat

ion A

udit

VS has decided to include allOUs in certification audits 2002

The Matrix Certification

Affiliate

Headquarter

Affiliate

Audit

Affiliate

Audit

Affiliate

Audit

Survei

llance

Audit

AuditReport

Summary

Important Factors of Successful Process management:

• Develop processes across functions (Think process not function)

• Think Business Success not ISO 9000:2000 (ISO 9000:2000 is only a framework)

• Share process knowledge across organizational units

• Develop continual improvement platforms

• Create standards as far as possible and reasonable

• Connect Processes to measurable Indicators

• Include Process Performance reporting in normal performance report structure

• Facilitate systematic improvement by providing resources included in organization budget