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The Evolution of Management Systems

Posted on July 10, 2013 in Articles

Quality Journey

In its very broad sense, “Quality” can be defined as anything that can meet customer requirements. However, with the turn of the century there was a shift on how most organisations view such concept. Recent events in history highlighted these changes, from World War two’s consistency in bullet manufacturing up to the spread of market competition, businesses have realised that going beyond the numbers means becoming more “Quality Centric”.  
From Quality Assurance to Quality System to Quality Management System, Neville Clarke has been helping clients walk the Quality Journey through the thick and thin of ISO standards “revision” and “evolution”. This paradigm shift means that main focal point in strategic planning should be on the internal processes and people who would be involved during the undertaking. This “Quality Evolution” gave birth to Quality Management System (QMS) or better known as ISO 9000.
Adherence to ISO standards is more than just a certification, adherence to such structured management system guarantees a regulated set of internal processes, which in turns bridges customer requirements while at the same time ensuring quality as a habit and eventually a way of life. Tracing its roots from the manufacturing industry which has been useful in its first version in the 80’s, it had evolved to its latest version which are ISO 9000:2005 (definition of terms), ISO 9001:2008 (requirements) and ISO 9004:2009 (sustained organizational success), collectively known as the ISO 9000 series, it can be applied to all types of industries. And we see it furthering to evolve to what we anticipate as ISO 9001:2015.
From the 20 elements of ISO 9001 back in the lated 80’s to early 90’s, it has evolved to be the PDCA model we know today and towards the   structure we will see onwards containing requirements for Leadership, Planning, Support, Operations, Performance Evaluation and Improvement,  ISO 9001 had evolved to become the baseline standard for companies summarizing the general intent for Management System Planning, Operation Planning and Control and towards Continual Improvement , Sustainability, and Excellence. 
However, such flexibility was put into test by some industries as internal processes needed more details to assure its objectives for its customers. Operational differentiation led to a second wave of “Quality Evolution”, this time centring on both quality and other aspects that a specific industry would require. This in turn gave birth to the new sets of ISO management systems that would answer the industry-specific needs and requirements. 
“Quality” Interpretation per industry
The generality of the ISO 9000 series worked as a baseline for organisations who are seeking to standardise their internal processes. However the operational differences among industries proved that quality control does not exist in a vacuum. That is, provisions within the ISO 9000 series must be carefully examined and interpreted in order for it to fit a particular industry. 
As part of the second wave of “Quality Evolution”, organisations began to realise that people and process are rather too broad if one is to contain the idea of quality. This means, other factors unique to their industry also play a crucial role when aligning one’s quality management systems versus business operations. Below are some of the standards that sprung out of baseline Quality Management System:
ISO/TS 16949 (Automotive Management System) Integrates ISO 9000 framework’s important practices on: advanced quality planning, failure mode and effect analysis, statistical process control, measurement system analysis and part approval process along with lean manufacturing and operational efficiency
ISO 22000 (Food Safety Management System) Integrates the seven principles of the Hazard Analysis and Critical Control Points (HACCP) system. ISO 22000 specifies the requirements for a Food Safety Management System (FSMS) that involves interactive communication, system management, prerequisite programmes and HACCP principles.
ISO 13485 (Medical Devices Management System) Specifies requirements for a quality management system that can be used for the design, production, installation and servicing of medical devices.
ISO 17025 (Laboratory Management System) Standard for the technical competence on calibration and testing laboratories; requires demonstration of a quality system on processes, documentation and management, that generates technically valid results
ISO 20000 (Information Security Management System) Links the relevant management system and the implementation strategies for planning service quality during system development process for the Information Technology servicing organisations
ISO 28000 (Supply Chain Security Management System) Requires the organisation to assess its security needs and determine if adequate security measures are in place and if regulatory requirements are complied with. These considerations will help determine the policies, objectives and controls to be applied within the supply chain
ISO 29001 (Quality Management System for Oil and Gas Industry) Aims to reduce industrial risk, compliance to statutory and regulatory requirements within the petroleum industry and increase confidence in supplier product and process. A result of collaboration between ISO and the international oil and gas industry, i.e. the American Petroleum Institute (API)

While new sets of standards provides answer to industry specific interpretation and putting a structure for its operational control, additional new standards came to realisation as an answer to the changing times gave way to furthering the “Evolutions on Management Systems”. These standards grew from the initial success of quality management system efforts and on towards a bigger business perspectives. Some of these standards put emphasis on concerns beyond customer satisfaction but the stewardship for certain community and societal goals in the principle of sustainability and sustained organizational success.

The emergence of new standards include a thrust for risk assessment and having contingency plans for operations in the event of materialization of certain risks like power shut down, accident or incident, calamity and natural disasters, information breaches, among others heeding the need for protection and crisis management against any natural effects of a disaster and climate change. As such, risk management comes into full force as it sees through the effectiveness of objective and target setting from the fundamentals of the risk realizations. The drive for sustainability standards likewise came into the picture, below are some of the sustainability standards that are introduced to us by ISO. Today, we see management system evolving from operational controls to risk-based strategy and operation planning, and onwards to business impact analysis, risk and issue identification towards business continuity and sustainability. These are evident with the recent releases of the new ISO standards confirming the continuing thrust for the “ Management System Evolution”.

ISO 14001 (Environmental Management Systems) Specifies requirements for environmental policy, determination of environmental aspects and impacts, planning of environmental objectives and targets, and implementation of programmes to meet them.
OHSAS 18001 (Occupational Health and Safety Management System) Framework for organisations to examine issues the allocation of resources, assignment of responsibilities and on-going evaluation of health and safety practices, procedures and processes systematically.
ISO/IEC 27001 (Information Security Management System) Addresses the all-too common and often devastating business impacts such as incidents and breaches due to viruses, loss of information, improper disclosure and inability to retrieve information – the comprehensive thrust to protect Confidentiality, Integrity and Availability
ISO 22301 (Societal Security Management System/Business Continuity Management System) Helps company to continue to operate to meet minimum business level of operations including statutory, regulatory and contractual obligations. Business Continuity Management is a management process that provides a framework to ensure the resilience of a business to any eventuality, to help ensure continuity of service to key customers and the protection of a company’s brand and reputation.
ISO 50001 (Energy Management System) This standard will provide public and private sector with management strategies to increase energy efficiency, reduce costs and improve energy performance

Knotting the pieces together towards excellence
As separated as these standards may sound, integration of standards can be done in order to simplify the monitoring of the different standards. The concept of an Integrated Management System was first introduced when organisations started to question the possibility of just having one management system, this singular system would then be able to accommodate future process and system changes without having to decompose.

PAS 99, or the integration framework for the different management system, takes ISO standards a notch higher because it allows business a certain degree of simplicity instead of having to monitor and maintain their ISO standards separately. Integration can be one of the many ways an organisation align itself to further expanding their business process, and with the continual evolution of how standards are being tailor fitted to better fit business requirements, we are likely to see more standards being introduced and being converged together in order for businesses to evolution across Management Systems. New standards are now on its way to the evolution of its structure around the framework of PAS 99.

However, the “Management System Journey” does not end with convergence. That is, going beyond the “Standard and Conformity” does not mean beings able to achieve “Excellence”. As such, the evolution comes to its highest form through the synergy of different standards and alignment of business goals to a more competitive and “Excellence Centred” framework.

Provision for a framework of operational excellence equates to expanding the business methodology in order to adapt to new/best practices. This would also allow for a greater degree of control and improvement measure as the organisation adapts a culture that is more proactive to certain situations. Adherence to such new and best industry practices is something that ISO 13053 lays on the table. It introduces how quality methods in process improvements can be dealt with through the Define-Measure-Analyse-Improve-Control (DMAIC) methodology. Decomposing the methodology, DMAIC can be viewed as follows:

Present MS: Management System Framework Product Realization / Implementation and Operation Management Responsibility and Resource Management Measurement Analysis and Improvement / Checking and Management Review   
New MS: Management System Framework Operations Planning and Control Leadership and Planning Performance Evaluation Improvement Phase
OE: Operational Excellence / Six Sigma Framework Business Processes  Define Measure Analyse Improve Control

Integration of the DMAIC methodology into management systems allows for a greater degree of operational confidence for management, this is made possible because of the complementary mix of problem solving framework (DMAIC) and standardisation approach (ISO) to business operations. Simply put, DMAIC takes care of the figures that are critical in analysing potential and possible problems that can be encountered to support the management system, while ISO harmonises the internal process to put better flow in business operations.

With all the revisions and changes management systems have gone through over the course of history, we are likely to expect that more and more versions and revision will be released in the near future. These changes are something businesses can always look forward to, as it indicates the willingness to change and grow on their way to becoming a more mature organisation and hopefully towards sustainability and excellence – and at best who would not want Sustainable Excellence.

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