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Implementing ISO 9001 and 14001 Quality and Environmental Management Systems for a Small Business Master Thesis handed in at Mälardalen University Department of Computer Science and Electronics In cooperation with Aros Glas AB Fall 2006 – Winter 2007 Submitted by Dinora Rakhmanova Vicken Serkis Faruk Dagidir Supervisors: Bengt-Inge Andersson (Mälardalen University) Johan Falk (Aros Glas AB) 1
Transcript

Implementing ISO 9001 and 14001 Quality and Environmental Management Systems for a Small

Business

Master Thesis handed in at Mälardalen University Department of Computer Science and Electronics

In cooperation with Aros Glas AB

Fall 2006 – Winter 2007

Submitted by

Dinora Rakhmanova Vicken Serkis Faruk Dagidir

Supervisors: Bengt-Inge Andersson (Mälardalen University) Johan Falk (Aros Glas AB)

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I. Abstract A new quality management system needs to be implemented in a small company. Environmental issues need to be addressed as well. The focus of this thesis is to take on these challenges by implementing ISO 9001 Quality and 14001 Environmental international standards. These standards are the guidelines that help establish organized and efficient business policies and practices. A step by step approach is taken to implement ISO standards for the small local glass company Aros Glas AB. First, the advantage of implementing ISO standards is analyzed. Second, the Aros Glas AB organization is broken down to gain an insight into how ISO 9001 and 14001 can be used. Finally, the complete documentation is presented and explained with future recommendations provided. II. Preface Upon completion of our courses in International Project Management Masters program, we searched for thesis work with any Swedish company. Our motive was to perform affordable and valuable research services for a small business. We had initially sent applications to various companies offering to do research for them on various topics such as earned value analysis and risk calculations for their projects. Despite our efforts, it was not easy to find a willing company to accept these services by young and ambitious project management students. Fortunately, our professor Bengt-Inge Andersson (BIA) was able to introduce us to a local glass company in Västerås and help convince the Managing Director of this company to realize and accept the importance of our new topic, “Implementing ISO 9001 and 14001 Quality and Environmental Management Systems for a small business” The main problems we noticed at this glass company, Aros Glas AB, were the inefficient quality management system and inexistent environmental management system. These problems especially became evident in times when many orders are placed and a hectic business environment ensued. The business was quite disorganized and this is where we believed our work would have the greatest impact, helping Aros Glas AB organize business operations. The main challenges that arose for us came from our inexperience with ISO and our unfamiliarity with Aros Glas AB day to day operations. This was overcome by a team effort, hard work and close cooperation with members of Aros Glas AB. A critical part of our work was to establish accurate and effective quality and environmental related documents from scratch and guide Aros Glas AB management in implementing these procedures. It proved to be a challenge worth taking and we are grateful for the opportunity and experience we received. The proceeding documents and diagrams were created by our thesis team unless noted otherwise. We would like to thank all those who helped us throughout this endeavor particularly BIA, Johan Falk and the staff of Aros Glas AB.

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III. Table of Contents 1. Introduction to the Organization...........................................................5

1.1 Introduction to ISO ...........................................................................................5 1.2 Introduction to the Organization.......................................................................5

2. Problems at Aros Glas ..........................................................................6

2.1 Management Perspective ..................................................................................6 2.1.1 Quality and Environmental Policy .............................................................................. 6 2.1.2 Poor Communication................................................................................................... 6 2.1.3 Responsibilities ........................................................................................................... 6 2.1.4 Employees ................................................................................................................... 6

2.2 Employee Perspective.......................................................................................6 2.2.1 New management ........................................................................................................ 6 2.2.2 Environment ................................................................................................................ 6 2.2.3 Work Forms................................................................................................................. 7

3. The Objective .......................................................................................7

4. Expected Results ..................................................................................7

5. The Relation to International Project Management..............................8

6. Methodology ........................................................................................9

7. Understanding and Conforming to the ISO 9001Quality Management System ....................................................................................................10

7.1 What is a Quality Management System?........................................................10 7.2 What Does ISO 9001 Certification Mean for Aros Glas AB? .......................10 7.3 ISO 9001:2000 Objectives..............................................................................10

8. Understanding and Conforming to the ISO 14001 Environmental Management System ..............................................................................10

8.1 What is an Environmental Management System?..........................................10 8.2 What Does ISO 14001 Certification Mean for Aros Glas AB? .....................11 8.3 ISO 14001:2004 Objectives............................................................................11

9. The Solution: Implementing ISO 9001 and 14001.............................11

9.1 Step 1: Understand ISO 9001 and the Quality Policy Manual .......................12 9.2 Step 2: Understand Aros Glas AB, in relation to ISO 9001and 14001 ..........12

9.2.1 Process Approach...................................................................................................... 12 9.2 Organization Structure ................................................................................................. 17

9.3 Step 3: Draft the Quality Policy Manual ........................................................19 9.3.1 Section 4: Quality Management System ................................................................... 20 9.3.2 Section 5: Management Responsibility..................................................................... 20 9.3.3 Section 6: Resource Management ............................................................................. 21 9.3.4 Section 7: Planning to Realize the Product and Service ........................................... 21

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9.4 Step 4: Identify and Document the Operating Procedures for ISO 9001.......21 9.4.1 OP 1: Review and approval of offers and contracts.................................................. 22 9.4.2 OP 2: Approval of suppliers and subcontractors...................................................... 22 9.4.3 OP 3: Controlling the processes, including in-process ............................................. 22 9.4.4 OP 4: Control of materials including non-conforming product ................................ 23 9.4.5 OP 5: Control of measuring and process equipment................................................. 23 9.4.6 OP 6: Procedure for training ..................................................................................... 23 9.4.7 OP 7: Management review, internal audits and corrective/preventive actions ......... 23 9.4.8 OP 8: Control of documentation data........................................................................ 24 9.4.9 OP 9: Quality, inspection and test records ................................................................ 24 9.4.10 OP 10: Covering quality objectives and continual improvement ........................... 24 9.4.11 OP 11: Covering internal and external communication .......................................... 24

9.5 Step 5: Start to issue and implement Operating Procedures for ISO 9001 ....24 9.6 Step 6: Document fully ISO 9001 ..................................................................24 9.7 Step 7: Draft the Environmental Policy Manual ............................................25 9.8 Step 8: Identify and document the operating procedures for ISO 14001.......25

9.8.1 OP 1. Disposal of Controlled Wastes........................................................................ 26 9.8.2 OP 2. Waste handling and segregation...................................................................... 26 9.8.3 OP 3. Environmental communications...................................................................... 26 9.8.4 OP 4. Energy control and monitoring ....................................................................... 26 9.8.5 OP 5. Company cars.................................................................................................. 27 9.8.6 OP 6. Environmental objectives and targets ............................................................. 27 9.8.7 OP 7. New products and processes ........................................................................... 27

10. Recommendations ............................................................................27

11. Conclusion........................................................................................28

12. References ........................................................................................29

13. Appendix ..........................................................................................29

13.1 ISO 9001 and ISO 14001. in brief ................................................................29 13.2 Interviews......................................................................................................29 13.3 Quality Policy Manual ..................................................................................29 13.4 Quality Management Operating Procedures.................................................29 13.5 Environmental Policy Manual ......................................................................29 13.6 Environmental Management Operating Procedures.....................................29 13.7 Operating Procedure Summary and Recommendations for Aros Glas AB .29

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1. Introduction to the Organization

1.1 Introduction to ISO The International Organization for Standardization (ISO) is an international standard-setting body composed of representatives from national standard bodies and produces world-wide industrial and commercial standards called the ISO standards. The word ISO comes from the Greek word “isos” which means equal. The reasoning is that this reflects the aims of the organization to equalize or standardize across cultures [1]. ISO 9001 deals with all aspects of Quality Management while ISO 14001 deals with Environmental Management.

1.2 Introduction to the Organization Aros Glas AB was founded in 1962. Its current Managing Director is Johan Falk who took over the responsibility in 2005. The Managing Director is responsible for quality while maintaining executive control review and responsibility as well as delegating the day-to-day management and reporting of the quality system to the Site Manager Fredrik Hedin. The company supplies products and services such as glass service jobs, metal work and car window repair. These are provided, using trained and experienced staff comprised of 15 individuals. The company operates from a modern unit factory on one site which is in the city of Västerås, Sweden.

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2. Problems at Aros Glas Aros Glas AB has several reasons for implementing ISO 9001 and 14001, most of all as a tool to help better organize the company and improve the business in general. The following list of main problems at Aros Glas AB was summarized after completing brainstorming activities with both management and employees separately:

2.1 Management Perspective Management includes the Managing Director, Site Manager, Calculator and Accountant.

2.1.1 Quality and Environmental Policy • The current Quality Policy is vague and recycled from the old management • It does not reflect the current company and management • A Quality and Environmental Policy must be written • A Quality and Environmental Management System must be created

2.1.2 Poor Communication • Management communication is not up to company standards • Information is not transferred properly throughout the organization • Messages to one another are forgotten or lost • Internal communication with employees is poor • Management does not know where the employees are throughout the day • Meetings are also not as productive as expected

2.1.3 Responsibilities • The employees’ job coordination is not organized as efficiently as it can be • Work orders are left unattended • Occasionally, tools are used and not put back in their place

2.1.4 Employees • Management feels they do not have full cooperation from their employees • Employees do not complete the necessary jobs if they are difficult until it is

absolutely necessary or insisted upon by management.

2.2 Employee Perspective Employees include the heavy and light aluminum glaziers, service glaziers, car window assemblers and interns.

2.2.1 New management • Employees do not like how the new management is disorganized and not

working as hard as they should

2.2.2 Environment • The work environment is always messy

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• Some employees do not take care of the work environment however expect new storage facilities, in particular locker rooms, to be completed

2.2.3 Work Forms • Employees feel that their work forms are inadequate and in need of

renewing

3. The Objective The objective for Aros Glas AB is to become ISO 9001 and 14001 certified which should theoretically improve both internal business practices and relations with suppliers and both present and future customers while establishing both Quality and Environmental Management Systems. The objective of this thesis is to first understand the necessary steps in getting Aros Glas AB ISO 9001 and 14001 certified, create and write the complete required documents related to these standards and then help the Aros Glas AB Managing Director, Johan Falk, implement these necessities. Thus, it is also crucial to understand the processes involved at Aros Glas AB and document all operating procedures that correspond with ISO 9001 and 14001. Since customer relations are reported as very good, the focus remains on improving the internal turmoil at Aros Glas AB.

4. Expected Results A new quality and environmental policy with management will be created, one that directly relates to the intentions and quality plans of Aros Glas AB and follows ISO 9001 and 14001 protocols. By incorporating new systems based on ISO 9001 standards it is expected that workloads of Aros Glas AB will be managed more effectively, as such, reducing time delays and improving customer satisfaction by getting all jobs done on time. Management symmetry will be established by incorporating the standards required by ISO. Management should follow the routine standards and practices in order to improve internal communication with employees and gain certification from an accredited certifying body. By implementing ISO 14001 a cleaner, more efficient and professional work environment which enforces environmentally sound policies will be established. It is expected that better cooperation and dialogue shall be established between management and employees along with more emphasis on the importance of a clean work environment. In addition, a new and improved work form is also expected to be created.

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It is not expected that all the problems at Aros Glas AB upon shall be taken care of upon completion of this thesis, for example, installing locker rooms. However our aim and ambition is to satisfy the agenda set in place by working in cooperation with Aros Glas AB. In particular, the goal remains to work closely with the Managing Director to provide the Aros Glas AB organization all the necessary ISO documentation upon handover, which we deem the fundamental step in implementing these standards. These management systems can not exist without proper documentation. Therefore we shall create reports and documents that correspond with ISO vocabulary, standards and requirements. As such, the transition into an ISO 9001 and 14001 certified company can be made with minimal discomfort.

5. The Relation to International Project Management ISO 9001 and 14001 are concerned with quality management and environmental management respectively.1 In this regard implementing ISO 9001 and 14001 standards are directly related to studies in International Project Management since both of these branches of quality and environmental management are key areas in project management. In quality management the focus is on both internal and external aspects of creating sound management procedures and thus satisfying customer needs. Practical solutions using the ISO 9001 guidelines to incorporate cost-effective and practical solutions are found within these proceeding pages. Environmental standards also focus on internal and external aspects and how the company can become more economically efficient while posing less harmful impacts on the environment. Here the task is to look for ways to reduce waste, incorporate proper waste disposal and find ways to become energy efficient. This means working closely with the Managing Director and getting an, “up-close and personal” insight into day to day managing and operations at Aros Glas AB. Circumstances arose that enabled us to witness how a Swedish glass company operates first hand. Despite the thesis focusing on internal quality and environmental procedures, the chance to visit company customers and witness sales procedures with the Managing Director and Site Manager emerged. Furthermore an opportunity came up to travel to the south of Sweden and parts of Denmark to witness the relation with Aros Glas AB suppliers and discuss future purchasing opportunities. These were a few of the small perks that provided a deeper insight into the ongoing tasks of project managers and project management disciplines.

1 Refer to Annex 1

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6. Methodology The Master thesis is based on qualitative research methods as the paper deals with developing better practices and procedures at the company. The main methods used for research in this paper are interviews, online searches and ISO related books. First, to get an idea of what exactly ISO 9001 and 14001 standards meant it was vital to interview the companies and organizations who already had the certification for these standards. As Mälardalen University is ISO 14001 certified, the first interviews were arranged with the staff who were active participants while implementing the process of ISO 14001 and who currently control and monitor this standard within MDH. Through the interviews with Nedim Bahar and Theresa Andersson, basic information on where to start, which books to purchase, and which companies would be most helpful to interview in relation to glass work and ISO were provided. The next interview was with the manager of ISO standards at ABB. He mainly introduced the ISO 9001 standard and showed what his team did while implementing these standards to the company. He also gave useful tips specific to small and medium businesses within the glass industry concentrating on Aros Glas AB in size, management system and service. Via online searches, the books directly issued by the ISO Organization were discovered. The most useful books as guidelines to our project were written by consultants in the ISO field. The books issued by the ISO Organization give a full introduction and detailed description of the content of ISO 9001 and 14001. The recommendations given by the consultant-authors were followed to prepare the appropriate documentation for certification. Very frequent interviews with the Managing Director of Aros Glas AB and his arranging interviews with staff members from each department helped in breaking down the company processes, services/products, detailed insight into management, the issues that needed to be corrected in the future, the mission and the vision. Towards the completion of ISO 9001 documentation an interview with an ISO 9001 consultant at HSB Mälardalen to discuss our work progress was conducted. The same work had been done during the interview with the manager of the ISO 14001 standard at Carl Hans AB to consult the progress of the ISO 14001 documentation. While conducting research and documentation, the necessary documents to Aros Glas AB’s business mission and vision were clarified. Some recommendations for the improvement of the management and service processes/procedures were given. All the drafts of the documentation were discussed with and confirmed by the Managing Director in frequent meetings sometimes once a week or twice a week. Work was conducted from the thesis office provided by Mälardalen University and when necessary the tasks were divided amongst the thesis team. Many weekly meetings were held to reach targets and establish new deadlines.

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7. Understanding and Conforming to the ISO 9001Quality Management System

7.1 What is a Quality Management System? In order to conform to the current standard of ISO 9001, referred to as ISO 9001:2000, the Aros Glas AB organization must have a Quality Management System (QMS). A QMS directs and controls those business activities which are associated with quality and documents a systematic approach to business objectives within the organization [2, p.17].

7.2 What Does ISO 9001 Certification Mean for Aros Glas AB? Certification itself is not a mandatory requirement of implementing ISO 9001 [2, p.25]. Certification to ISO 9001:2000 simply means that the QMS is formally recognized by an Accredited Certification Body. An accredited Certification Body (CB), “are organizations certified to be qualified by a national body to perform audits to a standard (e.g. ISO 9001) and to register the audited facility as meeting these requirements for a given standard” [3]. Becoming certified means Aros Glas AB should have activated effective policies and procedure standards at the workplace.

7.3 ISO 9001:2000 Objectives There are two major objectives when implementing a QMS system based on ISO 9001. The first is achieving quality assurance of the product and service and the second, to enhance customer satisfaction [2, p.34].

8. Understanding and Conforming to the ISO 14001 Environmental Management System

8.1 What is an Environmental Management System? An Environmental Management System (EMS) puts policies in place in order to create a minimal impact on the environment while incorporating efficient methods and practices. To further elaborate on this definition we can refer to Wikipidea’s definition that, “The environmental management system (EMS) is part of a management system of an organization (enterprise, authority, etc.), in which specific competencies, behaviors, procedures and demands for the implementation of an operational environmental policy of the organization are defined. The most popular kind of EMS is ISO 14001” [4].

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8.2 What Does ISO 14001 Certification Mean for Aros Glas AB? The Aros Glas AB organization understands the importance of taking care of nature and minimizing harmful effects to the environment. Because most human beings are involved in some kind of a group or organization, to work together and manage the environment is the best known solution to prevent further disorder and damage to the ecology and environment. One of the best and most popular standards which is operating in modern times is the ISO 14001 environment standard. With ISO 14001 certification an environmental policy shall be established along with public recognition.

8.3 ISO 14001:2004 Objectives ISO 14001 encourages organizations to minimize damage and create a workplace that promotes environmentally friendlier means of production and services. Living in such modern times, different kinds of production and services are offered all over the world, every individual inputs some negative and positive impacts to this environment. Nowadays all continents are feeling climate change. Aros Glas AB will do its share to minimize the impact they have on the environment.

9. The Solution: Implementing ISO 9001 and 14001 The standard, ISO 9001:2000, gives a framework for good management practice and specifies a set of things that need to be included, but does not say how to do them [2, p.36]. This is where the brunt of effort is required. The QMS based on Aros Glas AB business practices needs to be built. An effective step by step approach popularized by F.P Dobb [5] is used as a general roadmap and modified to incorporate the needs and priorities required by Aros Glas AB. The step by step approach was broken down by our thesis team in the following manner: Step 1: Understand ISO 9000 and the Quality Policy Manual Step 2: Understand Aros Glas AB, in relation to ISO 9001 and 14001 Step 3: Draft the Qualtiy Policy Manual Step 4: Identify and document the Operating Procedures for ISO 9001 Step 5: Start to issue and implement the Operating Procedures for ISO 9001 Step 6: Document fully ISO 9001 Step 7: Draft the Environmental Policy Manual Step 8: Identify and document the Operating Procedures for ISO 14001 The remaining steps focus on the internal management of Aros Glas AB. Though not the focus of this thesis, the remaining steps are beneficial to Aros Glas AB on their way to becoming certified and are worth noting. The responsibility of the following steps lies with Aros Glas AB management though consulting will be available if requested. Step 9: Start to issue and implement the operating procedures for ISO 14001 Step 10: Document fully 14001

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Step 11: Implement fully ISO 9001 and 14001 Step 12: Consolidate the systems and begin effective internal audits Step 13: Choose the assessment body Step 14: Plan and stage manage the assessment Step 15: The frightener talk Step 16: Preparing for Assesment Step 17: A successful assessment and registration Step 18: Progress after registration.

9.1 Step 1: Understand ISO 9001 and the Quality Policy Manual The first goal was to understand what exactly ISO 9001 is and how to go about implementing the standards at Aros Glas AB. Several online sites were reviewed along with ISO books. Ultimately, a select group was deemed vital towards successful implementation. Next, a series of interviews commenced. People responsible for ISO 9001 at ABB and HSB Mälardalen along with responsible persons for ISO 14001 at Mälardalen University were interviewed in order to gain second hand experience with the practical implementation of ISO 9001 and 14001. After understanding ISO 9001 it was clear that a Quality Policy Manual (QPM) needed to become certified.

9.2 Step 2: Understand Aros Glas AB, in relation to ISO 9001and 14001 Having gained a deeper insight into the practical implementation of ISO 9001 and 14001 through such interviews, it was time for the second step; Gaining a deeper insight into Aros Glas AB and the relation to ISO 9001 and 14001. An interview process was initiated at Aros Glas AB in order to truly understand the inner workings of the company and become familiar with the employees. A questionnaire was used to interview employees from all sectors of Aros Glas AB, including Management.2

9.2.1 Process Approach ISO 9001 incorporates a process approach. A process approach is defined as, “The application of a system of processes within an organization, together with the identification and interactions of these processes and their management” [2, p.37]. As a result it was vital to identify numerous linked activities. Upon Completing the set of interviews a flow chart was designed by our thesis team breaking down the main business activities and processes at Aros Glas AB.

2 Refer to Questionnaire in the Appendix at Annex 2

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Aros Glas AB supplies products and services such as glass service jobs, metal work and car window repair. The major business activities can be broken down into four major processes; Sales, Purchasing, Performance and Invoicing all of which focus around the customer (Figure 1).

Figure 1: Four major business activity processes with focus on the customer

The Sales process is the first stage (Figure 2). Customer orders are received and a decision is made as to whether a tender is required. If the work is to be done on a car then the relevant information is gathered. If the work involves going to the customer’s site work orders are assigned to workers, the job’s requirements are measured, extra options are marketed to the customer and a workers summary report is sent to the manager. Upon completion of all cases, a price list is sent to the customer. If the customer rejects the offer there is no more action taken, however an acceptance means Aros Glas AB can begin the Purchasing stage.

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Figure 2: Sales process When the Sales stage is complete and the Purchasing stage begins (Figure 3), Aros Glas AB management must check to see if the necessary parts are in the warehouse. If it is a car job and parts are necessary Aros Glas AB has their trusted supplier whom will deliver the required parts. Otherwise a request is sent to various suppliers and a supplier is decided on based on merit regarding price, quality, and familiarity. The parts are received, inspected to be correct and then stored at Aros Glas AB headquarters. A Payment is made within the required time (30 or 60 days), and the work performance can commence.

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Figure 3: Purchasing process Performance deals with the main service work performed by Aros Glas AB (Figure 4). If the work is to be done on a car, the car is received and moved into the garage where work is performed, inspected and then handed over to the customer. If the job is not a car job it is put in a cue. However, if the job is an emergency repair, the job is made a priority and assigned to workers to be started on immediately. Upon completing the work an inspection is done followed up by the handover of completed works to the customer. When all works are complete an invoice is issued to the customer.

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Figure 4: Performance Process Invoicing is the final stage of work at Aros Glas AB (Figure 5). When a completed work report is submitted by employees to management an invoice is sent to the customer. The work report is then archived and the payment is collected. The invoice is marked as paid in the computer database, feedback is gained from the customer and the transaction is considered complete.

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Figure 5: Invoice Process

9.2 Organization Structure Having understood the work conducted at Aros Glas AB it was also important to map out the organization structure to identify all the personnel involved in the organization. Aros Glas AB is a small company with 15 employees. Based on interviews and meetings with the management and employees at Aros Glas AB the following roles were obtained. The management is composed of the Managing Director, Site Manager, Contractor and Accountant.

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The main role of the Managing Director is to manage the overall business and maintain control of what happens in the company. Responsibilities include budgeting supporting site managers, supplier contracts, composing meetings, searching for new clients and finding new suppliers and offers. In addition the Managing Director is in charge of work related to ISO issues. The Site Manager is mostly responsible for the inner workings of the company, making sure everyone works as a cohesive unit. Other major responsibilities include being in charge of daily operations, staff questions, vacation times for employees, making sure the right personnel are at the right place (in conjunction with the Contractor), answering phone inquiries, helping customers at the front desk, job searching, creating offers, and company marketing. The Contractor (or Calculator as a literal translation from Swedish to English) is responsible for making sure that all contracts and respective offers are on time, contracts are check up on, together with the Site Manager making sure that the right personnel are at the right place, answering phone inquiries, helping customers at the front desk, job searching, calculating the cost and necessities of large jobs, creating offers and company marketing. The Accountant’s priority is bookkeeping (pricing, invoicing, ledgers, reminders, taxes), answering the phone and helping customers. The Workers are the brawn of the Organization. In Aros Glas AB there are five main work groups; Car assembler, heavy aluminum glazier, light aluminum glazier, service glazier and intern. The Car assembler is responsible for all jobs in the car workshop, supplying inventory, requesting more personnel when necessary and ordering the right kind of windows and supplies in cooperation with the staff in the office. The heavy aluminum glazier is responsible for handing correct measurements and other information to the Contractor, asking for the right personnel from the Contractor and Site Manager (in advance before the job begins) or asking for the right personnel when the offer is presented, making sure that all additions during the work are ordered correctly and leaving these to the Contractor (signed by the one who made the order), booking the necessary help, picking up items during work, making sure all assemblies are done correctly, safety of the work area and reporting problems immediately to the Site Manager/Contractor. The light aluminum glazier makes measurements, orders information, makes sure jobs are done correctly, together with a partner booking time with customers, and giving the correct information to the Site Manager. The service glazier check the job quality, makes sure that no orders are lost, is responsible for correct glass measurements and leaving the order info to the Site Manager. Interns are responsible for keeping the work shop clean and safe as well as removing glass from the floor and ground outside the workshop. A basic breakdown can be found in Figure 6.

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Managing Director

Contractor/Calculator

Site Manager

Accountant

WorkersCare AssemblerHeavy Aluminum GlazierLight aluminum GlazierService GlazierIntern

Figure 6: Organization Structure at Aros Glas AB All our findings allowed us to decipher how the ISO standards, Aros Glas AB processes and employees link together. In turn we were able to write a Quality Policy Manual alongside the Managing Director and Operating Procedures which define the workings of the Aros Glas AB policies that correspond with ISO 9001 and 14001 standards.

9.3 Step 3: Draft the Quality Policy Manual Drafting the Quality Policy Manual (QPM) was an important step.3 This manual laid out the general quality policy at Aros Glas AB and was the groundwork for establishing the operating procedures to meet ISO 9001 requirements. The reference numbers and the title of the paragraphs of the draft generally correspond with the paragraph or clause numbering of ISO 9001:2000. A general template was used.4 The first draft and modified to suit Aros Glas AB’s specific requirements. The use of such a template had 3 The Quality Policy Manual is attached in the Appendix at Annex 3. 4 Template from [5]

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noteworthy benefits. For one, it was from an experienced source in the ISO field and secondly it guaranteed the documents created by our thesis team coincide with the standards of ISO and left little room for error due to consistency in all written documentation. There were no notable disadvantages. Upon completion of the first draft a meeting was established with the Managing Director at Aros Glas AB and revisions were made. A Second draft led to more revisions and a third draft proved worthy enough to be translated into Swedish. Despite our efforts and gains with the Swedish language, the translation was beyond our capability though it was easily taken care of by Aros Glas AB. All formal documents were presented to Aros Glas AB in English. The Quality Policy Manual begins with an introduction to the organization and continues with the general policies within Aros Glas AB that conform to ISO 9001 policies. The first standard necessary is numbered as section four in Quality Policy Manual. The numbering system of the Quality Policy Manual was set to correlate to ISO 9001 standards therefore the first major section is numbered Section 4.

9.3.1 Section 4: Quality Management System The Quality Management System section emphasizes the fact that Aros Glas AB covers the general requirements of ISO 9001, “The organization shall establish document, implement and maintain a quality management system and continually improve its effectiveness in accordance with the requirements of this International Standard” [2, p.53]. In particular, all subsequent headings under section four emphasize Aros Glas AB’s commitment to:

• Satisfying the requirements for documentation • Creating and updating a QPM • Controlling of documents • Controlling of records

9.3.2 Section 5: Management Responsibility Section Five of the QPM deals with management responsibility. According to ISO 9001 management must provide evidence of its commitment to establishing and implementing the quality management system and continually improving on its effectiveness. Under this section we can find details on Aros Glas AB’s commitment to:

• Management • Focusing on customer requirements

The Aros Glas AB quality policy is also located in this section. Another important feature of section five is the Aros Glas AB policy in regards to planning. Measurable quality objectives along with quality management system planning are described.

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Responsibility, authority and communication are noted here too. Responsibilities and authorities are defined and communicated within the Organization, a management representative chosen (the Managing Director has this role), internal communication is formalized and management review planned.

9.3.3 Section 6: Resource Management Section Six focuses on Resource Management. It is required by ISO to show document the way resources are managed, with a continual improvement approach to satisfy customers. This section provides information on how Aros Glas AB deals with:

• Resource allocation • Human resources • Infrastructure • Work environment.

9.3.4 Section 7: Planning to Realize the Product and Service The focus of section seven is planning to realize the product and service. This shows that Aros Glas AB has developed and implemented procedures that provide the necessary resources for all processes to ensure successful realization of the product and service conform to specified requirements. Key areas to note here are:

• Planning and management of processes directly relating to the product and services

• Customer-related processes • Purchasing • Provision for the service required • Control of monitoring and measuring devices, including calibration

9.3.5 Section 8: Measurement, analysis and improvement of processes at Aros Glas AB Here the focus lies with the measurement, analysis and improvement of processes at Aros Glas AB to demonstrate conformity and ensure compliance to ISO and act as a base for providing continual improvement. Here the focus lies on the following:

• Monitoring and measurement • Control of non conforming products or services • Analysis of Data • Improvement

9.4 Step 4: Identify and Document the Operating Procedures for ISO 9001 Having established the QPM, the Operating Procedures (OP) could now be documented. The OP define the way the Aros Glas AB organization is run each and every day and satisfy the general policy requirements of various clauses of the ISO standards. Figure 7 lists a summary of all the Operating procedures implemented and documented at Aros Glas AB.5

5 Refer to Quality Management Operating Procedures in Appendix at Annex 4

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Operating Procedure

Title

OP1 The procedure for review and approval of tenders, review and acceptance of contracts and subsequent amendments

OP2 The procedure for approval of suppliers and sub-contractors, the placing of Purchase Orders and for accepting goods and services

OP3 The procedures for controlling Aros Glas AB processes, including in-process and final inspection and testing. Also procedures for controlling the processes for handling, storage, packing, preservation and delivery.

OP4 The procedure for control of materials, including non-conforming product OP5 The procedure for control of measuring and process equipment OP6 The procedure for Training OP7 The procedure for Management Review, Internal Audits and corrective/preventive

actions OP8 The procedure for Control of Documents/Data OP9 Quality, Inspection and Test Records

OP10 Quality Objectives and Continual Improvement OP11 Internal and external communications

Figure 7: ISO 9001 Operating Procedures Aros Glas AB

9.4.1 OP 1: Review and approval of offers and contracts OP 1 is to ensure that all the contracts are made according to the firm rules, capability and resources. It does not let anybody accept any contracts which are not possible to carry out. It covers the issues such as meeting the deadlines, assures that there is no unresolved discrepancies, differences between the offer and the contract placed, that the company has the approved suppliers, the company carries out the work according to the conditions and the terms and that the service and the product meets the legal statutory and requirements.

9.4.2 OP 2: Approval of suppliers and subcontractors OP 2 is to ensure that the purchased goods meet the requirements of the company and the customer. It focuses on the quality, delivery time and price but not the cheapest supplier. It describes the order of the purchasing of the goods that has an effect on the quality of the final good and service provided.

9.4.3 OP 3: Controlling the processes, including in-process OP 3 is the procedure for controlling the processes, including in-process, final inspection and testing. These procedures include controls to cover requirements for handling, storage, packing, preservation, and delivery. It is to ensure that the procedures affecting the quality of the delivered goods or service are carried out under controlled conditions and the output consistently meets the specified requirements. It makes sure that the products are carried, packed and delivered in a manner that prevents any harm. It describes if there are any damaged items, how to handle the situation, and how to proceed if any items don’t meet the requirements.

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9.4.4 OP 4: Control of materials including non-conforming product Any items, component or raw materials that are to be used in the product can be readily identified to type, drawing or part number. So, the items of the same appearance can not get mixed. If it is required, items or materials can be traced to the raw material with the foundry certificate, provided by the supplier, which shows the identity and the test results of the individual batches. It ensures a system for inspection status that the company can identify whether the items are good, bad, suspect or reject. In case they are identified as suspect there is a controlled procedure to ensure they are reviewed and controlled through rework, repair or disposal.

9.4.5 OP 5: Control of measuring and process equipment OP 5 provides that all the measuring, checks and tests carried out by the company are with instruments that have adequate accuracy and provide reliable results. The process equipments which are used regularly and the critical operations that affect the quality should have suitable maintenance at appropriate intervals.

9.4.6 OP 6: Procedure for training OP 6 ensures that all employees’ and directors’ training needs are reviewed and any needs identified are provided by the company for the good benefit of the work; employees are competent and always adequately educated trained or experienced for their job; the records are maintained for everybody. The trainings are to be provided by an expert, certified body or an experienced person on the subject. It can be both theoretical and practical.

9.4.7 OP 7: Management review, internal audits and corrective/preventive actions OP 7 ensures that in addition to the normal management reviews of the business, the quality aspects of the business are also effectively reviewed and appropriate actions are taken as required. Every aspect of the companies activities that affect the quality of the product or the service that are provided are audited at least once a year. This will sustain that there is no gradual deviation from the required standard and Quality Assurance (QA) system. It also ensures that the various elements of the QA system are checked for the continuing suitability and relevance. As errors are to be found in the products, services or management system, these will be reviewed to see if longer the preventive action is possible or if it is possible to prevent recurrence. In the management review the board will go through the appropriate reports which are mentioned in the procedure once a year to evaluate the performance of the company. Internal audits are planned to be carried out by an employee who has the knowledge of the most works and will not audit his own work.

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9.4.8 OP 8: Control of documentation data OP 8 is to control the data so that the appropriate documents are kept with the preferred reverence numbers, numbering system and the correct issues are up-to-date. Such documents include; Contract requirements, specifications, calculations, reports, internally generated and issued documents; international and national standards; the company quality policy manual and all operating procedures. Any member of the company should have access to the appropriate and correct issues of the documents. The documents can be in electronic or paper format. This procedure also defines the format of the documents and how to mention the document number and according to which standard they should be named and numbered.

9.4.9 OP 9: Quality, inspection and test records This procedure is for providing a checklist for the other procedures. It shows how long the documents should be kept, how often the documents should be prepared i.e. everyday, every week, every meeting, etc. and how to be disposed.

9.4.10 OP 10: Covering quality objectives and continual improvement The purpose of this procedure is to ensure that the top management sets quality objectives that are important, achievable and measurable. The main purpose of the quality system is to provide continual improvement. With small steps the quality within the company can be improved over time with the help of all the employees. The proposal can be made by any person within the company by filling the form and making a suggestion.

9.4.11 OP 11: Covering internal and external communication OP 11 shows the channels through which the company maintains its communication.

9.5 Step 5: Start to issue and implement Operating Procedures for ISO 9001 The Managing Director was responsible for implementing the operating procedures that our thesis team worked on. Small gradual changes were implemented at Aros Glas AB though the first major task was translating all the documents into Swedish.

9.6 Step 6: Document fully ISO 9001 The complete documentation was delivered to Aros Glas AB. The most updated version of the Quality Policy Manual and the ISO 9001 Aros Glas AB Operating Procedures. Both documents are attached to the Appendix.

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9.7 Step 7: Draft the Environmental Policy Manual Drafting the Environmental Policy Manual (EPM) was quite similar to drafting the QPM. This manual contains the Aros Glas AB environmental policy and was necessary by ISO standards. Reference was taken from A.J. Edwards (2004) [6]. The Environmental Policy Manual has been drafted and prepared and will be presented to Aros Glas in the near future.6

9.8 Step 8: Identify and document the operating procedures for ISO 14001 The OP listed in Figure 8 include almost all the possible environmental OP any kind of company will need to run its business properly to be certified for ISO 14001 based on the requirements of ISO 14001 [7]. However, not all the OP correlate to all organizations. Organizations choose which ones suit them and can add extra OP according to their product or service type.

Operating Procedure

Title

OP 1 Disposal of controlled wastes OP 2 Disposal of special wastes OP 3 Waste handling and segregation OP 4 Control of solvents and emissions OP 5 Furnace operations OP 6 Water treatment plant OP 7 Packaging OP 8 Storage, housekeeping and drainage OP 9 Maintenance OP 10 Environmental aspects of suppliers and subcontractors OP 11 Energy control and monitoring OP 12 Company cars OP 13 Environmental objectives and targets OP 14 New products and processes OP 15 Environmental training OP 16 Environmental communications OP 17 Document control OP 18 Monitoring and measuring equipment OP 19 Nonconformance, corrective and preventive action OP 20 Environmental records OP 21 Internal environmental audits OP 22 Management review

Figure 8: ISO 14001 Operating Procedures In the example of Aros Glas AB (Figure 9), we have combined OP1 and OP 2, skipped OP 4, 5, 6, 7, 8, and 10, because of the non-relevance to the glass industry and integrated OP 9, 15, 17, 19, 20, 21, and 22 to the OP of ISO 9001 because of the content similarity to avoid the recurrence of the same documents.

6 The Environmental Policy Manual is attached in the Appendix as Annex 5

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Operating Procedure

Title

OP 1 Disposal of controlled wastes OP 2 Waste handling and segregation OP 3 Environmental communications OP 4 Energy control and monitoring OP 5 Company cars OP 6 Environmental objectives and targets OP 7 New products and processes OP 8 Monitoring and measuring equipment 9001OP 9 Document control 9001 OP 10 Environmental training 9001 OP 11 Maintenance 9001OP 12 Nonconformance, corrective and preventive action 9001 OP 13 Environmental records 9001OP 14 Internal environmental audits 9001 OP 15 Management review 9001

Figure 9: ISO 14001 Operating Procedures for Aros Glas AB

From Figure 9 we can see that Aros Glas AB will incorporate 15 relevant OP. From these 15 OP only the first seven are new procedures not covered in the previous 9001 OP. In general OP 8 to OP 15 are the same as in ISO 9001. A short description to each of the OP follows below. 7

9.8.1 OP 1. Disposal of Controlled Wastes The purpose is to ensure that only licensed waste carriers are used to remove wastes, and that disposal is correctly documented. Controlled waste includes all wastes produced by Aros Glas AB.

9.8.2 OP 2. Waste handling and segregation The purpose is to set out how wastes that arise across the site shall be segregated and stored so that recovery and recycling can be maximized and the correct disposals made.

9.8.3 OP 3. Environmental communications The purpose is to ensure that all communication received by the Organization from external parties relating to its environment performance are properly handled.

9.8.4 OP 4. Energy control and monitoring The purpose is to describe the actions to be taken to reduce energy (gas and electricity) consumption, which is one of the organization’s environmental improvement objectives.

7 The Environmental Management Operating Procedures are attached in the Appendix as Annex 6

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9.8.5 OP 5. Company cars The purpose is to ensure that the administration of the car fleet, the selection of cars and driving skills are carried out in a way which will minimize environmental impact.

9.8.6 OP 6. Environmental objectives and targets The purpose is to set out how the organization shall determine the relative significance of environmental aspects, set objectives and targets for improvement, and set the resulting action plans and progress them to completion.

9.8.7 OP 7. New products and processes The purpose is to ensure that the environmental implications of new products and new or changed processes, plant and equipment are taken into account when the decision to proceed is being taken, along with such considerations as finance, profitability, markets, health and safety.

10. Recommendations We have left Aros Glas AB in a much more suitable position then when we started. All the necessary documents that need to be fulfilled have been written and presented to Aros Glas AB. The main challenges in creating a Quality Management System and an Environmental Management System that were faced at first, were tackled. The full documentation including, Aros Glas AB processes, the Quality Policy Manual, the Quality Management Operating Procedures, the Environmental Policy Manual and the Environmental Management Operating Procedures have been written and handed over and the initial changes within the company have begun. A list of recommendations was handed in to the Managing Director.8

What Aros Glas AB must now do is to follow the remaining steps we laid out for them. This is regarding the effort required by the management in cooperation with employees. Namely the organization must issue and implement the OP for both standards. In order to fulfill the documents for 14001, lawyers or consultants specialized in the environmental filed should be consulted as 14001 raises issues with government regulations, this was beyond the scope of our thesis work. Implementation of all the submitted documentation should be completed followed by internal audits. An assessment body should be chosen based on merits decided by management followed by a plan to stage the assessment. This means that all employees should know what they are responsible for. Upon completion of the assessment and registration, Aros Glas AB should look to maintain continual improvement within their organization.

8 Refer to the Appendix as Annex 7

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11. Conclusion There were two main challenges that Aros Glas AB wanted to address. The first was to create a Quality Management System and the second, to create an Environmental Management System. In addition according to both management and employees, several internal issues needed to be addressed. Aros Glas AB Managing Director chose ISO 9001 and 14001standards to help provide the solution. The first task was to understand these two standards and learn how they function and relate to a small business, in particular one in the glass industry. This was accomplished by reading books, articles online, and interviews with managers in various companies and organizations of varying size. The next step was to understand how Aros Glas AB functioned. This was achieved by conducting interviews with management and employees then creating flow charts and an organization structure which were non existent at Aros Glas AB before we conducted this thesis. To fulfill part of the ISO 9001 documents a Quality Policy Manual needed to be written, which also was non existent at Aros Glas AB before we arrived. By referencing books, brainstorming ideas and meeting with the Managing Director we wrote and edited several copies of a new Quality Policy Manual until it satisfied both the requirements of ISO 9001 and Aros Glas AB. The following challenge was to write and document all the Quality Management System Operating Procedures for Aros Glas AB which correspond to the standards of ISO 9001. Our thesis team had to create documents which did not exist at Aros Glas AB. This was accomplished through research, brainstorming, constant reediting and close cooperation with the Managing Director. Upon Completing the Operating Procedures for ISO 9001, we were faced with a similar challenge as before, to write a Policy Manual, this time regarding Environmental Policies and ISO 14001. We overcame this, using the same approach as before, since it proved successful. The final obstacle was to complete the Operating Procedures for ISO 14001. Again, this was quite similar to before, the main difference being that these policies revolved around Aros Glas AB’s environmental issues. We complete this thesis work by leaving Aros Glas AB with the full documentation necessary to become certified. There are policies and procedures in place to organize the internal turmoil at Aros Glas AB. The groundwork is complete and the main area left to be completed is the continuing implementation and monitoring of the newly implemented changes. With internal effort at Aros Glas AB, cooperation with management and employees, our ongoing support and continual importance given to the ISO standards, we look forward to seeing Aros Glas AB achieve certification for both ISO 9001 and 14001.

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12. References [1] http://en.wikipedia.org/wiki/ISO [2] ISO Central Secretariat (2002).ISO 9001 for Small Businesses (2nd ed.). ISO Central Secretariat, Switzerland [3] http://en.wikipedia.org/wiki/Accredited_Registrar [4] http://en.wikipedia.org/wiki/Environmental_management_system [5] Dobb, F.P. (2004). ISO 9001:2000 Quality Registration Step by Step (3rd ed.). Oxford, U.K: Elsevier Butterworth-Heinemann publications [6] Edwards, A.J. (2004). ISO 14001 Environmental Certification Step by Step (revised 1rst ed.). [7] ISO Central Secretariat (2002).ISO 14000:2004 Environmental Management Systems (2nd ed.). ISO Central Secretariat, Switzerland

13. Appendix

13.1 ISO 9001 and ISO 14001. in brief

13.2 Interviews

13.3 Quality Policy Manual

13.4 Quality Management Operating Procedures

13.5 Environmental Policy Manual

13.6 Environmental Management Operating Procedures

13.7 Operating Procedure Summary and Recommendations for Aros Glas AB

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