Experience of tqm principles and iso 9000 implementation in the Pridneprovsky region of Ukraine

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Why the introduction of TQM and ISO 9000 principles is so important for the companies of our region?
Reliance of necessity of the system approach to the QMS creation and certification
Figure 1. Costs of time of QMS development, implementation and certification
Problems arising at QMS development, implementation and certification
Coordinating role of the Dnepropetrovsk state centre of standardization, metrology and certification in development of quality m
Experience of realization of competition "Dneprovskoe kachestvo"
About necessity of TQM principles introduction and creation of quality systems at the public sector

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Experience of TQM principles AND ISO 9000 implementation
in the Pridneprovsky region of Ukraine

Valeriy Mamatov, Ph.D.

Director Dnipropetrovsk State Centre of Standardization,

Metrology and Certification, Ukraine

Тetyana Mamatova, Ph.D.

Assistant Professor Ukrainian Academy of Public Administration, Office of the President of Ukraine, Dnipropetrovsk Regional Institute of Public Administration

Olexander Yanishevsky, Ph.D.

Director Ukrainian Institute of Quality

Abstract

The authors report on their experience with the Total Quality Management (TQM) and ISO 9000 implementation in the Pridneprovsky region being one from most industrially developed regions of Ukraine.

The objectives of research were:

To define prime directions of TQM implementation at the region level in Ukraine;
To reveal the tendencies of the approaches to development, implementation and certification of quality management systems (QMS) in Pridneprovsky region of Ukraine;
To classify problems which originating during development, implementation and certification QMS in Pridneprovsky region of Ukraine.

The materials of the companies, consulting organizations and certification bodies are used. This paper reflects the experience of Regional Quality Council work on and realization of the first Regional Quality Award «Dneprovskoe Kachestvo».

The experience of Dnepropetrovsk State Centre of Standardization, Metrology and Certification (DSCSMC) on creation its own system of quality is analyzed. The special attention is given to necessities of TQM principles implementation of and creation QMS in Ukrainian public sector.

Introduction

In conditions of world market globalization, in which aspires to be integrated Ukrainian economy, for maintenance of competitiveness of the domestic producers the promotion of Quality in a rank of national idea is necessary.

The course of thinking evolution in the field of quality specifies continuous improvement and complication of activity, which named as quality management. Each stage of evolution includes new theories of quality for maximizing consumers’ satisfaction (1). Ever more people recognize, that the beginning of new Millennium passes in under the badge of TQM.

In Ukraine the QMS, conforming the requirements of the standards ISO 9000 series, few companies have for the present. But the interest to QMS systems creation is very high, especially at the Pridneprovsky region companies – one of the most industrially developed regions of Ukraine.

The important step for the integration of Ukraine in the world movement for quality became the Decree of the President of Ukraine from 23.02.2001 «About measures on domestic production quality increase», in which the state support is declared to:

QMS based on ISO 9000 development at the companies;
Maintenance of the educational programs in the field of quality;
Best goods and business excellence awards setting up (2).

For last three years at the enterprises of Pridneprovsky region the significant experience of development, implementation and certification QMS was accumulated. For the analysis, which results are followed by, the materials of the companies, consulting organizations and certification bodies were used.

Why the introduction of TQM and ISO 9000 principles is so important for the companies of our region?

Pridneprovsky region is situated in the central part of Ukraine (Dnepropetrovsk, Zaporozhye and Kirovograd area). The Dnepropetrovsk area has celebrated its 70^th Anniversary in March, 2002 and it is rightly considered as the largest industrial, scientific and cultural center of Ukraine. Unique natural resources (iron ore, coal, manganese, kaolin, uranium, granite), powerful metallurgy, modern mechanical engineering, the space-rocket technologies uncover a wide range for mutually advantageous cooperation both with other regions of Ukraine, and with other countries.

In the beginning of 80th the Dnepropetrovsk enterprises were the initiators of the Complex Quality Control and Effective Resources Utilization System creation. This System has played the important role in region economy development and increase competitiveness of production. However in that time there were no market economy in Ukraine, the consumer satisfaction was on the last place in a line of priorities. Therefore system was not developed, became formal and even has generated the certain skepticism in relation to quality management.

Now region industry is in a stage of an exit from the crisis, which has followed by a disorder of the Soviet Union. The significant revival is expected in small and middle-sized business: raw material processing and production of food products, construction and repair, services, retail and wholesale trade. Many companies connect an exit from crisis to TQM principles implementation.

At the beginning of January 2001 only 11 QMS in the Dnepropetrovsk area companies was certificated, at the beginning of April 2002 it was 21. Now 10 enterprises of Dnepropetrovsk area are actively working on QMS development and introduction.

Reliance of necessity of the system approach to the QMS creation and certification

Analysing the world experience and dynamics of the domestic consulting services market in the field of quality management, per the nearest years it is possible to expect avalanche growth the number of the companies and organizations, which develop, implement and certify QMS in Ukraine.

For worthy meeting with this "avalanche" it’s necessary to consider problems and experience of development, implementation and certification QMS of companies at the Pridneprovsky region (3).

One of the eight TQM principles, which the QMS based on, is the system approach. It is necessary for taking into account during QMS creation. Besides, the experience, which was accumulated on Pridneprovsky region companies within 1999-2001 years, permitting with confidence to speak about necessity of the system approach to:

QMS development (consulting);
QMS implementation;
QMS certification.

The essence of the approach is that chain «Development — Implementation — Certification» cannot be "torn":

as in time (it’s impossible to decide the indicated problems stage by stage with the large interruptions);
so in space (the success is impossible without the agreed operations of the consulting organization, the company (organization), on which the QMS is created, and certification body).

For the realization of the system approach to the QMS creation three conditions are necessary:

1. The interest of the company (organization) and its top management first of all in the development, implementation and QMS effective functioning maintenance (instead of only to obtain a certificate);

2. Availability of the appropriate resources, both at the company (organization), and at consulting organization, for a solution of their main problems:

For the enterprise — it is financial, technical and managerial resources, availability of the trained staff;
For the consulting organization and certification body — it is the special trained and certified staff who is possessing experience of work in the given sphere of activity;

3. Close interaction of the company (organization), consulting organization and certification body, already at the first stage of works on creation of a system — preliminary QMS audit.

At the analysis of time resources, necessary for QMS development and implementation, it is possible to consider two variants:

1. The QMS development and implementation are made by the forces of the company only;

2. For the works acceleration company will convert to services of the consultants.

In a figure 1 the charts of costs of time on QMS development, implementation and certification of the machine-building company of the average size (250 – 1000 persons) as by forces of the enterprise, and with engaging of the consultants are indicated.

Figure 1. Costs of time of QMS development, implementation and certification

In vertical direction 10 standard steps of the QMS development and implementation gathered in four stages were put:

I. Staff training and project team creation:

1. The training (first phase, training is carried out continuously at all subsequent stages with different staff categories);

2. Creation of a project team and its status installation;

3. Opening-up of the QMS creation activities program, obtaining of the items of information about a company real QMS condition.

II. QMS preliminary estimation and corrective actions issue:

4. QMS preliminary estimation;

5. Identification of nonconformities, acceptance of coordinative corrective actions and procedures of their implementation.

III. QMS documentation development:

6. Quality policy and quality objectives development;

7. QMS documents hierarchy definition (quality manual structure). Documented procedures development;

8. Quality manual development. Documented procedures modification, design and validation.

IV. QMS implementation and representation for certification:

9. Preliminary audit program design and realization;

10. QMS representation for certification.

Pridneprovsky region experience demonstrates, that with the participation of experimental consultants stage I, II and IV can be shorted in some times, and the documentation development stage – in 1,2 -1,5 times (fig. 1).

One more specific feature of QMS development and certification in Pridneprovsky region is that on the majority of companies the activity on QMS development, implementation and certification are carried out in 2 stages:

I stage – at a national level (UkrSEPRO system);
II stage – with engaging of the international certification body.

At all stages of QMS creation problems arise both for company, and for consulting organization and certification body.

Problems arising at QMS development, implementation and certification

It is possible to categorize the main problems arising at QMS development, implementation and certification in Pridneprovsky region of Ukraine to four basic
signs (4):

Human resources;
Organizational;
Information;
Financial.

The problems, bound with human resources basically fall into companies staff training of quality management principles and practice, motivation system of quality assurance and its improvement building, quality management process approach methodology creation.

Esteeming a role of staff in the problems of quality solution, let us address to authority of one of “guru” of quality Kaoru Isikava. He wrote: “I do not get tired to repeat, that the quality management starts with personnel training and finishes by personnel
training” (5).

Unfortunately, in Ukraine a system of continuous training the field of quality has not built yet. But its formation already began under the direction of the Ukrainian Institute of Quality. Creations of a system of continuous training in the field of quality will need consolidation of efforts of governmental administration bodies, educational institutions of different levels, nongovernmental and consulting organizations in the field of quality.

It is possible to relate to organizational problems stages of activity on QMS development and implementation planning, a group of specialists participating in this activity creation, and QMS adequate organizational structure design.

The problem of QMS adequate organizational structure design is one of most complex, as its solution is connected to real-life structure changes, reshufflings, change of authorities and subordination. It’s a disease process much encompassing human factor.

The QMS should be documented. From here information problems outflow. They consist in information flows and QMS documentation hierarchy definition, QMS documentary procedures development, quality programs development, working instructions and other documents, in which one with an indispensable grain size the duties, authorities, responsibility and intercommunications of staff are established, design.

It is also a lot of problems in obtaining the actual information on quality management: in Ukraine practically there are no issuing on TQM problems in Russian and Ukrainian tongues. In the basic literature goes from Russia and from several sites in Internet. There is also capability of specialized seminars stuff obtaining.

Coordinating role of the Dnepropetrovsk state centre of standardization, metrology and certification in development of quality movement in the region

For the complex, system decision of problems of TQM principles development and QMS implementation and certification in region it was offered to develop the regional program of quality management and environment system implementation for companies of the Dnepropetrovsk area.

The purpose of the program: to ensure effective protection of rights of the production and services consumers.

The basic tasks of the regional program are:

Formation and realisation of Area Quality Policy of, each region, each company;
Creation of legal, organisational, economic, scientific - methodical norms for maintenance and improvement of production and services quality, perfection of quality systems;
Support, perfection and development of general training on quality management, ecology, protection of work;
Creation and development of regional system of information maintenance.
Development of consulting services in this sphere of activity;
The accredited independent test laboratories network creation.

By the Decree of the President of Ukraine from 23.02.2001 "About measures on domestic production quality increase" inter-branch coordination and functional regulation on quality management are assigned on Gosstandart of Ukraine (State Standardisation Committee of Ukraine) (2).

In our region the coordination of spent works within the framework of the regional program of quality management and environmental system implementation is carried out by the Dnepropetrovsk state centre of standardisation, metrology and certification (DSCSMC).

The integrated scheme of works coordination is given in figure 2.

Figure 2. Coordination role of the DSCSMC in development of quality movement
in the Pridneprovsky region

In DSCSMC the databank including information on the companies, which have QMS certificate or are at a stage of its development and implementation, certification bodies (both in national UkrSEPRO, and in the international systems), about the experts-auditors, auditors-trainee, promoters is created.

On a threshold of the 100 years anniversaries, DSCSMC not only coordinates works on quality in region, but also has certify quality system of its certification body on conformity DSTU ISO9001-95 and conducts works on creation quality system on conformity ISO 9000-2000 in national and international systems itself.

Experience of realization of competition "Dneprovskoe kachestvo"

In 2001 the Dnepropetrovsk regional state administration together with DSCSMC and Department on protection of the rights of the consumers announces Regional Quality Award "Dneprovskoe kachestvo". For the first year 34 companies have taken part in it.

The purpose of realisation of competition is:

Attraction of the greatest number of the region companies and organisations to the processes of continual improvement;
Definition of the best companies, which implement modern methods of continual improvement, making competitive production and services;
Creation of favourable image of the region companies, as manufacturers of high-quality production and services.

At the end of 2001 by Office of the Ministers of Ukraine is founded All Ukrainian Quality Award on the basis of EFQМ Excellence Model. In this connection the estimation of the companies in Regional Quality Award "Dneprovskoe kachestvo" will be carried out on this model.

About necessity of TQM principles introduction and creation of quality systems at the public sector

The important feature of TQM principles and international standards ІSO 9000-2000 is their universality, that is an opportunity of use by any companies or organisations of all branches without dependence from a kind of activity and production, which make. The experience of many countries gives all bases to believe, that the TQM principles and ISO 9000 implementation in public sector will make Administrative reform spent for Ukraine irreversible, full-scale, deep and, that is most important, effective.

One of the basic tasks, which should be solved for the purpose of Administrative reform achievement in Ukraine, is the development of new functioning ideology of executive authority and local government bodies as activity on maintenance of the citizen’s rights and freedom, granting of state and public services. These services should be qualitative and meet the requirements of the international standards.

In practice, however, citizens and the subjects of economic activity are not perceived as the consumers by official bodies yet.

The TQM principles ІSO 9000-2000 implementation should help public sector organisations to consider their activity from the point of view of consumer satisfaction degree, as it already was made by many public sector organisations in the different countries of the world.

Unfortunately, in Ukraine still there are no organisations of public sector besides Gosstandart of Ukraine bodies, where QMS would be entered or were developed. In our opinion, it is possible to consider QMS creation in Gosstandart of Ukraine bodies as the “pilot” projects, which experience will allow to generate approaches to TQM and ІSO of 9000-2000 principles implementation of in public sector.

Conclusions

In a region level in Ukraine prime directions of TQM ideas realisation can become:

Expansion of works on creation and certification of QMS both at the companies, and in organisations of public sector;
Popularisation the Quality Awards among the companies and organisations of region;
Development and realisations of the concept of total education in the sphere of quality.

Footnotes

(1) Окрепилов В. В. Управление качеством: Учебник для ВУЗов. – 3-е изд., доп. и перераб. – С.Пб: ОАО "Издательство "Наука", 2000.

(2) Указ Президента України від 23 лютого 2001 р. № 113/2001 “Про заходи щодо підвищення якості вітчизняної продукції”. – www.rada.kiev.ua/cgi-bin/putfile.cgi. – 02.12.2001.

(3) Маматов В. П., Маматова Т. В., Янішевський А. Е. Придніпровський регіон: сертифікація систем менеджменту якості на підприємствах // Стандартизація, сертифікація, якість. – 2001. – Харків.: – № 2. – С. 38–41

(4) Маматов В. П., Маматова Т. В. О состоянии работ по созданию и сертификации систем управления качеством в Приднепровском регионе Украины // Проблемы и опыт обеспечения качества в производстве и образовании: Сб. науч. трудов. – Тула: ТулГУ, 2001. – C. 122–125.

(5) Гличев А. В. Система непрерывного образования в области качества: какой ей быть? // Стандарты и качество. – 2001. – № 12. – С. 90–93.

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