Risky Business vs Risk-Intelligent Business

Rolling the dice concept for business risk, chance, good luck or gambling

Digitalization, globalization, competition and the speed of technological advances has changed the nature of business.  ISO 9001:2015 has been in effect for a full year and it places a heavy emphasis on using “risk-based thinking” for managing quality-related processes. Risk has always been implicit in ISO 9001.  But the latest revision asks organizations to make a cultural shift—rather than focusing on isolated problem solving and resolution, they’ll focus on prevention and performance improvement.

The International Organization for Standardisation (ISO) explains it this way:

“Risk based thinking ensures these risks are identified, considered and controlled throughout the design and use of the quality management system”.

Under the new guidelines, risk management serves as the cornerstone of quality management system design. As organizations determine the processes needed for a quality management system, they’re also asked to determine the associated risks and opportunities and to plan and implement appropriate actions to address them.

In the context of ISO, the concept of “risk” relates to the uncertainty in achieving the main objectives of International Standards—namely, to provide confidence in the organization’s ability to consistently provide customers with conforming goods and services, and to enhance customer satisfaction. Risk is the possibility of events or activities preventing an organization from achieving its strategic and operational goals.

This shift in thinking does not replace the standard’s process-oriented approach, but enhances it. While the process is still a critical part of ISO 9001:2015, processes must now be implemented with an acute awareness of risk.

Organizations are asked to identify, analyze and prioritize all potential risks as they undergo building or adapting their existing quality management implementations for updated certification.

Risks can be defined by two parameters—the severity, or seriousness, of the harm, and the probability that the harm will occur. Risks can be assessed based on the likelihood they will occur, the likelihood they can be detected, and potential impact should they occur. From there, risks are evaluated based on their importance (what is acceptable, what is unacceptable?) and actions are planned to address the risks, whether that’s avoiding or eliminating the risk or mitigating it.

Once plans are implemented, it’s essential for organizations to check the effectiveness of their actions and continually learn from experience.

What’s the best way to document risk-based thinking and demonstrate the approach during audits?. Evaluate how you evaluate risks today with the processes you have. Understand how you decide when risks are acceptable or unacceptable.  ISO wants to see that you record identified risks when action is required, and the action steps to be taken. 

Putting into place the Plan-Do-Check-Act (PDCA) methodology can be a great way to define, implement and control corrective actions and improvements. Companies should Plan what to do and how to do it, Do what was planned, Check that things happened according to plan, and Act on how to improve the next time around.

Companies have two years to make the transition to ISO 9001:2015, as certifications for the 2008 edition will expire after September 2018.

SimpleQuE was one of the first consulting companies to be ISO 9001:2015 certified and we’re ready to assist organizations with transition or implementation.  Please visit our website for more information about our services.

Sign Up For Our Newsletter

ISO/TS 16949 Certifications Across the Globe

 

ISO/TS 16949 is being adopted across the world and setting in place the quality management requirements for the design, development, production, installation, and service of automotive-related products. Take a look below at the world leaders in ISO/TS16949 certification.
SQ_16949_infographic

ISO 9001 Certification Changing the Standards for Higher Education

Stack of hardback books and Open book lying on bench at sunset park against blurred nature backdrop. Copy space, back to school. Education background. Toned image.

More than 1 million organizations and companies worldwide understand the benefits of being ISO 9001 certified. Educational institutions are beginning to recognize the importance of established standards and are seeking certification, as well. As we enter the new school year, a these schools have taken the initiative and will start the year as ISO 9001 certified: Oakwood University, Greater Altoona Career and Technology Center,  DRS International School, and Wenatchee School District #246. Continue reading “ISO 9001 Certification Changing the Standards for Higher Education”

News Update from the International Automotive Task Force (IATF)

steering-wheel-801994_1920

In October 2016 IATF 16949:2016 will be published by IATF and it will replace the current ISO/TS 16949, defining the requirements of a quality management system for organizations in the automotive industry. It will be aligned with ISO 9001:2015 and its structure and requirements. IATF 16949:2016 will be implemented as a supplement to, and in conjunction with, ISO 9001:2015.  www.iatfglobaloversight.org

IATF has also released a new transition strategy document for automotive suppliers and certification bodies to help with the transition.  It includes information about timing and transition audit requirements. After October 1, 2017 no audits (initial, surveillance, recertification or transfer) will be conducted to ISO/TS 16949:2009. IATF Transition Strategy ISO/TS 16949 › IATF 16949

It is also important to note that IATF/IAOB will recognize TS certified companies that have upgraded to ISO 9001:2015 prior to IATF 16949 and allow reduced audit days when the company does eventually upgrade to the new IATF 16949 standard.  Companies should coordinate with their registrar to determine the optimal audit approach and cost benefit.  (Separate audits may be not be cost effective, but it will depend on each company’s situation.)

SimpleQuE consultants and instructors are ready to assist companies now with implementation, transitioning and training for ISO 9001:2015 and TS 16949:2009.  Consulting and training for IATF 16949 will be available after its release in October.  Contact simpleQuE

SimpleQuE Spotlight: Blake Russell

SQ_Spotlight_Blake_V2

What is your position and what do you do for simpleQuE?
Senior Director and I work with clients to implement and manage their ISO/AS Quality Management Systems and EMS Environmental Management Systems

What do you like most about working for simpleQuE?
simpleQue is an industry leader in providing ISO consulting and training services.

What is your greatest accomplishment – work or personal?
With my wife, we raised three beautiful daughters who are now intelligent, funny, and productive adults.

What is your favorite QMS standard and why?
ISO 9001 because I have worked with it for almost 30 years and understand how it improves a business.

What attracted you to SimpleQuE?
The leadership and their vision.

When you are not working, where can people find you?
Working around my home, exercising, mountain biking, and enjoying time with my wife.

What was your first job?
Ranch hand in Abilene, TX Continue reading “SimpleQuE Spotlight: Blake Russell”

Congratulations to the entire Barrett team!

Barrett-Team2016-3000px

Congratulations to the entire Barrett team for achieving ISO 9001:2015 certification from global registrar NQA!

Headquartered in Murfreesboro, Tennessee, Barrett Firearms Manufacturing is a world leader in large-caliber rifle design and manufacturing. It was founded in 1982 by Ronnie Barrett, who invented the first shoulder-fired .50 caliber rifle. Continue reading “Congratulations to the entire Barrett team!”

A “simple” Way to Transition to ISO 9001:2015

SimpleQuE was one of the first consulting companies in the world to become ISO 9001:2015 certified, so we know what it takes to transition to the new standard. Utilize our expert consultants or gap checklist to guide you through the process.

sq-approach (1)

The simpleQuE consulting approach applies to companies getting certified for the first time, adding a new standard, or upgrading an existing certification.  For a customized quote and information, call 740-305-0868 or contact us by email.

You’ll Be Surprised At These ISO Certified Organizations

Business people shaking hands finishing up a meeting

For some businesses, ISO certification is a legal or contractual requirement. Other organizations choose to become ISO certified to add credibility, or to demonstrate their product or service meets the expectations of their customers. It’s common to see ISO certified businesses in the manufacturing or healthcare sectors, but here are six organizations you’ll be surprised to learn are ISO-certified!

Africam Safari – Mexico
In 2004, Africam Safari became the first ever animal park to gain ISO 9001 certification for the quality of its guided tours. As part of the process, the park compiled a company history and used it to optimize the way the park was run. They’ve since reported optimal use of resources, including time, money and supplies, improved performance, and greater transparency.

City of Dayton, Ohio, Department of Finance
It’s unusual for a government agency to achieve ISO certification, but the City of Dayton’s Department of Finance was awarded ISO 9001 compliance status in 2012. The coveted certification verifies that the department has detailed policies in place, that employees are well-trained in policies and procedures, and that there is an ongoing and successful effort to improve customer service. The Department of Finance worked for several years to achieve certification.

ATG – AllStar Travel Group
ATG is a travel agency that boasts of being “one of a kind” and “best of the best,” and it has the ISO certification to prove it. When ATG was certified in 2009, it became the only ISO-certified travel management company in the United States. For the agency, achieving certification sets them apart from competitors, and tells customers that every policy, procedure, product and service used is done in the most efficient and cost-effective way possible.

Corbus, LLC
Headquartered in Dayton, Ohio, Corbus is a service company offering sourcing and procurement, business process management and information technology services. The company has earned ISO certification for Information Technology (IT) and Supply Chain (SCM). Certification assures Corbus continues to execute consistent and repeatable processes, produce excellent management control and reporting, shows continuous improvement, and hires employees that know what to do and how to get projects done.

Easter Seals Crossroads—Crossroads Industrial Services
Easter Seals Crossroads boasts one of the nation’s most comprehensive rehabilitation programs, with programs and services designed to meet the needs of children and adults with disabilities. Crossroads Industrial Services, a division of Easter Seals Crossroads, is an ISO certified contract manufacturing and assembly solutions company that’s part of AbilityOne, a federal program that creates employment opportunities for people with disabilities. In 2006, Crossroads Industrial Services was awarded ISO 9001:2000 certification, recognizing its commitment to improving performance to exceed customer expectations for quality, cost and delivery.

Four Season Environmental
Four Seasons Environmental, with headquarters in Monroe, Ohio, offers environmental consulting services that help clients save money, increase efficiency and maximize energy savings—in turn, maximizing productivity and return on investment. As of 2009, 11 Four Seasons Environmental sites operate under the umbrella of the ISO registration, including the EPA Environmental Science Laboratory, USDA sites in Athens, Georgia, and Ft. Pierce, Florida, and an IRS site in Covington, Kentucky.

Some of these organizations utilized simpleQuE’s consulting, training and/or auditing services to achieve and maintain their certification.  Other unique organizations who are ISO certified include 1-800-FLOWERS.COM, Inc., the Grand Canyon Railway, Ball Memorial Hospital in Muncie, Indiana, and Death Valley Lodging Company in California.  Every day more and more organizations are joining the ranks as they realize the importance and value of being ISO certified.

ISO/TS 16949:2016 – Shifting into High Gear

close up of hand on manual gear shift knob

SimpleQuE representatives were recently invited to attend the Eagle Certification Group auditor training, which included the latest information on anticipated changes to ISO/TS 16949:2016, and they are significant!  In May, Eagle participated in 4 days of meetings in Italy with all the stakeholders to provide feedback on the final draft TS standard to be released Q4 of this year.  Get ready because the changes will greatly impact automotive suppliers and the industry!

Here are some of the significant changes we learned are in the TS final draft, which is still subject to change.  But due to this late date, we anticipate many of the revisions are realistically coming, along with some unexpected new requirements.

  • A new layout to 10 clauses to include all of ISO 9001:2015.  Get a copy of this standard and begin compliance to the ISO changes, as they will be in the new TS standard.
  • Harmonization of the Customer Specific Requirements within the TS standard, along with the core tools requirements. 
  • A new requirement for a documented process on Product Safety. It should include the identification of regulatory and customer requirements affecting safety, along with approvals for changes, customer notifications/reaction plans, special approval of control plans and PFMEA’s, specific training, and flow down of product safety requirements down the supplier chain.
  • A new clause on Corporate Responsibility – in light of the problems with the VW emissions scandal and Takata airbags. There needs to be an escalation policy (which includes whistle-blowing) to improve integrity in social and environmental matters.
  • A greater emphasis on process effectiveness and efficiency, with the need for management reviews to include process performance review.  A rule that went into effect this year for certification bodies is that if processes are not performing effectively and efficiently and corrective actions taken by the company are not effective in a subsequent audit, the certification body is to write a major nonconformance.
  • For plant, facility, and equipment design and layouts, a cross functional team is required, along with risk identification and risk mitigation techniques. This includes manufacturing feasibility prior to, and ongoing evaluations after start up, for maintaining process effectiveness and updating of documentation (control plans, job set-ups). This is also a new input to management reviews.
  • A new requirement for customer-specific training as it may relate to customer portals and the communication of information to and from the customer (orders, releases, ASN, PPAP, corrective actions, etc.).
  • A process must exist for determining and ensuring training needs for employees working with the customers during the quote, project development and production phases.  As appropriate, these employees must be trained in APQP, Customer Specific Requirements, FMEA and Control Plans.
  • A new focus and attention on embedded software as part of the design and development process (i.e. engine control modules, emission control systems, etc.).  It also has its own clause outside of design, which requires a process for software quality assurance and the use of Automotive SPICE (Software Process Improvement and Capability Determination). A SPICE assessment or audit is also required prior to PPAP.
  • Supply chain risk for quality and delivery is a new requirement for consideration in supplier selection.  This may include financial stability, volume of automotive business, change management process, business continuity planning, and more.
  • Total Productive Maintenance is a new clause requiring documented maintenance goals that include at least OEE (Overall Equipment Effectiveness), MTBF (Mean Time Between Failure) and MTTR (Mean Time To Repair).  These also are now inputs to Management Reviews.  When objectives are not met, there must be a documented action plan to address corrective actions.
  • Companies need to identify manufacturing processes and error-proofing devices that can be bypassed.  Based on risk and FMEA severity, bypass procedures must be developed, and may require customer approval.  Bypasses must be reviewed daily with focused audits, with daily leadership meetings to reduce or eliminate bypass operations.  Restart verification is required when no longer bypassing.
  • Non-conforming product that is scraped must now be physically rendered unusable prior to disposal.
  • There are new flow-down requirements to suppliers and external providers of products and services, which include cascading down the supply chain for regulatory/statutory requirements and special product and process characteristics. 
  • Gauge calibration clearly includes monitoring and measuring equipment required to ensure effective control of manufacturing processes. 
  • Internal audit requirements are enhanced with clear annual plans for the QMS, manufacturing process, and product audits.  The number of audits and audit days must be specified and planned.  A risk based approach needs to be utilized to prioritize the audit program, based on customer issues, performance trends, and criticality of the processes.  Software development capability audits are also required.
  • A process must exist to ensure internal auditors can demonstrate competence to audit TS, manufacturing processes and products, core tools, relevant Customer Specific Requirements, and more.  There are also trainer requirements that must be met. Approved auditors must be documented and competency monitored through conducting of a minimum number of audits per year (as defined by you).
  • Management review inputs are expanded by ISO 9001:2015 and the new TS standard, and include new topics of warranty performance, maintenance action plans, etc.  Clear action plans must exist when customer requirements are not met.
  • Warranty management is a new clause, requiring a process that also includes warranty part analysis and “no trouble found”.
  • All customer complaints and field failures (including returned parts) must initiate formal problem solving and corrective action.
  • TS will add back the requirement for Preventive Action.
  • A documented process for continual improvement is required.

SimpleQuE offers quality management system consulting, internal auditing and training for Automotive, Aerospace and other industry standards.  Contact us to learn more about transitioning to ISO/TS16949:2016. 

3 simpleQuE Ways To Transition to ISO 9001:2015

Team work process. Closeup photo young business crew working with new startup project. Project managers meeting. Analyze plans, papers. Blurred background

SimpleQuE was one of the first consulting companies in the world to become ISO 9001:2015 certified.  The transition is simple when utilizing our expert consultants or gap checklist to guide you through the process. 

  1. FastTrack your way to success – with our expedited approach to implement the 2015 changes based on lessons we have learned with numerous clients and through historical changes to various standards.    Through the FastTrack program your team will develop and complete a clear roadmap in four months (1 day/month for 4 months) and be ready to upgrade your certification in 5 months.  (The FastTrack model can be customized and accelerated with your implementation team to meet your timelines.)  Click here for more information.
  2. Customized on-site consulting and training – We offer unique quality consulting insights that result in customized solutions. We are known as the consultant that simplifies ISO implementation, transition, training and maintenance, by integrating simple solutions that fit in your company’s culture.  We perform a thorough gap analysis to identify what needs to be implemented or changed.  With our expertise, we help identify where you’re already in compliance and target only those areas that need work. Part of our job with the gap assessment is to educate you on how you already comply with your current systems. The result of the gap analysis is a thorough action plan of each task that needs to be accomplished.  The action plan is laid out against your timing and resources to successfully achieve your upgrade to ISO 9001:2015.
  3. Utilize our ISO 9001:2015 Gap Audit Checklist – Companies that have mature Quality Management Systems and experienced Quality Managers will find this a useful tool to identify the differences between the 2015 standard versus 2008.  The checklist can be shared with your certification body as evidence of internal audits to the new ISO 9001:2015 requirements. The purchase of this gap checklist comes with a free half hour of phone or email consulting.  Purchase checklist.

For more information or to obtain a quote for implementation consulting services or training, please call 740-305-0868 or contact us by email.