Principles of

Presentation topic:

Integrating ISO 9000 & SA 8000

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overviewINTERNATIONAL ORGANIZATION FOR STANDERDIZATION ISO 9000 ISO 9001 ISO 9002 ISO 9003 ISO 9004

SOCIAL ACOUNTABILITY SA 8000 Integration of ISO 9000 & SA 8000

Hist ryo After world war II, Europe was destroyed, they

were forming NATO as a precaution to another world war

o European Community([EC] now the European union

[EU]) strived to unify Europe

o They commissioned the International

Organization for Standardization (IOS) to write a set on quality standards that companies could use to evaluate the quality management systems

Histor of ISO 9000o Over eight years, the organization wrote the ISO 9000 series of standards that the EU accepted as single quality standards to be adopted by all member countries o ISO 9000 was released in 1987 o IOS became ISO, which is actually form isos, the Greek word for equal

Hist ryo In U.S, the Registrar Accreditation Board(RAB), the American National Standards Institute(ANSI) are all working toward complete international recognition for the United States. o The U.S version of ISO 9000 is Q9000. o The first update in 1994 , the second revision released in December 2000, now referred to as ISO 9001:2000

9000INTRODUCTIONThe ISO 9000 family of standards relate to quality management systems and are designed to help organizations ensure they meet the needs of customers and other stakeholders

What is ISO 9000o ISO 9000 is the structural framework of a

business system that specifies, in very broad terms, the necessary components of a QMS

o ISO 9000 details the basic requirements of

the quality function for all industries

What is ISO 9000o It is important to note ISO 9000 is not a

product standard. Rather it is a system standard.

o Its primary purpose is to provide

organizations with useful internationally recognized models for operating a quality management system.

What are the parts of ISO 9000?o ISO 9000 is composed of 5 different, but related parts: ISO 9000 ISO 9001 ISO 9002 ISO 9003 ISO 9004 o ISO 9000 and 9004 are guidelines, while ISO 9001, 9002, and 9003 are the categories in which a company may apply for certification

Part 1: ISO 9000o ISO 9000: Quality Management and Quality Assurance Standards Guidelines for Selection and Use Written in order to determine which category your organization should apply for

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ISO 9000 Qualit Management PrinciplesIts eight principles for quality improvement are very general and do not demand for any standard of social practice.

Qualit Management Principleso Customer Focus o Leadership o Involvement of Staff o Process Approach

Qualit Management Principleso System Approach Management o Continual Improvement o Factual and Documented Approach in Decision Making o Mutually Beneficial Relationship with Suppliers

Reasons For Implementing ISO 9000o To operate efficiently o To achieve customer satisfaction o To improve financial results o To satisfy stakeholder, employees and partners o To secure sustainability

ISO 9000 Implementation Hints

o 8 Step Approach o Role of Top Management

ISO 9000 Implementation Hints 8 Step Approacho Determination of customer needs and expectations o Establishment of the organizations quality, policy and objectives o Determination of processes and responsibilities to achieve the quality objectiveso

Determination and provision of resources to achieve the quality objectives

ISO 9000 Implementation Hints 8 Step Approacho Definition of methods for measuring process effectiveness and efficiency o Implementation of measurement methods o Determination of means for dealing with complaints and non conformities o Establishment and implementation of a process for the continual improvement of the QMS

ISO 9000 Implementation HintsRole of Top Managemento Establish and maintain policy and set objectives o Promote the quality policy in the organization o Ensure focus on customer requirements o Ensure the availability of needed resources

ISO 9000 Implementation HintsRole of Top Managemento Review the QMS periodically o Decide on improvement actions o Ensure the implementation of appropriate processes to enable achievement of objectives and customer requirements

Part 2: ISO 9001o ISO 9001: Quality Systems Model for Quality Assurance in Development, Production, Installation, and Servicing o This is the category for companies which are involved in manufacturing or the creation and delivery of a service.

Part 3: ISO 9002o ISO 9002: Quality Systems Model for Quality Assurance in Production and Installation Companies who perform many functions, with the exception of design and development, may apply to this category After the revision of ISO 9000 in 2000, this category has been dispelled

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Part 4: ISO 9003o ISO 9003: Quality Systems Model for Quality Assurance in Final Inspection and Test o This category is useful for outside of the manufacturing sector, such as in distributors o After revision of ISO 9000 in 2000, this category has been dispelled

Part 5: ISO 9004o ISO 9004: Quality Management and Quality System Elements Guidelines o Used in order to help interpret the categories included in ISO 9000 certification

How can ISO 9000 Be Implemented Toda ?

o ISO 9000 is being used in many organizations

o If an organization implements ISO 9000 in order to simply remain competitive and without mutually beneficial goals in mind, it will most likely fail in the long term

How can ISO 9000 be used in a business?o ISO 9000 can benefit many industries, such as: Banking Health Care Manufacturing, etc. o ISO 9000 is generic, so it can be applied virtually anywhere! Remember, ISO 9000 is just one part of an entire system needed to create value for customers

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Once a commitment is made, what should an organization do? How can the organization benefit from implementation of ISO 9000?

The costs of implementing ISO 9000Implementing ISO 9000 can be beneficial, but costly. The cost can be affected by: Multiple Locations Design/structure Non-existence of a Quality Program Significant Corporate Changes

The cost of registering for ISO 9000Registering for ISO 9000 creates additional costs which vary based upon: Design Responsibility Number of Locations Size of Facility in Terms of Employment

SA 8000, its beginningThe standard Requirements SA8000 was launched in 1997 by CEPAA - Council on Economics Priorities Accreditation Agency, an NGO, later renamed to SAI Social Accountability International. Social Accountability 8000 (SA8000) is the first global standard for corporate social responsibility.

SA 8000, its beginning (CONT..)SA8000 is based on both international human rights and the UN conventions (International Labor Organization, the International Declaration of Human Rights and the UN Convention on the Rights of the Child) and satisfying relevant local legislation. It aims to guarantee basic rights of workers involved in the production processes

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SA 8000 Social Accountabilit

Builds on the proven merits of ISO, specifying corrective actions, encouraging continuous improvement and focusing on management system.

9 main requirements of the standard SA 8000o o o o Child labor is not permitted Forced labor is not permitted Health and safety have to be assured Freedom to organize and collective bargaining have to Be guaranteed

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9 main requirements of the standard SA 8000o o o Discrimination is not permitted Disciplinary practices are not permitted Working hours shall not exceed 48 hrs a week, with a maximum of12 hrs overtime Remuneration shall be sufficient Management systems shall guarantee that the requirements are effectively satisfied Netpeckers Consulting (P) Ltd. www.netpeckers.net

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The SA 8000 Standard Overview

How Companies can implement SA8000

o Certification to SA8000 o Involvement in the Corporate Involvement Program (CIP)

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Certification to SA8000Companies that operate production facilities can seek to have individual facilities certified to SA8000 through audits by one of the accredited certification bodies. Since the SA8000 system became fully operational in 1998, there are certified facilities in 30 countries on five continents and across 22 industries.

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Benefits of implementing SA 8000Benefits for businesso

Putting company values into action Enhancing company and brand reputation Improving employee recruitment, retention and performance Better supply chain management and performance

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Benefits of implementing SA 8000Benefits for Consumers and Investors Clear and credible assurance for ethical purchasing decisions Identification of products made ethically and companies committed to ethical sourcing Broad coverage of product categories and production geography

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SA 8000 Certified Companieso Coop Italia (Italy) o WE Europe (Netherlands) o Dole Food Products (USA) o Toys R Us (USA) o Vogele (Switzerland) o Timberland (USA) o Gap Inc. (USA) o Switcher (Switzerland) o Tex Line (Singapore) o Social Compliance International (Pakistan) o Tata (India) oTNT (United Kingdom) o Business Social Compliance Initiative (EU)

SA 8000/Normative Elementso Compliance with applicable laws and regulations o Universal Declaration of Human Rights o Universal Convention on the Rights of the Child o Various ILO Conventions o ISO Management Systems

SA 8000/Management S stemso Written and publicly available policy that defines social accountability and labor conditions in conformance with SA 8000 and applicable laws o Internal control system to support conformance to policy Designated representative to enforce policy

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SA 8000/Management S stemso Assure implementation of policy o Routine managerial review and updating of policy o Written statement and documented evidence from suppliers and subcontractors of commitment to social accountability

SA 8000/Management S stemso Investigation of concerns regarding conformance and nonconformance to policy and appropriate corrective action Communication with all interested parties performance against the requirements of policy

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o Access to records on conformance to policy by interested third parties

Social Accountabilit

Summar

o An integral aspect of market competitiveness o Provides employees with secure and safe work environment o Creates consumer confidence o Mitigates risk and improves product quality

integrationIntegrated means combined; putting all the internal management practices into one system

Integrated Management S stems

The integrated management systems are viewed as a connection between the different standards, where the standards have a number of similarities and common activities

Integrating ISO 9000(Quality management and quality assurance standards guideline for selection and use)

&SA 8000 (Social Accountability)

ISO 9000 & SA 8000o Both are management systemsManagement system Set of interrelated or interacting elements to establish policy and objectives and to achieve those objectives

o Both require policies and procedures and

documentation systems that demonstrate ongoing compliance with the requirements

ISO 9001:2000 & SA 8000ISO 9000Management s stem Customer Focus Leadership Involvement of Staff Process Approach System Approach Management Continual Improvement Factual and Documented Approach in Decision Making Mutually Beneficial Relationship with Suppliers

SA 8000Management s stem Child labor Forced labor Health & safety Compensation Working hours Discrimination Discipline Freedom of association

ISO 9000 & SA 8000o ISO 9000End Result: Customers & profitability Focus: External & internal

o SA 8000End Result: Employees (Workers) Focus: Internal

Taste is a Matter of Choice; but Quality is a Matter of Fact

ISO 9000 & SA 8000ISO 9000 SA 8000Documentation requirements Management commitment Quality policy Planning Management representative Record Management commitment Social policy Planning & implementation Management representative Worker representative Health & safety training Investigate, address, respond Corrective action

Competence, awareness, and training Analysis of data Corrective action

ISO 9000 & SA 8000o Committed to producing high quality products in a

manner that demonstrates sound business ethics, adherence to local and national laws and an absolute regard for human rights.

o Requires the same standards from its suppliers and

will not knowingly enter into business relationship with any company that does not share these core values.

ISO 9000 & SA 8000Committed to producing quality products in a work environment that complies with all requirements of SA 8000

Benefits of IntegrationReduce duplication and therefore costs Increase profitability Balance conflicting objectives Eliminate conflicting responsibilities and relationships Turn the focus onto business goals Formalize informal systems Harmonies and optimize practices Create consistency Improve communication Facilitate training and development