55Quality Management

Quality Management

Quality Management System ISO 9001:2008: THREE YEAR PERFORMANCE (2010-2012) The Sabah Forestry Department has entered the third year of implementation of the quality management system referred as standard ISO 9001:2008. SFD has been recognized in implementing the quality management system since the first version of the ISO standard. The government introduced to the administration a management system based on quality management to ensure delivery of services quickly, accurately and effectively to the customer. Studies on the root cause of service delivery problems have been discussed in detail in the management review meetings which are conducted annually. Among the main causes of malfunction that causes weaknesses is ‘human resources’. Issue of concern is related to ‘skills’ and ‘attitudes’. Other problems are also identified as infrastructure, logistics and ICT equipment. Generally their performance against the implementation of SFD ISO certification was at a satisfactory level for the year ended 2012. Problems encountered during the year were related to technical problems in the general administration such as records management, training, finance and maintenance. However, this problem occurred on a small scale and improvements have already been taken to address non-compliance. The “three year” achievement of SFD ISO 9001:2008 will be described based on 5 categories namely (i) Achievement of Quality Management System (QMS) principles (ii) Quality Policy Achievement, (iii) Internal Audit, (iv) Customer Feedback & Customer Complaint, (v) Quality Objective Achievement, and (iv) Calibration Program.

Mr. Rahim Sulaiman, Deputy Director of Management cum ISO Management Representative, chaired one of the Quality System Committee Meetings.

Member of the Quality System Committee who were present at the meeting.

(i) Achievement of Quality Management System PrinciplesThe following Table 10.1 describes the SFD achievement of quality management system which are underlying by the ISO 9001 standard.

Table 10.1: SFD Achievement of QMS Principals

Principles Category Description SFD Achievement1 Customer Focus ‘organization depends on their customers and therefore should understand current and

future customer needs, meet customer requirements and strive to exceed customer expectations’

95%

2 Leadership ‘Leaders establish unity of purpose and direction of the organization and should create and maintain the internal environment in which people can become fully involved in achieving the organization’s objectives ’

100%

3 Involvement of People ‘people at all levels are the essence of an organization and their full involvement enables their abilities to be used for the organization’s benefit ’

100%

4 Process Approach ‘a desired result is achieved more efficiently when related resources and activities are managed as a process’

98%

5 System Approach to Management ‘identifying understanding and managing a system of interrelated processes for a given objective improves the organization’s effectiveness and efficiency’

98%

6 Continual Improvement ‘continual improvement should be a permanent objective of the organization’ 100%7 Factual Approach to Decision

Making‘effective decisions are based on the analysis of data and information’ 100%

8 Mutually Beneficial Supplier Relationships

‘an organization and its suppliers are interdependent, and a mutually beneficial relationship enhances the ability of both to create value’

95%

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(ii) Quality Policy Achievement

Table 10.2: SFD Quality Policy AchievementQuality Policy Statement Key Indicator SFD Achievement

Manage and administer the State’s forest resources in a sustainable (lasting),

This refers to the Achievement of Vision & Mission (SFD).Mechanism Achievements:a) Achievement of 10 objectives SFDb) Strategy Plan SFDc) Achievement of Client Charter

95%90%89%

Meet customer needs in a professional and ethical manner,(clauses 5.2, 7.1, 7.2.3, 7.5.2, 8.2.1)

Customer satisfaction should be given due attention Mechanism Achievements:a) Management of Customer Complaintsb) Customer Feedback Form

100%100%

Ensuring the requirements of international standards followed by the achievement of quality objectives are reviewed periodically to ensure continuous improvement and effectiveness of the quality management system, and;(clauses 4.2.4, 5.4.1)

Achievement of Quality Objectives particular implementation CORE Operating Procedure. Mechanism Achievements:a) ImplementationOfficershallensureallqualityobjectivesthathave

been outlined to achieve the target.b) Update the relevant records as evidence of achievement.

100%

95%Apply understanding of the organization’s quality policy to citizens DID.(clauses 5.1, 5.3, 5.5.3)

The management of the Quality Policy shall promulgate meaning to all citizens.Mechanism Achievements:a) Meetings Managementb) Thedialoguesessionsorbriefingsc) Circular Letterd) Work visits

100%100%100%100%

(iii) Internal Quality Audit (IQA) ProgramsThe 4th Internal Quality Audit (IQA) finding is described in Chart 1.0 below. Generally SFD Quality Management System, is still relevant to and is carried out systematically although there were several in a series of compliance audits conducted before. The internal audit team found that the implementation of ISO 9001:2008 at all certificate locations are satisfactory. However, there are some significant drawbacks to be taken seriously. Among the problems identified are (i) negligence in doing the work, (ii) not timely, (iii) the lack of effective action, and (iv) do not understand the procedure. The auditors also gave some recommendations for corrective actions to overcome the problems. The officer in charge of the implementation process and the general thrust should use existing monitoring mechanisms to ensure the problem does not recur. This audit has found 6 non-compliance with one ‘major’ status. Major cause of non-compliance was due to: not understanding the needs of working procedures as established. Thus the same offense has been committed repeatedly and caused problems for the services procurement system. Management review meeting also discussed the matter and a mechanism has been identified to overcome this. A total of 22 observations were also stated by the audit team Chart 10.1: The IQA findings for 4th Annually Audit Programs by

Standard Clause (Clu)

during the auditing program. And according to the assessment team, procedures that should be given special focus are (i) Control of Records (4.2.4), (ii) General Procedures related to training (PKA01: 08:10), (iii) the general procedures related to maintenance (PKA01: 08:11) and (iv) General Procedures related to income. The following Table 10.3 describes detailed finding of non-compliance report (NCR) and Table 10.4 describes the Observation status.

Table 10.3: NCR finding by IQANo of NCR NCR Statement Clause Responsible & Action Location

1 Record registration not in compliance at Brumas County Office. SOP Ref:JPHTN-PKT01:08:04.

4.2.4 DFO KLK

2 Stock Record Supplies not been recorded using KEW PS-3, as required in SOP Ref:JPHTN-PKA01: 08:07 Procurement Article 8.0.

4.2.4 DFO KLK

3 IP not compliant with SOP Ref:JPHTN- AKT 01:08:15. Sample been audited JPHTN/BKI/KS/51/2011 and JPHTN/TNM/KS/28/2012

7.1 (c) HoD E&I

4 Record review on file JPHTN/P&P700-3/2/Klt.3, folio 20, 21 & 152 for PHM-04, Form Part G are not been fulfilled and review for further action. SOP Ref:JPHTN-PKT.01.08.04.

7.1 (b) HoD E&I

5

Record reviewed on files 71. Ref: JPHTN/SPP/100-40/1/KLT.4, folio 29 and 30, defined that PHM09 in the "Details of Correction & Corrective Action" is still empty even though the action was taken as a file number 06. Ref:JPHTN/P& P/500-8/KLT.2, folio 58, and file ref: JPHTN/SPP/100-40/1/KLT.4 with folio number 37 (letter ISO9001: 2008 MINUTES KSP-02, dated 24th June 2011, pages 15 and 16).

8.2.1 HoD E&I

... continued on next page

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57Quality Management

No of NCR NCR Statement Clause Responsible & Action Location

6

Investigations following papers were inspected and found non-compliance with SOP Ref:JPHTN-AKT01:08:15a) JPHTN/NBN/95/95/2011b) JPHTN/SDK/KS/73/2012c) JPHTN/BFT/KS/50/2012d) JPHTN/KM/KS/59/2012e) JPHTN/KDT/KS/20/2012f) JPHTN/KDT/KS/3/2012

8.5.2(e) HoD E&I

NOTE: GWP – General Work Procedure, E&I - Enforcement & Investigation Division, KLK – Kalabakan, HoD – Head of Division.

... continued from previous page (Table 10.3)

Table 10.4: Observation findings by IQA

IQA Annually Series Figure of OBsSummaryofObsfindingbyLocation

Figure of Clause Stated in Quality Manual DocumentLocation Obs Fig.

4th 22

DFR 2 4.2.31, 4.2.41 BLN 2 4.2.41, 6.31

Botany, FRC 4 6.32, 7.42

KLK 7 4.2.31, 4.2.42, 6.2.2(e)1, 6.31, 7.11, 8.2.11

IPS 2 6.11, 6.31

E&I 5 4.2.42, 6.32, 7.41

HQ NA NANOTE: HQ – Head Quarters, FRC – Forest Research Centre, E&I –Enforcement & Investigation Division, KLK – Kalabakan, DFR – Deramakot, BLN – Beluran, IPS – Sabah Forest Institute, NA – Not Available, Obs – Observation

Handing over the 3rd Annual Audit Internal findings to IPS Head Office Mr Johnlee Kolik.

Mr. Shim Yee Foong shows a demo to close some of the queries by Internal Audit Team findings.

(iv) Customer Feedback & Customer Complaint

• Customer Satisfaction Customer satisfaction survey (CSS) achievement is show in Chart 10.2 below. Data analysis done based on CCS forms which are being used as the evaluation mechanism assess the customer’s feedback on department service delivery systems on SFD’s 15 main functions and towards the realization of department’s vision, mission and the 10 objectives of the strategies thrust. The CSS amount is based on 5 categories namely (a) ‘services’, (b) ‘forestry department staff’, (c) ‘offices’, (d) ‘communication & public relationships’, and (e) ‘customer services’. Based on the CSS conducted in 2011-2012 (Chart 10.2), the department has recorded a marked achievement in the category of ‘services’, ‘forestry department staff’ and ‘offices’ for having achieved above 2.5 performance objective/satisfaction points. Continous improvement will take place, to ensure the low rated category ‘d’ and ‘e’ are addressed.

Chart 10.2: Customers satisfaction survey chart 2011-2012.

NOTE: Satisfaction Points achieved based on the Quality Objective of Customer Satisfaction was (i) Excellent 3.0 – 2.5, (ii) Medium 2.4 – 2.0 and (iii) Minimum 1.9 to 1.5.

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• Customer ComplaintsCustomer complaint reports for 2012 are stated as Chart 10.3 below. IEP received almost 81.3% customer complaints for three years. And according to the IEP, approximately 98% of customer complaints are related to forest crimes such as license conditions, encroachments and illegal logging.

Chart 10.3: Customer Complaint 2011-2012

• SFD Customer Complaint Committee (SFDCCC) The SFDCCC was established by the department on November 2012 and is responsible to management and receives any complaints on issues such as forestry criminal cases (encroachments, illegal logging, violation of licenses or permits), or on the dissatisfaction of any administrative action of SFD, which is felt to be unjust, non compliant with laws and regulations, including misconduct, fraud, abuse of power, maladministration and others. The SFDCCC will implement an investigation, write the report and submit the report to the Sabah Public Complaints Bureau (PCB). SFDCCC was led by Deputy Director (Development) and the jurisdictions are as follows: -(a) To formulate policies regarding public complaints

management system for SFD;

(b) To consider and make recommendations to the Head of Department on decisions and on reports/cases submitted by the Public Complaints Bureau about complaints or any directed by the Head of Department and

(c) Instruct the chief of the Division/District Forestry Officer concerned to take corrective and preventive actions in solving complaints/cases referred to it.

• SFD Public Complaints ManagementAll complaints received by the Head of Department will be handled by SFDCCC through the following mechanism;- (a) Receives complaints either by (i) telephone, (ii) through the

mail, (iii) through electronic mail messages as email or face book, and (iv) short message service (SMS);

(b) Register complaints as in (a) above in the Form PHM 04 (Customer Complaint Form);

(c) Investigations carried out on each of the complaints received by the investigating officer or other persons appointed by the Head of Department;

(d) The report of the findings will be submitted to the Head of Department and a copy to SFDCCC;

(e) Inform the complainant of the findings and decision of the Department in the event that the complainant completes the contact information;

(f) Ensures that all records of all complaints received and registered on Form PHM-04 are stored and maintained.

Fig.10.1: Flowchart of SFD Public Complaints Management Procedure.

(v) Achievement of Objective Quality Quality objective achievement for a period of 3 years of implementation of ISO 9001:2008 certification is demonstrated in the following Chart10.4. This achievement appraisal refers to the six core processes of (i) Reduced Impact Logging (RIL), (ii) Timber Royalty Process, (iii) Specimen Herbarium, (iv) Occupation Permit, (v) Investigation Paper (IP) and (iv) Forest Ranger Course. Generally, the achievement of quality objectives for the implementation of the process was satisfactory. The six locations have shown encouraging performance. Officers and staff who are directly involved in the management and administration of the office work have demonstrated as being transparent, trustworthy, and dedicated. In terms of strength, ‘teamwork’ is the key to success in ensuring the continued momentum of the excellent work and greater knowledge and creative knowledge to deal with any problems. No doubt there are also problems faced on-site certifications. Problems such as lack of human resources, skilled labor, infrastructure,

Receive & RegisterComplaint

Open new IP

Director

Further

Complete

Submit IP

Inspection orInvestigation

Case Close

Inform SFDDirector & the complainant

Submit IP toDirector for further

action & result

Complaint Status?

1 Day

7 Day

1 Day

False

True

Investigation SOP JPHTN-PKT01:08:05 Applied

Note: management complaints handled within 9 days

Chart 10.4(a): Achievements of QO for six Core Procedures.

Core procedure: Reduced Impact Logging Quality objective: 4 StatementsAchievement evaluation: 8 compartments Completion of general procedure: 100%Completion of core procedure: 100%

QO1 QO2 QO3 QO4

2010-12 2010-12 2010-12 2010-12

78.5% 54.2% 38.0% 35.5%

Table A1: RIL QO value

Summary: Based on the three year assessment and evaluation, achievement of quality objective for RIL is stated as in Table A1 above. Performance for QO3 and QO4 are not very satisfactory with score below 50%. Weather condition especially heavy rain was the main cause denying the achievement of RIL quality objective. It also effected the evaluation of compartment document and product extraction.

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59Quality Management

logistics and outsourcing commitments affect the smooth production of products and services. This factor is a negative impact on the achievement of quality objectives in several location certifications. Continuous improvement will continue to be implemented to ensure the continuity of the ISO 9001:2008 certification Sabah Forestry Department is at a satisfactory level.

Core procedure: Timber Royalty Collection Quality objective: 5 StatementsAchievement evaluation: 7 licenses Completion of general procedure: 100%Completion of core procedure: 100%

Core procedure: Specimen HerbariumQuality objective: 5 StatementsAchievement evaluation: 143 SpecimenCompletion of general procedure: 100%Completion of core procedure: 100%

Core procedure: Occupational PermitQuality objective: 4 StatementsAchievement evaluation: 181 PermitsCompletion of general procedure: 100%Completion of core procedure: 100%

Core procedure: Investigation Paper Quality objective: 4 StatementsAchievement evaluation: 507 IPCompletion of general procedure: 100%Completion of core procedure: 100%

Summary: Based on the three year assessment and evaluation, achievement of quality objective for TRC is stated as in Table A2 above. Proactive measurement instruction teams and introducing of prepaid royalty system improved the efficiency of removal pass processed. The product realization is active above 60% of the quality objective aim. Royalty collection for Beluran District is stated as above RM 1 million per year.

Summary: Based on the three year assessment and evaluation, achievement of quality objective for SH is stated as in Table A3 above. Achievement of quality objectives herbarium specimen core procedure is satisfactory. However, by the middle of 2012, section systematic botany has made the reclassification of existing herbarium specimens in accordance with the requirements of botanical standards and guidelines. Implementation of this program has resulted in the reclassification of non-compliance with some of the network processes associated with the preparation of herbarium specimens. This has caused delays in the identification process and storage SH and resulted in QO3 achievement, QO4 and QO5 being below 50%.

Summary: Based on a three year assessment and evaluation, achievement of quality objective for the OP is as stated above in Table A4. QO2 performed was below 50%. This is due to the failure of the Licensee to send a company representative to make a joint inspection on the ground. Joint inspections are Intended to ensure the requested permit that is occupied is delineated and the forest reserve is organized and controlled. Almost 58.3% of contractor or licensee failed to comply with the requirements for realizing QO2. Officers in charge should ensure that the management of these matter can be overcome urgently to avoid non-compliance. Realization of the objectives of the quality of the core process is important in occupational permits.

Summary: Based on a three year assessment and evaluation, Achievement of quality objective for IP is stated as in Table A5 above. The data analysis of the IP core process was very satisfactory. All QO recorded scores over 80%. Provision of IP addressed mechanisms have been specifically addressed and improvements made to ensure quality IP available and can be used effectively for the purpose of prosecution and so on. Some of the problems faced by the authorities and the Sabah Forestry Department investigation were on false calls. 98% of complaints received were related to forest crimes, while 25% of the total complaints were false.

QO1 QO2 QO3 QO4 QO5

2010-12 2010-12 2010-12 2010-12 210-12

74.0% 74.0% 67.3% 74.0% 74.0%

QO1 QO2 QO3 QO4 QO5

2010-12 2010-12 2010-12 2010-12 210-12

100% 99.8% 53.8% 41.2% 22.7%

Table A2: TRC QO value

Table A3: SH QO value

Table A4: OP QO value

Table A5: IP QO value

Chart 10.4(b): Timber Royalty Collection (TRC) Quality Objective Achievements.

Chart 10.4(c): Specimen Herbarium (SH) Quality Objective Achievements

Chart 10.4(d): Occupational Permit (OP) Quality Objective Achievements.

Chart 10.4(e): Investigation Paper (IP) Quality Objective Achievements.

QO1 QO2 QO3 QO4

2010-12 2010-12 2010-12 2010-12

100% 41.7% 60.1% 66.9%

QO1 QO2 QO3 QO4

2010-12 2010-12 2010-12 2010-12

82.5% 100% 99.7% 100%

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Chart 10.4(f): Forest Ranger Course (FRc) Quality Objective Achievements.

Core procedure: Forest Ranger Course Quality objective: 4 StatementsAchievement evaluation: (25)Completion of general procedure: 100%Completion of core procedure: 100%

QO1 QO2 QO3 QO4

2010-12 2010-12 2010-12 2010-12

100% 76.4% 64.5% 81.1%

Table A6: FRc QO value

Summary: Based on the three year assessment and evaluation, achievement of quality objective for FRc is stated as in Table A6 above. IPS conducts training, namely forestry certification courses and certificate courses for rangers. But so far, the only IPS forestry certification courses are for foresters. These training opportunities are limited and only open to internal staff who have served at least one year in the department. Several amendments have been done on the syllabus course to comply with the training requirements period which was established especially for the internal human resource. Generally all quality objectives for FRc were satisfactory with 60% average score.

(vi) Calibration ProgramChart 10.5 shows the calibration program achievement Sabah Forestry Department that was first implemented in 2010.

Chart 10.5 above shows the implementation process measurement equipment calibration reached almost 90%. The calibration processes are conducted annually at the IPS Telupid calibration center (IPSCC). Two new members of the SFD calibration team were introduce during the calibration session which was conducted in June 2012. Both of these new members are being coated by the existing calibration team. The calibration process was performed according to the general working procedure JPHTN-PKA01: 08:12 certified by the Management Representative cum Deputy Managing Director. The implementation mechanism used the evaluation forms SMEs and measurement reading entry form. Equipment involved in the calibration process were (i) GPS, (ii) Diameter Tape, (iii) Distance Tape, (iv) Sunnto Clinometer, and (v) the prismatic Compass. The results of the calibration process, which were made by the department calibration team, found 15% of the accuracy test equipments were damaged and cannot be used and not economical to repair or maintain.

Chart 10.5: Calibration Process Performance of Measurement ToolsOf Four Locations for ISO 9001:2008

Photo of Calibration Program (Location: IPS Calibration Centre, Telupid)