Raising the level of Management System by IQNet 9004 evaluation service
Many organizations are feeling the necessity to link the improvement of QMS performance and the company’s core business to raise the level of ISO 9001 as a higher-leveled management tool.
JQA recently launched an evaluation service using IQNet 9004: An evaluation model for organizations with QMS that include elements such as viewpoints from ISO 9004, guidance for improving the performance of QMS.
IQNet 9004 is a business evaluation model that meets the needs of organizations willing to improve and reinforce the current QMS. It is based on QMS, and its subject of evaluation includes factors that influence the company’s QMS, such as efficiency of finance and risk management.
Two organizations went through the pilot evaluation, followed by the actual IQNet 9004 evaluations. We interviewed the two companies on their expectations to IQNet 9004 and its effect.
Kumamoto Ricoh Co., Ltd.
Define whole distribution process as the company’s ‘Product’
Aims customer based value-proposing sales
Dealing with drastic market environment change
While market environment changes, Kumamoto Ricoh makes use of IQNet 9004 to deal with the situation as their innovation tool.
Ricoh’s main line of business used to be unbundling Ricoh’s products, but introduction of IT and development of networks influenced the company’s service to make a great shift to software/network construction and proposal of solution including maintenance.
The President, Mr. Ienaga, speaks about the intention and the background of being evaluated by IQNet 9004 as follows: “Before, specification of the product itself was enough to meet customer satisfaction, but nowadays, customer satisfaction depends on the competency to contribute to problem solving and reinforce competitiveness of the company by making full use of IT, as well as proposing, implementing and supporting IT systems we provide. This is why we needed to go over the management system, and improve it to a higher level to keep up with the changes.”
Kumamoto Ricoh has addressed actively to activities such as the challenging Japan Quality Awards together with the whole Ricoh group, and implementing the group’s quality evaluation system. Moreover, in 2002, it independently became ISO 9001 certified. Needless to say, these activities had attained some progress, but on the other hand, Mr. Ienaga points out that “in order to promptly deal with market environmental changes, we needed to clarify our strong points and weak points”.
Consciousness raised by IQNet 9004 evaluation
Mr. Sueyoshi Taniguchi, deputy manager of Strategy Promotion Group had witnessed the on-site audit as an observer to promote Management System. He expresses IQNet 9004 as “A tool that raises consciousness.”
“If ISO 9001 assessment does not allow any nonconformities, IQNet 9004’s evaluation depends on how the organization describes its system’s improvement. Considering this in light of PDCA, IQNet 9004 emphasizes more on C (Check) and A (Act); IQNet 9004 leads us to think about ‘the core value of our company,’ and ‘how we should establish the management system to achieve the core value, not only from the results shown but also from the assessment process itself” says Mr. Taniguchi, about the reason of his expression.
Indeed, Kumamoto Ricoh significantly revised its quality manual after IQNet 9004 pilot evaluation. “Scope” that is relevant to ISO 9001 standard Clause 1 is a typical example.
Previously, Kumamoto Ricoh’s scope simply stated, “Applied to products (service) provided by Kumamoto Ricoh”. However, after the revision, a phrase “Its activities include sales opportunities as inquiries from customers, visiting customers, providing information, information gathering, proposal, order receipt, delivery, tutoring and maintenance” was added on top of it, re-defining the scope more clearly.
When considering “product,” it is apt to be too much focused on the devices used or specification of the system; Kumamoto Ricoh was not an exception, facing difficulties in defining whether products are “the goods” or “the sales process.”
Through IQNet 9004 evaluation, Kumamoto Ricoh reexamined various elements, such as the changes in market/customer needs and the corresponding company strategies. By these reconsiderations, “it made us rediscover the idea
Re-defining the scope made changes to details. General Manager of Marketing Strategy department, Mr. Kazuhisa Hayashi mentions about the scope as follows: “The existing quality management had a point of view focusing more on adapting to the standard’s requirements, but by clarifying the subject, we were able to reestablish the quality manual that reflects Kumamoto Ricoh’s strategy; ‘structure to offer solutions in higher level’ and ‘product out, market in’.”
KRIC that represents market in
“The whole sales process is Kumamoto Ricoh’s Product.” Clarifying subjects and ensuring its consciousness of “market in” - the raising awareness changed its shape into a concrete business activity, which resulted in “KRIC”, established in the head office in June 2005.
Kumamoto Ricoh renewed its existing showroom for their individual products into a multi-use space used for seminars, demonstration for solution promotion etc, in addition to exhibiting their products. KR for KRIC stands for Kumamoto Ricoh, I for IT, and C for Collaboration Square, implying the “collaboration space based on customers.”
Mr. Ienaga explains “‘based on customers’ means to put ourselves into the customer’s shoes, feel what and how they would think, and take actions based on such ideas.” Kumamoto Ricoh’s improvement in its management system has just begun and its success should be judged by how the system actually contributed to the efficiency and level up of the management. Holding the booklet with “Midterm-management plan” written on it, Mr. Ienaga pointed each profit targets and remarked “by IQNet 9004, Kumamoto Ricoh was able to improve the system competent to market changes, but consequently, we need to link it with management objectives and have an output as its achievement.”
(ISO NETWORK, © 2005 Autumn, Japan Quality Assurance Organization)
Unicharm Corporation
Quality Management supporting CSR activities
Progression of the target from products to quality management
Action towards CSR based on “product manufacturing”
“We feel that CSR is nothing special.” says Mr. Eiji Ishikawa who is the Director and Managing Executive Officer of Unicharm Corporation. He is also the chief of CSR department.
Unicharm Corporation is one of the Japanese companies with most successful CSR activities. Objectively speaking, it became one of the leading companies in CSR ranking in business magazines. Mr. Ishikawa’s reaction seems too simple for a person in charge of such activities. However, this awareness of “nothing special” is the key factor that most reflects Unicharm’s CSR activities.
How are we to apprehend “social responsibility”? Approach towards CSR would change according to how it is perceived. Having the viewpoint “CSR is the product”, Unicharm’s framework of promoting CSR was established in light of “monozukuri” (manufacturing) that specializes in its main business. Specifically, having a great impact on products and manufacturing, functions such as quality assurance, environmental protection, product safety, compliance to statutory and legal requirements were reinforced. All of these elements were covered under CSR division launched in 2003 that became the starting year of CSR activities in Unicharm.
Quality, environment and safety are important factors for consumers to select the products, since the company’s products are end-user products, focusing on products that have direct contact with skin, such as baby’s diapers.
In short, Unicharm aimed to level up their CSR activities by the formulation of “Consumer first ? social meaning of the products ? assure product safety ? improve customer satisfaction ? CSR”. “NOLA & DOLA”*1, Unicharm’s corporate philosophy is in its background.
IQNet 9004 as a “check-up” tool of the system
“Quality management” is an infrastructure for Unicharm’s CSR activities that originates from “monozukuri”. Additionally, taking into account that the company deals with end consumer goods, it could be said that quality management is a lifeline for the company.
For this reason, Unicharm implemented a high-leveled quality management including audit system based on ISO 9001, product process to release and transportation, and even has a quality management prepared for customer’s misuse of the product.
As an example, the company implemented mutual audit between different factories during the internal audit for product process. The mutual audit was thorough enough that “Safety guidelines for procurement of resources” were determined for the raw materials and resources, and they would even show their quality policy and evaluate the supplier beforehand.
Practicing such a high level of quality management, why did Unicharm require IQNet 9004? Mr. Ishikawa mentions the reason as follows;
“Instead of qualitative evaluation, a quantitative evaluation with indices enables us to accurately understand the reality of the management. We had an expectation that we would have a clearer idea of the company’s strong/week points by third party evaluation shown in numerous values, and by large, would lead to quality activities. Furthermore, we expect that it will activate CSR activities in the long run.”
Ms. Reiko Ishimura, who belongs to CSR, Quality Assurance Division and is in charge of promoting ISO 9001 throughout the company, states that there are two aspects to IQNet 9004’s effect; “raise the motivation of the field and present indicator to management for decision-making.”
Ms. Ishimura sometimes faces voices from the field that “the implementation of ISO does not lead to “achievement” and “changes”. The dilemma caused from vague vision of results is apt to getting the engagement with quality system into a rut. Ms. Ishimura observes that the numeric values shown by IQNet 9004 can be used as one of the goal index of the field that lead to rise in motivation.
On the other hand, the effects of quality management system are difficult to be quantified. CSR division struggled to evaluate the internal audit by numeric value, but in reality, “it was not as easy.” As a solution, IQNet 9004 can show the improvement of the system shown by quantity and graphs that could be shown to the top management as a decision-making indicator.
Mr. Ishikawa compared IQNet 9004 to a “Medical check-up,” and said that the main characteristic of IQNet 9004 is that “it enables to get hold of the illness beforehand”.
“There is a possibility that the company activities get accustomed to malignancy, just like a lifestyle-related disease. Of course, we need to stop these practices before we need any surgery, but the company won’t realize this if it is asymptomatic. This is why we need routine examinations (IQNet 9004).”
CSR’s concept on purchasing materials
“SAPS management” linking CSR to management
The goal of Unicharm’s CSR activity is to develop a strengthened internal system, and expand it to its group companies, overseas and its partners in the near future. To promote the ongoing Sixth Medium - Term Management Plan, the company adopted its unique “SAPS management*”, having a significant role to directly link stable CSR activities and the management.
Needless to say, improvement and expansion of CSR activities deeply relates to quality management system that is its cornerstone.
Because the viewpoints of the quality management system were based on “monozukuri”, it gradually shifted towards products. However, as seen in “SAPS management”*2, “the subject is to enhance “the quality of management”, as well as the “product.” In this sense, Mr. Ishikawa’s stance could be explained easier by saying; “CSR is equivalent to management. That is why it is not a special thing.”
*1 Abbreviation of “Necessity of Life with Activities & Dreams of Life with Activities”. The company’s concept to continue to do all in its power to fulfill the hopes of each and every consumer, and that the company will supply products that alleviate physical and mental stress and thereby ease the wide variety of burdens that people endure throughout their lives, from infancy to old age.
*2 SAPS = “Everyone participates to schedule (Schedule), act (Action), feel fulfilled (Performance), and turn the spiral to deal with the changes”. (ISO NETWORK, © 2005 Autumn, Japan Quality Assurance Organization)
Contact:
JQA
Japan Quality Assurance Organization
Management Systems Sector
Mr. Yoshikazu Kameyama
2-5-2 Marunouchi, Chiyoda-ku
Tokyo 100-8308
Japan
Tel: +81 3 6212 9507
Fax: +81 3 6212 9511
kameyama-yoshikazu@jqa.jp
www.jqa.jp