Blended Digest 7

St. Joseph’s School Commends American Quality Management for Its Generosity to the Lakota Children

Mon, 12 Oct 2020 22:22:07 +0000

Supply Chain Optimization in the Age of COVID

Mon, 12 Oct 2020 17:54:26 +0000

Supply Chain Optimization in the Age of COVID

Mon, 12 Oct 2020 17:42:51 +0000

The COVID-19 pandemic has forced companies worldwide to scale back production and transportation, temporarily close, or shut down permanently. These disruptions have severely impacted global supply chain optimization.

Supply chain optimization is key to operating at optimal performance, and the health crisis has created new challenges for businesses across all industries to maintain their highest rate of productivity.

If companies want to survive throughout the pandemic and successfully emerge from it, they must focus on protecting and improving their supply chain efficiency. To do so, business leaders need to:

Understand the ways the disease has impacted their supply chains
How they can adapt to these changes
Learn the steps to take to protect themselves
Plan for the future of supply chain optimization post-COVID-19

Diving Deeper: How COVID-19 Affects Supply Chain Optimization

Reduced Workforce

Over 235 countries have recorded Coronavirus cases, with more than 35 million people infected, and over one million deaths as of early October 2020, according to the Johns Hopkins University Center for Systems Science and Engineering. In the U.S., there have been 7.4 million cases and 210,000 deaths from the disease.

Following government guidelines, companies have taken steps to ensure their employees’ safety, such as requiring face coverings, social distancing, remote work, and limiting the number of employees on each shift. Many employees have also refused to return to work out of fear for their health.

All these factors have created a reduced workforce, leading to less product manufacturing and slower delivery times.

For example, consider the farming industry. Many farms rely on migrant workers as their workforce. Shortly after the pandemic hit, the U.S. announced immigration and travel bans, which included seasonal migrant workers.

Over the spring and summer, countless farms faced a shortage of labor to pick produce. The situation left farmers with excess fruit and vegetables rotting in unharvested fields. That meant less produce reached consumers, and what did reach them came at an inflated price.

Supply and Demand

While reduced production has reduced supply, demand shortages have ravaged other industries. The travel and leisure industries have suffered the hardest. Since the pandemic started, fewer people are buying airline tickets or booking hotel rooms, and many hot tourist destinations are in lockdown.

Airline travel was essentially grounded at the start of the pandemic. Customers were simply too fearful to fly. As a result, many airline companies have reduced their daily flights, removed routes, and scaled back plans to purchase new planes.

With more planes left on the ground, fewer planes need regularly scheduled maintenance and updated parts. Companies that manufacturer those parts will either build up a surplus or limit production capacity.

Companies that build airplanes are in the same boat. The slowdown or cancellation of airplane production has caused a ripple effect for airplane part production companies.

For example, Boeing temporarily stopped producing its 787 Dreamliner planes at facilities in South Carolina and Seattle due to COVID-19 restrictions. The Chicago-based company applied for federal relief to cover losses and to boost its supply chain.

These examples are just a small window into the havoc COVID-19 has wreaked on supply chains worldwide—like dominos, supply and demand changes affect every link in the chain. The pandemic has forced companies to place emphasis on planning short-term and long-term contingency plans. Only those who find innovative ways to mitigate supply chain disruptions will be standing when the economy stabilizes, and that requires supply chain optimization.

How Companies are Adjusting

Six months into the pandemic, companies are learning to steer through supply chain problems by developing new policies. Many business leaders find themselves:

Staying away from single-source dealers
Ordering extra inventory
Reviewing their contracts with suppliers
Developing mapping to maximize efficiency

Bidding Farewell to Single-Source Dealers

In an attempt to get the best deal, many companies narrow down the field of suppliers to one company. While this may drive the price of the product down, it can leave those same companies without a Plan B.

If a company’s single-source supplier can’t deliver a product, then the company is left to scramble to find another supplier. The pandemic has highlighted just how dangerous counting on Plan A can be, as many suppliers have either shut down or been unable to manufacture their products.

Smart logistics managers are now lining up contingency plans for their supply lines with a hybrid approach where they order products from two or more suppliers. While it may increase costs, the move provides insurance that the company will receive its products and continue to meet customer demands.

Ordering Extra Inventory

Many companies rely on just-in-time manufacturing to reduce supply chain waste. With this system, suppliers deliver materials according to a pre-arranged schedule. This approach works efficiently because manufacturers can order the exact amount of product necessary without any excess.

However, we never know when the next crisis will hit. Right now, the world is dealing with a pandemic. The next international calamity could be a natural disaster in a geographical location that is a critical link in the supply chain, a war, or who knows what else.

To plan for the worst, companies have begun to stock up on inventory to reduce the chance of a shortage of materials if an unplanned event impacts their primary supplier. Just-in-time ordering hasn’t been abandoned, rather cautiously reserved for less-vital supply chain elements.

Reviewing Contracts with Suppliers

The pandemic has raised some red flags on the current contracts suppliers and manufacturers have agreed to, as well as on future contracts. Due to fewer flights, closed ports, and fewer trucks on the road, product delivery has been delayed.

Companies are closely monitoring their existing contracts with suppliers to determine what obligations each party is liable for. When existing contracts are set to expire, companies are considering the ramifications of the pandemic and future global emergencies that could arise.

Developing Mapping of a Supply Chain to Maximize Efficiency

When it comes to supply chains, companies have different tiers of suppliers. The Tier 1 level is primary suppliers, while Tier 2 is secondary suppliers.

For a company to manage an international crisis, it must keep track of all its suppliers – and not just the Tier 1 level. The disruption of one supplier can halt or delay the entire supply chain. Companies that have visibility across all levels can survive a supply chain catastrophe, mostly unscathed.

General Motors is a perfect example of this approach. When the tsunami of 2011 impacted Japan, GM invested in mapping tools. These supply chain tools helped GM to discover which suppliers were close to the event.

In turn, GM figured out what steps were necessary to avert a major disruption to its supply chain.

As the coronavirus first originated in Wuhan, China, companies with updated mapping tools knew whether they had suppliers in the area. If they did, they were able to reach out to suppliers in other areas or countries to order their products.

How Companies are Safeguarding Their Supply Chains

Almost every industry is currently focused on taking preemptive measures to diminish the threat of COVID-19 on their supply chains when it comes to personnel—and rightly so. Here are a few examples of the steps that may counter future delays:

Focus on showing employees how they can avoid catching the coronavirus. Business leaders must remind the workforce to wear a face covering, remain six feet apart from co-workers, and frequently wash their hands.
Develop a screening process. Companies are requiring employees to answer a series of questions to determine their risk and possible exposure to COVID-19.
Take temperatures daily to test for a fever with a touchless thermometer. The Centers for Disease Control considers someone with a temperature of 100.4 degrees or greater to have a fever.
Plan for a daily reduction in the workforce. According to the CDC, employees who have a confirmed COVID-19 diagnosis or contact with someone who does must quarantine for at least 14 days. Businesses must prepare for employees to remain out of work with contingency plans to cover for anyone unable to return to work for an extended period.

Measures to protect supply chains that are not related to personnel are also a worthy consideration, such as:

Concentrate on cash flow
Understand Tier 1 supplier risk management
Identifying multiple suppliers and eliminating single-source suppliers
Managing inventory levels
Following trends in supply and demand
Developing supply chain mapping tools

The Future of Supply Chain Optimization During a Pandemic

The COVID-19 pandemic has established new norms in supply chain optimization. Experts predict manufacturers will shift from international suppliers to more regional outfits. They also see a move away from single-source suppliers to multi-source suppliers – even if it comes at a higher cost to consumers.

Above all else, the pandemic has taught companies to think more strategically to avoid falling victim to international emergencies. They will need to take advantage of the latest supply chain optimization technology to figure out how to continue to maximize and sustain peak productivity.

The post Supply Chain Optimization in the Age of COVID appeared first on American Quality Management.

COVID-19 Impact on Manufacturing

Tue, 01 Sep 2020 19:54:23 +0000

COVID-19 Impact on Manufacturing

Tue, 01 Sep 2020 19:10:20 +0000

The coronavirus pandemic has put the world as we know it on pause. As of August 2020, more than 24 million people have contracted the virus, leading to more than 822,000 deaths worldwide. The United States has been one of the hardest-hit countries, and people everywhere have felt the COVID-19 impact on manufacturing.

Manufacturers have seen production, demand, and revenue fall across all business areas, from mining to mechanical engineering. Many companies are struggling to maintain cash flow and handle their existing debts. Some manufacturers cannot outsource production remotely, disrupting the entire supply chain.

As detrimental as the coronavirus pandemic has been for people’s well-being and the economy, COVID-19’s impact on manufacturing has benefitted some industries as much as it has harmed others. While these benefits do not act as counterbalances for the hundreds of thousands of lives lost, these adaptions suggest a way forward from the crisis.

How COVID-19 Affects Lean Manufacturing

The pandemic has touched communities across the world, from hospitals to hotels and schools to service industries. We’ve seen both influxes in demand and dramatic drop-offs. Even five months after the initial outbreak hit the US, we have seen shortages in hospital cots, surgical masks, and ventilators.

Consider the pivot of Pathfindr, an asset tracking business in the United Kingdom. The company makes sensors that track parts during the manufacturing process, thanks to GPS and Bluetooth.

Since the pandemic, Pathfindr’s engineers have redesigned their technology to help people maintain social distancing. As a result, they have created a device called the Safe Distancing Assistant that gives users a jolt if the gadget senses them reaching to touch their face.

The same applies to manufacturers in San Diego. The city’s core manufacturing strengths include defense, aerospace, craft brewing, and shipbuilding. Disruptions to the supply chain have forced many local manufacturers to adapt their business models to meet demand, including:

ResMed: A company known for treating sleep apnea, they have begun producing respirators and ventilators for hospital and residential use.
Orucase: This travel bag manufacturer now makes half a million medical-grade face masks per day.
Cubic: The public tech company that provides products and services for transportation and defense has pivoted to prototype ventilators.
Flexsystems: This plastic products manufacturer has updated its operations to create splash guards and fabric masks for healthcare professionals and residents.

How Manufacturing Is Adapting

We have already touched on issues and adaption within the crisis management and response. The manufacturing ecosystem remains fragile in other sectors. Here are some of the current issues we face in the workforce, supply chain, and finance, as well as how manufacturers can respond with practical steps.

Workforce

Safety should be every company’s top priority, now and in the future. Every manufacturing company should implement additional safety measures if they haven’t already. That includes determining which jobs employees can perform remotely and which must occur on-site.

Manufacturing, like countless other industries, has experienced labor cuts and cost structure overhauls. These declines may continue as long as critical sectors, like travel and aviation, remain stifled under the coronavirus. Some companies may benefit from outsourcing labor, whether they move their information technology to the cloud or hire contractors to fill in for full-time employees.

Other potential steps include:

Training employees on proper safety protocols
Eliminating non-essential travel
Encouraging remote working
Encouraging sick employees to stay home
Finding new ways to work with more remote employees

Operations and Supply Chain

While manufacturers can adapt to new demands, they must prepare for bottlenecking domestically and abroad. The weakening supply chain will likely increase strain on operations over the coming months, and lower levels of manufacturers may suffer.

Cutting discretionary operations can reduce the stress of the coronavirus pandemic in the short term. The real question is whether or not companies have the financial reserves to outlast the recession. The remaining manufacturers of surviving companies will have a leg up when we reach a new normal.

Some other steps manufacturers can implement include:

Improving sanitation
Automating as much as possible
Updating best practices
Communicating with staff
Evaluating cybersecurity
Transferring knowledge via the supply chain

Finances

The COVID-19 impact on manufacturing has put us in uncertain times when it comes to producing necessary items. No one knows with certainty the best path forward, and many companies have made changes to adapt to these new challenges.

Companies should prioritize transparency as they address ongoing hurdles. Leaders should disclose pressing risks and the ripple effect they may have on trade and taxes. Multinational companies should look overseas for a resurgence of cash flow as the United States stagnates in its recovery.

Other solutions may involve resolving employee mobility issues for people in COVID hotspots and considering the impact of tariffs on the new manufacturing climate. As manufacturers navigate these obstacles, they should proactively talk with stakeholders to minimize surprises and unexpected setbacks.

The post COVID-19 Impact on Manufacturing appeared first on American Quality Management.

American Quality Management Discusses The Importance Of Lean Manufacturing In The Age Of Coronavirus

Wed, 05 Aug 2020 22:06:17 +0000

Lean Manufacturing in the Age of COVID-19

Fri, 31 Jul 2020 23:54:19 +0000

Lean Manufacturing in the Age of COVID-19

Fri, 31 Jul 2020 22:58:52 +0000

Lean manufacturing relies on the principle of efficiency with minimum waste. The process applies to industries across many fields, but it is especially relevant to the manufacturing sector among ISO 9001 certified organizations.

The COVID-19 pandemic and its effects on production have created new opportunities for lean manufacturing. This change has challenged the possibility of complete waste reduction, although many manufacturers are rising to the occasion.

COVID-19’s Effect on Lean Manufacturing

As the COVID-19 pandemic began to hit communities all across America, hospitals and medical centers grappled with an overwhelming demand for care but limited medical supplies. Shortages of hospital cots, surgical masks, and other equipment were widespread.

The exponential increase in demand for supplies was a turning point for the production industry—an opportunity to utilize lean manufacturing to address the rapidly incoming problems of coronavirus.

As an example, Ohio-based production company Pioneer quickly connected the rampant medical supply shortage with its manufacturing capabilities. Before coronavirus, Pioneer specialized in horse-drawn farm equipment. When coronavirus started to surge in the midwest, leaders of Pioneer took only two weeks to:

Establish a hospital cot prototype
Connect with relevant industry partners
Produce 50 cots on their first day of fabrication

Then, by utilizing lean manufacturing, Pioneer created a task time of just 30 seconds. In other words, they were now producing two cots every minute.

The COVID-19 pandemic has highlighted the importance of lean manufacturing. With high stakes and short deadlines, the manufacturing industry can ultimately realize the growth possible in zero waste production.

Industry leaders at Pioneer demonstrated that we do not need to reinvent manufacturing every time new problems arise. Instead, we can rely on the already existing network of production capacity to achieve different goals.

How the Manufacturing Sector Is Adapting

Lean manufacturing during coronavirus shows that there will always be new and effective strategies to maximize efficiency in production. As the world changes during the time of COVID-19, production strategies are changing as well.

The manufacturing sector is adapting to the effects of the pandemic in the following ways:

Worker Safety: Worker safety is of the utmost importance. Companies are redesigning physical spaces to prioritize worker safety. If remote work is not an option for a particular industry, it can arrange employee spacing and distance to prevent the spread of COVID-19.
Visual Displays: Many manufacturing sectors have visual displays of proper distancing and hand-washing techniques. They also have point-of-use cleaning supplies spread throughout their physical production space.
Communication: While employees might be at a greater physical distance from each other, having close communication remains essential. The lean manufacturing model pushes for more regular team check-ins and greater leadership alignment.

Another strategy includes team leadership identifying top priority tasks. Depending on capacity, leaders sideline non-essential tasks to maximize efficiency. Also, company leaders are adapting to consumer needs and streamlining the products and services that are in high demand.

Masks and Metal Fabrication During Coronavirus

Many manufacturing industry workers have witnessed the surge of employee mask mandates. However, some workers have actively resisted these mandates because of the nature of their work. For example, some employees:

Work in sparsely populated cities
Operate in physical spaces with built-in employee distancing practices

Mask mandates are making an appearance across all industries. For example, metal fabrication industries are pushing for their employees to wear protective masks. It is not only for the safety of their workers but also for the financial security of the organization.

The specifications of the mandates are different depending on an employee’s sector. However, all businesses could face lawsuits for refusing to enforce it.

For example, the steel market has been rapidly adjusting to its new demands following coronavirus. The market witnessed a decrease in overall steel demand; however, the surge in scrap production allows the industry to consolidate its material costs.

The steel market industry is using the lean manufacturing model to:

Maintain its pre-COVID-19 levels of production
Integrate new manufacturing techniques
Adjust to new levels of demand

Thinking Ahead

The COVID-19 pandemic continues to send ripple effects into all parts of the manufacturing industry. So, new perspectives and approaches are increasingly important. As the pandemic has shifted the supplies and demands of the industry, it has also improved the potential for complete manufacturing efficiency.

Coronavirus poses several challenges for lean manufacturing. Fortunately, capable industry leaders are transforming those difficulties into unique opportunities for growth. Relationships between companies are vital for creating these fast and effective solutions.

When lean manufacturing for coronavirus ends, companies like Pioneer will be able to scale back production quickly. As for the steel market, they are keeping their eyes on scrap prices. As steel prices decrease, there are service centers hesitant to put in orders.

The post Lean Manufacturing in the Age of COVID-19 appeared first on American Quality Management.

Understanding and Meeting OSHA Safety Signage Requirements

Wed, 01 Jul 2020 16:54:36 +0000

Understanding and Meeting OSHA Safety Signage Requirements

Wed, 01 Jul 2020 16:32:11 +0000

Every day, American workers operate and work around machinery and equipment that could harm or kill them. Thanks to workplace safety efforts, which continue to improve, accidents uncommon. Nevertheless, the over 3 million on-the-job injuries reported in 2014 demonstrate that there is still plenty of room for improvement.

One easy, simple, and cheap way to improve workplace safety is through appropriate safety signage. Clear, effective safety signs not only prevent accidents, but they also increase efficiency and elevate workplace safety awareness.

The benefits of proper safety signage to any employer are clear. What isn’t so clear are the regulatory requirements for these signs. The following outlines where to find these requirements and what they mean in practice.

OSHA and ANSI

OSHA and ANSI are the two regulatory bodies that publish standards for safety signage in the workplace. 29 CFR 1910.105, which is OSHA’s Specifications for accident prevention signs and tags, outlines signage design requirements and specifies where safety signage is required.

The ANSI Z535 standard goes still further, specifying standardized coloring and pictograms for different types of hazards. The ANSI standard specifies every aspect of the safety sign:

It stipulates sign and label colors.
It establishes and defines “signal words,” such as “DANGER” or “WARNING.”
It spells out correct text size and style.
It specifies the proper placement of signs and labels.

ANSI standards are revised periodically; the most recent revision of the Z535 standard was in 2011. Employers should make sure that any new labels they print comply with this current standard.

Classes of Hazards and Their Signage

OSHA and ANSI categorize safety hazards into three primary classes of severity, each with its corresponding signage.

Danger signs alert the reader to the most serious hazards, where he or she must be especially careful. The signal word “DANGER,” preceded by a safety alert symbol, are printed in white letters against a red background. This type of sign indicates that death or serious injury will almost certainly result if a hazard is not avoided.
A warning sign is appropriate for a hazard that could cause death or serious injury, but doesn’t pose a risk severe enough to warrant a danger sign. Warning signs include the word “WARNING,” preceded by a safety alert symbol, printed in black letters against an orange background.
Caution signs advise of hazards that could result in minor or moderate injury if not avoided. Caution signs include the word “CAUTION,” preceded by a safety alert symbol, printed in black letters against a yellow background. Caution signs are often employed to advise against unsafe practices.

A fourth hazard classification encompasses biological hazards. These alert personnel to the presence of this type of hazard.

Other Types of Safety Signage

Besides just warning of hazards, other types of safety signs can help to promote a safe and orderly work environment. These include:

Notice Signs: Using white letters on a blue background, these communicate directions, procedures, and other important information about a machine, a designated area, or equipment. The information conveyed is not related to risk of injury.
General Safety Signs: As opposed to alerting the reader of a hazard, these provide helpful safety information. These may relate to first aid, sanitation, or suggested general safety policies. They are printed with white letters on a green background.
Admittance Signs: These explain the consequences and potential hazards associated with entering a designated area.
Fire Safety Signs: These indicate the location of emergency firefighting equipment and fire exits.
Non-Hazard Signs: These simply convey information, such as indicating the way through a facility. Although they have nothing to do with safety hazards, they are still safety signs, since they promote an orderly, safe work environment.

Placement of Safety Signs

OSHA specifies when a safety sign is necessary in 29 CFR 1910.145(f)(3). It states that these:

“Shall be used as a means to prevent accidental injury or illness to employees who are exposed to hazardous or potentially hazardous conditions, equipment or operations which are out of the ordinary, unexpected, or not readily apparent. Tags shall be used until such time as the identified hazard is eliminated or the hazardous operation is completed.”

If these conditions are met, then the OSHA standard specifies that the safety sign placement should be “as near as possible” to the hazard.

Safety signs must be visible and readable from a safe distance. 29 CFR 1910.145(f)(4) requires the signal word (DANGER, WARNING, or CAUTION) to be readable from at least 5 feet away. The logic behind this is to alert a worker of a hazard while he or she still is far enough away to avoid it.

One other important requirement is that the safety sign itself must not present a hazard. For instance, a safety sign with exposed, pointed corners or sharp edges would be its own hazard.

The post Understanding and Meeting OSHA Safety Signage Requirements appeared first on American Quality Management.

How a SWOT can make your life easier

Mon, 01 Jun 2020 16:54:31 +0000

How a SWOT can make your life easier

Mon, 01 Jun 2020 15:57:10 +0000

If a business is looking to thrive, it needs to define its objectives, as well as any factors which may negatively impact those objectives.

A SWOT (strengths, weaknesses, opportunities, threats) analysis allow a business to determine both internal and external factors which may affect a business’s profits and objectives, then effectively react to them to minimize or even eliminate potential losses.

Strengths are what makes the business unique and what they can do better than the average business, such as having low employee turnover or good customer relationships. When analyzing strengths, a business needs to review what it perceives as its own internal strengths, as well as what the market perceives as the strengths of the business. After determining strengths, a business should then work on enhancing them even more in order to create more opportunities for the business.

Weaknesses, on the other hand, represent internal improvements a business should make or options it should possibly even avoid. Weaknesses also hurt business since they hinder it from achieving objectives; however, a business can better achieve an objective by identifying weaknesses early. Examples of weaknesses include having high production costs, too much overhead, or a low marketing budget.

Opportunities serve as indicators of external areas where a business can grow or adapt to stay relevant to competition in the market, as well as ways in which a business can achieve objectives. Opportunities can range from producing and providing a new product due to high demand in the market, to recognizing and reacting to market trends ahead of time to increase profits and relevancy.

Threats are both current and potential challenges which a business is facing or may face in the future. External threats can include economic issues such as a depressed market or competitive issues like a rival producing a new product or starting a new marketing campaign. The key to identifying threats to a business is to create a plan to counterattack the problems, which will affect success and future growth.

A SWOT analysis is beneficial for businesses because it is a low-budget, quick way of brainstorming and strategic planning methods that will increase profits and achieve objectives. It also allows a business to use its strengths to combat its weaknesses if possible. Unfortunately, though, SWOT is most effective at a micro level rather than a macro level, so it is best for a business to use the analysis model with a specific objective in mind.

Overall, a SWOT analysis is an effective way for a business to react to and even eliminate profit losses, as well as efficiently achieve its objectives, by identifying internal and external factors within and around the business. Using the simple SWOT analysis structure can help a business quickly answer questions related to its present and future concerns by logically looking at the issues at hand to help brainstorm the appropriate solutions and strategic plans. Although it should not be used as a primary tool, it represents a helpful guide to make a business more productive.

The post How a SWOT can make your life easier appeared first on American Quality Management.

How ISO Certification Can Help Drive Your Business Goals

Fri, 15 May 2020 23:26:15 +0000

If you are facing the decision on ISO certification, you probably are wondering how it will affect your business goals. You may be facing this decision voluntarily or at the request of a potential customer. In either scenario, the outcomes for your business are very much the same.

Following are some key factors to consider on whether ISO certification will help drive your business goals.

Create and Promote Industry Best Practices
Like most companies, you try to do business in the most productive and efficient manner. Obtaining ISO certification provides you with access to predefined best practices for your business. Adhering to these across different areas such as health and safety, food handling safety, risk management, etc. gives you access to internationally recognized best practices.
Increase Customer Satisfaction
Working with a known list of industry standards such as ISO certification will provide a sense of security and clarity for your customers. They will be able to refer to standard reporting and metrics on subjects such as quality control, RMA procedures and HSE concerns.
Drive Business Profitability
Having a predefined set of metrics is key to improving your bottom line. Not only do you know ahead of time what Key Performance Indicators (KPI’s) to track, you know the range you should be in. Measuring these different KPI’s will help you drive productivity and create a universal playlist for everyone to go by.
Build Employee Engagement
Your employees like to know how they are doing and how they stack up to others. Once you’ve obtained ISO certification, you will be able to give every employee a job description detailing their specific roles, responsibilities and authorities. No more guesswork on who is responsible for what. Your employees will become more engaged as they now feel empowered to work inside of their job role while knowing what KPI’s drive their success.
Create New Opportunities
As we mentioned at the beginning of this article, you may be facing ISO certification as a request from a client. Obtaining this certification may help you land this contract and think of the future opportunities it opens your business too. Once you’ve obtained ISO certification, you will be able to include that in your bidding and company promotion. Very likely this will enable you to bid on contracts that previously you were unable to and you will begin to receive requests from customers who previously passed you by due to a lack of ISO certification.
Not Just for Big Companies
While the process for ISO certification may sound overwhelming and something only BIG companies do, it doesn’t need to be that way. Smaller businesses can also obtain ISO certification and adopt best practices to stand out in their field. Additionally, obtaining ISO certification as a small business is likely quite a bit simpler as there are less processes and then as your company grows, you are able to adjust your documentation to accommodate the business changes.

The post How ISO Certification Can Help Drive Your Business Goals appeared first on American Quality Management.

American Quality Management Recertifies for ISO 9001

Fri, 24 Apr 2020 16:46:13 +0000

American Quality Management Employee Receives Certificate of Appreciation

Fri, 21 Feb 2020 18:08:28 +0000

aqmauditing.com

Thu, 06 Feb 2020 00:38:08 +0000

Businesses Advised to Update Their Environmental Policy for 2020

Thu, 12 Dec 2019 18:43:12 +0000

How To Write A Proper EMS Policy

Mon, 04 Nov 2019 23:39:23 +0000

How To Write A Proper EMS Policy

Mon, 04 Nov 2019 23:37:02 +0000

A key factor in obtaining and maintaining ISO 14001 certification is your environmental policy. What are the factors you need to consider while crafting your policy? How do you ensure that top management understands it? Is it adequate for your organization? The answers to these questions will vary by company, depending on size and environmental impact but the following guidelines will help you define your environmental policy.

Why do I need an Environmental Policy?

The Environmental Management System (EMS) has mandatory requirements for your organization to have an environmental policy. Once your environmental policy is defined by senior management, it will provide key benefits to your organization, such as:

staying legal
provide information to employees about their role in environmental impact
lower liability by reducing incidents
provide improved monitoring tools
increase efficiency in processes
lower costs by conserving materials and energy

What should I include in my Environmental Policy?

Clause 5.2 of the ISO 14001 standard leaves some room for interpretation but does provide guidance on what your environmental policy should contain and what purpose it serves at your organization. How detailed do you need to be and what items are “must have’s” in your policy?

Your policy needs to be crafted for your organization. Avoid copy and paste. While you may want to review other organization’s EMS policy, you need to create yours specific to your needs. It stands to reason that the greater your environmental impact, the more detailed and focused your policy should be. Identify key impact areas and highlight them. If your organization produces large amounts of emissions, your policy should not focus on water-table impacts.

Include a commitment to continuous improvement. A key reason to implement a system such as ISO 14001 is to improve. Rather than just identifying your current way of doing things, including a commitment to continuous improvement in your environmental policy. Don’t get hung up on the details of how it will happen; rather, state the commitment to do it.

Identify objectives and targets. This will be a more detail section with application to specific departments and processes in your organization. Seek input from key individuals in each department and use that to create a working, useful approach. This is where it is easy to go astray. Don’t create unreachable expectations or goals, but include reasonable, actionable steps to improving your environmental impact.

Know and comply with relevant environmental legislation. While each organization is unique, there is very likely others who are facing similar environmental impacts as you. Seek them out and learn. Find and attend events appropriate to your organization and subscribe to industry news. These are all ways you can stay abreast of the changing legislative landscape and adjust your policy accordingly.

Prevent pollution. While this may seem extremely basic, it is important to include a commitment and actionable ways to reducing pollution. Exact details may not be required in the policy, but it should be something you can easily refer to during an audit.

How do I implement my Environmental Policy?

Something like an environmental policy is easy to be put on a shelf and forgotten about. While this may be tempting, don’t let it happen! You’ve started your journey on improvement, and you wouldn’t want to stop now.

Communicate. Communicate. Communicate. Each employee needs to understand what the environmental policy is, how their actions create environmental impact and what they can do to reduce that impact. Find a way to tie practical examples to negative environmental impact so that it is easier for your employees to remember.

Documented and audited. You can’t improve what you don’t measure. Identify the key performance indicators (KPI’s) for each department in your organization and measure them. Provide relevant and timely feedback to each department on movement, whether positive or negative.

Remember that your environmental policy should be as unique as your organization. While ISO 14001 provides the guidelines and framework for your EMS policy, it is up to you to make that policy as simple and meaningful as possible. Craft your environmental policy with care and use it as a badge of honor: your commitment to reducing your organization’s environmental impact.

The post How To Write A Proper EMS Policy appeared first on American Quality Management.

How The Internet Has Changed Manufacturing

Tue, 29 Oct 2019 23:41:23 +0000

How The Internet Has Changed Manufacturing

Tue, 29 Oct 2019 23:32:24 +0000

The term “Internet of Things”, also referred to as IoT, was coined by Kevin Ashton in 1999. This was merely one step on the long journey that has led to where we are today. Put simply, IoT refers to things, almost anything really, that can be connected to the internet and communicate. How has this hyper-connectivity changed manufacturing already and what does it mean for the future of quality management systems?

Current Implementation

Computer-aided design (CAD) has allowed for a shorter timeline for a concept to go from model to prototype to manufacturing. Now, we can have machines on the production line that are connected via IoT. This allows for designs to be sent straight to production from virtually anywhere in the world. Additionally, sensors are placed in and around the machine, providing instantaneous feedback to production speed, mishaps and environmental changes.

As you can connect the various machines together in your production floor, a higher level of learning becomes available. We already know that computers are better at processing huge amounts of data and analyzing trends and anomalies, so think of the powerful dashboards of information you can have at your fingertips. Prior to this, chokepoints and holdups may have seemed random; now, you will be able to visualize the impact that changes in one area will have in another, perhaps days later. This level of machine learning greatly increases the efficiency of your total production capability.

Future Implementation

As more and more devices and machines are IoT-capable, we will see a higher level of collaboration happening across supply chains. Imagine being able to know if a shipment is going to be delayed before you start the batch that will need some of those parts.

We will begin to see a massive shift in the workforce. As robots and AI begin to take over manufacturing jobs, the human element will not disappear; rather, it will shift to higher levels of expertise. The current positive economy has led to an increase of manufacturing jobs, but a shortage of workers already exists to fill these jobs. Technician and programmers will be come commonplace on the production floor, ensuring smooth operation of machines rather than doing repetitive physical tasks themselves, such as packing boxes or driving screws.

What Do You Need to Do?

This changing landscape affects more than just the manufacturing sector. As the skills gap widens, companies need to be prepared to train and invest internally to organically grow the next generation of workers. Schools need to be preparing for this future and shifting from the old ways of education. More focus on science, technology, engineering and mathematics (STEM) is needed to prepare the next generation for the changing landscape in the world of manufacturing.

A lot of unknowns still exist for manufacturing today. One thing is for sure, with the rapid progression of these changes in the manufacturing sector, the winners will be the ones who embrace the changes early and put their energy into preparing for the manufacturing of the future.

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How To Document Roles Under ISO 9001

Tue, 22 Oct 2019 23:41:27 +0000

How To Document Roles Under ISO 9001

Tue, 22 Oct 2019 23:30:13 +0000

As you implement your Quality Management System (QMS) under ISO 9001, you will discover that you need to document the roles and responsibilities of the QMS system. Top management must define the organizational structure, hierarchy, and lines of accountability/reporting. Human Resources personnel may assist with defining and communicating the appropriate role, duty, responsibility, and authority of each position and person.

Clause 5.3 of ISO 9001 is very specific on which QMS responsibilities and authorities need to be assigned by top management. Following is a list of key assignments:

Responsibility for QMS conformance – while this may be several people, at minimum one person needs to be identified as the one to ensure that the processes your organization is implementing comply with ISO 9001. An extremely important role as you plan your processes and implement them; this responsibility will also continue as you improve and maintain your QMS. Over time, elements may be removed that are essential to meeting ISO 9001 requirements, so it is a requirement to have at least one individual assigned the responsibility for QMS conformance.
Process conformance – this may seem to be related to the prior point but should be defined as a separate role. Once you’ve identified the process owners of your QMS, you can define Key Performance Indicators (KPI’s) that will provide a quick snapshot on whether the system is functioning as expected. Be sure to provide relevant and punctual feedback to any missed KPI’s.
QMS performance reporting – a requirement of the management review is to look at the performance of your QMS. Identify someone who will gather this information and provide reports on it. Provide reporting to your employees, so they know if their processes are doing well or not.
Promote customer focus – a proper customer focus is a key element of ISO 9001, so you need to have someone responsible for conveying the importance of this to everyone. How well this happens will affect customer satisfaction.
QMS integrity during change – while this point is connected to items 1 and 2, you need to have a separate responsibility identified to ensure any organizational or process changes do not make your QMS non-conformant to ISO 9001. Another key element of this responsibility is ensuring that you do not degrade or lose the intended purpose of a process in your QMS. Understanding the interconnectedness and impact of every QMS process is key.

How should you document QMS roles and responsibilities?

Now that you’ve identified your QMS roles and assigned them, you need to make sure you’ve communicated them in a way that can be understood. Some steps for doing that include the following:

Consolidated documentation – to comply with the requirements of your QMS, having a single document that lists the roles, responsibilities, authorities, and individuals responsible is needed. This will ensure that anyone who has a question knows who to contact for the specific piece of information.
Cross documentation – with every document you have for a process, include the appropriate role and responsibility. This will ensure that each person knows not only the function of their role but also responsibility and authority.
Training materials – it may be impractical to document every process, so you may decide to implement training documentation. This is a good way to share appropriate QMS roles and responsibilities while providing the necessary training for a job function.

The path to success

Now that you’ve identified the roles and responsibilities for your QMS, it is key that people know who to call. Providing this documentation will ensure that the proper questions are directed to the appropriate parties and set your organization on the path to success as planned with your newly implemented Quality Management System.

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Tips On Writing An AS9100D Quality Policy

Tue, 15 Oct 2019 23:50:48 +0000

An Overview Of Process Validation In AS9100

Tue, 15 Oct 2019 23:50:47 +0000

Tips On Writing An AS9100D Quality Policy

Tue, 15 Oct 2019 23:43:58 +0000

As you begin implementing your AS9100D Quality System, an initial step in this process is to write your company Quality Policy. While simple, it is important to make sure appropriate steps are taken to create an effective Quality Policy. To help you tackle this potentially overwhelming task, we’ve compiled a list of tips to get you started.

Identify Your Organizational Goal
Your Quality Policy should reflect your business goals. Once you’ve identified your goals, your managers and employees can use the Policy as a guide for business decisions. When faced with a decision on a project, the individual will be able to reference the Quality Policy and see if the outcome of the project aligns with the stated goal. If the answer is yes, they do match, then the individual knows to proceed. If the answer is no, then the individual will know to seek alternative action.
Identify Key Customer Requirements
Knowing your customer’s key requirements will help you drive a successful Quality Management System. Do you need to be tracking food handling standards? Is the customer concerned about timeliness? Are there legal requirements that you need to comply with? Have certain materials been approved or disapproved for use? Knowing the answers to these types of questions will give you direction for the standards in your Quality Policy.
Include Relevant ISO Requirements
There are some key requirements that you should be aware of. Your policy must be created for your organizational needs. Avoid copy and paste. Include a framework to set your quality objectives. This must include the way an objective is proposed, how it is approved and how it is reviewed. You must also include a commitment from top management to adhere to and fulfill the requirements of the policy. Once developed, the policy must be provided to everyone in the organization and to appropriate interested parties. Include your communication procedure in the policy and adhere to that. Finally, the Quality Policy must be maintained. Define someone to be the owner of the policy and they are responsible to be aware of all changes that may affect the policy, keeping it up to date and communicated.
Allow Internal Input
Your Quality Policy is a key element of your Quality Management System and it should be useful for every employee in their job. You also will want your employees to take ownership of the policy and asking for their input upfront is a great way to do so. They need to be able to see how the policy relates to their specific role and not just be another poster on the wall. They are also very likely to have relevant information about their specific area and how it affects key customer requirements that will help you create a manageable, impactful policy.
Communicate the Quality Policy
Now that you’ve created your organization-specific Quality Policy, it’s time to make sure everyone has access to it. The Policy should be simple and concise, easy to be remembered in times of pressure and decision. Communicating the policy to all will focus the organization toward meeting the requirements and goals that will help the company grow – the objective of any good Quality Management System.

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An Overview Of Process Validation In AS9100

Tue, 15 Oct 2019 23:29:36 +0000

As you implement your Quality Management System using ISO requirements for AS9100, you may be confused about the difference between design validation and design verification. Correctly understanding validation may be complicated, so what it is and how does it work?

ISO 9001:2015 standard Clause 8.5.1 on control of production and service provision has this to say: “the validation, and periodic revalidation, of the ability to achieve planned results of the processes for production and service provision, where the resulting output cannot be verified by subsequent monitoring or measurement.”

This means you need to validate processes where you are unable to effectively check a product or service’s compliance to standards without damaging the part. If you are building something to a certain standard of damage resistance, it is impractical to test each part to the point of breaking to verify that it was built correctly. Therefore, you must validate the production process to ensure the appropriate steps and measures were taken in production.

Process validation must represent how a process is occurring. If you try to validate in a manner different than how the process will be completed, you could run one order and find the results satisfactory while increasing the process to several hundred per day may not actually perform as expected.

A simple way for validation is to set up your production process in the manner you will normally use it and start an expected run of the production process. Use regular operators, standard tooling and equipment, typical environmental conditions and normal gauges. Now that you’ve shown a process can proceed under standard conditions and doesn’t require any special requirements or attention, you are able to determine that the process will do what you need it to do.

Additionally, this will identify if special skills or training is needed for a step in the process. Once identified, you will be able to create the necessary procedures for ensuring proper training is given to the operators and highlight any necessary certifications that are needed.

Process validation may seem complex, but proper use of it will save your company time and money. As your processes become more reliable, you will experience less emergencies and downtime due to broken equipment, improper builds or missing parts.

While AS9100 Rev D does not implicitly require every process to validated, it may be something your organization chooses to implement. Typically process validation is used in scenarios where the monitoring or measuring is not feasible or practical.

Proper, detailed documentation is required for your process validation protocol. While not specifically defined under AS9100 Rev D, you should refer to documentation standards as listed under Clause 4.4.2. Identify what documented information is needed to support your process validation and operations then ensure that it is written down and communicated to appropriate parties. You also need to create documentation standards for your validation results, to ensure confidence that the appropriate steps are being followed. You may also consider including the appropriate competency requirements and records to show that all appropriate actions were taken.

Using proper process validation procedures will not only benefit your organization, it will also give your customers confidence in your product, limiting the number of products that leave in nonconformance.

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Options in Monitoring Environmental Management Systems

Mon, 05 Nov 2018 17:49:18 +0000

Options in Monitoring Environmental Management Systems

Mon, 05 Nov 2018 17:09:46 +0000

Environmental standards have taken a front-row seat in discussions around supply chain and manufacturing. Some would argue that environmental impact has a larger place than quality control at this point in the realm of public opinion. Clients and customers can be won and lost simply based on the reputation a company has regarding its production and the environment.

How do you go about monitoring such an impactful piece of your business? While it may be simple to oversee your manufacturing, it can be a bit more challenging to monitor your entire supply chain. Here are several options available to monitor environmental management systems throughout your supply chain.

Eco-Management and Audit Scheme

EMAS certifications were created by the European Commission. It focuses on improving the interactions a company has with its environment. As opposed to some other standards, it goes above and beyond by focusing on long-term solutions and development of environmental responsibility.

The European Commission reports that EMAS certification results in benefits like increased efficiency savings, improved client and customer relationships, and reduced incidents. With aspects like employee involvement, legal compliance, and long-term improvement, EMAS is a viable way to ensure high environmental standards.

ISO 14000

Akin to ISO 9001, the wildly popular standard that evaluates quality management systems (QMS), the ISO 14000 does the same for environmental management systems (EMS). Suppliers holding certifications ISO 14001 or ISO 14006 represent standards of responsible production processes.

Suppliers having been audited to meet ISO 14001 tend to reap benefits such as reduction in waste and a positive marketing image. They are also far less likely to be shut down for pollution violations.

Many large-scale manufacturers use the ISO 14001 certification as their auditing tool for EMS amongst suppliers. They require the certification as a standard to ensure their suppliers are not in violation of pollution laws and are not contributing to harming the overall health of the environment.

Verification of Carbon Footprint

Regarding manufacturing, the carbon footprint is essentially the measurement of carbon dioxide (CO2) output during manufacturing, or in some cases during manufacturing and distribution. The carbon footprint verification has become important as we are now aware that CO2 is a major contributor to global warming.

A lower carbon footprint throughout the manufacturing process, including supply chain, ensures compliance with greenhouse gas reporting standards and compliance with the Kyoto Protocol.

A carbon footprint verification also goes a long way in convincing potential clients or customers of environmental responsibility and accountability.

Other Options in Monitoring EMS

Additionally, there are other certifications that can be used as a piece of an overall EMS monitoring standard. Recyclable content and biodegradability content certifications can add validity to an EMS. However, both standards can be difficult to verify and are subject to public perception.

Conclusion

Environmental Management Systems are a key cog in ensuring environmental health while maintaining manufacturing capabilities. Monitoring these systems throughout the supply chain is made possible through standards like EMAS, ISO 14000, and Carbon Footprint verification.

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Moving Toward 14001 Compliance with Outsourced Suppliers

Thu, 31 May 2018 21:41:16 +0000

Moving Toward 14001 Compliance with Outsourced Suppliers

Thu, 31 May 2018 20:38:41 +0000

Organizations operating EMSs (Environmental Management Systems) faced significant changes mandated by the release of the updated ISO 14001:2015 standard. The latest version of the standard set out significant requirements for how your organization handles outsourced suppliers and services, and some of those requirements aren’t obvious at first glance. The new standard’s language uses “outsourced suppliers” to refer to any and all third parties that have contracts to perform critical services or supply vital parts. These supplier organizations are usually operating outside your facilities, but this is not an actual requirement for the application of ISO 14001. Let’s look in greater depth at the new obligations imposed by ISO 14001:2015 and the actions you might have to take to keep your EMS compliant with the regulation.

Unpacking the Changes

In the barest terms, the relevant section of 14001:2015 obliges an organization to set environmental requirements for operational planning and control in all cases where they impact products and services. This seems very close to the way the older 14001:2004 standard treated outsourced suppliers, but there are significant changes to be found in the material contained in Appendix A. The appendix goes into much greater detail about the organization’s responsibility to exert control over external suppliers based on several different factors. Examples include technical competence, the criticality of the products and/or services being supplied, the ease of verifying compliance, and the way the organization’s ordinary purchasing process might address these supply needs normally. While Appendix A details several variations in control based on how these factors interact in specific cases, all cases share a common theme of responsibility. Your organization is always fully responsible for the environmental performance of any and all outsourced suppliers it engages in order to deliver products and/or services.

Nailing Down the Basics

Our last article on moving toward ISO 14001 compliance concentrated on the environmental benefits and organizational advantages offered by working with ISO 14001-certified suppliers. The ISO 14001:2015 standard does not alter the benefits available to your organization, but it obliges you to answer some additional questions:

How likely is it that your suppliers are capable of delivering on environmental performance indicators?
If you work with a non-certified supplier, do they have an environmental policy of their own? How does their environmental policy interact with your organization’s?
Do your suppliers fully understand the legislation that covers your product and the steps required to deliver it?
Do your suppliers perform internal audits? Are the results of audits available to your organization?
Can your suppliers show evidence of risk-based thinking and environmental impact mitigation?

What’s Next?

What can your organization do to unlock the full benefits of compliance with ISO 14001:2015 compliance among your suppliers? There are a few different steps you can take to verify your suppliers’ abilities to comply:

Mandate detailed and specific key performance indicators on which you need regular reports from your suppliers.
Encourage suppliers to put environmental criteria at the top of their priorities when making purchase decisions.
Request legislation logs from your suppliers to verify their understanding of and compliance with all relevant environmental legislation.
Request environmental risk identification, risk assessments, and suggestions for environmental improvements.
Require your suppliers to verify their commitment to properly recording and reporting environmental performance. Your suppliers need established policies for reporting and dealing with environmental emergencies and other incidents. Authority notification, containment, and mitigation all need to be addressed.

Your organization needs to have a formalized schedule for auditing and reviewing the environmental performance of your outsourced suppliers. This gives you the opportunity to assess that performance and take corrective action when and if it becomes necessary. Regular auditing is a simple and effective way of ensuring ISO 14001:2015 compliance among outsourced suppliers. All of your organization’s environmental expectations should be incorporated, in as much detail as possible, into the contracts you sign with outsourced suppliers.

Need Help?

If your organization has any questions about ISO 14001, contact us here American Quality Management to speak to a consultant today.

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ISO 9001 Consulting – QMS for Small Businesses

Wed, 02 May 2018 04:29:17 +0000

The Impact of Software on ISO 9001

Tue, 01 May 2018 23:45:40 +0000

Historically, one of the most common criticisms of ISO 9001 and barriers to its adoption has been its stringent documentation requirements. These are, admittedly, formidable. Yet the widespread use of software, specifically developed to manage documentation and other aspects of a Quality Management System (QMS), has largely put these concerns to rest.

The early days of ISO 9000 implementation generated stacks of three-ring binders filled with hard copies of QMS manuals. Master copies were likely stored electronically in directories and files that emulated a physical filing system. Any time a portion of the documentation was updated, fresh hard copies of the affected documents had to be distributed to replace the now-outdated sheets. As a result, changes were labor-intensive and presented multiple opportunities for human error.

The greatest impact of QMS software on ISO 9001 implementation has thus been document control. QMS software is, in essence, a database or electronic repository for an organization’s documents and records. With this database in place, the software can then perform various tasks which would otherwise require a human. These may include:

Intelligent Document Categorization and Retrieval: QMS software packages can keep track of various document attributes so that when a user needs a particular portion of documentation, the QMS software can instantaneously provide it.
Version Control: Nearly any QMS software will offer version control. All master files are stored in the software’s database. When anyone updates or changes a document, these changes themselves are identified and stored, usually along with a backup of the old version of the document. Changes propagate immediately to all users so that everyone is kept up-to-date. The software also prevents multiple users from making conflicting changes to any document.
Report Generation: Most versions of QMS software can automatically extract data from various documents to generate reports. Most QMS software comes with predefined report templates and usually allows users to define custom reports as well.
Assisted Document and Process Creation: Generic templates for documents and procedures packaged with QMS software allows the creator of a new document or procedure to focus on content rather than formatting, nomenclature, or compliance-related “busy-work.”
Automated Data Entry: Some QMS software packages are able to auto-populate forms with data extracted from internally-stored documents or from existing related forms. In some applications, software may also collect and record measurements from quality assurance instrumentation, production equipment, etc.

In recent years, more and more QMS software packages have also been offering cloud-based storage and synchronization, effectively removing any restraints imposed by large distances between users.

Beyond document control, QMS software often provides these additional valuable capabilities:

Smart notifications: Each person involved in a QMS can be assigned roles in the QMS software. The software can then generate timely notifications for events like calibrations, document reviews, audits, etc., and send these to the appropriate personnel.
Continual Improvement: QMS software may automatically generate and e-mail non-conformance reports and related data analysis summaries. It can then track corrective action afterward and send notifications, as needed, to ensure that issues are addressed.
Audit Assistance: Many types of QMS software have built-in modules to automate audit-related tasks and schedules.
Training: Some QMS software packages have integrated training tools to help personnel get up to speed as quickly as possible.

In short, the impact of software on ISO 9001 cannot be overstated; it has effectively removed the biggest hurdles to ISO 9001 adoption.

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Why it’s Important to Identify Risk in Business

Mon, 09 Apr 2018 20:05:26 +0000

Why it’s Important to Identify Risk in Business

Mon, 09 Apr 2018 19:33:05 +0000

No business is without risks, but the key to any business is understanding the importance of preventing, minimizing or eliminating risks whenever possible in order to prevent losses. After all, less risk should theoretically create more success for the business.

For any business, risk can be defined as an internal or external factor which may ultimately affect objectives by either lowering the projected profits or even causing a loss. Whether the risk is due to economic issues, financial rates, industry regulations, business costs, breaches in information or political influences, risks can cause a business to lose money or ultimately go under.

That’s where risk management comes in.

Risk management is important because it allows a business to control – and often times prevent – the financial, political, social and cultural ramifications associated with risks. Not only does risk management allow a business to identify potential risks ahead of time, it also allows a business to react accordingly and minimize or even prevent losses. Without identifying risks using risk management, a business cannot successfully define objectives. By minimizing or even eliminating risks, a business should see an increase in productivity by now wasting time and resources, as well as protection from any possible legal repercussions.

In order to enact risk management, a business must create a risk management plan. To create a plan, a business must first identify all external and internal risks, such as the examples noted above. Depending on if the risk is determined to be low, medium or high impact, the business can adjust its risk management plan accordingly and properly identify business objectives. Regardless of the risk level, the business must determine the potential impact the risk would have on its bottom line.

Next, the business needs to perform a risk analysis, which will determine how any potential risks would affect the business. By putting a numerical value on potential threats, the business can analyze the impact on costs, productions and other variables which may be deterred by risks.

After analyzing the potential risks, the business needs to figure out a course of action for how to control the risks. For the business, this will answer the questions of what it should do in the event of risks occurring, including how to prevent the risk and how to recover from it.

For the risk management plan to be useful for a business, the plan needs to clearly establish and define policies and procedures for staff members to easily follow and understand. This helps employees understand how their responsibilities and roles tie into the risk management plan. Having all employees on the same page also will ensure they respond adequately when necessary.

There is no guarantee which – or if any – risks will occur for a business, but the key is to be prepared for any possibilities and understand the importance of properly managing these potential risks. With the proper understanding of risk management and an effective risk management plan, a business can operate confidently in knowing that they are prepared for any and all potential circumstances that could negatively impact the bottom line.

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How an ISO Certification Can Help You Drive Sales

Thu, 29 Mar 2018 21:55:15 +0000

How an ISO Certification Can Help You Drive Sales

Thu, 29 Mar 2018 20:00:00 +0000

Whether you are running a small mom-and-pop shop, a startup company or a global corporation, obtaining ISO certification as a business can have countless benefits, ranging from saving the company money and employee time to improving efficiency and customer service.

ISO certification can create opportunities for businesses to branch out into new markets, as the certification may fulfill eligibility requirements for businesses to obtain certain types of contracts, such as with the government, that require companies to adhere to the ISO certification standards. Since ISO certification is recognized globally, it could potentially allow businesses to reach the international markets thanks to increased credibility and reliability compared to non-certified companies.

As manufacturing continues to spread globally, ISO certification provides verification to prospective clients that products were manufactured using a set of objective industry standards designed to encourage best practices, from quality assurance to standard safety practices.

Businesses should also look at ISO certification as a sort of indirect marketing technique with additional benefits, as certification shows potential customers that the business is concerned with the quality of their products and how they’re manufactured. Higher quality products can lead to more business, which can help vault a company’s success to the next level and blow past any competition who is not ISO certified.

From a customer perspective, ISO certification provides a peace of mind knowing the high standards the company they’re doing business with follows; customers can have confidence buying a product from a company with ISO certification because they know it will be a quality product. In theory, customer complaints should also reduce when adhering to the ISO certification standards, as the customer can know what level of quality to expect when doing business with a certified company.

While both business and customer are the obvious beneficiaries of ISO certification, employees who are manufacturing the products also reap the benefits as well. The ISO certification and set of standards provides a clear and consistent course of communication and universal processes for employees to follow, ultimately eliminating any internal confusion within a business. When all employees are on the same page, the business can expect a reduction in errors and stress on its workers, which may lead to less turnover and higher employee satisfaction.

Ultimately, ISO certification can improve experiences for businesses, customers and employees due to the standards followed, increase in product quality and production efficiencies, reduced number of customer complaints, and an easy-to-follow process and communication stream for employees producing the product. With ISO certification, all parties involved benefit.

As the importance of ISO certification continues to increase in the manufacturing industry, businesses without certification may soon find themselves on the outside looking in. With more companies obtaining certification and viewing it as a necessity, businesses without ISO certification will soon be left in the dark as they watch more clients flock to competition with higher standards of quality. So when asking whether or not a business should obtain ISO certification, the real question is why not?

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Tips on transitioning to ISO 9001

Mon, 19 Mar 2018 17:48:39 +0000

Tips on transitioning to ISO 9001

Mon, 19 Mar 2018 16:54:23 +0000

With the September 2018 deadline for the transition to ISO 9001:2015 approaching, companies are coming into the home stretch and are quickly running out of time to update their quality management systems.

The upcoming deadline also represents an end date for the validity of ISO 9001:2008 certification, which could leave some companies scrambling for answers to their quality management systems at the last minute; however, transitioning away from ISO 9001:2008 can be made easy by having the necessary background knowledge and using the tips listed below.

According to the International Organization for Standardization, the ISO 9001:2015 update offers several new benefits to users. Most notably, the new quality management system update now follows the High-Level Structure. This update should allow for easier use of multiple management systems since other platforms use this structure as well. Additionally, risk-based thinking also has a more prominent role with the update, at least more than previous versions. Ultimately, the ISO 9001:2015 update is expected to increase efficiency for users and overall customer satisfaction, enough of a reason alone for most companies to move forward with the quality management system update.

Before beginning the transition to ISO 9001:2015, the International Organization for Standardization recommends users begin the update process by first becoming familiar with the new ISO 9001:2015 document, which can be found on the organization’s website, www.iso.org. Familiarity with the update document can also clarify any questions or issues ahead of time to prevent less work on the back end during the transition.

Next, users will need to identify any gaps that need to be addressed to meet the new requirements. which will include aligning with the company on industry standards and making changes as necessary. (Standards within the industry can be found by visiting the International Organization for Standardization’s website and reviewing the “ISO 9001:2015 Quality Management Systems” requirements file.) These requirements also could be discussed with the company’s accredited certification body if available.

Users must then develop an implementation plan based on the specific needs of the company and assign responsibilities as necessary. This should be done analyzing the previously mentioned gaps and updating the individual company’s quality management system as needed. After, the company should perform an audit to analyze the new plan. In case any additional changes are needed after the audit, it’s recommended that the company leave extra time to make additional updates as needed. Companies should also create an in-house quality manual for reference.

A transition of this magnitude and importance can be intimidating, but users shouldn’t fret. The benefits that the transition to ISO 9001:2015 will offer companies will ultimately outweigh any laborious effort completed up front. With a well-structured plan of attack, the proper background information, and effective communication, making the switch to ISO 9001:2015 can become a seamless and stress-free transition for all users.

Image Credit Wikimedia

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What is a Surveillance Audit?

Tue, 13 Feb 2018 23:27:14 +0000

What is a Surveillance Audit?

Tue, 13 Feb 2018 22:50:51 +0000

After careful planning and diligent preparation, an organization is ready to achieve the goal of ISO certification. A certification body sends an auditor to verify that the organization’s management system is in place along with all necessary components: documentation, records, processes, etc. The auditor also compares how the main processes are functioning in practice with how they are described in the documentation. Upon verifying that nothing is missing and everything is working as it should, the auditor certifies the organization for a period of three years. Personnel who played key roles in achieving certification give one another a well-deserved pat on the back for reaching this key milestone.

At this point, the organization must resist a tendency to relax because, over the next three years, the certification body will be conducting a different kind of audit at regular intervals: a surveillance audit.

As the purpose of the certification audit was to verify that the organization initially qualified to become certified, subsequent surveillance audits will verify that the organization continues to be qualified to remain certified. By certifying an organization, the certification body is guaranteeing that the organization’s management systems will remain in place and continue to function during the entire three-year certified period. Thus, the certification body is actually obligated to check in at regular intervals, typically annually. If an organization becomes certified in January, for example, it can usually expect a surveillance audit each January for the next two years. After the third year, a recertification audit, instead of a surveillance audit, will be conducted, since the organization’s certification will then have expired.

The initial certification audit is limited in its ability to meaningfully evaluate how well a management system’s processes are working. These processes are new, perhaps only weeks old, and thus do not offer much useful data. The certification audit also has a broad focus, as auditors examine the documentation and implementation of each process of a given management system to verify compliance. This comprehensive approach leaves nothing out but also gives little emphasis to any particular process.

A surveillance audit provides an opportunity to focus more closely on results. Do the processes actually work, or not? At least a year’s worth of data is now available to give a much clearer picture. The surveillance audit will dig for answers to the following questions:

Is the management system still operational and effective?
Is compliance with the standard still being maintained?
Is continual improvement being achieved?
If the certification audit revealed any areas of concern, what is their status now?

To answer these questions, the surveillance auditor has the flexibility to focus on those portions of the management system that are most telling.

Internal audits are the obvious tool to prepare for a surveillance audit. An internal audit should make it readily apparent whether or not a management system is still operating effectively, as well as verify that it continues to conform to its ISO standard. The internal audit can also identify improvement initiatives and their supporting documentation. And an internal audit should reference any areas of concern from the initial certification audit to make sure that these have been properly addressed.

As surveillance audits demonstrate, achieving ISO certification is merely the beginning of a long-term project. While this will require ongoing work, it also helps to ensure that an organization continues to realize the benefits of its management system.

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How Can Startups Benefit from ISO 14001?

Wed, 27 Dec 2017 21:37:26 +0000

How Can Startups Benefit from ISO 14001?

Wed, 27 Dec 2017 19:41:19 +0000

Anyone who has ever been involved in a startup knows first-hand what a demanding endeavor it is. Everyone puts in extra hours and handles a wide variety of responsibilities, often on a minimal budget and an ambitious schedule. Members may acknowledge the importance of environmental standards, like ISO 14001, but likely no one wants to add a non-mandatory Environmental Management System (EMS) to their already long list of pressing to-dos. Entrepreneurs may feel that once the company gets on its feet and the dust settles, then there will be time to look into environmental concerns. While this view is understandable, adopting ISO 14001 from the outset offers several distinct advantages to any startup that its management should consider.

The ISO 14001 standard is designed to benefit both the environment and the organizations that adopt it. The following four benefits are of particular significance to startups:

Establishing Effective Processes

Many startups have few or no formally documented processes in place. As they grow, this lack becomes evident as the organization begins losing time and resources to inefficient, inconsistent methods. The ISO 14001 standard uses the “Plan, Do, Check, Act” model. While this model is tailored to an EMS under ISO 14001, an organization may easily adapt it to a wide variety of other processes and management systems. Additionally, meshing the EMS with other processes can improve them as well. For example, while establishing a purchasing process, the company may include relevant environmental criteria, such as the life cycles of products considered. Such an approach will start saving time and money, the two commodities ever in short supply for a startup, from the beginning.

Cost Savings

While cost savings are, of course, important to any organization, to a startup, they can be crucial. ISO 14001 is well-known to offer cost reductions that go hand-in-hand with environmental responsibility. Utility bills, delivery charges, the price of raw materials and packaging, even travel, are all expenses which an effective EMS can help to reduce. The earlier an organization adopts ISO 14001, the earlier they can begin realizing these savings.

Reputation and Image

Startups are at a disadvantage in comparison with organizations that have already established a positive reputation and image. Startups are blanks slates. When competing to secure a contract, an established reputation often tips the scales in favor of the organization with a longer history. Adopting ISO 14001 can help a startup to level the playing field. Environmental responsibility is a great boost to a company’s image, and an ISO 14001-certified EMS demonstrates to potential clients that an organization is well-organized, efficient, and worthy of their trust.

Setting Strategic Goals

The latest revision of ISO 14001 (2015) gives added emphasis to aligning the goals of an EMS with the strategic goals of the organization as a whole. Many of an organization’s strategic goals are determined for the first time during the startup phase. Hence, by developing both company goals and environmental goals in tandem, a startup positions itself to move forward in a well-defined and productive manner.

Adopting ISO 14001 is an investment for any organization. When an organization invests at its startup stage, this investment begins producing dividends earlier and the return is greater.

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How to Get Ready for an Internal Audit

Thu, 07 Dec 2017 01:57:18 +0000

How to Get Ready for an Internal Audit

Thu, 07 Dec 2017 00:20:15 +0000

In many organizations, audits have a negative connotation. Some view them as box-checking busy-work, while others fear that the auditor is trying to ‘catch’ them in some form of non-compliance. In reality, an ISO 14001 internal audit presents a genuine opportunity for improvement. The maximum benefit can be realized with proper preparation.

Establish a Schedule

One simple aid in effective internal audit preparation is a regular audit schedule. Clearly define the interval for auditing each process of your Environmental Management System (EMS). Audits scheduled on a cyclical basis will be easiest to maintain. It is generally best to avoid bunching audits together, as this can disrupt other workflow and degrade the quality of the audits performed. Chose an audit cycle length appropriate to each system; more critical systems may need to be audited more frequently. Make sure that audit schedules are readily available to employees and management so that all have adequate time to prepare.

Make a Plan

With all parties involved well aware of upcoming audits, the next step in preparation is to come up with an effective plan. The overall auditing procedure will progress much more efficiently if both the person performing the audit and the person in charge of the particular process being audited collaborate in the planning.
The most important part of audit planning is a detailed review of the process that will be examined. The purpose of the internal audit is, in essence, to see how well the process is performing when compared against its planned environmental aspects. The goal, then, is to achieve a clear, practical understanding of these environmental aspects. Here again, collaboration with the person in charge of the process is beneficial and constructive, since he or she is best qualified to communicate these accurately. With this understanding now established, identify the type of data that will most meaningfully demonstrate the relationship between plan and practice. Finally, draft an audit plan that will effectively capture this data.

Evaluate Your Plan

ISO 9001:2011 provides guidelines for conducting internal audits. Evaluating your audit plan against these guidelines will shine a light on any gaps that exist between the two. Adjusting your plan to bridge these gaps will ensure that your internal audit also leaves your organization well prepared for external audits when they arise.

Stay Focused

When preparing a plan for an internal audit, keep the purpose of the audit in mind. The primary purpose of an internal audit is to confirm or improve the effectiveness of the processes of an EMS. Granted, internal audits are also used to declare compliance to external entities, and thus an internal audit is useful in identifying shortcomings. But resist the common mistake of getting sidetracked by focusing entirely on the minutia of standards compliance. This will distract you from identifying opportunities to improve in implementing your EMS. Through effective preparation, internal audits will actively help your organization to reduce waste, limit environmental impact, and improve efficiency.

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The Advantages of Working with an Environmental Consultant for ISO 14001:2015

Sun, 12 Nov 2017 22:37:15 +0000

The Advantages of Working with an Environmental Consultant for ISO 14001:2015

Sun, 12 Nov 2017 22:06:06 +0000

The 2015 revision to ISO 14001 goes more than skin-deep. The updated requirements are new on a fundamental level. For companies wanting to stay current with their ISO 14001 compliance, this means putting significant changes into effect. This is a situation where it’s worth it to bring in an expert.

Of course, auditing bodies can be helpful in transitioning to ISO 14001:2015, and their importance should not be overlooked. But for organizations that want to truly reap the greatest possible benefits from their EMS, an environmental consultant can produce the best results. A competent consultant is better positioned to approach an EMS with the organization’s interests as top priority.

A Revised System of Compliance

The most fundamental shift in the revised standard is the emphasis placed on lived processes. In the past, an HSCE manager could demonstrate compliance with ISO 14001:2015 largely by simply producing a lot of paperwork documenting a company’s EMS and its adherence to this system. This is no longer adequate. Organizations now must show the implementation of their EMS on a day to day basis.

Under older, paper-based versions of the ISO 14001 standard, a company might rely on an auditing consultant from time to time to come in and adjust its compliance documentation to meet whatever the newest iteration of the standard required. While this may have been sufficient for past, minor revisions to the standard, it’s simply not adequate for the transition to ISO14001:2015.

Take a Proactive Approach

This change logically demands a more proactive approach to compliance, which an environmental consultant can provide. Companies can no longer scramble to produce compliance documentation at the last minute before an audit. Their processes and must be in place and operational well ahead of time. An environmental consultant, collaborating with company management, can work to get these processes up and running long before any audit looms on the horizon.

Knowledge is Power

Such a proactive approach necessitates more active involvement from management. In many organizations, some members of management may have avoided involvement with environmental projects in the past. These will now need also to play a role.

This means training. And here again, an environmental consultant can fill the need. By identifying which individuals need training and determining what skills or knowledge is lacking, the consultant can deliver customized training, where it’s needed, as it’s needed.

Conclusion

Granted, ISO 14001:2015 may seem more challenging than past iterations, and the transition will indeed require work. But the new standard is also an opportunity for greater reduction in waste and environmental risk as well as an increase in efficiency. An environmental consultant is key to helping your organization make the most of this opportunity.

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A Brief History of ISO Standards

Thu, 26 Oct 2017 23:54:49 +0000

A Brief History of ISO Standards

Thu, 26 Oct 2017 23:08:02 +0000

When parameters and standards are not clear, it can be difficult for countries and businesses to work with each other to determine what is fair. When it comes to standards and setting standards, the more guidelines there are to follow, the more transparent, reliable, and measurable products, services, and experiences can be. ISO, which is a derivative of the Greek word “isos” and means “equal,” was first established in 1926 as the International Federation of the National Standardizing Associations. It later became the ISO (International Organization for Standardization) that we know today in 1947, but the acronym ISO is not commonly used because of translation issues and misnaming.

Organizations come to follow ISO standards on a voluntary basis. Countries from all over the world have their own way of classifying standards, but they are equal to those of other countries around the world. Each country has a committee that oversees the standardization process and ensures compliance for any organization that comes into the programs.

In order for something to become “standard” a committee must vote on what is important, what needs to be considered and included, and what can be left out. This process includes six stages involving proposal, preparatory, committee, and Draft International Standards. From there, the inquiry stage requires 75% consensus on the standard to move on to the Final Draft International Standards, where it will need 75% approval ratings to move to publication.

Under this system, over 21,000 standards have been approved and published around the world and in 162 countries. There are about 130 people who work at ISO on a full-time basis at the headquarters in Geneva, Switzerland. The first standard wasn’t published until 1951, and it focused on standard reference temperature for geometrical product specification and verification.

The ISO Journal, which was first published in 1952 informed of new standards and committees that are working toward standardization around the world. Since its inception, ISO committees have worked with developing countries to provide support and standardization for goods and services.

If an organization wants to become ISO certified in their country of origin, they will need to work with a third party provider who is licensed to oversee a certification. Although ISO does create and oversee standards, they do not actually provide certification services. Organizations should work with certifying bodies that are accredited and follow CASCO standards.

Interestingly enough, ISO has many complaints about organizations misusing or misrepresenting certifications around the world. This is due to a lack of understanding on the certified organization’s part as to what needs to be displayed and how it should be displayed. Many organizations, from lawn care to health care, opt for ISO certification because it helps them create and maintain standards that are seen as credible and reliable to customers.

image credit: wikimedia

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Overcoming the Hurdles of ISO 14001 Implementation

Tue, 17 Oct 2017 19:47:04 +0000