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I have been appointed as a Management Representative from Managing Director Sime Darby Industrial for ISO 9001. For this year plan, management decided to extend our scope to subsidiaries company which is to be certified ISO also. Therefore, I have to ensure subsidiaries company to be certified latest by 2017. To do that, I have to come out with the action plan how to implement the ISO.

Sime Darby Industrial Division is world's fifth largest Caterpillar dealer, with Caterpillar dealerships across more than 100 branches in 10 countries throughout the Asia Pacific region.

As a business entity, Sime Darby Industrial is capable of offering a comprehensive variety of equipment and services, from sales of new machines, engines or used equipment to rental and providing the full range of product support and financing services.

Sime Darby Industrial Sdn. Bhd. operates the Caterpillar heavy equipment business under the Tractors Malaysia dealership a leading brand for marketing of premium heavy equipment in Malaysia. Its partnership with Caterpillar, one of the world's leading brands, goes back more than 80 years. Tractors Malaysia is the exclusive distributor of Caterpillar products and services in Malaysia and Brunei.

In addition to Caterpillar, Sime Darby Industrial Sdn Bhd, also distributes leading brands like Case New Holland and Kubota agricultural tractors, Terberg terminal tractors, Jacobsen turf care equipment, GE PII Pipeline Solutions, Perkins engines and Omega container handlers.

Customers can tap on the knowledge and experience of Tractors Malaysia branches across a nationwide network of 23 branches, and 4 depots and 7 Cat Rental stores. Its leadership position today is the result of a highly customer-focused tradition of delivering quality products and after sales support.

The Scope of registration in the ISO 9001 is Packaging, Servicing and Maintenance and Repair of Heavy Equipment and Engines.

1.0 Literature Review on ISO 9001

• History of ISO 9000 development, implementation in Malaysia, issues, benefits and obstacles

International Organization for Standardization (ISO) is the world's largest non-profit organization to develop and publish international management system standards on various subjects such as ISO 9001:2008 (Requirements for a QMS), ISO 14001:2004 (Requirements for an Environment Management System), Food safety standard ISO 22000:2005, Information Security Management Standard (ISO 27001:2005), etc.  ISO were founded in 1947, and since then it's have published more than 21000 International Standards covering almost all aspects of technology and business. ISO (International Organization for Standardization) is a network of standards institutes from 159 countries with a central office in Geneva, Switzerland, that coordinates the system.

West et al. (2000) indicate that The International Organization for Standardization (ISO) was created at Geneva in 1947 to provide standardization of technical specifications for products traded in the international marketplace. Levitt (2005) mentions that the acronym "ISO" is derived from the Greek word "isos" which means "equal"

During World War II, there were quality problems in many British explosive industries, where bombs were exploding in factories during assembly. The solution adopted to address these quality problems I 43Global Journal of Management and Business Research Volume XI Issue Version I 2011 © 2011 Global Journals Inc. (US) Septem ber IX This study will be useful for all the organizations, regardless of their scale (Small / Medium / Large), scope of work & location of work, to evaluate the system effectiveness and identify the areas for improving the overall QMS performance.

In 1987, the British Government persuaded the International Organization for Standardization (ISO) having member countries more than 180, to adopt BS 5750 as an international standard. The international standard was named ISO 9000 series. ISO 9000:1987 had the same structure as the British Standard BS 5750, with three models for quality management systems, the selection of which was based on the scope of activities of the organization ISO 9000:1994 emphasized quality assurance via preventive actions, instead of just checking final product, and continued to require evidence of compliance with documented procedures. ISO 9001:2000 combined the three standards 9001, 9002, and 9003 into one, called 9001. Design and development procedures are required only if a company engages in the creation of new products. The 2000 version sought to make a radical change in thinking by placing the concept of process management front and centre ("Process management" was the monitoring and optimizing of a company's tasks and activities, instead of just inspecting the final product). The new ISO 9001:2008 was published on 15 November 2008. ISO 9001:2008 uses the same numbering system as ISO 9001:2000 to organize the standard. As a result, the new ISO 9001:2008 standard looks very much like the 9001:2000. No new requirements have been added. However, some important clarifications and modifications have been made like defining the scope of control on outsourced processes, validation of software, effectiveness of corrective/preventive action, control of external documents, etc.

The ISO 9000 standards are a set of international quality management system standards and guidelines. The term ISO9000 refers to a group of quality management standards which are process standards (not product standards). ISO 9001 quality systems do not give us the quality and they never will. ISO9001 is not designed to create quality. Quality is an experience of the customer. Product quality perception comes from the design specifications and manufacture standards achieved. Service quality perception comes from the service process design and the customer contact impressions. ISO 9001 is just a shelf to store our documents.

The quality movement in Malaysia started as early as 1995 when the Government decided to adopt and implement the International Organization for Standardization Standards (ISO 9000). At that time the Manpower and Planning Unit (MAMPU), prepared a set of guidelines for the implementation of Malaysian Standard International Organization for Standardization Standards (MS ISO 9001:2000). In 2002, the Prime Minister's Department called upon the public sectors to adopt a quality management system (QMS) using the MS ISO 9001:2000. SIRIM was identified as the formal accreditation body to confer the certification. The ISO standards were created to establish quality system benchmarks that can be applied and accepted internationally by producers and consumers of products and service.

Below is the graph showing the number of companies certified for ISO in Malaysia from 1999 to 2014.

*Data from the ISO Survey on Management System Standards Certification,

From this graph, it shows that companies in Malaysia are well decided  to implement ISO 9000 quality management approaches and obtain ISO 9001 registration because it assures customers that the company has a good Quality Management System (QMS) in place. Companies that use inputs from customers and suppliers often see the largest gains in overall value from ISO 9001:2008 certification. While it may seem obvious, many certification efforts are undermined by the lack of priority given to them among the company's daily activities. By realizing why ISO 9001 certification can contribute directly to profits, much faster and more complete results can be obtained.  

When ISO 9001 is implemented in an organization, it will increased customer confidence and employee morale, staff will have a common, logical system with consistent and repeatable processes for consistently getting things right, through the enhanced system organisation will have a clearer understanding of what each person needs to do and how, which means we do not have to waste time memory testing, and searching for information, Certification enables organisation to tender potential new customers and increase business. This is possible as the certificate gives them confidence in your business, the team are able to speedily respond if things go wrong and agree a course of corrective action to prevent risk of a more serious outcome and as problems are recorded as a result of the system, the team has the ability to collectively consider actions to correct and prevent recurrence. Should another problem arise there is a processes in place that the team can use to identify and resolve the problem more speedily.

The challenge faced by both public and private organizations in Malaysia in implementing ISO 9000 are very much identical to the problems faced elsewhere in the world. Challenges facing implementation of ISO is ignorance where by some don't see relay the need of implementation they value it as a waste of organizations resources. There is also a big challenge especially in the cost involved in implementation and maintenance of ISO, without those funds it is difficult to implement it. There is also a challenge in that some organization lack knowledge on the importance of ISO and therefore cannot implement something they don't know what it is and who will operate it and how it will be operated.

Even though more than a million organizations have been certified to ISO QMS 9001 standard till date, there were certain common problems faced by majority of these certified organizations, which influences their business performance. These problems are broadly classified into three categories as Leadership related issues (Inadequate Commitment by Top Management, Lack of Motivation, Recognition, generic system, internal audit not in depth, non-value adding meetings/trainings & excessive paperwork) and Society oriented gaps (Corporate Social Responsibility, Environmental Management &Sustainability). When an organization carefully eliminates these above mentioned gaps, it can be sure of the whole business model to be effective with value added processes, methods, systems and efficient resources contributing for continual improvements and towards business excellence.

On the other hand, changes in the ISO 9000 version can also be considered as a complication in implementing ISO 9000 in the organizations. The change of versions will undoubtedly cause the requirements for ISO 9000 certification to change accordingly, and this in turn will necessitate the employees involved in a certain implementation process to modify and revise their activities to suit the new requirements.

3.0 ISO 9001 Implementation Plan

• Details step by step ISO 9001implementation

Step 1: Ensure Commitment from Top

While most decisions to seek ISO 9001 certification come from the company's top managers, gaining the true value from the program needs much more of their support. Top management needs to demonstrate a commitment and determination to implement the QMS by establishing a quality policy and quality objective. These will be the driver that pulls everything together towards achieving common goals for all the activities under the scope of registration.

Top management needs to:

1. Establish a steering committee and various task forces

2. Appoint a quality management representative (QMR) and document controller

3. Ensure responsibilities and authorities are defined

4. Monitor the performance of QMS and any need for improvement

5. Motivate the staff

6. Provide the necessary resources such as training facilities and meeting rooms.

The chief executive officer, managing director or head of the organization should lead the steering committee. The QMR is responsible for the overall coordination of QMS implementation within the organization.

Step 2: Create Awareness and Develop Staff Competency

The QMR together with human resource department, shall identify and plan the relevant training for the employees and management of the organization. Some of the relevant training programmes that we need to send employee to attend are as follows:

1. QMS awareness

2. Understanding ISO 9001: 2008

3. Documenting QMS

4. Internal Auditing

5. Problem solving, data analysis and quality improvement tools

6. Procedures and working instructions

To ensure the sustainability of ISO 9001 implementation, the QMR should be well trained in ISO 9001 requirements and auditing process.

Step 3: Prepare an Action Plan

To develop a road map that leads us towards the certification of quality management system. QMR is responsible for the preparation of the implementation plan based on input from various parties.

Step 4: Develop QMS Documentation

ISO 9001 is very much associated with a documented quality management system. It is mandatory that we need to develop the necessary documentation as required by the standard. Some of the important aspects of implementation include the following:

1. Scope of the Certification

2. Quality Policy and Quality Objective

3. Process Map

4. Quality Plan

5. Procedures Required by Standard and Organisation

6. Supporting Documents (working instruction, forms and external documents)

Step 5: Commence Implementation

Below are activities involved in the implementation process:

1. Implement as per QMS documents- All the process owners are responsible for putting into practice what has been planned. Evidence of implementation of activities against the plan is necessary. This will later be used to indicate the suitability and effectiveness of the QMS. Make changes to the documents as necessary

2. Evaluate the effectiveness of the QMS

Based on the evidence of implementation, we need to evaluate the effectiveness of the QMS. Are we able to get what we want from the system in terms of control of the activities? Is the QMS giving the desired outputs that contribute to the desired outcomes?

3. Analyse the data

To sort and summarise the date that we have collected during implementation. This information will be used to identify opportunities for improvement and in making other important decisions to facilitate further improvements.

4. Measure Customer Satisfaction

To monitor closely the perception of the customer on how well organization has met customer requirements.

5. Encourage Continual Improvement Activities

Encourage staff to be involved in quality management activities through 5S, QCC, Kaizen and 6 Sigma.

6. Motivate the staff

Instill the confidence of both management and staff in the merits of implementing the QMS

Step 6: Conduct Internal Audit

Internal audit is a very important component in the implementation QMS in the organization. It gives the opportunity to evaluate the level of compliance with the planned arrangements, which is the QMS that we developed, documented and implemented. An internal audit report highlights the overall achievements of the QMS and how well it conforms to the requirements of ISO 9001. The report also identifies areas of concern and non-conformance that exist in the system as well as opportunities for improvement.

Step 7: Perform Corrective Action and Improvement

We need to take corrective action to fix any problems highlighted by the auditing processes or arising from any aspect of the process or the documented procedures. You may take preventive action for any observation highlighted by the auditing process.

Step 8: Conduct Management Review

Management review is looked at as evidence of management commitment. It is a platform for the management to ensure the continuing suitability, adequacy and effectiveness of the QMS. It also assesses opportunities for improvement and the need for changes to the QMS, including the quality policy and objectives.

Step 9: Undergo Registration and Certification

Once completed the PDCA cycle in QMS, organization is now ready to be audited. Contact the certification body of your choice and follow their certification procedure. Normally, certification body require to have at least 3 months implementation records before the audit takes place.

• Roles of QMR

Management Representative is a cross-functional role involving project management, administrative, and business development tasks.

The ISO 9001:2008 standard allocates three duties:

• ensure Quality Management System processes are “established, implemented and maintained”,

• report to “top management” on the QMS performance and where improvements are needed,

• ensure that everyone in the organisation is aware of customer requirements.

The Management Representative (MR) is the key coordinator for the development of the quality system and, once the system has been certified, assumes responsibility for on-going system maintenance and effectiveness of operation. MR will liase with the Certification body for third party audit and ISO 9001 certification purpose.

Ongoing duties include reporting on how well the QMS is working and where it is not. The types of information to be reported will include things listed under Management Review (e.g. audit findings, customer feedback, suppliers, data establishing process trends = 'KPI's). The actual data collection and analysis may well be done by someone else, e.g. the process owner.

The new standard ISO 9001: 2015 have removed any reference to a “Management Representative”. Instead, some duties are assigned directly to top management and others can be delegated (although Top Management is still held accountable). The new ISO 9001 expects top management to adopt a more proactive approach to quality management. In the future, top management is to take more accountability for the effectiveness of the quality management system. In other words, top management not only needs to provide the resources necessary for a functioning quality management system (QMS), but must also ensure QMS effectiveness and efficiency.


ISO 9001 is a standard that sets out the requirements for a quality management system. It helps businesses and organizations to be more efficient and improve customer satisfaction. This standard is applicable to any organisation – irrespective of their size or geographical location. One of the major strengths of ISO 9001 is its wider appeal for all types of organisation. This standard offers a quality management system (QMS) model for obtaining and meeting customer requirements and enhancing its satisfaction. It is general and appropriate for all types of organisations. Therefore, organisations from both the public and private sectors, including non-governmental organizations can benefit from the ISO 9001 quality management system model; despite being small, medium or large organisations.

Many organizations decide to Implement ISO 9000 quality management approaches and obtain ISO 9001 registration because it assures customers that the company has a good Quality Management System (QMS) in place. Many organizations require their suppliers to have ISO9001 Registration. The concept of executing an ISO 9000 quality process allows companies to have access to a wider market for their products, particularly in the international arena, but also within their own countries. But that is just part of the reason why ISO 9001 is increasingly in demand. Other organizations implement an ISO 9001 QMS under the many related ISO 9000 quality standards because it has proven over the years that it leads companies to better operations, improved performance, and improved profitability

When organization, decided to implement the ISO 9000 quality management, the organization should identify what barriers or challenges are likely to occur in order to sufficiently prepare themselves for an implementation of ISO 9001. This will further determine whether an implementation will go smoothly or if changes are needed to avoid future problems. Furthermore, if the organization is determined to implement ISO 9001, it is recommend that the barriers identified in this study regarding ISO 9001 are critically reviewed so to see if these may occur and how they can be overcome or avoided. By taking these measures, the adopting organization can determine what barriers might occur and how these can be avoided or overcome. The next step is to establish what needs to be done so that the organization is ready and properly prepared to implement the QMS. Also part of this stage is the proper allocation of resources and time to those parts of the organization, which needs it the most. Thinking that the problems identified can be easily solved may cause a serious setback in terms of time and significantly added costs that could be avoided. An example is the problem within our case organization and their departmental barriers, which should be given the time necessary to minimize the barrier. As it is one of their biggest problems, time and effort must be allocated to eliminate this problem.

However, to succeed the implementation of ISO in the organization it requires a lot of motivation, support and involvement from the very top management and also the employees. Without the involvement of the employees and commitment from top management, the initiative will definitely fail after some time. The top management must take the lead and show by example and they should always encourage and motivate staff to be involved in the improvements activities and recognize their contributions. The organization need to train their employees again and again with regard to QMS requirements, auditing process and improvement tools and techniques.

Finally, the organization need to always think that whatever system they have developed is still not good enough and they should never be satisfied with the status quo and encourage employee and management to think forward and demand innovative and creative solutions


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