Organizational Mastery with Integrated Management Systems: Controlling the Dragon (Wiley-Interscience) - Hardcover

Noble, Michael T.

Hardcover

ISBN 10: 0471389285 ISBN 13: 9780471389286

Publisher: Wiley-Interscience, 2000

Synopsis

Learn to Implement an Effective, Coherent Management System with Quality and EH&S Tools How would you like to streamline health and safety and environmental programs into the everyday operations of your organization? Reduce rework, breakage, and worker's compensation claims while increasing productivity, efficiency, and profitability? In Organizational Mastery with Integrated Management Systems, Michael Noble answers these questions and much more. Presenting an integrated, no-nonsense approach to process risk management, Noble guides you through all the steps necessary to establish a quality management system that incorporates environmental health and safety (EH&S) concerns. He brings together ideas from both Quality and EH&S, providing a wealth of proven techniques that can be easily tailored to your specific organizational needs. Useful checklists, guidelines, process flowcharts, and risk analysis methods are included along with appendices containing management and technical audits you can use to develop your own audit tool. You'll learn to:
* Develop effective strategies for assessing, managing, and mitigating risks
* Make audits a simple extension of well-run operations and processes
* Integrate ISO 9000, ISO 14000, and OHSA's 18000 systems
* Choose from the best-of-the-best of TQM, Deming, and Crosby
* Identify and correct "Multiple Root Causes" of accidents or process failure
* Enhance process improvement through employee/customer satisfaction
* And much more

About this title

About the Author

MICHAEL T. NOBLE is Director of Consulting Services for Liberty International Risk Services in Boston. With over two decades in environmental health and safety risk management, he has taught at Southern Illinois University, California State University, and the University of California, and has developed course and technical materials for such clients as the Department of Labor (OSHA) and the Naval Shipyards.

Excerpt. © Reprinted by permission. All rights reserved.

Organizational Mastery with Integrated Management Systems

Controlling the DragonBy Michael T. Noble

John Wiley & Sons

Copyright © 2000 John Wiley & Sons, Inc.
All right reserved.
ISBN: 978-0-471-38928-6

Contents

Forewords..............................................................................................................................................................xiJoe Cascio, Global Environment & Technology Foundation; Chair, U.S. Technical Advisory Group for ISO 14000.............................................................xiiSteve Levine, Ph.D., CIH, University of Michigan, President-Elect of AIHA..............................................................................................xiiiKathy A. Seabrook, CSP, RSP (UK), President, Global Solutions, Inc., Vice President, Practices and Standards, American Society of Safety Engineers.....................xiiiFrank Mastrioanni, SrVP, Marsh, Inc....................................................................................................................................xivRobert C. Wilson, President of IQuES, a leading ANSI-RAB accredited ISO 14000 training and consulting company..........................................................xivVic Johnson, Senior Vice President, Harding Lawson Associates..........................................................................................................xivJames D. Griffin, MPH, CIH, Manager, World Wide Facilities, General Motors Corporation.................................................................................xvMark Kline, Regional Well-Being Manager, IBM Corp......................................................................................................................xviHuw Andrews, Bsc(Hons), FIOSH RSP, Director, Health, Safety, and Environment, EEF South, United Kingdom................................................................xviAbout the Author.......................................................................................................................................................xviiAcknowledgements.......................................................................................................................................................xixIntroduction...........................................................................................................................................................xxiChapter 1 Controlling the Dragon - The Integration of Management Systems..........................................................................................1Chapter 2 Building Safer, More Productive Jobs!...................................................................................................................27Chapter 3 Management Commitment: Policy and Planning..............................................................................................................44Chapter 4 Plan Implementation.....................................................................................................................................57Chapter 5 Risk Assessment Process.................................................................................................................................80Chapter 6 Risk and Operational Control............................................................................................................................113Chapter 7 Measurement and Evaluation..............................................................................................................................133Chapter 8 Nonconformance and Incident Investigation...............................................................................................................187Chapter 9 Management Review and Continuous Improvement............................................................................................................213Chapter 10 Conclusion..............................................................................................................................................221Appendix I: Audit Attributes........................................................................................................................................235Appendix II: Miscellaneous Environmental Health and Safety Program Audit Attributes and Technical Check Sheets.......................................................266Appendix III: Who is Lincoln Electric and What Is the Lincoln Incentive Management System?............................................................................286Appendix IV: Comparison of Safety, Environmental and Quality Management Systems......................................................................................290Appendix V: SAIC: The Largest Employee Owned Company in the World, #347 in the Fortune 500 Listing..................................................................293References.............................................................................................................................................................295Index..................................................................................................................................................................298

Introduction

Webster's defines a master as "an artist, performer, or player of consummate skill ... a great figure of the past ... whose work serves as a model or ideal ... to gain a thorough understanding ... one that conquers or masters ... one having control of an animal." Organizational Mastery is one of conquering and controlling the multi-headed dragon that exists in many organizations. It is about being the best and ensuring that your organization understands and controls process risk; and provides its internal and external customers with exactly what they need, or require. It demands that managers strive to be "peak performers" or "players of consummate skill", models who thoroughly understand and consistently delivers the customer's expectations.

Mastery also means having a mission, a sincere gut-level focus to be the best. I have a friend, Frank Mastrioanni, who is a SrVP and Risk Service consultant at Marsh, Inc. Frank is a master not only in his career, but also as a Black Belt in karate. He is one of the elite, one of the best in this sport, and, given that he is still actively engaged in it after 30 years, you must assume that karate is one of his passions in life - an opportunity to be the best that he can be!

Organizational Mastery is also demonstrated in people like Jack Welch, General Electric's CEO, who is leading the Six Sigma commitment for GE and the Six Sigma "Black Belts", who are saving their companies hundreds of millions of dollars with a very advanced level of Statistical Process Control (SPC). We will talk more about SPC and Six Sigma in Chapter 7.

This book focuses on the process of taming the dragon, as if it were a pet, and controlling it so that it behaves in ways that are desired, expected, and predictable. The many heads like a the multi-headed dragon tend to fragment an organization, each trying to pull the system to serve its needs. Sometimes the different heads of the dragon, or of an organization do not know about or understand the needs of the other heads. This fragmented approach to process control can be changed! To get started we simply need to get out of our respective "professional boxes". Managers must learn to identify and better define the multiple root causes of process nonconformance to effectively design controls or to change procedures to mitigate process risk. The greatest level of effort must initially be applied to problem definition and gap analysis and risk assessments so that appropriate and prioritized controls and process changes can be effectively implemented. Like any other problem, or as any engineer will tell you, more than half of the "the battle" is won, once the issue is adequately defined or understood.

This book is about using the best of the various process management tools found in quality, environmental, and safety management for an Integrated Management System (IMS) approach to process risk management. QEH&S management systems can be more effectively managed if they are integrated into a single coherently managed system or process. We could discuss the advantages of various organizational structures, including matrix management. Although I believe that the matrix approach makes the most sense, how a company is currently organized will dictate the organizational structure for an IMS, therefore we will not spend much time discussing these options.

However, I believe that most organizations will benefit from establishing what I will refer to as a process enhancement team (PET). The PET is an iteration of process risk assessment groups. It includes department or work center team members, supported as necessary with other engineering or organizational participation as necessary (a Matrix approach to organization). Each department or work center will have its own PET, however, as necessary members of other departments will be required to temporarily support other work center PETs. This matrix-type support is necessary to help clarify customer (external and internal) requirements or to participate in the review/approval process for various control options, including setting schedules and determining the cost - benefit of control options. This process will require significant employee involvement. The responsibilities of a typical PET team could include the following.

Defining and documenting internal and external customer needs Performing process risk assessments and reviewing existing loss or nonconformance data to start the process of identifying primary process risk factors and systems gaps Supporting QEH&S audit teams with their gap analysis Identifying and implementing prioritized process change, including the need for changes in or the scheduling of delivery for various supplies and services, tools, equipment, etc. Involving needed support departments and service providers in the risk assessment and processing enhancement effort Processing measurement and evaluation support

The PET is a grass roots structure similar to quality circles of the 1980s. They will oftentimes be responsible for performing qualitative risk assessments. Their charter is to ensure that there is full employee involvement in the assessment and risk ranking of work center processes and for recommending various corrective or process improvement actions, including behavioral safety or performance management systems. The PETs also play a very critical role in the development of critical process observation checklists and in conducting many of the routine job observations, including reinforcing desired behaviors and correcting or coaching to correct undesired performance.

Strong employee involvement is key to the success of these teams, and the overall QEH&S implementation process. If you believe that your employees are your most valuable resource, and that they are the facility experts regarding their jobs, and the barriers to peak performance and process quality, then why wouldn't you solicit their input in evaluating process risk and the development of process controls?

IMS's will be very attractive for global multi-facility companies. The IMS will standardize many procedures and will be much less expensive to implement, while ensuring greater consistency between countries and facilities implementing the integrated processes. This standard in turn will provide a higher level of comfort for corporate attorneys, risk managers, CEOs and their board of directors. Inconsistency will be the Achilles heel in any company's legal defense, especially inconsistencies in QEH&S process control and/or policy.

This book can be used as blueprint for an integrated QEH&S system. However, I believe most companies will find it more useful as a resource that identifies considerations and provides tools for enhancing or integrating existing systems. I believe that because of industry, corporate, national, or cultural reasons a specific model that fits all businesses is difficult to conceive of at best, and is certainly not the intent of this book. I would like my readers to adopt the concepts or tools we discuss and those that make the most sense to them. The bottom line is that I see this book as an argument for integrating management systems and providing tools and resources, versus a fit-all management system.

The flow chart at the end of chapter one and the suggested actions at the end of subsequent chapters are included to help you with the design of your IMS. Chapters 3-9 and the appendices provide you with technical or managerial information or some examples of the tools available to help you evaluate and manage your organizations risk. This book is not intended to provide another suggested management system standard. I have simply tried to provide concepts, tools, and hopefully the encouragement that will assist you with integrating your management systems. Tools that will be discussed and recommended for use in the IMS include the following.

Incident or nonconformance multiple root cause analysis Statistical process control (SPC) Risk assessments Systems safety: management oversight risk tree analysis (MORT), fault tree analysis, change analysis, and barrier analysis Risk mapping Process flow charting, including Ishikawa, to help define desired/expected process flow, known, or potential process deviations and risk Risk management, including risk transfer Critical task observations and job-task analysis: performance management or behavioral safety Audits Emergency planning Contingency planning Evaluating control alternatives using finance tools such as present value (PV) and future value (FV) of cash flow, return on investment (ROI), payback period, and cost-benefit analysis with tools such as Liberty Mutual's savings equation, or the ORC Cost Benefit tool. QMS's, including Deming's, Juran's, Crosby's, and International Standards Organization (ISO) (Note that ISO 9000 and 14000 will soon be using the same basic structure. These systems also have much in common with Occupational Safety and Health Administration (OSHA) VPP, the new OSHA OH&S system standard, and a variety of standards around the world, including Australia's Work Safe, and the United Kingdom's standards for OH&S, including the draft 18001 standard, quality and environmental management systems.)

The PET concept requires active employee involvement and is critical for the successful implementation of the IMS. Without tapping the experience of this Stake Holder (your most valuable resource), the identification and ranking of risks and their associated controls will be very difficult. Each PET should be trained to understand the technical concepts of an IMS, and the resources/tools identified above.

To ensure that I do not offend any of my readers I want to define a term that will be used repeatedly in the book: substandard conditions. In this text we will assume that substandard conditions are procedural nonconformances, deviations from the process that management believes is executed. It does not necessarily mean that your facility is antiquated or second-class in any way. Substandard conditions does not refer to sweat shop conditions; in fact very modern facilities can have substandard conditions as defined here. Substandard conditions oftentimes reflect a breakdown in communications as expressed in poorly designed or outdated procedures and inadequate training and communications from supervisors and management. Substandard conditions and incompatible goals create the work environment supervisors and employees must work in and are the root causes leading to undesired employee behavior, accidents, customer complaints, environmental liability, and rework.

This book is about integrity in the workplace. It's about eliminating blame and creating an environment that progressively removes substandard conditions and the environments that generate quality problems, rework, environmental liability, and injuries. It's about management responsibility and accountability and aims to show managers a way to enhance their work environments and employee/customer satisfaction, while improving the bottom-line. This book is for all of us who want to enjoy our work and realize our potential and the contributions we can make to our businesses and customers. It is intended to help managers integrate QEH&S management systems and critical work processes, thus allowing more effective management in today's environment of reduced resources.

In Chapter 1 of Demings's book The New Economics for Industry, Government, Education, Deming states, "In quality management, the manager's functional role is tightly defined. The job of the manager is to work on the system, to improve it with the worker's help." I have always seen this situation as a need for managers to treat employees as their internal customers, and therefore vigilantly try to identify and anticipate the needs of these customers so that the manager and the organization as a whole succeed.

Management must clearly understand the work process and what is required with regards to the resources needed in the existing system, including training and communications, materials, procedures, tools, equipment, facilities, and the maintenance of all of these. How the system is designed to support the appropriate application of these resources in an integrated QEH&S management system and is one of the key objectives of this book. Deming, in discussing his 14 points for management, refers to this system as principles for transformation for Western management. Here are Demings's 14 points.

1. Create constancy of purpose towards improvement of product and service. 2. Adopt the new philosophy. 3. Cease dependence on mass inspection to achieve quality.

4. End the practice of awarding business based on price tag. 5. Improve constantly and forever the system of production and service. 6. Institute training on the job. 7. Institute leadership. (The goal of the supervisor should be to help people, with provision of procedures, tools, equipment, etc. to constantly improve the process for delivery of goods and services and to ensure that communications - especially process communications - are clear, accurate, and enhance the production process.) 8. Drive out fear. 9. Break down barriers between departments. 10. Eliminate slogans, exhortations, and targets for the work force asking for zero defects and new levels of productivity. 11. Eliminate work standards. 12. Remove barriers that rob workers, management, and engineering of their right to pride of workmanship. 13. Institute a vigorous program of education and self-improvement. 14. Put everybody to work to accomplish the transformation.

This book was not intended to present a thesis on ISO 14000, ISO 9000, or the draft OHSAS 18001. For a detailed information on these systems, obtain a copy of the standards and/or purchase one of the references to these systems such as Joe Casio's book on ISO 14000. My objective with this book is to provide the reader with a foundation for a quality management system (QMS) or an EH&S management system. I believe that this can be consistent with any of the ISO systems; TQM; the systems of Deming, Juran, or Crosby; the draft occupational health and safety management systems; or even the OSHA VPP or draft management system standards.

Many U.S. companies have chosen not to seek ISO certification but still implement a management system that is consistent with ISO requirements but not burdened with the documentation or administrative costs generated by some registrars. Therefore this book is more broadly written than most books that address specific management systems. The discussions provided here are intended to clearly illustrate how all of these systems have a common management and process engineering foundation. The key for success is to implement an IMS or to create an IMS by merging the missing pieces of QEH&S Management.

This book encourages managers to implement quality or environmental management systems and, to the extent possible, integrate these systems, including process safety. References to the various quality and environmental management systems, including ISO 9000 and ISO 14000, are simply to give the reader a framework to build an effective system that is consistent with processes used globally by their customers and vendors. Becoming ISO certified is a business decision that will not be discussed in this book. My overriding objective is to help you improve process quality while reducing EH&S risks.

(Continues...)

Excerpted from Organizational Mastery with Integrated Management Systemsby Michael T. Noble Copyright © 2000 by John Wiley & Sons, Inc.. Excerpted by permission.
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Edition details

• Publisher: Wiley-Interscience
• Publication date: 2000
• Language: English
• ISBN 10: 0471389285
• ISBN 13: 9780471389286
• Binding: Hardcover
• Edition number: 1
• Number of pages: 352