Context Of the Organization
ISO 9001:2015
Bob Deysher
Senior Consultant
Quality Support Group, Inc.
[email protected]
2015 QSG, Inc.
2014
Expected Outcome
Understand how Context of the Organization
is integrated into your Quality Management
System
or
Is ISO 9001:2015 a template for an effective
Quality Management System or an effective
Business Management System?
QMS
BMS
2015 QSG, Inc.
Agenda (*)
Understand the Organization and its Context
Analyzing the External Environment
Analyzing the Internal Environment
Understanding the Needs and Expectations of
Interested Parties
Determining the Scope of the Quality
Management System
Putting it all Together
(*) ISO 9004 is used extensively in preparing this presentation
2015 QSG, Inc.
ISO 9001:2015 Structure
4 Context of
the
organization
5 Leadership
Understanding
of the
organization
and its context
Understanding
the needs and
expectations
of interested
parties
Scope of
management
systems
6 Planning for the
quality management
system
Leadership
and
commitment
Action to
address risk
and opportunity
Quality policy
Quality
objectives
Organizational
roles,
responsibilities
and
authorities
8 Operations
7 Support
Resources
Competence
9 Performance
and evaluation
Operations
planning
and control
Monitoring,
measurement.
analysis and
evaluation
General
Determination
of requirements
for products and
services
Internal audit
Nonconformity
and corrective
action
Design and
development of
products and
services
Management
review
Awareness
Planning of
changes
10 Improvement
Continual
Improvement
Communication
QMS
Documented
Information
Control of
externally
provided
products and
services
Check
Act
Production and
service
provisions
Plan
Release of
products and
services
Control of nonconforming
process
outputs,
products and
services
2015 QSG, Inc.
Do
Understanding the Organization and its
Context
This is a New Requirement
The organization should understand their internal and external
environments
Determine the issues that are relevant to the organization in both
environments
Assess those issues, and if not mitigated, which could prevent the
success of quality management system implementation
Using these issues, understand how they will influence the quality
changes in their organization on a continual basis.
ISO/DIS 9001, clause 4.1
2015 QSG, Inc.
Understanding the Organization and its
Context
Analyzing the External Environment
Your organization may already be doing this type of analysis
Are you doing any strategic planning, market research, or
benchmarking which identifies external issues which are being acted
on in your business/quality management system?
Does it drive your Vision, Mission, Quality Policy, Strategic Planning,
Business Objectives,Policy Deployment, etc.?
Can you demonstrate how you are doing it?
Unfortunaterly, ISO 9001:2015 provides no suggested methods to
analyze the context of an organization
2015 QSG, Inc.
Understanding the Organization and its
Context
Analyzing the External Environment
There are many models that can help an
organization understand the strategic
nature of their industry and how they fit
into that environment.
In the absence of any demonstrable
activities, SWOT is a simple model.
S - Strengths
W - Weakness
O - Opportunities
T - Threats
2015 QSG, Inc.
Understanding the Organization and its
Context
Analyzing the Internal Environment
Understanding the structure/hierarchy and positions of
the organization related to the scope at the levels:
Who sets the policies and strategic directions of the
organization?
Who coordinates and manages the operations?
Who is involved in production, service and support
activities?
2015 QSG, Inc.
Understanding the Organization
and its Context
Analyzing the Internal Environment
It is necessary to identify the structures comprising the
various bodies and relations between them (hierarchical and
functional).
These include segregation of duties, responsibilities,
authority and communication within the organization that
should be studied.
The functions outsourced to the subcontractors should also
be identified.
2015 QSG, Inc.
Understanding the Organization
and its Context
Analyzing the Internal Environment
The structure of the organization may be of different types:
The divisional structure: each division is under the authority
of a division director responsible for strategic,
administrative and operational decisions within this unit.
The functional structure: functional authority exercised over
proceedings, the nature of work and sometimes the
decisions or planning (e.g. production, information
technology, human resources, marketing ...).
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Understanding the Organization and its
Context
Analyzing the Internal Environment
The organizational chart is an excellent tool to get to
understand the internal environment.
It shows, using a scheme, the structure of the organization.
This representation shows the links of subordination and
delegation of authority, but also dependencies.
Even if the chart illustrates that no formal authority exists,
based upon the links, the information flows can be
deduced.
2015 QSG, Inc.
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Understanding the Needs and
Expectations of Interested Parties
This is a New Requirement.
The organization shall determine:
a) The interested parties that are relevant to the quality
management system
b) Interested parties add value to the organizations
and
c) The requirements of these interested parties that
are relevant to the quality management system.
ISO/DIS 9001, clause 4.2
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Understanding the Needs and
Expectations of Interested Parties
Interested parties are individuals and other entities that add
value to the organization
Meeting the needs and expectations of interested
parties contributes to the achievement of sustained
success by the organization.
Needs and expectations of interested parties can take
a wide variety of forms, including collaboration,
cooperation, negotiation, outsourcing, or by
terminating an activity.
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Interested Parties, Needs, &
Expectations (Continued)
Interested party
Needs and expectations
Customers
Quality, price, & delivery of products and services
Owners/Share Holders
Sustained profitability
Transparency
People in the organization
Good work environment
Job security
Recognition and reward
Suppliers & partners
Mutual benefit and continuity
Society
Environmental protection
Ethical behavior
Compliance with statutory and regulatory requirements
NOTE Although most organizations use similar descriptions for their interested parties (e.g.
customers, owners/shareholders, suppliers and partners, people in the organization), the
composition of those categories can differ significantly over time and between organizations,
industries, nations and cultures.
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Your Environment
Competitor
Customer
Supplier
Community
Your Organization
People
Products/Services
Processes
Regulatory
Body
Customer
Customer
Supplier
Competitor
Suppliers
Supplier
2015 QSG, Inc.
Customers
Customer
15
Determining the Scope of the Quality
Management System
Requirements to determine the scope are more
extensive in ISO/DIS 9001.
External and internal issues need to be considered
Requirements of relevant interested parties need to be
considered
Products and services of the organization need definition
The term exclusion was replaced by requirement
that cannot be applied.
Use your scope document to explain that every ISO 9001
requirement is mandatory and may only be excluded if it
cannot be applied.
ISO/DIS 9001, clause 4.3
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Putting it all Together
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Environmental Scanning
StrategicFocuses on Long-Term Needs within the
organizational context to ensure the QMS/BMS is
appropriate.
TacticalFocuses on the Processes within the
organizational context to ensure QMS/BMS is effective.
OperationalFocuses on the Metrics within the
organizational context to ensure QMS/BMS is efficient.
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Strategic
Review the vision, mission, charter, purpose, values,
and historical evolution for the organization.
Identify the internal and external customers, vendors,
competitors, and the trends affecting the operation of
the organization.
Speak with the all level of people within the
organization to obtain their perspectives, opinions,
values, and needs.
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Tactical
Be cognizant of the high-level process workflows for the
organization.
Identify similarities and differences in the structure and
major workflows with a comparable/similar organization
providing the same product or service.
Speak with managers and leaders within the
organization to obtain their thoughts, opinions, ideas,
and challenges.
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Operational
Review forms, logs, records, software, and
equipment used in performing tasks within the
organizational context (Management Review Rollup).
Become familiar with job descriptions and the work
environment where the work is performed.
Observe workers performing the actual tasks; speak
with those doing the work to understand their
frustrations and why work is done certain ways.
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External/Internal
Environment
+
Interested Parties
Aligns Strategy and Execution
Strategy
Objectives
Systematically develops and
links plans from organizational
vision to operational tactics
QMS/BMS Scope
Products
Services
QMS
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Questions???
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References
ISO 9000 Introduction and Support Package:
Guidance on the Concept and Use of the Process
Approach for management systems, ISO/TC 176/
SC 2/N 544R3
ISO 9001:2015
ISO 9004:2009
Urgo & Associates; The Policies & Procedures
Authority Newsletter
Transition Course; PECB
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