CONDOLENCES TO THE FAMILY OF THE LATE FORMER HEALTH MINISTER, DATO' CHUA JUI MENG

In 1995, while I was employed by Mayjaus JV - Hazama Corporation (KLCC Petronas Towers during construction) and also a weekly-columnist for a national paper, I first encountered the late former Health Minister, Dato' Chua Jui Meng. During that time, I was meeting with Allahyarham Tun Ahmad Sarji, the then Chief Secretary to the Government of Malaysia, to delve deeper into implementing ISO 9000 in civil services.

Subsequently, the newly appointed Health Minister asked me to join him and his assistant in a private discussion room. He was interested in hearing my perspectives on enhancing quality management in healthcare.

I remember opening the thick 6th Malaysian Plan - quoting the mid term review which read :

"While the government will still remain a provider of basic health services, the role of the Ministry of Health will gradually shifts towards more policymaking and regulatory aspects, as well as, setting standards to ensure quality, affordability and appropriateness of care. At the same time the Ministry of Health will ensure an equitable distribution in the provision of health services and health manpower between the public and private sectors"

I noticed a faint surprise on his face as he remarked, "You read that verse in the 6th Malaysian Plan? I don't even recall it."

With a chuckle, I replied, "I'm aware there's a quality standard based on TQM that the Ministry is already following, and it seems to be working well." (so why need the upgrade?)

However, the main concern at that time, perhaps, was the inevitable rise of Malaysian healthcare privatization. While the Health Ministry and its hospitals aimed to adhere to the standard, certain issues, such as the transition, raised questions about potential disparities in practice between the Health Ministry and private entities, the potential increase in medication expenses and the accessibility/affordability for the public at large.

I held the opinion that implementing privatization too soon might pose challenges in effectively enhancing the quality of healthcare systems due to potential differences in management approaches.

Reflecting on the government's decision at that time to put the privatization plan on hold, I silently speculated, "He (Chua) must have convinced the then Prime Minister, Tun Dr. Mahathir."

It's truly a loss. My deepest condolences go out to the family.

THROWBACK 2016

Throwback 2016 : 

Managing Quality in Construction (Excerpt)

Nostalgia today - 2016 - The beginning of a new business relationship.

My 1st MSU Business Lecture for Centre of Excellence for Vision and Eyecare (Management and Science University)

 

TYPICAL PITFALLS IN CORPORATE GOVERNANCE - Nik Zafri

Lesson No. 1 : The CEO must be well-informed of any risks (both technical and financial) when deciding to invest in "new innovation"

Innovative ideas may sound "juicy" but potentially may also become a great threat to sound governance practices. Few gigantic motor corporations thought innovation was a good investment hence a lot of money went to Research and Development (R and D) to produce "innovations" to only knew later that they have breached the law.

a) The VW emissiongate/dieselgate

Quoting Ian McVeigh, Head of Governance at Jupiter Asset Management wrote in the Telegraph UK in 2015 : 

"The revelation that the car giant (VW) has been using so-called “defeat device” software to get its diesel cars to pass strict emission tests has been an unmitigated disaster. Since the scandal broke, the value of the company has fallen by around €30bn (£22bn)"

Source : https://commons.wikimedia.org/wiki/File%3AVW_stock_price_after_emissions_violations.png (Analysis by Dennis Bratland)

He wrote further about the significance of the CEO being well informed of investment analysis without the investors finding out about it first. Ian also mentioned about the corporate structure of German companies - having split boards - a supervisory and a management board making it potentially unclear of the "who is responsible or authorized for what?". UK however adopted the principle of putting the final responsibility with only one board.

The Volkswagen dieselgate or emission gate case started on 18 September 2015, when the US EPA issued a notice of violation of the Clean Air Act to German automaker Volkswagen Group for intentionally programmed turbocharged direct injection (TDI) diesel engines to activate certain emissions controls only during lab emission test. The programming caused the vehicles' NOx output to meet US standards during regulatory testing but emit up to 40 times more NOx in real-world driving. 

The CEO sportingly have since apologized to the customers, users and the general public. Later, he resigned.

Although Volkswagen is embarking on new policies and slowly regaining the trust of stakeholders and the car buyers, but the price they have paid is high.

Lesson No. 2 : Hiring "external party" to advise the Board can also lead to disaster.

I once heard somewhere that billionaire Warren Buffet; at some point; do not fully trust "external party's" judgement. He would rather make his own final decision.

Be careful when appointing external "subject matter experts" especially authorizing them to speak in a Board Meeting. If it is not necessary to hire, then DON'T! 

Many important decision cannot be made unanimously because the "so-called guru" says "NO". Ironically, the CEO agrees and subscribes to the "gurus" advice rather than seeking majority opinions from the experienced board members. (I've seen this happened before - it was a disaster!)

Hiring consultant assisting in corporate governance implementation is fine but these practices should be restricted to mid and support levels where CEO leads the initiative - not vice-versa. Board Members meeting must always be treated as CONFIDENTIAL.

Remember : Not everyone in the boardroom are smart guys!

Lesson No. 3 : There are always good rationales of why laws are implemented and enforced. 

Those who try to avoid the law are deemed to have "cheated" the government/ lawmakers and other stakeholders. Or put simply, betraying everyone's trust. 

One of the top cases that I've bumped into is misappropriation of funds (breach of trust) due to shareholders "manipulating" their unclear roles, responsibilities and authorities to serve their own ends. Other cases include : board ineffectiveness, unethical audit and risk practices, "unfair" pay, bad relations with external parties such as accountants and company secretaries. (aah yes, accountants and company secretaries can tell stories too - they know your secrets!)

We've witnessed how prolonged "conflict" between corporate entities and the lawmakers ending up in series of investigations and prosecutions. Long battles in the court of law not only endanger the company's reputation (even if you win the case) but the sad consequences that follow it - from people loosing jobs to reduction of market values.

Lesson No. 4 : Risk is always PROACTIVE

Never wait until problem arises. Learn the lessons from others who have failed. Take proactive measures by adopting Risk Management. (and don't just simply say....DO IT!) Proactive Risk Identification will provide you with a guide on Plan of Action (mitigation), brainstorming and develop a strategic plan. 

All these activities must happen prior to operation/project implementaton, assessed during the operation (comparing with the Risk Register for proactive risk identification stage) and mitigate during post-operation stage.

Adopt good practices of Risk Management but do not try to be too bold by taking unwanted risks!

Lesson No. 5 : Do What You Say and Say What You Do.

When you have given solemn promises or have put them in your customer charter or have addressed them in Manuals and Procedures - deliver them. Don't just file everything up and ignore them, or displaying what needed to be displayed and "that's it...end of story" - hoping that your PR will do the rest for you.

Sometimes, as a shareholder, you need to realize what you think is "impossible" can happen and do happen - whereby other shareholders (your own friends) can turn against you due to one or two angry customers who feel that you are not delivering what you have promised.

There are so many reasons of why ISO 9000 or Total Quality Management is introduced on the first place. Surely they are not to burden you but to help you.

Lesson No. 6 : Non-Conformance and Risks are opportunity for improvement

Don't scare auditors with cold bullying remarks such as :

• "I'm your paymaster",
• "Make it looks like there is more "loss" than "profit",
• "I know your boss",
• "Don't try to be too smart - remember Enron?" 

Remember, auditors are human beings too. If they feel threatened, despite the Non-Disclosure Agreement, they still can adopt the "Need to Know Basis" vs your "Transparency" - they can even get court-orders. Believe me, the end-results won't be good.

Treat auditors as friends who are trying to help you not destroy you. Treat any non-conformances as opportunities for improvement and not some "fault-finding activities". In the end, you'll be in every auditors "good book"

Don't make your company becoming one of the case study being discussed in front of other auditors in their association.

Lesson No. 7 : Be careful when setting limits on shareholder voting power.

One study (by Ken L. Bechmanna, Department of Finance, Copenhagen Business School and Johannes Raaballeb Department of Economics and Business, Aarhus University) shows that the bad corporate governance in the banks is visible in the shape of severe restrictions on shareholder rights, including voting and ownership ceilings, etc. These severe restrictions are quite unique, especially from an Anglo-Saxon perspective. In the U.S., ownership ceilings are not allowed and in a sample of 4,399 U.S. firms, only 24 had voting ceilings (see Commission of the European Communities, 2007). 

Similarly, voting and ownership ceilings are not among the 24 corporate governance provisions carefully examined by Bebchuk, Cohen and Ferrell (2009), who show that restrictions on shareholder rights lead to significant reductions in firm value.

Out of the six entrenchment provisions found to be value destroying, four of them set limits on shareholder voting power and the ability of a majority of shareholders to impose their will on the management.

And FINALLY!!

When you are having problems, try avoiding easy paths such as buyover, mergers, bailouts etc or worse - let yourself willingly to become "victim" to "hostile takeover" or ending up in government intervention. 

Even if you feel like selling your shares or the company itself, don't give up yet - try your best to first to solve your problems - who knows, you might succeed against all odds. 

Be transparent to your employees - let them know what is happening, many companies have gone down to earth and surprisingly, their employees have very good ideas on how to save the company. If the idea works, give these employees the rewards that they deserve!

THE NEW ISO 9001:2015 - NIK ZAFRI

WHAT TO EXPECT IN THE NEW ISO 9001:2015 (PART 1)

Disclaimer : Most of the contents here are not the 'actual/literal' text of the actual new ISO 9001:2015. It's the personal interpretation of the author.

0.1 – QMS as a strategic decision, a robust Quality Management Systems (QMS) – to help organization to improve its overall performance and forms an integral component of sustainable development. Design and implementation of QMS is influenced by the context of organization and   (including) the changes.

Definition

a. Strategic– Identification of long term/overall aims and interest and means to achieve them (taking into account coping up with fundamental changes – susceptible to the surroundings (what is happening around you) – law, competition, regulations, standards, trends, new technology, innovation, Research and Development etc.)

b. Robust– a process, system able to withstand or overcome adverse conditions (defects, non-conformance, corrective action request)

c. Improve overall performance – integral component of sustainable development– no system is perfect, it should be improved and become part and parcel of company's culture to achieving excellence.

d. Designed and Implemented by the sort of industry-specific – service/product provided by the company (to achieve such purpose – goals and objectives) – customization/tailor-made (1)

The rest of the content in 0.1 also talks about culture (already covered), external factors – socio-economic conditions under which it operates) – when we talk about socio-economic conditions – it talks about how the process - impacts the general public, public perception, surroundings  – possibly employment opportunity and most important – the organization must realize its financial capacity –not to do something way beyond their ability. Do something that suits the organization ONLY  (2)

Also touched on QMS can differ from one organization to another(See (1) - customization)

0.2 – not much have been changed except more emphasis is given in point no. 2 – ISO 9001 – improved internal communication, better understanding and control of process – reduction in defects and waste 

(the only way to do all these is to adopt principle of “no walls, no politics, no overlapping of duties, no pinpointing, no blaming culture” - so 100 points go to"Improved Internal Communication"  - everything starts here....

and also point no. 4 of 0.2 – ISO 9004 which touches on configuration management; apart from other elements – quality plan, project QM, measurement process/equipment, documentation, (and again - ) financial/economic benefits of the system (See (2), Statistics etc.

Definition

Configuration Management - system engineering process for establishing and maintaining consistency of a product's (or services) performance, functional and physical attributes with its requirements, design and operational information throughout its life.

0.3– comprehensive process-approach explained in better details. What's interesting are the words “understood” and “understanding” are being used. It means that the system HAS to be understood – on company-wide basis.

There is no point making a system only to be understood by a certain 'exclusive top management level'.

How to make everyone understand?

Mind you, I'm not talking about the typical (word by word) memorizing the policy or objectives – remember UNDERSTAND is totally different than MEMORIZE....

- a laymen understanding – is to understand QMS in their OWN work! (refer Job Description and Responsibilities/Authorities) – if these are not clear, DON'T HOPE everyone to understand – you will receive typical provoking comments from them just like when the previous system was implemented - “This is not my job?” “Having ISO is like having NOTHING – no impact – nothing for me” - hence - they don't feel the system!

0.4 including Figure 1 and 2 talk about 'Plan-Do-Check-Act” in much more simple understanding but implementable.

0.5 Something new – Risk-Based Thinking (in fact it's partial risk management) – which I agree 100%.

Definition

Simply look back at your Management Review Meeting, Data Analysis and Continual Improvement Plan (if you have any - if you don't, then 'BIG TROUBLE') – now PROACTIVELY start identifying, assess and prioritize the risks (the effect of "uncertainty") – how do you that? 

Yes, look back at frequent problems in your data? 

And prioritize - put them according to order, mark them with RED, YELLOW or GREEN and discuss the solution further. You can also integrate ITP, HIRARC, SHASSIC, CONQUAS or whatever specific assessment/inspection system you have (if you have one - if you don't, then go for the normal inspection that you do - incoming, in-process and outgoing) etc. into it. 

No overlapping please...let all the system be harmonized and co-exist.

Now, should you have a full (projected) Risk Management Plan before starting the operation? (Preliminary, Design, Interim and Final) – if you have the time – the answer is YES!

Project Management - Critical Path Method - justify the RED ones by thinking outside the box (outside the software) - there must be alternative ways of justifying it. Yes, I have the great CPM and the 'technical S Curve'  but why is there still delay?

Just match it with your MRM Data...you'll be on the right track.

0.6– compatibility with other management systems – explained in greater details.

VERDICT?

Yes, the new ISO 9001:2015 is attempting to cover and solve ALL kinds of management and technical problems (sound kind of ambitious - don't you think?) – however, lots of cross-referencing need to be made. Act smart for a while...please

(wait for Part 2)

VENDOR DEVELOPMENT PROGRAM (CONSTRUCTION INDUSTRY) - BY NIK ZAFRI

WORKSHOP-CONSTRUCTION QMS, INTERNAL AUDIT, DIS ISO 9001:2015 Overview

Workshop on Managing quality in construction, internal auditing and overview of the new DIS ISO 9001:2015 Pembinaan Jaya Zira S/B, Taman Putra Sulaiman, Ampang and Akar Graphic Sdn. Bhd. - March, 2015. Provision of Design Management and Construction Services in Civil and Building Engineering Works

Final day - practical for (mock-up) internal audit for construction industry and overview of upgrading to (DIS) ISO 9001:2015 to include Risk Management.

ISO 9000 - TYPICAL DOCUMENTATION GUIDELINES (CONSTRUCTION) - NIK ZAFRI

This is a promotional article. The contents are not meant for implementation. As the author/consultant, I shall not be held liable/responsible for any inaccuracies should the readers/implementers decide to utilise this document.

It is highly advised that -  further details on tailor-made/customized documentation development, workshops, conferences or training, please contact nikzafri@yahoo.com or nikzafri@gmail.com or fill up this enquiry form for RFQ

NEW ISO 9000 - DRAFT INTERNATIONAL STANDARD ISO 9001:2015 - SNEAK PREVIEW - NIK ZAFRI

TRAINING, CONSULTANCY, WORKSHOP, SEMINAR, CONFERENCE - NIK ZAFRI

#Training #Consultancy #Workshop #Seminar #Conference

KPI PEMBINAAN (SLAID) - NIK ZAFRI

CONSTRUCTION - ISO 9000 CERTIFIED - SO WHAT? IMPROVEMENT REQUIRED.... (NIK ZAFRI)

These are part of my training slides for ISO certified company (using a high-impact approach). Further enquiry on the training, please e-mail nikzafri@yahoo.com (genuine RFQ only!)

QUALITY CONTINUOUS JOURNEY – WHAT ELSE CAN BE IMPROVED?

Introduction/Refresher

1.0 QUALITY MANAGEMENT SYSTEM

Definition for Quality: 

• Fitness for Purpose (Internal and External Quality Control - 50%) and 

• Client's and Internal Satisfaction (Internal and External Quality Assurance – 50%) - Both QC and QA have respective specifications to be fulfilled – combined both = Quality Management System (QMS)

Common Challenge 1

The word “Quality” on Manual, Policy, Procedures etc. should not be narrowed only to the Quality Department or Management Representative.

Quality is always a shared commitment.

Then Quality Manual, Quality Policy, Quality Procedures are to be deemed and understood as your Company's Manual, your Company's Policy, your Company's Procedures.

Rationale : to avoid 'finger pointing'

Common Challenge 2

Quality, Health and Safety, Security, Environment - Domino Theory – One tile fall, so will the others – ALL IS REQUIRED

Once again, the same as Common Challenge 1 – not to be narrowed to a certain department e.g. Safety & Health and Security is a SHARED COMMITMENT thus making them your Company's Manual, your Company's Policy, your Company's Procedures.

Rationale : to avoid 'finger pointing'

BRANDING :

THIS IS THE WAY YOUR COMPANY WORKS!!!

COMMON ERROR

Your Company is Certified NOT Accredited (by ISO....)

CERTIFICATION BODY – A body that issued the certificate according to the nature of business – e.g. SIRIM QAS, DET NORSKE VERITAS, LLOYDS, SGS ETC. 

ACCREDITATION BODY - A Body that accredits the scope of business/industry in order to qualify the certs issued by the certification body (Accredited Certification Body) e.g. – DEPARTMENT OF STANDARDS MALAYSIA (DSM), UNITED KINGDOM ACCREDITATION SERVICE (UKAS), ANSI-ASQ – NATIONAL ACCREDITATION SERVICE (US) ETC. (MINISTRY OF SCIENCE, TECHNOLOGY AND INNOVATION (MOSTI)

OTHER KNOWN EXAMPLES

Education

INSTITUTIONS OF HIGHER LEARNING MALAYSIA (CERTIFICATE PROVIDER – PHD, DEGREE, DIPLOMA IN ???) MUST BE ACCREDITED BY MALAYSIAN QUALIFICATION AGENCY (MQA) – USED TO BE CALLED LAN. MINISTRY OF EDUCATION

Competency and Skills

COMPETENCY BASED INSTITUTION (CERTIFICATE PROVIDER – SKM 1 – 5 IN ???) MUST BE ACCREDITED BY NATIONAL VOCATIONAL TRAINING CENTRE (MLVK) – MINISTRY OF HUMAN RESOURCES

2.0 DOCUMENTATION

2.1 Quality Manual

- Common Error : Do it make sufficient reference to the Laws, Regulations, Standards etc.? e.g. This Manual is developed by taking into account the following Laws, Regulations, Standards as far as is applicable:

a. Occupational Health and Safety Act 1994

b. Environmental Quality Act, 1974

c. The International Safety Management Code (ISM) – an International Management Code

for the Safe Operation of Ships and for Pollution Prevention,

d. Petroleum Mining Act, 1966

e. ISO 9001:2008

f. OHSAS 18001: 2007

g. EMS ISO 14000 : 2004

WHY?

This is :

a. To assure the Client's that every measure has been taken to customize the documentation to support contractual requirements.

b. To ensure a stringent enforcement

NOT A GREAT CHALLENGE : TO INTEGRATE QUALITY, HEALTH & SAFETY, SECURITY, ENVIRONMENT (HSEQ) MOST OF YOU HAVE DONE IT!

CHALLENGE 1 : CERTAIN CERTIFICATION BODIES VIA ADEQUACY/ COMPLIANCE/SURVEILLANCE ASSESSMENTS - TENDS TO TREAT QUALITY AS A SEPARATE ISSUE - (ISO 9000), HEALTH AND SAFETY A SEPARATE ISSUE (OHSAS 18000), ENVIRONMENT A SEPARATE ISSUE (EMS ISO 14000)

CHALLENGE 2 : THE RESPONSIBILITY SPELLED OUT IN PROCEDURES COMPARED TO JOB DESCRIPTION, DUTIES, RESPONSIBILITIES AND AUTHORITIES. INTEGRATE BOTH IN THE JD! NO OVERLAPPING!

CHALLENGE 3 : METHOD STATEMENTS VS JOB SAFETY ANALYSIS – INTEGRATE OR NOT TO INTEGRATE?

3.0 MANAGEMENT RESPONSIBILITY

What is RESPONSIBILITY? What is COMMITMENT?

Simple Formula

A) RESPONSIBILITY + COMMITMENT = ACCOUNTABILITY

Responsible for WHAT?

- Budget, Plant and Machinery, Conducive Working Environment, Transportation, ICT etc.

Commited to WHAT?

- ensure implementation of The LAW, Quality, Safety, Security, Environment, Standards, Customer Requirements/Specifications, Vision, Objectives, KRA-KPI, Balance Scorecard etc. 

ACCOUNTABLE to providing resources to ensure smooth operation from start to end.

So - the equation : 

   ACCOUNTABILITY 

+ RESPONSIBILITY 

+ COMMITMENT 

--------------------

= LEADERSHIP

-----------------

LEADERSHIP of WHAT?

PEOPLE

Common Error

KEY PERFORMANCE INDICATORS, KEY RESULT AREAS, BALANCE SCORECARDS, DEPARTMENT/UNIT OBJECTIVES ARE OF DIFFERENT PLANETS – NOT LINKED TO ONE ANOTHER - OBJECTIVES SHOULD BE CONSISTENT WITH KPI, KRA, BALANCE SCORECARD ETC. (CASCADING PRINCIPLE – PETER DRUCKER – MANAGEMENT BY OBJECTIVES) 

4.0  TRAINING

5.0  PLANNING, OPERATION, PROCUREMENT, CONTROL (PRODUCT REALIZATION)

5.1 Planning

You have proper scheduling – CONGRATULATIONS - with all the Critical Path Method (CPM) – Pert Analysis, Gantt Chart etc. GOOD! 

Improvement: The RED BAR to indicate CPM on every activity

Additional explanatory notes are REQUIRED besides than depending on the data inputs from the software. This is WHERE Quality comes in with the experience of Data Analysis and Improvement to be made! Thus the CPM should also take into account quality setbacks based on experience running a project. Hence will improve the timing accuracy 

THIS CAN BE REFLECTED IN THE PROJECT MANAGEMENT/PROGRESS REPORTS

Common Error 1

AUDIT? – A SCHEDULED & PERIODICAL ASSESSMENT ON THE OVERALL MANAGEMENT SYSTEM – BE IT QUALITY, SAFETY, ENVIRONMENT

INSPECTION? – A ROUTINE UNSCHEDULED ASSESSMENT ON PRODUCT & WORKMANSHIP (PROJECT) - CONTRACTED

SIMILARITY : BOTH CAN ISSUE NON-CONFORMANCE REPORTS (NCR) /CORRECTIVE ACTION REQUEST (CAR)

CHALLENGE

DO CLIENT REQUIRE PROJECT QUALITY (OR HSEQ) PLAN? OR PROJECT EXECUTION PLAN (IF YOU ARE IN THE CONSULTING/DESIGN CAPACITY) OR YOU JUST DEPEND ON THE CONTRACT SPECS OR IF THE CLIENT DO NOT NEED IT – WHY DO IT? (PROACTIVE VS REACTIVE!)

6.0 MEASUREMENT ANALYSIS AND IMPROVEMENT

DO YOU MEASURE COST OF QUALITY

(IS IT STATED ANYWHERE IN THE NCR?, SITE DIARY, LOGS - INTANGIBLE COST)

PREVENTIVE ACTION :

DO YOU TAKE INTO ACCOUNT PAST DATUM OF WASTAGE CONTROL, POSSIBLE REPAIR ETC (CONTINGENCY) - TAKEN INTO ACCOUNT IN THE FUTURE COSTING/BQ? 

QUALITY CAN HELP IN MAKING YOUR CONTINGENCY COST BETTER. ANALYSIS OF DATA, CONTINUAL IMPROVEMENT PROPOSAL FROM THE MANAGEMENT REVIEW MEETING - CAN BE TAKEN INTO ACCOUNT WHEN DOING FUTURE COSTING AND BILL OF QUANTITIES.

E.G. BUFFER STOCK – WHERE DID THE DATA CAME FROM?

CONCLUSION

QUALITY IS A CONTINUOUS JOURNEY.

DO NOT BE IN THE COMFORTABLE ZONE.

YOU’LL KNOW HOW IMPORTANT THIS IS WHEN YOUR COMPANY STARTS DIVERSIFYING FURTHER!

(well...THEY MIGHT!)