Putting stakeholders first in satisfying quality, safety and other requirements

Many readers will have encountered ISO 9000 registered organizations that failed to keep their promises. It is often the case that organizations have approached the standard with the wrong objective in mind. The intent of ISO 9000 is not to create uniform management systems. It is a set of criteria that, when applied correctly, will enable organizations to produce products and supply services t...


Many readers will have encountered ISO 9000 registered organizations that failed to keep their promises. It is often the case that organizations have approached the standard with the wrong objective in mind. The intent of ISO 9000 is not to create uniform management systems. It is a set of criteria that, when applied correctly, will enable organizations to produce products and supply services that meet customer requirements, in a manner that satisfies all stakeholders.

It is often this latter concept that has escaped management’s attention with the result that the needs of customers, employees, investors and suppliers are continually being traded off against each other.

A commonly held but erroneous view is that ISO 9000 advocates that organizations should document what they do and do what they document. Clearly it is important for organizations to keep their promises. This is what the ISO 9000 family of standards is all about, but regrettably it has been taken to ridiculous lengths in the belief that doing what you document will somehow improve product quality. If what you do is not effective to

Too much reliance has been placed on ISO 9000 certification and not enough on building a reputation for delivering on promises. Organizations need to view themselves as a system of interconnected processes, to recognize that they have only one system and then design that system so that it enables the organization to accomplish its mission. Afterwards, they can assess whether it meets requirements of ISO 9001 or any other standard imposed by the market, taking care to only correct omissions that are essential for the business.

The importance of stakeholders

Organizations are created to achieve a goal, mission or objective, but they will only do so if they satisfy the needs and expectations of their stakeholders. Stakeholders have freedom to provide something to or withdraw something from an enterprise:

  • Investors can withdraw their stake if an organization fails to perform

  • Society can withdraw its support for an organization and invoke legal action if it fails to manage its impact on society

  • Employees can withdraw their labor if their health and safety is compromised

  • Suppliers can withdraw their patronage if their invoices are not paid.

  • Each of these stakeholders has needs, and they are not mutually exclusive.

    • If the organization cannot satisfy the other stakeholders by supplying a particular customer, it should negotiate with the customer and reach an agreement whereby the specification is modified to allow all stakeholders to be satisfied. If such an agreement cannot be reached, the organization has to decline to supply under those conditions.

      Taking a process approach

      Taking the view that a process (in the context of organizational management) is a set of interrelated activities, behaviors and resources that achieves a result, and that a managed process is one that achieves an objective, we can represent the relationship between the organization, its mission, the results it produces and its stakeholders by a business cycle as illustrated in Figure 1.

      In the diagram we find that:

      • Stakeholders place demands upon the organization that are fundamental to the determination of its mission

      • The organization’s mission reflects what the organization is trying to do, where it is going and what principles will drive it towards satisfying stakeholder needs and expectations

      • The organization accomplishes its mission through a set of interconnected processes that collectively produce the outputs necessary to deliver the desired results

      • The organization delivers the results, thus delighting the stakeholders

      • The stakeholders consider whether their needs continue to be satisfied and through one means or another, redefine the demands they place upon the organization

        • Culture is the elixir

          Commitment starts at the top, so when top management declares what the organization is trying to do (its mission) and how it is going to achieve it (its processes), they also need to decide on the principles they will use to get it there (its values). Values are the beliefs that guide behavior and thus shape the culture. If management sets good examples and creates consistency, the values will become habitual and be passed on to their successors.

          Selecting people on the basis of their competence, including the values they hold, will build a stable culture. Allowing selection on any other basis is a recipe for disharmony. But expressing values is one thing %%MDASSML%% demonstrating them is another. There is, however, a simple test. When validating a process, one selects an action or decision and asks, “How does this align with our value of taking a factual approach or continual improvement or whatever the value happens to be?” If there is conflict, the action or decision is obviously inconsistent with the organization’s values and should be changed.


          Having started by being somewhat critical of organizations that have implemented ISO 9000, it has been shown that by putting stakeholders first, product quality, occupational health and safety, care of the environment or whatever the constraint imposed upon the organization can be managed effectively by taking a process approach to management.

          Business processes having objectives derived from stakeholder needs will deliver the desired results if resourced with competent people, periodically reviewed and subjected to continual improvement in performance, efficiency and effectiveness.

          <table ID = 'id4698580-0-table' CELLSPACING = '0' CELLPADDING = '2' WIDTH = '100%' BORDER = '0'><tbody ID = 'id4698608-0-tbody'><tr ID = 'id4698610-0-tr'><td ID = 'id4698612-0-td' CLASS = 'table' STYLE = 'background-color: #EEEEEE'> Author Information </td></tr><tr ID = 'id4700136-3-tr'><td ID = 'id4700138-3-td' CLASS = 'table'> David Hoyle is the author of “ISO 9000 Quality Systems Handbook, 5th Edition” published in December 2005 by Butterworth-Heinemann, a division of Elsevier. For more information on this book, contact sheri.deanallen@elsevier.com . </td></tr></tbody></table>

No comments
The Top Plant program honors outstanding manufacturing facilities in North America. View the 2015 Top Plant.
The Product of the Year program recognizes products newly released in the manufacturing industries.
The Engineering Leaders Under 40 program identifies and gives recognition to young engineers who...
Safety for 18 years, warehouse maintenance tips, Ethernet and the IIoT, GAMS 2016 recap
2016 Engineering Leaders Under 40; Future vision: Where is manufacturing headed?; Electrical distribution, redefined
Strategic outsourcing delivers efficiency; Sleeve bearing clearance; Causes of water hammer; Improve air quality; Maintenance safety; GAMS preview
SCADA at the junction, Managing risk through maintenance, Moving at the speed of data
Safety at every angle, Big Data's impact on operations, bridging the skills gap
The digital oilfield: Utilizing Big Data can yield big savings; Virtualization a real solution; Tracking SIS performance
Applying network redundancy; Overcoming loop tuning challenges; PID control and networks
Driving motor efficiency; Preventing arc flash in mission critical facilities; Integrating alternative power and existing electrical systems
Package boilers; Natural gas infrared heating; Thermal treasure; Standby generation; Natural gas supports green efforts

Annual Salary Survey

Before the calendar turned, 2016 already had the makings of a pivotal year for manufacturing, and for the world.

There were the big events for the year, including the United States as Partner Country at Hannover Messe in April and the 2016 International Manufacturing Technology Show in Chicago in September. There's also the matter of the U.S. presidential elections in November, which promise to shape policy in manufacturing for years to come.

But the year started with global economic turmoil, as a slowdown in Chinese manufacturing triggered a worldwide stock hiccup that sent values plummeting. The continued plunge in world oil prices has resulted in a slowdown in exploration and, by extension, the manufacture of exploration equipment.

Read more: 2015 Salary Survey

Maintenance and reliability tips and best practices from the maintenance and reliability coaches at Allied Reliability Group.
The One Voice for Manufacturing blog reports on federal public policy issues impacting the manufacturing sector. One Voice is a joint effort by the National Tooling and Machining...
The Society for Maintenance and Reliability Professionals an organization devoted...
Join this ongoing discussion of machine guarding topics, including solutions assessments, regulatory compliance, gap analysis...
IMS Research, recently acquired by IHS Inc., is a leading independent supplier of market research and consultancy to the global electronics industry.
Maintenance is not optional in manufacturing. It’s a profit center, driving productivity and uptime while reducing overall repair costs.
The Lachance on CMMS blog is about current maintenance topics. Blogger Paul Lachance is president and chief technology officer for Smartware Group.
This article collection contains several articles on the vital role of plant safety and offers advice on best practices.
This article collection contains several articles on the Industrial Internet of Things (IIoT) and how it is transforming manufacturing.
This article collection contains several articles on strategic maintenance and understanding all the parts of your plant.
click me