Small Businesses: Improving the effectiveness of Management Systems and competitiveness by combining ISO management standards with Lean

While small to medium sized enterprises (SMEs) agree that Lean practices makes great sense (where the “waste not” approach is regarded almost as the 11th Commandment) they can be sceptical about ISO management standards as being too bureaucratic / procedurally oriented.  While certification may be a step too far for them, the principles and methods within the ISO standards can be used very beneficially alongside Lean to embed best practices for up and coming organisations, both nationally and internationally. They can really benefit from using “best practices” of ISO management systems so as to demonstrate to customers that one is serious about say, the environment, rather than just paying “lip service” to it, resulting in competitive advantage as appropriate. Such standards, tempered by Lean, are vital for organisations to become efficient, effective, sustainable and resilient as well as characterized by best practices and value for money.

Why so? Why combine Lean and ISO management standards? Consider key elements of such standards:

The nature of the ISO. ISO stands for the International Organisation for Standardization which is an inter governmental body in Geneva, Switzerland to develop and promote commercial, technical and management standards to foster international trade and commerce. Standards are developed by experts in a rigorous manner to include best practice. The ISO strives to keep its standards up to date and relevant. While it concentrated initially on large organizations/bureaucracies, it has in recent years focused on making such standards more relevant to SMEs so as to reduce bureaucracy. This approach, however, in our experience, needs the added application of Lean Thinking.

Why focus on ISO management systems? A management system is defined by the ISO as a set of interrelated elements in an organisation used to establish policy and objectives and the means to achieve those objectives. These elements include managerial, human resources and operational frameworks, work practices, procedures, processes and organisational resources such as finance, people / HR, equipment, technology, know-how etc. By including the management cycle of PDCA (plan-do-check-act) - which includes a feedback mechanism, an ISO management system ensures that a policy / plan remain appropriate, relevant and up to date. Too many undertake a plan (e.g. business continuity), and forget to keep that plan up to date & relevant.

The specific management standards. The standards are described in terms of requirements, and need to be interpreted appropriately for each organisation. Briefly, the standards are as follows:

• Quality management system (9000) – this is the baseline management standard, and focuses on the management of one’s products and services, emphasising a customer orientation alongside technical ISO standards as necessary.  It is the basis for all other management systems / standards. Some key associated standards include 13485 (medical devices), 15189 (med labs), EN14065 (Rabc), 22000 (food safety).
• Environmental management system (14001) – this system manages the environmental aspects and impacts of an organisation that it can control and influence.
• Health and Safety (OHSAS 18001/ISO 45001) – used to establish a safe and healthy working environment.
• Business Continuity management system (22301) – this management system protects against the likelihood of occurrence of, and responds to and recovers from disruptive incidents when they arise. It improves corporate resilience and is linked to the ISO 27000 series, which is IT focused.
• Corporate Social Responsibility (CSR) (26000) – this is the voluntary but widely used process by which organisations achieve economic, environmental and social performance and report this to society at large.
• Risk management (31000) – this groundbreaking standard sets out the risk management framework, processes and principles for more effective management systems in general and prudent decision making.
• Energy management (50001) -  provides organisations with strategies, systems and methods to increase energy efficiency, reduce energy costs and improve energy performance
• Asset management (55000) – this sets out the requirements for a risk-based asset management system, and helps optimise the value that assets should deliver to an organisation (including maintenance).

As experts in Lean, Change Management, management systems and concepts we are confident that we can add real value to clients in improving their organisations through implementing ISO management systems, Lean and other key management concepts, by providing a cost effective focus, and by bringing essential skills, leadership and experience to the work. Visit www.melvinconsulting.ie or contact John Melvin at +353(87) 240 5197 to discuss how we can assist you in improving your organisation.