Can one have a single 'objective' to meet the requirements of an IMS?

S

samsung

#1
One of the intents of the commercial organizations adopting management systems and getting the systems certified to the relevant standards is to support the business in one way or the other and the ultimate objective of any business is to make money.

To say the least, can an organization do with a single objective to meet the requirements of an 'Integrated Business Management System' conforming to e.g. 9001, 14001 & 18001.

An example,
Targets (w.r.t. any base year):
(1) To reduce the customer complaints by 10%
(2) To reduce the Injury Rate by 20%
(3) To achieve 10 % reduction in waste generation at source

and the sole objective behind these goals is to improve the bottomline given the fact that each one of the above, in one way or the other, is going to contribute to realizing the ultimate objective of any business, i.e.; to earn profits.

Any thoughts ?
 
Elsmar Forum Sponsor

somashekar

Staff member
Super Moderator
#2
Re: Can one have a single 'objective' to meet the requirments of an IMS ?

One of the intents of the commercial organizations adopting management systems and getting the systems certified to the relevant standards is to support the business in one way or the other and the ultimate objective of any business is to make money.

To say the least, can an organization do with a single objective to meet the requirements of an 'Integrated Business Management System' conforming to e.g. 9001, 14001 & 18001.

An example,
Targets (w.r.t. any base year):
(1) To reduce the customer complaints by 10%
(2) To reduce the Injury Rate by 20%
(3) To achieve 10 % reduction in waste generation at source

and the sole objective behind these goals is to improve the bottomline given the fact that each one of the above, in one way or the other, is going to contribute to realizing the ultimate objective of any business, i.e.; to earn profits.

Any thoughts ?
Good thought... Business is like a river, and a river is just not starting as one and ending as one into the ocean (earn profit) but it starts up somewhere and flows towards meeting the ocean and along this route several tributaries join to make the river bigger and wider and stronger. Each tributary contributes to the might of the river to its capacity and again some of the tributaries have smaller streams joining into them. So the journey is indeed a network, all joining into one river (business) and reaching the ocean (make profit) and the cycle continues with profits put into business again to make further growth.
Here if not all the tributaries, at least the major once must have an objective of their own to meet the river and contribute their part and might which in turn aligns with the single 'objective' of the river. Single and big objectives become irrelevant to the smaller contributors, if they do not really know how to meet them within their capacity.
 

Jim Wynne

Staff member
Admin
#3
Re: Can one have a single 'objective' to meet the requirements of an IMS ?

One of the intents of the commercial organizations adopting management systems and getting the systems certified to the relevant standards is to support the business in one way or the other and the ultimate objective of any business is to make money.

To say the least, can an organization do with a single objective to meet the requirements of an 'Integrated Business Management System' conforming to e.g. 9001, 14001 & 18001.

An example,
Targets (w.r.t. any base year):
(1) To reduce the customer complaints by 10%
(2) To reduce the Injury Rate by 20%
(3) To achieve 10 % reduction in waste generation at source

and the sole objective behind these goals is to improve the bottomline given the fact that each one of the above, in one way or the other, is going to contribute to realizing the ultimate objective of any business, i.e.; to earn profits.

Any thoughts ?
I think that another way to state your theory might be to say that a "quality" objective is unlikely to gain traction or be conscientiously supported unless it contributes to enhanced financial performance. I think you're right, but even if the sole objective were "make more money," you would still be faced with developing methods to do it which would become contributing objectives.

There's also the idea of sustaining some level of financial performance. There are many small businesses, mainly in niche markets, whose owners aren't interested in ever making a million of anything (except dollars, perhaps), but need to maintain a level of performance that sustains the business at a comfortable level. This type of business needs to focus on things that have the potential to detract from the ability to sustain, rather than efforts to "grow" the business.
 

Sidney Vianna

Post Responsibly
Staff member
Admin
#4
Re: Can one have a single 'objective' to meet the requirements of an IMS ?

This would derail in semantics; such as what is an objective and what is a target? That a business have a goal of improving the bottom line would be obvious. The 3 targets you mention are high level Q, S & E objectives, respectively in themselves. But they would not necessarily lead to profitability improvement, especially in the short term. For example, in order to reduce injuries of the workforce, the organization might decide to invest significantly in acquiring better PPE (Personal Protective Equipment) and education (training). Some processes might be revised to enhance safety aspects, leading to lower productivity, in the short term. So, how you intend to reduce personnel injuries, might work against the bottom line results in the short term. Similar issues might apply to the Q&E targets/objectives.

So, in answer to the original question, I don't see the benefit of being creative and minimalistic when it comes to objectives associated with an IMS. The key, as always, is how to implement subsets of the business system that contribute to the success of an organization, in the short, medium and long terms.
 
S

samsung

#5
Re: Can one have a single 'objective' to meet the requirements of an IMS ?

This would derail in semantics; such as what is an objective and what is a target? That a business have a goal of improving the bottom line would be obvious. The 3 targets you mention are high level Q, S & E objectives, respectively in themselves. But they would not necessarily lead to profitability improvement, especially in the short term. For example, in order to reduce injuries of the workforce, the organization might decide to invest significantly in acquiring better PPE (Personal Protective Equipment) and education (training). Some processes might be revised to enhance safety aspects, leading to lower productivity, in the short term. So, how you intend to reduce personnel injuries, might work against the bottom line results in the short term. Similar issues might apply to the Q&E targets/objectives.

So, in answer to the original question, I don't see the benefit of being creative and minimalistic when it comes to objectives associated with an IMS. The key, as always, is how to implement subsets of the business system that contribute to the success of an organization, in the short, medium and long terms.
Yes, I agree to the fact that the organizations may not gain in short term in lieu of what they invest to make an 'industry standard workplace', yet, given the real cost of injuries, lost work days, associated liabilities and the bad name they bring to the organizations, such an investment, as you pointed, would be full of worth in the long run.

Secondly, if we look at the issue from the operational standpoint, such an investment should be considered as part of the process design and regulatory compliance (in most cases). Further, it's also observed that investing in better technologies, better equipment and better people is always profitable though in medium or long term.

Similarly the target of reducing waste generation or preventing pollution does contribute to enhancing the bottomline even at the initial stage of organizational set up depending on the nature & scale of operations. It's also true that it's the manufacturing organizations that are benefited more than their service counterparts. I would like to quote two of the real examples of financial gains that I worked out by making significant investments towards reducing waste & air pollution.

(1) One of our intermediate products is limestone with an annual production of around 7 million tonnes. Around 20% of the mined out material, in early days, had to be rejected at source in order to maintain the desired product quality. By investing 1 million US$ towards purchase of an online sophisticated analyzer, we could reduce the amount of waste by 5% with an estimated annual cost of around 0.6 million US$. So the investment was paid back in less than 2 years.

(2) The cost of all the Air Pollution Control devices installed at our plant is around 30 million US$. I worked out that if we (hypothetically) didn't have any of them, we would be losing around 39.5 million US$ per annum in the form of precious material being lost into the surrounding air.

In short, it depends a lot on how things are perceived at the first place. In my experience, people in general understand and follow the procedures in a better way if they know the target set for them will add to (or subtract from) the bottomline in addition to creating a happy customer, a healthier environment and a safe place to work at. This supports what Jim has quoted in his above post
I think that another way to state your theory might be to say that a "quality" objective is unlikely to gain traction or be conscientiously supported unless it contributes to enhanced financial performance.
Thanks.
 
S

samsung

#6
Re: Can one have a single 'objective' to meet the requirements of an IMS ?

I think that another way to state your theory might be to say that a "quality" objective is unlikely to gain traction or be conscientiously supported unless it contributes to enhanced financial performance. I think you're right, but even if the sole objective were "make more money," you would still be faced with developing methods to do it which would become contributing objectives.

There's also the idea of sustaining some level of financial performance. There are many small businesses, mainly in niche markets, whose owners aren't interested in ever making a million of anything (except dollars, perhaps), but need to maintain a level of performance that sustains the business at a comfortable level. This type of business needs to focus on things that have the potential to detract from the ability to sustain, rather than efforts to "grow" the business.
I absolutely agree with your statement that in order to achieve a higher level (or the highest one) objective, we have to break it up into many segments and allocate responsibilities at different levels for it's achievement. But the problem is that it is perceived differently by different people to whom it's assigned because we have made the ultimate objective a 'secret mission' where different people are assigned with different codes to work with and nobody knows what it means to them. So the whole thing ends up in an 'ISO task', a state which neither contributes to QEHS nor to the financial performance in an effective manner. Contrary to it, if everyone in the hierarchy is given to understand the real & straightforward purpose/ intent of doing something, one would, in my opinion, contribute in a better and effective way towards achieving the organizational objectives.
 
J

JaneB

#7
Re: Can one have a single 'objective' to meet the requirements of an IMS ?

One perhaps could... but I question if it would be effective, wise (or whatever other adjective) you want to insert?

I know how as a potential or actual customer I would respond to a company whose sole and publicly stated stated objective was "to increase our bottom line." And my response would be far from positive.
 
S

samsung

#8
Re: Can one have a single 'objective' to meet the requirements of an IMS ?

One perhaps could... but I question if it would be effective, wise (or whatever other adjective) you want to insert?

I know how as a potential or actual customer I would respond to a company whose sole and publicly stated stated objective was "to increase our bottom line." And my response would be far from positive.
Why it wouldn't be effective ? Is it not the reality that our customers & other stakeholders aren't aware of ? Having the sole objective of enhancing the bottomline shouldn't be deemed unethical as long as the customer needs/ expectations are fulfilled and the environment, Health & safety of the people are well taken care of.

The basic purpose of organizations (except a few 'non profit orgs.') is to earn profit, grow and sustain. Success and Sustainability of any project depends to a great extent on profitability. If it is not profitable, it is not sustainable. So the sole objective of any of the management systems, be it Quality or EMS or OHS that the organizations adopt, culminates at the bottomline. If the objective is 'Customer Satisfaction', question can still be asked - What's the objective of achieving customer satisfaction? And, in the end, one would, in all probability, arrive at 'strengthening the economy' or making profits. Similarly, the organizations subscribing to 14001, only focus on their 'own' significant environmental aspects since it makes sense to their business and doing so would make their business grow and sustain.

So why can't we publicly proclaim that our sole purpose is to increase the bottomline or making profits while safeguarding the interests of all the stakeholders including the environment.

Thanks.
 
J

JaneB

#9
Re: Can one have a single 'objective' to meet the requirements of an IMS ?

Why it wouldn't be effective ?
I already gave my answer to that.

So why can't we publicly proclaim that our sole purpose is to increase the bottomline or making profits while safeguarding the interests of all the stakeholders including the environment.
Go ahead - there's nothing preventing you. It would be an interesting experiment, and might make for a case history worthy of study in future business courses.

Hint: the fact that not one business (to my knowledge) has done it just might be a clue worth considering.
 
S

samsung

#10
Re: Can one have a single 'objective' to meet the requirements of an IMS ?

Few questions -

Is the philosophy of setting objectives in it's present form quite effective?

What are the key objectives of a business not practicing a formal management system?

If not profits, then what's the ultimate objective of any (commercial) business?

Assuming the management systems are not meant for financial gains, what 'real benefits' these management systems ensue and how the 'benefits' are perceived by the organizations?
 
Thread starter Similar threads Forum Replies Date
S DHF/DMR/MDF for a software-only, cloud-based, single-instance device Medical Information Technology, Medical Software and Health Informatics 2
N Is this a single integral drug device combination product EU MDR CE Marking (Conformité Européene) / CB Scheme 1
R CND nomenclature for single use instruments CE Marking (Conformité Européene) / CB Scheme 1
P Violation of CE mark - Re-use of single-use Products CE Marking (Conformité Européene) / CB Scheme 2
M What are the basics of Medical Device Single Audit Program (MDSAP)? ISO 13485:2016 - Medical Device Quality Management Systems 7
D SINGLE FAULT CONDITION, short circuit and open circuit of any component (IEC 60601-1 3.1) IEC 60601 - Medical Electrical Equipment Safety Standards Series 9
shimonv Single lot release for sterile packaging 21 CFR Part 820 - US FDA Quality System Regulations (QSR) 3
N Where to find Regulations for Reprocessing and Reuse of Single-Use Devices Other Medical Device Related Standards 2
T Single Fault Condition IEC 60601 Clause 8.7.1 shorting Cr/Cl in Patient Applied Part IEC 60601 - Medical Electrical Equipment Safety Standards Series 7
D Partial FAI - AS9102 - One single drawing has 10 part numbers AS9100, IAQG, NADCAP and Aerospace related Standards and Requirements 5
Sidney Vianna Informational IAF and ILAC Seek Contractor for Establishment of a Single International Organization for Accreditation ASQ, ANAB, UKAS, IAF, IRCA, Exemplar Global and Related Organizations 2
F UDI - Unit of Use and Class I, single-use devices EU Medical Device Regulations 4
A Single use non-sterile syringe used in the oral cavity - Laboratory test advice US Food and Drug Administration (FDA) 7
D How to get EUDAMED Single Registration Number (SRN) EU Medical Device Regulations 17
CycleMike GD&T - Hole pattern - Print (attached) has a single Datum Reference Frame Inspection, Prints (Drawings), Testing, Sampling and Related Topics 2
K Does company who manufacture but does not design or carry out clinical trials is responsible for CE marking for single use medical devices? ISO 13485:2016 - Medical Device Quality Management Systems 3
F 2017/745 Article 31 Single Registration Number Medical Device and FDA Regulations and Standards News 5
M Informational EU draft act – Single-use medical devices – safety and performance requirements for reprocessing Medical Device and FDA Regulations and Standards News 0
Q IATF rule for single site - Ingots from scrap metal recycling company IATF 16949 - Automotive Quality Systems Standard 0
R Supplier Controls we can place on Single-Source Suppliers ISO 13485:2016 - Medical Device Quality Management Systems 2
R Critical suppliers (Definition of) and MDSAP (Medical Device Single Audit Program) ISO 13485:2016 - Medical Device Quality Management Systems 15
A Touch current in single fault conditions test and earth leakage current in normal conditions test, are they really different tests? IEC 60601 - Medical Electrical Equipment Safety Standards Series 8
Ed Panek Can a single supplier fit two or more categories for risk? ISO 13485:2016 - Medical Device Quality Management Systems 2
T No Defined Shelf Life/Expiration Date - Disposable single-use, non-invasive, non-sterile Other Medical Device Regulations World-Wide 2
F Reprocessing or refurbishing? Single Use Medical Device CE Marking (Conformité Européene) / CB Scheme 0
S How to make Single Sign On (SSO) Comply e-sig requirements? ISO 13485:2016 - Medical Device Quality Management Systems 4
E Sample size for design verification of variable in single use device Design and Development of Products and Processes 20
Ed Panek Sensitive Supplier Issue - Single source supplier ISO 13485:2016 - Medical Device Quality Management Systems 6
G Single DFU for multiple medical devices in one box Other Medical Device Regulations World-Wide 0
M Medical Device News Health Canada - Medical Device Single Audit Program (MDSAP) Transition Plan Canada Medical Device Regulations 2
A ISO 2859 Single Sampling - Clarification regarding the sampling table Inspection, Prints (Drawings), Testing, Sampling and Related Topics 4
bio_subbu Indian government issues guidance on Grouping Medical Devices in a Single Submission Other Medical Device Regulations World-Wide 1
F Marketing a single medical device with multiple indications Other US Medical Device Regulations 4
G IEC 61010 - Single Fault Condition - Protective Impedance Implementation IEC 60601 - Medical Electrical Equipment Safety Standards Series 1
T Definition Sole source VS. Single Source - Definitions Definitions, Acronyms, Abbreviations and Interpretations Listed Alphabetically 2
Edward Reesor MDSAP (Medical Device Single Audit Program) Costs Canada Medical Device Regulations 7
Mikey324 GR&R - Little to no part to part variation in single part number Gage R&R (GR&R) and MSA (Measurement Systems Analysis) 14
R How many Corrective Action Request can be Issued by DCMA for a single issue? Nonconformance and Corrective Action 2
I Label Expiration Date - Single Use Combination Medical Device EU Medical Device Regulations 2
M What are Single Fault Conditions and how to test - IEC 80601-2-13 Other Medical Device Related Standards 0
M Merge Technical File, DMR, and Device File into a single document? Other Medical Device and Orthopedic Related Topics 3
P Single Use Disposable Dental Syringe - CE Marking Advice EU Medical Device Regulations 4
S IEC 60601-1 - Label Physical Requirements for Disposable (Single Use) Medical Devices IEC 60601 - Medical Electrical Equipment Safety Standards Series 5
E Single Fault Condition Simulation IEC 60601 - Medical Electrical Equipment Safety Standards Series 2
N Reliability Testing of a Single-Use (Disposable) Medical Device Reliability Analysis - Predictions, Testing and Standards 4
R Standards Specific to Single Channel ECG Medical Device IEC 60601 - Medical Electrical Equipment Safety Standards Series 1
Ronen E FDA encourages industry to participate in Medical Device Single Audit Program (MDSAP) Other US Medical Device Regulations 10
J QMS and ISO 9001 for a Single Person Machine Shop ISO 9000, ISO 9001, and ISO 9004 Quality Management Systems Standards 24
P Question related to Single Fault Conditions IEC 60601 - Medical Electrical Equipment Safety Standards Series 2
T Single Point Contact / DoC CE Marking (Conformité Européene) / CB Scheme 2

Similar threads

Top Bottom