1

Understanding and Applying

Management System

2

• What is Management System?

• Plan-Do-Check-Act

• Management System vs. Tool

• Example and Application

• Presentation and Summary

Agenda

3

What is Management System?

Management System is the framework of processes and procedures for

establishing accountability, schedule for activities to be completed as well as

auditing tools to implement corrective actions to continuous improvement the

processes by which an organization defines and achieves its goals/targets

Source: ISO, Wikipedia http://www.thecqi.org/Knowledge-Hub/Knowledge-portal/Compliance-and-organisations/Management-system-standards/

Base on Principle of Plan-Do-Check-Act 4

Goal/Target

Benefit • Improve quality

• Cost savings

• Reduce environ.

impacts

• Increase

productivity

• Etc.

MS Framework Drive to Achieve Target Philosophy of Continuous Improvement and PDCA

5

Plan • Review and establish

objectives, targets, KPIs and

action plans

Do • Implement the plan

• Collect data for analysis in

the following "CHECK" and

"ACT" steps

Check • Monitoring/measure and

study the result

• compare against the

expected results (targets or

goals from the "PLAN")

Act • Request corrective

actions on differences

actual vs. planned results

• Determine whether to adopt the

change

PDCA Control to Continuous Improvement

Advantage 1) Cycle to continuous improvement 2) Force/control to cautious

6

Management System vs. Tool Different point is clearly/obvious accountability

Management System

Tool

Management System

1. Framework of processes

and procedures

2. Establish goals/objectives

3. Accountability (an

assignment of personal

responsibility)

4. Schedule for activities

5. Auditing tools to

implement corrective

actions

6. Creating an upward spiral

of continuous

improvement

Tool

• Be used to achieve a

goal

• Procedure or process

with a specific purpose

• Technology

Management System

Tool

Source: ISO, Wikipedia http://www.thecqi.org/Knowledge-Hub/Knowledge-portal/Compliance-and-organisations/Management-system-standards/

7

• Increased energy efficiency

• Reduced costs

• Improved energy performance

Definition Advantage/Benefit Industries

+

• Environmental

Management System *Base ISO9001

• All Industries,

Company, hospital, etc.

• Reduce cost of waste management

• Savings in energy and materials

• Improved corporate image

• Good

Manufacturing Practice

• Improved Product Consistency

• Helps to Lower Costs

• Legal requirement

• Quality Management System

• All Industries,

company, hospital, etc.

• Common tool for standardization

• Improves quality, employee motivation, awareness, and morale

• Energy Management

System *Base ISO9001, ISO14001

• All Industries

Especially energy business group

• Food, drug and

pharmaceutical

products

+

+

+

• Food Safety

Management System *Base PRPs, HACCP, ISO9001

• Food and food

supply chain

industries

• The product became safer

• Food quality

• Control focused on what is necessary

+ +

• Hazard analysis and critical control points

• Food safety and

biological, chemical,

physical hazards

• Food safety and quality increase

• Organizes your process to produce

safe food

+ +

+ +

+

+

+

+

+ +

Example: Application for Management System and Tool

8

• What is Management System?

• Plan-Do-Check-Act

• Management System vs. Tool

• Example and Application

• Presentation and Summary

Agenda

9

ISO50001 Energy Management System Increased energy efficiency and Improved energy performance

10

General Requirement of ISO50001

• Top Manager set Energy Policy and EnMR

- Set boundary and scope of EnMS

- Cont. improve energy performance including EE

- Aim for follow a legal and other energy requirements

• Establishing guidelines and provisions

- Review, Analyse and identify significant energy use

- Set baseline, EnPIs, Target and action plan

• Training/Communicate/Document/Control/Design

- EnM Team has adequate skills to control the EnMS

- Appropriate communicate channels should be defined

- System require the procedure and plan in place

- Operational and design to reduce energy guidelines

- Collaboration with supplier is key in becoming in ‘greener’

- Monitoring significant energy use and EnPIs

- Check effectiveness and compare with

expectation

- Revise nonconformities and find reason

- Evaluation of legal requirement and others

- Revise effectiveness and adjust

- Can be conducted as a part of

organization’s audit programme

- Examine the EnMS conform to

energy objectives and target

• Report Result

- Reassures top

management role

and responsibility

- Accelerates the

EnMS progress for

continual improve

- Understands and

recognizes the

changes made

- Evaluate people’s

effort

Energy Policy

Energy Planning

Implementation and Operation

Monitoring and Measurement

Internal Audit of EnMS

Management Review

Checking

Nonconformities and preventive action

Continual Improvement

P

D

C

A

11

Example Policy: Food Quality and Safety

Source: http://singhabeverage.co.th/index.php?route=about/about&about_id=3

12

Example Policy: Environment

Source: http://www.toyota.co.th/about.php?page=policy

13

Example Plan:

Source: TOTAL Annual Report

14

Example Plan: Energy Planning Roadmap

Source: European Industrial Initiative on bioenergy

KPIs Target

Cost of energy/product volume ($/L) 2.3 1.9 1.8 1.5 1.3 1.1

Example Do: Energy Saving Initiative

Source: http://www.enconlab.com/ve/measure.html 15

16

Example Do: HACCP Process Step: ร่อนแป้งด้วยเคร่ือง Tru Balance Sifter

Food Safety Hazards and Cause Physical อนัตรายจากเศษ ไม้ โลหะ เศษหิน ที่ติดมบัแป้ง และตะแกรงที่หลดุลอ่นจากเคร่ืองร่อน Chemical สารหลอ่ลืน่จากเคร่ืองมือ Biological Bacillus cereus

Control Measures ใช้ตะแกรงร่อนแป้ง ขนาด 850 ไมครอนจ านวน 3 ชัน้ และต้องเปลีย่นทกุ 2 สปัดาห์ถึงแม้จะไมช่ ารุดก็ตาม ตรวจสอบข้อตอ่และมอเตอร์ก่อนเร่ิมปฏิบตัิงานวา่มีลอ่งลอยของคราบน า้มนัไหลออกมาหรือไม ่ตรวจสอบเคร่ืองร่อนแป้งก่อนใช้งานวา่ที่บนัทกึการท าความสะอาด จากนัน้ตรวจสอบด้วยตาเปลา่วา่มีคราบหรือเศษแป้งติดอยูห่รือไม ่จากนัน้ใช้แอลกอฮอล์ความเข้าข้น 70% พน่และเช็ดออกด้วยผ้าแห้งก่อนใช้งานเคร่ืองมือคร่ึงชัว่โมง

CCP No. Critical /Legal Limit MONITORING PLAN CORRECTIVE ACTION PLAN

Procedures frequency Responsibility Records Procedures Responsibility Records

CCP 1 - ตรวจสอบตะแกรงห้ามมีลอยขาดหรือการช ารุดโดยเด็ดขาด - ห้ามมีคราบน า้มนัไหลออกจากเคร่ืองร่อนแป้ง

- ตรวจสอบตะแกรงเหลก็ด้วยตาเปลา่ - ตรวจสอบคราบตา่งๆตามเคร่ืองร่อนแป้ง

-ทกุๆ 1 ชัว่โมงขณะเคร่ืองร่อนแป้งท างาน

-QC operator -บนัทกึลงเอกสาร QC Daily ทกุครัง้ที่ตรวจสอบ

-หากตะแกรงขาดให้หยดุกระบวนการผลติทนัที ท าการเปลีย่นตะแกรงใหมแ่ละท าลาย โดที่เกิดจากการผลติโดยแป้งสาลีนีย้้อนหลงั 1 ชัว่โมงทิง้ทัง้หมด แล้วด าเนินการผลติตอ่

-QC supervisor -Maintenance division

บนัทกึลง Daily, Weekly and monthly report เพื่อประเมินความเสยีหายตอ่ไป

Version: 1.0 Date: xxx Completed By: QC Supervisor Checked: QC manager

17

Example Check: Monitoring Number of Students in Library

18

Example Check: Output Energy Monitoring

Source: Annual and CSR reports

19

ISO14001 Environmental Management System Prevention and control of Pollutions

20

General Requirement of ISO14001

• Top Manager set Environment Policy and EMR

- Set boundary and scope of EMS

- Cont. improve environment impact

- Aim for follow a legal and other envi requirements

• Establishing guidelines and provisions

- Identify significant environmental aspects (SEAs)

- Set KPI, Target and action plan

• Training/Communicate/Document/Control

- EM Team has adequate skills to control the EMS

- Appropriate communicate channels should be defined

- System require the procedure and plan in place

- Operational and control to reduce envi impact

- Emergency preparedness & response

- Monitoring significant energy use and KPIs

- Check effectiveness and compare with

expectation

- Revise nonconformities and find reason

- Evaluation of legal requirement and others

- Revise effectiveness and adjust

- Can be conducted as a part of

organization’s audit programme

- Examine the EnMS conform to

energy objectives and target

• Report Result

- Reassures top

management role

and responsibility

- Accelerates the

EMS progress for

continual improve

- Understands and

recognizes the

changes made

- Evaluate people’s

effort

Environment Policy

Environmental Planning

Implementation and Operation

Monitoring and Measurement

Internal Audit of EMS

Management Review

Checking

Nonconformities and preventive action

Continual Improvement

P

D

C

A

21

HACCP Hazard Analysis and Critical Control Points Food safety and increase quality

22

HACCP Plans are based on the 7 HACCP Principles

Conduct a hazard analysis

Determine the critical control

points (CCP)

Establish critical limits (CL)

Establish the corrective action

to be taken

Establish procedures for verification to confirm

Establish a system to monitor

control of the CCP

Establish documentation

concerning all procedures

• List all the hazards expected to occur at each step process • Decide which potential hazards should be addressed in plan

• Determine by using a decision-tree which facilitates a

logical approach

• Critical limits – temp, time, moisture level, pH and

sensory parameters (visual, texture) – should be scientifically

• Monitor/measure a CCP relative to its critical limits • Monitoring should be recorded

• Specific corrective actions should be developed for each CCP and ensure the CCP is brought under control

• Procedures should be established for verification

• Verification activities e.g. review HACCP system and its record

• Accurate document and record keeping are essential to the application of HACCP System

P

D

C

A

23

Example Output: Control Hazard:

- Physical: swarf

- Chemical: lubricant

- Biological: fungi

Monitoring CCP and

compare with standard

Corrective action plan

24

Plan

Do

Check

Act

• Energy policy

• Energy review

• Set objectives, targets and

action plan

• Establish baseline

• Set EnPIs

• Environmental policy

• Environmental aspects

• Set objectives, target and

programme

• Determine the critical control

points (CCP)

• Hazard analysis

• Hazard identification

• Implement energy

management action plan

• Prevention and control

of pollution • Conduct a hazard

analysis

• Establish critical limits

(CL)

• Monitor and measure

process

• Determine energy

performance vs. energy

policy and objective

• Monitoring and

measurement

• Establish a system to

monitor control of the

CCP

• Take actions to

continually improve

energy performance and

EnMS

• Take action to

continually prevent and control pollution

• Establish the corrective

action to be taken

Principle Requirement for Management System

25

Policy

KPI and Target

• Top Management shall support and drive policy to

success

• Planning shall set KPI and target to assessment

• Focus on critical point

• Corrective action and plan to adopt

Key Success Factors in Management System

Implement

Monitoring

Take action to

continuous improvement

Explanations Keys

• Implement action plan and collect data

• Measuring and monitoring to assessment and compare

with target

Achievable

Relevant

Time phased

Measurable

Specific

26

“SMART” The Five Conditions of a Good KPI and Target

• It has to be clear what the KPI exactly measures

• The KPI has to be measurable to define a standard to

make it possible to measure the actual value comparable

• Nothing is more discouraging than striving for a goal

that you will never obtain

• The KPI must give more insight in the performance of the organization in obtaining its strategy

• It is important to express the value of the KPI in time

• Every KPI only has a meaning if one knows the time dimension in which it is realized

Source: http://www.lltcorp.com/content/kpi-s-m-r-t-rule

27

• What is Management System?

• Plan-Do-Check-Act

• Management System vs. Tool

• Example and Application

• Presentation and Summary

Agenda

Learning Point

28

Key Learning ISO 50001

Learning Point

• Manage data

• How importance of KPI and monitoring

• Setting suitable baseline is importance to analyze result

• To set Boundary

• Critical control point is the most important in the process, and if

there is some problem in CCP, plant will shutdown immediately

• Understand significant data

• Use or not use

• Correct or incorrect

Key Learning HACCP

29

Exercise Workshop

Production in Ton

Ethan Propane LPG NGL

2005 9,000 12,500 47,000 8,000 76,500 76,500

2006 9,150 12,700 48,000 8,500 78,350 78,350

2007 9,100 12,800 50,000 9,000 80,900 80,900

2008 9,200 13,000 52,000 10,000 84,200 84,200

2009 9,300 13,500 53,000 10,000 85,800 85,800

2010 9,500+15,000(ESP) 14,000 55,000 11,00089,500 89,500 15000

2011 10,000+30,000(ESP) 15,000 65,000 12,000102,000 102,000 30000

2012 10,000+40,000(ESP) 15,000 65,000 12,000102,000 102,000 40000

2013 12,000+20,000(ESP) 18,000 70,000 14,000114,000 114,000 40000

Energy consumption in GJ

In GJ Hg RemovalCO2

Removal

Gas

DryerLiquid Dryer

De-

Methani

zer

De-

Ethanize

r

De-

Propemi

zer

ESP

2005 7,000 90,000 17,000 25,000 45,000 32,000 50,000 -

2006 8,000 90,000 18,000 27,000 45,000 35,000 50,000 -

2007 7,000 85,000 17,500 29,000 43,000 33,000 53,000 -

2008 8,500 10,000 19,000 28,000 50,000 36,000 57,000 -

2009 9,000 95,000 19,500 30,000 47,000 38,000 58,000 -

2010 9,500 90,000 20,000 29,000 45,000 38,000 59,000 400,000

2011 10,000 95,000 20,000 30,000 50,000 40,000 62,000 600,000

2012 10,000 95,000 20,000 30,000 50,000 40,000 62,000 700,000

2013 11,000 100,000 20,500 30,000 50,000 43,000 64,000 705,000