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Designing Integrated Management Systems




Integrated Management Systems – Are they feasible?




Since ISO 9001 appeared for the first time in 1987, it became a popular standard to base quality management systems on (even though the first editions were clumsy and very paper intensive!).

ISO 12647-3, ISO 9001, ISO 14001, ISO 45001 certifications - WAN-IFRASince then, ISO 14001 appeared in 1996 and OHSAS 18001 in 1999. These two standards looked different from ISO 9001, even though OHSAS 18001 was not an ISO standard (it was published by the British Standards Institute, and was accepted as an international standard by the business community). ISO 45001:2015 has since replaced OHSAS 18001.

Because of the global environmental issues, which started to be highlighted in the 1980’s, ISO 14001 soon became a very popular standard for organizations worldwide. Some used it because it improved their image, while others were really serious about protecting the environment. Occupational health and safety management standards were not quite as popular when they started appearing, because organizations felt that health and safety was sufficiently regulated in most countries. But they also started to become more popular as companies started to see the benefits of an occupational health and safety management system.

Companies that wanted to implement more than one of the management system standards soon found themselves in a bit of a dilemma. Is it feasible to have more than one management system in the organization? Which one is the most important? And, as always, money won. ISO 9001 was still the most popular, because it focused on the organization making money.

The next question was: “Is it feasible to create a single management system incorporating all three the areas of management?” The simple answer is that it is indeed possible. In the beginning it was difficult, because, even though OHSAS 18001 and ISO 14001 were similar, ISO 9001 was very different. This made the integration very complex. It was not easy to implement an integrated management system (IMS).

If can successfully integrate, it means that we can eliminate a lot of duplication and it created a management system that delivered the benefits of each single management system.

But how to do this? Fortunately ISO came to the rescue when they published Annex SL, which gave a similar structure to be used for all management system standards developed by ISO. This makes it much easier to integrate, with many requirements which are very similar. Even the major clause numbers between the different standards correspond, and they are all based on the Plan-Do-Check-Act (PDCA) cycle.

So, where do we start? Well, it depends. Maybe your company have not yet implemented any of the management systems according to the ISO standards. Maybe you have already implemented one, two or even all three of the standards individually. It is thus very important to establish the starting point. Do a gap analysis to determine what you already have, and where the gaps are. Bear in mind that the latest version of each of the standards must be used.

Use the PDCA cycle processes that have been built into each one of the standards. It is also best to use the 3 standards simultaneously, because of the similar requirements.

Context of the Organization

 Start with determining the context of the organization. Do this for all three the standards and combine the results into one context. The tools and methodologies for business management can be easily utilized to determine the context of the organization, including business (economic) issues, environmental issues and health and safety issues. To determine the external issues use the PESTLE Analysis and the Porter’s Five Forces Analysis. For internal issues use the Resource Audit and the MOST Analysis. (You can use whatever you like, but I have found that these ones work very well.)I normally end up with a SWOT Analysis that I then use to establish goals and objectives for the organization in terms of business, the environment and health and safety. The integrated management system is then based on these outcomes, because it is based on risks and opportunities that have been identified.

Scope

 It is vital that the scope of the IMS is properly defined. It helps to set a firm foundation for the system. The scope for the integrated system normally includes the entire company, but it could sometimes be only certain processes or locations. Under ISO 9001 activities which are not applicable to the organization may also be excluded, such as design and development, but only if such activities do not take place in the company.

Common Ground

 Always look for common ground between the standards. They follow the same major clause structure, and clauses 4, 5, 7 and 9 are virtually the same in all the standards, with only small differences in the subclauses. In other words, there are a lot of common requirements, and normally a single process or document will be sufficient.

Policies

 The choice here is to decide if you want to establish 3 separate policies, or combine them into a single integrated policy. What is important is to ensure that the policy is aligned with and supports strategic direction, and that the objectives are aligned with the policy or policies to ensure that strategic goals can be achieved.

Focus policy on the reduction of risks, whether the risks are business risks, environmental risks or health and safety risks.

Objectives

 Objectives must be focused on improvement. They can deal with risk reduction, which in itself is improvement.

One of my customers was running the risk of loosing major customers because of the global economic conditions at the time. An objective was set to move into new market sectors, which they successfully achieved because they planned how it could be achieved. It had an impact on the income of the company. At the same time, the economic conditions of their existing customers improved, which resulted in them purchasing from the company again, and the result was an actual expansion of the business.

Risks and Opportunities

 I always ask the question: “What should leadership focus on when we lead and manage our companies?” The answer should be: “Risks and opportunities”.

The application of risk based thinking enables organizations to identify risks and opportunities and to focus management activities and resources in the right areas.

Again, do not become narrowly focused on just one standard. Identify organizational and operational risks regarding the business, the environment and health and safety. Use the outcomes of the context analysis, especially regarding organizational risk and opportunities, and do process risk assessments to identify operational risks and opportunities.

Compliance Obligations

 Always consider the compliance obligations of the organization. The PESTLE analysis includes legal requirements (the L in PESTLE), but the standards also refer to other compliance obligations, such as contractual obligations, industry standards if the company applies them, etc.

Operations

The operational processes of the company as they are required in ISO 9001 deals with getting products or services available and selling them to customers. These same processes also require controls for environmental and health and safety issues, which are inherent in the operational processes.

While ISO 9001 does not ask for emergency planning and response plans, it is required for ISO 14001 and ISO 45001. It is, however, beneficial to think about business continuity here as well. Major incidents can cause severe losses of business, be it something like the COVID-19 pandemic, a severe quality mishap, or economic collapses, can cost serious amounts of money to remedy or to deal with.

Benefits of an IMS

 Creating integrated management systems can yield several benefits, including:

  • ·         Decreased volumes of documentation
  • ·         Better coordination of activities and resources
  • ·         Better understanding of the business and all its aspects
  • ·         Integrated workflow of activities without overlapping and doubling tasks
  • ·         Systemized information for more effective management reviews
  • ·         Etc


Other Considerations?

 It is wise to also think about good corporate governance, social responsibility, business continuity, etc when defining and implementing the integrated management system.

Conclusion

 An integrated management system is less difficult to design and implement than most people think. The benefits for the company can be huge in terms of image, market share, legal compliance and good business practices.

Feel free to leave a comment or contact SHEQ Management Systems at koosgouws10@gmail.com. Visit our website at www.sheqmanagementsystem.co.za

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