GEFUNDPDOE CBRED PROJECT Philippines Capacity Building to Remove
GEF/UNDP/DOE CBRED PROJECT “Philippines : Capacity Building to Remove Barriers to Renewable Energy Development” Forum on “Technical Assistance to Manufacturers of RE Equipment” and “RE Engineering Service Industry Development” The Richmonde Hotel , Sequoia Room 21 San Miguel Avenue Ortigas Center, Pasig City August 25, 2004 2: 00 to 5: 00 PM
Why are we all here ? • We would like to ESTABLISH A CONTINUING DIALOGUE with you, the RE Industry and us, the Department of Energy, through the CBRED Project and the Schemes we wish to present to you this afternoon. • At the end of the day we would like to know if you are interested in this CONTINUING DIALOGUE by signing up formally in “An Expression of Interest” form which will be passed around for you to consider. Of particular interest is your participation in the Technical Committee for Standards Development and the Register of RE Advisory Service Providers.
Why are we all here ? ( Continuation ) • We also would like you to be our partners in developing the schemes that will be presented so that they closely address your needs / concerns. Your participation would be crucial. Our continuing DIALOGUE would be our means to slowly build the foundation of understanding each other and hopefully build relationships that would endure.
The CBRED Project Objectives : The CBRED Project aims to reduce the annual growth rate of GHG (greenhouse gases) emissions by replacing part of the current fossil fuel use in the Philippines through the removal of major barriers to RE that will lead to the development and widespread utilization of renewable energy systems/applications.
Components of the CBRED Project (1)Policy, Planning, and Institutional Capacity Building; (2) Market Service Institutionalization; - Market Service Center (3) Information and Promotion Services; - RE Engineering Service Industry Development Sub Component (4) RE Initiatives Delivery and Financing Mechanisms; (5) Training Program; and (6) RE Technology Support. - Technical Assistance to Manufacturers of RE Equipment Sub Component
RE Technology Support Sub-Components • RE ENGINEERING SERVICE INDUSTRY DEVELOPMENT • TECHNICAL ASSISTANCE TO RE EQUIPMENT MANUFACTURERS
OBJECTIVES of the Sub – Component: “RE ENGINEERING SERVICE INDUSTRY DEVELOPMENT” To develop a technical support program and a registration program for the development of the local RE Engineering Service Industry. These programs seek to address the need to enhance local expertise and promote those that have proven capacities and capabilities in RE system management, which will, as a consequence, build stronger consumer confidence on RE systems and technologies and assure consumer protection.
OBJECTIVES of the Sub – Component: “TECHNICAL ASSISTANCE TO RE EQUIPMENT MANUFACTURERS” To upgrade the quality and efficiency of locallymanufactured RE products. To achieve this, it will first establish RE Systems Standards and prescribed practices with a corollary testing and/or verification program that validates if standards are being met.
Sub-Components Strategies: 1. To institutionalize a Partially Subsidized MENTORING PROGRAM that will improve the business systems, processes and product designs with an end in view of making RE Organizations competitive and customer driven. 2. To establish suitable RE STANDARDS of Practices and products that will be adopted by the RE Industry. 3. To institutionalize a VERIFICATION / VALIDATION SCHEME to determine if Standards are being complied with.
Sub-Components Strategies : 4. To explore and promote continuing arrangements between Participant Companies and Service Providers through : • Licensing agreements between local Product Designers and RE manufacturers/fabricators, • Retainers Agreement between MENTOR Institutions/Entities and participating companies.
RE Engineering Service Firms are : - companies involved in the fabrication, installation or repair of RE systems, equipment & accessories, and other technology-related services. RE Manufacturers are : - RE Product Manufacturers - RE Product Suppliers - RE Systems Integrators
COMPONENTS OF THE IRG-P STRATEGY 1. 0 RE Product Certification Scheme 2. 0 Registration Scheme for : - RE Engineering Service Firms - RE Manufacturers
1. 0 RE Product Certification Scheme • The product certification scheme is a VERIFICATION/ VALIDATION activity aimed to measure and assess conformity to specified CRITERIA. The output would be a certificate of product conformity or a statement of nonconformities to the criteria. • Participation is VOLUNTARY. • What will be verified are: - RE Products - the Manufacturing/Business System and processes
1. 0 RE Product Certification Scheme ( Continuation ) • The CRITERION for the PRODUCT will be a Product Standard established by a Technical Committee. • The CRITERION for the Manufacturing/Business System will be a multi level (probably 2 to 3 levels) management system standard derived from ISO 9001. • The RESPONSIBLE INSTITUTION would be the Department of Energy ( DOE ).
Why do we have to assess the business / manufacturing system if we are only after product quality ? • The product tests show compliance of the test sample to the product standard. We however have no conclusion on the quality of other products made by the company over time. The Product Test is a “SNAP SHOT” of product quality at a particular instance. • Assessing the business / manufacturing system gives us an idea how they control their processes and consequently indirectly provide us an idea on how consistently product quality is maintained.
2. 0 Registration Schemes for RE Companies • It is an ADVISORY Scheme to help companies improve their product, business systems and processes. It is a NURTURING and MENTORING Program. This means that there will be a MENTOR Institution/Consultant guiding the participating Company continuously until the participant company ends the Retainers Agreement. • It is VOLUNTARY. • The REGISTER represents companies participating in a PARTIALLY SUBSIDIZED Advisory Services Program. The REGISTER is NOT a directory of all RE Companies.
2. 0 Registration Scheme for RE Companies ( Continuation) • It uses periodic management system assessments as a diagnostic tool to identify weak areas of the business/ manufacturing system and processes. It will use an ISO 9001 - patterned system standard as a tool to improve the business system/processes. • It will use the results of the RE Product Certification Scheme to improve the business system, processes and products. • The RESPONSIBLE INSTITUTION will be the Market Service Center (MSC). The Market Service Center is an Institution that will continue the services of the CBRED Project after the project is completed ( 2008 ).
Participating Institutions of the RE Product Certification Scheme 1. 0 DOE - Administers the RE Product Certification Scheme - Approves RE Product Standards and Practices drafted by the Technical Committee - Acts as the convener and secretariat of the Technical Committee - - Accredits Testing Laboratories that will participate in the product certification process using ISO 17025 as the accreditation criteria. Officially endorses to the Bureau of Product Standards proposed RE Product Standards.
Participating Institutions of the RE Product Certification Scheme (Cont’n) 2. 0 Technical Committee - is composed of representatives from the RE Industry, End-users, DOE, BPS and other resource persons nominated by the membership. Membership to the Committee is appointed by both the DOE and the RE Industry Association. - drafts RE Product Standards, Tests Procedures/ Methodologies and standard practices and/or procedures deemed suitable for the RE Industry.
Participating Institutions of the RE Product Certification Scheme (Cont’n) 3. 0 Accredited Testing Laboratories - Conduct tests based on Test methodologies/ procedures approved by the DOE. - Conform and maintain their laboratory management system in accordance to ISO 17025.
Participating Institutions of the RE Registration Schemes 1. 0 MSC - Administers the RE Manufacturers’ Registration Scheme and the RE Engineering Service Registration Scheme - Accredits RE Consultants, Management System Consultants, Product Design Consultants & Institutions who will be tapped in providing advisory/training services to participating companies. - Establishes and maintains a Register of RE Advisory Service Providers resulting from the accreditation process. - Establishes a Compendium of engineering practices for RE Systems, the RE Engineering Service Handbook.
Participating Institutions of the RE Registration Scheme (Cont’n) - Monitors the status of compliance of participating companies to the Multi- Level ISO 9000 - patterned management system standard, and issues “Certificate of Accomplishment” after reaching compliance to each level. - Monitors Performance of Consultants in the advisory register.
WHAT IS ISO 9000? ISO 9000 is a Quality System for quality management and quality assurance IT IS NOT • • • a set of product standard nor specific to any one industry specific to a product / service IT IS • a standard on best practices of how products are made or how services are provided
CORE PRINCIPLE BEHIND ISO 9001 MANAGEMENT SHALL IDENTIFY AND DEFINE RESOURCES AND PROCESSES THAT MAKE UP A COMPANY’S CAPABILITY TO ASSURE CUSTOMER SATISFACTION BY PREVENTING NONCONFORMITIES IN ALL STAGES OF THE BUSINESS PROCESS “AND STRIVE TO IMPROVE THIS CAPABILITY BASED ON OBJECTIVE MEASUREMENT”*
• WHAT IS QUALITY? 1994 (from ISO 8420) Quality is the set of FEATURES OR CHARACTERISTICS of a product that SATISFY CUSTOMER NEEDS. • 2000 (from ISO 9000) Quality is the DEGREE to which inherent CHARACTERISTICS FULFILL NEED OR EXPECTATIONS that is STATED, GENERALLY IMPLIED OR OBLIGATORY. WHAT DOES THIS MEAN? – You must know or choose who your customers are, – You must know what they need (explicit, implicit needs, “by law or by custom or by common practice (2000)”) – You must design your product to have features that match customer needs, – You must identify and define resources and processes that make you capable of making these products, – You must check / verify if your product / resources / processes are still suitable in a changing environment of the market.
HOW DOES MANAGEMENT DEFINE CAPABILITY? • Management defines capability through the eyes of the customer. • Management, however chooses or identifies who will be his customers. • To understand this let us, look into the definition of Quality.
How does ISO 9001 define Capability ? • ISO 9001 defines capability through “PROCESS CONTROL”
PROCESS CONTROL, What is it for ? • Process Control is a “preventive measure” of ISO 9001 to avoid nonconforming products or product defects. • To have process control one must have “controlled conditions” in the process. • How do you know that “controlled conditions” have been reached in a process? You know controlled conditions have been attained when you get what you want or all products are within the tolerances, or there are no defects. • So quality is assured by process control not by inspections and tests. • If you assure quality by inspections and sorting, what a waste of effort, defects already exist.
WHAT ARE “CONTROLLED CONDITIONS” ? Controlled conditions are: • documented procedures/work instructions that contain the best practices to make the product • use of appropriate equipment /machineries/processes. The process is capable of making the product within the confines of the tolerances of the product. • there is set-up validation before full production • “sensor” parameters are identified & monitored which give alarm feedbacks before nonconformities occur. • assigned persons are qualified • adequate maintenance to sustain “process capability”
ELEMENTS OF THE BUSINESS PROCESS MAP CONTROLS INPUT ACTIVITY OUTPUT A 12 RESOURCES Node Address (will later become the document number)
BUSINESS PROCESS MAP • The Business Process Map is the flowchart of the whole process of the Quality System starting from receiving customer requirements to the delivery of the product. A 0 0 A-0 A 1 A-0 A 4 A 5 More General 1 More Detailed 2 A 41 3 A 42 A 43 4 A-0 1 2 A-42 This box is the parent of this diagram 3 A 421 A 422 A 423 A-4 Node Numbering Tree
Notice by Lust’r Production Planning 1 Retrieval Schedule A 1 Production Schedule PNS : 03 - 2 Old Cylinders Retrieval & Storage of Cylinder from Customer Cylinders for Requalification 2 Sorting 3 Valve Reconditioning A 3 4 A 2 truck For Scrapping PNS: 03 - 2 A 4 Hydrotesting Cylinders for Repair Cylinders for Repainting Foot Ring, Collars 5 PNS: 03 - 3 Repair Cylinders for Scrapping A 5 6 A 6 Repainting & Final Inspection Repaired Cylinders 7 For Rework Finished Cylinders Cylinder Documentation & Delivery A 7 8 A 8 Manifold Construction Enterprises, Inc. A 0 REQUALIFICATION & REPAIR OF LPG CYLINDERS Controlled Copy Doc. No. : TO. 1 T Effective Date: Copy No. : Uncontrolled Copy Scrap Finished Cylinders Rev. No. : 0 Page 1 of 7
Scrap for Repair Inspection of Footring / Shrood Footring / Shroud to A 8 1 Repair / Replace Footring / Shroad A 61 PNS 03 -3 2 A 62 Scrap Inspection of Body to A 8 PNS 03 -3 3 A 63 Dished Ends Body Repair / Removal of Dents 4 A 64 PNS 03 -3 Annealing & Cooling 5 A 65 Rework Annealing & Cooling 6 A 66 Manifold Construction Enterprises, Inc. A 6 REPAIR Doc. No. : TO. 1 T Effective Date: Copy No. : Rev. No. : 0 Page 4 of 7
Manifold Construction Enterprise, Inc. Standards Document No. A 641 Revision No. : Page 1 of 1 Effectivity Date : Copy No. : Dent Removal 21 5 th Street, cr. 6 th Ave Grace Park, Caloocan City Pressure Gauge 1. 0 Ilagay ang compressed air nozzle sa neckring. Sigaraduhin mahigpit ang pagkakabit nito. Compressed air Valve 2. 0 Painitin ang bahagi ng tanke na may yupi hangang ito’y bumaga. Dating yupi. 3. 0 Unti-unting lagyan ng compressed air ang tanke hanggang lumobo at pumantay sa hugis ng kurba ng tangke ang bumabagang yupi. Pagmasdan ang pressure gauge habang pumpapaok ang hangin. Safety : Magingat sa paglagay ng compressed air. Maaring pumotok ang tangke sa bumabagang bahagi o maaring sumobra ang lobo at umusli ang dating yupi. Controlled Uncontrolled
How customer confidence is established by ISO 9001? • ISO 9001 is a Quality Management System that establishes a management framework oriented towards customer satisfaction and constant cycle of review and improvement. • It is through this system that companies become oriented towards determining customer needs prior to designing products. • This assures that all features of the product and the corresponding specifications are always aligned towards customer needs. This logically leads to customer satisfaction and repeat patronage, the secret of a sustainable business.
The ISO 9001 -patterned Mgt System Standard • We anticipate that ISO 9001 may be too difficult to install, particularly in small organizations. • We will therefore establish a management standard that will have two to three levels. The first level will establish the core framework for process control and other supporting elements of ISO 9001. The first level will at least assure consistency of product quality. As the level increases, more sophistication in the management system will be added until all the elements of ISO 9001 are included in the last level. • A “Certificate of Accomplishment” will be given to participating companies as they hurdle each level. This provides a sense of progress and accomplishment for the participating company. • It is therefore important that a MENTOR INSTITUTION / ENTITY be present continuously to guide each company as they practice the standards and encounter problems / customer complaints.
How does the Registration Scheme Work ? • The registration scheme will conduct an assessment of the business system of the RE Engineering & Service Firm using ISO 9001 - patterned mgt system standard as the assessment criteria. • The systems assessment will look into the how the business system translates customer needs into product features, to process control, to product marketing and sales, to post sales marketing , to review and improvement of the system and products.
How does the Registration Scheme Work ? • The registration scheme will be composed of “Improvement Visits” every six months to act as mechanism for identifying gaps in its business system from the requirements of ISO 9001 patterned system standard. • The “Improvement Visits” are assessments of the business system using ISO 9001 - patterned system standard as the assessment criteria. • Part of the benefits that the company would gain from the Registration Scheme are advisory services that help address the gaps identified in the improvement visits. • The “Improvement Visits”/”Advisory Services” will therefore nurture the company’s improvement until it complies with the assessment criteria, and during the maintenance and improvement of business system after complying to ISO 9001.
Are we aiming for ISO 9001 Certification ? • It is not the aim of the Registration Schemes to have companies be certified to ISO 9001. • The aim of the Registration Schemes is to help companies orient their business systems to satisfying customer needs and help them develop and document the capability to do this, using ISO 9001 as a reference framework. • However, during the cycle of “improvement visits - advisory provision – improvement of business system’’ the company may reach a stage where it complies with ISO 9001. The MSC will mark this milestone by issuing a Certificate of Compliance to ISO 9001: 2000.
Why choose ISO 9001 as the assessment criteria not TQM or the Malcom Baldridge Criteria? • ISO 9001 is the only documented international standard that prescribes the minimum elements of a quality system. • TQM has no documented international standard. TQM, as written by different authors, is a collection of practices that can be used to address the elements of ISO 9001. • The Malcolm Baldridge Criteria are used to assess if companies are the best among applicants. It is a rating system. The criteria does not prescribe any practices. The Malcolm Baldridge Criteria can however be used by companies as a means for self assessment to identify improvement areas.
Elements of the Registration Scheme • Improvement Visits - identify weak areas of the business system • Advisory Services - consultancy and advice to address weak areas - conduct of the following training modules : - Appreciation Seminar for Executives on ISO 9001 - “Understanding ISO 9001” - Business Process Mapping - “ 5 S”
What does it mean for a company to be “registered” ? The company will enter into a contract with the DOE/MSC to allow its representatives to : • conduct an assessment of the company’s business system, • open its quality related records for sampling, and • allow its personnel involved or responsible for quality to be interviewed The contract will have a clause of confidentiality stating that all matters found during the conduct of improvement visits will be held in confidence. The company in addition to the improvement visits will be given the following services : advisory services and training aimed towards making their business system more capable of meeting customer requirements and meeting management objectives.
What the Register is & is not ? THE REGISTER IS NOT : • A list of companies that have met certain criteria such as “compliance to ISO 9001”. • A list of companies that have passed DOE’s approval. • A database of company profile and capability • A directory, a comprehensive list of Engineering Service Companies THE REGISTER IS : • A list of companies being provided services by the CBRED Project/MSC to improve their capability to satisfy customer requirements (a key ingredient for business sustainability).
2. 0 Compilations of Engineering Practices for RE Systems • Engineering standards required by RE Companies will be identified by the series of business system assessments conducted through the RE Registration Schemes. • Other engineering standards will be also be identified by the IRG-P project team who are specialists in the field of Renewable Energy Technologies. • What is important is to make this activity complementary to the efforts of making the business systems of RE Companies better in terms of addressing customer requirements. The standards identified here will form part of the body of documents that define the Company’s capability to satisfy customer requirements. • As a general reference for participating companies, the engineering standards will be compiled into an “RE Engineering Service Handbook”.
Notice by Lust’r Production Planning 1 Retrieval Schedule A 1 Production Schedule PNS : 03 - 2 Old Cylinders Retrieval & Storage of Cylinder from Customer Cylinders for Requalification 2 Sorting 3 Valve Reconditioning A 3 4 A 2 truck For Scrapping PNS: 03 - 2 A 4 Hydrotesting Cylinders for Repair Cylinders for Repainting Foot Ring, Collars 5 PNS: 03 - 3 Repair Cylinders for Scrapping A 5 6 A 6 Repainting & Final Inspection Repaired Cylinders 7 Finished Cylinders Documentation & Delivery A 7 For Rework Cylinder Documentation 8 A 8 Manifold Construction Enterprises, Inc. A 0 REQUALIFICATION & REPAIR OF LPG CYLINDERS Controlled Copy Doc. No. : TO. 1 T Effectivity Date: Copy No. : Uncontrolled Copy Scrap Finished Cylinders Rev. No. : 0 Page 1 of 7
3. 0 Training modules • Training Modules will be developed based on the engineering standards identified in the “RE Engineering Handbook” and those Product Standards identified by the Technical Committee. • The selection of the training modules will be based on the findings of the business system assessments done in the Registration Schemes. The training modules are therefore aimed towards complementing the improvement or build up of capability of Company’s to satisfy customer requirements. • The design of the training modules will be piloted to validate if the module addresses the training needs identified in the business system assessments. • A suitable training institution (i. e. the Market Service Center or the UP National Engineering Center) will be identified to participate in the development and eventual conduct of the modules.
• ISO 17025 • Product Standards/ Test Methods • Applicant RE Product • Improved Product • Mgt System of RE Registration Scheme • Assessment Criteria Patterned After ISO 9001 • Management System Documents of Product Certification Scheme • Assessment Criteria Patterned After ISO 9001 Implementation of RE Manufacturers Product Certification Scheme 1 A 1 DOE • Certified Products • Product Performance/ Weaknesses • Business System Weaknesses Implementation of RE Registration Schemes • Applicant Company 2 • Product Performance/ Weaknesses • Business System Weaknesses A 0 MSC Implementation of RE Manufacturers Product Certification Scheme and RE Registration Schemes A 2 • Improvements in Business System • Improvement in Product Design Doc. No. : BPM Effective Date : Copy No. : Rev. No. : 0 page 1 of 3
Assessment Criteria Patterned After ISO 9001 Mgt System Applicant Returning Company OR Company & Product & improved Product from A 623 RE Product / System Prod Stds & Test Methodology Registered Co. /Product Assessment of Manufacturers Processes and Systems 2 Mgt. System Assessor B ISO 17025 Passed Companies A 12 Issuance of Product Certificate 6 Passed Product A 14 DOE Failed Company in System/ Process Assessment Product Standards Procedure for Standards Development Endorsed Product Stds. To BPS by DOE Passed Product A RE Product Testing 4 A 13 Product Performance Technical Committee Accredited Test Facility Survey of RE Product & Product Standards 1 A 1 A Standards Development Failed Product Performance Product Standards Implementation of RE Product Certification Scheme B 7 A 15 Approved RE Product Stds & Test Methods By DOE To A 623 Advisory Services Doc. No. : BPM Effective Date : Copy No. : Rev. No. : 0 page 2 of 3
Selection Criteria Application RE Registers Receipt of Application Assessment Criteria Patterned after ISO 9001 Certificate of Compliance for Meeting all ISO 9001 Requirements Improvement Visits 1 A 21 MSC Initial Assessment of Business System of RE Company Weak Areas Mgt System Std Patterned after ISO 9001 2 Findings of Product Certification Scheme Improved Business System and Product Designs Product Standards RE Engineering Service Handbook Advisory Services & Improvement Visits Improved Business System and Product Designs A 24 Accredited MENTOR INSTITUTION A 22 Accredited Mgt System Assessor 4 3 Certificate of Accomplishment A 23 To A 12 & A 13 Product Certification A 2 Mgt System Consultant Implementation of RE Registration Schemes Accredited MENTOR INSTITUTION Prd Design Consultant Doc. No. : BPM Effective Date : Copy No. : Rev. No. : 0 page 3 of 3
Empowering people, Improving lives
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