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System Approach to Management

Identifying, understanding and managing interrelated processes as a system contributes to the organization's effectiveness and efficiency in achieving its objectives.

By having a system approach to management, you will identify and understand how your processes interrelate and how their interdependencies contribute to the effectiveness and efficiency in meeting the organization's objectives and meeting customer satisfaction.

Companies are usually structured in a hierarchy of functional units, and therefore in many functions, the customer is not always considered in managing their area(s). Their focus is on the goals tied to the functional area and not the output related to “customer satisfaction,” which is the focus of the system approach.

ISO 9001 promotes the process approach to quality management in order to function effectively by managing linked activities in order to enable transformation of inputs into outputs. In many cases the output from one process forms the input into the next.

In a system approach you can follow Pilot Performance's Three-Step Process-Identify, Insure, Improve™, which is discussed in Part III, “Integrated Management System Implementation.”

SYSTEM APPROACH TO MANAGEMENT

Focus: Quality – Customer

1 What criteria do you manage your business to?

2 Do you do business internationally? Have you been asked if your business has international standards of management systems in place, such as ISO 9001, ISO 14001, or OHSAS 18001?

3 How do you manage your linked business activities?

a. Business units

b. Process system approach

c. Other

4 Are processes improving? How does management know?

5 What processes are used for determining this?

6 Does your organization understand organizational capabilities and resource constraints prior to action?

7 What measurement and evaluation do you have in place in your management system?

8 How has the organization met its business needs through technology – for example, automation of business functions?

9 Has the management system supported the company's vision?

10 Is the company “walking the talk” (doing what you say you are doing)?

11 How do you control management of your business documentation? Does your quality manual make reference to your processes and applicable linkages with procedures and software programs managing your process areas for ease in capturing knowledge management?

12 What controlled conditions are in place for production and service provision? Does your organization work with quality control plans that outline characteristics and controls?

13 What systems do you have in place for the validation of processes for production and service provision? What systems are in place for identification and traceability throughout product/service realization?

 
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