Forum on “Technical Assistance to Manufacturers of RE Equipment” and “RE Engineering Service

Forum on “Technical Assistance to Manufacturers of RE Equipment”

and “RE Engineering Service Industry Development”

The Richmonde Hotel , Sequoia Room21 San Miguel Avenue Ortigas Center, Pasig City

August 25, 20042:00 to 5:00 PM

GEF/UNDP/DOE CBRED PROJECT“Philippines : Capacity Building to Remove Barriers to Renewable Energy

Development”

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 DevelopmentRE 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 Technical Assistance to Manufacturers of RE Equipment Sub ComponentRE 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 locally- manufactured 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.

• 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 ).

2.0 Registration Scheme for RE Companies ( Continuation)

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 theRE 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 theRE 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 Systemfor 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 madeor how services are provided

CORE PRINCIPLE BEHIND ISO 9001

MANAGEMENT SHALL IDENTIFY AND DEFINE

RESOURCES AND PROCESSESTHAT MAKE UP A

COMPANY’SCOMPANY’S CAPABILITYCAPABILITYTO ASSURETO ASSURE

CUSTOMER SATISFACTION CUSTOMER SATISFACTION BY PREVENTING NONCONFORMITIESBY PREVENTING NONCONFORMITIES

IN ALL STAGESOF THE BUSINESS PROCESS

“AND STRIVE TO IMPROVETHIS CAPABILITY BASED ON

OBJECTIVE MEASUREMENT”*

• WHAT IS QUALITY?

1994 (from ISO 8420) 2000 (from ISO 9000)

Quality is the set of Quality is the DEGREE to whichFEATURES OR CHARACTERISTICS inherent CHARACTERISTICS of a product that FULFILL NEED OR

EXPECTATIONSSATISFY CUSTOMER NEEDS. 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 DEFINEHOW DOES MANAGEMENT DEFINECAPABILITY?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,PROCESS CONTROL,What is it for ?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” ?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

ACTIVITY

CONTROLS

INPUT OUTPUT

RESOURCES

A12Node Address(will later become the document number)

BUSINESS PROCESS MAPBUSINESS 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.

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This box is the parent of this diagram

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A0 REQUALIFICATION & REPAIR OF LPG CYLINDERS

Doc. No.: TO.1T Rev. No.: 0Effective Date:Copy No.: Page 1 of 7

Production

Planning

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Planning 1Notice by Lust’r

Retrieval & Storage of Cylinder

from Customer


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ManifoldConstructionEnterprises,

Inc.

A6 REPAIRDoc. No.: TO.1T Rev. No.: 0Effective Date:Copy No.: Page 4 of 7

ManifoldConstructionEnterprises,

Inc.

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Shrood

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Shrood1

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Annealing& Cooling

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ManifoldConstruction

Enterprise, Inc.21 5th Street, cr. 6th Ave

Grace Park, Caloocan City

Standards Document No. A641Revision No. :Page 1 of 1Effectivity Date :Copy No. :Dent Removal

Controlled Uncontrolled

2.0 Painitin ang bahagi ng tanke na may yupi hangang ito’y bumaga.

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.

1.0 Ilagay ang compressed air nozzle sa neckring. Sigara- duhin mahigpit ang pagka- kabit nito.

Safety : Magingat sa paglagay ng compressed air. Maaring pumotok ang tangke sa bumabagang bahagi o maaring sumobra ang lobo at umusli ang dating yupi.

Pressure Gauge Compressed airValve

Datingyupi.

• 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.

How customer confidence is established by ISO 9001?

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 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.

• 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.

Are we aiming for ISO 9001 Certification ?

• 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.

Why choose ISO 9001 as the assessment criteria notTQM or the Malcom Baldridge Criteria?

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 - “5S”

What does it mean for a company to be “registered” ?

The company will enter into a contract with the DOE/MSC toallow 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 thatall matters found during the conduct of improvement visits will be held in confidence.

The company in addition to the improvement visits will begiven the following services : advisory services and trainingaimed towards making their business system more capableof meeting customer requirements and meeting managementobjectives.

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).

What the Register is & is not ?

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”.

Controlled Copy Uncontrolled Copy

A0 REQUALIFICATION & REPAIR OF LPG CYLINDERS

Doc. No.: TO.1T Rev. No.: 0Effectivity Date:Copy No.: Page 1 of 7

Production

Planning

Production

Planning 1Notice by Lust’r


from Customer


from Customer 2

Old Cylinders

SortingSorting

3

A1

A3

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ProductionSchedule

RetrievalSchedule

truck



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RepairRepair

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Hydrotesting

Hydrotesting

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Cylindersfor Repair

Cylinders for Repainting

Cylinders forRequalification

PNS: 03 - 2

Cylinders forScrapping

RepairedCylinders

Foot Ring,Collars

FinishedCylinders Cylinder

Documentation

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For Scrapping



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A4

ManifoldConstruction

Enterprises, Inc.

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.

Implementation of RE Manufacturers Product Certification Scheme and

RE Registration Schemes

Doc. No. : BPM Rev. No.:0Effective Date :Copy No.: page 1 of 3

A0

Implementation of RE Manufacturers

Product Certification Scheme

Implementation of RE Registration

Schemes

• Management System Documents of Product Certification Scheme• Assessment Criteria Patterned After ISO 9001

• ISO 17025• Product Standards/ Test Methods

A1

A2

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2

• Applicant RE Product

• Certified Products

• Product Performance/ Weaknesses• Business System Weaknesses

• Improvements in Business System• Improvement in Product Design

• Improved Product

• Applicant Company

• Product Performance/ Weaknesses• Business System Weaknesses

• Mgt System of RE Registration Scheme• Assessment Criteria Patterned After ISO 9001

MSC

DOE

Implementation of RE Product

Certification Scheme


A1

Survey of RE Product & Product

Standards

A11

Assessment of Manufacturers Processes and

Systems 2

Applicant ReturningCompany OR Company& Product & improved Product from A623

Assessment Criteria Patterned After ISO 9001

Mgt System

Issuance of Product Certificate

Passed Companies

Registered Co./Product

A12 A14

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RE Product Testing 4

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Prod Stds & Test

Methodology

ISO 17025

Failed Company in System/ Process

Assessment

AccreditedTest Facility

Passed Product

Failed Product Performance

A13Product Performance

Standards Development

Technical Committee

Endorsed Product Stds. To BPS by DOE

Procedure for Standards Development

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To A623 Advisory Services

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ProductStandards

ProductStandards

ApprovedRE Product Stds & Test

MethodsBy DOE

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RE Product /System

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SystemAssessor

Implementation of RE Registration Schemes


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Receipt of Application

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A21Initial

Assessment of Business

System of RE Company

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Improvement Visits

Advisory Services &

Improvement Visits

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A23

Accredited MENTOR

INSTITUTION

Improved Business System and Product Designs

AccreditedMgt System

Assessor

Assessment CriteriaPatterned after

ISO 9001

Assessment CriteriaPatterned after

ISO 9001

Certificate of Compliance forMeeting all ISO 9001

Requirements

Weak Areas

Mgt SystemStd Patterned after ISO 9001

Prd DesignConsultant

Findings ofProduct Certification

Scheme

ProductStandards

To A12 & A13Product Certification

Certificate ofAccomplishment

REEngineering

ServiceHandbook

RE Registers

SelectionCriteria

MSC

Mgt SystemConsultant

Improved Business Systemand Product Designs

Accredited MENTOR

INSTITUTION

Empowering people, Improving lives

Forum on “Technical Assistance to Manufacturers of RE Equipment” and “RE Engineering Service

Documents

Transcript of Forum on “Technical Assistance to Manufacturers of RE Equipment” and “RE Engineering Service