INDONESIAN EXPERIENCES IN ISO 9001:2000 CERTIFICATION OF PUBLIC WATER UTILITY SERVICES

PERPAMSIPersatuan Perusahaan Air Minum Seluruh Indonesia

Indonesian Water Supply Associationwww.perpamsi.org

REGIONAL WORKSHOP TO DISSEMINATE WATER SUPPLY AND SANITATION STANDARDS OF QUALITY OF SERVICES

24 – 27 July 2007, Kampala / UgandaDr. Werner BRENNER, Advisor Finance & Management

INDONESIAN EXPERIENCES IN ISO 9001:2000 CERTIFICATION OF PUBLIC WATER UTILITY SERVICES

WBI/InWEnt, Kampala, 24-27 July, 2007 - ISO WorkshopWBI/InWEnt, Kampala, 24-27 July, 2007 - ISO Workshop

OVERVIEW OF PRESENTATION

A. INTRODUCING THE INDONESIAN WATER SECTOR

B. OUTSET SITUATION

C.OBJECTIVE FOR IMPLEMENTATION OF ISO 9001:2000

D.SCOPE & PROCESS OF QUALITY CERTIFICATION

E. PROBLEMS & SUCSESS FACTORS

F. BENEFITS OF ISO 9001:2000 CERTIFICATION

G.WHAT NEXT

H.PICTURES


Facts about PERPAMSI, the Indonesian Water Supply Association

Established: 1972 by the Ministry of Home Affairs

Organization: Head quarter in Jakarta (30 employees) 27 Provincial offices to coordinate activities

Members: All 328 Indonesian public water utilities Around 100 extraordinary members (suppliers, investors,…)

Services: Typical association services to the members, governmental institutions,

financing institutions, investors, donors and others Training institution under PERPAMSI

A: THE INDONESIAN WATER SECTOR


A: THE INDONESIAN WATER SECTOR (cont)



Water utilities are owned by local governments and controlled by local parliaments

Coverage rates for piped water supply around 35% for urban areas and around 20% for overall Indonesia (ca. 6,5 million household

connections are installed) Urban water supply provided by 328 water utilitiesUrban water supply provided by 328 water utilities

Only 5% of water utilities have more then 50,000 connectionsOnly 5% of water utilities have more then 50,000 connections 60% have less than 10,000 connections60% have less than 10,000 connections Less than 25% of PDAMs considered to be “financially Less than 25% of PDAMs considered to be “financially

viable”viable” Overall coverage rate for sewerage services < 1%


Water Supply Coverage Development (Indonesia) 1993 - 2003

10%

12%

14%

16%

18%

Coverage 12% 13% 14% 15% 16% 17%

1993 1995 1997 1999 2001 2003



Water Utiltiy Structure Development 1999, 2001, 2003

17

63

86

73

37

95

13

55

75

86

43

1379

47

64

99

49

17

9

0

20

40

60

80

100

120

< 2.000 2 - 5.000 5 - 10.000 10 - 20.000 20 - 50.000 50 - 100.000 > 100.000

category of connections

num

ber

of utilit

ies

1999 2001 2003



B: OUTSET SITUATION

THE SUSTAINABILITY CHALLENGE

•Deteriorating assets

•Declining productivity

• Increasing operating

costs

•Intermittent supply

•Poor quality water

•Angry customers

•Unwillingness to pay

• Low tariffs• Declining revenues• Unpaid bills• Inability to access financing• Declining credit rating and investment

Cycle of Physical &

Commercial DeclineAssets deteriorate &

expansion is difficult if full economic costs are not recovered. Service to the poor & wastewater suffer.


B. OUTSET SITUATION (cont)

1. Human Resources

1.1 Low level of the employees’ competence

2. Equipment

2.1 Old treatment plant equipment

2.2 Equipment breakdown development (Fig. 1)

30

32

34

36

38

40

42

Nop. Dec. Jan. Peb.

Breakdown

42

36

38

35No

. o

f P

rob

lem

s

2004 - 2005

Fig. 1 Equipment Breakdown


3. Water Treatment Plant System (Cicokol WTP; 1.100 liter per sec.)

3.1 No standard operating procedures in place

3.2 Low efficiency & effectivity in the operation of the WTP (Fig. 2)

0

10

20

30

40

50

60

70

80

90

Nov. Dec. Jan. Feb.

Waiting TimeRepair TimeBreakdown Time

2004 – 2005

Ho

ur

Fig. 2 Breakdown Time for Maintenance



4. Water Quality

4.1 There was no person in charge to handle & follow up the customer complains

4.2 Low water quality (eq : Turbidity & Chlor residue) (Fig. 3 & 4)


0

0.5

1

1.5

2

2.5

3

Nov. Dec. Jan. Feb.

NTU

2004 - 2005

2.86

2.63

2.35

2.15

Fig. 3 Water Turbidity

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

Nov. Dec. Jan. Feb.

Chlor Residue

2004 - 2005

0.960.99

0.85

0.78

Fig. 4 Water Chlor Residue

ppm

Standard 1.5 NTU

Standard0.6 ppm


C. OBJECTIVES FOR THE IMPLEMENTATION

OF ISO 9001:2000

1. Increase customers satisfaction

2. Improve the company’s performance.

3. Improve efficiency & effectivity of working system

4. Improve employees’ capacity & responsibility

5. Better communication & improvement of data quality

6. Better customers & suppliers relationship


REQUIREMENTS

Management Responsibility

Measurement, Analysis & Improvement

Resource Management

ProductRealization Output

Product

CUSTOMER

SATISFACTION

CUSTOMER

PROCESS APPROACHPROCESS APPROACH

Input

C. OBJECTIVES FOR THE IMPLEMENTATION OF ISO 9001:2000 (cont)


D. SCOPE & PROCESS OF ISO 9001:2000 CERTIFICATION

I. SCOPE OF ISO 9001:2000 CERTIFICATION

Operation & maintenance of a water treatment plant (capacity 1.100 liter per second)

II. CERTIFICATION PROCESS

1. First Stage:

1.1 Determine the management commitment

1.2 Appoint the team member to develop the system 1.3 Socialization of the ISO 9001:2000 quality management system

1.4 Determine scope of certification


2. Second Stage:

2.1 Selecting the employees who will develop the system

2.2 Training for the working group members on ISO

2.3 Developing the quality manual

2.4 Developing the quality policy & quality objective

2.5 Developing the procedures & working instructions

2.6 Socializing the documents (procedures, working

instructions, quality policy) with the employees

D. SCOPE & PROCESS OF ISO CERTIFICATION (cont)


3. Third Stage:

3.1 Implementation of the ISO 9001:2000 system

3.2 Revision of documents if the trial run is not appropriate

3.3 Internal audit training

3.4 Execution of internal audit

3.5 Corrective & preventive actions plans

3.6 Management review meeting



4. Fourth Stage:

4.1 Determine certification body

4.2 Pre audit by certification body

4.3 Corrective & preventive actions

4.4 Final audit by the certification body

4.5 Recommendation for ISO 9001:2000 certificate



No. DESCRIPTION TOTAL MONTH

2005

JAN PEB MAR APR MAY JUN JUL AUG SEP OCT NOP DES

A. FIRST STAGE 0.5

1. Management Commitment 0.5

2. Member of Work Group 0.5

3. Socializations 0.5

4. Scope of Certification 0.5

B. SECOND STAGE 4

1. Training ISO 9001:2000 1.5

2. Develop the Quality Manual 2.5

3. Develop the Procedure, Work Instruction 3.25

4. Socialization of documents 2

Fig. 5 Implementation Steps Table



No. DESCRIPTION TOTAL MONTH

2005

JAN PEB MAR APR MAY JUN JUL AUG SEP OCT NOP DES

A. THIRD STAGE 3

1. Implementation System 2.5

2. Revision of Documents 1

3. Internal Audit Training 0.25

4. Execution of Internal Audit 1

5. Corrective & Preventive Actions 1

6. Management Review Meeting 0.25

B. FOURTH STAGE 3

1. Determine Certification Body 1

2. Pre Audit 0.5

3. Corrective & Preventive Actions 0.5

4. Final Audit 0.5

5. Accepted the ISO 9001:2000 Certificate -

Fig. 5 Implementation Steps Table



Fig. 6 ISO 9001:2000 CERTIFICATE



E. PROBLEMS & SUCCESS FACTORS

DEVELOPMENT PHASE

1. Difficulties in “translating” ISO 9001 elements into water treatment plant management activities.

2. The limitations of human resources and experience in applying the ISO 9001.

IMPLEMENTATION PHASE

1. Reluctance to improve or change

2. Quality management system is seen as another managerial burden.

3. Lack of discipline in documentation

I. PROBLEMS DURING THE IMPLEMENTATION PHASE


1. Prime commitment from the lowest to the highest staff

level in the company.

2. The staff in the company is aware about ISO 9001:2000

standards.

3. High staff motivation and discipline.

4. Team building and co-operation

II. KEYS SUCCESS FACTORS

E. PROBLEMS & SUCCESS FACTORS (cont)


F. BENEFITS OF ISO 9001:2000 CERTIFICATIONInternal :

1. Improvement in the company’s performance

2. Better working methods

3. Main tasks are undertaken more efficient and effective.

4. Media of continual improvement

External :

1. Increase of customers satisfactions

2. Stakeholders and customers’ complaints are handled and anticipated better and better

3. Appreciation from external parties to the company’s existence are increased.


05

10

15

20

25

30

35

40

45

Nov.'04

Jan.'05

Jun.'06

Aug.'06

Oct.'06

Dec'06

Before After

Fig. 7 Equipment Breakdown

F. BENEFITS OF ISO 9001:2000 CERTIFICATION (cont)


010

20

30

40

50

60

70

80

90

Nov.'04

Jan.'05

June'06

Aug'06

Oct.'06

Dec.'06

Waiting Time

Repair Time

Breakdown Time

Ho

ur

Fig. 8 Breakdown Time Maintenance

Before After



0

0.5

1

1.5

2

2.5

3

Nov.'04

Jan.'05

June'06

Aug'06

Oct.'06

Dec.'06

NTU

Before After

Fig. 9 Water Turbidity



0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

Nov.'04

Jan.'05

June'06

Aug.'06

Oct.'06

Dec.'06

Chlor Residue

Fig. 10 Water Chlor Residue

ppm Before After



KIND OF AUDIT DATE OF AUDIT

GRADE/No. OF FINDINGS

TOTALMAJOR NC

MINOR NC RC SFI xLRQA

Final Audit 25 – 26 Oct 2005 - - 8 7 - 15

Surveillance Audit 1 16 May 2006 - - 2 2 - 4

Surveillance Audit 2 28 Nov 2006 - - 3 1 - 4

Fig. 11 Audit Findings

Note :1. Major NC = Major Non Conformity2. Minor NC = Minor Non Conformity3. RC = Requires Correction4. SFI = Scopes for Improvement5. xLRQA = Issue for Follow-up by LRQA at next visit

Audited by Lloyd’s Register Quality Assurance



G. WHAT NEXT?

ON GOING :

1. Implementation of safety management system (OHSA 18000)

2. Improve the internal audit

3. Improve the working efficiency and effectively

4. Paperless System for all documents of the quality management system

NEXT STEPS :

1. Implementation of total productive maintenance (TPM)

3. Online monitoring system

4. Web based data management


THANK YOU!

INDONESIAN EXPERIENCES IN ISO 9001:2000 CERTIFICATION OF PUBLIC WATER UTILITY SERVICES

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