Matrix Certification Voith Siemens three introducing remarks Customers

Matrix Certification Voith Siemens: three introducing remarks Customers ask for information on role of OUs within VS regarding: • its financial and technical capacity, • its position relative to headquarter and other OUs, • its QM-System. Complexity of projects becomes increasingly demanding: • growing need for internal collaboration between OUs, • complex interfaces with high penalties for delay and performance, • continuing cost pressure from the market side. è Need for optimization of resources and processes / interfaces. VS-Strategy: Matrix Certification based on new VS Management System • Matrix Certification among top management goals of all OU Presidents è Everybody is asked to do her / his best to make Matrix Certification happen.

What is a Matrix Certificate ? It certifies the compliance of a Management System with an International Quality Standard for an entire company with several affiliates. Example Voith Siemens: Company: International Quality Standard: Management System: VSH + all VS-OUs ISO 9001: 2000 VS GDDs + Voith GDs Example for Matrix „Business Function vs. OUs“: GDD = Group Division Directive GD = Group Directive

Matrix Certificate: how does it look like ? One main certificate for Voith Siemens Hydro: • all VS OUs listed • all business functions listed • issued by one (central) Certification Body. Separate local certificates for all OUs: • reference to main certificate • relevant business functions of OU listed • local certification body not listed.

VS TRQM Matrix Certification: the two main drivers VS Mgmt. System established Management (inside) view: Ø implement VS Management System a. s. a. p. Ø end "transition phase" Ø include all OUs already in certification audits 2002 Customer (outside) view: Ø identical Quality standard of all products and services throughout all VS-OUs past transition phase future ISO 9000: 1994 FY 2000/01 Oct 00 Mar 01 ISO 9000: 2000 FY 2002/. . FY 2001/02 Oct 01 Mar 02 Oct 02 Mar 03

Matrix Certificate: Requirements, Pre-requisities (I/II) Ø Products and services are similar/comparable at all locations, Ø There are central functions working for all locations Ø The parent company applies a management system that is also valid for all locations. For the relevant locations additional or deviating documents may exist for the description of special processes. Ø The legal responsibilities of the parent company and/or the management representative for all location must be guaranteed. Ø The manufacturing programs and/or manufacturing processes are standardized or similar at all locations. Ø There is an own product and process responsibility in the parent company.

Matrix Certificate: Requirements, Pre-requisities (II/II) Ø The suppliers are assessed and selected centrally. Ø The management system is supervised by the QM representative of the board of management of the parent company. He/she has authority to issue directives for all locations. Ø The training requirement is determined centrally. Ø All locations are subject to the internal audit program of the company. At all locations the complete management system must be audited (to do). Ø A central management review must have been carried out (to do). Ø The certificate is withdrawn for the entire company, if one location meets the conditions for withdrawal. The exclusion (!) of a ”problematic” location is not permitted as a matter of principle.

Milestones to Matrix Certificate VS VS is about to complete the implementation of the new VS Management System. The VS Top Management has decided to aim at a Matrix Certification of the whole Company as soon as possible. Matrix Certificate VS VSD wi, MKe, 2002 -08 -21, Schedule 3 Matrix Certificate VS. ppt Announcement of VS matrix certification goal (HPS) International Standards and internal directives published in Voith and VS-Intranet: TRQM Group Meeting • Standard DIN EN ISO 9001: 2000 • Group Directives J. M. Voith AG • Group Division Directives VS TRQM-Manual VS (MKe) Adaption of local Mgmt Systems (I) (OU-TRQMr) Oct 01 Mar 02 Review of TRQMM (all OUs) Adaption of local Mgmt Systems (II) (OU-TRQMr) Apr 02 May 02 Release TRQMM, selection of TÜV as Certification Body Certification audits VSH + all OUs Mgmt Review of VS Technical Risk and Quality Mgmt System Audits of the Mgmt Systems (OU-TRQMr) Aug 02 Sep 02 t tac n co Mr , ils TRQ ta de OU r Fo our y Oct 02 Nov 02 Dec 02

Matrix Certificate: Certification Body Since most OUs had recommended their national TÜV organizations, VS has chosen TÜV Germany as the leading Certification Body. Ø Cooperation of TÜV Rheinland / Berlin / Brandenburg and TÜV Süd (Stuttgart / Munich) as leading body. Ø National TÜV organizations will be responsible for the local certification audits. Ø List of national TÜV organizations that will perform the local audits to be published soon at this place.

ISO 9000: 2000 What’s New? Quality Management System Qualitätsmanagementsystem Kontinuierliche Verbesserung Continuous Improvement C U S T O M E R R E Q U I R E M E N T S Management Responsibility Management of Resources Input Measurement Analysis Improvement Product Realization Output Product Service S A T I S F A C T I O N C U S T O M E R

ISO 9000: 2000 What’s New? Four Main Chapters • Management responsibility (General requirements, objectives, planning, quality management system, management review) • Management of Resources (Human resources, information, infrastructure) • Product Realization (Design and development, purchasing, production) • Measurement, Analysis and Improvement (Customer satisfaction, internal audit, monitoring of processes, continuous improvement)

ISO 9000: 2000 What’s New? Important Changes: The Management Review: • The management review now requires a complete set of fact and data based reporting including customer satisfaction data and evidence for improvement • The Management review Output now requires clear statements and action plans for: - Improvement of the Quality Management System and its processes - Resource planning in order to realize the improvements and overall Quality Management System - Improvement of product related items

ISO 9000: 2000 What’s New? Important Changes: Resource Management: • Resource Management now covers: - Training - Work environment - Financial resources Continual Improvement • Active determination of customer satisfaction • Process Improvement based on facts and data (performance indicators) • Evidence that process improvements lead to a better overall company performance

The Matrix Certification t di u n io t A a ic tif r Certificate e C Affiliate Headquarter Affiliate Audit VS has decided to include all OUs in certification audits 2002

The Matrix Certification ce it ud A n la l Audit Report ei v ur S Affiliate Audit Headquarter Affiliate Audit

Summary Important Factors of Successful Process management: • Develop processes across functions (Think process not function) • Think Business Success not ISO 9000: 2000 (ISO 9000: 2000 is only a framework) • Share process knowledge across organizational units • Develop continual improvement platforms • Create standards as far as possible and reasonable • Connect Processes to measurable Indicators • Include Process Performance reporting in normal performance report structure • Facilitate systematic improvement by providing resources included in organization budget