PERPAMSI Persatuan Perusahaan Air Minum Seluruh Indonesian Water

PERPAMSI Persatuan Perusahaan Air Minum Seluruh Indonesian Water Supply Association www. perpamsi. org INDONESIAN EXPERIENCES IN ISO 9001: 2000 CERTIFICATION OF PUBLIC WATER UTILITY SERVICES REGIONAL WORKSHOP TO DISSEMINATE WATER SUPPLY AND SANITATION STANDARDS OF QUALITY OF SERVICES 24 – 27 July 2007, Kampala / Uganda Dr. Werner BRENNER, Advisor Finance & Management

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 WBI/In. WEnt, Kampala, 24 -27 July, 2007 - ISO Workshop

A: THE INDONESIAN WATER SECTOR Facts about PERPAMSI, the Indonesian Water Supply Association Ø Established: Ø 1972 by the Ministry of Home Affairs Ø Organization: Ø Ø Head quarter in Jakarta (30 employees) 27 Provincial offices to coordinate activities Ø Members: Ø Ø All 328 Indonesian public water utilities Around 100 extraordinary members (suppliers, investors, …) Ø Services: Ø Ø Typical association services to the members, governmental institutions, financing institutions, investors, donors and others Training institution under PERPAMSI WBI/In. WEnt, Kampala, 24 -27 July, 2007 - ISO Workshop

A: THE INDONESIAN WATER SECTOR (cont) WBI/In. WEnt, Kampala, 24 -27 July, 2007 - ISO Workshop

A: THE INDONESIAN WATER SECTOR (cont) Ø Water utilities are owned by local governments and controlled by local parliaments Ø Coverage rates for piped water supply Ø around 35% for urban areas and Ø around 20% for overall Indonesia (ca. 6, 5 million household connections are installed) Ø Urban water supply provided by 328 water utilities Ø Only 5% of water utilities have more then 50, 000 connections Ø 60% have less than 10, 000 connections Ø Less than 25% of PDAMs considered to be “financially viable” Ø Overall coverage rate for sewerage services < 1% WBI/In. WEnt, Kampala, 24 -27 July, 2007 - ISO Workshop

A: THE INDONESIAN WATER SECTOR (cont) WBI/In. WEnt, Kampala, 24 -27 July, 2007 - ISO Workshop

A: THE INDONESIAN WATER SECTOR (cont) WBI/In. WEnt, Kampala, 24 -27 July, 2007 - ISO Workshop

B: OUTSET SITUATION THE SUSTAINABILITY CHALLENGE • Int e • Po rmitte n o • An r qual t supp i g • Un ry cus ty wat ly e will ing tomers r nes s to pay Assets deteriorate & expansion is difficult if full economic costs are not recovered. Service to the poor & wastewater suffer. Cycle of Physical & Commercial Decline ts sse ity a ing uctiv t iora prod ating r ete ing per • D clin o e ing • D reas • Inc ts cos • Low tariffs • Declining revenues • Unpaid bills • Inability to access financing • Declining credit rating and investment WBI/In. WEnt, Kampala, 24 -27 July, 2007 - ISO Workshop

B. OUTSET SITUATION (cont) 1. Human Resources 2. 1. 1 Low level of the employees’ competence 2. Equipment 2. 1 Old treatment plant equipment 2. 2 Equipment breakdown development (Fig. 1) No. of Problems 42 38 36 35 2004 - 2005 Fig. 1 Equipment Breakdown WBI/In. WEnt, Kampala, 24 -27 July, 2007 - ISO Workshop

B. OUTSET SITUATION (cont) 3. Water Treatment Plant System (Cicokol WTP; 1. 100 liter per sec. ) 4. 3. 1 No standard operating procedures in place 5. 3. 2 Low efficiency & effectivity in the operation of the WTP (Fig. Hour 2) 2004 – 2005 Fig. 2 Breakdown Time for Maintenance WBI/In. WEnt, Kampala, 24 -27 July, 2007 - ISO Workshop

B. OUTSET SITUATION (cont) 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) ppm 2. 86 0. 99 2. 63 0. 85 2. 35 0. 78 2. 15 Standard 0. 6 ppm Standard 1. 5 NTU 2004 - 2005 Fig. 3 Water Turbidity 2004 - 2005 Fig. 4 Water Chlor Residue WBI/In. WEnt, Kampala, 24 -27 July, 2007 - ISO Workshop

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 WBI/In. WEnt, Kampala, 24 -27 July, 2007 - ISO Workshop

C. OBJECTIVES FOR THE IMPLEMENTATION OF ISO 9001: 2000 (cont) C U S T O M E R Management Responsibility R E Q U I R E M E N T S Resource Management Input C U S T O M E R Measurement, Analysis & Improvement Product Realization Output Product PROCESS APPROACH WBI/In. WEnt, Kampala, 24 -27 July, 2007 - ISO Workshop S A T I S F A C T I O N

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 WBI/In. WEnt, Kampala, 24 -27 July, 2007 - ISO Workshop

D. SCOPE & PROCESS OF ISO CERTIFICATION (cont) 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 WBI/In. WEnt, Kampala, 24 -27 July, 2007 - ISO Workshop

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 WBI/In. WEnt, Kampala, 24 -27 July, 2007 - ISO Workshop

D. SCOPE & PROCESS OF ISO CERTIFICATION (cont) 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 WBI/In. WEnt, Kampala, 24 -27 July, 2007 - ISO Workshop

D. SCOPE & PROCESS OF ISO CERTIFICATION (cont) Fig. 5 Implementation Steps Table No. DESCRIPTION TOTAL MONTH A. FIRST STAGE Management Commitment Member of Work Group Socializations Scope of Certification APR MAY JUN JUL AUG SEP 0. 5 4. MAR 0. 5 3. PEB 0. 5 2. JAN 0. 5 1. 2005 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 WBI/In. WEnt, Kampala, 24 -27 July, 2007 - ISO Workshop OCT NOP DES

D. SCOPE & PROCESS OF ISO CERTIFICATION (cont) Fig. 5 Implementation Steps Table No. DESCRIPTION A. THIRD STAGE TOTAL MONTH 2005 JAN PEB MAR APR MAY JUN JUL AUG SEP 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 - WBI/In. WEnt, Kampala, 24 -27 July, 2007 - ISO Workshop OCT NOP DES

D. SCOPE & PROCESS OF ISO CERTIFICATION (cont) Fig. 6 ISO 9001: 2000 CERTIFICATE WBI/In. WEnt, Kampala, 24 -27 July, 2007 - ISO Workshop

E. PROBLEMS & SUCCESS FACTORS I. PROBLEMS DURING THE IMPLEMENTATION PHASE 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 WBI/In. WEnt, Kampala, 24 -27 July, 2007 - ISO Workshop

E. PROBLEMS & SUCCESS FACTORS (cont) II. KEYS SUCCESS FACTORS 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 WBI/In. WEnt, Kampala, 24 -27 July, 2007 - ISO Workshop

F. BENEFITS OF ISO 9001: 2000 CERTIFICATION Internal : 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 anticipated better and better 3. Appreciation from external parties to the company’s existence are increased. WBI/In. WEnt, Kampala, 24 -27 July, 2007 - ISO Workshop

F. BENEFITS OF ISO 9001: 2000 CERTIFICATION (cont) Before 45 40 35 30 25 20 15 10 5 0 Nov. '04 After Jan. '05 Jun. '06 Aug. '06 Oct. '06 Dec '06 Fig. 7 Equipment Breakdown WBI/In. WEnt, Kampala, 24 -27 July, 2007 - ISO Workshop

F. BENEFITS OF ISO 9001: 2000 CERTIFICATION (cont) After Hour Before Fig. 8 Breakdown Time Maintenance WBI/In. WEnt, Kampala, 24 -27 July, 2007 - ISO Workshop

F. BENEFITS OF ISO 9001: 2000 CERTIFICATION (cont) After Before Fig. 9 Water Turbidity WBI/In. WEnt, Kampala, 24 -27 July, 2007 - ISO Workshop

F. BENEFITS OF ISO 9001: 2000 CERTIFICATION (cont) ppm Before After Fig. 10 Water Chlor Residue WBI/In. WEnt, Kampala, 24 -27 July, 2007 - ISO Workshop

F. BENEFITS OF ISO 9001: 2000 CERTIFICATION (cont) Fig. 11 Audit Findings GRADE/No. OF FINDINGS KIND OF AUDIT DATE OF AUDIT Final Audit TOTAL MAJOR NC MINOR NC RC SFI x. LRQA 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 Audited by Lloyd’s Register Quality Assurance Note 1. 2. 3. 4. 5. : Major NC Minor NC RC SFI x. LRQA = = = Major Non Conformity Minor Non Conformity Requires Correction Scopes for Improvement Issue for Follow-up by LRQA at next visit WBI/In. WEnt, Kampala, 24 -27 July, 2007 - ISO Workshop

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 WBI/In. WEnt, Kampala, 24 -27 July, 2007 - ISO Workshop

THANK YOU! WBI/In. WEnt, Kampala, 24 -27 July, 2007 - ISO Workshop