15.1 Introduction Organisations looking to develop their business operations through the current volatile economic climates need to establish clear objectives as to how the various elements of the business need to perform to ensure continuing growth and viability. In order to achieve these objectives it is further imperative to have mechanisms in place to monitor performance and also to provide a process by which change can be implemented in those areas of activity which need strengthening. Total Quality Management (TQM) is a management tool which provides that opportunity. In its broadest sense TQM provides a business system by which the whole organisation can be harnessed to meet the needs of customer requirements. It is important to emphasise that TQM is not merely a technical standard but encompasses both the technical and business operations. The fundamental requirement for a successful TQM system is to have good management practices, TQM alone cannot provide this and any systems implemented will only ever be as successful as the staff involved. The purpose of this chapter is to describe the key elements that need to be considered when setting up a Total Quality Management system. It provides information on the typical range of quality systems that may already be in place within an organisation and looks at how these can be used to bring together all of the requirements necessary to achieve a TQM system. It further explains the key steps necessary to begin development of the system and the implementation process required. Finally the key monitoring processes needed to confirm successful implementation and for continued improvement and development of the system are explained. 15 Total quality management D. J. Rose, Campden and Chorleywood Food Research Association 15.1.1 Defining quality Despite the preponderance of quality assurance texts, quality standards, and definitions of quality, many people are still confused by the term quality. In the early incarnations of quality management, quality assurance and quality control were often used synonymously. However the importance of differentiating between reactive quality management (quality control) and pro-active quality management (quality assurance) was quickly realised. More importantly the benefits to be derived from the wide ranging implications of quality assurance were soon realised and capitalised upon by practitioners. The concept of TQM takes the now more familiar quality assurance requirements, as exemplified by BS5750/ISO9000, one step further and seeks to view ALL operations and processes that a company utilises as being inherently important to their overall business performance and quality of service parameters. According to BS 7850, Total Quality Management may be defined as follows – ‘Management philosophy and company practices that aim to harness the human and material resources of an organisation in the most effective way to achieve the objectives of the organisation.’ On a slightly different tack, Margaret Thatcher once paraphrased quality very succinctly, ‘The combinations of features in a product which ensures that customers come back for a product which does not.’ However, it is important to realise that the objectives of the organisation can be multifaceted and reflect other primary business needs as well as the more obvious product quality issues. TQM systems should therefore be capable of incorporating objectives as diverse as customer satisfaction, business growth, profit maximisation, market leadership, environmental concerns, health and safety issues and reflect the company’s position and role within the local community. One over-riding principle must be for the TQM system to ensure compatibility with the needs of current legislation in all its guises – food safety, business practices, environmental and waste, employment rights and health and safety. The need to meet the ever-increasing demands of customers for improved reliability and quality of product have fuelled the need to consider TQM systems. Supplying ‘just-in-time’ manufactured products with short shelf-lives to the retail outlet in a reliable and dependable manner, pressure on margins to provide cheap yet wholesome foods, and the continuing need to provide evidence of safe food production have all added to the requirement to consider the totality of the chilled food business operation. Unfortunately for staff tasked with considering TQM systems there has been much confusing literature produced on the subject. Various titles have been used to describe TQM systems, e.g. Continuous Quality Improvement, Total Quality, Total Business Management, Company Wide Business Management, Cost Effective Quality Management, Integrated Management Systems. Suffice it to say that the objectives of the various schemes have all been synonymous and I refer the reader back to the definition of TQM given earlier from BS 7850. The challenge to practitioners of TQM is usually not with the title given to the 430 Chilled foods system, but rather to understanding their business well enough to identify all of the key elements required to be set up and managed within the umbrella of TQM. This analysis of the key business processes may be achieved by a variety of different means. Most critical to the analysis is the ability to collect suitable and useable data which reflects the process. The use of data collection forms, performance data, market research, productivity information or financial data may all be appropriate. Analysis of the data to extract useful and usable outputs may be performed by a variety of different techniques. BS 7850 recommends affinity diagrams, brainstorming sessions, cause and effect diagrams, flow charts and tree diagrams to analyse non-numerical data. Control charts, histograms, Pareto diagrams and scatter diagrams may be useful for numerical data. By understanding all of its business processes companies are able to define the process, implement controls, monitor performance and measure improvements. This is the fundamental basis of Total Quality Management. 15.1.2 Quality assurance systems The foundation for any quality system is to be found in the fundamental principles of Good Manufacturing Practice (GMP). The technical requirements for GMP for chilled food operations are addressed elsewhere in this book. There are also many guidelines available for the manufacture, handling and preparation of chilled foods (Department of Health, 1989; Institute of Food Science and Technology, 1990; Chilled Food Association, 1995, and 1997; National Cold Store Federation, 1989). All focus on the key technical requirements for safe, hygienic, good manufacturing practices, allied to good storage, handling and distribution practices. In this context, these can be considered the fundamental technical objectives or standards to be achieved. Currently a large number of targeted quality assurance systems have found favour throughout the Chilled Food Industry. The most prevalent of the formal quality systems is still the BS EN ISO 9000 (BS5750) suite of standards incorporating specifically BS EN ISO 9002 for production facilities and BS EN ISO 9001 for production operations incorporating new product development activities. ISO 9000 systems provide the advantage of laying down formal management controls for production activities, but also can easily be extended to other critical business activities such as purchasing, sales and distribution. Many operations have already extended their ISO 9000 systems into a TQM system by encompassing their other critical business processes. Manufacturing production sites have now also been forced to consider the requirements necessary to meet the requirements of Hazard Analysis Critical Control Point (HACCP) systems based on Codex Alimentarius definitions. As well as providing the key control measures necessary to understand the mechanics of producing safe food, HACCP systems also provide the basis around which to build production control systems and to ensure product quality Total quality management 431 in the operation. Documentation of HACCP plans to meet the seven fundamental principles of HACCP as laid out by Codex Alimentarius is also required. These documented plans, together with associated operational procedures, records of operation and evidence of maintenance of the critical control points, often form enough of a basis for production activities to be controlled and managed by using the HACCP plans as a quality system – see principle 7: ‘Establish documentation concerning all procedures and records appropriate to these principles and their application.’ More recently businesses have needed to consider the impact of their operations on the environment. Moves to standardise environmental control and management have been formalised within ISO 14001. This international standard ‘Environmental Management Systems – Specification for Guidance and Use’ has strong links to ISO 9001 and covers issues such as policy statements, process control, system structure, training, awareness and compe- tence, system documentation, checking and corrective action, preventive action, record keeping, system auditing and management review. The stated aim of ISO 14001 is to ‘provide organisations with the elements of an effective environmental management system which can be integrated with other management requirements’. This approach is an obvious lead in to the concept of incorporating environmental objectives within a TQM system. Yet more recently, safety systems have been targeted for incorporation within the suite of quality system functions and BS 8800 (‘Guide to Occupational Health and Safety Management Systems’) provides a framework within which to manage safety systems and safety training activities. Given the increasing importance of staff occupational safety and the need to minimise exposure to potential litigation, manufacturers are well advised to treat this area of activity seriously. Companies may also have an interest in other systems related to staff training – i.e. the Investors in People standard within the UK, organised through local Training and Enterprise Councils, which requires proper evidence of structured training programs for staff, records of all training activities and clear benefits being derived from both staff and employers from their training programme. In a critical key development the British Retail Consortium (BRC) has now issued its core Technical Standard for Companies Supplying Retailer Branded Food Products. This standard is being used by a large number of UK retailers as the definitive standard for suppliers and terms of business are being agreed which include the requirement for companies to meet this standard. The BRC standard itself focuses on a large number of essential and recommended good manufacturing practices and is underpinned by the need to establish supporting management systems to back up these manufacturing practices. In essence 6 key areas are involved, HACCP systems, quality management systems, factory environmental standards, product control, process control and personnel. Implementation of the standard is being handled through third-party inspection bodies whose remit is to ensure compliance of the operating site with the 432 Chilled foods standard. In some cases, as for the European Food Safety Inspection Service (EFSIS), the inspection bodies have incorporated the BRC standard within their own inspection standard to provide and even more rigorous examination of the operating site. All of the quality systems mentioned above have essential core elements and similarities. Most importantly the critical elements of control can easily be related to the core business functions of the site. These, taken hand in hand with the key legal, safety and environmental control measures all sites are obliged to adopt, offer a comprehensive and complete set of frameworks within which to develop a total quality management system. 15.2 The scope of a quality system This section summarises the essential business processes to be considered when addressing Total Quality Management systems concerned with the production of chilled foods. The next section deals with the necessary administrative detail of developing the quality system. 15.2.1 Raw materials, purchasing and control ? Raw and packaging materials should be purchased to agreed specifications, and from suppliers capable of achieving those specifications. Suppliers should be audited for quality and safety. ? Raw materials should be stored under hygienic conditions that prevent contamination by microorganisms, insects and other pests. ? Stock control systems should be used for minimising storage times. Coding systems should be used to ensure traceability. ? Inspection of raw and packaging materials should complement the suppliers’ quality systems. ? Control and release should be under the responsibility of a competent technical person. ? Non-conforming raw materials should be recorded and investigated to identify and rectify problems. 15.2.2 Process control ? The HACCP approach should be used to identify critical control points as part of developing process specifications and to determine monitoring programmes. ? The HACCP plan must be suitably verified and the control points demonstrated to be sufficient to control the product. ? The arrangement of plant should minimise the likelihood of cross- contamination. ? Plant should be hygienically designed. Total quality management 433 ? Plant cleaning schedules should be developed and implemented. ? Critical measures such as time, temperature and quantity must be recorded throughout the production process. ? Sampling regimes must be set up to measure product quality and safety throughout the production process. ? Contingency plans need to be in place to cover any possible major safety issues that may arise. 15.2.3 Premises ? Premises should be constructed to minimise the risk of contamination. ? Premises should be maintained to a hygienic standard commensurate with the degree of risk. ? Where used, high care areas must be suitably constructed and all necessary control measures for their operation implemented. ? Suitable waste disposal facilities need to be in place. 15.2.4 Quality Control ? Clearly defined product specifications and quality standards should be used to supplement HACCP analysis in identifying non-safety quality issues. ? Product quality (in terms of sensory characteristics) should be defined to meet the specifications given above, and agreed with clients. ? Product quality should be verified to ensure acceptability before release and on-going monitoring checks should be in place to prevent major defects arising. 15.2.5 Personnel ? Personnel should be trained in hygienic practices and other quality requirements of the job. ? High standards of personal hygiene are essential. ? Clothing appropriate to the task is required. ? Appropriate sanitary facilities are required. ? Medical screening is required. 15.2.6 Final product ? Inspection must take place to determine conformance with the product specification and freedom from any foreign body contamination. ? A system for isolating non-conforming product is required. ? The type and level of inspection should be determined from HACCP. ? Critical testing and inspection should be done by competent laboratories. ? Where technically important, or for legal reasons, checks on packaging should be done. ? Records of inspection must be kept. 434 Chilled foods ? Shelf-life validation is required. ? A system for monitoring complaint trends is required. ? Product release should be by positive approval. 15.2.7 Distribution ? Arrangements must be made to maintain product integrity in the distribution chain. ? The level of batch traceability must be commensurate with the risk of recall. ? A recall system should be developed and tested. The above list is by no means comprehensive, but indicates the breadth of considerations to be addressed in chilled food operations. The task is complex and requires a high degree of skilled management. It should be developed and implemented as part of cohesive quality system. 15.3 Developing a quality system Developing a quality management system to meet the requirements of your business is a complex task. Not only do the elements described above need to be considered, but also such factors as management responsibility, documentation and auditing. The standard model for quality systems for some years now has been the ISO 9000 series of standards, the international standards for quality systems. The general applicability of ISO 9000 to the food industry has been demonstrated by its successful application in many production facilities. However ISO 9000 has suffered from criticism over the years due to its unfriendly nature and the perception that it does not lead to quality improvement, only control and standardisation of processes. Consequently quality management, as exemplified by ISO 9000, has often been seen as being on a parallel track to business management, and not as an all embracing TQM system. Forthcoming changes to the ISO 9000 standard, due to be published in the year 2000 are believed to address this failing by focusing the system back towards quality improvements, process development and customer satisfaction. The above comments notwithstanding, the fundamentals of ISO 9000 still provide the basis around which to start the development of the quality system, a TQM system being built by encompassing all of the other business process requirements onto this model. 15.3.1 Management responsibility The importance of senior management commitment to the quality system cannot be over-emphasised. If quality is established as a board room priority, all other parts of the organisation will follow and become intimately involved in the process. Similarly, by defining key responsibilities for all levels of activity, Total quality management 435 those staff whose actions can influence the quality of the food or the process under which it is manufactured can be identified and made aware of their responsibilities. This is so that errors do not occur through it not being clear who is responsible for various actions, for example, who monitors a chill room temperature, or who should carry out a particular quality control test. Senior management must review the continuing effectiveness of the quality system at periodic intervals. Key information sources would include data from internal audits, non-conforming product records, quality control records on conformance to specifications, and customer complaints trends. The second key role of the management review process is to establish mechanism for improvements and new initiatives. The evaluation of key data such as quality markers, which can be used to measure client satisfaction, and performance measures, which can be used to measure the efficiency of the delivery process, should be encouraged. Based on the analysis of these data, together with the data mentioned above, senior management can identify business processes which would benefit from improvement or re-design. 15.3.2 Documentation of the system Effective documentation of the procedures and actions required to achieve the required quality is an essential part of the quality system. Such documentation can be used for reference and for training purposes. It reduces the risk of misunderstandings arising from oral communication. All documents should also be controlled so that personnel do not work from obsolete documents. There must be a means of circulating new procedures and withdrawing superseded ones, and a controlled means of making changes to procedures. Staff discipline with documentation also needs to be instilled so that only the current versions of documents are used. 15.3.3. Customer requirements A clear understanding of customer requirements is essential for any business operation. Mechanisms to ensure that sufficient information is captured from clients prior to manufacturing, need to be set up. These will include fundamentals such as manufacturing details, supplier arrangements, product specifications, delivery times, quantities and packaging. However consideration must also be given to other matters such as legal requirements, environmental, employee and safety considerations. 15.3.4 Raw material control and supplier quality assurance The quality of raw materials and the suitability of packaging materials has a considerable effect on the final quality of chilled foods. However, relationships with suppliers go well beyond these criteria and extend to the quality of service, prices and financial stability of the supplier. These factors must be combined 436 Chilled foods together to achieve a smooth and profitable relationship between vendor and purchaser. The objective must be to build a confident partnership between the two so that the purchaser can rely on the vendor as much as on ‘in-house’ departments. There are a number of stages to go through in achieving this objective. It should be noted that all purchased materials which can affect product or service quality should be included in this programme. Often capital and services items (e.g. motors, pumps etc.) are omitted, and faults are only detected after installation. Clearly this does have an impact on the overall efficiency and quality of the operation and should be included. Supplier quality policy There should be a stated and preferably written policy. This usually takes the form of a summary of the principles involved: ? mutual co-operation; the partnership ? prior contractual understanding; agreeing specifications ? methods of evaluation – audit – inspection at source – inspection on receipt (the policy is to accept only material meeting the requirements) ? plans for settling disputes ? feedback on performance ? vendor responsible for delivery to standard. Contractual understanding There is little point in trying to develop a partnership with suppliers unless there is a clear understanding about the objectives to be achieved. This usually takes the form of a contract covering for example, material specifications, delivery parameters, responsibilities for quality including those for verification, access to supplier, procedures for settling disputes. It is important that all these parameters are agreed and verified prior to signing the contract and entering a supplier onto an approved list. List of approved suppliers The purchaser should maintain a list of approved suppliers. Lying behind this should be a set of procedures which describe the stages of approval. There are two main criteria to be considered here: 1. financial capability and stability 2. ability to meet specification. The latter can be assessed in a number of ways: ? auditing supplier’s quality system ? vendor’s previous performance Total quality management 437 ? vendor’s reputation ? tests on representative samples. Auditing suppliers The objective here is to establish the supplier’s ability to meet agreed requirements. Auditors should be trained to conduct this activity promptly and efficiently. The auditors observe the manufacturing facilities, buildings environment, plant, quality procedures and implementation of such procedures. Other evidence to collect includes management attitudes, workforce attitudes, quality control records and so on. Often auditors will also look at financial and technological aspects. Feedback on performance It is absolutely essential in building the partnership that the vendor receives prompt and accurate feedback on performance. Performance data can be collected from a number of sources. ? Raw material conformance: sources of information here include the vendor’s own inspection records, incoming inspection records. Most non-confor- mances in this area are clear and are well ‘flagged’ because usually they result in a delay in deliveries or production. ? Process conformance: non-conformances here are less easily detected but at least should be reviewed during audit. It may be written into contractual requirements that process non-conformances are communicated to the purchaser. ? Procedural non-conformance: similar comments appertain here as for process non-conformance. ? Raw material unfit for use: this is the worst scenario where a non- conformance is not detected until it fails either on the production line or in distribution or in use (complaints). The impact is usually severe, affecting ability to sell the final product. Despite the severity of the problem, it is often difficult to gather sufficient evidence to inform the vendor of the fault. Feedback should be given on a regular basis so that each non-conformance is not seen by the vendor as a ‘complaint’. The main message here is to transmit good as well as bad news. Where possible, evidence should be incontrovertible. The best evidence is records and samples. Regular meetings with suppliers will ensure that the positive feedback is given. This helps to support the partnership when exceptional communication of non-conformances is necessary. 15.3.5 Process control All aspects of the production of chilled foods having a direct bearing on the quality of the final product must be specified, documented and recorded to ensure that failures due to inadequate control are eliminated. Critical control point monitoring as identified by HACCP forms part of this requirement. Action 438 Chilled foods when results are outside specifications must be clearly identified with responsibility allocated. The HACCP principle should be used throughout the production process and include raw materials and final storage and distribution. It can be used for all potential hazards including inadequate quality as well as safety. HACCP includes the assessment of potential hazards, prescribes for the elimination of available hazards and sets tolerances for the hazards that cannot be eliminated in the processing of a food. It defines the appropriate control measures, the frequency of their application, the sampling programme, the specific tests to be applied and the criteria for product acceptance. Since HACCP is an ongoing dynamic process, analyses will need to be reviewed in the light of new hazards and changes in the process parameters. HACCP has the potential to identify areas of control where failure has not yet been experienced, making it particularly useful for new operations. The following definitions are used in HACCP: ? Hazard analysis is the identification of potentially hazardous ingredients, storage conditions, packaging, critical process points and relevant human factors which may affect product safety or quality. ? Critical control points (CCP) are the processing factors of which loss of control would result in an unacceptable food safety or quality risk. Carrying out a HACCP analysis To carry out a HACCP analysis, a formalised and structured approach is needed. A broad base of information is required and will therefore require specialist knowledge from many disciplines, since safety and quality assurance cannot be categorised by a single discipline. The first stage of an analysis is to obtain a detailed flow diagram for the process under consideration, including methods and schedules of production, preparation and transport of raw materials. Many of the considerations will be influenced by issues specific to the factory. The second stage of an analysis identifies the essential characteristics of the product and its use, enabling definitive conclusions to be drawn about the hazards or potential risks which will threaten either the consumer or the product. Consideration is given to food storage conditions, formulation of the product, the packaging used, the expected customer handling practices and the target consumer group. The third part of an analysis is consideration of all the stages in the process, taking into account realistic process deviations. Critical stages in the process are identified which must be controlled adequately to assure safety – the critical control points (CCP). A judgement of risk must be made using one of three basic methods: probabilistic, comparative or pragmatic. The choice of method depends upon circumstances and the basis for any judgement should be recorded. Such judgements require a high degree of expertise and experience and should only be made by suitably qualified people. Ideally, the opinion of more than one ‘expert’ should be sought. If process details are incomplete, the Total quality management 439 most unfavourable assumptions must be made unless, for example, there is a long, proven history of the raw materials presenting no hazard to the process or the product. The final stage of an analysis is to devise standards for and effective procedures to monitor critical control points and appropriate corrective action as mentioned earlier. Monitoring of critical control points Monitoring of CCP may be best accomplished through the use of physical, microbiological and chemical tests, visual observations and sensory evaluations. Monitoring procedures, including those which take the form of a visual inspection only and do not involve measurements, should be recorded on suitable checklists. These checklists should show details of the location of the CCP, the monitoring procedures, the frequency of monitoring and satisfactory compliance criteria. For chilled foods, the cleanliness of equipment is a CCP. Therefore a hygiene maintenance schedule must be devised that specifies what should be cleaned, how it should be cleaned, when it should be cleaned and who should clean it. When monitoring of CCP takes the form of inspection, particular attention should be given to temperatures of food, hygienic practices and techniques of handling foods by workers, whether employees are ill or have infections which can be transmitted to the food and opportunities for cross-contamination from raw to cooked foods. Control options also include arrangement of plant to minimise cross contamination, building maintenance and cleaning, and staff training. 15.3.6 Inspection and testing From HACCP, a schedule of testing for raw materials, intermediate and final products is developed. Methods of tests must be defined, responsibility for testing and the acceptance criteria drawn from appropriate specifications. At each stage, product should not be released until inspection is complete. If release takes place earlier, a traceability system must exist for recall purposes. The time required to complete microbiological tests on chilled product is problematical here. However, most microbiological tests are used to monitor the success of process control rather than for testing product characteristics. Untested, tested, approved or rejected materials need to be clearly marked to avoid any possibility of confusion. All test equipment used to demonstrate compliance with a defined specification or to control a critical process should be of known accuracy. Required measurements should be identified, the measuring equipment calibrated at defined intervals, against acceptable physical or nationally recognised standard references. Calibration methods should be described and adhered to, and the calibrated equipment must be identified as such. Records of calibration should be kept, and if a calibrated instrument is found to be inaccurate, then a designated person must review the situation and decide what action should be taken in respect of materials previously measured with that 440 Chilled foods instrument. Where necessary, critical tests should be performed by a suitably accredited laboratory, either in-house or external. Any product which is found to be outside specification should be segregated to prevent inadvertent use. The product should then be destroyed, re-worked, or re-graded. In exceptional circumstances, customers may be prepared to accept the product, but not if safety is in question. Re-work must be controlled strictly. Causes of non-conforming product should be identified and action taken to prevent recurrence. Complaint trends should also be monitored and corrective action taken as appropriate. 15.3.7 Handling, storage, packaging, delivery This is extremely important for chilled foods. Precautions must be taken to protect product quality throughout production and the chill chain. Hygiene precautions, including vehicles and chill storage, pest control and restrictions on access would be included here. The legislative requirements for ‘food handlers’ and legal constraints on labelling, date coding and food contact materials should be addressed here. The means of temperature control, monitoring and recording are critical. Determination and control of shelf-life through stock rotation must be included. Decisions on the extent of, and method of, traceability must be reached with respect to the risks of recall. A fully documented and workable recall system must be implemented. The system should extend to distribution centres, the trade and in extreme cases, consumers. The recall plan must be tested to ensure its effectiveness. 15.3.8 Records An effective record system is essential. The control of records, including their identification, safe storage, retrieval and disposal, should be defined. It should be clear when records can be disposed of, and who is responsible. The most important records are those which demonstrate that what has been specified has, in fact, been achieved. These include process control and inspection records. However, in order to satisfy the legislative requirement for ‘due diligence’, other evidence will be required such as records of internal audits, management review, supplier audits, HACCP records, temperatures in distribution, corrective action, cleaning and training. 15.3.9 Quality audits A scheduled system of internal quality audits is essential to ensure that all procedures are implemented and working effectively and that instructions are written down and followed. These audits are an effective management tool for monitoring the success of the quality system and ensuring that everyone is working to the system. Total quality management 441 System audits should be undertaken by trained personnel independent of the area being audited. Audits are carried out by a process of observation, interview and examination of records. Any non-compliances should be recorded and referred to the responsible manager for timely corrective action. A follow-up to ensure that the action has taken place should be carried out, and records of the action kept. The results of audits should be reviewed by senior management. The audit schedule should cover all aspects of the quality system and include compliance with legislative requirements and voluntary Codes of Practice. 15.3.10 Training All staff must be trained to fulfil their responsibilities with regard to tasks undertaken which affect quality. Training needs should be reviewed, the needs identified should be fulfilled and records kept. Staff education and training is often a most useful option for control of hazards such as microbial contamination. In addition to hygiene training, there is another special training requirement for the food industry to be considered here: training for sensory analysis. An attempt to ensure that judgement of product quality in this respect is objective must be made. 15.4 Implementation Implementation of any quality initiative is difficult. Change, often perceived to be change for changes sake, is not always acceptable to staff. It is therefore imperative that the correct empowerment is given to the implementation and that it is introduced and explained to staff in the right manner. 15.4.1 Chief executive commitment The ramifications of a TQM strategy are too large for them to be considered at anything other than the highest levels within a company. Ideally the idea to implement the system should come from the chief executives themselves. Alternatively it may come from other sources. Whatever the source it is not worth starting the exercise until the right level of approval and commitment is achieved. Once the senior management are on board with the idea they must throw their whole weight behind the initiative, any perceived weaknesses will be exploited by opponents of the scheme. 15.4.2 Steering group As a first step, set up a steering group to manage the implementation programme. This group should consist of staff drawn from each of the principal areas of operation in the company: this should include sales and 442 Chilled foods marketing, purchasing, production, distribution, technical and finance. The group should be headed by a member of staff with sufficient managerial experience and should be accountable to the board or directly to the chief executive. The steering group should also appoint the person to be designated as the ‘management representative’, whoever named, who will be responsible for the maintenance and control of the system in the future. This person is concerned with ensuring that documentation proceeds smoothly and that documentation is controlled. He/she is also responsible for the internal audit system. This so-called ‘Quality Manager’ may have other duties within the quality system, but this should not be to the detriment of ‘ownership’ of the system by all the constituent parts. 15.4.3 Initial status The steering group should arrange for the two key activities to be carried out: (a) a definition of current business processes carried out in all parts of the business and (b) based on this information define the scope within which you wish to implement the TQM system. This is a key decision and must be based on a sound understanding not only of the essential processes which support delivery of your products to your customers, but must also understand all of the support functions which help to maintain that delivery mechanism (e.g. finance, maintenance). Once the scope of activity is defined it is imperative to carry out an exercise to establish the level of benefit that may be obtained from the introduction of the TQM system. Typically this can best be achieved by carrying out a quality costing exercise. Quality costing will determine the operational costs of not doing things right, such as wastage in manufacturing, loss due to non- conforming product, down-time on equipment. Based on the findings of this exercise it is possible to estimate the possible company wide benefit of introducing the quality system. These potential savings can then be reviewed by senior management, and a firm commitment to establish the system made. If necessary the scope of the TQM can be reviewed at this point to ensure that the areas covered will lead to maximum return. 15.4.4 Planning The steering group should draw up the implementation sequence and agree timescales with all appropriate parties so that a plan can be made. The plan must cover all elements of the implementation including process analysis, documentation, implementation, training and PR elements. The group should monitor the plan of implementation. If there are problems to overcome in achieving the plan, the steering group must be sufficiently senior to overcome blockages. If the plan cannot be achieved for unavoidable reasons, the steering group must give an account of this to the chief executive. Total quality management 443 15.4.5 Quality policy It is important that the chief executive writes a quality policy for the company. This can be anything from a relatively simple statement to something more complex. At its simplest it states that the company is dedicated to meeting customer requirements. If it is the intention to work to a recognised quality system, then a statement to the effect that the company wishes to comply with the requirement of, for example, ISO 9002 should also be included. However, other statements about business culture and objectives can also be included. For example, employee welfare, environmental policies, position in market place and so on, can all be considered. It is best not to make the policy too lengthy or complex. 15.4.6 Briefing It is the steering group’s responsibility to initiate and co-ordinate briefings throughout the project. During the initial phases, this would be an announcement (from the chief executive) about TQM or ISO 9000 explaining what it is and the reasons for pursuing the course of action. Such briefing should be to all employees, but would be more detailed for some depending on the level of involvement envisaged. Also the substance of the briefing will depend on the seniority of the audience. It is best to keep the briefings short and to the point initially; more detailed training can follow later. A big ‘launch’ package with trumpets blaring is not the best course. Small and informed focusing on the facts, the importance of the initiative and not underestimating the amount of work involved will get the message home. The seniority of the person carrying out the briefing speaks volumes about the importance of the mission. 15.4.7 Structure of the quality system It is essential that the structure of the quality system is agreed at an early stage. This is best embodied in the documentation. There should be three levels to the documentation, although for a small company this may be kept under one cover. The three levels are: 1. policies 2. procedures 3. work instructions. Policies should be used to state the company’s intent with respect to key elements of the system, e.g. policies with respect to purchasing arrangements or staff training. Procedures will form the bulk of the system and will provide the detailed instructions as to how principle operations are carried out. These form the bible from which the company will be expected to operate and will be judged (audited) against. 444 Chilled foods Work Instructions provide the ‘shop-floor’ level of instruction needed by staff. These should be formulated so that anyone coming to a job for the first time can, with a small amount of training, carry out the job effectively. Examples of work instructions could be how to make out an invoice, a purchase order or a customer order. Other examples include those in production for the basic operation of a machine or on how to carry out weight checks. All levels of the manual may need to be supported by record forms and these should either be incorporated with procedures/work instructions, or clearly separated off and identified. Setting the structure of the system and document numbering and cross-referencing will save a lot of trouble and retracing later. It is clear that documenting the quality system is a major task and it needs to be thought through clearly. Experience also teaches that the best systems are those written by the staff actually involved in the task being described. This simple device also ensures a wide level of personal involvement with the development of the quality system and helps to provide ownership throughout. 15.4.8 Quality manual(s) The essential parts of this need to be written in draft form at an early stage because it sets in writing the structure referred to above. It usually contains the policy and headline procedures covering each key area of the quality system. It is usually used for overall guidance and should be available to customers. Therefore it should not contain anything of an overly sensitive or confidential nature. Each operational function within the company must agree to the contents of the quality manual as it applies to them. Better still, to gain ownership, if they actually write those parts which apply to them. The organisation and management authority must be clearly defined at this stage. 15.4.9 Quality improvement Once the plan has proceeded far enough to ensure a reasonable understanding of the current business processes, the key task of planning for quality improvements can begin. The mechanisms for achieving this are varied and will need to be tailored to suit individual circumstances. Most critically it is essential to be able to measure the process, either in terms of inputs, outputs or throughputs. BS 7850 (ISO 9004-4) deals with a variety of techniques used for quality improvement and these will need to be considered. It should be remembered that improvements may need long-term solutions and that the implications to other elements of the business must be considered. However, failure to maintain momentum in this area will impact significantly on the usefulness of your TQM system. 15.4.10 Staff Training The system designed will be of no use whatsoever unless sufficient time and resource is allocated to training and educating staff in the requirements of the Total quality management 445 new system. Therefore sufficient time must be allocated and planned into staff training. To meet both new skills training and new working practices, but also any implications that the new TQM ethos may bring to the business, i.e. the need to participate in quality circles, ability to generate improvement suggestions and the need for all staff to be committed to the ideals of the system. 15.4.11 Launch The system can be launched when it is felt that all key elements are in place. These do not have to include all of the proposed quality improvements. Remember the system is designed to be a continually changing system and evolution to new procedures and practices should be a natural progression. Staff should not be concerned if parts of the system are not perfect, again improvements will be identified as the system evolves. It is much more important that the system accurately reflects the current business processes. Often the benefit of TQM comes with time when the quality system is used to collate data and information about the performance of the business and these are used to target and develop improvements. Once launched internal mechanisms to monitor and control changes to the system should be made operational as well (e.g. internal auditing systems, document control and document change systems). 15.5 Performance measuring and auditing As indicated above, once the system is launched it is imperative to measure performance and to seek quality improvements. In fact, the most powerful part of any quality system is its ability to measure performance and gain improvement through corrective action. There are a number of tools available to do this within the quality system. 15.5.1 The internal audit system Regularly measuring compliance with the stated system is a powerful means of determining its effectiveness. The corrective action that ensues from an audit ensures that the system is kept fresh and up to date, reflecting the latest requirements of the company. 15.5.2 The external audit system Once formal certification and approval of the system is sought, external auditors for the inspection body will visit regularly to ensure on-going compliance with the relevant standards. Again useful information and corrective actions can be obtained from these visits. It is also possible that key customers may wish to audit the systems to give themselves confidence in your ability to provide safe 446 Chilled foods wholesome food. These visits combine the benefits of an external inspection of the system with the specific requirements that the customer may have, enabling these requirements to be built into the overall operation. 15.5.3 Non-conforming product Any such incidents must be investigated thoroughly. The reasons for non- conformance must be investigated and corrections made to the quality system and operating processes to prevent recurrence. 15.5.4 Conformance to specification It is necessary not only to ensure that all product conforms to its final specification, but also to determine proximity to target of all measured parameters-both product and process. Clearly this serves two functions: to detect deteriorating trends early, and to detect persistent divergence from target while still within specification. Both may lead to corrective action. 15.5.5 Customer complaints These should be treated like non-conforming product. They should be investigated thoroughly. Any deleterious trends must lead to corrective action. 15.5.6 Quality action initiatives One of the key ingredients of any quality system, often referred to unkindly as the weakest link, is an organisation’s own staff. However, staff also provide a company’s greatest innovative resource. Involvement of all staff with the development of new ideas, process discussion groups and quality circles will enhance process efficiency, detect poor performance and lead to corrective action. 15.5.7 Performance measures By setting performance measures for each key business area, or delivery process mechanism, the efficiency and performance of each key area can be monitored. Improvements, as well as declining performance, can be tracked and all elements of the business put into a measurable framework. Typical performance measures can extend beyond simple productivity related issues and may incorporate elements as diverse as; energy monitoring, waste management, sales lead successes, new product development time and customer satisfaction surveys. All these sources of information on performance should be subjected to senior management review. It is essential that senior management have the opportunity to review and take appropriate action at regular intervals. Total quality management 447 In addition, feedback of performance to staff is an essential means of motivating staff to further improvement. It is quite easy for staff to be involved in performance measurement but not see a clear picture, because they see individual results rather than trends. Such feedback can be in the form of summaries of audits (based for example on a points system), trend graphs for conformance to specification or information on customer complaints. 15.6 Benefits The achievement of total quality management or a good quality system is a never-ending road to improvement. Those who have embarked on this journey have found a number of benefits. 15.6.1 Economic Generally, the operation is more cost-effective. This is achieved by getting it ‘right first time’. There is a reduction in the amount of wasted material; productivity is increased as a result of the orderliness created. There is a reduction in the number of customer complaints. Machine efficiency improves and manufacturing capacity increases. 15.6.2 Marketing By meeting customer needs consistently, there is an opportunity to secure the customer base, and to build sales success. Customers are more confident in the consistency of product and they see a commitment to quality. 15.6.3 Internal A number of benefits are achieved within the operation. Staff morale improves because staff know what is expected of them. There is increased awareness of quality and a commitment to quality. Communication improves and staff are better trained. There is much improved management control with greater confidence in the operation, a reduced amount of ‘fire-fighting’, a uniformity of approach to procedures and a mechanism for continuous improvement. 15.6.4 Fulfilling legislative requirements A good-quality system is of great benefit in demonstrating that attention has been paid to complying with legislative requirements, particularly those of due diligence. The quality system provides documented evidence of its functioning through written procedures, of its success through the records, and of its ability to improve through audits and review. 448 Chilled foods 15.7 Future trends A key change is nearly upon us at this point in time, the BS EN ISO 9000 series of standards are being revised and the new ISO 9000 (year 2000) version will be published in 2000. The new standard will mark a significant change to many areas of the old ISO 9000 standard and will address many of the key criticisms of the old standard. In particular there will be a change to using the process model approach so that individual businesses can suit the application of the standard to their own operations, rather than have the 20 key system elements imposed on them. Secondly the emphasis of the new standard will be firmly routed in the principles of continual improvement and meeting customer requirements. To this end specific requirements will be needed to measure and ascertain performance of the business with respect to quality and the ability to meet its customers’ demands and requirements, howsoever defined. Finally the new standard will include the requirements to effectively communicate with customers and to manage all relevant streams of information passing through an organisation. In summary the essence of the new standard should help to ensure that you keep your existing customers by focusing on their needs, rather than the internal needs of the business. It can also be predicted for the future that the involvement of customers, and particularly retailers, in the production supply chain will continue to grow. Requirements on production facilities to ensure that their products meet the needs of retailers is therefore imperative and the moves towards synergistic business relationships between suppliers and retailers should be encouraged. The continuing use of third party schemes to audit and assess production premises will obviously continue and the current standards being applied will develop with time. The challenge to all involved in this process is to ensure that the inspection standards are demanding but technically achievable to ensure safe and reliable food production. Given the higher publicity now given to any food safety problem by the media, it is an inevitable consequence that governments will react to the media attention by raising standards through increased legislative input. In the UK the launch of the new Food Standards Agency (FSA) will enhance this process. It will be interesting to note whether the FSA will develop a highly prescriptive approach to safety matters or whether it will continue to place the emphasis of control onto manufactures themselves. Finally, the environmental pressures being placed on the whole of society will impact on chilled food businesses like all others. TQM systems which seek to address environmental issues as well as production management issues should be applauded and encouraged. The European Union is keen to progress the ideas of an Integrated Product Policy (IPP) within all manufacturing areas. This approach takes a more holistic total life-cycle approach to products and looks into the total environmental effect on all elements of production, packaging, delivery. This ensures that the environmental impacts of the individual elements are acceptable and that any changes made do not create savings in one area by Total quality management 449 passing on the impact to another area. Backing IPP up by focused environmental audits and certified product labelling will ensure that consumer marketing can also be focused on this key area. 15.8 References BRITISH RETAIL CONSORTIUM, (2000) Technical Standard and Protocol for Companies Supplying Retailer Branded Food Products BRC, London. CHILLED FOOD ASSOCIATION, (1995) Class A (high risk) area best hygienic practice guidelines, CFA, London. CHILLED FOOD ASSOCIATION, (1997) Guidelines for good hygienic practice in the manufacture of chilled foods, 3rd edn. CFA, London. DEPARTMENT OF HEALTH, (1989) Chilled and Frozen. Guidelines on cook-chill and cook-freeze catering systems, HMSO, London. FAO CODEX ALIMENTARIUS COMMISSION, (1997) Food Hygiene Basic Texts. HACCP Principles FAO/WHO, Rome. INSTITUTE OF FOOD SCIENCE AND TECHNOLOGY, (UK) (1990) Guidelines for the handling of chilled foods, 2nd edn. IFST, London. INTERNATIONAL COMMISSION ON MICROBIOLOGICAL SPECIFICATIONS FOR FOODS (ICMSF), (1988) Micro-organisms in Foods. 4: Application of the hazard analysis critical control Point (HACCP) system to ensure microbiological safety and quality, Blackwell Scientific, Oxford. NATIONAL COLD STORAGE FEDERATION, (1989) Guidelines for handling and distribution of chilled foods, NCSF, London. 450 Chilled foods