In an attempt to define an effective set of management
processes, ISO 9001:2000 has a section devoted to the
management of the contract process. Earlier versions of
the Standard (e.g. ISO9001:1994) defined this activity as
Contract Review, a clear indication of its nature and
purpose. ISO 9001:2000 has located it in a section (7.2.2)
"Review of requirements related to the product". In both
cases the intention was to ensure that organisations were
able to, and required to, clearly assess the customer
requirements prior to entering into a contract, and also to
determine their capability to meet those requirements.
But isn't this obvious? Possibly, and no one is claiming
any originality for this inclusion in the Standard. The
real question is what led the compilers of the Standard to
believe it to be necessary to re-state the obvious. How
often as individuals have we been told, "I didn't know you
meant that", or "Oh, that's what you meant"? These are
clear indications of a supplier's misunderstanding of the
customer requirement, OR a lack of understanding of how to
meet the customer requirement, OR simply an inability to
meet the requirement; maybe in most cases, a combination of
these leads to a customer becoming dissatisfied. Contract
Review as we will call it here, is designed to eliminate
any misunderstanding of the requirement, while providing an
assurance of the supplier's ability and capability to meet
the requirements.
At its simplest, the requirement leads the potential
supplier to fully understand the customer's needs and
expectations, while assessing his (the suppliers) ability
to adequately meet those needs. This ability isn't simply
confined to the production and delivery of a product or
service; it includes provision in a time specific domain
and at a cost acceptable to the client. Also, there is an
implicit requirement, if not otherwise specified, that the
product is fit for purpose, conforms to legislative
requirements, and will be supported in an appropriate
manner after sale. The Standard requires the potential
supplier to verify this prior to the submission of a bid or
quote.
Assuming an acceptable bid, the next step would normally be
the delivery to the supplier of a contract or purchase
order. The Standard requires a review of this document
prior to acceptance, to confirm the continued acceptable
status of the requirement and the ability of the
organisation to meet the demands of the offered contract.
This latter element might seem obvious to the point of
being unnecessary, but with any organisation there is a
great temptation to accept any and all orders, particularly
during a general down-turn in business prospects, and to
worry about the consequences later. This strategy is not
good for either party, so the requirement is for the
potential supplier to conduct another review where key
aspects of the proffered contract are compared to the
organisations ability to deliver to the requirements. These
include: - Ensuring that the product (or service)
requirements are (adequately) defined. - Any requirements
that differ from those previously expressed (the bid
invitation and quotation) are resolved. - Confirming that
the organisation has the ability to meet the defined
requirements.
Most observers of this review requirement would probably
agree on the reasonableness of the requirements, and maybe
add further detail, but independent audit experience
suggests this review is seldom carried out with any rigour,
frequently being confined to a cursory assessment by a
sales department manager, more concerned with incoming
order value than the organisations technical and
administrative ability to deliver.
If companies are to improve their image in the market
place, and with their customer base, the requirement to
seriously review the commitments they are about to make
with any new contract is an essential step towards this
improvement strategy.
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Meon Consulting, founded by Ed Bones, was formed to assist
clients with managing their businesses in a manner
compliant with ISO9001/14001. Ed had earlier held a number
of senior posts with Hi-Tech companies in the UK, Europe
and USA. He has written and lectured on full range of
topics on quality improvement and TQM.
http://www.rent-an-auditor.co.uk
.To obtain your FREE
Presentation please visit
http://www.rent-an-auditor.co.uk/contactus.html
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