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Whittington Newsletter )
QMS, EMS, Information Security, Services Management, and Six Sigma November 2009
In this Issue
  1. EPA Rules on GHG
  2. Travel Safety
  3. U. S. Manufacturing
  4. ISO 9004 Approved
  5. Class Schedule

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Welcome to the Whittington & Associates e-Newsletter! Visit and bookmark our web site.

Our newsletters provide guidance on ISO 9001, AS9100, ISO 13485, ISO/TS 16949, TL 9000, ISO 14001, ISO 27001, ISO 20000, and Six Sigma.

If you have any questions about the articles appearing in this issue, or you want to suggest topics for future issues, please let us know.


EPA Rules on GHG

On January 1, 2010, the Environmental Protection Agency (EPA) will, for the first time, require large emitters of heat-trapping emissions to begin collecting greenhouse gas (GHG) data under a new reporting system. This new program will cover approximately 85 percent of the nation's GHG emissions and apply to about 10,000 facilities.

The EPA expects the new reporting system to provide a better understanding of where GHGs are coming from, as well as, guide development of the best possible policies and programs to reduce emissions. The data will also allow businesses to track their own emissions, compare them to similar facilities, and provide assistance in identifying cost effective ways to reduce emissions in the future. The EPA says this comprehensive, nationwide emissions data will help in the fight against climate change.

Greenhouse gases, like carbon dioxide, are produced by burning fossil fuels and through industrial and biological processes. The gases covered by the proposed rule include carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), hydrofluorocarbons (HFC), perfluorocarbons (PFC), sulfur hexafluoride (SF6), and other fluorinated gases including nitrogen trifluoride (NF3) and hydrofluorinated ethers (HFE).

Fossil fuel and industrial GHG suppliers, motor vehicle and engine manufacturers, and facilities that emit 25,000 metric tons or more of CO2 equivalent per year will be required to report GHG emissions data to EPA annually. This threshold is equivalent to about the annual GHG emissions from 4,600 passenger vehicles.

The first annual reports for the largest emitting facilities, covering calendar year 2010, will be submitted to the EPA in 2011. Vehicle and engine manufacturers outside of the light-duty sector will begin phasing in GHG reporting with model year 2011. Some source categories included in the proposed rule are still under review.

For more information on the new reporting system and reporting requirements, go to this EPA web page.

Travel Safety

It often takes a tragedy to make companies address the risks of business travel. An article in the HR Daily Advisor states that personal crimes, such as assaults and robberies, are the most common types of incidents encountered by business travelers.

Often, companies make hotel and travel decisions based solely on price, rather than evaluating factors such as the crime rate of the neighborhood where the hotel is located, basic security safeguards utilized at the property, or transportation after dark.

Ironically, employers go to great lengths to protect company-issued mobile devices and the data stored in them, but according to the article, they aren't proactive about ensuring the safety of the employees who carry those devices.

Prevention Tactics

When making travel plans, employers should consider the location and assess the potential risks to employees. Hotels that offer safety features such as card key systems and controlled access, meaning the exterior doors are locked at a certain time, are significantly safer for business travelers.

When making travel arrangements, the HR Daily Advisor suggests asking questions, such as:

  • What types of security measures are in place?
  • Does the hotel use closed-circuit television?
  • What types of problems has the hotel had that might cause concern?
  • Does the hotel meet the security recommendations of the American Hotel and Lodging Association?
  • Are individual franchise locations required to adhere to the corporate safety standards?
The article advises employers to educate business travelers about safety procedures they can follow to increase their own safety. Tips for travelers include:
  • Get directions in advance.
  • Do not leave valuables in plain sight in your motor vehicle.
  • Park close to the front entrance. If this is not possible, ask for an escort.
  • Park under a lamp pole or lighting fixture.
  • Ask for a room close to the front desk.
  • Avoid late-night travel if you can.
  • Use the buddy system when possible.
  • Trust your instincts.
Travelers should be provided with an emergency company phone number in case they need some type of assistance, have to report an incident, or become ill. This number could be a hotline or an after-hours number for a manager or personnel director.

Tips for Hotel Safety

In another HR Daily Advisor article, a detective gave his recommendations for selecting hotel rooms:
  • Avoid ground level rooms with windows or sliding doors opening at ground level.
  • Choose a room facing an interior courtyard rather than a parking area.
  • Choose a room on a lower floor since many fire department vehicles can't reach rooms above the sixth floor.
  • Consider a room near the elevator. It is generally safer; however, it may be noisy.
In the Room:
  • Keep your key/card handy in case you have to leave quickly in an emergency.
  • Lock the door and secure the bolt and clasp or chain. If the chain is loose, twist it before securing.
  • Check fire exits. You don't want to be wondering about which way to go when you are awakened in the middle of the night.
  • Get two business cards from the front desk that show the hotel phone number and address. Put one by the phone in the room and put the other in your wallet so there will never be a problem getting back to the hotel.
Guest Safety Tips

Finally, here are 10 basic tips from the American Hotel and Lodging Association:
  1. Don't answer the door in a hotel or motel room without verifying who it is. If a person claims to be an employee, call the front desk and ask if someone from the hotel staff is supposed to have access to your room and for what purpose.
  2. Keep your room key with you at all times and don't needlessly display it in public. Should you misplace it, notify the front desk immediately.
  3. Close the door securely whenever you are in your room and use all of the locking devices provided.
  4. Check to see that any sliding glass doors or windows and any connecting room doors are locked.
  5. Don't invite strangers to your room.
  6. Do not draw attention to yourself by displaying large amounts of cash or expensive jewelry.
  7. Place all valuables in the hotel or motel's safe deposit box.
  8. When returning to your hotel or motel late in the evening, be aware of your surroundings, stay in well-lighted areas, and use the main entrance.
  9. Take a few moments to locate the nearest exit that may be used in the event of an emergency.
  10. If you see any suspicious activity, notify the hotel operator or a staff member.
To sign up for the free HR Daily Advisor newsletter, go to the BLR web site.

U. S. Manufacturing

A recent AIAG e-News Brief included an article by Thomas Duesterberg, President and CEO of the Manufacturers Alliance. An edited version appears below.

View on U. S. Manufacturing

In the worst economic climate since the 1930s, and at a time of intensified political change, manufacturers are experiencing difficulties in articulating a clear and strong message about the health of their sector and how policy change might affect it. What follows are ten summary points intended to convey an accurate picture regarding the current state of U.S. manufacturing and some of its key issues.

1. Despite perceptions that U.S. manufacturing is disappearing, the quantity of manufactured goods produced in the United States has kept pace with overall economic growth for the last 90 years.

Since 1947, value added in manufacturing has grown sevenfold, the same as the gross domestic product (GDP). While employment has steadily declined in the sector, one in six private sector jobs are still in, or directly tied to, manufacturing.

2. When measured in value-added production, manufacturing is about 12 percent of GDP, down from about 27 percent in the early 1950s.

This is due primarily to higher productivity and lack of pricing power, and the sustained growth of the services sector. Between 1987 and 2008, manufacturing productivity grew by 103 percent, about double the total for all private business. Due largely to increased international competition, prices of manufactured goods rose only by about 2 percent per year since 1960, compared to 3.7 percent for the entire economy.

3. U.S. manufacturers do well in global competition by keeping costs under control.

Due in large part to enhanced productivity, unit labor costs in U.S. manufacturing have declined by 40 percent relative to the average of 14 principal industrial country competitors since 1986.

4. U.S. manufacturing continues to be a source of innovation.

It still accounts for 35 percent of value added in world high-technology product production and has a trade surplus in revenues from royalties in manufacturing processes. Just four manufacturing industries account for 56 percent of all private sector research and development: computers and electronics, chemicals, aerospace, and automotive.

5. Manufacturing accounts for more than one-fifth of all energy use in the United States.

Energy efficiency in manufacturing has increased by 43 percent since 1987 alone, much better than the 33 percent in other sectors. The U.S. industrial sector has reduced CO2 emissions by about 11 percent since 2000 and is projected to reduce total energy consumption by 12 percent by 2030.

6. Manufacturing production always fluctuates more than the overall GDP.

The current recession in manufacturing is the worst since the Great Depression. A decline of nearly 12 percent is forecast for manufacturing production in 2009, not nearly as bad as the 20 percent annual declines in the years 1930-1932, but significantly worse than the projected 2.9 percent decline in GDP.

7. The tax burden on U.S. manufacturers is higher than for other major competitor countries except Japan.

This is the same for both statutory and effective rates and is due in part to the capital intensive nature of manufacturing. Reform proposals which eliminate important preferences-such as the foreign exclusion or last-in first-out accounting-hit manufacturers harder than other sectors. The plan to reduce corporate tax rates while eliminating many preferences would cost manufacturers $58 billion in increased taxes, while all other major sectors would see reduced taxes.

8. U.S. manufacturing provides premium wages and benefits.

Current wages and benefits in manufacturing, about $32 per hour, are 9 percent higher than the economy-wide average. About three-quarters of all manufacturing firms (and 99 percent with 200 or more employees) offer health-care benefits and pay about four-fifths of total employee premiums.

9. U.S. manufacturing is much more engaged in global trade than other sectors: 57 percent of all U.S. exports are manufactured goods.

Despite a large trade deficit in goods, mostly due to imports of oil and manufactured products from Asia, the United States enjoys a trade surplus with all countries with which we have a free trade agreement, including the NAFTA countries. In 2008, trade in capital goods, a strength of U.S. manufacturers, was roughly in balance while we had a $300 billion deficit in consumer goods. On the negative side, U.S. exporters are losing market share in Asia to China and the European Union.

10. Most U.S. foreign direct investment (FDI) is intended to gain access to large and growing foreign markets.

More than 75 percent of U.S. FDI is in high-wage countries, including Europe, Japan, Australia, New Zealand, and Singapore. Foreign affiliates of U.S. firms sell nearly $4.7 trillion abroad, much more than the $3 trillion in sales by foreign affiliates in the United States. U.S. firms earn more than 150 percent more in profits from their foreign affiliates than do U.S. affiliates of foreign firms.

To see the sources for the data referenced in this article, go to the AIAG e-News Brief article.

ISO 9004 Approved

A completely revised ISO 9004 standard has been approved and is in the publication stage. It will be available soon with the new title, "Managing for the Sustained Success of an Organization - A Quality Management Approach".

ISO 9004:2009 provides guidance to organizations to support the achievement of sustained success through a quality management approach. It is applicable to any organization, regardless of size, type, and activity, but it is not intended for certification, regulatory, or contractual use.

Do you recall the major revision of the ISO 9000 family of standards back in 2000? The revised ISO 9001 and ISO 9004 standards were referred to as the "consistent pair" because they used the same clause structure. ISO 9004 was to be the guide to developing and improving a quality management system, while ISO 9001 remained the requirements standard for assessments.

Organizations seeking certification based on customer demand have typically implemented a quality management system meeting the requirements of ISO 9001, but have seldom improved that system using the recommendations in ISO 9004. They have their certificate and don't go beyond the basics.

An alternate approach was for organizations to develop their quality management system using ISO 9004 to focus on meeting their business needs, and then have it assessed against ISO 9001. This management-led focus was on the system, not the certificate. Unfortunately, this path has seldom been taken. As a result, it was felt that a complete revision to ISO 9004 was in order.

New Structure

As indicated by its new title, ISO 9004 has a different scope and a revised structure. No longer will ISO 9004 be directly tied to ISO 9001. By removing the constraints imposed by the ISO 9001 clause structure, and expanding its scope, ISO 9004:2009 is expected to be an improvement over its predecessor.

The new ISO 9004:2009 structure is shown below:

Section 4 on managing for sustained success addresses the operating environment and interested parties.

Section 5 on strategy and policy covers mission, vision, values, strategy, and policy. Its equivalent in ISO 9001 is Management Responsibility, but this section is wider in scope and more representative of best practice.

Section 6 on resource management covers a wider scope than the related clause in ISO 9001 and addresses additional resources, including finance, knowledge, information, technology, and natural resources.

Section 7 on process management is more generic than Product Realization in ISO 9001, and much wider in scope since it applies to all the organization's processes, including those that are outsourced.

Section 8 on monitoring, measurement, analysis, and review covers similar topics to clause 8 in ISO 9001, except that improvement is addressed in a separate section 9. Additional topics include self-assessment, key performance indicators, and benchmarking.

Section 9 on improvement, innovation, and learning goes beyond the improvement provisions of ISO 9001 and addresses innovation and learning, two important concepts for any organization aiming to sustain success.

This article used information from an article by David Hoyle in Issue 23 of the IRCA Inform.

Class Schedule

Root Cause Analysis

ISO 9001:2008
Understanding ISO 9001:2008
ISO 9001:2008 Requirements
Implementing ISO 9001:2008
Quality System Documentation
ISO 9001:2008 Internal Auditor
ISO 9001:2008 Lead Auditor

ISO 14001:2004
Implementing an EMS
ISO 14001:2004 Internal Auditor
ISO 14001:2004 Lead Auditor

ISO/TS 16949:2002
ISO/TS 16949:2002 Internal Auditor
ISO/TS 16949:2002 Lead Auditor
Understanding and Implementing ISO/TS 16949:2002

Core Tools
Advanced Product Quality Planning
Design Failure Modes Effects Analysis
Process Failure Modes Effects Analysis
Production Part Approval Process
Statistical Process Control
Measurement System Analysis

AS9100B:2004
AS9100 Internal Auditor
Implementing AS9100
AS9100 Lead Auditor

ISO 27001:2005
ISO 27001 - Understanding an ISMS
ISO 27001 - ISMS Implementation
ISO 27001 - ISMS Internal Auditor
ISO 27001 - ISMS Lead Auditor

ISO 20000-1:2005
Understanding ISO 20000
Implementing ISO 20000
ISO 20000 Internal Auditor

ISO 13485:2003
Understanding ISO 13485:2003
ISO 13485:2003 Internal Auditor
Implementing ISO 13485:2003
ISO 9001 Lead Auditor - ISO 13485 Emphasis

Capability Maturity Model Integration
Introduction to CMMI v1.2

Six Sigma
Introduction to Statistics
Green Belt Certification
Black Belt Certification

Books
See our list of ISO 9001, Auditing, and Six Sigma books. Includes book descriptions and links to Amazon.

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