Building Of The QMS In Slovenian Railways
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1 Building Of The QMS In Slovenian Railways mag. Igor Hribar Holding Slovenske železnice, d.o.o. Tovorni promet/freight transport TREND Conference Quality management systems in rail freight transport Bratislava, 3 May 2006
2 Should We Get Carried Away? 2 Holding Slovenske železnice
3 Freight Transport Of Slovenian Railways Representing 0,3% of the European railway infrastructure network Excellent geographical position on the cross-routes of Pan-European corridors 19% market share in freight traffic ( SURS) 3 Holding Slovenske železnice
4 Key Facts Of SŽ-Freight Results SŽ-Freight is the largest rail freight transporter in Slovenia Transport revenue (Mio EUR) Goods transported (Mio t) Work performed (Bio ntkm) Train Km (Mio trkm) Average nr. of trains/day ,9 3,5 7, ,1 3,6 7,5 206 SŽ-Freight is the largest exporter of services in Slovenia. Positive development of transport volume and revenue Resources Locomotives Wagons Increased productivity of resources SŽ-Freight is an offensive rail freight market player on the Corridors 5 and 10 4 Holding Slovenske železnice
5 Quality Management Systems In Slovenia Integrated Management Systems Source: Slovenian Chamber of Commerce, 2006 ISO 9001 Quality Management System ISO Environmental Management System 302 OHSAS Occupational Health and Safety Management System 36 HACCP Food Safety Management System 16 Quality Management Systems in the Automobile Industry ISO TS International Automotive Task Force 46 VDA 6.1 national standard Germany 13 QS 9000 national standard USA 7 Other Management Systems/Standards SA 8000 Social Accountability 3 BS 7799 Information Security Management Systems 1 5 Holding Slovenske železnice
6 Development Of Quality Management Systems On SZ ISO 9001 Business Process Reengineering ISO ISO 9001:2000 EFQM Business Excellence Balanced Scorecard Quality Management System Implementation 1993 Start 1997 Certification ISO 9001 (BVQI) 2000 Re-certification 2003 Transition to ISO 9001:2000 (BVQI) 6 Holding Slovenske železnice
7 Model Of The Integrated Management System ISO 9001:2000 Customer requirement Input QUALITY QUALITY MANAGEMENT MANAGEMENT SYSTEM SYSTEM CONTINUAL CONTINUAL IMPROVEMENT IMPROVEMENT Resource management Management responsibility Product Realization Measurement, analysis, improvement Product Service Output Customer satisfaction Setting the model straight Quality Policy / Goals Quality provisions (documentation, processes, methods ) Data gathering and reporting Quality teams preventive and corrective measure Better Quality 7 Holding Slovenske železnice
8 Model Of The Integrated Management System ISO paramount environmental influences identified Every production unit has developed common and individual environmental plans and goals Management review Checking and corrective action Environmental policy Planning Implementation and operation 6 main objectives defined: Reduction of water consumption Reduction of energy consumption PCB removal Reduction of waste production Reduction of dangerous materials consumption Improvement of dangerous goods transportation 8 Holding Slovenske železnice
9 Aligning The Quality Initiatives Of SŽ With The FQC 2003 Voluntary commitment of RU on service quality provision: Responsibility Safety Planning Punctuality and Reliability Information Rolling Stock Billing After-sale Service SŽ includes all listed elements of rail freight service in the management systems, and is monitoring and improving the performance on these key issues. 9 Holding Slovenske železnice
10 Did It Eventually Work? Success of quality improvement initiatives and effectiveness of a QMS can be best confirmed by the response of the market. Annual customer satisfaction survey performed among local and international clients of SŽ shows a stable level of customer s satisfaction. It seems it is far from being enough! Customer satisfaction 100% 90% 80% 70% 60% 88% 86% 92% 89% Share of customers indicating satisfaction as <4 on 7 scale axis (1=abs. satisfied, 7= abs. not satisfied) Source: Hribar, SŽ Customer Satisfaction Survey, Holding Slovenske železnice
11 The Effects Of The QMS Are Not Always Directly Evident Investments in the quality management programs are growing Many companies have difficulties to connect clearly the improvements in the quality performance with the improvement of the bottom-line (=monetary benefits) Werner Reinartz, INSEAD (Learning from Experience: Making CRM a Success at Last, 2002) 75% of QM feels under pressure to show financial consequences of proposed or implemented improvement measures 72% of QM reports, that it is difficult to connect improvement measures with the accounting indicators 73% of QM reports, that it is difficult to connect improvement measures with the capital market gains 11 Holding Slovenske železnice
12 Customer Satisfaction Is Important Driver Of The Business Growth SPLOŠNO SATISFACTION ZADOVOLJSTVO CHANGE SPLOŠNO SATISFACTION ZADOVOLJSTVO CHANGE SPREMEMBA PURCHASING NAKUPOV DIFF. SPREMEMBA PURCHASING NAKUPOV DIFF. + o - + o % 9% 10% + 55% 36% 9% 100% o 58% 76% 24% o 24% 71% 5% 100% - 11% 14% 67% - 13% 40% 47% 100% 100% 100% 100% SPLOŠNO SATISFACTION ZADOVOLJSTVO CHANGE + o - + 8% 6% 1% 15% o 15% 45% 4% 64% - 3% 8% 10% 21% 26% 59% 15% 100% SPREMEMBA PURCHASING NAKUPOV DIFF. Only constant improvement of the quality and satisfaction ensures stable growth of the rail freight traffic. Source: Hribar, SŽ Customer Satisfaction Survey, Holding Slovenske železnice
13 Quality Initiatives of Slovenian Railways AFTER-SALES INFORMATION WAGONS QUALITY PERSONNEL DELAYS DELIVERY Business Process Reengineering Information System Development Program CRM Implementation Border-Crossing Improvement Program International Corridor Quality Initiatives 13 Holding Slovenske železnice
14 Igor Igor Hribar Hribar Holding Holding Slovenske Slovenske železnice železnice d.o.o. d.o.o. Freight Freight Transport Transport Tel: Tel: Fax: Fax: igor.hribar@slo-zeleznice.si Thank you. 14 Holding Slovenske železnice
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