The Missing Link to Sustainable Development and Competitiveness

Transcription

1 The Missing Link to Sustainable Development and Competitiveness Stakeholder Workshop Hyatt Regency July 23, 2013

2 What is NQI? A National Quality Infrastructure (NQI) can be defined as a highly integrated network of people, systems and organisations involved in the research, definition, development and promotion of quality goods, services and processes. The diagram below shows the connectivity between the different parts of the NQI and the resultant impact on and from both the supplier and the customer. Standards, Metrology and Accreditation are the pillars upon which Conformity Assessment activities are supported. Conformity Assessment procedures confirm compliance to standards through measurement and audits performed by technically competent persons and/or bodies. This proof of compliance is then used by both customers and suppliers to make decisions for doing business.

3 An Example of a National Quality Infrastructure Regulators Ministry; National Quality Council Private Sector Industry Groups/ Entrepreneurs Administrative Reform Conformity Assessment Bodies Export facilitators Investment promotion agencies Statutory & Policy development bodies e.g. Ministry of National Security, Justice National Standards Body National Accreditation Body National Measurement Institute Legal Metrology Weights and Measures Office (WMO) Academia & Research (For instance University produces graduates that move on to conduct research in new methods of treatment for diabetes that take into account the ethnic backgrounds of our population)

4 Tangible Benefits of the NQI When countries recognise actively maintaining a working NQI, at least three key benefits arise: Economic Growth Quality is a pre-requisite for market entry. It is wellrecognised that non-tariff barriers (for example, standards and technical regulations) are major impediments to international trade. As a country, we need to demonstrate that we are capable of producing high quality goods and services. This demonstration is done via the National Quality Infrastructure. An efficient NQI architecture will support and strengthen our ability to establish and continually improve the quality of goods and services produced or acquired nationally. The resulting benefits will be increased competitiveness, greater innovation, and a higher degree of technology transfer, thereby enhancing the capability of our firms to effectively trade nationally, regionally and internationally and contributing directly to economic growth. Social Development Regulatory agencies enforce regulations aimed at protecting the consumer, for example, regulations that prevent false and misleading labelling and advertising. Conformity Assessment activities aimed at ensuring health and safety, consequently lead to an improved quality of life for citizens. Companies can utilise standards such as ISO (Social Responsibility) which provides guidance on how businesses and organisations can operate in a socially responsible way. This means acting in an ethical and transparent way that contributes to the health and welfare of society. Environmental Protection Elements of the NQI can be used in several ways to assist in environmental protection. There are a number of International Standards within the ISO series which have been adopted by TTBS. From the regulatory perspective, a number of Trinidad and Tobago Standards have been referenced in our local Air Pollution and Water Pollution rules. Standards are frequently used as the basis of regulations and to support regulatory functions. Examples of these standards include: TTS 417:1993 Specification for the Liquid Effluent from Domestic Wastewater Treatment Plants into the Environment and TTS 547:1998 Specification for the Effluent from Industrial Processes Discharged into the Environment.

5 True Cost of Quality Scenario 1 What is the cost to the national economy, the society, your family and yourself if you were diagnosed to be HIV-positive but you are not (false positive)? How many productive personal hours are lost based on a potential false positive? What is the cost to the insurance system for treatment of a false positive person? What about the social costs that result from the stigma of being HIV-positive to both you and your family? Both you and your doctor trusted that the laboratory performing the test knew what it was doing, that the results were credible and that there were standardized operating procedures. Scenario 2 Imagine that a company makes fuel for aviation. When sold to the airlines, it gets complaints and it is proven that poor quality fuel has made some of the aircrafts unusable resulting in delays or cancellation of flights. The airlines no longer trust that company to provide fuel for their operations and have to either import fuel at a substantially higher cost than what was available locally or make alternative arrangements for refuelling elsewhere another costly exercise. They also now have to accommodate stranded passengers or make alternative arrangements for them. Passengers themselves may have lost productive days at work. What is the cost to the company for repairing the planes? What is the cost to the airline s reputation as a preferred carrier? What is the cost to passengers who may have been travelling on business or vacation? What is the cost to the company providing the fuel? What is the impact on the national economy as a result of this isolated incident?

6 These examples illustrate the impact on a national economy of the absence or application of a quality infrastructure. The scenario of a missing quality infrastructure has particular costs which are negative, wasteful, inefficient and ineffective. This is the True Cost of Quality. The NQI can be akin to the submerged 90% of the iceberg, which forms the foundation for the optimal functioning of an economy resulting in the visible 10% portion of the iceberg, the desired outcomes such as competitiveness and a sustainable economy.

7 Making NQI happen If we are to improve our competitiveness, develop a more sustainable economy, have confidence in the quality of goods and services and processes in the country, become a more innovative society, improve our impact on the health, safety and the environment, then we need to establish a functional quality infrastructure. We all have a part to play in the effective transformation of Trinidad and Tobago into the society in which we want to live. There is no one-size-fits-all design or model for a national quality infrastructure other than these specific pillars: Standards/Technical Regulations; Metrology; Accreditation; Conformity Assessment. Trinidad and Tobago must determine what is appropriate for us and how a National Quality Infrastructure is to be structured to achieve our national development objectives.

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