ELEMENTS AND SCOPE ON HOW TO

IMPLEMENT MANAGEMENT SYSTEMS

7 ELEMENTS LEADING TO A
SUCCESSFUL IMPLEMENTATION OF A
TRANSPORT MANAGEMENT SYSTEM
A TMS SOLUTION IS RARELY A SOLUTION WITH WELL-DEFINED BOUNDARIES. It is deeply
rooted in and impacted by ERP systems, warehouse management, transport administration, route
planning and optimisation, business intelligence/data warehouse, fleet management and mobility.
In order to obtain the highest possible ROI and the quickest payback period, it is important to be aware
of the pitfalls regarding choosing the right type of vendor.
Element 1: Base the order of priority of IT projects on expected business value
When a company initiates the process of implementing a TMS solution, they often re-evaluate their
entire system portfolio, including underlying systems such as ERP. As a result, they often spend a lot of
resources implementing systems which have no immediate financial benefits.
Implementing TMS solutions, or even more specifically transport planning and optimisation systems,
often provides short term benefits such as reduced mileage and driving time by 5-20%, reduced
number of vehicles by 5-10% and the time spent on planning reduced by 25-75%. Based on these
immediate benefits the ROI on TMS is relatively high compared to other systems.
Element 2: Support the business processes throughout the entire planning horizon
The successful company knows that building up an efficient transport department involves many
processes, which have a broad time perspective and many interested parties. Master route
optimisation, customer or order placement, operational planning, real-time execution, follow-up and
what-if scenarios. Handling all this, demands a system which can process and follow information from
beginning till end.
All processes are handled by different types of users who need access to the solution. All users do not
necessarily need to work directly in the system via their PC (client), and not all users necessarily need
all types of information. Therefore, it should be possible to access the system from other platforms
such as web and mobile units, meanwhile access rights must be regulated according to user needs.
Element 3: Choose a vendor with industry knowledge, thorough technical know-how and
business understanding
Choose a vendor with industry knowledge, technical know-how, business understanding and
employees with the right values. A good product is not enough a vendor must be expert in his field.
Only that way will you get a worthy business partner and thereby increase the possibility for a
successful implementation.
Choose a supplier who has hand-picked their employees to their positions based on academic
background, experience and personality and who values industry understanding during recruitment as

well as ongoing development of their employees. All of the above promote dialogue and increase the
likelihood of a good working relationship.
Element 4: Do not just buy a product but enter a partnership
The framework for the cooperation between customer and supplier must be optimal, and it is
important that the supplier goes beyond offering products and just installing them. TMS
implementation becomes more successful when the supplier is perceived more as advisors and
sparring partner and not just installers of a product. Customer and supplier must have a common goal,
because in this way the customer benefits more from the suppliers competencies and industry
knowledge.
Element 5: Choose a standard product with customization opportunities
Each approach has pros and cons; it is, however, very few people who can see the benefits of being a
guinea pig, and few who can be satisfied with a "one size fits all" solution. The truth lies somewhere in
between and, therefore, it may be advantageous to choose a standard solution with customization
opportunities in order to achieve a successful system implementation. Similarly, it may be
advantageous to select a TMS provider who offers industry-specific planning solutions.
Customization elements makes it possible to bridge the gap between the systems and thereby meet
the customer's needs as close to 100% as possible while also making use of as much standard
functionality as possible.
Element 6: Avoid that system integration becomes a project in itself
The selected expert system provider must ensure that their solutions are easy to integrate into the
system environment. This can be done both by having a well-developed understanding of the complex
enterprise architecture, and by basing the integration on the most suitable technologies. Regardless
the type of data or the direction of the integration, it should be easy to install the solution and
maintain it in daily operations - and integration should not be a major project in itself.
Element 7: Achieve short and efficient implementation
Simplify the complicated - shorten implementation time. Unfortunately, it is the rule rather than the
exception that IT projects are more time consuming and resource-intensive than planned, and the
consequence is delays, cost overruns and frustration. A good project model and an efficient project
organisation can remedy this.
Make sure to choose a TMS vendor with lots of experience, as the accompanying level of competence
entail that they can anticipate risks before they occur and react to them in time. Experienced suppliers
can provide numerous benefits to their customers - including effective and resource-saving
implementation processes.
Based on 35 years of experience within development and supply of TMS solutions, Transvision has
defined these seven elements which are essential to ensure a successful and productive
implementation of a transport management system. Contact us if you want to hear more.

http://www.transvision.eu/7-elements-leading-successful-implementation-transportmanagement-system

Management system
From Wikipedia, the free encyclopedia

A management system is the framework of processes and procedures used to ensure that
an organization can fulfill all tasks required to achieve its objectives.[1]
For instance, an environmental management system enables organizations to improve their
environmental performance through a process of continuous improvement. An oversimplification is
"Plan, Do, Check, Act". A more complete system would include accountability (an assignment of

personal responsibility) and a schedule for activities to be completed, as well as auditing tools to
implement corrective actions in addition to scheduled activities, creating an upward spiral of
continuous improvement.
Also as in the aforementioned management system, an occupational health and safety management
system (OHSMS) enables an organization to control its occupational health and safety risks and to
improve its performance by means of continuous improvement.
Examples of management system standards include:

ISO 9001 Quality Management,

ISO 14001 Environmental Management,

ILO-OSH Occupational Safety & Health Management Systems,

ISO/IEC 27001 Information Security Management,

SA8000 Social Accountability.

Management systems

Management systems: purpose and benefits

A (business) management system should be a means to:

achieve business objectives

increase understanding of current operations and the likely impact of change

communicate knowledge

demonstrate compliance (with the requirements of the Turnbull report, Sarbanes-Oxley, sector-specific and
international standards etc)

establish 'best practice'

ensure consistency

set priorities

change behaviour

Different types of system

The term 'system' has a variety of meanings in different contexts. For example, it is used in relation to the 'nervous
system' or the 'digestive system', but this usage is different from its use in relation to business and the management
of an organisation.

Even in a business context, the term 'management system' is used in a number of ways, depending on the context
and the objective. It can mean:

a system to manage a particular activity or a specific type of asset - for example, customer relationships
(CRM), preventive maintenance (PMM), materials (MM)

the means to manage all relevant areas of operation, often in relation to a specific aspect - for example,
quality, environment, information security

the way in which every aspect of an organisation is managed, ie its 'business management system'
A software application is, nowadays, often intrinsic to how a business management system is managed, but this is not
what we are considering here.
The traditional approach has been to address individual aspects separately. There is now a move towards
'integrating' management systems, especially when seeking combined certification against more than one external
standard, based on an external assessment of a single system description. But the word 'integrated', which suggests
that you take discrete systems and somehow combine them, can obscure the fundamental principles involved in
running a business.
'Integrated management' should be synonymous with (good) 'management' you must manage your operations,
resources, staff, impacts, and a myriad of risks which can cause more problems to fix than to avoid.

Definition of a management system

One definition of management is 'the guidance and control of action', and a system is defined as a 'set of components
interconnected for a purpose'. So you could argue that a management system is: 'A set of components,
interconnected for the guidance and control of action'. This suggests that the 'interconnection' has been planned for a
reason, and that the purpose would not be achieved without the 'interconnection'. In other words, the separate
components would not independently achieve the same results.
ISO 9000:2000 defines a management system as a 'set of interrelated or interacting elements to establish policy and
objectives and to achieve those objectives'.
Expanding on this definition, perhaps the clearest interpretation of this is that a business management system is: 'The
structure, processes and resources needed to establish an organisation's policy and objectives and to achieve those
objectives.'
This view implies that an organisation has one management system (even if it needs, or chooses, to comply with a
number of external standards). PAS99 (see below) uses the following definition: 'A management system comprises
the elements of policy, planning, implementation and operation, performance assessment, improvement and
management review.'

Although the formulation of strategy and setting of objectives could usefully be added to the start of the list, this
definition also emphasises the link between where you want to get to and how you will get there. Ownership of the
system will by implication lie with those who will be held accountable, ie top management.
Put another way, running an organisation requires objectives and strategy to be defined, processes put in place,
resources allocated and risks identified, all of which are the basic building blocks of implementing a business plan.
They are also required for successful process improvement.

Different types of management systems

Traditionally, separate management systems were developed to address issues such as quality, environment, health
and safety, finance, human resources, information technology and data protection. Other aspects of running an
organisation which need to be managed include corporate social responsibility, data security, risk management and
business continuity.
Sustainability, reputation management and brand management are given more prominence nowadays, and supply
chain management is a subject in its own right, with university courses and chairs now well established. Although
there is no universal definition of knowledge management, it too is an area given increasing attention.

Financial management
This is driven by a legal requirement, although an organisation obviously needs to control its available resources.
This is an area where a clear division of responsibilities, specific controls and the need for detailed records may be
more extensive than for other areas where there may be more subjective decisions allowed and individuals are given
more leeway to make their own judgements.
Over the years, computer systems have become more established and sophisticated (accounts and payroll were
among the first functions affected), and the automation of many parts of the relevant processes has introduced an
automatic control over many of the tasks.

Human resource (HR) management

HR management would typically involve such processes as recruitment, induction, appraisal and the processing of
leavers, but when it is fully integrated into the strategic planning for an organisation it should perhaps also include
succession planning, performance management, shadowing and mentoring.
Unfortunately, many HR departments perform a function which is little more than a recruitment agency with an added
responsibility for dealing with terms and conditions and holiday entitlements. A well designed management system
should allow HR managers to gain a better understanding of actual operations and the demands of a particular role.

Information technology (IT)

The IT manager role has moved from being focused on the provision and maintenance of physical hardware and
software to include complex communications networks and data management.
In all cases, however, there is a requirement to manage resources and to make them available where they are
required to maximum effect, to be aware of developments externally and to decide what is relevant and cost effective
for the organisation to adopt.
This can generate projects to introduce new technology, which may entail changes to current ways of working which
can radically change existing business processes. Even if organisational objectives have not changed, the
development and availability of new technology can often enable the objectives to be achieved in different ways, and
the significance of technology throughout an organisation needs to be managed in the same way as the involvement
of people.
There is, however, an increased risk involved in the use of technology while it can make specific tasks easier (or
even possible), the organisation will become more and more dependent on the technology being available, so that
there is a need to build and test contingency plans in case of failure.

Knowledge management
Knowledge management is the way in which an organisation generates value from its intellectual and knowledgebased assets. Generating value from such assets involves codifying what staff, suppliers, partners and customers
know, and sharing that information among staff, departments and partner organisations with a view to developing
'best practice'.
While knowledge management is often facilitated by IT, technology by itself is not knowledge management.
Knowledge management is becoming more important given the impact of an ageing workforce, short term contracts
and more career changes over the past few years. The accumulated knowledge about jobs, organisations and market
sectors will be lost unless companies take measures to retain it.
Lessons learned are few and far between even in industries which recognise that they are not good at doing just that.
Outsourcing, especially to other countries, is another trend which has compounded the problem.

All cases
In each of these cases there is a common theme, namely the need to manage a specific factor which may influence
the performance of the organisation. This may be something which affects the quality of its output, its consistency of
performance or even its ability to operate.

Description of a management system

A common starting point for an organisation when it defines its management system has often been to do it in relation
to how it complies with the requirements of an external standard. So it would define, for example, a 'quality
management system', or an 'environmental management system', based on the structure of the relevant standard,
rather than on a logical definition of how the organisation operates.
The resultant multiplicity of systems is now recognised as wasteful and confusing, and there is a welcome recognition
that such standards should have a common format. ISO 9001:2000 is now being used as the model for a number of
other standards, but there is still an unfortunate tendency to use the layout of a standard itself as the starting point for
describing and structuring a management system.
It should always be remembered that these standards specify the requirements for a system to enable compliance to
be assessed they do not mandate a particular format for the description of the system. (For use of these standards
see 5.3 Management system standards).
A more constructive and pragmatic approach is to focus on the organisation's mission, its stakeholders and their
needs, to define how the organisation will satisfy these needs (ie its processes) and to be clear about what it needs to
do to ensure that these processes are effective. (See Specifying, designing and developing processes, products
and services,Strategic management and Elements of corporate strategy).
A case might even be made for a management system to be called a 'management and operational system', since it
describes how things are done as well as how they are managed, whether by the planning and design of processes,
the imposition of controls or the allocation of resources. In practice, these two elements are intertwined.
It is also worth stressing that the 'system' exists whether or not it has been defined (in the same way as a process
exists even if it has not been described in narrative or flowchart format). Especially in very small organisations,
people know what to do (and do it) without having to refer to forms, checklists or written procedures.
When instructions and guidance are written down in a formal system, some people may refer to this description of the
system as 'the management system'. But there is a danger in this as the system description may not reflect actual
practice, and in many situations, especially when there are manuals full of unwieldy narrative procedures, this can be
the case. Worse, by referring to the description as 'the system', the perceived purpose is changed from being an
enabler of results (cause and effect) to a repository of policies and rules for managing the organisation.
So even though the term 'management system' is sometimes (misleadingly) used to mean a 'description of how
things are done', rather than 'how things are (or should be) done', we will concentrate on the latter. Deming talked of
'operational definitions', where there may not be one absolute definition of a term, but it is important that everyone
shares a common understanding of what a term means in a given context.

What the system might look like

Given the diversity of organisational type and size, in both the private and public sectors, it is no surprise that there is
no standard for a management system structure. Any system is, however, likely to have certain key components. For
example, PAS 99 identifies the common elements required by management system standards (based on ISO Guide
72 [1] for standards writers) as:

policy

planning

implementation and operation

performance assessment

improvement

management review
A strong case could be made to include 'objectives' as the first item in this list, since the other elements would
otherwise lack a point of reference.
Some key objectives of (defining) a management system might be to achieve compliance, to encourage
standardisation and reduce variation and to help staff to understand what they have to do and how they fit into the
organisation. It should also provide a sound basis for managing change and making improvements.
The best way to define the system needs to be given due consideration, with the over-riding aim of using a simple,
clear and comprehensive approach and format which helps you to focus on the key elements which you need to plan,
implement and manage to accomplish your mission.

PDCA
One common approach is to use Deming's management system model of plan-do-check-act at a higher level than
just for issues such as environmental (eg ISO 14001) and quality (eg ISO 9001) compliance. In summary, the
elements are:

Plan - by defining clear objectives (your misson), defining your strategy to achieve the objectives,
formulating the policies to which you will adhere, and identifying factors that can influence how you will operate

Do - what you do and how do you do it (organise, get work, do work) / what you need to manage to ensure
that these core processes are efficient (structure, resources, people etc)

Check - monitor and measure how you are performing against your plan. Deming preferred 'study' rather
than 'check', since it implied a more considered review and assessment of the situation rather than mere reference to
selected facts

Act - adjust and refine what you do in the light of the 'check' stage, to achieve improvement

Process classification framework

The process classification framework (PCF) was developed by the American Productivity and Quality Center (APQC)
and member companies as an open standard to 'facilitate improvement through process management and
benchmarking regardless of industry, size, or geography'. The PCF organises operating and management processes
into 12 enterprise level categories, including process groups and over 1,500 processes and associated activities.
The APQC says that: 'Experience shows that the potential of benchmarking to drive dramatic improvement lies
squarely in making out-of-the-box comparisons and searching for insights not typically found within intra-industry
paradigms. To enable this benchmarking, the PCF serves as a high-level, industry-neutral enterprise model that
allows organisations to see their activities from a cross-industry process viewpoint.'
The model can be useful for an organisation which seeks to ensure that it has considered all aspects of its operation
to ensure that it achieves a sustainable business and delivers stakeholder satisfaction.

http://www.thecqi.org/Knowledge-Hub/Knowledge-portal/Corporatestrategy/Management-systems/
About ISO-Sure Management Consultants
Quality Management Implementation steps:
Book a consultation with us to assist you with Quality Management System
Implementations.

Step 1: Commitment from Top Management

The top management of an organisation should be determined and committed to
implement a quality management system. No quality initiative within an
organisation can succeed without commitment from top management. Top
management can demonstrate to their clients that the organisation is committed to
quality through the certification and registration of the ISO 9000 standard. Top
management should thus come to the realization that overall business efficiency
would be improved by means of a quality management system.

Step 2: Establishing an Implementation Team

People are responsible for the implementation of ISO 9000. An implementation
team, headed by a Service Provider and a Management Representative (MR), is to
be established. The Service Provider and MR is the coordinator and is responsible for
planning and overseeing the implementation of the quality management system. He
is thus the link between top management and the ISO 9000 registrar. All
departments within the organisation should be represented on the implementation
team.

Step 3: Conducting ISO 9000 Awareness Programs

Conducting ISO 9000 awareness programs will inform all employees about the aim
of a quality management system. These include the advantages offered to
customers and employees, their respective responsibilities and roles within the
system, and how the quality management system operates. The benefits that an
organisation hopes to realize through a quality management system
implementation should be emphasized through ISO 9000 awareness programs.

Step 4: Providing Training

All personnel and all areas in an organisation are affected by a quality management
system. Training regarding the quality management system should thus be provided
for all employees. The quality management system implementation plan should
make provision for this training. All basic concepts of quality management systems
and its impact on the organisation should be covered.

Step 5: Conducting an Initial Status Survey

A quality management system conforming to the ISO 9000 standard should be
created. However, this does not preclude incorporating, adapting, or adding onto
quality programs that already exists. Thus, this step basically involves comparing an
organizations existing quality management system (if there is one) with the
requirements of ISO 9001:2008.

Step 6: Creating a Documented Implementation Plan

Once an organizations quality management system has been compared with the
ISO 9001:2008 standard, a documented implementation plan is used to address any
non-conformances. The documented implementation plan identifies and describes
processes in order to make the organizations current quality management system
in full compliance with the ISO 9000 standard.

Step 7: Developing a Quality Management System Documentation

Documentation is an area where non-conformance regarding quality management
systems are very common. In order to avoid these non-conformities, documentation
of a quality management system should include the following:

Documented statements of a quality policy and quality objectives;

A quality manual;

Documented procedures and records required by the standard of ISO 9001:2008;

and
Documents needed to ensure effective planning, operation and control of its
processes.
Step 8: Control of Documents
In order to control quality management system documentation, a documented
system should be created. The creation, approval, distribution, revision, storage,
and disposal of various types of documentation are thus managed. Document
control systems should be as easy and simple to operate as possible. However, it
should still be sufficient enough to meet the requirements of ISO 9001:2008.

Step 9: Implementation
In large organizations, it is best to implement the quality management system
being documented as the documentation is developed. This is in stark contrast to
smaller organizations, where the quality management system is implemented
throughout the organisation all at once. During phased implementation, however,
an evaluation can take place regarding the effectiveness of the system in different
areas.

Through management review and an internal quality audit, the implementation

progress is monitored to ensure that the quality management system is effective
and thus conforms to the IS0 9000 standard

Step 10: Internal Quality Audit

The effectiveness of the installed system should be checked regularly by means of
an internal quality audit. Below are some reasons for conducting an internal quality
audit into a quality management system:

To ensure that the quality management system conforms to the quality

management system requirements established by your organization, as well as to
the requirements of the ISO 9001:2008 standard; and
To ensure that the quality management system is implemented and maintained in
an effective manner
Step 11: Reviewing by Management
A management review should be conducted three to six months after quality
management system implementation took place. The reasons for conducting

management reviews are to ensure continuous effectiveness, adequacy, and

suitability of the quality management system.

Step 12: Pre-assessment Audit

Before applying for certification, a pre-assessment audit usually takes place.
Certification bodies provide a qualified but independent auditor to conduct this
service. Some degree of confidence is gained before application for certification if
the pre-assessment audit goes well

Step 13: Certification and Registration

A formal application for certification is made at a certification body as soon as the
quality management system has been operating for a few months and has
stabilized. An audit of the documents (known as an adequacy audit) is first carried
out, and if it conforms to the requirements of the quality standard, it is followed by
an on-site audit. A certificate is only awarded to the organisation if the certification
body is satisfied with the workings of the system. However, the certificate is valid
for a period of three years only, after which the certification body will carry out
periodic surveillance audits.

Step 14: Continual Improvement

Although an organisation gained certification, it is important to note that it has to
try and improve the suitability and effectiveness of the quality management system
on a continuous basis.

http://www.qualicertus.co.za/sbsqualitymanagementsystemimplemetation.html

Management System Implementation Methodology

overview;

service offering;

benefits

next steps

Overview
Implementing any Management System Standard has a number of similarities no matter what
Management System is being implemented.

Service Offering
BCRM has developed a generic four step process for achieving implementation of a Management
System that tie into the certification cycle so it can be used for achieving Management System
certification.
These steps are:

Step 1 - gap analysis - evaluation of the gap between the objective (i.e. certification) and
current starting point;

Step 2 - development of the relevant Management System (optionally a Certification Body

audit may confirm appropriateness of the Management System at this point);

Step 3 - development of the documented policies, processes and procedures to support the
Management System (a stage 1 Certification Body audit takes place at this point);

Step 4 - implementation of the Management System with associated policies, processes and
procedures to support it (a stage 2 Certification Body audit takes place at this point, and when
you pass this you are recommended for certification to the relevant Management System
standard.

Step 1 - Gap Analysis

The overall objective of this stage is to provide you with an understanding of your current standards of
practice for the Management System you want to implement against the relevant standard. BCRM
address this by performing a full audit as if it were a Certification Body audit but without the
Certification Body time constraints. This produces a 'gap analysis' report of the findings for relevant
standards against the certification requirements and an implementation plan to address the 'gap'
identified.
Specific objectives of this stage are:

review the Management System installation, procedures and practices against the relevant
Management System in the form of a formal audit;

draw attention to areas where your procedures and practices do not meet best practice
requirements;

provide a 'Weakpoint (or Gap) Analysis' to show where your business may be at risk;

make recommendations as to how you could bring its working practices in line with industry
best practice;

assist in the selection of a suitable Certification Body to meet your requirements for
certification;

ongoing advice for the pre-certification process.

A number of documents or records are reviewed during the Gap Analysis and these will vary between
Management Systems.
A number of audit interviews will be undertaken during the Gap Analysis and these will vary between
Management Systems. It is expected that each interview will take approximately 45 minutes.

Step 2 - Develop the Management System

After having determined the baseline in Step 1, the relevant Management System is developed. This
typically comprises, but varies between Management Systems:

agreeing the project with management;

agreeing the relevant business mission, vision, business objectives and values, as required;

defining and agreeing at board level the relevant Management System policy;

defining and agreeing the scope for certification;

developing and documenting the Management System for the relevant standard;

Once this has been carried out, it is recommended that the chosen Certification Body carries out a
Stage 0 audit. This stage has the following advantages:

it proves that the Management System is appropriate for the scope (meaning that the
Certification Body cannot easily later suggest this);

it gives the project team assurance that they are on the right track;

it gives management the same assurance and an audit from a Certification Body stating that
fact;

if a consultancy or other third party is being utilised, it gives the employer comfort that the
third party is carrying out their tasks appropriately.

Step 3 - Documenting the Management System Procedures

Having documented the Management System itself, it is necessary to develop and document the
processes that make up the Management System. This will obviously vary between Management
Systems to be implemented;
Whilst the choice of presentation media for these policies and procedures is up to you, we recommend
that an intranet based system is used, this could range from linked HTML pages, through SharePoint
to a specialised content Management System.
Once this has been carried out, the chosen Certification Body carries out a Stage 1 audit.

Step 4 - Implementing the Management System

Once the Management System policies and procedures have been developed, it is necessary to ensure
that they are both implemented and that there are sufficient records (i.e. proof) that the procedures
and processes are in place, monitored and managed.
Implementation will also require appropriate training, coaching and mentoring for management and
employees in the new processes and procedures.
This is in some ways the most difficult part of the implementation as your employees may have to
change their working practices to ensure that they meet the (often new) documented processes and
procedures.
As part of this stage a number of internal audits will be carried out, as if they were Certification Body
audits to get your employees used to the internal audit process. The audit cycle will finish with a final
mock full certification audit prior to the relevant Certification Body audit.

http://www.bcrm.co.uk/cs_msim.php