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International freight forwarding company. Founded in 1991



Dialectics of business.

Transition of quality of service in quantity of profit.

Everyone who names himself a manager had to hear about system of quality ISO 9000.There are less people and companies which clearly and precisely imagine essence of this system. Even there is less those who has introduced or is introducing the given system at themselves at the enterprise, works on it and knows "from within". "ТRANSSYSTEM" – is one of such companies, VLADIMIR FILIMONOV, the assistant to the general director on quality tells about its experience on implementation, use and advantages of work under standards of management

Let’s start from the beginning. How long and why did your company decide, what the control system of quality ISO 9000 is necessary for it?

- The decision came rather unexpectedly. In 1998 our management faced with a problem of internal management. While there are 20-30employees in company, all employees and all processes are on sight, it is easy to work . If the firm expands, there are more employees and processes, the situation can leave under the control. There are questions of formation of the efficient control which is not admitting failures in work (that has an effect for quality of services), there is a task to build a new control system.

Negotiations with " Мedeu-consulting " firm concerning a control system of quality ISO 9002:1994. were carried out. Then was accepted a decision on introduction of this system that thus « to kill at once two hares » - to strengthen a control system in firm and to strengthen image of the company.

- Did you start to work with participation of external advisers?

- In December, 1998 we have started the project when the advisers of "Меdeu-consulting" studied the existing circuit of work, talked to each employee. Then we built balance of standards of series ISO existing and necessary on requirements 9000. Then we worked out the procedures on which work should conduct.

- Is all work being conducted on these procedures or process of introduction proceeds?

- At that moment the first audit of procedures was created only, the third is already issued and the fourth prepares. There was only a structure from the first variant, filling changed strong. But it is normal process, you see life changes, the company grows, the situation in collective varies, all in the greater degree occurs comprehension of standards.

- What was reaction of collective at transition to new standards of work?

It was difficult psychological moment. People got used to work definitely, it was suitable for them : there were parameters of growth, efficiency, it seems everything was alright. And here is a standard which puts forward big requirements. Firstly employees of the company in general concerned to this as to something strange, that had no relation to them, simply read about it, spoke "yes -yes" and believed, that it will be finished soon. But when they have been asked to undersign under the read procedures and to take up obligations on their full execution, here more alive reaction already began. There was a wave of comprehension of procedures, there was taken a measure, whether it is necessary to make changes.

- It turns out, that in case of mistakes you search an answer to a question « who is guilty », instead of « what is guilty »?

-. Practice ISO 9000 speaks, that in 94 cases from 100 the system is guilty, mistakes of management, a mistake of top - management which has failed to adjust system, and not that concrete executor who appeared the last in a chain of granting of services to the client.

- Can you cite any data, demonstrating progress of the company from the moment of introduction of a control system by quality?

- In standards of series ISO 9000:2000 eight main principles by which the company should be guided in the activity are incorporated, both the very first and main of them is satisfaction of the consumer. The main parameter of progress for us is a constant increase of a degree of satisfaction of the client. In 2001 the system of telephone interrogations of clients was introduced: one time per one quarter clients with whom the company works at present are interrogated, clients who did not use our services within one month (the reason may be different –there were no volumes of transportations). For realization of interrogations the expert was given an employment in addition. If in 2001 only 41 % of clients were completely satisfied with our service, the others of 59 % had remarks, last interrogation of this year has shown, that only 19 % of clients have remarks, 81 % - are pleased with all. The parameter has grown twice for two years, these are very fast rates of growth. They show, that all of us act correctly: having collected remarks, we analyze them, we reveal the reasons, then we take the necessary measures, if necessary we spend additional training employees. The same is circuit of work by results of internal and external technological audits.

- Well, clients are pleased, but you see the basic parameter of success of the enterprise is a financial parameter...

- That's just the point, that these two things - satisfaction of the client and financial success - are connected directly. The pleased client remains our client forever, moreover, he brings with him other clients because he advises to all his familiars to work with that firm which satisfies him. For two years the quantity of our clients has increased more than on 30 %. On volume of transportations our company takes a leading position in the market. Certainly, at such degree of quality and service, we can make the prices higher, than at competitors. We had cases when our clients moved to the companies where services were cheaper. They left, and then came back with the words: « What for is it? Yes, the tariff is lower, but my wagon during a month stood in Еlеtzk. It is the broken contract and the big penalties ». We do not have such problems, because all chain of actions on support of this car is registered, all documents are collected in time, telegrams are sent. If you need financial parameters: for two years our incomes have increased on 40 %. Certainly, the major factors, influencing the issued parameters, are strategy of development, a marketing policy, market structure. Nevertheless the factor of quality plays here not last role.

- Let's return to example of reduction of quantity of dissatisfied clients. Whether is it possible to achieve the report of absolute zero?

- In real life it is hardly possible. In general, having corrected gross mistakes, we have promoted forward very quickly, but the less and more slightly these defects are, the more difficult is work. Moreover, further, obviously, there will be a work on an individual approach, you see that suits one, can not arrange another, someone needs to give more attention on one question, someone - on another. Not so long ago we "have caught" this idea: the better the standard is, the more you work on it, the more it forces to think.

- Will you copy once again procedures to reflect all freshest ideas?

- We will. Procedure is, figuratively speaking, the wall behind a back of the person which does not allow him to move back, to work worse. He can move only forward. And as soon as this step forward is made, it is fixed by procedure at once - in other words, the wall is transferred forward too, and there is no way back again, there is an opportunity to move only forward. In parallel we take measures on development of the creative initiative of workers of the company.

- We have understood what the system ISO9000 gives to the enterprise. But you have also received the international certificate. What does certification give you?

- The certificate gives much. It is world recognition, trust of foreign, and already national, partners (those who is familiar with this system). You see, the certificate is a confirmation not only of high quality of rendered services or producing goods, but also stability in this process. It is an important point - stability, especially at large volumes of orders. During participation in various tenders on delivery of services presence of the certificate is the basic advantage and in general repeatedly raises image of the organization.

- You have told about stability which confirms by the certificate, but can not be so - the company "has strained", has received the certificate, and then began to work as before, without observing any procedures, and the certificate simply hangs on a wall for increase of image?

- It is necessary to confirm the certificate constantly, certificating body regularly comes with inspection check to be sure, that the company which has received the certificate, really works on this system. We were certificated by London office of Swiss company SGS, they come with inspection each half-year. But I am glad, that checks are made so frequently. After each check we have remarks and recommendations for their correction, so the work proceeds.

The system of quality management ISO 9000 is first of all an administrative system, but a key word here nevertheless is "management". And already competent and correctly built managements automatically result in release of a product (or services) of stably high quality.

Correctness or abnormality of any management should be estimated on final parameters of business and if available conclusive success presents, it means that management is successful.

Natalia Litvinova

Magazine « Technology of management » # 6 ( 30 ) (pages 34-36)