PERPAMSI

Persatuan Perusahaan Air Minum Seluruh Indonesia

Indonesian Water Supply Association
www.perpamsi.org

INDONESIAN EXPERIENCES IN
ISO 9001:2000 CERTIFICATION
OF PUBLIC WATER UTILITY
SERVICES
REGIONAL WORKSHOP TO DISSEMINATE WATER SUPPLY AND
SANITATION STANDARDS OF QUALITY OF SERVICES
24 – 27 July 2007, Kampala / Uganda
Dr. Werner BRENNER, Advisor Finance & Management
 OVERVIEW OF PRESENTATION
A. INTRODUCING THE INDONESIAN WATER SECTOR
B. OUTSET SITUATION
C. OBJECTIVE FOR IMPLEMENTATION OF ISO 9001:2000
D. SCOPE & PROCESS OF QUALITY CERTIFICATION
E. PROBLEMS & SUCSESS FACTORS
F. BENEFITS OF ISO 9001:2000 CERTIFICATION
G.WHAT NEXT
H. PICTURES

WBI/InWEnt, Kampala, 24-27 July, 2007 - ISO Workshop

 A: THE INDONESIAN WATER SECTOR
Facts about PERPAMSI, the Indonesian Water Supply Association

 Established:
 1972 by the Ministry of Home Affairs
 Organization:
 Head quarter in Jakarta (30 employees)
 27 Provincial offices to coordinate activities
 Members:
 All 328 Indonesian public water utilities
 Around 100 extraordinary members (suppliers, investors,…)
 Services:
 Typical association services to the members, governmental institutions,
financing institutions, investors, donors and others
 Training institution under PERPAMSI

WBI/InWEnt, Kampala, 24-27 July, 2007 - ISO Workshop

A: THE INDONESIAN WATER SECTOR (cont)

WBI/InWEnt, Kampala, 24-27 July, 2007 - ISO Workshop

 A: THE INDONESIAN WATER SECTOR (cont)

 Water utilities are owned by local governments and

controlled by local parliaments
 Coverage rates for piped water supply
 around 35% for urban areas and
 around 20% for overall Indonesia (ca. 6,5 million household
connections are installed)
 Urban water supply provided by 328 water utilities
 Only 5% of water utilities have more then 50,000 connections
 60% have less than 10,000 connections
 Less than 25% of PDAMs considered to be “financially
viable”
 Overall coverage rate for sewerage services < 1%
WBI/InWEnt, Kampala, 24-27 July, 2007 - ISO Workshop
 A: THE INDONESIAN WATER SECTOR (cont)

Water Supply Coverage Development (Indonesia) 1993 - 2003

18 %

16 %

14 %

12 %

10 %
19 9 3 19 9 5 19 9 7 19 9 9 2001 2003

C ov e r a ge 12 % 13 % 14 % 15 % 16 % 17 %

WBI/InWEnt, Kampala, 24-27 July, 2007 - ISO Workshop

 A: THE INDONESIAN WATER SECTOR (cont)

Water Utiltiy Structure Development 1999, 2001, 2003

120

99
100
86 86 1999 2001 2003
number of utilities

80 75 73
63 64
60 55
47 49
43
37
40

17 17
20 13 13
9 9 7 9
5

0
< 2.000 2 - 5.000 5 - 10.000 10 - 20.000 20 - 50.000 50 - 100.000 > 100.000
category of connections

WBI/InWEnt, Kampala, 24-27 July, 2007 - ISO Workshop

 B: OUTSET SITUATION
THE SUSTAINABILITY CHALLENGE

Cycle of
Physical &
Commercial
Assets deteriorate & Decline
expansion is difficult if
full economic costs are
not recovered. Service • Low tariffs
to the poor & • Declining revenues
wastewater suffer. • Unpaid bills
• Inability to access financing
• Declining credit rating and investment
WBI/InWEnt, Kampala, 24-27 July, 2007 - ISO Workshop
B. OUTSET SITUATION (cont)

1. Human Resources
1.1 Low level of the employees’ competence
2. Equipment
2.1 Old treatment plant equipment
2.2 Equipment breakdown development (Fig. 1)

42
42
40
No. of Problems

38
38
36
Breakdown
36
34 35
32

30
Nop. Dec. Jan. Peb.
2004 - 2005
Fig. 1 Equipment Breakdown
WBI/InWEnt, Kampala, 24-27 July, 2007 - ISO Workshop
B. OUTSET SITUATION (cont)

3. Water Treatment Plant System (Cicokol WTP; 1.100 liter per sec.)
3.1 No standard operating procedures in place
3.2 Low efficiency & effectivity in the operation of the WTP (Fig. 2)
90
80
70
60
Hour

50 Waiting Time
Repair Time
40
Breakdown Time
30
20
10
0
Nov. Dec. Jan. Feb.
2004 – 2005
Fig. 2 Breakdown Time for Maintenance

WBI/InWEnt, Kampala, 24-27 July, 2007 - ISO Workshop

 B. OUTSET SITUATION (cont)
4. Water Quality
4.1 There was no person in charge to handle & follow up the
customer complains
4.2 Low water quality (eq : Turbidity & Chlor residue) (Fig. 3 & 4)

3 ppm
1
2.86 0.99
0.96
2.5 2.63
0.9
0.8 0.85
2.35
0.78
2 2.15
0.7
Standard
0.6 0.6 ppm
Standard
1.5 1.5 NTU
NTU 0.5
Chlor Residue
1 0.4
0.3
0.5
0.2

0 0.1
Nov. Dec. Jan. Feb. 0
Nov. Dec. Jan. Feb.
2004 - 2005
2004 - 2005
Fig. 3 Water Turbidity
Fig. 4 Water Chlor Residue
WBI/InWEnt, Kampala, 24-27 July, 2007 - ISO Workshop
 C. OBJECTIVES FOR THE IMPLEMENTATION
OF ISO 9001:2000

1. Increase customers satisfaction

2. Improve the company’s performance.
3. Improve efficiency & effectivity of working system
4. Improve employees’ capacity & responsibility
5. Better communication & improvement of data quality
6. Better customers & suppliers relationship

WBI/InWEnt, Kampala, 24-27 July, 2007 - ISO Workshop

C. OBJECTIVES FOR THE IMPLEMENTATION
OF ISO 9001:2000 (cont)

Management S
C Responsibility C A
U R U T
E
S I
S Q
S
T
U
Resource Measurement, Analysis &
T F
I
R Management Improvement O A
O E M C
M M
E T
E
E N R
I
Product O
R T Input Realization Output
S Product N

PROCESS APPROACH

WBI/InWEnt, Kampala, 24-27 July, 2007 - ISO Workshop

 D. SCOPE & PROCESS OF ISO 9001:2000
CERTIFICATION

I. SCOPE OF ISO 9001:2000 CERTIFICATION

Operation & maintenance of a water treatment plant
(capacity 1.100 liter per second)

II. CERTIFICATION PROCESS

1. First Stage:
1.1 Determine the management commitment
1.2 Appoint the team member to develop the system
1.3 Socialization of the ISO 9001:2000 quality
management system
1.4 Determine scope of certification

WBI/InWEnt, Kampala, 24-27 July, 2007 - ISO Workshop

D. SCOPE & PROCESS OF ISO CERTIFICATION
(cont)
2. Second Stage:
2.1 Selecting the employees who will develop the system
2.2 Training for the working group members on ISO
2.3 Developing the quality manual
2.4 Developing the quality policy & quality objective
2.5 Developing the procedures & working instructions
2.6 Socializing the documents (procedures, working
instructions, quality policy) with the employees

WBI/InWEnt, Kampala, 24-27 July, 2007 - ISO Workshop

D. SCOPE & PROCESS OF ISO CERTIFICATION
(cont)
3. Third Stage:
3.1 Implementation of the ISO 9001:2000 system
3.2 Revision of documents if the trial run is not appropriate
3.3 Internal audit training
3.4 Execution of internal audit
3.5 Corrective & preventive actions plans
3.6 Management review meeting

WBI/InWEnt, Kampala, 24-27 July, 2007 - ISO Workshop

D. SCOPE & PROCESS OF ISO CERTIFICATION
(cont)
4. Fourth Stage:
4.1 Determine certification body
4.2 Pre audit by certification body
4.3 Corrective & preventive actions
4.4 Final audit by the certification body
4.5 Recommendation for ISO 9001:2000 certificate

WBI/InWEnt, Kampala, 24-27 July, 2007 - ISO Workshop

 D. SCOPE & PROCESS OF ISO CERTIFICATION
(cont)
Fig. 5 Implementation Steps Table

2005
TOTAL
No. DESCRIPTION MONTH JAN PEB MAR APR MAY JUN JUL AUG SEP OCT NOP DES

A. FIRST STAGE 0.5

1. Management Commitment 0.5

2. Member of Work Group 0.5

3. Socializations 0.5

4. Scope of Certification 0.5

B. SECOND STAGE 4

1. Training ISO 9001:2000 1.5

2. Develop the Quality Manual 2.5

3. Develop the Procedure, Work 3.25

Instruction

4. Socialization of documents 2

WBI/InWEnt, Kampala, 24-27 July, 2007 - ISO Workshop

D. SCOPE & PROCESS OF ISO CERTIFICATION
(cont)
Fig. 5 Implementation Steps Table

TOTAL 2005
No. DESCRIPTION MONTH JAN PEB MAR APR MAY JUN JUL AUG SEP OCT NOP DES

A. THIRD STAGE 3

1. Implementation System 2.5

2. Revision of Documents 1

3. Internal Audit Training 0.25

4. Execution of Internal Audit 1

5. Corrective & Preventive Actions 1

6. Management Review Meeting 0.25

B. FOURTH STAGE 3
1. Determine Certification Body 1

2. Pre Audit 0.5

3. Corrective & Preventive Actions 0.5

4. Final Audit 0.5

5. Accepted the ISO 9001:2000 -

Certificate

WBI/InWEnt, Kampala, 24-27 July, 2007 - ISO Workshop

D. SCOPE & PROCESS OF ISO CERTIFICATION
(cont)
Fig. 6 ISO 9001:2000 CERTIFICATE

WBI/InWEnt, Kampala, 24-27 July, 2007 - ISO Workshop

 E. PROBLEMS & SUCCESS FACTORS

I. PROBLEMS DURING THE IMPLEMENTATION PHASE

DEVELOPMENT PHASE
1. Difficulties in “translating” ISO 9001 elements into water treatment
plant management activities.
2. The limitations of human resources and experience in applying the
ISO 9001.

IMPLEMENTATION PHASE
1. Reluctance to improve or change
2. Quality management system is seen as another managerial
burden.
3. Lack of discipline in documentation

WBI/InWEnt, Kampala, 24-27 July, 2007 - ISO Workshop

 E. PROBLEMS & SUCCESS FACTORS (cont)

II. KEYS SUCCESS FACTORS

1. Prime commitment from the lowest to the highest staff
level in the company.
2. The staff in the company is aware about ISO 9001:2000
standards.
3. High staff motivation and discipline.
4. Team building and co-operation

WBI/InWEnt, Kampala, 24-27 July, 2007 - ISO Workshop

F. BENEFITS OF ISO 9001:2000 CERTIFICATION
Internal :
1. Improvement in the company’s performance
2. Better working methods
3. Main tasks are undertaken more efficient and effective.
4. Media of continual improvement

External :
1. Increase of customers satisfactions
2. Stakeholders and customers’ complaints are handled
and anticipated better and better
3. Appreciation from external parties to the company’s
existence are increased.

WBI/InWEnt, Kampala, 24-27 July, 2007 - ISO Workshop

F. BENEFITS OF ISO 9001:2000 CERTIFICATION
(cont)
Before After
45
40
35
30
25
20
15
10
5
0
Nov. Jan. Jun. Aug. Oct. Dec
'04 '05 '06 '06 '06 '06
Fig. 7 Equipment Breakdown
WBI/InWEnt, Kampala, 24-27 July, 2007 - ISO Workshop
F. BENEFITS OF ISO 9001:2000 CERTIFICATION
(cont)
Before After

90
80
70
60
50 Waiting Time
Hour

Repair Time
40
Breakdown Time
30
20
10
0
Nov. Jan. June Aug Oct. Dec.
'04 '05 '06 '06 '06 '06
Fig. 8 Breakdown Time Maintenance
WBI/InWEnt, Kampala, 24-27 July, 2007 - ISO Workshop
F. BENEFITS OF ISO 9001:2000 CERTIFICATION
(cont)
Before After
3

2.5

1.5
NTU
1

0.5

0
Nov. Jan. June Aug Oct. Dec.
'04 '05 '06 '06 '06 '06
Fig. 9 Water Turbidity
WBI/InWEnt, Kampala, 24-27 July, 2007 - ISO Workshop
F. BENEFITS OF ISO 9001:2000 CERTIFICATION
(cont)
ppm Before After
1
0.9
0.8
0.7
0.6
0.5
C h l or Re si du e
0.4
0.3
0.2
0.1
0
Nov. Jan. June Aug. Oct. Dec.
'04 '05 '06 '06 '06 '06
Fig. 10 Water Chlor Residue
WBI/InWEnt, Kampala, 24-27 July, 2007 - ISO Workshop
F. BENEFITS OF ISO 9001:2000 CERTIFICATION
(cont)

Fig. 11 Audit Findings

GRADE/No. OF FINDINGS
KIND OF AUDIT DATE OF AUDIT MAJOR
TOTAL
MINOR NC RC SFI xLRQA
NC

Final Audit 25 – 26 Oct 2005 - - 8 7 - 15

Surveillance Audit 1 16 May 2006 - - 2 2 - 4

Surveillance Audit 2 28 Nov 2006 - - 3 1 - 4

Audited by Lloyd’s Register Quality Assurance

Note :
1. Major NC = Major Non Conformity
2. Minor NC = Minor Non Conformity
3. RC = Requires Correction
4. SFI = Scopes for Improvement
5. xLRQA = Issue for Follow-up by LRQA at next visit

WBI/InWEnt, Kampala, 24-27 July, 2007 - ISO Workshop

 G. WHAT NEXT?

ON GOING :
1. Implementation of safety management system (OHSA 18000)
2. Improve the internal audit
3. Improve the working efficiency and effectively
4. Paperless System for all documents of the quality
management system

NEXT STEPS :
1. Implementation of total productive maintenance (TPM)
3. Online monitoring system
4. Web based data management

WBI/InWEnt, Kampala, 24-27 July, 2007 - ISO Workshop

THANK YOU!

WBI/InWEnt, Kampala, 24-27 July, 2007 - ISO Workshop