With Cebu chosen to host the 12^th Association of Southeast Asian Nations (Asean) Summit and several related meetings, the business sector in the city, and the entire province in general, are made to face the implications of globalization and free trade.

Several industry players in Cebu know how globalization will affect their respective operations and have taken advantage of its benefits. But there are those who fear and are hurt by the vanishing of trade barriers; these are mostly small and medium enterprises (SMEs) – a major component of the Philippines’ economic backbone.

Having been in the Philippines for years, the German Development Service (Deutscher Entwicklungsdienst or DED) saw this concern and has implemented several strategies, identified by the local stakeholders themselves, to help SMEs cope and take advantage of globalization. One of these strategies is providing basic awareness on quality management systems that conform to international standards – the ISO 9000, 2000 series.

The need for awareness on ISO 9000 quality management system (QMS) surfaced during a survey conducted by the Cebu Chamber of Commerce and Industry (CCCI) among its member-organizations. The CCCI has over 800 direct members and 2,000 affiliates in different business and industry sectors, most of which can be considered SMEs.

Upon the request of the CCCI, the DED designed a project that will provide information and awareness among the Chamber’s member-organizations on QMS as well as develop strategies that will enable the Chamber to introduce industry standards and management systems to its members.

The DED appointed Mr. Nikolaus Stumpf to implement the project. The project’s main objectives are to establish guidelines and a framework for CCCI to help members establish QMS and eventually acquire certification, and to set up a network that will respond to the needs of the industry during the process.

But an organization cannot help its members without first helping itself. Thus, the CCCI began the process of acquiring ISO 9000:2000 certification in April 2005. With assistance from DED, the CCCI was granted ISO 9000 certification in November 2006.

The CCCI now prides itself as the first chamber of commerce in the Philippines, the third in Southeast Asia and the fourth in the world, to achieve an ISO 9000 certification.

“The implementation of quality management systems is a practical way to ensure business growth and protection of existing jobs as well as the creation of new ones through improved competitiveness and opening of new markets,” Mr. Stumpf said.

QMS is “very important” for a company or any organization to ensure transparency and stability of its entire structure.  Companies and organizations in Europe and other developed countries require their partners to have ISO-certified QMS.

But even if an organization or company is not able to decide right away to seek ISO certification, Mr. Stumpf said establishing QMS would still be a great help in improving and maintaining efficiency of operations.

Since the whole management system is documented, each member of the organization is aware of his or her role, responsibilities and functions in the structure. The QMS does away with “passing the buck” – a problem that makes an organization inefficient because nobody is willing to own up to his or her role and responsibilities.

The system also allows easy substitution of duties whenever someone in the organization is not present, and preventing a vacuum in the structure. Thus, even when a vital part of the structure is missing, the entire organization will work just as efficiently.

For companies and organizations, knowing that a certain company or industry partner has QMS in place is an assurance of stability. Having an ISO-certified QMS is a declaration of continuous improvement in the organization, with customer satisfaction as the main goal.

But while many companies and organizations want to seek ISO certification to gain investors and new markets, the process is not that easy for SMEs. The ISO process, from documentation to training to the actual certification, can be very costly. This is where the DED project is most helpful. 

The DED and the CCCI will implement in 2007 the QMS basic awareness training project to members of the Chamber.  This means the first step in the process will already be taken care of, reducing the cost on companies and organizations.

The project will also involve linking Chamber member companies and organizations to ISO certification consultants, and possibly make arrangements for reduced fees.

For Chamber member companies and organizations, and in business parlance, this has got to be the sweetest deal as any.

Text: DED
Photos: Robby M. Alugar (CCCI)