Industrial Forum on Enlargement - Working Group on Quality Policy

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Executive summary

With the intensification of accession negotiations, the need for European Industry to play an active role in the enlargement process is emerging. The Industry Council recognises this and has set as an objective the creation of an Industrial Forum on Enlargement to allow industry to begin discussion on some important topics.

Amongst other issues Quality was considered a key topic for Industry in both the EU and candidate countries. Fourteen experts from the EU and candidate countries were invited by the European Commission (DG Enterprise) to participate to the three working meetings on Quality. The group met between June and December 1999 with the objective of drafting three main recommendations to be presented to the Industrial Forum.

In order to build the recommendations on a wider consensus the working group decided to validate the results of each meeting with a questionnaire, which was sent to representatives of industry from both sides.

The first step was to identify the scenario through the classification of major perceived strengths, weaknesses, opportunities and threats (of the enlargement process both for EU and candidate countries

The results of this first survey were encouraging. A total of 296 questionnaires from industries and industrial organizations of both EU and candidate countries were received involving 27 countries (11 EU and EFTA member states, 10 applicant countries and 6 other countries).

A clear message emerged in response: “Enlargement challenges induce a positive pressure which can be enhanced building on existing trade and business relationships between EU and applicant countries.”

The second step correlated strengths, weaknesses, opportunities and threats with the current changes in the environment (such as the impact of the information society, globalisation, increased requirements on environmental aspect and on corporate social responsibility). At the end of this exercise the working group proposed ten draft recommendations ranging from company to industrial policies.

The third step was to rank the 10 recommendations and to identify the three most important according to the results of the second questionnaire.

The first recommendation is: communication in both directions and exchange of best practice, taking into consideration the diversities existing in different countries

The second recommendation is: establishing and keeping improving co-operation among governments, R&D organisations and industry.

What kind of co-operation and how to develop it was discussed widely in the working group. Strengthening the links existing among government bodies, universities, European Quality organizations and Business Support Organizations such as Industrial associations, Chambers of Commerce and Euro Info Centres seems to be the most successful way to follow.

The third recommendation is: revealing and applying the most effective ways for innovation, promotion and dissemination of knowledge about quality and techniques.

How to ensure such dissemination in the most effective way is a critical point. Much progress has been achieved in candidate countries to align their quality infrastructure to the Quality models, but a wide gap still exists for the implementation of quality concepts and techniques.

The first chapter describes the context in which the industrial Forum on Enlargement was created. The second chapter describes the overall scenario focusing on strengths, weaknesses, opportunities and threats. The third chapter is dedicated to the deployment of the scenario in order to build the recommendations. The fourth chapter presents the three most important recommendations as a final result of the investigation process.

1 Industrial Forum on the Enlargement: strengthening the dialogue between all parties.

1.1 Context

The intensification of negotiations on accession shows a need for European industry to take a more active part in the enlargement process. Thus during the Industry Council which took place in Brussels on 16 November 1998 with the participation of Ministers of Industry of the European Union and of the CEEC applicant countries, a decision was taken to create an Industrial Forum on Enlargement. The Council decision confirmed the conclusions reached during the 5 October meeting, between representatives of Industry of both the EU and the applicant countries concerning the need for such a Forum.  

The objective of this Forum, which was a permanent and flexible instrument for dialogue between EU and applicant countries, was to involve Industry in the Enlargement process in order to:

1.   exchange information on industrial aspects of the pre-accession strategy (monitoring of the implementation of EU legislation, restructuring and privatisation process, …);

2.    make proposals to national authorities and to the European Commission in order to solve current problems linked to the Enlargement process.

1.2 Structure and Topics

Three working groups were created around three topics allowing a real dialogue between partners of both sides:

3.    - Industry and Enlargement: the example of telecommunications and the Information Society.
4.     - Impact of Enlargement on Industry and the Environment.
5.     - Quality policy: a global objective for Member States and Applicant countries.
 

Their findings will be presented during a conference organised by the European Commission gathering top industrialists of both sides. The European Commission will invite representatives of Industry to prepare recommendations on these specific topics which will be forwarded to the political authorities.

The objectives and the specific questions, which will be tackled by the Quality policy-working group as far as we are concerned, are defined as follows:
 

1.3 Quality policy group

The specific objectives of this particular working group are listed hereafter.

1.  To identify how industry from both sides could benefit from the development of knowledge and culture about quality.
2.  To establish by which means and concrete actions, industry and public authorities on both sides can together play a determining role for the development of the as a factor for economic integration, strengthening internal and external industrial competitiveness; the convergence of markets towards high quality objectives for the benefit of industry itself, citizens, consumers and society as a whole.
 

A draft working plan was also available:

3. to establish the main differences in terms of quality culture and developments, and quality-related technical environment, in particular in the field of industrial activities, between applicant countries and the EU;

4.  to evaluate the influence of these « distortions » within the context of the enlargement process, in particular as regards access to markets, industrial competitiveness and potential for industrial co-operation between applicant countries and the EU;

5.  to identify short, medium and long term specific problems and needs of industry on both side as regards quality, considering the prospects and current and future challenges resulting from the enlargement process;

6.  to establish quality policy principles, objectives as well as concrete action lines arising from the analysis of the current situation, the needs of industry, as well as from the opportunities offered by the prospect for enlargement, in a win/win perspective between EU and applicant countries industry;

7.   to specify the role and responsibilities of the different partners and interested parties, in particular of industry itself, in their capacities to define and implement effective schemes and mechanisms within the framework of this policy.
 
These specific objectives were used as a starting point for the working group in order to describe the scenario. What are the strong and weak aspects of the use of quality policies as a strategic tool for enlargement? In order to give some possible solutions, representatives of industry were asked to take part in a SWOT analysis to identify relevant strengths, weaknesses, opportunities and threats. During the first session of the Quality Policy Working Group a questionnaire survey was prepared in order to build, with a larger consensus, on the results of the SWOT analysis developed during the meeting. The objectives and results of this questionnaire are described in the following part.
   

2 Setting the scenario

2.1 First Working group: SWOT Analysis

The WG carried out a SWOT Analysis aiming at developing a scenario for quality matters in the context of enlargement.

In order to carry out this exercise, participants were invited to consider quality related issues as regard both conformity and competitiveness challenges, i.e.

1.   the implications and consequences for industry resulting from the necessity to  adapt to the Acquis Communautaire in candidate countries in the field of the putting on the market and the free circulation of industrial products

2.   the capacity of industry on both sides to compete and to win internally and externally

2.2 Environment and Context

The WG intended to identify those key features and conditions that characterise the environment and the context in which the enlargement process takes place, to be taken into account when formulating recommendations and proposals for action.

These are as follow :

3.      Impact of ICT and information society
4.      Globalisation of markets and economy, world-wide competition
5.      Higher degree of achievement of the Internal market (compared with previous EU enlargement)
6.      Increased society requirements on environmental and social issues
7.      Openness to EU and willingness to learn for change in candidate countries
8.      Existing initiatives

2.3 First Questionnaire: rationales

This questionnaire has been designed in order to gain further insights from industry (EU + EFTA member states and applicant countries) about the development of quality in the context of the enlargement. The final results will be used to draft three main recommendations, which will be presented during the Industrial Forum on Enlargement (a copy of the questionnaire is enclosed in annex I).

The attached questionnaire was sent to major industrial economic actors dealing with quality matters:
9.     Manufacturers, retailers and distributors
10. Business organization (i.e. chambers of commerce, Euro Info Centers, Trade Federations…)

Quality infrastructure bodies (i.e. standardization, accreditation, conformity assessment and metrology bodies). To this purpose three main networks were used to diffuse the questionnaires both in the Union + EFTA and in applicant countries: EOQ affiliate members, EFQM members and National PRAQIII co-ordinators.
Several multinational companies as well as SMEs and business support organizations have answered to this questionnaire.

2.4 The diffusion of the questionnaires

A total of 296 questionnaires were received involving 27 countries:
11 EU and EFTA member states,
13 applicant countries , 3 other countries-(Russia, Ukraine and Croatia).

Note: during this first phase on the analysis only the opinion of EU +EFTA and applicant countries was taken into consideration

2.5 The scores

The working group identified 21 statements, which provide a wide range of possible permutations of different scenarios. Respondents were asked to choose among them and to indicate their preference (high, low, no preference). The analysis took into consideration the different entries. From the results it appears that respondents perceive quality more as an opportunity rather than a threat.

Scenario with the high-test score:

11.    Building on existing trade and business relationships between EU and applicant countries (Statement Q18- score 88 out 100)
12.    Existing young societies with willingness to learn and to improve (Statement Q19- score 87 out of 100)
13.     In the EU several initiatives already exists in the field of Quality (i.e. European Quality Policy, National Quality policies) and several European Quality networks are today very active. Industry of applicant countries could learn from the existing. (Statement Q17- score 84 out of 100)

2.6 The SWOT analysis

Ranking the statements according the results of the SWOT analysis provides the following results.

Strength


Q15-Enlargement challenges induce a positive pressure on companies and push them to improve their performances

Opportunity
Q18- Build on existing trade and business relationships between EU and applicant countries

Weakness
Q5-Lack of governmental financial support for quality in applicant countries

Threat
Q10- Existing difficulties to convince top management and to diffuse quality culture inside enterprises of applicant countries

2.7 The regional approach

The results provided so far describe a scenario in which the opinion of EU + EFTA and the one from applicant countries is added. Graph 2 provides a spread that highlights the difference in opinion between EU + EFTA and applicant countries.

The main difference among the two regions is that the strongest statement for applicant is Q19 “existing young societies with willingness to learn and to improve”, while for the EU + EFTA countries the strongest statement is Q 17 ‘…Industry could learn from the existing initiatives in the quality field’. This difference reflects the idea that applicant countries have a strong perception on their potential while EU + EFTA countries stress the importance of developing/improving existing initiatives.

3 Deployment of the scenario

3.1 Second working group: developing the recommendations

The discussion over the results lead the WG to identified 4 points on which the WG should focus the attention in order to answer to the needs of Industry:

14.   expanding success from the current existing trade and business relationship and existing European Quality networks;
15.  taking advantage of enlargement challenges which induce companies in applicant countries to improve their performances and building on young societies willing to learn and improve;
16.  promoting effective quality strategies, quality culture within firms, building on existing knowledge;
17.   Developing governmental quality policies and strategies and improve the governmental support (financial, fiscal..) in order to implement the required quality infrastructure.

The 4 conclusions were correlated with the changes in the environment, identified during the previous WG meetingThe WG members were asked to propose some recommendations, which would answer at the same time on the results of the questionnaire and the changes in the environment.

3.2. Identification of the draft recommendations

The main recommendations, derived from the previous exercise are listed below:

18.   R1.Facilitating the transfer and exchange of best experience/practice
19.   R2. Improving National Quality Policies in applicant countries
20.   R3. Further developing EU policies and programmes on quality
21    R4. Providing further training on quality matters
22    R5. Enlarging the debate around quality (i.e. stakeholder approach) to meet the requirements of society as a whole
23.   R6. Strengthening or developing cooperation between universities and industry
24.  R7. Pushing companies to apply quality systems models
25.    R8. Developing measurement tools
26.    R9. Creating a virtual resource centre for  quality (quality observatory)
27.  R10. Involving mass media for quality promotion and dissemination

A second questionnaire (see Annex II) was sent out to the different networks in order to invite Industry to rank the recommendations as well as to propose new ones.

3.3. Definition of the criteria to prioritize the recommendations

A set of criteria for the prioritisation was proposed. The criteria are the following:

28.  Does the recommendation answer the weaknesses and threats, which were identified in the first questionnaire?
29.  Is it cost effective (i.e. easy to implement)?
30.  Is the recommendation efficient?

31.  Is there a clear definition of the ownership in the implementation of the recommendation?
32.  Are the results easy to measure?

These criteria will be used to rank the final recommendations.

3.4 The second questionnaire: validation

This questionnaire like the first one has been designed in order to validate the recommendations and was sent to the same target group. The objective of this second questionnaire was to allow the Working Group to prepare 3 recommendations, which will be presented to the Industrial Forum on Enlargement.

A total of 51 questionnaires were received involving 8 countries.

3.5 Selected priorities

The questionnaire asked to give a priority (1=max to 5= min) to the 10 recommendations.
The table that follows illustrates the ranking of the results.

Rec

Priority 1

Priority 2

Priority 3

Priority 4

Priority 5

Not a priority

Tot Score

R1

18

8.8

3.6

1.6

0.8

-4.8

28

R4

7

10.4

6

3.2

1

-7.8

19.8

R6

8

8

4.2

1.6

0.6

-4.8

17.6


R2

11

8.8

1.8

2

1.6

-13.2

12

R10

4

4.8

4.2

2.4

1.8

-9.6

7.6

R3

4

5.6

5.4

1.6

1

-11.4

6.2

R7

3

7.2

8.4

1.2

1.2

-16.2

4.8

R5

7

4

3.6

0.8

0.8

-16.2

0

R9

3

0.8

1.8

4.4

0.8

-11.4

-0.6

R8

4

4

4.8

1.2

0.8

-17.4

-2.6

Note: Priorities have been weighted according the following schema.

  • Priority 1= 1
  • Priority 2= 0.8
  • Priority 3=0.6
  • Priority 4= 0.4
  • Priority 5= 0.2
  • Not a priority=-0.6

    The third Working Group, which took place on December 13th 1999 in Brussels, was dedicated to the analysis of the answers gathered during our last survey, to the adjustment of the recommendations and to the preparation of a detailed plan to apply these recommendations. On the basis of this work important conclusions have been drawn along with the definition of the challenge for the next decade.

    The results of this third working group are presented in the following part of this document.

    4 Selected recommendations

4.1 Recommendations from the Working Group

The working group after an analysis of the results proposed the following three main recommendations:

1. Communication in both ways and exchange of best practice, taking into consideration the diversities existing in different countries
2.  Establishing and keeping improving co-operation among governments, R&D organisations and industry
3.   Revealing and applying the most effective ways for innovation, promotion and dissemination of quality knowledge and techniques.

4.2 Concrete actions proposed:

For each one of the three recommendations a series of concrete actions were proposed:

Recommendation1

1.   To establish a regional quality award and exchange of winners in an award ceremony.
2.   To have a free access to benchmarking database.
3.   To publish the best way to excellence of candidates organisations.
4.   To continue supporting the transfer of know-how within companies working on both ranks of Europe.
5. To develop IT means to accelerate the transfer of know-how and data (create a virtual resource centre for quality).
6.   To promote Research studies on the richness of diversity and find a way of preserving it.

Recommendation 2

7.  To study worldwide success for achieved multicultural projects and to find the roots for success.
8.   To promote sabbaticals and the exchange of people from different organisations.
9.   To have Industrial European Organisations committed in European Quality Organisations with corresponding commitment at the National level.
10. To strengthen the links among the different European Bodies acting in European Quality Programmes (EIC, Chamber of Commerce, NGOs) and to develop, for example, new services for industrial organisations.

Recommendation 3:

  To survey and assess what has been done so far world-wide and to propose new ideas.

11. To develop research by measuring the efficiency of Quality Programmes.
12. To include quality matters in regular meetings of the target audience.
13. To develop and promote good example among diverse industries and organisations.
14. To have a common Forum between National industries organisations and National quality organisations.
15. To promote exchange of experience between CEOs and high level Government officials and other Decision Makers.
16. To develop awards for CEOs.
17. To use distance learning for promoting, disseminating and improving professional knowledge using IT tools.

5 Conclusions

From a micro economic dimension it appears that the exchange of best practices is the far most important aspect, which could transform the diversities existing in different companies into a competitive advantage.
On the other hand, from a policy perspective two major issues were considered as a priority: cooperation and dissemination of knowledge about quality.
Cooperation emerged, from the analysis, as a factor of success, which should be fostered among key stakeholders in the field of quality.
Moreover, continuous dissemination of knowledge about quality will stimulate industrial competitiveness and will thus facilitate the creation of a vision about quality in both sides of Europe.

Annex 1

Questionnaire1

Quality for the Enlargement: Strengths and Weaknesses from the point of view of Industry

How to compile the questionnaire
The first column “Do you agree?” requires an answer YES or NO. Yes, if the reader feels that the statement on the weakness/threat/strength/opportunity is relevant, NO in the opposite case.

The second column “What is the relevance?” requires a weight (HIGH or LOW) if the statement was considered relevant to the opinion of the reader. Note applicant countries are Central and Eastern European countries, Turkey, Cyprus and Malta.

All questionnaires should be transmitted by the 10 of August.

Please send the questionnaire via e-mail to stefano.sedola@cenorm.be, Full address is Stefano Sedola c/o CEN Technical Cooperation Unit, Rue de Stassart, 1060 Brussels, Tel +32 2 5500980 Fax +32 2 5500819

 

 
Statement
Do you agree?
If YES. What
is the
relevance?
   
Yes
No
High
Low
Weakness
         
1
The Quality Infrastructure of applicant countries is not aligned to the European models (standardization, accreditation, conformity assessment bodies, metrology labs…)
       
2
Obsolescence of the equipment in the Quality Infrastructure of applicant countries (Testing laboratories, metrology labs…)
       
3
Lack of industrial knowledge and understanding about regulation and rules governing the free circulation of industrial products in applicant countries
       
4
Lack of education in modern management techniques in applicant countries
       
5
Lack in governmental financial support for quality in applicant countries
       
6
Lack of Quality Policy/strategy at governmental level in applicant countries (Poor National quality policy, no Quality Awards…)
       
 
Threats
       
7
Industry is afraid that quality approaches may introduce excessive burdens to the companies of applicant countries
       
8
Industry is afraid that quality approaches are not suitable to answer to industrial changes in the applicant countries
       
9
Lack of mutual confidence and credibility of conformity assessment procedures in applicant countries
       
10
Existing difficulties to convince top management and to diffuse quality culture inside enterprises of applicant countries
       
11
Obstacles in understanding that quality is not only a tool for conformity assessment but also an instrument to improve competitiveness
       
 
Strengths
       
12
Some organization and companies in applicant countries can play a coaching role being well advance in the quality culture
       
13
There are groups of people well trained on quality matters in applicant countries (i.e. quality assessors)
       
14
Adopting the “new approach” in applicant countries will induce the reinforcement of such philosophy inside the Union
       
15
Enlargement challenges induce a positive pressure into companies and push them to improve their performances
       
16
Quality approach represent an opportunity for companies in a weak competitive position (greater marginal effect on improvement when starting from a weak position).
       
  Opportunities        
17
In the EU several initiatives already exists in the field of Quality (i.e. European Quality Policy, National Quality Policies) and several European quality organisations/network are today very active. Industry of applicant countries could build and learn from the existing
       
18
Build on existing trade and business relationships between EU and applicant countries
       
19
Existing young societies with willingness to learn and to improve
       

Annex 2

Questionnaire 2

Quality and Enlargement: Recommendations and Actions

How to compile the questionnaire
Table 1 is designed to allow for ranking recommendations on the basis of priority criteria.  Respondents should select the 5 most relevant recommendations amongst the 10 proposed and rank them in order of importance (from 1= maximum priority to 5= minimum priority).

In table 2, respondents are asked to propose concrete actions to be launched or carried out under each of the 3 top priority recommendations they have identified from the first table. When doing this, respondent should try to answer WHY, WHO (with Whom), and HOW the action can be put into practice.

The questionnaire should be circulated within your network and sent back to Stefano Sedola
c/o CEN TCU -Rue de Stassart 36-1060 Brussels- Fax +32 2 5500819- e-mail stefano.sedola
@ cenorm.be

The deadline, suggested by the working group, is the 11th of October. However all the questionnaires which will be received before the 31 of October 1999 will be taken into consideration in the analysis.

Please note that the results of the survey will be anonymous.

COUNTRY____________________________________________________________________

NAME OF THE COMPANY_______________________________________________________

Table 1

Recommendations

Priority (1 to 5)
1= max 5= min

1.Facilitating the transfer and exchange of best experiences/practices  

 

2. Improving National Quality Policies in applicant countries  

 

3. Further developing EU policies and programs on quality  

 

4. Providing further training on quality matters  

 

5. Enlarging the debate around quality (i.e. stakeholder approach) to meet the requirements of society as a whole  

 

6. Strengthening or developing cooperation between universities and industry  

 

7. Pushing companies to apply quality systems models  

 

8. Developing measurement tools  

 

9. Creating a virtual resource centre for  quality (quality observatory)  

 

10. Involving mass media for quality promotion and dissemination  

 


Table2

Recommendation number
(from table 1)

 

Proposed actions (try to explain WHY, WHO, HOW the action can be put into practice)