Quality management and certification in the virtual enterprise

Abstract

In the global market, Small and Medium Enterprises (SMEs) face increasing competition from large corporations for the control of the more profitable business areas. These corporations compensate for their lower agility and flexibility with easier access to information, resources and economies of scale. The virtual enterprise model of a business organization is thus often seen as one of the best strategic moves for SMEs to achieve a global reach without compromising their independence. This emerging business paradigm certainly brings new challenges to many areas of the enterprise, one of which is the quality assurance of external processes and contracted products and services. This paper introduces and discusses the issue of quality assurance within the scope of virtual and networked enterprises, and presents a novel methodology for the integration of quality management into enterprise modelling and for quality certification of the virtual enterprise. This is especially important because quality certification is becoming mandatory in nearly all markets and the well-established certification methods do not cover all the aspects of the virtual enterprise. ISO 9001:2000, the most widely used quality management system standard in the world, is presented as an interesting starting point for virtual enterprise quality management system implementation and certification. Further requirements include broadening the scope of the quality management system to include the whole enterprise life cycle, i.e. from its creation to decommission. Current auditing procedures will have to be adapted to this new business environment and, to meet such a requirement, a continuous real-time third-party auditing mechanism—fully integrated into the virtual enterprise—model is proposed. A pilot/simulator, implemented in a small virtual enterprise, in the occupational safety and health-care business, is used to illustrate the new environment as well as the novel requirements that quality systems will have to meet in the future.