Proposal for Expanding the ERA’s Financial Benchmarking System and Implementing Performance Agreements

Rapid development in the private sector has placed substantial strains on the operational capabilities of Mongolian enterprises, leading to inefficient control of business processes, products, and services. Poor Quality Management is a prime reason for these inefficiencies, often linked to poorly trained managers who fail to identify problems that do not meet customer requirements. The interaction between private sector businesses, government agencies, trade associations, colleges, and universities lacks cohesion and direction, with the public sector determining what private sector training components should be delivered. This has led to a lack of programs covering Quality Management in the academic and vocational training chain, from school to work, VET colleges, and universities. In the food sector, there are currently only two companies certified to ISO 22000 food "risk" management system, yet food poisoning cases are causing schools, kindergartens, and businesses to be regularly closed due to food contamination. The BPI QA pilot training program aims to offer trainees foundation training in Quality and Food Safety Management, with progression levels that include internationally accredited training and certification standards for Quality Assurance (ISO) and Food Safety. The program will deliver Quality and Food Safety training in Ulaanbaatar, based on best practices that will provide both trainees and commercial organizations with training to understand and deliver products or services that meet customer requirements. Training levels will include Foundation - Food Safety Hygiene - Total Quality Management, Intermediate - HACCP Food Safety System - QMS Internal Auditing, and Advanced - ISO 9001 Quality / 22000 Food Safety Lead Auditor training. From January 2012, the BPI proposed pilot training program will endeavor to train over 200 people in Quality and Food Safety subjects, with examination and certification governed by international assessment bodies (American Society of Quality, Chartered Institute of Environmental Health). The pilot training costs will be funded by BPI, but consideration is being given to trainee contributions up to 50%. For Mongolian industry to become more efficient and effective, it will be essential for companies to increase training that will raise standards of quality management, to achieve improved quality of products and services. Discussions are already underway with a number of interested private sector parties, trade associations, and educational bodies to establish a private sector-governed Quality Management Center of Excellence (QMCE). A draft plan has been developed for the establishment of the QMCE and is included as an annex to the BPI QA pilot training program report.