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MANAGING QUALITY LYIT, Certificate in Business & Enterprise 4th October 2007 Process Approach Process Approach Business is about…… Identifying customer needs Translating these into products/services Supplying the products/services to customers to achieve customer satisfaction at a profit Managing the product/service provision efficiently by Measuring the performance (both internally and with customers) Analysing the results Driving continuous improvement Process Approach Quality Control Loop Measure Record Improve Analyse ISO 9001:2000 – Key Elements • Management Responsibility – – – – Management commitment Customer focus Quality policy Planning and review • Resource Management – People – Infrastructure – Environment ISO 9001:2000 – Key Elements • Operations – – – – – Planning Customer processes Design Purchasing Production / Service processes • Measurement, Analysis & Improvement – Measurement for: • Customer satisfaction • Internal audit • Monitoring & measurement of productivity and processes ISO 9001:2000 – Key Elements • Control of Non-conformance – On customer satisfaction, product and processes, conformity & trends, suppliers • Improvement – Continual improvement – Corrective & preventive action ISO Procedures Only 6 mandatory documented procedures: – Control of documents – Control of records – Internal quality audit – Control of non-conformance – Corrective action – Preventive action ISO Key Issues • Simplicity • Relevance • Practicality • Implementation • Focus on improvement • Address the entire business – not just production EFQM Model EFQM Excellence Model The EFQM Model can be used: • • • • As a tool for Self Assessment As a way to Benchmark with other organisations As a guide to identify areas for Improvement As the basis for a common Vocabulary and a way of thinking • As a Structure for the organisation’s management system EFQM Model Criteria • • • • • • • • • Leadership Policy and Strategy People Partnerships and Resources Processes Customer Results People Results Society Results Key Performance Results Foundation Mark Model PEOPLE LEADERSHIP & PLANNING OPERATIONS & PROCESSES RESULTS RESOURCES PRACTICES RESULTS Core Values • Customer needs clearly understood • Consistency in product and service • Plans in place for the Business • Employee development and involvement • Continuous improvement • Measuring techniques in place for Key Performance Indicators (KPI’s) Benefits for the Company • All encompassing approach • Increases competitive advantage • Links management activities with results achieved • Introduces concepts of Best Practice Ideal Candidate Profile • Vibrant, well led organisation • Capacity to grow, develop, improve • Commitment to excellence and to best practice Criteria Element 1: Leadership & Planning a) Management style supports and promotes quality and ongoing improvement a) Managers demonstrate importance of customer a) Management plan for future of the business Criteria Element 2: People Management a) Roles and responsibilities are clearly defined a) Applicable legislation is identified and complied with a) People are trained and developed to support the planned activities of the business a) Effective 2-way internal communications is managed Criteria Element 3: Management of Resources a) Financial resources are effectively managed b) Suppliers are effectively managed c) Environment – relevant issues are identified and addressed d) Buildings, plant and equipment are well utilised and managed e) Information is managed and used effectively f) Management remains in touch with new and emerging developments and technologies Criteria Element 4: Operations & Process Management a) Customer needs are defined b) Operational activities are planned c) Processes are managed to ensure consistency and to meet customer requirements d) Key Performance Indicators (KPIs) are used e) Customer feedback is captured and acted upon Criteria Element 5: Results a) Customer satisfaction – indicators and results b) Business results – indicators and results of performance c) People satisfaction – indicators of the level of people satisfaction The Balanced Scorecard How do you measure business success ? Traditional Financial Model Financial measurement and financial reporting to Monitor and manage the progress of a business – Is this adequate ? – If not, then why not ? – What might be better ? Balanced Scorecard Hierarchy of Business Goals Main Business Goal How Financial Satisfied Customers Financial Performance (ROCE) Customer Performance On-time Delivery Where and how to get there What and how do we supply the products and services Process Quality (process cycle time) Employee Skills Internal Business Performance Learning & Growth Performance Financial Scorecard To succeed financially how should we appear to our shareholders ? Objectives Measures Sales % growth p.a Profit Gross % Nett % Revenue Growth € % Product Cost Reduction Profit by Product or Service Targets Initiatives Customer Scorecard To achieve our vision how should we appear to our customers ? Objectives Measures Targets Initiatives Rapid Response Order lead time 5 days One piece flow Reliable Quality Compliant rate Return rate Zero Process improvement Product re-design New Product Availability Time to market 3 months Internal Business Process Scorecard What business process must we excel at to satisfy our customers (and shareholders) ? Objectives Measures Productivity Quotation response time Units output/week Quality Re-work rate Scrap level Innovation Unique offerings Client value % sales from new products Time to market for new products Targets Initiatives Learning and Growth Scorecard Objectives Measures Upgrade competencies to meet future needs Training & development plan Targets ITN completed Training plan completed Personal development plan People satisfaction Productivity Initiatives Sales per employee