Transcript Customers

Product and Process Measures
Drive Continuous Product Quality and
Business Improvement
QSG
Quality Support Group, Inc.
Angelo G. Scangas, President
Quality Support Group, Inc.
978-430-7611
www.qualitysupportgroup.com
What is on your mind?
Do you have any questions?
What have you tried?
• Worked or not? Why?
Your feedback and engagement
QSG
Quality Support Group, Inc.
Continuous Improvement Vision / Definition
Continuous Improvement is the relentless effort of top
management to seek out and eliminate waste at all levels of
the organization. This is achieved through a sustained, results
oriented process to instill this culture changing mindset into
all levels of the organization through leadership, tools and
training.
QSG
Quality Support Group, Inc.
Continuous Improvement Vision /
Definition
Align your QMS with the
achievement of organizational
and business success.
QSG
Quality Support Group, Inc.
Cost Of Poor Quality
Revenues
- (Cost of Operations)
- (Cost of Poor Quality)
- (Cost Recovery)
Profits
COQ = IF + AP + PC + EF
TMC
Cost of Quality - Definition
Internal Failure (IF)
• Scrap
• Rework
• Supplier Scrap/Rework
Appraisal (AP)
• Audits
• Equipment Maintenance
• Inspection
• Testing
External Failure (EF)
Prevention (PC)
• Customer Cost
• Quality Planning
• Warranty Cost
• Training
• Returned Material
• Process Control
• Customer Service/Complaints
• Process Planning
COQ
= Cost of Quality
IF
= Internal Failure
AP
= Appraisal
PC
= Prevention Cost
EF
= External Failure
TMC
= Total Mfg. Cost
We have
only hit the
tip of the
iceberg,
ECNs
Inspection
Rework
Morale
Premium
Freight
Excess
Inventory
Floor Space
Warranty
Lost clients
There is much
more to capture !!
Business Excellence Model
QSG
Quality Support Group, Inc.
IMPACT ON
SOCIETY
Customer &
Market Focus
People
Management
Resource & Info
Management
ENABLERS
PROCESSES
LEADERSHIP
Policy &
Strategy
CUSTOMER
SATISFACTION
PEOPLE
SATISFACTION
SUPPLIER &
PARTNERSHIP
PERFORMANCE
RESULTS
ORGANIZATIONAL
RESULTS
Business Excellence Model
The ISO Model
Continual Improvement of the Quality
Management System
Management
Responsibility
Measurement,
Analysis,
Improvement
Resource
Management
Inputs
Product
Realization
Outputs
Product
The new ISO 9001:2008 requirements demand that a
company:



understand its operations as a series of linked,
interactive processes
manage each process by allocating resources,
defining methods and criteria for monitoring and
improvement
taking action when a process fails to meet
expectations.
QSG
Quality Support Group, Inc.
Effectiveness
Extent to which planned activities are
realized and planned results achieved.
ISO 9000:2000 3.2.14
Improvement and Effectiveness
Top Management shall ensure that the quality policy
includes a commitment to comply with requirements
and continually improve the effectiveness of the
quality management system.
ISO 9001: 2008 5.3
The organization shall continually improve the
effectiveness of the quality management system through
the use of the quality policy, quality objectives, audit
results, analysis of data, corrective and preventive
actions and management review.
ISO 9001: 2008 8.5
C u s to m e r- or ie nte d
P r o ce sses
M a n a ge m en t
Process Flow Chart
Continual Improvement
Management
Review
Customer
(Design Feasibility)
Review
Property
Audit
Preventive Actions
Inquiry & Quote
Customer
Internal
Corrective Actions
Yes
Assembly,
Design
Purchasing
Inspection,
and Test
No
NDA?
S u pp o r t
Supplies
Development
Calibration
Training
Document
Quality
Control
Records
Ship to
Customer
PROCESS MAP FOR PRODUCTION
Inputs/Materials
Measures
(With what?)
(Trend Charts)
Demand
Parts
Equipment
Computers
Facility
Defect Per Million
Productivity
OTD to Customers
Outputs
Products
Transactions
Production Process
(Major Elements & Boundaries)
Suppliers
*Start- 1. Production schedule
2. Verify Work Instructions
3. Perform machine set-up(s)
4. Material Prep
5. Build and verify first piece
6. Build lot
7. Final product audit
*End- 8. Transact to Non-netable
(By whom?)
Cell Administrator
Cell Leader
M. Q. Engineer
Material Handler
Asemblers
Set-Up Technician
Customers
(For whom?)
Shipping
Customer Service
External Customers
Limbo
Methods
(How?)
Work Instructions
Training
Non-conforming Material
Preventive Maintenance
Calibration
Documentation Control
Records (test results)
Process Owners: Cell
Administrators
Skills/Training &
Competency
(Of whom?)
Qualifications (Job Descriptions)
PFP for Salaried
Skills matrix for direct labor
Ergonomic/Safety
Policies and Procedures
Prepared By:
Approved By:
Approved by ISO Authority:
M. Cushing
N. Royce
M. Cushing
Date:
10/4/2004
1/18/2005
1/18/2005
Effectivity Date:
12/15/2004
Date:
Date:
Disposition:
Document Number:
M7.1.Production
4 Panel Report - Example
Percentage of Paid Shipments with Exception
Pane 1 – Where are we?
Pane 2 – Why are we here?
6.00%
$350,000.00
5.00%
$300,000.00
4.00%
$250,000.00
3.00%
$200,000.00
2.00%
$150,000.00
1.00%
$100,000.00
0.00%
$50,000.00
$0.00
1
2
3
4
5
6
7
8
Month
Pane 3 – How did we get here?
Pane 4 – What do we do now?
Run Chart Data Exceptions by Month
Action Plan
Month
September FY05
October FY05
November FY05
December FY05
January FY05
February FY05
March FY05
April FY06
May FY06
June FY06
July FY06
Aug FY06
Paid shipments
886
1139
1103
1346
993
856
1056
923
877
891
779
923
# Exceptions
43
32
45
48
38
36
44
33
13
14
9
7
Exceptions
Goal
4.85%
2.81%
4.08%
3.57%
3.83%
4.21%
4.17%
3.58%
1.48%
1.57%
1.16%
0.76%
2.50%
2.50%
2.50%
2.50%
2.50%
2.50%
2.50%
2.50%
2.50%
2.50%
2.50%
2.50%
Action
Resp
Date
Comment
9
The QSG Model
In the following example, an organization has identified
several quality objectives and has collected data on the
results of these objectives. Using a gap analysis technique,
the results are compared to the objectives and the degree of
effectiveness of the QMS is established for a given time
period.
Analysis of Data
Organizational
Objectives
Customer
requirements
Statutory &
regulatory
requirements
Defect rate and
customer returns
QMS controls
Purchasing
Organizational
Results
Customer
satisfaction
Statutory & regulatory
compliance
Examples of
results recorded
by the
Organization
Quality system
metrics
Inspection and test
Supplier
performance
Effectiveness of the QMS
100
100
Organizational
Objectives
Organizational
Results
0
0
The gap measures the lack of
effectiveness of the quality
management system.
Things are looking
good!
The narrower the gap, the more
effective the QMS.
Effectiveness of the QMS
100
100
Organizational
Objectives
Organizational
Results
0
0
The gap measures the lack of
effectiveness of the quality
management system.
Management should get a wake
up warning!
Effectiveness of the QMS
100
100
Organizational
Objectives
Organizational
Results
0
0
The gap measures the lack of
effectiveness of the quality
management system.
The Organization is in trouble!
Improvement in the QMS
Organizational
Objectives
Organizational
Results
Improvement in the
QMS
% 100
0
75
50
25
Improvement in the QMS
Organizational
Objectives
Organizational
Results
Improvement
Initiatives
Customer Focus
These actions may
cause the organization
to revise its objectives.
Corrective
Action
Procurement
What actions are taken
when gaps are
identified?
In this example, the
organization identified
three key areas for
improvement.
Management Review
100
100
Organizational
Objectives
Organizational
Results
0
0
Improvement
Initiatives
Customer Focus
Management
Review
Which may cause the
organization to again
revise its objectives.
Corrective
Action
Procurement
The improvement
processes are also
evaluated during
management review
meetings and
appropriate action
taken.
Conclusion
The overall result of using the QSG model
is an enhanced pro-active approach to
meet QMS objectives and more
importantly their related corporate
business and/or financial objectives.
The effectiveness of the quality management
system in meeting both quality and/or business
objectives is likely to be the key attribute that
ensures the on-going support and resource
allocation to maintain the quality management
system within the corporate environment.
QSG
Quality Support Group, Inc.
THANK YOU!
Angelo G. Scangas
President
Quality Support Group, Inc.
978-430-7611
WWW.QUALITYSUPPORTGROUP.COM