Enterprise Excellence: The Future of Quality


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Presentation on Enterprise Excellence and Sustainability, management systems evolving beyond "quality", "environment", "Health and Safety" and redefining these concepts in terms of Enterprise Excellence.

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Enterprise Excellence: The Future of Quality

  1. 1. The Future of Quality Reflections on Value, Quality Management, Excellence & Sustainability Presented to: Illiana Chapter, ASQ By: David K. Watkins Omnex, Inc.
  2. 2. Omnex Worldwide Omnex World Headquarters Copyright 2008 Omnex. All Rights Reserved.
  3. 3. Quality & Value <ul><li>The Customer Defines Value </li></ul><ul><li>Quality May be Defined as How Well an Enterprise Satisfies the Performance Elements in the Value Equation </li></ul>Copyright 2008 Omnex. All Rights Reserved. Performance Cost Value =
  4. 4. From Whence Came We <ul><li>A brief, overly-simplistic History of Quality: </li></ul><ul><ul><li>Containment: Conformance to specifications, achieved primarily by inspection & test. </li></ul></ul><ul><ul><li>Process Control: Conformance to specification by control of key process parameters & error proofing </li></ul></ul><ul><ul><li>Process Design and Improvement: “maximizing the quality of the process itself and the goods it produces” * </li></ul></ul><ul><ul><li>Customer Satisfaction: Understanding and meeting customer requirements beyond conformance to specifications </li></ul></ul>*Lyth, “Quality Engineering—Then and Now”, Quality Engineering Vol. 17. Copyright 2008 Omnex. All Rights Reserved.
  5. 5. Whither To? Evolution? <ul><li>Continual Improvement: </li></ul><ul><ul><li>“ Defensive Quality”* — Approaches to Eliminate What Customers Don’t Like </li></ul></ul><ul><li>Value Generation: </li></ul><ul><ul><li>“ Offensive Quality”*— A pproaches to Creating What Customers Do Like </li></ul></ul><ul><li>Enterprise Excellence: </li></ul><ul><ul><li>Meeting the Value Expectations of Customers, Investors, Employees and Their Families, Communities, Legal and Regulatory Entities </li></ul></ul>Copyright 2008 Omnex. All Rights Reserved. *Sower & Fair: “There Is More to Quality Than Continuous Improvement: Listening to Plato.” QM Journal, Vol. 12, No. 1
  6. 6. Excellence & Sustainability <ul><li>Sustainability : the ability of the enterprise to survive and prosper in a rapidly evolving environment of complex systems : </li></ul><ul><ul><li>Markets : customers & competitors in various regions and cultures </li></ul></ul><ul><ul><li>Investment : investors, markets, lenders and channels </li></ul></ul><ul><ul><li>HR : employees, other employers, communities </li></ul></ul><ul><ul><li>Vendors : suppliers of goods and services and the competitive environments in which they operate </li></ul></ul><ul><ul><li>Government, Regulatory and Political Systems </li></ul></ul>Copyright 2008 Omnex. All Rights Reserved. Ref: ISO/CD 9004; 2007-02-8
  7. 7. <ul><li>Essence of Sustainability is Performance: </li></ul><ul><ul><li>Value and satisfaction provided to customers </li></ul></ul><ul><ul><li>Return provided to Investors </li></ul></ul><ul><ul><li>Enhancement of wealth, welfare and well-being of employees and society </li></ul></ul>Value & Sustainability Copyright 2008 Omnex. All Rights Reserved. Any Expenditure of resources that does not generate value produces a net loss and impaired sustainability.
  8. 8. Standards Based BMS <ul><li>Business Management System achieves Knowledge Management , extended to the entire enterprise, incorporating: </li></ul><ul><ul><li>Operating System (BOS) aligned with all values —the “nervous system and brain” of the BMS </li></ul></ul><ul><ul><li>Process Architecture: defines and manages all business process outputs to values* and acceptance criteria </li></ul></ul><ul><ul><li>Employs Quantitative Analysis, Process Control and Continual Improvement </li></ul></ul><ul><ul><li>The Discipline of Problem Solving </li></ul></ul>Copyright 2008 Omnex. All Rights Reserved. *e.g., Quality, cost, timeliness, health/safety, environment, societal impact, etc.
  9. 9. BMS & Knowledge Management <ul><li>System for Achieving and Sustaining a “Shared Level of Understanding”* throughout the Organization, Its Functions, Processes & Activities: </li></ul><ul><ul><li>Aligned with external values </li></ul></ul><ul><ul><li>Relationship between Performance Results and activities, processes and business decisions </li></ul></ul><ul><ul><li>Enables “self-regulation” and “self-improvement” of activities and processes— Ownership </li></ul></ul><ul><ul><li>Provides for effective decision making, problem solving and learning at all levels of the organization </li></ul></ul>Copyright 2008 Omnex. All Rights Reserved. *What’s important about Rayon???
  10. 10. Enterprise Excellence “ In Concert” (A Slight Digression)
  11. 11. Enterprise Performance as a Concert <ul><li>Customer Values the Deliverables </li></ul><ul><ul><li>Not the plan! </li></ul></ul><ul><ul><li>Not the tasks! </li></ul></ul><ul><ul><li>Not the effort! </li></ul></ul><ul><ul><li>Not the Certificate! </li></ul></ul>Copyright 2008 Omnex. All Rights Reserved. The Results!
  12. 12. BMS: The Sheet Music <ul><li>Clearly Defined Deliverables which, at any given moment, can be very different… </li></ul><ul><ul><li>Provides requirements to each musician to ensure deliverables at the instant required. </li></ul></ul><ul><ul><li>Processes for delivery well defined. </li></ul></ul>Copyright 2008 Omnex. All Rights Reserved. “ Why are you playing the adagio, while the rest of us are 22 bars into the allegro???”
  13. 13. Human Resources: The Players <ul><li>Can play (have essential competencies) </li></ul><ul><li>Are available at the moments they must deliver </li></ul>Copyright 2008 Omnex. All Rights Reserved. “ Nope—can’t have the first violinist today. I need him to complete a report for the String Section.”
  14. 14. Infrastructure: Instruments <ul><li>Essential tools and technologies provided </li></ul><ul><li>Tuned and calibrated </li></ul>Copyright 2008 Omnex. All Rights Reserved. “ I can’t give you an oboe, you’ll just have to make due with the kazoo from the jug band.”
  15. 15. <ul><li>Plans the evening’s program and resource requirements </li></ul><ul><li>Rehearses the deliverables with the orchestra </li></ul><ul><li>Provides guidance, tempo and nuance </li></ul><ul><li>Manages deliverables, not tasks </li></ul>Leadership BOS: The Conductor Copyright 2008 Omnex. All Rights Reserved. Picture Leonard Bernstein running around to each musician, telling them what to play and when to play it, and calling meetings all the time to check that they’re doing it!
  16. 16. The Role of Quality: BOS <ul><li>Establish processes to capture, analyze, understand and communicate external requirements: </li></ul><ul><ul><li>Quantitative Analysis </li></ul></ul><ul><ul><li>Benchmarking </li></ul></ul><ul><ul><li>Failure Analysis </li></ul></ul><ul><ul><li>Building Knowledge Databases: </li></ul></ul><ul><ul><ul><li>Product Requirements & Capabilities </li></ul></ul></ul><ul><ul><ul><li>Process Requirements & Capabilities </li></ul></ul></ul><ul><ul><ul><li>System Requirements & Capabilities </li></ul></ul></ul>Copyright 2008 Omnex. All Rights Reserved. “ Knowledge Enables” – MacGyver.
  17. 17. The Role of Quality: BMS <ul><li>Develop and Deploy Process Knowledge </li></ul><ul><ul><li>Alignment with results and Strategic Impact </li></ul></ul><ul><ul><li>Deploy monitoring and measurement </li></ul></ul><ul><ul><li>Analysis and Improvement Methods </li></ul></ul><ul><li>Internal Auditing </li></ul><ul><ul><li>Process Effectiveness </li></ul></ul><ul><ul><li>Process Efficiency </li></ul></ul><ul><ul><li>Opportunities for Improvement </li></ul></ul><ul><ul><li>Provide critical information to Leadership </li></ul></ul><ul><ul><li>Provide knowledge to Process Owners </li></ul></ul><ul><ul><li>Expand Enterprise Knowledge Base </li></ul></ul>Copyright 2008 Omnex. All Rights Reserved.
  18. 18. <ul><li>Application of Quality Methods and Systems with an expanded scope, e.g.: </li></ul><ul><ul><li>Staffing and Competency Mgmt. vs. “Training” </li></ul></ul><ul><ul><li>Supply Chain Management & Improvement vs. “Supplier Assessment” or “Purchasing” </li></ul></ul><ul><ul><li>Sales & Business Development vs. “Contract Review” & “CSR’s” </li></ul></ul><ul><ul><li>Integrated Program Management vs. “Quality Planning” </li></ul></ul><ul><ul><li>New Product Development vs. “PPAP” & “PSW” </li></ul></ul>The Role of Quality: BMS Copyright 2008 Omnex. All Rights Reserved.
  19. 19. The Role of Quality: New Product Development <ul><li>Processes to capture, analyze and understand program/product-specific requirements (e.g. QFD) </li></ul><ul><li>Program Feasibility and Risk Assessment </li></ul><ul><li>Robust Design Linkages & DFMEA/DFM/DFA </li></ul><ul><li>Robust Process Design & Development </li></ul><ul><ul><li>PF, PFMEA, CP, MSA, WI, Error Proofing, V/V </li></ul></ul><ul><ul><li>Layered Process Audits & Continual Improvement </li></ul></ul><ul><li>Engineering Knowledge: </li></ul><ul><ul><li>FMEAs, Product & Process Data, SPC, MSA </li></ul></ul><ul><li>Technology Transfer—Local & Global </li></ul>Copyright 2008 Omnex. All Rights Reserved.
  20. 20. Quality & Quantitative Analysis <ul><li>Quantitative Analysis to: </li></ul><ul><ul><li>Understand External Requirements (e.g. QFD) </li></ul></ul><ul><ul><li>Measure Performance </li></ul></ul><ul><ul><li>Identify, Understand and Reduce Variation </li></ul></ul><ul><ul><li>Prevent Failures </li></ul></ul><ul><ul><li>Understand and Eliminate Waste </li></ul></ul><ul><ul><li>Continually Enhance Enterprise Knowledge </li></ul></ul>Copyright 2008 Omnex. All Rights Reserved. If you can’t define it, you can’t measure it; If you can’t measure it, you can’t understand it; If you can’t understand it, you can’t control it; If you can’t control it, you are at the mercy of chance.
  21. 21. The Quality Culture “The Discipline of Problem Solving” <ul><li>Problem Solving begins at the Top </li></ul><ul><li>Without Problem Solving there is no learning. </li></ul><ul><li>Failures will occur in all processes— not learning from them is the real failure. </li></ul><ul><li>“ Fix the problem, not the blame.” </li></ul><ul><li>Apply to all processes in the enterprise </li></ul><ul><li>Deploy problem solving process and skills throughout the enterprise </li></ul>Copyright 2008 Omnex. All Rights Reserved. “ No Problem!” is a Problem!
  22. 22. The Continual Improvement Process Copyright 2008 Omnex. All Rights Reserved. PDSA SDSA Process Step Description P 1 Form Team P 2 Describe the Problem 3 Implement and Verify Containment Actions P 4 Find and Verify Root Cause PD 5 Select Permanent Corrective Actions DS 6 Implement Permanent Corrective Actions A SDSA 7 Prevent System Problems SDSA 8 Congratulate the Team <ul><li>Apply Universally to All Failures: </li></ul><ul><ul><li>Quality </li></ul></ul><ul><ul><li>Environment </li></ul></ul><ul><ul><li>Health & Safety </li></ul></ul><ul><ul><li>Reliability & Efficiency </li></ul></ul><ul><ul><li>Accuracy & Integrity of Data </li></ul></ul><ul><ul><li>Productivity & Waste </li></ul></ul>
  23. 23. Final(?) Thoughts <ul><li>The QMS, EMS, OH&SM, etc., type systems lag behind evolving concepts of enterprise excellence </li></ul><ul><li>The quality function needs to focus on deliverables and their contribution to value </li></ul><ul><li>Quality—excellence—must characterize the enterprise as a whole, not just products </li></ul><ul><li>Knowledge enables & empowers , and is the prime resource of the enterprise. </li></ul>Copyright 2008 Omnex. All Rights Reserved.
  24. 24. Copyright 2008 Omnex. All Rights Reserved. [email_address] 734.761.4940 Any Questions? Thank You! Dave Watkins [email_address] 734.761.4940 Ext. 502