Quality Management Principles


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Quality Management Principles

  1. 1. Agenda <ul><li>7:30 am, Breakfast </li></ul><ul><li>8:00 am, Introductions – Dave Chesebrough, President, AFEI </li></ul><ul><li>8:15 am, Information Quality and IQMnet – Jarl Magnusson, DNV, Chairman IQMnet </li></ul><ul><li>9:00 am, Government Perspective – Jerry Smith, DISA </li></ul><ul><li>9:30 am , Adjourn </li></ul>
  2. 2. What is Information Quality Management? Breakfast Seminar 2005-03-17
  3. 3. Quality Management Principles <ul><li>Baldrige National Quality Program (BNQP) by National Institute of Standards and Technology (NIST), to enhance competitiveness, quality and productiveness in US Organizations </li></ul><ul><li>ISO 9001 , The standard intended for quality management system assessment and registration is ISO 9001.  The standards apply uniformly to organizations of any size or description. </li></ul><ul><li>Kaizen , Japanese term that means continuous improvement, taken from words 'Kai' means continuous and 'zen' means improvement. The same Japanese words Kaizen that pronounce as 'Gai San' in Chinese mean: Gai= The action to correct. San= an act that benefit others </li></ul><ul><li>SQC, Statistical Quality Control , The first to apply the newly discovered statistical methods to the problem of quality control was Walter A. Shewhart of the Bell Telephone Laboratories. He issued a memorandum on May 16, 1924 that featured a sketch of a modern control chart. </li></ul><ul><li>TQM, Total Quality Management , TQM is a set of management practices throughout the organization, geared to ensure the organization consistently meets or exceeds customer requirements. TQM places strong focus on process measurement and controls as means of continuous improvement. </li></ul><ul><li>Six Sigma at many organizations simply means a measure of quality that strives for near perfection. Six Sigma is a disciplined, data-driven approach and methodology for eliminating defects (driving towards six standard deviations between the mean and the nearest specification limit) in any process -- from manufacturing to transactional and from product to service. </li></ul><ul><li>QFD , Since 1966, Quality Function Deployment (QFD) has been used world wide in nearly every industry and sector to: </li></ul><ul><ul><li>Prioritize spoken and unspoken customer wows, wants, and needs; </li></ul></ul><ul><ul><li>Translate these needs into actions and designs such as technical characteristics and specifications; and </li></ul></ul><ul><ul><li>Build and deliver a quality product or service by focusing various business functions toward achieving a common goal of customer satisfaction. </li></ul></ul>
  4. 4. Information Quality Problem Lost understanding Lost meaning Add Meaning?? Knowledge Information Data Information Add Understanding??
  5. 5. Information Quality <ul><li>Definition: Consistently meeting end user and internal knowledge workers’ expectations with respect to relevant information dimensions . </li></ul><ul><li>Goal: Manage decision making / necessary data, information and knowledge to increase a company’s competitiveness / to meet legal requirements. </li></ul><ul><ul><li>Decision making – capture to achieve of needed business information. </li></ul></ul><ul><ul><li>Data – re-interpretable collection of entity instances or records. </li></ul></ul><ul><ul><li>Information – data with value added associations and representations that provide the data meaning. </li></ul></ul><ul><ul><li>Knowledge – information with time, change and complex associations captured. </li></ul></ul>Source: Definition from Larry English and Arkidata
  6. 6. Information Quality Dimensions <ul><li>Source Dimensions </li></ul><ul><ul><li>Objective/Factual – represents reality, source is unbiased </li></ul></ul><ul><ul><li>Accuracy - correctly represents source </li></ul></ul><ul><ul><li>Consistency - uniform representation of source </li></ul></ul><ul><li>User Dimensions </li></ul><ul><ul><li>Completeness – sufficient breadth and depth for users </li></ul></ul><ul><ul><li>Timeliness – update frequency as required by users </li></ul></ul><ul><ul><li>Value added – beneficial, needed or provides advantage to users </li></ul></ul><ul><ul><li>Understandability – easily comprehended by users </li></ul></ul><ul><ul><li>Accessibility – available, easily and quickly retrievable for users </li></ul></ul><ul><ul><li>Semantics – information definitions are understood the same by users </li></ul></ul><ul><li>Maintainer Dimensions </li></ul><ul><ul><li>Concise – compactly represented for maintainer </li></ul></ul><ul><ul><li>Syntax – machine readable for maintainer </li></ul></ul><ul><ul><li>Version control – at single data instance and file level for maintainer </li></ul></ul><ul><ul><li>Portability – supports current and future technology, maintainer </li></ul></ul><ul><ul><li>Security – appropriately restricted by maintainer </li></ul></ul><ul><ul><li>Uniqueness – single data instance defined for maintainer </li></ul></ul><ul><ul><li>Interoperability - can support multiple applications inside the company </li></ul></ul>Source: MIT / AIMQ and DNV Data Quality Model
  7. 7. Poor Information Quality 1(5) <ul><li>The Data Warehousing Institute, (TDWI), in a recent report, estimates that data quality problems currently cost U.S. businesses a whopping $600 billion each year. </li></ul><ul><li>TDWI traced that price tag to things such as unnecessary mailings, postage, printing, and staff overhead. Lost customers, unsatisfactory client relationships and problems that multiply whenever corrupted files duplicate are all results of poor DQ. </li></ul><ul><li>The report estimates that at least 2% of customer files are corrupted each month by name changes, divorces and death. It recommends that companies hire and train DQ specialists, and say having a DQ program is crucial to surviving a competitive market. </li></ul>By Sara Cushman, 03 Jun 2002
  8. 8. Poor Information Quality 2(5) <ul><li>A Supply Chain Debacle </li></ul><ul><ul><li>This past February, a war of words erupted between shoe and apparel manufacturer Nike Inc. and i2 Technologies , the software developer that provided Nike with a new demand and supply inventory system. Nike cited order problems that led to expensive manufacturing problems during deployment of the new system. </li></ul></ul><ul><ul><li>For example, some shoe orders were placed twice, once each in the old and new systems, while the new system allowed other orders to fall through the cracks. This resulted in overproduction of some models and underproduction of others. Nike was even forced to make some shoes at the last minute and ship them via air to meet buyers' deadlines. </li></ul></ul><ul><ul><li>Ultimately Nike blames these system problems for a $80 million to $100 million cut in third- quarter sales that caused the company to miss earnings estimates by as much as 13 cents. The day that Nike announced this, its stock price dropped 25 percent in value from $49.17 to $38.80. On the other side, i2's senior management claimed that their software was not responsible for Nike's shortfalls. </li></ul></ul>
  9. 9. Poor Information Quality 3(5) <ul><li>“ C.I.A. Fires Officer Blamed in Bombing of Chinese Embassy” ( The New York Times, April 9, 2000, p. A1) Using out-dated information, the CIA selected the address of an armory for a bombing target. At the time of the bombing, however, the building housed the Chinese Embassy. Resulted in tragic loss of life and property. </li></ul><ul><li>The Mars Climate Orbiter problem, also in 1999 – attributed to a wrong assumption of data representing one unit of measure, whilst actually being stored as another ( miles vs. metres ) </li></ul><ul><li>‘ Group Asking U.S. for New Vigilance in Patient Safety’ ( The New York Times, November 30, 1999). The health industry has been rocked with the news that poor quality kills up to 98,000 people annually . Fortunately, not all these deaths are due to poor data, but many are. Poor prescriptions are a good example. </li></ul>
  10. 10. Poor Information Quality 4(5) <ul><li>“ Oh, Those Pesky Little Financial Details” by Gretchen Morgenson (Market Watch, The New York Times, January 31, 1999). Poor quality data led to corporate embarrassment and drops in stock prices as many companies were forced to restate corporate earnings. </li></ul><ul><li>Few examples specifically pointing to name and address problems (all in the US): </li></ul><ul><ul><li>In an estimate, more than 175,000 IRS and state tax refund checks were marked as ‘undeliverable’ by the postal department in a year </li></ul></ul><ul><ul><li>In an audit, it was estimated that 15-20% of voters on voter registration lists have either moved or are deceased when compared to data gathered from post office relocation data </li></ul></ul><ul><ul><li>An acquiring company learnt later that a deal was closed for new consumer business with only half of the customers in reality to that anticipated because of duplication of data </li></ul></ul><ul><ul><li>A fiber-optics company lost $500,000 after a mislabeled shipment caused the wrong cable to be laid at the bottom of a lake </li></ul></ul><ul><ul><li>The US government estimates that billions of dollars are lost annually due to poor data quality </li></ul></ul>
  11. 11. Poor Information Quality 5(5) <ul><li>“ Mail from INS stuns flight school” by Kevin Johnson ( USA Today, March 13, 2002), A result of mismanaged documents, a Florida flight school received notice from the Immigration and Naturalization Service of approval of student visas for two of the September 11th terrorists - six months to the day after the attack on America. </li></ul><ul><li>“ Right Answer, Wrong Score: Test Flaws Take Toll” By Diana B. Henriques and Jacques Steinberg (The New York Times, May 20, 2001). In recent years, educational testing companies have experienced serious breakdowns in data quality control. The company that scored tests in Minnesota gave 47,000 students lower scores than they deserved. Nearly 9,000 students in New York City were mistakenly assigned to summer school in 1999 because of an error by another big company </li></ul>
  12. 12. Six most common IQ problems <ul><li>Inconsistent data : Merging data from multiple systems can often lead to inconsistent data and values that represent conflicting information. </li></ul><ul><li>Lack of conformity : Information stored in a non-standard format such as a free text fields is often unusable. </li></ul><ul><li>Inaccurate data : Data that is incorrect or out of date is a very common problem. Another analyst company PWHC put the decay rate of customer data typically at around 30 percent per annum. </li></ul><ul><li>Incomplete data : Data can be missing or unusable. One IAT survey found that 19 per cent of Data Quality issues relate to missing data. </li></ul><ul><li>Duplication : Multiple instances of the same data is the single biggest inhibitor of effective customer management. </li></ul><ul><li>Lack of integrity : Missing important relationship linkages degrade the quality of data. </li></ul>
  13. 13. Inherent Information Quality Problems <ul><li>Organization and Processes </li></ul><ul><ul><li>Unclear responsibility and management of information, who’s in charge of information?? </li></ul></ul><ul><li>Data Quality </li></ul><ul><ul><li>Don’t understand data- and information resources, and their current status. We don’t understand when we have reached an acceptable Quality? </li></ul></ul><ul><ul><li>We need to understand and to measure objectivity, accuracy, timeliness, other information dimensions </li></ul></ul><ul><li>Information integration </li></ul><ul><ul><li>Bridge approach instead of information model approach </li></ul></ul><ul><ul><li>Design systems to capture data for one function, downstream areas like marketing are left out of requirements </li></ul></ul>
  14. 14. Many views on the information resource/s Real Time Data Flow Situation Adapted Decision Support <ul><li>Information </li></ul><ul><li>Visualization </li></ul><ul><li>Knowledge </li></ul><ul><li>Decisions </li></ul><ul><li>Actions </li></ul>Operation Centre Integrated (ISO 15926) Database 3D CAD View P&ID Diagram View Data Sheet View Simulation View ISO TC.. Integration Consolidation Harmonization Q-PROCESS DELIVERS QUALITY DATA & INFO Q-PROCESS DELIVERS QUALITY DATA & INFO Q-PROCESS DELIVERS QUALITY DATA & INFO
  15. 15. The Essentials of Information Quality Management Article published in DM Review Magazine By Larry English, Reference: http:// www.dmreview.com/article_sub.cfm?articleId =5690
  16. 19. What is Information Quality Management (IQM) Network? Background IQMnet structure Purpose Membership, activities, upcoming events
  17. 21. IQMnet structure HOSTED BY: INTERNATIONAL NETWORK Michael Gullberg Sam Mehta Dave Cheseborough Jarl S Magnusson (Chair) Start 27 Jan Start 03 Feb Start 17 March Start tbd Website Mailing list Discussions Seminars Workshops Travel FOUNDING STAKEHOLDERS: Signed up since January 1st 2005 Sweden, ca 40 members Norway, ca 10 members USA, tbd
  18. 22. IQMnet initial Purpose <ul><li>IQMnet stands for Information Quality Management-Network . </li></ul><ul><li>IQMnet is a knowledge network where skilled, dedicated and interested individuals and organizations can cooperate and collaborate. </li></ul><ul><li>IQMnet objectives are to build awareness, initiate, support, develop, promote, and share knowledge on technical solutions and management services for Information Quality Management. </li></ul>
  19. 23. About IQMnet <ul><li>IQMnet is a non-for-profit and voluntary based network, hosted by Association for Enterprise Integration (AFEI). </li></ul><ul><li>The founding stakeholders launching IQMnet are Office of the DoD Deputy CIO, SAIC, DISA, Det Norske Veritas (DNV), Enterra Solutions, NDIA, AFEI and the Scandinavian Information Resource Network (SIRNET). </li></ul><ul><li>IQMnet is a controlled network through </li></ul><ul><ul><li>an active Board </li></ul></ul><ul><ul><li>a Website </li></ul></ul><ul><ul><li>a controlled mailing list </li></ul></ul><ul><ul><li>discussion lists. </li></ul></ul>
  20. 24. Membership <ul><li>One becomes a member in IQMnet by signing up name, affiliation, cell phone and email address on the mailing list . </li></ul><ul><li>There is no cost associated with an IQMnet membership and the mailing list is strictly confidential. </li></ul><ul><li>People join IQMnet because they have an interest in: </li></ul><ul><ul><li>Exploring and increasing awareness on Data- and Information Quality Management issues </li></ul></ul><ul><ul><li>Sharing experiences on poor (or good) information quality and the consequences it has on products, services and enterprise abilities </li></ul></ul><ul><ul><li>Developing new technical IQM solutions and management services, as a set of tools for improving the quality in data and information resources </li></ul></ul><ul><ul><li>Participating in a knowledge network, where members share the same focus and interest </li></ul></ul><ul><ul><li>Setting up channels of communication to share news, ideas, results, solutions, experiences, knowledge, customers, contractors and vendors </li></ul></ul><ul><ul><li>Finding the guiding principles and best practices for Information Quality Management </li></ul></ul><ul><ul><li>Finding new ways to infuse more reliance, trust and confidence into the organization, information systems and employees </li></ul></ul><ul><ul><li>Making information quality a competitive issue </li></ul></ul><ul><ul><li>Using IQM as one method to put an economical value on data- and information resources </li></ul></ul><ul><ul><li>Using IQM to increase the exploitation and usage of data- and information assets. </li></ul></ul><ul><ul><li>IQMnet Activities </li></ul></ul>
  21. 25. Activities 1(2) <ul><li>All activities are performed by members and for members . An activity can basically be whatever an IQMnet members desires to do. </li></ul><ul><li>Activity must be ethical, honest, trusted and basically free-of-charge (only direct activity expenses can be charged). </li></ul><ul><li>Activity must relate directly or indirectly to IQM , and it must have a general interest to develop IQM as a discipline. Just promoting a certain product, service or company is not acceptable. </li></ul><ul><li>Activity must be noted on the IQMnet Website, planned by the Board and sent out to all members over the IQMnet mailing list. </li></ul><ul><li>Members who arrange a seminar are solely responsible for the outcome. The Board will seek interested members who are willing to initiate and arrange activities to infuse new interest and increase the awareness of IQM-issues. </li></ul>
  22. 26. Activities 2(2) <ul><li>Short seminars , no more than 2-3 hours, to inform members, to discuss a certain topic, to show/demo of a product or service, to present news, results, solutions or just to spark new interest. All these short seminars are free-of-charge for IQMnet members . Coffee, tea and sandwich/fruit should be served. </li></ul><ul><li>Long seminars , can be one-two day events. Program can vary, to cover a technical solution, a certain business area or other defined topics. A long seminar could be on a direct cost-cover basis for members so costs for facilities, luncheon and coffee can be recovered. </li></ul><ul><li>Discussions , will be done by members through discussion lists and via direct mail contacts. </li></ul><ul><li>Invited seminars , a number of organizations would certainly invite skilled IQMnet members to their seminars and conferences. IQMnet members should be offered some sort of benefit (rebate, etc). </li></ul><ul><li>Work Shops and Development Groups , where dedicated members join together to develop standards, rules, regulations, products, services or to help Government or Industry customers with analysis, advice, findings, submitting comments and recommendations on investigations, research and legislation. </li></ul><ul><li>Annual IQM Event , the Board will arrange an annual event, where the IQM Innovation Award will be presented. </li></ul>
  23. 27. Upcoming Events <ul><li>March 17 th , IQMnet start up in Washington DC, USA </li></ul><ul><li>April 13 th , Information Quality in large complex systems by Professor Bud Lawson, Stockholm Sweden </li></ul><ul><li>May, Information Quality for the Swedish Government Social Insurance Office, Stockholm, Sweden </li></ul><ul><li>Tbd, Information Quality at Statoil, Oslo, Norway </li></ul><ul><li>Tbd, Information Quality Swedish and Norwegian Defense </li></ul><ul><li>October, IQMnet Annual meeting </li></ul>