This presentation presents key findings from LNS Research's yearlong benchmark study of over 500 global quality executives. It details how market leaders are leveraging EQMS software, and makes recommendations for executives looking to learn more or invest in this space.
3. Agenda
•About LNS Research
•Why Quality Matters
•Benchmark Data
•Strategic Objectives
•Our Biggest Challenges
•Building a Model of Operational Excellence
•EQMS Best Practices
•Recommendations for Success
#GlobalEQMS
4. Understanding LNS
LNS is research and advisory firm that helps
clients innovate and achieve operational
excellence.
We deliver the market intelligence and
thought leadership needed to capture the
value of technology through:
Experienced analysts
Primary research
Deep industry contacts
Interactive data visualizations
#GlobalEQMS
5. Global Quality Advisory Council
Starbucks - VP of Global Quality and Regulatory Affairs
Onyx Pharmaceutical - VP of Global Quality
Whirlpool - Director of Quality
Lindt Chocolate – VP R&D and Quality
Oriflame - Corporate Quality Lead
Champion Technology - VP Quality and EH&S
Gurwitch Products - VP Research and Quality
Newell Rubbermaid - Director of Quality
Hygia Health Service - VP of Operations
Discount Tire - VP of Quality
Daikin McQuay - Director, Corporate Quality
Bio-Rad Laboratories – Director of Quality Assurance
Owens-Illinios – VP of Global Quality
Harley Davidson – Director Corporate Quality
Alcoa – Director Corporate Quality
#GlobalEQMS
9. The Changing Customer and Speed of News
Changing preferences regarding where news is
received, where research is conducted, and how
opinions are formed
LA Times, Boston Globe:
For Sale
Google Reader:
Shuts Down
Facebook and LinkedIn:
News Feeds Transformed
#GlobalEQMS
10. The Changing Customer
Social Proof is the New Paradigm
•People are starting the buying process online
•Everything is ranked, rated, and reviewed
•Buyers are interested in what others are interested in
•They trust other people in their network
•Good and poor quality are hard to hide
Breaking News: Company X Recalls
1,000,000 Cars in U.S.
4/4/13
Boston, MA – After several incidents, Company X has
decided to recall model 302z from its 2010 fleet. Owners
are asked to return their automobiles to dealers for faulty
#GlobalEQMS
11. Global Scale for Products and Operations
275 subsidiary companies, in 60
countries with 146 manufacturing sites
250+ brands, 26 Billion Dollar brands,
100+ manufacturing sites, consumers in
180 countries
50+ manufacturing sites in 25+ countries
with almost 10,000,000 units sold across
70 models
#GlobalEQMS
12. Top 5 Financial Objectives
•Growing revenue is top for the majority of all companies
#GlobalEQMS
13. Top 5 Operational Objectives
•Improving manufacturing efficiency is top but not well
aligned to financial goals
#GlobalEQMS
14. Top 5 Quality Management Objectives
•Quality goals are synched with operations but not
necessarily financial goals
#GlobalEQMS
15. Top 5 Quality Challenges
•The top challenges are around Culture, metrics, and
systems - all important elements of Operational Excellence
#GlobalEQMS
17. Why Enterprise Quality Management Software
•Disparate systems and business process
•Lack of visibility into performance, compliance, and
risk
•Nearly impossible to collaborate across
departments, trading partners, or the supply chain.
•Quality and non-conformance data, as well as best
practices, are not shared across the organization
•Connecting Risk and Compliance as part of a
quality platform
#GlobalEQMS
18. Current System Landscape
•ERP – Financial data, inventory data, production routings,
recipe management
•BI – Reporting, Analytics, Visibility
•CRM – Customer complaints, trade promotions
•PLM – Labeling management, packaging management,
quality specifications, sampling plans
•LIMS – Measurements and testing of Fats, solids, bacteria
counts, etc.
•MOM – In line and at line testing, statistical process control,
manufacturing non-conformances
•SCM – Supplier risk scorecards, delivery scheduling,
inspection
•EHS – Carbon management, energy management,
reporting
#GlobalEQMS
23. Adoption of EQMS of Functionality
•Because, Life Sciences companies view
functionality as disparate systems: Doc Control,
CAPA, Compliance, Risk and more
#GlobalEQMS
24. Interconnecting Quality Processes
Identification Investigation Escalation Correction Prevention Efficacy
Assess Quantify Prioritize Mitigate
Establish Criteria Assessment Reporting Communication Follow up
Design Monitor Control
CAPA
Process
Risk
Management
Audit
Management
Good
Manufacturing
Practices
#GlobalEQMS
26. Understanding a Box Plot
Box plots help to easily
visualize the distribution
of benchmark survey data
#GlobalEQMS
27. PROCESS
HEALTH
Use of FMEA
and ECO
Supplier
Audits
Product
Compliance
CAPA
Closure
Customer
Complaints
Leading and Lagging KPIs
PROCESS
RESULTS
Engineering
Change
Orders
Supplier
Defect Rate
OEE
On Time
Shipments
Successful
NPI
#GlobalEQMS
33. Overall Equipment Effectiveness (OEE)
•Measures availability, efficiency, and quality (differs
by company)
•Must be put in context of supply chain
#GlobalEQMS
42. Successful New Product Introductions (NPI)
•Measures the number of new products introduced
hitting time, volume, and quality targets
#GlobalEQMS
43. Improving New Product Introductions (NPI)
•Establishing a formal risk management framework
improves median successful NPIs by >32%
#GlobalEQMS
44. Improving New Product Introductions (NPI)
•The ability to identify risk factors across operations
improves median successful NPIs by >24%
#GlobalEQMS
45. Improving New Product Introductions (NPI)
•Including suppliers in design for quality initiatives
improves median successful NPIs by >9%
#GlobalEQMS
46. Improving New Product Introductions (NPI)
•Establishing real-time visibility of quality metrics in
manufacturing improves median successful NPIs by >16%
#GlobalEQMS
47. Percentage of Products in Compliance
•Measures effectiveness of internal education
programs/SOPs
#GlobalEQMS
48. Improving Products in Compliance
•Easily understood compliance processes
improves median Products in Compliance by >5%
#GlobalEQMS
49. Improving Products in Compliance
•Establishing closed-loop processes to connect
improves median Products in Compliance by >3%
#GlobalEQMS
50. Improving Products in Compliance
•Establishing a formal NC/CAPA process improves
median Products in Compliance by >3%
#GlobalEQMS
51. Improving Products in Compliance
•Establishing a formal audit management process
improves median Products in Compliance by >3%
#GlobalEQMS
52. Recommendations for Success
•Define the role of quality in your
company’s strategic objectives.
•Identify the relationships between
leading and lagging KPIs across
the value chain
•Benchmark performance in KPIs
and track progress
•Create closed-loop quality
management process with EQMS
•Integrate quality business
processes, like: CAPA, Audit
Management, Risk Management,
and more
#GlobalEQMS
53. Thank You!!
For More Information -
Contact:
Matthew Littlefield
President and Principal Analyst
matthew.littlefield@lnsresearch.com