QOS.pdf

W:PRESENTJAN2000OFFICERSMEETING.PPT
11/9/01 5:22 PM
Welcome,
Welcome,
GLOBAL FACILITIES, MATERIALS &
GLOBAL FACILITIES, MATERIALS &
SERVICES PURCHASING (FM&SP)
SERVICES PURCHASING (FM&SP)
Q1
Q1-
-2002
2002

FM&SP Q1
FM&SP Q1-
-2002
2002
Dana Snelgrove
Dana Snelgrove
Transportation
Transportation
Purchasing
Purchasing
Quality Manager
Quality Manager

11/9/01 5:22 PM

11/9/01 5:22 PM
FM&SP Q1
FM&SP Q1-
-2002 AGENDA
2002 AGENDA
●
● Welcome
Welcome Dana Snelgrove (5)
Dana Snelgrove (5)
●
● Opening Comments
Opening Comments Dennis Connor (10)
Dennis Connor (10)
●
● FM&SP Q1
FM&SP Q1-
-2002
2002 Dana Snelgrove (45)
Dana Snelgrove (45)
●
● Stand Up Break
Stand Up Break 2 Minutes
2 Minutes
●
● Quality Operating System
Quality Operating System Dave Watkins
Dave Watkins (60)
(60)
●
● Break
Break 13 Minutes
13 Minutes
●
● QOS Approval/Q1 Petition
QOS Approval/Q1 Petition Dana Snelgrove (20)
Dana Snelgrove (20)
●
● Q1 Revocation
Q1 Revocation Dana Snelgrove (5)
Dana Snelgrove (5)
●
● Question & Answer
Question & Answer 20 Minutes
20 Minutes

FM&SP Q1
FM&SP Q1-
-2002
2002
Dennis Connor
Dennis Connor
Director
Director
Global Transportation
Purchasing
Purchasing

FM&SP Q1
FM&SP Q1-
-2002
2002
Paul Kaip
Paul Kaip
Manager
Manager
Purchasing
Purchasing

11/9/01 5:22 PM
“A good company delivers
“A good company delivers
excellent products and services,
excellent products and services,
a great one delivers excellent
a great one delivers excellent
products and services
products and services
and strives to make the world
and strives to make the world
a better place”
a better place”
Bill Ford
Bill Ford
CHAIRMAN & CEO
CHAIRMAN & CEO
Better Ideas
Better Ideas

11/9/01 5:22 PM
What does Q1 Mean?
What does Q1 Mean?
S
Supplier achieves excellence in four areas:
upplier achieves excellence in four areas:
●
● Capable Systems
Capable Systems
●
● Ongoing Performance
Ongoing Performance
●
● Satisfied Customers
Satisfied Customers
●
● Continuous Improvement
Continuous Improvement

11/9/01 5:22 PM
What are the benefits of Q1?
What are the benefits of Q1?
•
• Preferred Status with Ford
Preferred Status with Ford
•
• Improved Systems and Operations
Improved Systems and Operations
•
• Satisfied Customers
Satisfied Customers
•
• Publicity and Advertising Privileges
Publicity and Advertising Privileges
•
• World Excellence Award Eligibility
World Excellence Award Eligibility

11/9/01 5:22 PM
FM&SP Q1
FM&SP Q1-
-2002
2002
●
● What We Need From You:
What We Need From You:
●
● Pick Up On Time
Pick Up On Time
●
● Deliver On Time
Deliver On Time
●
● No Damage During Transit
No Damage During Transit
●
● Electronic Communication
Electronic Communication
●
● Cost Competitive with the Best
Cost Competitive with the Best
●
● Reduce Waste
Reduce Waste

11/9/01 5:22 PM
Global Purchasing’s Top Priorities
Global Purchasing’s Top Priorities
! e-Business/eVEREST - Revolutionize Global Purchasing's
core business through flawless execution of eVEREST
! Customer Satisfaction
" Q1
" Six-Sigma
! Leaders at All Levels
! Cost Management
! Corporate Citizenship

11/9/01 5:22 PM
What Do
What Do All
All Suppliers Need to
Suppliers Need to
Do?
Do?
Register:
Register:
●
● Ford Supplier Network (FSN)
Ford Supplier Network (FSN)
●
● Global Supplier Database on
Global Supplier Database on-
-line (GSDB)
line (GSDB)
●
● Electronic Funds Transfer (EFT)
Electronic Funds Transfer (EFT)
●
● eVEREST
eVEREST

11/9/01 5:22 PM
How can suppliers access the
How can suppliers access the
eLearning “Supplier Self
eLearning “Supplier Self-
-
Registration” module?
Registration” module?
●
● Go to fsn.ford.com and click on “Supplier Key
Go to fsn.ford.com and click on “Supplier Key
Information”
Information”
●
● Then click on “General Information”
Then click on “General Information”
●
● Then click “eVEREST Supplier Self
Then click “eVEREST Supplier Self
Registration Course”
Registration Course”

11/9/01 5:22 PM
Ford Motor Company’s goal is to
source to the best suppliers; your
personal challenge is to be the best

11/9/01 5:22 PM
FM&SP Q1
FM&SP Q1-
-2002
2002
●
● The original Q1 requirements will continue to be the
The original Q1 requirements will continue to be the
foundation of Q1
foundation of Q1-
-2002:
2002:
●
● ISO Certification
ISO Certification
●
● Quality Operating System (QOS)
Quality Operating System (QOS)
●
● Performance Metrics
Performance Metrics
●
● Customer Endorsement
Customer Endorsement

11/9/01 5:22 PM
FM&SP Q1
FM&SP Q1-
-2002
2002
What’s Changed …
●
● Only
Only targeted commodities will be affected
targeted commodities will be affected
by Q1 2002
by Q1 2002
●
● Your presence today demonstrates your
Your presence today demonstrates your
company is in a targeted commodity
company is in a targeted commodity
●
● Current Q1 Suppliers will need to meet the
Current Q1 Suppliers will need to meet the
revised requirements
revised requirements

11/9/01 5:22 PM
FM&SP Q1
FM&SP Q1-
-2002
2002
What’s Changed…
What’s Changed…
●
● ISO 9001:2000 requires a metric driven
ISO 9001:2000 requires a metric driven
business operating system that requires
business operating system that requires
continuous improvement
continuous improvement
●
● ISO
ISO-
-14001 environmental certification is
14001 environmental certification is
required
required

11/9/01 5:22 PM
ISO
ISO-
-9001:2000
9001:2000
Aligns with QOS
Aligns with QOS
●
● More specific management review
More specific management review
requirements (more management
requirements (more management
involvement)
involvement)
●
● Requirement to analyze and use data for
Requirement to analyze and use data for
improvement
improvement

11/9/01 5:22 PM
ISO
ISO-
-9001:2000 Certification
9001:2000 Certification
●
● “2000 version” drives continuous
“2000 version” drives continuous
improvement and customer satisfaction
improvement and customer satisfaction
●
● Aligned with service organizations
Aligned with service organizations
●
● Current ISO
Current ISO-
-9001:1994 registered
9001:1994 registered
suppliers must transition to the new
suppliers must transition to the new
standard
standard
●
● Suppliers currently not ISO registered
Suppliers currently not ISO registered
will register to the new 2000 standard
will register to the new 2000 standard

11/9/01 5:22 PM
ISO 14001
ISO 14001
●
● Environmental Standard
Environmental Standard
●
● Applies to any type of company
Applies to any type of company
●
● Mirrors the structure of ISO 9001:2000
Mirrors the structure of ISO 9001:2000
Tip: Most registration companies have, or are working
Tip: Most registration companies have, or are working
on combining ISO 9001 and 14001 audits
on combining ISO 9001 and 14001 audits

11/9/01 5:22 PM
ISO 14001 Certification
ISO 14001 Certification
Why Are We Doing this?
Why Are We Doing this?
●
● Benefits to the Environment
Benefits to the Environment
●
● Cost Savings
Cost Savings
●
● Improved Efficiencies
Improved Efficiencies
●
● Competitive Advantage
Competitive Advantage

11/9/01 5:22 PM
ISO
ISO-
-14001 Certification
14001 Certification
●
● ISO
ISO-
-14001 Environmental Certification is
14001 Environmental Certification is
required for all suppliers
required for all suppliers
●
● All
All suppliers must have
suppliers must have all
all of their sites certified by
of their sites certified by
2005
2005
●
● Some companies in the room today have or are
Some companies in the room today have or are
pursuing ISO
pursuing ISO-
-14001 Certification.
14001 Certification.
●
● Your ISO Registrar can provide certification details
Your ISO Registrar can provide certification details
●
● Additional information is available on fsn.ford.com
Additional information is available on fsn.ford.com

11/9/01 5:22 PM
How We Are Tracking
How We Are Tracking
ISO 9000 and ISO 14001 Certification
ISO 9000 and ISO 14001 Certification
●
●Certifications Checked by FM&S Purchasing
Certifications Checked by FM&S Purchasing
●
● Q1 Petition Requirement
Q1 Petition Requirement
●
● Supplier must input registration status into
Supplier must input registration status into
Global Supplier Data Base (GSDB) Online
Global Supplier Data Base (GSDB) Online
●
●GSDB Online Web information can be found on
GSDB Online Web information can be found on
the Ford Supplier Network (FSN) at:
the Ford Supplier Network (FSN) at:
●
● fsn.ford.com
fsn.ford.com

11/9/01 5:22 PM
ISO 9001
ISO 9001 –
– GSDB on
GSDB on-
-line Screen
line Screen

11/9/01 5:22 PM
FM&SP Q1
FM&SP Q1-
-2002
2002
●
● Quality Operating System (QOS)
●
● Purchasing expectation categories Identified
Purchasing expectation categories Identified
●
● Requirements clarified
Requirements clarified
●
● Customer Endorsement Process
Customer Endorsement Process
●
● Requirements clearly defined
Requirements clearly defined
●
● Probation has been eliminated
Probation has been eliminated
●
● Revocation process will continue
Revocation process will continue

11/9/01 5:22 PM
●
● QOS drives continuous improvement and
QOS drives continuous improvement and
management level review of key business metrics
management level review of key business metrics
●
● These purchasing expectation categories are
These purchasing expectation categories are
presented to start customer expectations
presented to start customer expectations
identification:
identification:
●
● Development of metrics will help fulfill the new ISO
Development of metrics will help fulfill the new ISO-
-
9001:2000 requirement for customer wants and
9001:2000 requirement for customer wants and
needs/satisfaction
needs/satisfaction
•
• Process / System Management
Process / System Management
•
• Financial Health
Financial Health
•
• Minority Supplier Development
Minority Supplier Development
•
• Timing
Timing
•
• Cost / Budget Performance
Cost / Budget Performance
•
• Quality
Quality

11/9/01 5:22 PM
●
● QOS drives continuous improvement and
QOS drives continuous improvement and
management level review of key business metrics:
management level review of key business metrics:
●
● Identification of Customer Expectations is the
Identification of Customer Expectations is the
foundation of a QOS
foundation of a QOS
●
● Under the FM&SP Q1 2002 program:
Under the FM&SP Q1 2002 program:
●
● We will continue regular buyer/supplier business
We will continue regular buyer/supplier business
reviews
reviews
●
● If you are in the early stages of developing a QOS:
If you are in the early stages of developing a QOS:
●
● Training is available with Omnex (
Training is available with Omnex (www.omnex.com
www.omnex.com)
)

11/9/01 5:22 PM
Customer Endorsements
Customer Endorsements
●
● Suppliers need to obtain Customer Endorsements:
Suppliers need to obtain Customer Endorsements:
●
● A pro
A pro-
-forma is available on FSN in the FM&SP Q1 2002
forma is available on FSN in the FM&SP Q1 2002
manual
manual
●
● Customers to be petitioned
Customers to be petitioned
●
● List determined by the Quality Manager and Buyer
List determined by the Quality Manager and Buyer
●
● List provided approximately 9 months before Q1 date
List provided approximately 9 months before Q1 date
●
● Maximum of 5 customers
Maximum of 5 customers
●
● Must be signed and dated
Must be signed and dated
●
● Endorsements for the Q1 petition are valid for one year
Endorsements for the Q1 petition are valid for one year

11/9/01 5:22 PM
Performance Metrics
Performance Metrics
●
● Mode Specific Q1 Requirements
Mode Specific Q1 Requirements
●
● Most Q1 requirements by mode have been identified
Most Q1 requirements by mode have been identified
●
● Focus on Customer Satisfaction
Focus on Customer Satisfaction
●
● Based on Contractual & Industry Standards
Based on Contractual & Industry Standards
●
● They include:
They include:
●
● Metric Measurement Definition
Metric Measurement Definition
●
● Method of Calculation
Method of Calculation –
– including formula
including formula
●
● Source of Data
Source of Data
●
● Reporting Responsibility
Reporting Responsibility

11/9/01 5:22 PM
Performance Metrics
Performance Metrics
●
●
● Metric Measurement Definition
Metric Measurement Definition
●
● Defines the standard to measure performance
Defines the standard to measure performance
●
● Defines metric thresholds for Q1
Defines metric thresholds for Q1
●
● Must meet Q1 thresholds for 6 consecutive months
Must meet Q1 thresholds for 6 consecutive months
●
● Method Of Calculation
Method Of Calculation
●
● Metric formula
Metric formula
●
● Defines how performance is calculated
Defines how performance is calculated

11/9/01 5:22 PM
Performance Metrics
Performance Metrics
●
●
● Source of Data
Source of Data
●
● Defines the source of the metric standard
Defines the source of the metric standard
●
● Defines the source of the calculated performance
Defines the source of the calculated performance
data
data
●
● Reporting Responsibility
Reporting Responsibility
●
● Defines when performance data is required
Defines when performance data is required
●
● Defines who reports performance data
Defines who reports performance data
●
● Provides a pro
Provides a pro-
-forma spread sheet for reporting
forma spread sheet for reporting
●
● Generates a graph from data automatically
Generates a graph from data automatically

11/9/01 5:22 PM
Q1 Targeted Suppliers Notified
Q1 Targeted Suppliers Notified
Review Q1 Requirements/Develop Plan/Date
Review Q1 Requirements/Develop Plan/Date
Initiate ISO & QOS Development
Initiate ISO & QOS Development
Measure/Improve Q1 Performance Metrics
ISO Registration & QOS Approval
ISO Registration & QOS Approval
Performance Metrics Meet Q1 Requirements
Obtain customer endorsements
Obtain customer endorsements
Q1 Petition
Q1 Petition
FM&SP Q1 2002 Process
For those suppliers who have not achieved Q1,
For those suppliers who have not achieved Q1,
the following are the steps to follow:
the following are the steps to follow:

11/9/01 5:22 PM
Review Q1 Requirements/Develop Plan
Review Q1 Requirements/Develop Plan
QOS Development
QOS Development
Review QOS & Perf. Metrics w/Quality Dept.
Review QOS & Perf. Metrics w/Quality Dept.
QOS Approval
QOS Approval
Certify to Q1 2002 (By Dec 2002)
Certify to Q1 2002 (By Dec 2002)
For those targeted suppliers who have achieved Q1,
For those targeted suppliers who have achieved Q1,
the following are the necessary steps to follow:
the following are the necessary steps to follow:

11/9/01 5:22 PM
World Excellence Awards
World Excellence Awards
●
● To Be Eligible:
To Be Eligible:
●
● Must be Q1 in good standing
Must be Q1 in good standing
●
● All performance metrics above Q1 threshold
All performance metrics above Q1 threshold
●
● Criteria for WEA Participation:
Criteria for WEA Participation:
●
● Performance Exceeding Q1 Requirements for
Performance Exceeding Q1 Requirements for
one or more metrics (threshold TBD)
one or more metrics (threshold TBD)
●
● Commercial Rating Greater than 350 Points
Commercial Rating Greater than 350 Points

11/9/01 5:22 PM
=
=
=
=
Quality
Quality
Cost
Cost
105
105
30
30
3.5 X
3.5 X
4
4
3
3
1
1
0
0
245
245
70
70
3.5 X
3.5 X
4
4
3
3
1
1
0
0
WEA
WEA
Minimum
Minimum
Level*
Level*
Weight
Weight
WEA
WEA
Average
Average
3.5
3.5
Exceeds
Exceeds
Fully Meets
Fully Meets
Partially
Partially
Meets
Meets
Does
Does
not
not
Meet
Meet
*Minimum individual score is Fully Meets - Minimum WEA Total 350
Performance Metrics
Performance Metrics –
– Scoring
Scoring
Commercial Rating
Commercial Rating

11/9/01 5:22 PM
2 MINUTE BREAK
2 MINUTE BREAK

FM&SP Q1
FM&SP Q1-
-2002
2002
Quality Operating System
Quality Operating System
Dave Watkins
Dave Watkins
President of OMNEX Inc.
President of OMNEX Inc.

QOS for Q1
QOS for Q1
A Presentation by
A Presentation by
OMNEX, Inc. for
OMNEX, Inc. for
Ford Motor
Ford Motor
Company
Company

11/9/01 5:22 PM
No part of this presentation may be stored in a retrieval system, transmitted or reproduced in any way,
including but not limited to photocopy, photograph, magnetic or other record, without the prior
agreement and written permission of the publisher.
© Omnex, Inc.
© Omnex, Inc.
3025 Boardwalk Drive
3025 Boardwalk Drive
Suite 190
Suite 190
Ann Arbor, MI 48108
Ann Arbor, MI 48108
September 2001
September 2001

11/9/01 5:22 PM
Goals
Goals
●
● Raise QOS
Raise QOS effectiveness
effectiveness within Ford Motor Company
within Ford Motor Company
and the supply base.
and the supply base.
●
● Present the need for change.
Present the need for change.
●
● Show how a QOS helps companies respond to
Show how a QOS helps companies respond to
change.
change.
●
● Introduce the major components of a QOS.
Introduce the major components of a QOS.
●
● Explain how a QOS works.
Explain how a QOS works.
●
● Show how a QOS leads to strategically focused
Show how a QOS leads to strategically focused
continual Improvement.
continual Improvement.

11/9/01 5:22 PM
Challenges
Challenges
●
● All companies are faced with
All companies are faced with unprecedented
unprecedented
demands
demands to deal with the sometimes
to deal with the sometimes
conflicting external requirements to …
conflicting external requirements to …
●
● Grow shareholder value
Grow shareholder value
●
● Understand, achieve and sustain customer
Understand, achieve and sustain customer
satisfaction
satisfaction
●
● Overcome stiff competition
Overcome stiff competition
●
● Meet government standards
Meet government standards

11/9/01 5:22 PM
Challenges
Challenges
●
● To be successful, companies must
To be successful, companies must manage
manage
their internal activities
their internal activities to…
to…
●
● Minimize cost, delivery time and errors.
Minimize cost, delivery time and errors.
●
● Maximize the utilization of their physical, human
Maximize the utilization of their physical, human
and intellectual resources.
and intellectual resources.
●
● Respond quickly and effectively to the needs of
Respond quickly and effectively to the needs of
their customers.
their customers.

11/9/01 5:22 PM
Need for A High Performance
Need for A High Performance
Culture
Culture
●
● To respond effectively to these challenges,
To respond effectively to these challenges,
companies need to
companies need to create a customer
create a customer-
-
focused culture
focused culture that…
that…
●
● Stays focused on the drivers of success.
Stays focused on the drivers of success.
●
● Uses objective data to judge performance.
Uses objective data to judge performance.
●
● Continually improves.
Continually improves.
●
● Involves all employees in the effort.
Involves all employees in the effort.

11/9/01 5:22 PM
Human
Resources
Operations
Purchasing Accounting Sales
General Management
Key Measurables
Process Variation Outputs
Paradigm Problem
Paradigm Problem
●
● Process vs. Function Matrix
Process vs. Function Matrix

11/9/01 5:22 PM
The Basic Operation of a QOS
The Basic Operation of a QOS
Customer
Expectations
Internal
Key Processes
and Events
Measurables for
Key Internal
Processes
Trend of
Measurables
Predict
Downsteam
Performance
Constant
Employee
Awareness
C
O
N
T
I N U A L P R O C E S S I M P R O V E
M
E
N
T
Verify & Adjust
Establish
Correlation Identify
Track
Select

11/9/01 5:22 PM
Key Features of QOS
Key Features of QOS
●
● The
The key features
key features of QOS are consistent with
of QOS are consistent with
ISO 9001:2000 principles and call for…
ISO 9001:2000 principles and call for…
●
● Management Commitment
Management Commitment
●
● Process Focus
Process Focus
●
● Data Driven
Data Driven
●
● Visual Management
Visual Management
●
● Management Review Process
Management Review Process
●
● Improvement Teams
Improvement Teams
●
● Appropriate Improvement Techniques
Appropriate Improvement Techniques

11/9/01 5:22 PM
●
● Management Team Organization
Management Team Organization
●
● Cross
Cross-
-functional
functional team of top managers
team of top managers
●
● Management Team Responsibilities
Management Team Responsibilities
●
● Identifies
Identifies strategic objectives
strategic objectives and
and sets policy
sets policy
●
● Aligns
Aligns everyone towards a
everyone towards a common
common set of
set of goals
goals
●
● Acts as a
Acts as a communications
communications hub
hub
●
● Implements
Implements and
and manages
manages Business Planning
Business Planning
●
● Empowers
Empowers improvement teams
improvement teams
●
● Provides
Provides necessary resources
necessary resources

11/9/01 5:22 PM
Customers
Customers
Customers
Customers
Management
responsibility
Measurement,
analysis and
improvement
Resource
management
Requirements
Satisfaction
Product
Product
realization
Input Output
Continual improvement of the
quality management system
Continual improvement of the
quality management system
Key
Value-adding activities
Information flow
Figure 1 - Model of a process-based quality management system
© ISO 2000
Process Focus
Process Focus
●
● Aligned with ISO/TS 16949:2002 and ISO 9001:2000
Aligned with ISO/TS 16949:2002 and ISO 9001:2000

11/9/01 5:22 PM
Result
Measurable
Key
Process
Key
Process
Key
Process
Key
Process
Key
Process
Key
Process
Result
Measurable
Strategic Goals and Objectives
Customer
Expectations
Competitive
Benchmarks
Mission
Statement
Process
Measurable
Process
Measurable
Process
Measurable
Process
Measurable
Process
Measurable
Process
Measurable
Improvement
Action
Improvement
Action
Teams
Data Driven
Data Driven
The QOS Model
The QOS Model

11/9/01 5:22 PM
Who is the Customer?
Who is the Customer?
●
● Customer
Customer*
*
●
● Product and Service Purchasers
Product and Service Purchasers
●
● Product and Service Users
Product and Service Users
●
● Interested Parties (“Internal Customers”)
Interested Parties (“Internal Customers”)*
*
●
● Financial Stakeholders
Financial Stakeholders
●
● Employees (Safety and Welfare)
Employees (Safety and Welfare)
●
● Government & Community
Government & Community
*ISO 9004:2000 Definition

11/9/01 5:22 PM
Never shutdown my plant
100% on-time to delivery schedule
100% of shipments received by
customer on scheduled day
% On-Time (on day required)
Customer Expectations
Result Measurable
Objective/Goal
Customer Requirements
Alignment of Customer Expectations
Alignment of Customer Expectations
and Strategic Objectives
and Strategic Objectives
●
● An Example
An Example

11/9/01 5:22 PM
Cus tomer Expectation Category
Cos t
$X per Loaded Mile
Res ult Meas urable
Cos t per Loaded Mile
Staffing
Proces s Meas urable
Labor Cos t
Procurement
Leas ing Cos t
Adminis tering
Overhead Cos t
Trans portation
Operations Cos t
Maintenance
Repair Cos ts
Dis patch
Equipment
Utilization %
Data Driven
Data Driven -
- Cost
Cost

11/9/01 5:22 PM
Cus tomer Expectation Category
Delivery Performance
100%On-time Delivery
Res ult Meas urable
Percent On-time Delivery
Driver Scheduling
Delay Hours
Acceptance
Availability Delay
Hours
Equipment
Scheduling
Delay Hours
Maintenance
Equipment OOS
Delays
Preventive
Maintenance
Breakdown Hours
Repair
Emergency
Res pons e Delays
Data Driven
Data Driven -
- Delivery
Delivery

11/9/01 5:22 PM
Visual Management
Visual Management
●
● Data presented visually in a “Four
Data presented visually in a “Four-
-Panel Chart”
Panel Chart”
Action Plans
Reporting Date:
Description Responsibility
Date
Due Status/Inhibitors
Hood F. Findley 6/1/99 Causes identified.
Fr. Bumper C. Adams 9/1/99 Team formed.
Paynter Chart
Jan Feb Mar Apr May Jun Total
Hood 10 9 10 7 5 5 46
Fr bumper 13 14 12 14 14 12 79
Roof 9 9 10 7 4 5 44
Rr Window 2 0 0 1 0 0 3
L Fr Qtr Panel 1 0 0 1 1 1 4
Total 35 32 32 30 24 23 176
Damages
0
5
10
15
20
25
30
35
40
Jan Feb Mar Apr May Jun
Month
Num
ber
Defects Recorded by Location
0
10
20
30
40
50
60
70
80
90
Fr bumper Hood Roof L Fr Qtr
Panel
Rr Window
Damage Location
Num
ber

11/9/01 5:22 PM
●
● Meet Regularly
Meet Regularly
●
● Review QOS and QMS Measurables
Review QOS and QMS Measurables
Performance
Performance
●
● Authorize Improvement Activities
Authorize Improvement Activities
●
● Monitor Progress and Impact of
Monitor Progress and Impact of
Improvements
Improvements
●
● Log Lessons Learned
Log Lessons Learned

11/9/01 5:22 PM
Improvement Teams
Improvement Teams
●
● Improvement Teams that are formed and
Improvement Teams that are formed and
directed by the Management Team are...
directed by the Management Team are...
●
● Cross
Cross-
-functional
functional
●
● Have specific objectives
Have specific objectives
●
● Disbanded at the end of the project
Disbanded at the end of the project
●
● Improvement Teams are responsible for ...
Improvement Teams are responsible for ...
●
● Establishing objectives for the project
Establishing objectives for the project
●
● Developing and executing a plan of action
Developing and executing a plan of action
●
● Verifying the objectives are achieved
Verifying the objectives are achieved

11/9/01 5:22 PM
Appropriate Improvement Tools
Appropriate Improvement Tools
●
● Specific Improvement Tools are selected and
Specific Improvement Tools are selected and
employed depending on the issues involved.
employed depending on the issues involved.
●
● Examples…
Examples…
●
● Six Sigma
Six Sigma
●
● Disciplined Problem Solving (Global 8D)
Disciplined Problem Solving (Global 8D)
●
● Seven Wastes (Kaizen)
Seven Wastes (Kaizen)
●
● 5 S
5 S
●
● Lean Enterprise/Theory of Constraints
Lean Enterprise/Theory of Constraints

11/9/01 5:22 PM
QOS Implementation Steps
QOS Implementation Steps
●
● Step 1:
Step 1: Organize Leadership Team
Organize Leadership Team
●
● Step 2:
Step 2: Define Mission, Vision and Values
Define Mission, Vision and Values
●
● Step 3:
Step 3: Identify Customer Expectations and Result
Identify Customer Expectations and Result
Measurables
Measurables
●
● Step 4:
Step 4: Establish Strategic Goals & Objectives
Establish Strategic Goals & Objectives
●
● Step 5:
Step 5: Identify Key Processes and Measurables
Identify Key Processes and Measurables
●
● Step 6:
Step 6: Formulate Data Management Plans
Formulate Data Management Plans
●
● Step 7:
Step 7: Select Improvement Projects
Select Improvement Projects

11/9/01 5:22 PM
13 MINUTE BREAK
13 MINUTE BREAK

11/9/01 5:22 PM
QOS Approval
QOS Approval
●
● Q1/QOS Meeting:
Q1/QOS Meeting:
●
● First meeting 9
First meeting 9-
-10 months before Q1 date
10 months before Q1 date
●
● Buyer and Quality Department
Buyer and Quality Department
●
● Review scope of Q1 elements for alignment
Review scope of Q1 elements for alignment
●
● ISO approval
ISO approval
●
● QOS
QOS
●
Performance Metrics
●
● Review QOS Development:
Review QOS Development:
●
● QOS Steering Committee formed
QOS Steering Committee formed

11/9/01 5:22 PM
QOS Approval
QOS Approval
●
● Review QOS Development
Review QOS Development
●
● Customer Expectations Identified
Customer Expectations Identified
●
● This is the foundation of QOS
This is the foundation of QOS
●
● Use 80/20 rule to identify Key Customers
Use 80/20 rule to identify Key Customers
●
● Include all key contacts at Customer
Include all key contacts at Customer
●
● Customer Expectations
Customer Expectations
●
● Categorized by function
Categorized by function
●
● Ranked by importance to the customer
Ranked by importance to the customer

11/9/01 5:22 PM
QOS Approval
QOS Approval
●
●
● Strategic Imperatives Developed from:
Strategic Imperatives Developed from:
●
● Customer expectations
Customer expectations
●
● Company mission statement
Company mission statement
●
● Competitive environment/benchmarks
Competitive environment/benchmarks
●
● Results Metric
Results Metric
●
● Identify Result metric to measure performance of each
Identify Result metric to measure performance of each
strategic imperative
strategic imperative
●
● Linked to Customer Expectation
Linked to Customer Expectation
●
● Able to tie each result metric into an expectation
Able to tie each result metric into an expectation
●
● Minimum one result metric for each imperative
Minimum one result metric for each imperative

11/9/01 5:22 PM
QOS Approval
QOS Approval
●
●
● Key Process Metrics
Key Process Metrics
●
● For each result metric
For each result metric
●
● Identify key process metrics affecting result metric
Identify key process metrics affecting result metric
outcome
outcome
●
● Develop process metrics to measure performance
Develop process metrics to measure performance
●
● Linked to result metric
Linked to result metric
●
● Able to tie each process metric into a result metric
Able to tie each process metric into a result metric
●
● Improvement teams working on performance gap to
Improvement teams working on performance gap to
goal
goal

11/9/01 5:22 PM
QOS Approval & Q1 Petition
●
● Status Review QOS Implementation & Q1 Petition
Status Review QOS Implementation & Q1 Petition
●
● Second meeting held 2
Second meeting held 2-
-3 Months prior to Q1 Date
3 Months prior to Q1 Date
●
● Review minutes from first meeting
Review minutes from first meeting
●
● Verify requirements completed
Verify requirements completed
●
● If first meeting not held
If first meeting not held
●
● Review evidence of elements
Review evidence of elements

11/9/01 5:22 PM
●
● Status review QOS Implementation & Q1 Petition
Status review QOS Implementation & Q1 Petition
●
● ISO Certification(s) status
ISO Certification(s) status
●
● Performance metrics at or above Q1 threshold
Performance metrics at or above Q1 threshold
●
● Status of customer endorsements
Status of customer endorsements

11/9/01 5:22 PM
QOS Approval & Q1 Petition Status
QOS Approval & Q1 Petition Status
●
● Status review QOS Implementation & Q1 Petition
Status review QOS Implementation & Q1 Petition
●
● Status review of QOS Implementation
Status review of QOS Implementation
●
● Results metrics
Results metrics
●
● Process metrics
Process metrics
●
● Corrective Action Team Results
Corrective Action Team Results
●
● Examples of Improved customer satisfaction
Examples of Improved customer satisfaction

11/9/01 5:22 PM
Q1 Petition Requirements
●
● Overview of Company
Overview of Company
●
● Summary of company including scope of service
Summary of company including scope of service
●
● Copies of ISO certifications
Copies of ISO certifications
●
● 9001:2000
9001:2000
●
● Audit summary/recommendations
Audit summary/recommendations –
– latest 2
latest 2
●
● 14001 (Not required until 2005)
14001 (Not required until 2005)
●
● Audit summary/recommendations
Audit summary/recommendations –
– latest 2
latest 2

11/9/01 5:22 PM
●
● QOS
QOS
●
● Self assessment
Self assessment
●
● Summary of results and process metrics
Summary of results and process metrics
●
● Chart for each result metric with 12 months data
Chart for each result metric with 12 months data
●
● Chart for each process metric with 12 months data
Chart for each process metric with 12 months data
●
● QOS meeting summaries
QOS meeting summaries –
– latest 6 months
latest 6 months
●
Performance Metrics
●
● Chart for each metric with 12 months of data
Chart for each metric with 12 months of data
●
● Must meet Q1 threshold for latest 6 months
Must meet Q1 threshold for latest 6 months

11/9/01 5:22 PM
●
● Customer Endorsement
Customer Endorsement
●
● Copy of list of customers required to endorse
Copy of list of customers required to endorse
●
● Copy of endorsements signed and dated
Copy of endorsements signed and dated

11/9/01 5:22 PM
Revocation Process: Removing Q1
●
● Occurrence of any of these items will
Occurrence of any of these items will
trigger the revocation process:
trigger the revocation process:
●
● Loss of certification to ISO
Loss of certification to ISO-
-9001, QS
9001, QS-
-9000 or
9000 or
ISO/TS 16949, ISO
ISO/TS 16949, ISO-
-14001
14001
●
● Lack of ongoing QOS maintenance/evidence
Lack of ongoing QOS maintenance/evidence
●
● Loss of Customer Endorsement
Loss of Customer Endorsement
●
● Performance metrics below Q1 (TBD)
Performance metrics below Q1 (TBD)

11/9/01 5:22 PM
●
Performance Metrics
●
● The revocation criteria for performance metrics is TBD
The revocation criteria for performance metrics is TBD
●
● Criteria to be established within 90 days
Criteria to be established within 90 days
●
● Proposed criteria to be reviewed at counsel meetings
Proposed criteria to be reviewed at counsel meetings
●
● Revocation criteria proposals:
Revocation criteria proposals:
●
● A single metric or a combination of metrics
A single metric or a combination of metrics-
-
●
● 2 months out of 6 below Q1 threshold
2 months out of 6 below Q1 threshold
●
●
●
● A single metric
A single metric-
-
●
● 6 month average below Q1 threshold
6 month average below Q1 threshold

11/9/01 5:22 PM
HAND OUTS
HAND OUTS
●
● On your way out pick up a company specific
On your way out pick up a company specific
envelope (1 per company) with the following
envelope (1 per company) with the following
information:
information:
●
● Electronic Communication Sign Up Info
Electronic Communication Sign Up Info
●
● QOS Approval Guidelines
QOS Approval Guidelines
●
● Q1 Petition Guidelines
Q1 Petition Guidelines
●
● Mode Specific Q1 Performance Requirements
Mode Specific Q1 Performance Requirements

QUESTION & ANSWER
QUESTION & ANSWER

QOS.pdf

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QOS.pdf