Agile Quality in the New World - 27/10/10 presentation

1. Quality perspectives in the New WorldQuality perspectives in the New World
Delivering EndDelivering End--toto--EndEnd AgileAgile QualityQualityDelivering EndDelivering End toto EndEnd AgileAgile QualityQuality
ASQASQ
27/10/201027/10/2010

2. Contents
1. Me ? An agile QM ? Why bother….g y
2. Context & Background
3. India 2020 – the emerging scenario
4 Th A il Q lit E li t4. The Agile Quality Evangelist
5. Agile Quality Engagement – contact points
6. What it will take from you and me…
7. In Conclusion

3. 1. Agile Quality Management ?
Wh h ld b hWhy we should bother….

4. CEO Speak - We don’t have any quality problems!
We have a clear strategy for product and market growth.
W k tl h t t tWe know exactly what our customers want.
Our customers never change their minds.
Our products fulfill their basic needsOur products fulfill their basic needs.
Our products delight and attract new customers.
We never lose customers to the competitionWe never lose customers to the competition.
Our products work exactly as designed.
We never force our customers to accept tradeoffs.p
Our products make it to market on time, on budget, without
sacrificing quality or functionality.
Our plants and service operations are defect free.

5. Feedback on Quality Teams…
`My quality team are nice folks, but totally ineffective’
I cant seem to see much value coming from this
team…
They do the QA, but none of the defects they
i t t i d tpoint out improve my product.
I never followed a single Quality process, but
my project came out TOPS !
h l h dThe quality team & the production team are on Venus &
Mars respectively !

6. Executive Focus – Quality & CSAT
Are quality-related efforts worth their cost? What is quality's
t i t t?return on investment?
Quality must be measurable, preferably in dollars.
A d ff t l ti hi t i t b t lit dA cause-and-effect relationship must exist between quality and
financial results.
Additional aspects to be considered when analyzing
quality's return on investment:
Investment vs. expense (= prevention vs. correction)
Scope of quality

7. 2 Context & Background2. Context & Background

8. Quality Goals
Driven by Customers’ Needs & Expectations
Cost-Efficient Operations and Processes
High Quality Performance & Defect-Free Products
On-Time Delivery & Customer Supporty pp
Continuous Processes Improvement
Customer Total Satisfaction

9. Functions of Quality Management - 1
Quality planning – create and manage the master data
th t i i d t l d t lit i tithat is required to plan and execute quality inspections
Quality inspection – identify whether the inspected units
fulfill the predefined quality requirementsfulfill the predefined quality requirements
Quality certificate – certify the quality of a material
(contains texts specification values and(contains texts, specification values, and
inspection results)
Quality notification – record and process internal andQuality notification record and process internal and
external problems that are primarily caused by
poor-quality goods or services
9

10. Functions of Quality Management - 2
Quality control – implement various preventive,
it i d ti ti itimonitoring, and corrective activities
Specifications from quality planning and evaluations
from quality inspections and quality notifications formfrom quality inspections and quality notifications, form
the basis for quality control
Test equipment management – manage master data,q p g g ,
as well as plan and process calibration inspections
for test equipment
Stability study – manage basic data, as well as the
planning and execution of stability studies
10

11. Quality – an agile dimension
Product Test &
Validation
Manufacturing
Production
Manufacturing
Validation
Sales
& Distribution
Product
Manufacturing
Engineering
Customer’s
ExperienceProduct
Engineering
Maintenance
& Repair
QualityQuality
Concept
Engineering
p
Disposal
& Recycling
Requirements &
Planning

12. Today’s Context…
Quality ManagementQuality Management should be a coreshould be a core
component that facilitates thecomponent that facilitates the successfulsuccessful
commercializationcommercialization of productsof products
ToTo drivedrive Continuous Product and ProcessContinuous Product and Process B Q lit
ToTo bridgebridge “As Planned” and “As Built” gaps“As Planned” and “As Built” gaps
ToTo drivedrive Continuous Product and ProcessContinuous Product and Process
Improvement InitiativesImprovement Initiatives
Be a Quality
Evangelist through the
process !
ToTo improveimprove manufacturingmanufacturing performanceperformance
EnsureEnsure integrationintegration of enterpriseof enterprise--wide applications towide applications to
drive the cycle of commercializationdrive the cycle of commercializationdrive the cycle of commercializationdrive the cycle of commercialization
ToTo deliverdeliver realreal--time productiontime production informationinformation toto
decisiondecision--makersmakers

13. 3 India 2020 Emerging Scenario3. India 2020 – Emerging Scenario

14. Global engineering and R&D spend is
on track to exceed $1 Trillion
Engineering Spend byEngineering Spend by
SectorSector
((20062006))
Engineering Spend by SectorEngineering Spend by Sector
(2020)(2020)
((20062006))
OthersOthers
3636%%
Other*
34%
Hi-Tech/
Telecom
34%
Hi-Tech/
Telecom
30%
Other*
38%
3636%%
OthersOthers
35%35%
Automotive
19%Aero
8%
UtilitiesUtilities
A t ti8%
Const./IndustrialsConst./Industrials
4%4%
3%3% Automotive
17%
Aero
8%UtilitiesUtilities
2%2%
Const./ Industrials 4%Const./ Industrials 4%
Total = ~$850 BillionTotal = ~$850 Billion Total = ~$1,100 BillionTotal = ~$1,100 Billion
* Other includes Pharmaceuticals, Chemicals and Defense* Other includes Pharmaceuticals, Chemicals and Defense
Source: Booz Allen R&D spend databaseSource: Booz Allen R&D spend database

15. India will meet this challenge and gain market
shareshare
2004 2010* 2020**
India’s Position in the Engineering Services Offshoring MarketIndia’s Position in the Engineering Services Offshoring Market
2004 2010 2020
India
India
India
Others
Others
Others
Total = $15 BTotal = $15 BTotal = $15 BTotal = $15 B Total = $90 B+Total = $90 B+Total = $90 B+Total = $90 B+ Total = $200 B+Total = $200 B+Total = $200 B+Total = $200 B+
Notes: * Estimate; ** Projection. Others includes all countries offering lower wages than high cost countriesNotes: * Estimate; ** Projection. Others includes all countries offering lower wages than high cost countries——includes Canada, Mexico, Easternincludes Canada, Mexico, Eastern
Europe, Brazil, ASEAN, and China. Does not include Defense and government sponsored spend, e.g., Nuclear power plants,Europe, Brazil, ASEAN, and China. Does not include Defense and government sponsored spend, e.g., Nuclear power plants,
government sponsored construction, etc. Directional estimatesgovernment sponsored construction, etc. Directional estimates
Source: Booz Allen engineering spend database, Booz Allen Resilience Report; World Investment Report; UN Developing CountrieSource: Booz Allen engineering spend database, Booz Allen Resilience Report; World Investment Report; UN Developing Countries Rs Report;eport;
Booz Allen ICBooz Allen IC

16. Market growth will come in waves
Market Potential for India (2004Market Potential for India (2004 –– 2020)2020)
$35 VerticalVertical
B)
$25
$30
AerospaceAerospace
IndustrialIndustrial
UtilitiesUtilities
Wave 3Wave 3
ePotential($
$15
$20
AutomotiveAutomotive Wave 2Wave 2
Revenue
$10
$15
HiHi--Tech/Tech/
TelecomTelecom WaveWave 11
$0
$5
2004 2006 2008 2010 2012 2014 2016 2018 202000 006 008 0 0 0 0 0 6 0 8 0 0
Note: Does not include DefenseNote: Does not include Defense
Source: Booz Allen NASSCOM study; Booz Allen IC; Industry research, Expert InterviewsSource: Booz Allen NASSCOM study; Booz Allen IC; Industry research, Expert Interviews

17. 4 ENTER4. ENTER…
The Agile Quality Evangelist !The Agile Quality Evangelist !

18. Enterprise Backbone – Quality !
Differentiators: Total Quality Management Plus Integration
Workflow,
authorization
concept,
QM manual
Inventory management,
batch management,
change handling, CAPA,
data Warehouse,
Quality-related
costs,
revenues
Test equipment
management,
calibration
planning & execution
Human
Logistics
Finance &
t lli
Enterprise asset
t
QM manual
document Management
planning & execution
resources
Logistics
controlling management
Enterprise quality management
Sales
ProductionProcurement
Research
&
development
Stability studies,
flexible
specifications,
Inspection planning,
supplier release,
goods receipt inspection,
l t
In-/post-process control,
SPC, interfaces for
measurement devices,
deviation management
Quality data
exchange,
billing of analysisp ,
recipe management
sample management,
audit management
deviation management,
electronic batch record
billing of analysis

19. Establish repeatable processes
Build Global knowledge repository
Capture best practices Transform Innovation !p p
NEW PRODUCT
DEVELOPMENT
VALUE CHAIN
SYNCHRONIZATION
ENTERPRISE DATA
COMMONIZATION &
REUSE
MANAGEMENT
REUSE
KNOWLEDGE/IP
MANAGEMENT
REGULATORY
COMPLIANCE
PRODUCTION
EFFICIENCY
SYSTEMS ENG. &
MECHATRONICS

20. 5 Agile Quality Engagement5. Agile Quality Engagement
Contact PointsContact Points

21. The Total Qality Effect
…Delivering End-to-End Quality across the lifecycle

22. Closing the Gap
… The Need for a Quality Backbone
E i i D t M f t i D tEngineering Data
Design Information
Test Data
Manufacturing Data
Assembly Information
Part Data
As PlannedAs Planned As BuiltAs Built
Closed loop betweenClosed loop between
product design andproduct design andAs PlannedAs Planned As BuiltAs Builtproduct design andproduct design and
product buildproduct build
Event Management Visibility
Part and Process Traceability
Closed Loop Quality
Source: “IndustryWeek Webcast, February 22, 2006, featuring AMR’s Kevin Reale”.

23. What it means
… Holistic Quality Lifecycle Management
As DesignedAs Designed As PlannedAs Planned As BuiltAs Built As MaintainedAs Maintained
S ifi ti
RequirementsRequirements
P t
Bill ofBill of
ProcessProcess
CADCAD BOMBOM Build CaptureBuild Capture
Batch/Lot
MROMRO
DocumentationSpecifications
Standards
Regulatory
Part
Process
Operations
Batch/Lot
Date/Time
Location
Events
Documentation
Repair Paths
Requirements
Quality Backbone

24. 6. What it will take from you and me…

25. Quality Approach
Customer Expectations
QA/QC/ ProcedureQA/QC/ ProcedureSet theSet the
“Quality Standard”“Quality Standard”
Process PlanningProcess Planning
-- IQC/OBS Check ListIQC/OBS Check List
PFMEAPFMEA
Training/QualificationTraining/Qualification
Design the “Quality”Design the “Quality”
into Processinto Process
Production System
Incoming QC/ ControlsIncoming QC/ Controls
Visual InspectionVisual Inspection
First QC (before BurnFirst QC (before Burn--in)in)
Static/Dynamic BurnStatic/Dynamic Burn inin
Build the “Quality”Build the “Quality”
Screen theScreen the
“Quality”“Quality”
Production System
Static/Dynamic BurnStatic/Dynamic Burn--inin
Final QC (after BurnFinal QC (after Burn--in)in)
OutOut--ofof--Box QABox QA
into Productinto Product
Validate theValidate the
“Quality Standard”“Quality Standard”
QA System
SatisfactionCustomer Satisfaction
QA System

26. 7. In Conclusion….

27. The Agile Quality Impact
Facilitates the transition from productFacilitates the transition from product
d i d id i d i
Accelerate Speed to Market
New Product Development
design to production ramp updesign to production ramp up
Supports continuous processSupports continuous process
Accelerate Speed to Market
Faster Return on Innovation
Enterprise Data Management
improvement effortsimprovement efforts
Provides clear proof of complianceProvides clear proof of compliance
Faster Return on Innovation
Investments
Mitigate Risk Maintain Access
Regulatory Compliance
with complete traceabilitywith complete traceability
Assures “as planned” manufacturingAssures “as planned” manufacturing
execution with realexecution with real--time processtime process
Mitigate Risk, Maintain Access
to Markets
Support Perfect Order
Production Efficiency
execution with realexecution with real--time processtime process
monitoring and controlmonitoring and control
Manage complex manufacturingManage complex manufacturing
Support Perfect Order
Execution
Visibility Amongst Partners and
Value Chain Synchronization
business relationshipsbusiness relationships
Visibility Amongst Partners and
Suppliers

28. Does Agile Quality Management Work ?
… Initiatives on the Shopfloor
High Tech & ElectronicsAutomotive & Heavy Machinery Aerospace & Defense High Tech & ElectronicsAutomotive & Heavy Machinery Aerospace & Defense
Improved production efficiency
with real-time KPIs
Enforced routes
Issued precise task and work
i t ti
Real-time monitoring and
control of high-mix environments
I d fi t i ldMinimize dnon-conformance
Facilitated flexible
manufacturing
Minimized scope of recalls
instructions
Met rigid traceability requirements
Facilitated shopfloor data capture
Integrated non conformance
Increased first-pass yields
Facilitated environmental
compliance efforts on the
shopfloor
Minimized scope of recalls Integrated non-conformance
processes