1 / 33

Quality Management Principles Become CEO Management Practices

Mia_John
Download Presentation

Quality Management Principles Become CEO Management Practices

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

    1. Quality Management Principles Become CEO Management Practices Marsha Ludwig-Becker September 2002 This is a brief that all that deal with the ISO 9000 and ISO 14000 should review. It is the basis for management of both standards. It sets the mindset for the management system. This is a brief that all that deal with the ISO 9000 and ISO 14000 should review. It is the basis for management of both standards. It sets the mindset for the management system.

    2. 2 No commentNo comment

    3. 3 The quality system is within the management system. Everything starts with the customer, and ends with customer service.The quality system is within the management system. Everything starts with the customer, and ends with customer service.

    4. 4 ISO 9000-2000 Invokes Quality Management Principles(QMP) ISO 9004-2000 paragraph 4.3, “Use of Quality Management Principles”: “To lead and operate an organization successfully, it is necessary to manage it in a systematic and visible manner. … These principles have been developed for use by top management in order to lead the organization toward improved performance. These quality management principles are integrated in the contents of this International Standard…”* They certainly have been incorporated Highlights of the new ISO 9000-2000 are: Customer focus, leadership, involvement of people, process approach, systematic approach to management, continual improvement, factual approach to decision making, and mutually beneficially supplier relations Evidence of where these requirements are in ISO 9001:2000 can be found in the module defining exact changes In the ISO 9000-2000 the Quality management principles are documented, and can be traced to the ISO 9001 and the ISO 14001.In the ISO 9000-2000 the Quality management principles are documented, and can be traced to the ISO 9001 and the ISO 14001.

    5. 5 Quality Management Principles: Definition The definition of Quality Management Principles is: A comprehensive and fundamental set of rules or beliefs for leading and operating an organization aimed at continually improving performance over the long term by focusing on customers while addressing the needs of all stakeholders.*1 No commentNo comment

    6. 6 What are the Eight (8) Quality Management Principles? 1. A Customer Focused Organization 2. Leadership 3. Involvement of People 4. Process Approach 5. Systematic Approach to Management 6. Continual Improvement 7. Factual Approach to Decision-Making 8. Mutually Beneficial Supplier Relationships *1 These are the eight quality management principles. Now we will go through them one at a time. At the end we will have an assessment tool so that your organization can judge where your organization is using these principles. Your business can be design, manufacturing, or service, the principles are the same. These are the eight quality management principles. Now we will go through them one at a time. At the end we will have an assessment tool so that your organization can judge where your organization is using these principles. Your business can be design, manufacturing, or service, the principles are the same.

    7. 7 Principle 1: Customer Focused Organizations Organizations depend on customers and must understand, strive to meet and exceed customer expectations. *1 Two facets: Customer focused organizations, which should result in customer satisfaction is a number one objective World Class Companies (Motorola/Hewlitt Packard (HP)/Texas Instruments (TI) anticipate customer requirements/needs Baldrige category : “Customer Focus and Satisfaction” is one whole area Long term customers a plus for business Profits come from upgrades, services, new products that people believe in; Customer Satisfaction is only the first step in building long term loyal customers; the need is to focus on retention and loyalty Use Quality Function Deployment (QFD) Can be used for almost anything, see Lou Cohen’s book, How to Make QFD Work for You, (Addison-Wesley, 1995) as well as the QFD internet page:http.www//akao.larc.nasa.gov/dfc/qfd.html Without customers, there is no business Organizations need to build customer relationships QFD is a good tool for defining customer requirements.Without customers, there is no business Organizations need to build customer relationships QFD is a good tool for defining customer requirements.

    8. 8 Principle 1: Customer Focus/Satisfaction What have you purchased and then find out you were more than pleased with. This is Kano’s theory. He calls it “delight”. What have you purchased and then find out you were more than pleased with. This is Kano’s theory. He calls it “delight”.

    9. 9 Baldrige Award Criteria Framework The Baldrige criteria is excellent for an organization to use for improvement. It is a model that emphasizes the customer. For detailed data on Customer Satisfaction see the module on Voice of the Customer: Customer Satisfaction. The Baldrige criteria is excellent for an organization to use for improvement. It is a model that emphasizes the customer. For detailed data on Customer Satisfaction see the module on Voice of the Customer: Customer Satisfaction.

    10. 10 Principle 2: Leadership Leaders establish unity and purpose for the internal environment of the organization.*1 Leaders must be people that Have the ability to think in time spans of years instead of months Visualize life in 5 years--what do you want it to be Stresses corporate “big picture” Leaders Develop a participative climate Partnerships Make others responsible Employee participation “Walk what you talk” “Say what you mean, mean what you say” Principle 2 is Leadership. An organization must have leadership.Principle 2 is Leadership. An organization must have leadership.

    11. 11 Vision Led Value Driven Leadership These are traits of a leader. These are traits of a leader.

    12. 12 Principle 2: Leadership Leadership skills must be cultivated Encourage innovation and change No fear of failure, sponsor change 3M has scientists spend 15% of time on new ideas Provides corporate funding Create a secure environment Compromise between Japanese concept of lifetime employment and the American tendency to “fire at will” Creates greater work efficiency Leadership skills can be learned and improved.Leadership skills can be learned and improved.

    13. 13 Principle 3: People Involvement People at all levels are the essence of the organization and their full involvement enables their abilities to be used for the organization’s benefits. *1 Worker empower comes from the ability of employees to make a difference in the process they management Workers need tools to analyze, organize, understand and use large amounts of date to make important decisions that impact the bottom line Principle 3 is People Involvement or “empowering people”.Principle 3 is People Involvement or “empowering people”.

    14. 14 Principle 3: People Involvement The Way of the Beaver People* Work best when they control their own jobs Must have clear understanding of company’s overall purpose as well as their place in it (clear goals, values) People must know that their thoughts, feelings, needs and dreams are respected listened to and act on. They are in the information loop Then people take control of their work Must set realistic goals for employes Individuals take pride in in holding themselves accountable for productivity, innovations, cost control, customer service and other business needs Need boundaries--helps encourage self control and accountability Empowment cultures become team cultures Then must be taught to work in teams Self explanatorySelf explanatory

    15. 15 Principle 3: People Involvement Empowerment** Responsibility is delegated, not authority Three facets to empowment (each depends on the other two) Wisdom to know what to do and when to do it The will to do what needs to be done and The wherewithal to do it: Figure 3.1a: The empowment cube A good model for empowerment of people A good model for empowerment of people

    16. 16 Principle 4: Process Approach A desired result is achieved more efficiently when related resources and activities are managed as a process. *1 Everything done is involved in a process Meets needs and requirements of internal and external customers Must have clear responsibility for each process Measure process, measure inputs, and outputs Principle 4: the process approach. This is vital to the new 2000 requirements. For some organizations this is a definite transition if the organization has NOT looked at its processes. Principle 4: the process approach. This is vital to the new 2000 requirements. For some organizations this is a definite transition if the organization has NOT looked at its processes.

    17. 17 Principle 4: Process Approach Baldrige Approach, Category 6, Process Management ISO 9001-1994 generally manufacturing oriented As begins more use in other industries, the new 2000 standards are changing Total quality management (TQM) is cornerstone of process An example of process from the Baldrige carteria. An example of process from the Baldrige carteria.

    18. 18 Principle 4: Process Approach Processes should satisfy customer’s needs If they don’t; they are NOT good processes Process improvement focuses on implementing the best methods for translating valid operational requirements into finished products and services Processes are defined by flow charts Identify key processes and related goals Define key cross functional business processes Form teams and develop charters Develop measurements Manage the Process Discuss process maintenance, improvement, team improvement Self explanatory. For lots of detail on the process approach see the Module on Process Focus and Improvement. Self explanatory. For lots of detail on the process approach see the Module on Process Focus and Improvement.

    19. 19 Principle 5: Systematic Approach to Management Identifying, understanding, and managing a system of interrelated processes for a given objective contributes to the effectiveness and efficiency of the organization.*1 Management: A series of interrelated processes A system is defined by identifying all interrelated processes and their interdependences A system is managed as system of interrelated processes Integrated Master Plan (IMP); Integrated Master Schedule (IMS) New requirements of DOD in US A system is improved by continuous measuring and evaluating An effective system provides confidence in organization’s capability to meet customer requirements Principle 5: Systematic Approach to management. This is somewhat difficult because the management must see how all the processes fit together. The next chart is good, because an organization must start with its core processes. Principle 5: Systematic Approach to management. This is somewhat difficult because the management must see how all the processes fit together. The next chart is good, because an organization must start with its core processes.

    20. 20 Principle 5: Systematic Approach to Management The Business Process Once the core processes, in darkened areas are flow charted, the support processes can be shown around the outside. There must be detailed process charts at each level for both support and process, but they need to start from the top. Once the core processes, in darkened areas are flow charted, the support processes can be shown around the outside. There must be detailed process charts at each level for both support and process, but they need to start from the top.

    21. 21 Principle 6: Continual/Continuous Improvement Continuous/continual improvement is the permanent object of an organization that wishes to stay in business. *1 Performance improvement: 3 flavors Strategic planning--customer needs Operational planning--translates strategy into operational and financial requirements Process improvement focuses on best methods for operational requirements into finished product/services Demings:Plan/Do/Act/Study(check) P- Plan activities D- Implement the Plan C- Study (Check) the result A- Improve the process Principle 6 is continual improvement. The Deming’s Plan, Do, Check, and Act chart is good for continual improvement. But first your processes and the measurements for them must be defined. Principle 6 is continual improvement. The Deming’s Plan, Do, Check, and Act chart is good for continual improvement. But first your processes and the measurements for them must be defined.

    22. 22 Principle 6: Continual/Continuous Improvement Phases of continuous process improvement (see next chart) Awareness, Resistance, Expansion, Integration and finally regeneration, or continuous improvement Strategies for Implementation 1. Commitment 2. Training 3. Targeting and Deployment 4. Resources 5. Measurements 6. Management Structure 7. Systems Alignment 8. Communication and Information** Continual improvement can occur only after the strategies for implement are defined in detailed. Continual improvement can occur only after the strategies for implement are defined in detailed.

    23. 23 Principle 6: Continual/Continuous Improvement Blueprint for Excellence at the Air Force Logistics Command (AFLC) This is the model the USAF uses for continual improvement. This is the model the USAF uses for continual improvement.

    24. 24 Principle 7: Factual Approach to Decision-Making Effective decisions and actions are based on the logical and intuitive analysis of data and information.*1 “Can’t manage what you can’t measure” “In God we trust, all others bring data” Programs that produce employee involvement Statistical Process Control (SPC)--more than for manufacturing Now used in all soft processes Software, in Europe, only think of SPC Motorola’s Six Sigma program is a SPC program, that produces a goal for all the employees to aim at and rally around Must measure all processes, especially business processes This is where the money can be saved and customer satisfaction heightened Measurement must be automatic: built into the process Principle 7: Factual Approach to Decision Making. Self explanatory Principle 7: Factual Approach to Decision Making. Self explanatory

    25. 25 Principle 7: Factual Approach to Decision-Making Almost any process can have SPC applied to it. Use this model. Almost any process can have SPC applied to it. Use this model.

    26. 26 Principle 7: Factual Approach to Decision-Making Measuring Business Processes This is another model to look at getting factual data about a business process. This is another model to look at getting factual data about a business process.

    27. 27 Principle 8: Mutually Beneficial Supplier Relationships Mutually beneficial relationships between the organization and its suppliers enhance the ability of the organization to create value. *1 A Win Win Philosophy!!!! Supplier Partnership is the new buzzword Part of a new way of doing business TQM is making the difference Fewer suppliers/longer term suppliers, specialization, cost Cross functional teams including suppliers Best Value = Customer satisfaction Involved in Service sector as well Involve suppliers in product development On Site, strategic planning, input on product plans Electronic purchase orders and automated systems Principle 8: Mutually Beneficial Supplier Relationships It does no good to “beat up” suppliers, you need to get them involved in the design and establish a win-win philosophy with them. Principle 8: Mutually Beneficial Supplier Relationships It does no good to “beat up” suppliers, you need to get them involved in the design and establish a win-win philosophy with them.

    28. 28 Principle 8: Mutually Beneficial Supplier Relationships Supplier Chain Management Measures cycle time Cuts transportation costs 5-12% Inventory costs 10-40% Schedule changes 15-65% Cuts out stovepipes; allows more benchmarking** Supply chain management is automation in this electronic age. Requirements go automatically to suppliers from the prime contractor to fill the order. You can see the savings. Supply chain management is automation in this electronic age. Requirements go automatically to suppliers from the prime contractor to fill the order. You can see the savings.

    29. 29 Summary Implementing the Eight Principles is not easy Takes a good leader Takes vision/perseverance An infrastructure must be established Communication needs to be done Much planning should start immediately Goes along well with ISO 9000 implementation See attached Self Assessment for QMP Implementation A review A review

    30. 30 Have each of your organizations evaluate themselves on this matrix. Then ask them how soon they can move up to the next level. Optimum is level 5, but it may take years to get there. Have each of your organizations evaluate themselves on this matrix. Then ask them how soon they can move up to the next level. Optimum is level 5, but it may take years to get there.

    31. 31 The second page of same.The second page of same.

    32. 32 Sources California Management Review, S549 Haas School of Business #1900, Berkeley, CA 94720, cmr@haas.berkeley.edu ANSI/ISO/ASQ Q9004-2000, Quality Management Systems--Guidelines for performance improvements, American Society for Quality (ASQ), P.O. Box 3005 Milwaukee, WI 53201, 2000; http://standardsgroup.asq.org The Informed Outlook, International Forum for Management Systems, Inc., 15913 Edgewood Dr.Montclair, Virginia 22026, www.informintl.com ANSI/ASQC Q9001- 1994, Quality Management and Quality Assurance Standards--Guidelines for Selection and Use, ASQ, Milwaukee, WI, 1994 Ludwig-Becker, M., Electronics Quality Management Handbook, McGraw-Hill, 1998, becker2@worldnet.att.net Sources and Resources.Sources and Resources.

    33. 33 Sources Manufacturing Systems (A Cahners publication) April 1997 or see http.www.manufacturingsystems.com Quality Digest, 1350 Vista Way., P.O. Box 882,Red Bluff, CA 96080, qualitydig@qof.com Quality Management Principles Internet site: http:www.wineasy.se/qmp/about.html and ISO 9004: July 1998, p.415-416 & ISO/CDI ISO 9000-1998, p. 2 Quality Progress, American Society of Quality, 611 E. Wisconsin Ave., P.O. Box 3005, Milwaukee, WI 53201 For Quality Function Deployment (QFD)Lou Cohen’s book, How to Make QFD Work for You, (Addison-Wesley, 1995) as well as the QFD internet page:http.www//akao.larc.nasa.gov/dfc/qfd.html

More Related