(c) copyright nigel h croft 2005 1 keeping the qms alive dr nigel h croft mexico city april 21 st...

(c) Copyright Nigel H Croft 2005 1

Keeping the QMS Alive

Dr Nigel H CroftMexico CityApril 21st 2005

(c) Copyright Nigel H Croft 2005 2

ISO 9001:2000 – a common starting point

(c) Copyright Nigel H Croft 2005 3

What is a Management System? ISO 9000:2000

definition:

“set of interrelated or interacting elements to establish policyestablish policy and objectivesand objectives and to achieve those achieve those objectivesobjectives”

Hardware(equipment)

Software(methods)

Humanware(people)

(c) Copyright Nigel H Croft 2005 4

ISO 9001:2000 Scope

Clause 1.1 - “Specifies quality management system requirements for organization to:demonstrate ability to consistently provide

product that meets customer and applicable regulatory requirements

enhance customer satisfaction”

(c) Copyright Nigel H Croft 2005 5

Components of a management system Administrative

Policy Objectives Deployment Doc control Internal audit Management review NC control Corr/Prev Actions Etc…………..

Technical Knowledge of business Product specification Technical integrity of

“product” Legal requirements Understanding of

process etc

(c) Copyright Nigel H Croft 2005 6

Business performance

Need to integrate QMS with:VisionMissionStrategic objectivesOverall business performanceResults

(c) Copyright Nigel H Croft 2005 7

Return on Investment (“ROI”)

Many organizations view QMS only as “cost”, not “investment”

Need to maximize ROI, by ensuring efficiency, as well as effectiveness Doing things

Faster Cheaper “Better” Safer In a more environmentally friendly way

(c) Copyright Nigel H Croft 2005 8

ISO 9001:2000 as a starting point

Different approaches to ISO 9001: “Minimalist” Separate from other Total Quality initiatives Integrated into the way the organization does

business How to promote this?

Process-driven Results-focused Aligned with overall organizational strategy and objectives Integrated with other management systems

(c) Copyright Nigel H Croft 2005 9

The ISO ModelContinual Improvement of the Quality

Management System

Resource Management

Measurement, Analysis,

Improvement

Management Responsibilit

y

Product Realization Product

Inputs Outputs

(c) Copyright Nigel H Croft 2005 10

How to drive the QMS beyond “ISO 9001 compliance”??

(c) Copyright Nigel H Croft 2005 11

Typical motivation cycleM

otiv

atio

n

Time

ISO

90

01Approx 18 months

(c) Copyright Nigel H Croft 2005 12

How to maintain the motivation??

By promoting new initiatives within the within the framework of the QMSframework of the QMS

Important not to confuse these as “substitutes” for the QMS, or a “new flavours of the month”

Some useful “tools”……………

(c) Copyright Nigel H Croft 2005 13

“People-related” tools

5S Seiri – “Sort, Systematize or simplify” Seiton – “Straighten, standardize” Seiso – “Shine” Seiketsu – “Sanitize” Shitsuke – “Sustain”

Quality Improvement Teams (Inter-functional) QC Circles Suggestions plans(NOTE - All rely on the QMS for support and maintenance)

(c) Copyright Nigel H Croft 2005 14

“System-related” tools Systematic Problem Solving

“QC Story” Small-step continual improvement (“Kaizen”) Breakthrough Improvement (“ Reengineering”) where where

necessary!necessary! Statistical techniques

7 tools / 7 “new tools” Statistical Process Control 6-sigma

Management by policy (“Hoshin Kanri”) Error-proofing (“Poka-yoke”) Quality Function Deployment Cost of quality

(c) Copyright Nigel H Croft 2005 15

“Business-related” tools

“Lean” initiatives (Toyota philosophy) Initiatives to reduce bureaucracy Balanced Scorecard (“BSC”) National Quality Awards / Excellence Models Benchmarking Just-in-time inventories (“KANBAN”) Theory of Constraints (Goldratt – “The Goal”) Total Productive Maintenance

(c) Copyright Nigel H Croft 2005 16

But remember………

“A fool with a

tool is still a

fool”

(c) Copyright Nigel H Croft 2005 17

Implementation of new initiatives

Impossible to do all at once! Need to prioritize

“Organizational profile” What is important for youryour organization?

Top management direction & support required

Long-term plan needed Allocation of adequate resources

Financial Human

Marash – “Fusion Management” QSU Publishing

(c) Copyright Nigel H Croft 2005 18

Keeping the MotivationM

otiv

atio

n

Time

ISO

90

01

Initi

ativ

e “A

”

Initi

ativ

e “B

”

Initi

ativ

e “C

”

Approx 18 months

(c) Copyright Nigel H Croft 2005 19

Looking beyond “conformance” to “performance”

(c) Copyright Nigel H Croft 2005 20

EFFECTIVENESS

Dictionary definition: “producing or capable of producing a

desired effect” ISO 9000:2000 definition:

“extent to which planned activities are realized and planned results achieved”

(c) Copyright Nigel H Croft 2005 21

EFFICIENCY

Dictionary definition:“Acting or producing effectively with a

minimum of waste, expense, or unnecessary effort.”

“Exhibiting a high ratio of output to input” ISO 9000:2000 definition:

“Relationship between the result achieved and the resources used”

(c) Copyright Nigel H Croft 2005 22

Cause and EffectPROCESS “INTENDED

PRODUCT”

“UNINTENDED PRODUCT” (WASTE)INEFFICIENCY

(c) Copyright Nigel H Croft 2005 23

ISO 9001:2000

Specifies QMS requirementsrequirements for an organization: to demonstrate ability to consistently provide

conforming productproduct to enhance customer satisfaction

Requires continual improvement of the system effectivenesseffectiveness

(c) Copyright Nigel H Croft 2005 24

ISO 9004:2000

Goes beyond requirements of ISO 9001 Provides guidanceguidance (“should”, not “shall”)

on: Effectiveness and efficiencyand efficiency Performance improvementPerformance improvement

Focuses on benefits for all Interested for all Interested Parties (“IP’s”)Parties (“IP’s”)

(c) Copyright Nigel H Croft 2005 25

The ISO ModelContinual Improvement of the Quality

Management System

Resource Management

Measurement, Analysis,

Improvement

Management Responsibilit

y

Product Realization Product

Inputs Outputs

(c) Copyright Nigel H Croft 2005 26

Interested Parties

Customers

& end users& end users

PeoplePeople in

the organization

Owners & investorsOwners & investorsSuppliers & partnersSuppliers & partners

SocietySociety

(community & the public)

(c) Copyright Nigel H Croft 2005 27

ISO 9001

ISO 9004ISO 9004 perspective:Performance Improvement; QMS efficiencyefficiency

ISO 9001 perspective: Quality of “product”;QMS effectivenesseffectiveness

Relationship ISO 9001/ISO 9004

(c) Copyright Nigel H Croft 2005 28

Relationship ISO 9001/ISO 9004

“Consistent pair”of stand-alone standards Common format & structure Harmonized terminology (ISO 9000:2000) Both based on 8 “Quality Management

Principles” Emphasized more in ISO 9004

(c) Copyright Nigel H Croft 2005 29

“Comprehensive & fundamental rule, for leading & operating an organization, aimed at continually improving continually improving performance over the long termperformance over the long term by focusing on customers while addressing the needs of all other Interested Parties.”

Quality Management Principle

(c) Copyright Nigel H Croft 2005 30

Quality Management Principles

Customer-focused organization Leadership Involvement of people Process approach System approach to management Continual improvement Factual approach to decision making Mutually beneficial supplier relationship

(c) Copyright Nigel H Croft 2005 31

Linking the QMS to business performance

(c) Copyright Nigel H Croft 2005 32

Keys to business success

Define and deploy the Vision, Mission and Strategic Objectives

Understand the overall business processes

Apply PDCA throughout the organization

(c) Copyright Nigel H Croft 2005 33

Plan•What to do?

•(“Objective”)•How to do it?

•(“Procedure”)

Do•Do what was planned

Check• Did things happen according to plan?

Act•How to improve next time?

(c) Copyright Nigel H Croft 2005 34

Plan (Strategic level):

WhatWhat do we want to achieve? Vision Mission Objectives

HowHow can we achieve it? Business plan Strategies Resources

Dr Deming – “It’s pointless to establish an objective without defining a methodmethod to achieve it”

(c) Copyright Nigel H Croft 2005 35

Do:

Get everyone involved, committed, and motivated (“Leadership”!)

Carry out “the plan”Deploy throughout the organizationBreak down the objectives to the appropriate

functions and levels

(c) Copyright Nigel H Croft 2005 36

Check:

Is this what we expected? Are the results OK? Can they be improved? Look for trendstrends

(c) Copyright Nigel H Croft 2005 37

Act Correct what went wrong (Correction)(Correction) Plan to do it right next time (Corrective action)(Corrective action) Learn to make things “error-proof” (Preventive (Preventive

action)action) Think – how can we do this……..

More consistently? Faster? Cheaper? Better? Safer? More environmentally friendly?

(Improvement)(Improvement)

(c) Copyright Nigel H Croft 2005 38

The strategic view“Where do we want to be in the long term?”

““Understand, manage and improve”Understand, manage and improve”Understand the businessDefine policy and objectives Deploy policy throughout organizationRoutine managementContinual (small-step) improvementsBreakthrough improvements

(c) Copyright Nigel H Croft 2005 39

Understand the business

Why are we here? Who is (who are) our customer(s)? What is our product? What are our processes? How do they fit together? What is important (risk analysis)?

(c) Copyright Nigel H Croft 2005 40

Manage the business

Use the “Plan-Do-Check-Act” cycle at all levels, functions and processes in the organization from the Board Room to the shop floor from R&D through customer support

(c) Copyright Nigel H Croft 2005 41

Improve the business

Focus on the customer, but don’t forget other stakeholders

Focus on the key processes Keep an eye on the competitor Innovate Think ahead (future trends; technologies;

economic climate etc)

(c) Copyright Nigel H Croft 2005 42

“The forgetful organization”

Time

Improvements

Improve Improve Improve

FORGET FORGET FORGET

““SAWTOOTH” EFFECTSAWTOOTH” EFFECT

(c) Copyright Nigel H Croft 2005 43

“The learning organization”

Time

Improvements““LADDER” EFFECTLADDER” EFFECT

“KAIZEN” (

Continual i

mprovement)

ImproveStandardize

Maintain (routine)

(c) Copyright Nigel H Croft 2005 44

Conclusions

We need to keep people motivated with new ideas within the overall framework of the QMS.

Look for efficiencyefficiency, in addition to effectivenesseffectiveness Has to be top-management driven

Will help to achieve business objectives Will drive improvement

There are many ways to do this Careful not to try to do everything at once

Need to customize Need to prioritize

(c) Copyright Nigel H Croft 2005 45

Muchas Gracias!