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  • www.mesa.org2008 North American Plant-to-Enterprise ConferenceSeptember 21-23, Orlando, FL

    One Enterprise Quality-Digitize your QMS

    Sreenivasa Chakravarti, Automotive Lead, TCSLSharad Nigam, Associate Consultant, TCSL

    John Phillips, Director - Standards Integration, Cummins Inc.

  • - 2 -

    The following Strategic Initiatives of MESA International are associated with

    this presentation:

    Quality & Regulatory Compliance

  • - 3 -

    Defining the components of an enterprise quality management system

    Leveraging IT to integrate these components Using this integrated system as an enabler to

    achieve competitive advantage

    Objectives

  • - 4 -

    Paving the way for a Quality Revolution

    Integrated Q Principle

    The Changing Face of Quality

  • - 5 -

    Contents

    Business Drivers The Road Map

  • - 6 -

    The Changing Face of Quality

    1

  • - 7 -

    Evolution of Q Concepts

    Concept of Zero Defects Feigenbaum invents Cost of Quality

    SPC, Company Wide Quality Control Participative Problem Solving, Kaizen

    Total Quality Management, Lean Enterprise Baldrige Award, Quality Gurus, Demings 85/15 rule,

    Six Sigma Total Quality

    OEQ IMS, Quality DW

    1980s

    1970s

    1960s

    1990s

    The Quality Control Handbook by Juran, Total quality control by Feigenbaum Management by Objectives

    1950s

    Statistical Quality Control

    1940s

    Hawthorne studies, Design of Experiments Economic control of Quality of Manufactured Product by Shewhart

    1930s

    Acceptance Sampling Control Charts

    1920s

    2000s

  • - 8 -

    - And Related Standards

    1970 1990 2010

    BS5750,UKEN 29001,EU ISO 9001

    ISO 9000QS 9000

    AIAG

    ISA 95:2000

    BS 7750,UKEMS:ISO 14001

    OHSAS 18001

    Pollution Prevention

    QualityQ

    EnvironmentESafetyS

    IntegrationI

    SocialSA

    SA 8000

  • - 9 - 9

    - - can drive Business Results

    Services Differentiated by end-user segmentQua

    lity

    Driv

    ers

    Cus

    tom

    erE

    ncou

    nter Transactional & Relationship Experience

    Service Quality Product Quality

    Bus

    ines

    s R

    esul

    ts

    First Choice Services PullReferrals

    Need DevelopDesignSpecs

    Produce

    GAPS

  • - 10 - 10

    --- Measured in Q Terms

    Services Differentiated by end-user segmentQua

    lity

    Driv

    ers

    Bus

    ines

    s R

    esul

    ts

    CSI CostCompliance

    Defect Rate TraceabilityDFSSCI

    VariabilityFirst Time Right

  • - 11 - 11

    Leading toOne Enterprise Quality (OEQ)

    The New Face of Quality providing strategic competitive differentiation.

    One-dimensional Focus(Local)

    Tran

    sact

    iona

    lD

    ispa

    rate

    Aud

    it D

    riven

    ERP CRM

    MES

    QMS

    PLM

    Multi-dimensional Focus(Global)

    Ana

    lytic

    Inte

    grat

    edC

    ompl

    iant

    ERP CRM

    MES

    QMS

    PLMOEQ

    Integrate

    3600 View

  • - 12 -

    What is One Enterprise Quality (OEQ)?

    2

  • - 13 -

    Contents

    Business Drivers The Road Map

  • - 14 -

    -

    OEQ mirrors the Value Chain!

    Quality Master Data

    SupplierQuality

    Voice ofCustomer

    HR, F&A, KM, FM, R&D, IT

    External Q Compliance

    Corporate Quality

    MES,SCADA,PLCNPD & PLM

    Shop Floor

    DesignQuality

    BuildQuality

    E H S

  • - 15 -

    1

    - with several Components

    Planning

    Corporate

    Objectives and Targets

    Risk ManagementCommunications

    Assessments

    Capability

    Continuous Improvement

    Compliance

    Design Quality

    Document Control

    Relations

    Internal AuditsExternal Audits Supplier Audit

    Industry Specific RegulationsHealth & Safety

    Environment

    LPPDDFSS

    ECR/MCRAPQP

    Specification Control

    Employee Training

    Process Capability

    CAR/SCAR/PAR Lean/Six SigmaNCM

    8D

    ManualsRecords

    ProceduresReports

    Customer Survey

    Complaints Management

    Calibration and testingK.M.

    External CommunicationsC.S.I.

  • - 16 -

    Data ModelProcess Model

    --- integrated together

    SPC /SQCSPC /SQC

    Role Based Presentation ModelParetoPareto RejectsRejectsAndonAndonPoka YokePoka YokeDashboardDashboard WorkflowWorkflow KanoKano

    EFQMEFQM

    Industry Standards & Reference Models

    ISO/TSISO/TS EH&SEH&S COBITCOBITISAISAMESAMESASCORSCORMBNQAMBNQA EFQMEFQM

    Technical Application LayerCRMCRM SRMSRM POINTAPPS

    POINTAPPSPLM

    PLMMESMESERPERPQMSQMS HHDHHD

  • - 17 -

    --- to connect the silos

    QMS

    CRM

    PLMMES

    ERP

    HRMS

    Corporate

    VP Manufacturing

    Plant Manager

    Department Manager

    Supervisor

    Contribution

    Direct Material Cost

    Direct Cost Sales Price

    Profit

    Direct Labor Cost

    Cost Consumption

    Man Method Machine

    OEE#1 OEE #7 OEE #n

    Q A P Q A P

    Revenue

  • - 18 -

    BAM

    Portlets

    Web UI

    BPEL

    Human Task

    Proposed Architecture

    Presentation Layer

    ESB

    PLM CRM

    HRMS

    QMS

    NCM CARSQM AUD

    DOC

    ERP

    MMPP

    OM

    SAP/Oracle

    /.

    Java/Legacy

    /..

    Trading Partners

    B2BPLC

    Operator InterfaceProprietary applicationsSCADA

    ApplicationBarcodeScanner

    HistorianM.E.S.

    OPC Drivers Collectors

    B2MML

  • - 19 -

    The Benefits

  • - 20 -

    1. Analytics through Role Based Visualization

    Workers Satisfaction Index

    Average Contribution per unit product

    Inventory Turns

    Total Rejections YTD

    Production Lead Time

    FlagKey Performance Indicator

    Rejections at Customer EndOverall Equipment Efficiency (Aggregated)FTR

    On Time In Full (OTIF) Delivery

    KPIs Drill down analysis capability Remote information/data access

    0

    50

    100

    150

    200

    250

    300

    350

    RC-6 RC-11 RC-23 RC-14 RC-16 RC-3 RC-2 RC-6 Other 0.0

    0.2

    0.4

    0.6

    0.8

    1.0

    1.2

    Pareto for High Parts Consumption: Product B

  • - 21 -

    2. Vertical Integration

    Cost

    Customer Satisfaction

    Quality ResponsivenessDelivery

    Product A Product B Product C Product D

    Electrical Performance Mechanical Fit Aesthetic Packaging

    Hole Diameter X Pin Size

    Hole ID Size Collar ID

    Process Capability Specification Batch Issue

    Fitment A Fitment B Fitment C

  • - 22 -

    3. Continuous Improvement

    Containment &CAPA Generation

    Define Problem & Identify Team

    Identify Root Cause

    Change Management Implement

    EffectivenessValidation

    MES

    ERMDMS Training

    PLM/PDM HRM Six Sigma DBAnalytics

    AUD K.M.

    MES-Manufacturing Execution System; PLM-Product Lifecycle Management, PDM-Product Data Management, ERM-Enterprise Risk Management, ADU-Audit Management System, ERP-Enterprise Resource Planning, HR-Human Resource management, RMA-Return Material Authorization, DMS- Document Management System, K.M.-Knowledge Management

    MES

    ERP

  • - 23 -

    Faster Response thru Visualization

    OEQ The Takeaways

    Common Language of Quality

    Single Source of Truth for Decisions

    Discovery and Analytics (QI*)

    Holistic Approach to Manage Risks & Compliance

    Self-managed Role-based Capability

    *QI Quality Intelligence

  • - 24 -

    Quality Way of Life @ Cummins

    3

  • - 25 -

    Contents

    Business Drivers The Road Map

  • - 26 -

    Business Drivers

    Intense Competition

    Global Footprint

    Disparate Systems

    Multiple LOBs*

    Rapid Growth

    CompliancePressures

    *LOBs: Lines of business

    Customer Pull

  • - 27 -

    Objective : Ensuring Quality in every step of the process

    To Customer

    Quality in Idea Generation

    Quality Training

    Quality Product

    Established Logistics

    ProcessesInnovative

    Approach to reduce

    Environment Impact

    Quality in Technology

    Consistent supply chain processes

    Ergonomically Designed Fixtures

  • - 28 -

    Through the 10 Practices

    Put the customer first, and provide real value

    Synchronize flows (material,

    physical and information)

    Design quality in every step of the

    process

    Involve people and promote

    teamwork

    Ensure equipment and tools are

    available and capable

    Establish the right

    environment

    Create functional excellence

    Treat preferred suppliers as

    partners

    Follow common problem solving

    techniques

    Use Six Sigma as the primary process

    improvement method

  • - 29 -

    Built into Cummins Business Model

    DEVELOPPRODUCTS

    ANDPROCESSES

    MANAGECUSTOMER

    ORDERS

    MANAGE SUPPLYCHAIN

    MANUFACTUREAND

    ASSEMBLE

    PROVIDESERVICE

    ANDSUPPORT

    MARKET AND SELL PRODUCTS

    VISION, MISSION and VALUES

    Cus

    tom

    er a

    nd B

    usin

    ess

    Req

    uire

    men

    ts

    Bus

    ines

    s R

    esul

    ts a

    nd C

    usto

    mer

    Loy