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.

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The following Strategic Initiatives of MESA International are associated with

this presentation:

Quality & Regulatory Compliance

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• 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

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Paving the way for a Quality Revolution

Integrated ‘Q’ Principle

The Changing Face of Quality

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Contents

• Business Drivers• The Road Map

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The Changing Face of Quality

1

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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, Deming’s 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

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- 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

EnvironmentE

SafetyS

IntegrationI

SocialSA

SA 8000

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- - 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

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--- 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

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Leading to‘One 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

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What is One Enterprise Quality (OEQ)?

2

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Contents

• Business Drivers• The Road Map

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-

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

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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.

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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 POINT

APPSPOINTAPPSPLMPLMMESMESERPERPQMSQMS HHDHHD

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--- 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

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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

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The Benefits

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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

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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

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3. Continuous Improvement

Containment &CAPA Generation

Define Problem & Identify Team

Identify Root Cause

Change Management Implement Effectiveness

Validation

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

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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

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Quality Way of Life @ Cummins

3

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Contents

• Business Drivers• The Road Map

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Business Drivers

Intense Competition

Global Footprint

Disparate Systems

Multiple LOB’s*

Rapid Growth

CompliancePressures

*LOB’s: Lines of business

Customer Pull

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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

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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

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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

alty

BUSINESS SUPPORT PROCESSES

LEADERSHIP

3 Corporate Objectives > 5 Strategic Principles >Integrated Goal Trees for each BU

Bus

ines

s R

esul

ts a

nd C

usto

mer

Loy

alty

COS FUNCTIONS

ServiceMarketing & Sales

Technical Mfg.Supply Chain

Quality

IT FinanceHRPurchasing

DEVELOPPRODUCTS

ANDPROCESSES

DEVELOPPRODUCTS

ANDPROCESSES

MANAGECUSTOMER

ORDERS

MANAGECUSTOMER

ORDERS

MANAGE SUPPLYCHAIN

MANAGE SUPPLYCHAIN

MANUFACTUREAND

ASSEMBLE

MANUFACTUREAND

ASSEMBLE

PROVIDESERVICE

ANDSUPPORT

PROVIDESERVICE

ANDSUPPORT

MARKET AND SELL PRODUCTS

MARKET AND SELL PRODUCTS

VISION, MISSION and VALUES

Cus

tom

er a

nd B

usin

ess

Req

uire

men

tsC

usto

mer

and

Bus

ines

s R

equi

rem

ents

Bus

ines

s R

esul

ts a

nd C

usto

mer

Loy

alty

Bus

ines

s R

esul

ts a

nd C

usto

mer

Loy

alty

BUSINESS SUPPORT PROCESSESBUSINESS SUPPORT PROCESSES

LEADERSHIP

3 Corporate Objectives > 5 Strategic Principles >Integrated Goal Trees for each BU

LEADERSHIP

3 Corporate Objectives > 5 Strategic Principles >Integrated Goal Trees for each BU

Bus

ines

s R

esul

ts a

nd C

usto

mer

Loy

alty

Bus

ines

s R

esul

ts a

nd C

usto

mer

Loy

alty

COS FUNCTIONS

ServiceMarketing & Sales

Technical Mfg.Supply Chain

Quality

IT FinanceHRPurchasing

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Drawing Common Elements from multiple standards

ISO 9001 ISO 14001

OHSAS 18001 TS 16949 MBNQA ISA S95MESASCOR

• CAR/SCAR/PAR

• Audit Management

• Document Control

• Supplier and Customer Quality

• Management Responsibility

• Measurement, Analysis, &Improvement • Cont. Improvement

• Enterprise Risk Management

• Change Management

• NC Management

Cus

tom

er A

nd

Bus

ines

s R

equi

rem

ents

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Approach & Journey so far

Define Future State & Business ModelDefine Quality Strategy

Align Corporate Quality & IT with ManagementIdentify Common Elements & Processes

Select Product & Implementation PartnerConfigure to adopt Best Practices

Manage Internal Changes

Implement : Pilot sites

Roll Out in other Sites

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Questions ?

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Acronyms ADU-Audit Management System,AIAG – Automotive Industry Action GroupAPQP – Advanced Product Quality PlanningB2MML – Business to Manufacturing Markup

LanguageBAM – Business Activity MonitoringBPEL – Business Process Execution LanguageC.I. – Continuous ImprovementCSI – Customer Satisfaction IndexDFSS – Design for Six SigmaDMS - Document Management System,DW – Data WarehouseECR – Engineering Change RequestEHS – Environment Health & SafetyERM - Enterprise Risk ManagementERP - Enterprise Resource PlanningESB – Enterprise Service BusF&A – Financial And AccountingHHD – Handheld DevicesHRMS – Human Resource Management System

ISA – Instrumentation, Systems and Automation IT – Information TechnologyK.M.- Knowledge ManagementLPPD – Lean Product and Process DevelopmentMCR – Manufacturing Change RequestMES - Manufacturing Execution SystemMM – Material ManagementNPD – New Product DevelopmentOEE – Overall Equipment EfficiencyOEQ - One Enterprise QualityPDM - Product Data ManagementPLM - Product Lifecycle ManagementPP – Production PlanningQ, A & P – Quality, Availability and PerformanceQ.I. – Quality IntelligenceQMS – Quality Management SystemRMA - Return Material AuthorizationSPC – Statistical Process ControlUI – User Interface