Fall 2005 Navigator

8/6/2019 Fall 2005 Navigator

1/15

During Dr. W.E d w a r d sDemings life he

received internationalrecognition for his contri-butions in statistics, sam-pling, economics and theimprovement of manage-ment. But, at the begin-ning of a new millenium,can advice given by a manborn in the 19th century

be applied to the 21st cen-tury?

I believe that Dr.Deming would say in hisbasso profundo, Whatnonsense. Of course not!

This is not to say thatDr. Deming would believethat the philosophy andtheory he was teachingwas invalid in the 21st

century. It is just that he would notexpect specific advice given in the1980s to be applicable in the2000s without change or modifica-tion.

Clearly systems for sustainableexcellence are constantly evolvingas technolo-gies, people,industries andunderstandingchange. So

now the ques-tion in yourmind shouldbe, how do youuse this knowl-edge to devel-op an organization for sustainableperformance excellence that adaptsto changing times and needs?

The Omnex IntegratedPerformance Management model is

a systematic approach to perforance management focusing on fundamental management inittives.

1.0 Management Systems

2.0 Customer RelationshipManagement

3.0 Design Excellence

4.0 Operational Excellence

5.0 Business Excellence

6.0 Knowledge Management

The six initiatives can be impmented in parallel or serial stedepending on your needs, timebles and the maturity of yoprocesses and system

2* conducting

effective iso/ts16949 audits

* zero defects indesign

* 05-06 TrainingSchedule

fall 2005

OMNEX

* news fromomnex

navigatornavigator

* release of newppap and spceditions

3

9

12

an integratedmanagement model forsustainable excellenceby Greg Gruska - Senior Consultant, Omnex

continued on

page 5

Greg GruskaSr. Consultant, Omnex

Clearly sys-tems for sus-tainableexcellenceare constantlyevolving...

11

13* leaning the

organization

7* keys to thequality tool box


2/15

The Problem with audits and auditors

The IATF and the automotiveapproach to process auditing haveled many to rethink the processesassociated with Third Party Audits.Many improvements in auditing prac-tices for third party auditors haveresulted because of this emphasis onimproving third party audits from theinitial readiness review, to theprocess based audit plan, to evenwriting up nonconformities.

Similarly, organizations perform-

ing internal audits need to improvetheir overall process for them. ThePresident of a well-known ISO/TS16949:2002 registrar mentioned tome that they could fail every compa-ny that they currently certify toISO/TS 16949:2002 in the area of"internal audits".What then is wrongwith internalaudits?

Auditor compe-tencies for ISO/TS

16949:2002 andISO 9001:2000can be evaluatedusing a competen-cies matrix developed by the IATF.This matrix has broken down auditorcompetencies into 113 different com-petency areas for 31 different activi-ties. A third party registrar evaluat-

ing its auditor base concludedthat there was a 38% defi-ciency in its third party audi-

tors. Omnex did an evaluation of inter-nal auditors and identified a 50% to60% deficiency rate.

The competencies identified by theIATF do not even cover requirementsto understand ISO/TS 16949:2002,Customer Specific Requirements, CoreTools or the auditing process describedin ISO 19011:2002. These auditorcompetencies detail what types ofknowledge and competency auditorsneed to have in readiness reviews andwhen performing Stage II audits.

In Omnex's experience, there aredeficiencies in internal audits of many

straightforward areas such as auditdesign, basic auditor knowledge, non-conformance write ups, customer risk.

After an internal audit is per-formed, does the organization feelthey have understood the business

areas and/or theprocesses toimprove? Or is theinternal audit anoth-er exercise identify-ing the leaves onthe trees but miss-ing the rot in thetree trunk? In otherwords, detaileditems like document

control and lack of training records arewritten up, but issues like losing a cus-tomer due to repeated problemsand/or severe cost issues in new prod-uct launch go undetected?

What is the Root Cause?

The root cause is the quality of

auditors themselves: theknowledge of the auditorsand the processes theauditors use. Many compa-nies are assigning the job

of internal audits to inspec-tors and technicians. Theinternal system auditorneeds to be a business-ori-ented senior managementmember if the audit is tobe successfully performedand the results are to havevalue. So, the first issue ischoosing the right personto conduct an audit.

Second the auditorneeds to have sufficientknowledge. The knowledgecan be absorbed in twoways: the background andskills of the auditor and thetraining the company pro-vides the auditor. As wementioned earlier, back-ground and skills requirethat the right person bechosen as an internal audi-tor. Next, they requires aseries of training eventsconducted over time. Seefigure 1.

Auditor Competencies

The IATF identified 113competencies for thirdparty auditors. 31 activitieswere broken down into twoareasreadiness reviewand performing the audit.The IATF takes for granted

2

conducting effectiveiso/ts 16949:2002auditsadvancedauditingSIMPLE: IMPROVE THE AUDITORS TO IMPROVE AUDITS

by Chad Kymal - Chief Technology Officer, Omnex

Chad KymalCTO, Omnex

continued on page 6

The root cause is thequality of the auditorsthemselves: the knowl-edge of the auditorsand the processes theauditors use.


3/15


4/15

stood as "rework" or as "defects". The focus for designshould be "first pass success in design. What do Zero

Defects require from design? See Figure 2.Zero Defects requires that there be no failures in

meeting cost, quality, or timing targeted during projectlaunch. If need be, cost or budget can be exempted fromthe Zero Defect program during initial launch and then canbe added subsequently so the focus can be on quality andtiming initially.

The concept of poor quality and failures is essential toa Zero Defects program in Design. You cannot improvesomething when it has not been quantified. For theremainder of the article the focus will be on failuresdefined as not meeting dimensional targets and all test

specifications, having no engineering changes, and firstprototypes and first designs that do not go into produc-tion. The Zero Defects in Design Methodology as practicedby Omnex is as follows:

1. Collection of Design Failures/Issues by product family

2. Conducting the Standardized Design and TestDevelopment (See Figure 3)

a. Mistake proofing design functions

b. Verification/Validation Analysis

c. Establishing a Bill of Design

3. Defining a design rules process

4. Completing a Value Stream Map (See Figure 4)

5. Evaluating Over Design/Testing or UnderDesign/Testing Scenarios using Function Mapping

In our opinion, these methodologies need to be adopt-ed by organizations that want to focus on reducing costs,satisfying customers, and becoming product leaders. The

Zero Defects process is not just trying to fix thefailures, it ensures speed, and it also encourages

product leadership due to the focus on functionbased benchmarking.

In the interests of identifying design bestpractices, Figure 5 shows some of the areasthat can be involved.

Omnex offers a workshop called ZeroDefects Using Layered Process Audits. This

course, offered several times in 2005and 2006, is featured on page

10, in our TrainingSchedule, in this edition

of the OmnexNavigator.

4

figure 4: simplifying the product development value stream map

figure 5: design best practices

zero defects in designcontinued from page 3


5/15

5

model for sustainable excellencecontinued from page 1

continued on page 7

Complete transformationoften takes months, insome cases even years;however the results canbe massive and demon-

strable. Provided you havestrong executive levelcommitment, you will beable to achieve measura-ble improvements in rev-enue, quality and costs.To attain sustainableachievements you mustbe prepared for significantorganizational change.

Lets look at the firsttwo initiatives mentioned.

1.0 ManagementSystems

Good organizations possess vision. Greatorganizations work each day to make their visiona reality. Customer expectations have to be cap-tured, understood, and translated into an exe-cutable strategy with well-defined objectives.The organization must ensure that the entireenterprise understands and executes towardthose objectives. Implementing the OmnexManagement System model will allow you toalign corporate vision and objectives with per-sonal objectives, allowing you to quickly and

regularly tune the organization so it can reachthe highest levels of performance.

We develop a strategy that aligns your corpo-rate mission and vision with the needs andexpectations of your customers and other stake-holders and defines your organization's globalobjectives.

Then, Omnex introduces its specially

designed process methodology and tools todevelop and implement processes that will allow

you to meet these global objectivesby creating goals and performancemetrics for all levels, sites and keyindividuals.

We help executive managementdetermine and measure perform-ance metrics necessary to ensurecontinued progress toward yourgoals. This exercise is thenrepeated to allow for the creation

of measurable objectives at thedivisional, regional, site, and per-sonal levels. Finally, we assist youin incorporating these objectivesand measurables into a uniquehuman resources appraisal systemthat will ensure that the entireenterprise is always moving in thesame direction, no matter how far-flung the empire.

the integrated performance management roadmap

1.0 Management Systems


6/15

advanced auditingcontinued from page 2

other key areas of auditor knowl-edge including a basic understand-ing of ISO/TS 16949:2002, CoreTools, basic auditing processknowledge provided in ISO19011:2002, and Customer specif-

ic requirements. Omnex has addedto this matrix and identified anoth-er 26 competencies.

What if a course were designedfor the specific 113 IATF auditingrequirements and the 26 Omnexrequirements? It is our experiencethat most people cannot take infor-mation and turn it into useableknowledge in a three- or five-daycourse. Such knowledge takespractice. This is similar to how agood MBA School asks for workexperience before accepting stu-dents into their program. Similarily,the internal auditor should havethe right work experiencewhetherit is as a member of senior man-agement, in new product develop-ment or through plant floor experi-ence. The first course recommend-ed for someone with little to noISO/TS experience is anUnderstanding ISO/TS16949:2002 class. A few monthslater, they should take an InternalAuditor course. The OmnexInternal Auditor course is designedto test auditor skills using casestudies in ISO/TS 16949:2002. Itincludes over a 100 examples thattest knowledge in auditing. Next,the Internal Auditor course intro-duces the auditor to the auditingprocess based on ISO19011:2002, including the auto-motive approach to process audit-ing. Next, Omnex recommendsthat the internal auditor conductaudits for three to six monthsbefore taking the Lead Auditorcourse.

Omnex Redesign of the Auditor

Courses

Omnex has redesigned itsauditor courses based on the IATF

auditor competencies.When you study Figure 1,

you may ask, Why not ask theinternal auditor to take the morechallenging Advanced Auditorcourse? After all, the InternalAuditor course is already designedto teach most of the competencies

identified by the IATF (91%). Well,all the competencies are refreshedand then tested in the Lead Auditortraining, either by breakouts, in theexam or by using a performanceevaluation. The biggest differencebetween the Internal Auditor andthe Lead Auditor courses is thenumber of competencies that areverified. The Internal Auditorcourse only verifies 50% of thecompetencies in its breakouts,exam and performance evaluation,

while the Lead Auditor course ver-ifies 91% of the competencies.(See table 1 on page 8)

The Lead Auditor course is oneof Omnex's most challengingcourses, but at the same time it isthe course with consistently thehighest student satifaction ratings.The difference between the LeadAuditor and the Advanced Auditorseminars is that the AdvancedAuditor is less focused on teachingindividual competencies. Auditorsshould have been trained in thecompetencies in the Internal orLead Auditor courses beforeattending Advanced Auditor train-ing. The Advanced Auditor seminaris where they get to perform andshow that they have really under-

stood all of the competencies.Advanced Auditor training testsmost of them using real life exam-ples. 10% of them are discussedbut not tested because these com-petencies cannot actually be tested

in a breakout or exam.Advanced Auditor Training

The Advanced Auditor trainingis based on my book, ConductingEffective Process-Based Audits: An

Auditor Handbook for ISO/TS16949:2002, published by PatonPress. The book details all 139competencies identified by Omnexand the IATF. This class videotapesparticipants performing audits,including process audits and then

provides them with feedback. Aveteran lead auditor instructorthen performs and demonstratesan audit using the "automotiveapproach to process auditing.

Auditors will be asked to applytheir skills in readiness review deci-sions, audit planning, interviewingtop management, managementreview, internal audits, and manyother practical settings. On theevening of the second or third day,

each participant will have a feed-back session on their auditingskills.

continued on page 8

figure 1: what makes a great internal auditor?6


7/15

2.0 Customer RelationshipManagement

After the organization's mis-sion, values and objectives havebeen aligned with customerexpectations, you need tounderstand your perceivedstrengths and weaknesses fromyour customer's perspective. In

the Omnex CustomerRelationship initiative, we showyou how to improve and how tobetter manage your customerinteractions by involving theorganization in a series of unique

exercises that determine whatprocesses are affected by cus-tomer expectations, how theseprocesses are performing, and

what improvementsare key to creating asustainable customerrelationship manage-ment effort. Whenthis phase is complet-ed, you will have theskills and processesnecessary to become

and remain a trulycus t omer - cen t r i corganization.

Clearly, there aremany other areas ofthe organization thatwould need to beexamined in order toachieve a truly inte-grated model for sus-tainable excellence.For more informationabout the Operational

Excellence Model, seepage 14. While spacelimitations precludeus from including the

remaining 4 initiatives, call 73761-4940 or contact sales [email protected] for white paper detailing all six itiatives in detail.

Mr. Gruska, a Fellow of the AmericSociety for Quality (ASQ), is presently VP of Product Development for OmSystems and a principal consultant in pformance excellence and Six SigMaster Black Belt for Omnex.

Mr. Gruska directed and was the primresource for the development and inimplementations of ComprehenProcess Control Planning ((CP)2). Gruska is an active/writing member ofQS-MSA and QS-SPC Manual subcomtees of the American Automotive ind

try's Supplier Quality Requirements TForce which is part of the internatiotask force governing ISO/TS 16949.

Mr. Gruska has advanced degreemathematics and engineering from University of Detroit, MSU and WayState University. He was the DemMemorial Lecturer at the Sheffield HalUniversity for the year 2000. He is an Acertified Quality Engineer, a licenProfessional Engineer (CA - Quality) awas a member of the Board of Examinof and Judge for the Michigan QuaLeadership Award (1994-2005). He canreached at [email protected].

model for sustainable excellencecontinued from page 5

2.0 customer relationship management

Don't you just love being in thespotlight? Middle management andquality professionals are blamed forproblems with their products andservices but are, in most cases, notgiven the tools to fix them. "Can't youuse what you have available now?Use ExcelTM or MS WordTM for therequired documentation," cost con-science executives demand. Won'twork, not made for the job. It's likeusing a hammer to unscrew a screw.

Lets face it, top management hasa hard time spending for quality sys-tems because in the past there waseither no visible short-term return onthe investment, the system pur-chased ended up on the shelf andnobody used it, or it only addressedone area of the quality function.These elements make it hard to tiethe financial and non-financial aspectsof quality together. Aside from somereports and other paperwork and continued on page 12

keys to the quality tool boxAND THE SOFTWARE TO TAKE YOU THERE

by Don Cherry, Director of Sales and Marketing, Omnex Systems

Don CherryDir. Sales & Mktg.

7


8/15

advanced auditingcontinued from page 6

Business Methods and Tools Knowledge

The auditor needs to supplementhis/her knowledge with two othercourses or topics, like the BusinessOperating System (Quality OperatingSystem) for managing metrics andbusiness practices; or CustomerSpecific Requirements and CoreTools.

What is Missing and How to improve

Skills

Auditors need to be sequentiallyexposed to new knowledge and skills.On one hand there are auditing skills,and on the other there is the knowl-edge of business methods and tools.See Figure 1.

The management representativeand/or audit manager should be edu-cated in how to choose good auditorsand how to design a good audit sys-tem. Are readiness reviews per-formed in your organization before

the internal audit? Should a readinessreview be conducted each time a sys-tem audit is performed? How muchtime should be allocated to systemaudits? Who should be present in anopening meeting and a closing meet-ing? The management representativeand internal audit system should bedesigned to take into account thesequestions.

Developing skilled internal audi-tors is important to the business. It istime organizations got the more out

of the internal audits they perform.

Omnex will be offering anAdvanced Auditor Training course onNovember 3-4, 2005 in Ann Arbor,Michigan and November 11-12 in SanJose, California. The seminar is based

on Chad Kymal's new book,Conducting Effective Process- Based

Audits: An Auditor Handbook forISO/TS 16949:2002.

Chad Kymal is an international trainer andconsultant and CTO of Omnex Inc. He hasrecently published a book, The ISO/TS16949:2002 Implementation Guide, avail-able through Paton Press. Chad's interestsinclude work with large corporations indesigning effective Business Management

Systems and getting value from implement-ing effective business strategies. He hasserved on the Malcolm Baldrige Board ofExaminers and as an RABQSA-certified leadauditor. He has a Bachelor's degree inMechanical Engineering from GeneralMotors Institute, a Master's degree inIndustrial and Operations Engineering fromthe University of Michigan, and an MBAfrom the University of Michigan. He can bereached at [email protected].

If you havent already, you will want tocheck out the completely re-vampedOmnex.com website. In the new web-

site, you will find the Omnex Resource Center(http://www.omnex.com/email-rc.htm): a no-cost section of our website where memberscan read industry articles, watch recordedwebinars, and retrieve the latest copy of theNavigator. In addition to all of the new con-tent, you will find that the new site is easier tonavigate and better organized. During the endof the year, we encourage you to celebrate ourgrand re-opening by paying a visit.

new look and content forwebsiteIN SEPTEMBER, WE RE-DESIGNED OUR WEBSITE AND ADDED TO OUR

RESOURCE CENTER

8

Training Course Competencies Trained Verification of

Performance

Internal Auditor 91% (126 competencies) 50% mostly V1 verification

Lead Auditor 100% (139 competencies) 90% (50% V1)

Advanced Auditor 10% Trained (14 competen-

cies)

100% Tested (mostly V2)

Core tools Understanding

and Auditing

100% Core Tools taught

and tested

Mostly V1

Table 1: Auditor Competencies and Training


9/15

trainingtraining

OMNEX

ISO 9001:2000 forthe Service SectorUnderstanding andImplementing ISO9001:2000

November 14-15, 2005December 5-6, 2005May 1-2, 2006

Lead AuditorTraining for

ISO 9001:2000November 7-11, 2005December 12-16, 2005January 23-27, 2006February 20-24, 2006February 20-24, 2006 (San Jose)March 13-17, 2006April 24-28, 2006May 15-19, 2006June 12-16, 2006

Internal AuditorTraining for ISO

9001:2000November 7-9, 2005December 5-7, 2005January 23-25, 2006February 6-8, 2006February 15-17, 2006 (San Jose)March 6-8, 2006April 3-5, 2006May 8-10, 2006June 12-14, 2006

ISO/TS 16949:2002

for Automotive,Semiconductor and HiTech IndustriesUnderstanding,Documentation andImplementation of ISO/TS16949:2002 (SecondEdition)November 14-16, 2005December 5-7, 2005February 6-8, 2006June 7-9, 2006

ISO 9001:2000 Lead AuditorTraining for theAutomotiveSector (ISO/TS16949:2002)

November 7-11, 2005December 12-16, 2005January 23-27, 2006February 20-24, 2006February 20-24, 2006 (San Jose)March 13-17, 2006April 24-28, 2006May 15-19, 2006June 12-16, 2006

ISO 9001:2000 Internal

Auditor Training for theAutomotiveSector (ISO/TS16949:2002)

November 7-9, 2005December 5-7, 2005January 23-25, 2006February 6-8, 2006February 15-17, 2006 (San Jose)March 6-8, 2006April 3-5, 2006May 8-10, 2006June 12-14, 2006

Customer SpecificRequirements and CoreTools - Effect on ProcessApproach To AuditingNovember 10, 2005December 8, 2005

January 26, 2006February 9, 2006March 9, 2006April 6, 2006May 11, 2006June 15, 2006

Advanced AuditorTraining for ISO9001:2000 andISO/TS 16949:2002November 3-4, 2005November 9-10, 2005 (San Jose)January 30-31, 2006February 13-14, 2006 (San Jose)April 10-11, 2006

ISO 14001:2004 forEnvironmentalManagementInternal Auditor Training foISO 14001:2004 withUnderstanding, Documentiand ImplementingNovember 9-11, 2005 (San Jose)

November 14-16, 2005December 12-14, 2005January 30-February 1, 2006March 6-8, 2006May 8-10, 2006

Lead AuditorTraining for ISO14001:2004February 20-24, 2006April 24-28, 2006June 12-16, 2006

ISO 13485:2003 for

Medical DevicesUnderstanding andImplementing ISO13485:2003November 7-8, 2005February 6-7, 2006April 6-7, 2006June 7-9, 2006

Internal AuditorTraining for ISO13485:2003November 17-19, 2005 (San Francisco)December 5-7, 2005

January 23-25, 2006March 6-8, 2006May 8-10, 2006

05-06US schedule

november-june

Training Schedule is subject to course load requirements; dates may vary.

All courses below are offered from our headquarters in Ann Arbor, Michigan except where specified otherwise.

9

>iso-based training

NEW!

9

NEW!

NEW


10/15

OHSAS 18001Integrating OHSAS18001, ISO/TS

16949:2002, ISO 14000December 15-16, 2005

OHSAS 18001 OverviewNovember 28, 2005February 13, 2006May 3, 2006

Integrated ISO 9001,ISO/TS 16949, ISO14001, and OHSAS18001 Lead Auditor

TrainingJanuary 23-27, 2006June 12-16, 2006

QOSQOS Implementationand Improvement forManufacturing orServiceNovember 1-2, 2005January 19-20, 2006March 30-31, 2006May 29-30, 2006

Layered ProcessAuditingZero Defects

using LayeredProcess AuditsNovember 7-8, 2005 (San Jose)November 10-11, 2005December 5-6, 2005March 20-21, 2006June 15-16, 2006

Automotive /Production Core ToolsTrainingCore Tools Training

Take as one course or just take a segment: Day 1: APQP/DFMEA

Day 2: MSA

Day 3: SPC

Day 4: FMEA/Control Plan

Day 5: PPAP

February 13-17, 2006May 15-19, 2006June 19-23, 2006 (San Jose)

APQP ProductWorkshopIncludes Overview, Program Management,DFMEA, DVP&R and Risk AnalysisNovember 22-23, 2005 (San Jose)March 13-14, 2006

APQP ManufacturingWorkshopIncludes Process Flow, PFMEA, Control Planand PPAPMarch 15-17, 2006

Statistical ProcessControl (SPC),Second Edition

WorkshopNovember 28-29, 2005January 17-18, 2006March 2-3, 2006April 12-13, 2006

Initial Product ApprovalProcessNovember 8, 2005 (San Jose)

Team Problem SolvingTeam Problem Solving

March 22-23, 2006May 1-2, 2006June 1-2, 2006

Software TrainingEnterprise-wide QualityManagement SoftwareDecember 8, 2005

Measurement SystemsAnalysis (MSA) Using

SoftwareDecember 1-2, 1005June 15-16, 2006

10

trainingtraining

OMNEX

Training Schedule is subject to course load requirements; dates may vary.

All courses below are offered from our headquarters in Ann Arbor, Michigan except where specified otherwise.

>other methologies &core tools training

NEW!

05-06US schedule

november-june

10

NEW!


11/15

India

Omnex opened its new India headquarters in Chennai.With space of over 10,000 sqft., this state-of-the-art officebuilding is situated in the IT corridor in Chennai and willhost our group companies' operations.

Omnex India successfully conducted three LeadAuditor training sessions for ISO 14001:2004 in variousparts of the country. The office is currently running the 3rdset of Black Belt training sessions in India and the 8th batchof Green Belt training sessions as public enrollment pro-grams. The well-received weekend training sessions for theabove subjects are going currently active.

Omnex India has landed a host of new clients duringthis period, especially in Lean/Six Sigma practices. These

clients include Wipro Fluids Ltd., Sigma Group companies,Cooper Bussman India Ltd., Hanil Lear India Ltd., ShinhanPlasto Ltd., Phoenix Lamps Ltd., Shanti Gears Ltd., HwashinAutomotive, Ortel Communications and Bundy India. Fromthe garment industry, the office is currently implementingLean/Six Sigma for Bodyline SriLanka among others.

Specific improvement projects in line with designexcellence and operational excellence are currently under-way at major Tier 1 and Tier 2 automotive companies inIndia, such as Gala Precision and Springs Ltd., part of theGala group, and Class India Ltd., to name a few.

Mexico

In the looking beyond the borders of the MexicanMarket, Omnex-GMS is in the process of closing severalstrategic alliances. Since August, 2005, Omnex has heldsome training courses for ISO 14001 and ISO 9001 atLloyd's Germanschier in Lima, Peru. An ISO 14001:2004training course has been given for those who work in themining and electronics industries. These alliances willstrengthen our trademark in Mexico and South America.

We are proud to say that Omnex-GMS has had successmaking inroads into education and the government, offer-

ing consulting andtraining servicesthat develop anddocument theadministrative sys-

tems using ISO9001. This type oftraining has beenoffered in PublicSchools andUniversities, here inthe city ofG u a d a l a j a r a ,Jalisco.

We continueexpanding and sat-isfying our client

base in the Latin American market, and starting iSeptember we will begin offering Training Courses in thBalance Score Card methodology, which are will btaught by Ing. Arturo Padilla. He has a wide experiencin implementing, consulting and training this methodology.

Thailand

Omnex Thailand, our Asian headquarters, continues tsupport major automotive and engineering clients iThailand. During this past quarter, the Thai office has several contracts with our clients who have operations iMalaysia, Philippines and Singapore.

The ten new projects delivered this past quarteinclude ISO 9001:2000 and ISO/TS16949:2002 engagements with Siam Metal Technology Co., Ltd. and PichIndustrial Works Co., Ltd.

Omnex Thailand also celebrated the successful implementations of ISO 9001:2000 and ISO/TS 16949:200with Coats Thread (Thailand) and Toyoda Machine Work

(Thailand).

We offered semiconductor-focused training at 1sSilicon Malaysia, Philips Semiconductor Malaysia, anSystem on Silicon at Singapore, to name a few. Wreceived high scores in the course tutoring and technicacontent. We have just concluded another set of trainingincluding ISO/TS16949 Lead Auditor training, at JonhsoElectric, Hong Kong.

USA

The AmericaSociety for Quality(ASQs) Automotiv

Division awarded thQuality Professional othe Year Award tChad Kymal, CEO oOmnex, Inc. on Jun14, 2005 at the HenrFord EstateDearborn, Michigan.

Chad said, "Thaward is a greahonor for me, anreflects my abidininterest in continuaimprovement and rethinking methods o

implementation."

news from omnexSHORT FEATURES ON HAPPENINGS IN OMNEX

OFFICES WORLDWIDE

Chad Kymal receives Quality

Professional of the Year Award

from Ann O'Neill of Ford Customer

Service, who was the key note

speaker for the Recognition Dinner.

Omnex-GMS training in Latin America has been

expanding in the past quarter.

11


12/15

Although no official datehas been announced, thePPAP Fourth Edition will

likely be released in January 2006.Organizations registered to ISO/TS16949:2002 whosupply to the USBig Three will havethree months toimplement thechanges after the

release date.Information presented at the

2005 Autotech Conference indi-cates that the PPAP Fourth Editionwill have 10 major changes,including revisions to reflect tech-niques found in the AutomotiveProcess Approach. In addition,there are to be several significantchanges to the customer submis-sion requirements and PSW forms.These changes could have a majoreffect on an organizations PPAPpractices.

Ford, GM, and DCX released

the Second Edition of their SPCReference manual in August 2005.The foreword of the new manualstates, This second edition was pre-pared to recognize the needs and

changes withinthe automotiveindustry in SPCt e c h n i q u e sthat haveevolved since

the originalmanual waspublished in 1991. There are somemajor changes between the first edi-tion and the second edition of theSPC manual.

Gregory Gruska, who hasworked on the SPC writing team,says, The second edition of the SPCmanual takes the user more into thereality of manufacturing where spe-cial conditions affecting processesare often found.

SPC 2nd edition addressesindustry misapplication of SPC and

helps people with the useof the correct SPC chart,

calculation of control lim-its, calculation of capabil-ity, sampling and samplesize. Overall, the newSPC manual considersthe strategy for processcontrolhow organiza-tions can best controltheir processes.

During the fourthquarter of 2005, Omnexis offering two specialpaid webinars on thechanges to PPAP andSPC. These webinars willget participants up tospeed on some of the keychanges found in thedocuments, and sharedby AIAG at the roll-out.Recordings will also beavailable for purchase.Write our TrainingManager, Becky Allistonat [email protected] pricing and dates, orvisit our registration formon omnex.com.

The second edition ofthe SPC manual takes theuser more into the realityof manufacturing...

release of new ppapand spc editionsTHE BIG THREE RELEASE NEW CORE TOOLS DOCUMENTS

charts that are shown in weeklymanagement review meeting,tying real value to the systemsproved difficult. Knowledge andinformation regarding field fail-ures, returns, re-work, scrap andwarranty issues are compiled andstored in different locations andcontrolled by different people inthe organization. There is also theproblem of using this informationto identify how the problemoccurred, what process caused it,what tools are being used toaddress it, and where the organi-

zation should focus itscontinuous improve-ment efforts so it won't

happen again.

"Okay, if I'm going to do thejob, give me the right tools!"

Right, thats what Omnex

Systems does. Okay, so how canwe help you? In the beginning wetook feedback from our customerswho told us that they needed not

just a document control system,or an APQP system or an auditsystem, but a suite of integratedtools that will allow them to trackthe quality issues that they faceeveryday. Make it easy they toldus, put it on the web, give me oneplace where all my quality infor-mation can be made available,

and let me choose who can seeand use it. Done. The answer isthe EwQMS software suite. Weare moving forward into version

2 of the suite, and as we do, eachmodule is becoming more power-ful, more flexible and more easilyintegrateable with other systemsyou already have in place. Plus,we are going to complete aCustomer Relationship Manager(CRM) soon. Join these world-class organizations who haveimplemented EwQMS: Getrag, Hi-Lex, Mercedes Benz, TRWAutomotive and many others. Soif you're interested in seeing thesolution, give us a call at (734)668-1000 or visithttp://www.omnexsystems.comand we will be glad to show you.

12

keys to the quality tool boxcontinued from page 7


13/15

L

ean was introduced in thebusiness world with theadvent of the book the

"Machine that Changed the World"written by James Womack of MITin 1990. Organizations in the1980s aggressively adopted leantechniques to remove waste (seeFigure 1). By using a combinationof techniques borrowed from theToyota Production Systems and aunique American twist, US com-panies gave birth to the five dayKaizen, PICOS, or the LeanWorkshop. This kind of workshophelped organizations make doubledigit improvements in floor space,productivity, lead time, and inven-tory. The results were tremen-dous, and companies all over theworld soon adopted this approach.

The Lean Workshop had atremendous impact on organiza-tions and management. The ideabehind it was to take the improve-ment made in one area of the fac-tory and clone this successthroughout the rest of the factory.

However, there have been twoconcerns with this approach: canthe savings made in a five dayworkshop be sustainable, and canisolated changes translate intobottom line savings?

Figure 2 shows that inventoryrises to the level of unproductivityin an organization. Issues such asequipment breakdown, poor qual-ity, bad setups, absenteeism andthe other evils affect the level of

inventory in an organization. Inthe end, Lean slowly strips awaythe inventory and thus exposesthe problems within the manufac-turing process. These short- andlong-term problems have to besolved for the inventory to stay atlower levels.

The questions were askedthen, and some of the same ques-tions are being asked again today:Can an organization just remove

inventory and head count andimprove without structurally

changing anything else?

Some inefficiencies may accu-mulate over time, but if overallstructural improvements do nottake place in setup time, uptime,quality, etc., then the improve-ments made may not be sustain-able.

The second concern has beenthat if only one part of the factorychanges, can it result in overallsavings? In other words, sincemanufacturing is an interconnect-ed system of customers and sup-pliers, one department feedsanother; do inventory savings orthroughput improvement in onedepartment make an overallimpact to the bottom line?

To alleviate this concern, apurely American toolthe "ValueStream Map"has beenused with great success.The Omnex approach

takes into account time,inventory and other keyfactors. The valuestream studies the over-all process from thebeginning to the endand strategically tacklesimprovements that canbring the most benefitto the plant and the cus-tomer. All the tech-niques of the five day

workshop are still valid, but theyare used in a more sustaining,longer term process.

Typically, changing a factoryfrom a traditional layout to a leanlayout can take from six monthsto a year.

Integrating the workshop and value

stream approach

The workshop and the valuestream map can be integratedeffectively. Conduct an upfrontassessment using a value streammap. Use the map to identify proj-ects that can be conducted in afive day workshop. The five dayworkshop is a good way to get topmanagement buy-in and changemindsets about what is possible.

With an initial success, mapout an overall lean strategy withtop management. Plan on asequence of Lean workshops toquickly change the organization.Identify the structural barrierssuch as maintenance, setup

reduction, quality issues etc. foroverall lean improvements. Planan overall improvement project forremoving structural barriers suchas setup time reduction, mainte-nance issues, or pull systems.

Omnex has identified a sixmonth to 24 month implementa-tion plan structured to take an

leaning the organization

figure 1 - the seven wastes

figure 2 - rocks of unproductivity

13

continued on page 14


14/15

14

leaning the organizationcontinued from page 13

315 E. Eisenhower Parkway

Suite 110

Ann Arbor, MI 48108

Phone: 734/761.4940

Fax: 734/761.4966

Email: [email protected]

Web: www.omnex.com

DRIVING WORLDWIDE BUSINESS EXCELLENCE

14

organization from its present state tothat of a lean organization. We do thissequentially, implementing ErrorProofing, SMED, 5S, Supermarket Pullsystems, TPM/OEE and other leantools. Omnex has created 20 days of

workshops taught just-in-time beforeimplementation begins. Omnex canimplement this at a corporate level,plant level, or a process family level.See the Omnex Lean Model in Figure 3.

Lean Six Sigma

The final approach is the LeanSix Sigma Approach. In this area,Omnex has successfully integratedLean and Six Sigma into the Define,Measure, Analyze, Improve, andControl phases. Both approaches are

synergistic; Lean focuses onthroughput and lead times while SixSigma focuses on statistical control.

The Lean/Six Sigma methodolo-gy allows the Six Sigma infrastruc-ture of Champions, Black Belts, andGreen Belts to be applied to reduc-ing waste, reducing errors, andincreasing speed and throughput.Management identifies projects thatare then assigned to Black Belts tosolve systematically.

Omnex recommends thismethodology to organizations thateither started out adopting Lean orstarted out adopting Six Sigma.

Both techniquescan only go so far,but when an organ-ization has reachedthe point of dimin-ishing returns in

one technique, it istime to adoptLean/Six Sigma.The combination ofboth tools providessignificant opportu-nities for solvingkey manufacturingand non-manufac-turing issues. Thisis key toO p e r a t i o n a lExcellence (See

Figure 4).O p e r a t i o n a lExcellence is one ofthe cornerstones ofthe OmnexI n t e g r a t e dM a n a g e m e n tModel. For more onthe model, see thearticle on page 1.Omnex can imple-ment this at thecorporate level,

plant level or aprocess or familylevel. See theOmnex Lean Model(Figure 3). figure 4: operational excellence model

figure 3 - omnex lean model


15/15

Documents

Fall 2005 Navigator