PowerPoint Presentation
Quality and CIP2015IPO Quality CharterTo promote and enhance
system wide Velocity focused on global optimization using the
5Vs.MetricsCOPQ 1.5% of SalesVelocity?In basic terms, Velocity is
speed with direction.More importantly, it is the rate of change.Two
Questions ariseWhat is to be changed?What is the rate of
change?What is to be changed?Function of the Quality
organizationPre-1970100% inspectionTime/Labor consumingIneffective
100% human inspection of parts is only about 80% effective. Quality
Handbook, Sixth Edition: The Complete Guide to Performance
Excellence
No global standardsInspecting Quality into the productsWhat
needs to be changed?Transitional Quality organizations (present
state)Labor intensiveReactive vs. ProactiveProduct vs.
ProcessResults vs. ActionsQuality control vs. Quality Assurance
Rate of ChangeThe Progress of changeIts not the progress I mind,
its the change I dont like. Mark TwainProgress is impossible
without change, and those who cannot change their minds cannot
change anything George Bernard ShawThe progress of change is
directly related to the urgency for change.The Process of
changeStep 1: Create UrgencyStep 2: Form a Powerful CoalitionStep
3: Create a Vision for ChangeStep 4: Communicate the VisionStep 5:
Remove ObstaclesStep 6: Create Short-Term WinsStep 7: Build on the
ChangeStep 8: Anchor the Changes in Corporate Culture
A new Vision, VelocityQuality Assurance must be seen as an
overarching organizational activity, not as a departmental
function.The organizations goals should be focused at increasing
the rate of change (Velocity)Change must be defined by global
parameters (CIP)A new Vision, VelocityCritical Path FocusThe
critical path is the time from order acquisition to receipt of
payment.Increasing the rate of change requires reducing the
critical path timeline.You cant manage what you cant measure. W.
Edwards Deming
What are the 5Vs?Verification and ValidationVariationValue
AddVisual ManagementVendor Management
Verification and ValidationValidation is the process of checking
whether the specification captures the customer's needsFront end
document review, contract analysis, design review, etc.Verification
is the process of checking that the product meets the
specification.Dimensional and visual inspection, NDE, chemical and
physical testing, etc.
VariationThe key element in achieving Operational Excellence is
to identify sources of variation that affect a process, product or
service. Six Sigma, as a methodology, has at its roots a focus on
variation.
VariationA fault in the interpretation of observations, seen
everywhere, is to suppose that every event (defect, mistake,
accident) is attributable to someone (usually the nearest at hand),
or is related to some special event. The fact is that most troubles
with service and production lie in the system. We shall speak of
faults of the system as common causes of trouble, and faults from
fleeting events as special causes. W. Edwards DemingCIP and
Lean(not the same)Continuous Improvement Process CIP zeros in on
culture (organizational maturity) and stimulates its development.
CIP focuses on the people and the success of the organizational
team requiring engagement, commitment and trust through the
continual improvement and refinement of the organizations
processes.LeanLean is described as a production practice that
focuses on the elimination of wasteful elements in all process to
increase the value to the customer. Lean is actually a by-product
of CIP.
Value Add
AreasIncreaseReduceImproveCreateRevenueCostProductivityStrategyProfitTime/EffortProcessesSystemGrowthComplaintsService
ProcessMarket
shareRiskInformationBusinessRetentionTurnoverMoraleProductROA/ROIConflictImagePartnershipsEfficiencyPaperworkReputationWorking
CapitalSkills VisibilityQualityEmployee EngagementLoyalty7 Low Cost
Thinking Questions(Rules for CIP)Does the change reduce the
critical path time-lineDoes the change promote or enhance the
Global OptimaDoes the change simplify decision making (visual
tools)Does the change improve workplace safetyDoes the change
promote employee engagement and ownershipIs the change good for all
stakeholdersDoes the change add value for the customer (internal or
external)Visual ManagementVisual management. Whether it is
scoreboards, production control charts, team communication boards,
or other types, visual management displays keeps vital information
flowing between lean management and employees, as well as between
individuals, cells and departments. Goal-setting and performance
tracking. Visual displays show what is expected and how the
organization is performing against those goals. These display
boards are critical to success because they show trends in key
performance indicators.Idea sharing and team communication. Kaizen
improvements achieve the best results when performed as a
team-based endeavor; communication boards serve a useful role in
getting everyone involved in sharing ideas, identifying root
causes, and brainstorming countermeasures.Report kaizen results and
awards. Visual displays are also beneficial for presenting results
and recognizing achievements among a kaizen event team. Tracking
boards and visual management tools are especially important in
multi-shift operations where groups rarely have the opportunity to
meet face-to-face.
Vendor ManagementVendor management is a discipline that enables
organizations to control costs, drive service excellence and
mitigate risks to gain increased value from their vendors
throughout the relationships life cycle.Vendor ManagementCost
ControlScrap and ReworkTransportationRe-inspection and
testDocumentationService excellenceAdditional value add
servicesShort lead timesVertical integrationFavorable
termsConsignmentRisk MitigationISO certificationActive 6S, Lean or
CIPUse of problem solving toolsCollaborative trainingProcess
controlsGlobal Approach to Local IssuesMap the critical path at all
sites (Local)Flush all CIP projects using the 7 low cost thinking
rules and critical path (Local)Gap analysis of the 5Vs
(Team)Develop local action plan with site (MS Project)
(Team)Process basedManageable, measurable, achievable
(Smart)Coordinate with global resources (Project, Manufacturing,
Quality, Supply Chain)
Global Approach to Local IssuesLocal GMs must own the project
planLocal Managers must champion the projectsLocal resources must
manage the processCorporate resources
must:TrainSupportMentorCoordinateFacilitateParticipate
