Quality Management System and the Business Plan

Quality Management Quality Management SystemSystem

and the Business Planand the Business PlanKathleen BetzKathleen Betz

MERC Process and Product QualityMERC Process and Product Quality

ETM 627 Fall 2008 Slide ETM 627 Fall 2008 Slide 22

Topics for DiscussionTopics for Discussion

Quality Management SystemQuality Management System Business Plan to Drive ChangeBusiness Plan to Drive Change Process Improvement TeamsProcess Improvement Teams Balanced ScorecardBalanced Scorecard Basic Quality ToolsBasic Quality Tools Two Real life examples of Production Two Real life examples of Production

Problem Solving TeamsProblem Solving Teams


QMS – Why?QMS – Why?

common processes/conformitycommon processes/conformity reduce variationreduce variation eliminate waste and reworkeliminate waste and rework prevent defectsprevent defects find opportunities for error-proofingfind opportunities for error-proofing improve productivityimprove productivity increase efficiency and effectivenessincrease efficiency and effectiveness drive innovationdrive innovation


QMS – Why?QMS – Why?

According to the ASQ online glossaryAccording to the ASQ online glossary (http://www.asq.org/glossary/q.html)(http://www.asq.org/glossary/q.html)

Quality management system (QMS):Quality management system (QMS): A formalized system that A formalized system that documents the structure, responsibilities and procedures required to documents the structure, responsibilities and procedures required to achieve effective quality management.achieve effective quality management.

Quality management (QM):Quality management (QM): The application of a quality The application of a quality management system in managing a process to achieve maximum management system in managing a process to achieve maximum customer satisfaction at the lowest overall cost to the organization customer satisfaction at the lowest overall cost to the organization while continuing to improve the process.while continuing to improve the process.


QMS – Why?QMS – Why? A QMS can:A QMS can:

Improve competitive positionImprove competitive position Meet customers’ requirements to meet and maintain Meet customers’ requirements to meet and maintain

quality standards:quality standards: QS-9000:QS-9000: Harmonized quality management system requirements Harmonized quality management system requirements

developed by the Big Three automakers for the automotive sector. Replaced developed by the Big Three automakers for the automotive sector. Replaced by Technical Specification 16949 effective Dec. 15, 2006 (by Technical Specification 16949 effective Dec. 15, 2006 (http://www.asq.org/glossary/q.htmlhttp://www.asq.org/glossary/q.html))

ISO 14000:ISO 14000: An environmental management standard related to what An environmental management standard related to what organizations do that affects their physical surroundings.organizations do that affects their physical surroundings.

Ensure processes do not pass on defects to internal Ensure processes do not pass on defects to internal customers (ie. From one process to the next). customers (ie. From one process to the next).

Ensure work products are delivered with zero defects. Ensure work products are delivered with zero defects.

http://www.asq.org/glossary/q.html


GM Drive for QualityGM Drive for QualityWhy ??Why ??

Customer enthusiasmCustomer enthusiasm Industry PerformanceIndustry Performance Business PlanBusiness Plan Plan to WinPlan to Win Common ProcessesCommon Processes Quality PlanQuality Plan


GM Drive for QualityGM Drive for QualityWhy?Why?

Data protected


A New DriverA New Driver

Rick Wagoner took over the ‘wheel’ Rick Wagoner took over the ‘wheel’ of GM in 1998of GM in 1998 realized that this huge company had realized that this huge company had

some big problems:some big problems: Decision making was slow Decision making was slow Intense industry competitionIntense industry competition losing shareholder valuelosing shareholder value


GM-NAOGM-NAO Business PlanBusiness Plan

Plan to WinPlan to Win

Diagram omitted


'Plan to win' means job cuts at GM 12:40 PM CDT on Tuesday, July 15, 2008

Associated Press Video

Jim Douglas reports July 15, 2008

MORE: News 8 video View larger

DETROIT — General Motors Corp. said Tuesday it will lay off salaried workers, cut truck production, suspend its dividend and borrow $2 billion to $3 billion to weather a severe downturn in

the U.S. market. GM said the moves will raise $15 billion to help cover losses and turn around its North American operations, including $10 billion

from internal cost-cutting and $5 billion from selling some assets and borrowing against others.

"In short, our plan is not a plan to survive. It is a plan to win," GM Chairman and CEO Rick Wagoner said in a broadcast to

employees.

http://www.wfaa.com/video/news8-browse.html

http://www.wfaa.com/video/index.html?nvid=263497


The Four PerspectivesBusiness Plan Deployment

http://www.isixsigma.com/library/content/c011008a.asp


The Strategy Linkages (Example)The Strategy Linkages (Example)



Example Project Balanced ScorecardMeasures

Financial • Inventory Levels • Cost Per Unit • Hidden Factory • Activity Based Costing • Cost Of Poor Quality • Overall Project Savings

Customer • Customer Satisfaction • On Time Delivery • Final Product Quality • Safety Communications

Internal Business Processes • Defects, Inspection Data, DPMO, Sigma Level • Rolled Throughput Yield • Supplier Quality • Cycle Time • Volume Shipped • Rework Hours

Employee Learning and Growth • Six Sigma Tool Utilization • Quality of Training • Meeting Effectiveness • Lessons Learned • Total Trained in Six Sigma • Project Schedule Versus Actual Date • Number of Projects Completed • Total Savings To Date



ISO 9000 ElementsISO 9000 Elements

4.1 4.1 Management ResponsibilityManagement Responsibility

4.2 4.2 Quality SystemQuality System

4.3 4.3 Contract ReviewContract Review

4.4 4.4 Design ControlDesign Control

4.5 4.5 Document and Data ControlDocument and Data Control

4.6 4.6 PurchasingPurchasing

4.7 4.7 Control of Customer-Control of Customer- Supplied ProductSupplied Product

4.8 4.8 Product Identification and Product Identification and TraceabilityTraceability

4.9 4.9 Process ControlProcess Control

4.10 4.10 Inspection and TestingInspection and Testing

4.11 4.11 Control of Inspection, Measuring Control of Inspection, Measuring and Test Equipmentand Test Equipment

4.12 4.12 Inspection and Test Inspection and Test StatusStatus

4.13 4.13 Control of Control of Nonconforming Nonconforming ProductProduct

4.14 4.14 Corrective and Corrective and Preventive Preventive ActionAction

4.15 4.15 Handling, Storage, Handling, Storage, Packaging, Preservation, Packaging, Preservation,

and Deliveryand Delivery

4.16 4.16 Control of Quality Control of Quality RecordsRecords

4.17 4.17 Internal Quality AuditsInternal Quality Audits

4.18 4.18 TrainingTraining

4.19 4.19 ServicingServicing

4.20 4.20 Statistical TechniquesStatistical Techniques

• 4.0 ISO 9000 Elements


Common ProceduresCommon Procedures

Common means common, some or Common means common, some or all plants had to modify existing all plants had to modify existing practices and/or procedurespractices and/or procedures


Quality System Quality System Documentation Documentation

HierarchyHierarchy

4. Results show that the system is operating effectively

2. Defines WHO, WHAT, WHEN

1. Defines Approach(Quality Policy)

3. Answers HOW

QualityManual

Procedures

1

2

Job Instructions 3

4Records

Documentation that proves we do what we say we do


How Did We Maintain the How Did We Maintain the System?System?

• Documented What We Did! – Quality Policy– Quality Manual– Business Processes– Procedures– Job Instructions and Control Plans– Records

• Did What We Documented!– Training– Internal Audits– Management Reviews– Corrective Actions– Continuous Improvement

• Be Sure It’s Effective!


Global Current Product Improvement Process

Diagram omitted


Road to gold: Red X drives qualRoad to gold: Red X drives quality at General Motors.ity at General Motors.

By Sharrock, RoryBy Sharrock, RoryPublication: Publication:

Industrial EngineerIndustrial Engineer Date: Date: Tuesday, May 1 2007Tuesday, May 1 2007

Global Current Product Improvement Process – suggested article:

http://www.allbusiness.com/services/engineering-accounting-research-management/4499259-1.html


http://www.allbusiness.com/industrial-engineer/41315-1.html

http://www.allbusiness.com/industrial-engineer/20070501/4499225-1.html


This Slide is OMITTED




Quality Manager Accountable Quality Manager Accountable for:for:

Quality Managers are accountableQuality Managers are accountable

for four key areas:for four key areas: MetricsMetrics ProcessesProcesses Quality System Employee Quality System Employee

DevelopmentDevelopment Acting as One Quality FunctionActing as One Quality Function


Quality MetricQuality MetricQualityQuality

Direct Run RateDirect Run Rate

MEASUREMENT: Direct RunDirect Run

DESCRIPTION: The percent of vehicles that proceed through the final assembly process without diversion to repair.

PURPOSE: To support build-in station and to effectively communicate first time quality results for consistent

tracking and continuous improvement.

CRITERIA: Direct Run Direct Run = (% OK at xxxx) x (% OK at xxxx) x (% OK at xxxx)*

REPORTING FREQUENCY: Direct Run per month is plotted by month

OWNER:Plant



Verification Process


Training level

Basic Level

Intermediate Level

Expert Level

Training Requirements & Levels of Involvement

Training

INFO OMITTED


PPH Reduction Tracking

Countermeasure Meeting

Thruput Improvement Tracking

Error Proofing Tracking

One Quality Function

Problem Sources

Data Omitted


Balanced ScorecardBalanced Scorecard

DR of 80% goal for all NA plantsDR of 80% goal for all NA plants Team level/team meetings on these Team level/team meetings on these

goals/objectives.goals/objectives. Show Scorecard exampleShow Scorecard example


7 Diamonds7 DiamondsStandardized Problem SolvingStandardized Problem Solving

DIAGRAM OMITTED


Seven Diamonds: Seven Diamonds: standard 7 step approach which requires that standard 7 step approach which requires that manufacturing processes, tooling, correct parts and part quality are verified prior to manufacturing processes, tooling, correct parts and part quality are verified prior to using Red X and/or engineering resources to identify root cause. using Red X and/or engineering resources to identify root cause.

• Diamonds 1-3 Manufacturing

• Diamond 4 Quality Eng / SQA / SQE • Filter 5a Quality Engineer

• Diamond 5b-7 Red X Group

• Diamond 6 Product Engineering


Review of ResponsibilityReview of Responsibility


Help!

Fixed Position Stops

What?

Team Leaders

Interrogates the Process Not the Operator

Problem

Andon Pull

The “Blue Card” is used to Identify the presence of Special

Cause Types of Problems occurring in a work group.

Diamonds 1 – 4 of the 7 Diamond process are used to determine if the

Production Organization is running the assembly process to design intent.

STANDARDIZED WORK STANDARDIZED WORK TEAM Presentation starts TEAM Presentation starts

here.here.

Documents

Quality Management System and the Business Plan