david hutchins international quality college. coming back to quality! maybe we should take another...

David Hutchins International Quality

College

Coming back to Quality!

Maybe we should take another look?


College

2 years ago Toyota appeared untouchable then followed the product recalls

*

BP was Master Class, then the Gulf Oil fiasco*

Rolls Royce engines equalled the best in the world, then the Trent Engine failure

*

Then there was the case of the Staffordshire Hospital deaths*

the Hungarian Aluminium sludge disaster

Etc., Etc., Etc.,


College

All of these cost billions and all of them were quality

related why?

We have had ISO 9000 for nearly 4 decades surely this sort of thing could not happen today so

why did it and how can we stop it in the future?

Let’s take another look at Quality.


College

The ‘Toyota Way’ led the world

in the principles of quality management

The others operated highly structured quality management systems

The Hungarian Aluminium was audited just two weeks before the disaster and

everything appeared fine!


College

So what is wrong?


College

Is it that ‘quality’ does not work?

Is there something better than quality?


College

We do not think so


College

We think that we have either lost our way in the case of Toyota and maybe never

found it in the case of some of the others.

Toyota have admitted it and they had it right for decades, that is how they came

from obscurity in the 1950s to world leader in the late 2000s.


College

So what is the ‘right’ way?


College

We believe that there has been too much reliance on Quality Management Systems

Of course, we need systems, they are essential

I live not so far from a nuclear power station and would not sleep at night if I did

not think they had good systems!

ButDavid Hutchins

International Quality College

It does not matter how much System you have, if people do not really care,

and the system itself is flawed nobody will notice it and nobody will fix it.

It is then a disaster waiting to happen

And it will!


College

The trend over past decades has been to focus entirely on systems and surveillance

Quality itself has become a sort of policing activity bound up in standards,

conformance, compliance, rules, regulations, regulations regulations!

If things have gone wrong then the remedy has been more severe systems,

more auditing, more blame!

This is not the way!


College

Quality has become - A police force activity parallel to production rather than part of it!

If people do not care, if people just do their job according to ‘regulations’ then no amount of quality control is going to make

any difference.

Somehow we need to capture the hearts and minds of our people,

How?

‘Putting Quality at the heart of

the organisation and people at the heart of

quality’

VISION


College

We also need some underlying beliefs

Each person is (or should be if we have trained them properly) the

expert in his or her own job


College

We need to

Harness the creativity, skills, job knowledge of all the people in our

organisation to make us the best in our field (Corporate IQ!)


College

We do not want to look like this?

Typical organisation

Global High Performer using

Hoshin Kanri

Management by function -

Low performance

process output

Management by process -

High performance

process output

We want to look like this?


College

Whose fault was it! it is a terrible waste of energy

Hoshin management - Corporate goals ARE Departmental goals – If things go wrong – find what is wrong with the process

– attack problems not people!

We need to move from this

Functional management – Departmental goals more important than corporate goals – when things go wrong blame the other departments –

To this


College

Multiple interacting suppliers and sub supplier processes each comprising – people, methods, materials, equipment, environmental variation and measurements makes for a complex system Imagine each contributing to the VISION and each has its specific KPIs integrated into the Corporate whole

Key Business Processes

‘Value’ Chain Interconnections


College

Do we want to look like this?------------------- or this?

Olympic hero Chris Hoy knighted as sport stars grab honours


College

David Brailsford Olympic team coach said: "Everybody in our team dedicate their

lives to the pursuit of a dream - to win a gold medal. When they do get recognised in this way it is a fantastic honour.”


College

David Brailsford also said: “It was by attention to detail that gave us the advantage over the other teams.

We considered everything even the smallest improvements that would give us a competitive edge. It was the accumulation of these small details that made us unbeatable.

Beijing: 8 Gold, 4 Silver, and 2 Bronze medals!


College

in Toyota from a labour force of 40000 people they have over 2,600,000

improvement suggestions per year of which 96% are implemented!

(Their recent failure was for a different reason)

Quality Circle at work in Kraft Foods Venezuela December 2008


College

Establish Vision and Mission, Set Corporate goals and targets - agree overall programme, monitor and support.

Agree and establish departmental goals, participate in project teams, support Quality Circles.

Agree and establish section goals, participate in continuous improvement activities through Quality Circles.


College

in Toyota from a labour force of 40000 people they have over 2,600,000

improvement suggestions per year of which 96% are implemented!

(Their recent failure was for a different reason)

Quality Circle at work in Kraft Foods Venezuela December 2008


College

Bu

sin

ess

Per

form

ance

Set the goal from Benchmarking

3/5 years

Our Company

World class performers

Successful presence in global and domestic markets as a leading organisation in quality,

technology, production and sustainable development

Do not target where they are now, target for where they will be in 3/5 years

time.NOW


College

Problem Composition: 1987 and 1994(Industry Average Problems Per 100 Cars)

166

110

Water LeaksSteering and Handling

Temperature ControlBrakes

Transmission

Wind Noise

Body

Interior

Exterior Paint & Moldings

Squeaks & Rattles

Engine

Electrical & Accessories2010?

2020?2819

24

9

18

12

17

12

17

11

16

14

11

8

9

5

8

5

7

6

6

5

6

4

1987 1994

This might be the target for today


College

Steering Group meeting

Set up project office and facilities

Identify key resources

Plan Steering Group meetings

Brief and train combined teams

Develop communication plan

Brief managers

MobilisationPlan. Analyse. Develop, implement

Hoshin Implementation Outline Plan October/November November onwards

Project Support

Communication

Change/program mgt

Customers

Employees

Organisation

Suppliers

etcDesign andinnovation

Design andinnovation

Processes

Technology

etcFinanceFinance

• Prioritiseopportunities• Establish KPIs (use QFD)

• Plan for roll out and deployment

• Monitor Cost/ benefits

•Implement

• Review

• Update

• PDCA

•“as is”Analysis

•ProcessMap• B/mark best in class

• Agree target perf’mnce

• IdentifyImprovement opp’s


College

DOPRES5

MISSIONELEMENT

DRIVERS MEASURE

SKILL TESTING

EDUCATION PROGRAMMES

STAFF APPRAISAL

MULTI-SKILLING

TRAINING BUDGET

COURSES

SUGGESTIONS

PROJECTS

INNOVATION

TEAM WORK

PRESENTATIONS

SELF-IMPROVEMENT

ABSENTEEISM

SICKNESS

DISPUTES

LABOUR TURNOVER

RESPONSE TO JOB ADVERTS

PERFORMANCE IMPROVEMENT

SCRAP REDUCTION

IMPROVED DELIVERY

CUSTOMER COMPLAINTS

SAFETY - LOST-TIME ACCIDENTS

CURRENTSITUATION

BENCHMARKSOURCE

TARGET

WORLD-CLASS COMPANIES








LOCAL COMPANIES

LOCAL COMPANIES

LOCAL COMPANIES

LOCAL COMPANIES



UNIVERSITIES AND COLLEGES



WORLD-CLASS COMPANIES/

WORLD-CLASS COMPANIES/TRADE ASSOCIATIONS


AND ROSPA ETC

PAPER1

DEVELOP THEKNOWLEDGE,

SKILLS &CREATIVITY

OF OURTEAM TO

GENERATE INVOLVEMENT

AND PRIDEAS WE

CONTINUALLYIMPROVE OUR

BUSINESS.

Tree diagram format - Key Performance Indicators

UNIVERSITIES AND COLLEGESKNOWLEDGE

SKILLS

CREATIVITY

INVOLVEMENT

PRIDE

BUSINESS

IMPROVEMENT


College

VisionRanked at top

10 global auto -parts supplier

enjoy 50% of itsincome by

export

CorporateMission

Supplyingmaterials, Parts,

autocombinations

throughestablishing and

extending acompetent world

class chainnetwork

suppliers tomeet the ends

of the IranKhodro group

Strategic Plan

MaximiseSAPCOs

importance to bothIran Khodro andthe Iran KhodroSupply Chainthrough theprovision of

Shared Services tocreate and growprofit centres in

in FinancialManagement,

Training Services,Market Research,2nd Party Quality

AuditingSupply Chain

Management, CallCentre facilities

SAPCO also tooffer these

serviices to bothlocal and

internationalorganisationsthrough the

development of itsfacilities in Tehranand later in other

internationallocations.

CUSTOMER

EMPLOYEES

SUPPLIERS

PROCESSES

ORGANISATION

TECHNOLOGY

FINANCE

DESIGN ANDINNOVATION

To be both the internal and the external customer's first choice by the identification, anticipation and satisfaction of their realneeds, and to provide excellent after sales support. Customers also include stakeholders and interested parties.

To be seen as a caring employer to attract the best graduates and local people to join our highly trained workforce and to usethe knowledge, skill and creativity of all of our employees to make us the best in our business

To assist our suppliers to become world class and loyal to our company through partnerships, long term business, caring fortheir needs, and listening to their skilled advice.

To provide rapid high quality low cost response to the customers of all our key business, support and management processesthrough the minimisation of non added value activities

To become Fit, fast, lean and hungry through the application of best practice management skills. To constantly review themanagement system to remain in a state of continual improvement at a rate equal to or better than our competitors andensure that our management system is designed to optimise the whole business rather than improve one function at the

expense of others..

To continually evaluate and where appropriate, implement new technologies where they can be proven to optimise businessperformance in terms of cost, quality and delivery

To practice added value management accounting procedures to satisfy the needs of both its internal and external customers.

To keep the market looking to us for the latest and most innovative environmentally friendly products and services to meet thepresent and future needs of our customers, from conceptual design through to after sales support.


College

To be both theinternal and the

external customer'sfirst choice by the

identification,anticipation and

satisfaction of theirreal needs, and toprovide excellent

after sales support.Customers also

includestakeholders andinterested parties.

Internal customers

external customers

First Choice

Identification ofneeds

Anticipation ofneeds

Satisfaction of realneeds

After sales support

Stakeholders

Interested Parties

Triple roleworkshops*

Process Analysis

Customer surveys

Warranty Claims

Product recall

Complaint data

Customer praise

Internationalmedia reports

OEM analysis ofcustomers andnon customers

Market research

Focus Groups

Trend analysis

Combine withInternal and

external customerchoice surveys

Replacementavailability

User training

Repair time

Analysis of servicereports

Identify specificstakeholders

Local Communityneeds analysis

Media and PRrelations

New - no data

New?

MailedQuestionairre-

Telephoneinterviews

Face to faceinterviews

Kano Modelanalysis

No data

No data

No data

No data

Data

Number of recalls/annum

Cost of recalls/annum

Number ofcomplaintsNumber of

recorded incidentsNumber of positive

reportsNumber of

negative reports

Interviews

Multipleparameters

Number of teams

Market research

Analysis ofsurveys

Survey

Company TrainingSchool

Field data

Field data

Check EFQM andISO 9001

Check EFQM

Check EFQM

Data?

Data?

Data?

Data?

No Data

No Data

No Data

Data?

None

Data?

Data?

Data?

Data?

New?

Use score ifavailable

Use score ifavailable

ELEMENT MEASURE SUB MEASURE CURRENTSITUATION

IMPORTANCE FORACHIEVEMENT OF VISION

HIGH

HIGH

MEDIUM

MEDIUM

MEDIUM

MEDIUM

HIGH

HIGH

HIGH

HIGH

HIGH

HIGH

HIGH

HIGH

MEDIUM

MEDIUM

HIGH

HIGH

HIGH

HIGH

MEDIUM

MEDIUM

HIGH

BENCHMARKINGTARGET

PERFORMANCE

NO

NO

NO USE TRENDDATA

NO USE TRENDDATA

NO USE TRENDDATA

NO USE TRENDDATA

AUTO MEDIA

AUTO MEDIA

AUTO MEDIA

AUTO MEDIA

AUTO MEDIA

AUTO MEDIA

AUTO MEDIA

NO USE TRENDDATA

NO

KOMATSU

AUTO INDUSTRY

ANY GOODSOURCE

ANY GOODSOURCE

ANY GOODSOURCE

EFQM WINNERS

EFQM WINNERS

EFQM WINNERS


College

Central Matrix

(Relationships)

Function/department/ process

Correlation matrix

Cur

rent

pe

rfor

man

ce

Actions

‘CUSTOMER RELATED MANAGEMENT’

HOUSE OF QUALITY

To improve customer loyalty

Tar

get

perf

orm

ance

Can be transferred to Staff objectives

From tree Diagram

Hoshin Planning


College

Performance & In-process Measures E

ngin

eerin

g se

rvic

esS

ales

Pla

nnin

g an

d pr

oduc

tion

cont

rol

Pro

duct

ion

Tra

nspo

rtat

ion

Pac

kagi

ngC

usto

mer

sup

port

Acc

ount

sP

revi

ous

esta

blis

hed

crite

ria

Impo

rtan

ce o

f the

par

amet

er

Leve

l of c

usto

mer

exp

ecta

tion

Act

ual l

evel

ach

ieve

d by

Mob

arak

eh

Rat

io b

etw

een

expe

cted

and

ach

ieve

d

On time delivery 5 85%Provision of Technical Services 2 100%Prompt handling of complaints 4 80%Good quality (Physical Characteristics) 5 100%Suitable Price 4 100%Effective communication 2 50%Provision of consultation 2 100%Packaging 4 100%Provision of credit 5 100%

Customer: TrumptonHospital

Promises kept

Product application

No of days

The product standard

Market price band

No of meetings

No of consultation hrs

Packaging standard

Financial crediting

35%70%

100%55%90%50%

100%85%80%

0.410.701.250.550.901.001.000.850.80

Medical Products

Departments in Company orfunctions in own department

.

..

.

.

.

.

.

.

2 100%4 100%5 100%

100%85%80%

1.000.850.80Mission Element. ……………………………………………….…..

………………………………………………………………….……

KPI Measure Current Target

PerformancePerformance

Customer focus

Deliveries 85%

Department ……………………………………Date……………….……….

Name…………………………..Signature……………..…………….Position……………………

Endorsed by (Name)…………………….Signature…………………………...Position……………………

Oncology

Hassan G SupervisorHassan G

100%Kept promises

Surfacedefects

No of rejects

4% 0% Skills training

Planned completion


College

Hoshin Kanri

RECOGNITION& REWARD

POWERHOUSE OF

TOTALQUALITY

POLICY CONTROL

HALF-YEARLYREVIEW

WEEKLYRESULT

DAILYRETURNS

EXECUTIVE AUDIT

PO

LIC

YD

ISS

EM

INA

TIO

N

us

ing

Ba

lan

ce

d S

co

rec

ard

s

Projects

Quality CirclesSuggestion Schemes

EXECUTIVES

DIVISIONAL HEADS

SECTION HEADS

EMPLOYEES

VISION

MISSION

ANNUALREVIEW

POLICY DEVELOPMENT

Policy Deployment – Driving towards Policy Deployment – Driving towards Global ExcellenceGlobal Excellence

Critical Success Factors

PoliciesAnnual Goals

P

D

C

A

Projects

Projects

Projects


College

Vision

Mission

Policies Goals

Management Reviewagainst Score Cards

Divisional Heads Policy

Section Heads Policy

Self Directing Work Groups Policy

IMPROVEMENT

DCHLINE\REV 1

KeyPerformance Indicators

Staff objectives (Achieving KPI targets)

Staff Objectives

Staff Objectives

Staff Objectives

Staff Objectives


College

IMPROVEMENT

Daily Performanceagainst Staff Objectives

Projectsselected from

Staff Objectives

DCHLINE\REV 1

Vision

Mission

Policies Goals

Management Reviewagainst Score Cards

Divisional Heads Policy

Section Heads Policy

Self Directing Work Groups Policy

KeyPerformance Indicators

Story Boards

Multiple story boards for visible management)


College

Finally!Award achievement

We all seek recognition for our achievements no matter how small.

Look what people will do to get a Gold Medal in the Olympic Games!


College

Global High Performer

8 features of Global High Performance

1. Top management involvement – not just commitment.

2. Clear ‘Vision’ from the top and clear policies for all business ‘drivers’.

3. ‘Key Performance Indicators’ (KPI’s).

4. ‘Benchmarking’ against competitors and ‘best in class processes. Look after the process and the product looks after itself!

5. ‘Champions’ nominated for major initiatives. Deployment of goals to all levels

6. Continuous Improvement at all levels + Lean Six Sigma

7. Self Directing Workplace improvement teams.

8. Attack problems not people.

Vector sumof energy

High ‘Corporate IQ’


College

david hutchins international quality college. coming back to quality! maybe we should take another...

Documents