managing quality lyit, certificate in business & enterprise 4 th october 2007
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MANAGING QUALITY LYIT, Certificate in Business & Enterprise 4 th October 2007. Process Approach. Process Approach. Business is about…… Identifying customer needs Translating these into products/services Supplying the products/services to customers - PowerPoint PPT PresentationTRANSCRIPT
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MANAGING QUALITY
LYIT, Certificate in Business & Enterprise
4th October 2007
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Process Approach
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Process Approach
Business is about……
Identifying customer needs
Translating these into products/services
Supplying the products/services to customers to achieve customer satisfaction at a profit
Managing the product/service provision efficiently by Measuring the performance (both internally and with
customers) Analysing the results Driving continuous improvement
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Process Approach
Quality Control Loop
Record Improve
Analyse
Measure
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ISO 9001:2000 – Key Elements
• Management Responsibility
– Management commitment– Customer focus– Quality policy– Planning and review
• Resource Management
– People – Infrastructure– Environment
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ISO 9001:2000 – Key Elements
• Operations
– Planning– Customer processes– Design– Purchasing– Production / Service processes
• Measurement, Analysis & Improvement– Measurement for:
• Customer satisfaction • Internal audit• Monitoring & measurement of productivity and processes
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ISO 9001:2000 – Key Elements
• Control of Non-conformance
– On customer satisfaction, product and processes, conformity & trends, suppliers
• Improvement
– Continual improvement– Corrective & preventive action
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ISO Procedures
Only 6 mandatory documented procedures:
– Control of documents– Control of records– Internal quality audit– Control of non-conformance– Corrective action– Preventive action
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ISO Key Issues
• Simplicity
• Relevance
• Practicality
• Implementation
• Focus on improvement• Address the entire business – not just
production
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EFQM Model
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EFQM Excellence Model
The EFQM Model can be used:
• As a tool for Self Assessment• As a way to Benchmark with other organisations• As a guide to identify areas for Improvement• As the basis for a common Vocabulary and a
way of thinking• As a Structure for the organisation’s
management system
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EFQM Model Criteria
• Leadership• Policy and Strategy• People• Partnerships and Resources• Processes• Customer Results• People Results• Society Results• Key Performance Results
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PEOPLE
RESOURCES
LEADERSHIP&
PLANNING
OPERATIONS &
PROCESSES
RESULTS
PRACTICES RESULTS
Foundation Mark ModelFoundation Mark Model
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• Customer needs clearly understood
• Consistency in product and service
• Plans in place for the Business
• Employee development and involvement
• Continuous improvement
• Measuring techniques in place for Key Performance Indicators (KPI’s)
Core ValuesCore Values
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• All encompassing approach
• Increases competitive advantage
• Links management activities with results achieved
• Introduces concepts of Best Practice
Benefits for the CompanyBenefits for the Company
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• Vibrant, well led organisation
• Capacity to grow, develop, improve
• Commitment to excellence and to best practice
Ideal Candidate ProfileIdeal Candidate Profile
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a) Management style supports and promotes quality and ongoing improvement
a) Managers demonstrate importance of customer
a) Management plan for future of the business
CriteriaCriteria
Element 1: Leadership & Planning
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a) Roles and responsibilities are clearly defined
a) Applicable legislation is identified and complied with
a) People are trained and developed to support the planned activities of the business
a) Effective 2-way internal communications is managed
CriteriaCriteria
Element 2: People Management
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a) Financial resources are effectively managed
b) Suppliers are effectively managed
c) Environment – relevant issues are identified and addressed
d) Buildings, plant and equipment are well utilised and managed
e) Information is managed and used effectively
f) Management remains in touch with new and emerging developments and technologies
CriteriaCriteria
Element 3: Management of Resources
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a) Customer needs are defined
b) Operational activities are planned
c) Processes are managed to ensure consistency and to meet customer requirements
d) Key Performance Indicators (KPIs) are used
e) Customer feedback is captured and acted upon
CriteriaCriteria
Element 4: Operations & Process Management
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a) Customer satisfaction – indicators and results
b) Business results – indicators and results of performance
c) People satisfaction – indicators of the level of people satisfaction
CriteriaCriteria
Element 5: Results
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The Balanced Scorecard
How do you measure business success ?
Traditional Financial Model
Financial measurement and financial reporting to Monitor and manage the progress of a business
– Is this adequate ?– If not, then why not ?– What might be better ?
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Balanced Scorecard
Hierarchy of Business Goals
Financial Performance (ROCE)
Financial
What and how do we supply the products and services
Where and how to get there
How
Main Business Goal
Satisfied Customers
On-time Delivery
Process Quality (process cycle time)
Employee SkillsLearning & Growth
Performance
Internal Business Performance
Customer Performance
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Financial Scorecard
To succeed financially how should we appear to our shareholders ?
Objectives Measures Targets Initiatives
Sales % growth p.a
Profit Gross %
Nett %
Revenue Growth €
%
Product Cost Reduction
Profit by Product or Service
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Customer Scorecard
Objectives Measures Targets Initiatives
Rapid Response Order lead time 5 days One piece flow
Reliable Quality Compliant rate
Return rate
Zero Process improvement
Product re-design
New Product Availability
Time to market 3 months
To achieve our vision how should we appear to our customers ?
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Internal Business Process Scorecard
Objectives Measures Targets Initiatives
Productivity Quotation response time
Units output/week
Quality Re-work rate
Scrap level
Innovation Unique offerings
Client value
% sales from new products
Time to market for new products
What business process must we excel at to satisfy our customers (and shareholders) ?
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Learning and Growth Scorecard
Objectives Measures Targets Initiatives
Upgrade competencies to meet future needs
Training & development plan
Personal development plan
ITN completed
Training plan completed
People satisfaction Productivity Sales per employee