MANAGING QUALITY

LYIT, Certificate in Business & Enterprise

4th October 2007

Process Approach

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

Process Approach

Quality Control Loop

Record Improve

Analyse

Measure

ISO 9001:2000 – Key Elements

• Management Responsibility

– Management commitment– Customer focus– Quality policy– Planning and review

• Resource Management

– People – Infrastructure– Environment

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

ISO 9001:2000 – Key Elements

• Control of Non-conformance

– On customer satisfaction, product and processes, conformity & trends, suppliers

• Improvement

– Continual improvement– Corrective & preventive action

ISO Procedures

Only 6 mandatory documented procedures:

– Control of documents– Control of records– Internal quality audit– Control of non-conformance– Corrective action– Preventive action

ISO Key Issues

• Simplicity

• Relevance

• Practicality

• Implementation

• Focus on improvement• Address the entire business – not just

production

EFQM Model

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

EFQM Model Criteria

• Leadership• Policy and Strategy• People• Partnerships and Resources• Processes• Customer Results• People Results• Society Results• Key Performance Results

PEOPLE

RESOURCES

LEADERSHIP&

PLANNING

OPERATIONS &

PROCESSES

RESULTS

PRACTICES RESULTS

Foundation Mark ModelFoundation Mark Model

• 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

• All encompassing approach

• Increases competitive advantage

• Links management activities with results achieved

• Introduces concepts of Best Practice

Benefits for the CompanyBenefits for the Company

• Vibrant, well led organisation

• Capacity to grow, develop, improve

• Commitment to excellence and to best practice

Ideal Candidate ProfileIdeal Candidate Profile

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

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

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

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

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

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 ?

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

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

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 ?

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) ?

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