+ All Categories
Home > Business > What all quality professionals must know about cf os april 2013

What all quality professionals must know about cf os april 2013

Date post: 20-Jan-2015
Category:
Upload: john-cachat
View: 496 times
Download: 0 times
Share this document with a friend
Description:
 
Popular Tags:
20
Copyright John Cachat What All Quality Professionals Must Know About CFOs John M. Cachat [email protected] 440-915-2650
Transcript
Page 1: What all quality professionals must know about cf os  april 2013

Copyright John Cachat

What All Quality

Professionals Must

Know About CFOs

John M. [email protected]

440-915-2650

Page 2: What all quality professionals must know about cf os  april 2013

Copyright John Cachat

About John M. Cachat

• Driving Business Performance

– Helping companies align their business and technology

– Focus on people, process, and then the technology

– Subject matter expert on business process management

– On-going research into next generation of technology for enterprise

systems

• 28 years experience in enterprise systems

– USAF Research Project (1985)

– Founder of enterprise quality software company (1988)

– Chair of ASQ technical committee on computerizing quality (1992)

• Trusted advisor to global organizations, government agencies,

and professional groups

http://www.linkedin.com/in/johncachat

Page 3: What all quality professionals must know about cf os  april 2013

Copyright John Cachat

Housekeeping

Phones are muted

Use the question

block for questions Copy of presentation

available upon request

Page 4: What all quality professionals must know about cf os  april 2013

Copyright John Cachat

Today’s Discussion

• Quality professionals need a better

understanding of financial terms and

approaches

• CFOs need a better understanding of

Quality terms and approaches

• Everyone needs to learn how to

significantly improve situations over

which they have control

4

Page 5: What all quality professionals must know about cf os  april 2013

Copyright John Cachat

Are We That Different?

Finance – SOX, GAAP Quality - ISO

Documentation Documentation

Training Training

Audits Audits

Risk Management Controls

5

Page 6: What all quality professionals must know about cf os  april 2013

Copyright John Cachat

Are We That Different?

Finance Quality

Likes Numbers Like Numbers

Like Process and Audits Like Process and Audits

Talk about Cash, Profit, etc Talk about PPM, CAR, Cpk, etc

Reports what has happen Can explain why it happen

6

Page 7: What all quality professionals must know about cf os  april 2013

Copyright John Cachat

The Disconnect

• Finance has been consumed with GAAP and audited financial statements for external reporting

• Operations is not happy with standard financial reports

– Operations ability to understand?

– Financial ability to provide information?

• Great gains can be made from “management accounting”

7

Page 8: What all quality professionals must know about cf os  april 2013

Copyright John Cachat

Quality Costs Model

• Prevention - Cost to

prevent mistakes

• Inspection - Cost to

find mistakes

• Failure- Cost of

mistakes – internal &

external

8

Page 9: What all quality professionals must know about cf os  april 2013

Copyright John Cachat

Management Accounting

• Information for internal business support, not

external financial reports

• Great gains can be made by Quality and

Accounting working together

• The main focus should be cause and effect

analysis

9

Page 10: What all quality professionals must know about cf os  april 2013

Copyright John Cachat

Cause and Effect ExampleIncrease Profit on New Products

10

PEOPLE

MFG PROCESS

EQUIPMENTPRODUCT

DESIGN PROCESS PURC PROCESS

INCREASE

PROFIT ON

NEW PRODUCTS

Page 11: What all quality professionals must know about cf os  april 2013

Copyright John Cachat

Increase Profit on New Products

11

INCREASE

PROFIT ON

NEW PRODUCTS

0

20

40

60

80

100

120

Design Proto Pre-Prod Production

Program A

Program B

Number of Engineering Changes by Product Stage

Page 12: What all quality professionals must know about cf os  april 2013

Copyright John Cachat

Increase Profit on New Products

12

INCREASE

PROFIT ON

NEW PRODUCTS

Process Capability by Product Stage

0

0.5

1

1.5

2

2.5

3

3.5

4

Design Proto Pre-Prod Production

Program A

Program B

Cpk

Page 13: What all quality professionals must know about cf os  april 2013

Copyright John Cachat

Increase Profit on New Products

13

INCREASE

PROFIT ON

NEW PRODUCTS

Supplier Changes by Program

0

2

4

6

8

10

12

New

Suppliers

Suppliers

Dropped

Same

Suppliers

Program A

Program B

Page 14: What all quality professionals must know about cf os  april 2013

Copyright John Cachat

Cause and Effect Example

14

PEOPLE

MFG PROCESS

EQUIPMENTPRODUCT

DESIGN PROCESS PURC PROCESSINCREASE

CUSTOMER

SATISFACTION

REDUCE

COST OF

NONCONFORMACE

INCREASE

MARKET SHARE

REDUCE

INVENTORY LEVELS

INCREASE

PRODUCTIVITY

Page 15: What all quality professionals must know about cf os  april 2013

Copyright John Cachat

Corporate Performance Management

15

D-DB-

EA-

C+

Overall Score

Last Period4/1/09 - 6/30/09

Current Period7/1/09 - 9/30/09

B+C-C+BC

Human Performance

C+ D+

Corporate Responsibility Performance

Top Line Summary of Assessment Score Current Reporting Period

Example, Inc7/1/09 - 9/30/09

Ticker Stock Price

EXA $3.70

Sustainable Performance Index (M1)

A 850-1000Index

C+ B 700-849

C 550-699

D 400-549

E 0-399

Pillars of Performance ScoresLast Year

7/1/08 - 9/30/08

DB-

E

Innovation Performance

Operational Performance

Financial Performance

C+B

February-01

August-01

March-02

September-02

September December March June September

Actual Industry Avg. Alert

695

www.3ppartnersdls.com

Deb Shumar

Page 16: What all quality professionals must know about cf os  april 2013

Copyright John Cachat

My Quality Projects Never get Funded!

• You have a lot of

great projects to pick

from

• You have limited $$

to invest

• How do you decide

which project to

fund?

16

Page 17: What all quality professionals must know about cf os  april 2013

Copyright John Cachat

Finance Terms

17

• Return on Investment (ROI)

• Net Present Value (NPV)

• Internal Rate of Return (IRR )

• Payback Period

Page 18: What all quality professionals must know about cf os  april 2013

Copyright John Cachat

Things to Consider

• Formal training on performance management

• Cause and effect workshops

– Multiple departments

– What makes these numbers go up / down

• Business process and data collection analysis

• Technology support requirements

18

Page 19: What all quality professionals must know about cf os  april 2013

Copyright John Cachat

About Us

John Cachat

[email protected]

440-915-2650

Contact

Proven expertise in

corporate performance

management systems

Rapid Solution

Development™ process

ServicesAssess Current Status

Develop Short and Long

Term Plans

Develop Specific Solutions

to Your Problems

Assist in ROI Analysis

19

Page 20: What all quality professionals must know about cf os  april 2013

Copyright John Cachat

What All Quality Professionals Must Know About CFOs

&

Contact:

John Cachat

[email protected]

Copy of Presentation

&

Request a Demo

Visit:

http://peproso.com/webinars

Future Webinars


Recommended