Going beyond ISO
How to make ISO pay for itself and increase the bottom line
What is the Cost of ISO ?• The ISO Staff• The Mgt Reps • Audits (Internal and External)• Travel • Time to create processes• Time to correct findings• Keeping up the database• Can create an adversarial relationship between ISO and the divisions of the company• Loss of certification
Are findings really helping you do better ?
• Contrary to the requirements for signatures on the Document Control Sheets for written products, several signatures were missing on individual reports throughout all projects.
• Project has intermittent dormant periods. Contrary to procedure cited Note b. of QP-2.1H, no request for waiver of Project Review has been initiated.
Are improvements really “improvements” ?
•New and larger space for the Avionics Shop.
•Improving and formalizing the Hazardous Materials program.
•Improvements in training including a new trainer.
What are some benefits of ISO ?• Contractually needed, thus company can now be a prime or subcontractor for major contracts
• Great corporate asset (Goodwill)
• Shows that company is compliant with an international standard, thus might be considered, “world class”
•ISO mandates a Quality Management System.
What your QMS has right now that can improve return.
1. Your QMS should contain all the critical processes of the company
2. All the critical processes should have some type of flow charts or diagrams illustrating the flow of those processes
3. If there is a process, it can be measured. 4. If a process can be measured, it can be improved.5. If it can be improved, it can add to the bottom line and
can add to achieving higher quality in the organization.6. With metrics, you can measure the baseline Cost of
Quality 7. And you can measure the improvements to the
organization.
Does ISO reduce the Cost of Quality?•Cost of quality is defined as the cost of NOT having quality.
–Product returns–Rework–Product failures–Inconsistent quality–Quality improvement teams–Audits/ISO/QMS !!!
•By attempting to create consistent processes across all divisions of a company, or all sites, ISO standards aim to reduce the Cost of Quality.
Making ISO pay• The Internal Auditing process
– Brings out improvements not in ISO now– Creates opportunities to extend improvements across
divisions– Creates opportunity to meet with the site or division
leaders to discuss improvement opportunities
• Advocating ISO
– Inform all areas of the company what ISO can do for improvement by using brown bag seminars or the Web site
– Encourage Executive participation
The easiest way to get ideas for improvement BEFORE an audit
• Review the pertinent processes and flow diagrams for the area
• Determine where metrics should be in place
• Critically assess where there may be unnecessary processes
• Make a point to address this sometime during the audit with the process owner or your interviewee
The usual processes of an organization
• Business processes– Billing, AP, AR
• Proposal/Project processes– Steps in Proposals, project monitoring, risk assessment
• Engineering processes
• Manufacturing processes
• Shipping/Receiving
Receiving
Export Request
COMMERCIAL SERVICES PROCESS FLOW CHART AR = Account Rep CR = Contract RepCO = Customer
OrderIM = Implemention
Mgr = Process Beg w/time
stamp1B
NO YES
Change to Current Service
CO appears in CR queue
CR adds BUD to each billing item to “Finalize Billing”. ASIMS CO status
changes from “activation” to “verification”
AR approves each CO billing
line item “Approve
Selected” or “Approve All”
CO billing line items queue to
TIBS
TIBS populates billing in
RevChain
Invoices produced from RevChain data
ASIMS CO status changes
from “verification” to
“complete”
ASIMS CO status changes
from “in progress” to “activation”
PL adds Full Beneficial Use Date (BUD) to CO (ASIMS)
Service turned on, programmed, changed or
removed and tested. PCO and Network Orders are created in
ASIMS
TSS_QP-9.12 Service
Implementation
PL assigned to CO by IM
“Notes”
CR enters Contract Rec’d date. CO status
change “pending” to “validation”
CO goes to applicable Service IM (ASIMS)
AR adds SOW to CO. CO status change from
“validation” to “in progress”
CO appears in AR Queue
Original Signed contract to
Contracts Dept
Cancel
Why?
Account Rep to Contact Customer
After 30 days 60 days 90 days
Customer Intends to
Sign
Signed Contracts NOT
Returned
Contract sent to Customer (via mail or email) Date entered into ASIMS
Contract Reviewed by
Contracts
Contracts Creates
Contract with Word
Templates
Proposal NegotiationsGather contract
ReqsCustomer
New
Current
Build Customer in ASIMS
Add “new” Service
Build Customer Order (CO)
Request Contract from Contracts. CO status “new” to
“pending”
Request is queued to Contracts
Dept (aligned by Service)
END
START
1B
1E2B
2E3B 3E
4B
6E
4E
5B5E 6B
Customer Services
The easiest way to get ideas for improvement DURING an audit
• At the end of any interview, even though you may be looking to see that the process is being followed, ask,
• “How would you change the process to make it more effective?”
• “Do you think the process is going well?” • “Do you have any complaints about the
process?”
The easiest way to get ideas for improvement during an audit (cont’d)• What this does.
– Empowers the person. Makes them feel good. – Most of the time gives simple, but very effective
ideas. – These ideas are presented in the closing meeting. – The next audit, a follow up is done to see if the idea
has been implemented. • Take these ideas to your next audit and spread the
word. • Get it into the CPIAR system for all to see• Put it on the QM or ISO web site.
The 2nd easiest way to get ideas during an audit (Internal)
• After the closing meeting, take off the auditor hat…
• Ask the VP or head of the division you just audited if you could discuss ideas.
• Alone. • This is your opportunity to add value to the audit
and to the project. Discuss what improvement ideas you have heard, and ask for any from him/her.
The 2nd easiest way to get ideas during an audit (Internal)
• Then, as the lead auditor, you do what??
• Follow up? See if the idea is implemented and …..
• EFFECTIVE!!!!!
So what about the bottom line???
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__________________________________________________________________Does ISO reduce the Cost Quality?
You better believe it!!• ISO can highlight opportunities for improvement• ISO can instill the improvement mentality by
aggressively pushing it during the audits and follow up
• ISO can take those improvements and push them across the organization
• ISO can create the metrics that can measure those improvements.
• ISO can show the executives that it is a Value Adding organization.
Spreading the word to your company executives
• Hold training sessions on improvements• All improvements from audits go onto the ISO or QM
web page• Quality is given or assumes role for monitoring all ISO
improvements for return on investment and quality improvement
• Quality becomes process improvement leader in company.
• Can lead to creation of Six Sigma or a Process Improvement division, apart and separate from Quality.
Let’s Recap…• ISO processes can provide the basis for
improvement• Auditing is one key task that can create
opportunities for improvement that would not be known previously
• Advocating ISO and it’s improvement process will instill improvement into the company
• These steps will give ISO a more positive role in the company’s improvement
Some improvements….• An easier way to retrieve QDRs from the
database (Saves average ½ hour per day for a QC inspector, company wide 10 hours per day)
• A credit card purchase order system created in MS Access leads to quick retrieval and instant tracking (Saves average 1 hour per day for each analyst, company wide will save 5 hours per day)
• Common maintenance procedures throughout company for same machinery.
• In the future, working on reducing variance in 1-off parts by determining common processes across company and finding best practices.