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Quality Development Series

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Title: Quality Development Series


1
Quality Development Series
  • Quality Management for the Business Professional
  • Presented byWilliam Newman - Adjunct Professor,
    University of Michigan
  • Quality Expo National Manufacturing Week
  • Rosemont (Chicago), IL
  • September 25, 2007

2
Agenda
  • Introductions / Administratia / Ice Breaker
  • Overview of Program and Expectations
  • Module 1 Introduction A History of Quality
  • Module 2 Survey of Quality Management Systems
  • Break during exercise
  • Module 3 Quality Management Concepts for
    Business Professionals
  • Adjourn

3
Learning Objectives
  1. Reduce anxiety around quality concepts.
  2. Increase understanding of quality vocabulary and
    concepts.
  3. Introduce the concept of a quality process.
  4. Understand the kinds of quality standards that
    exist.
  5. Understand key differences in quality readiness,
    compliance, and certification.
  6. Introduce change management and validation
    concepts, including communication planning.
  7. Review popular management concepts dealing with
    quality.
  8. Provide resources you can use tomorrow.

4
Ice-breaker / Quiz
  • Where in the world
  • Who you are
  • What you do
  • Where you are from
  • Why you are here

5
Agenda
  • Module 1 Introduction A History of Quality
  • Module 2 Survey of Quality Management Systems
  • Module 3 Quality Management Concepts for
    Business Professionals

6
Quality Fundamentals
  • Definition
  • Quality refers to the distinctive
    characteristics or properties of a person,
    object, process or other thing. Such
    characteristics may enhance a subject's
    distinctiveness, or may denote some degree of
    achievement or excellence.
  • ISO 9000 defines quality as "degree to which a
    set of inherentcharacteristic fulfils
    requirements".

7
Modern History of Quality
  • After the United States entered World War II,
    quality became a critical component of the war
    effort. The armed forces initially inspected
    virtually every unit of product then to simplify
    and speed up this process without compromising
    safety, the military began to use sampling
    techniques for inspection, aided by the
    military-specification standards and training
    courses.
  • The Japanese quality revolution after World War
    II welcomed the input of Americans Joseph M.
    Juran and W. Edwards Deming and rather than
    concentrating on inspection, focused on improving
    all organizational processes through the people
    who used them.
  • By the 1970s, U.S. industrial sectors such as
    automobiles and electronics had been broadsided
    by Japans high-quality competition. The U.S.
    response, emphasizing not only statistics but
    approaches that embraced the entire organization,
    became known as total quality management (TQM).

8
Quality Vocabulary and Concepts
  • Today, total quality has given way to many kinds
    of standards, guidelines and working documents
    all intended to support quality in the
    manufacture of products and delivery of services
    in different industries.

ISO 9000
TL 9000
ISO 90012000
CAPA
9
Quality Vocabulary and Concepts
  • A quality management system, is composed of the
    following general components
  • Processes
  • People
  • Management
  • Customers
  • Services and / or Products
  • and value.
  • How we define a quality system has undergone
    change over the years but it begins with the
    intent to offer a product or service to one or
    more customers.

10
How Product Development Happens
Source Hoffman, et. al.
11
Product Development Risk and Reward
Source Griffin, Abbie, PDMA Research on New
Product Development Practices Updating Trends
and Benchmarking Best Practices, Journal of
Product Innovation Management 14 (1997).
12
The Deming (PDCA) Cycle
  • Plan. Recognize an opportunity and plan a change.
  • Do. Test the change. Carry out a small-scale
    study.
  • Check. Review the test, analyze the results and
    identify what youve learned.
  • Act. Take action based on what you learned in the
    study step If the change did not work, go
    through the cycle again with a different plan. If
    you were successful, incorporate what you learned
    from the test into wider changes. Use what you
    learned to plan new improvements, beginning the
    cycle again.

Source American Society of Quality.
13
The Quality Process ISO90002000
Legend
Value generation
Information flow
ISO90002000 advocated for the first time a
closed-loop process, where the beginning and
the end are with the customer.
14
Module 1 Key Concepts
  • Quality refers to the distinctive characteristics
    or properties of a person, object, process or
    other thing.
  • ISO 9000 defines quality as "degree to which a
    set of inherentcharacteristic fulfils
    requirements".
  • There are many quality standards, guidelines, and
    working documents for different products and
    industries.
  • Modern quality founders such as Deming and Juran
    spear-headed the quality revolution in Japan and
    later in the US.
  • Conventional quality processes are closed-loop
    meaning each process starts and ends with the
    customer.

15
Agenda
  • Module 1 Introduction A History of Quality
  • Module 2 Survey of Quality Management Systems
  • Module 3 Quality Management Concepts for
    Business Professionals

16
Development of Successful New Products
  • Products that dont solve customer problems or
    dont solve them at a competitive cost will fail.
  • Customer needs are the problems that a person or
    firm would like to have solved.
  • Products deliver solutions to customers problems.

17
Successful Product Development
  • Three issues must be thoroughly examined
  • Defining the type of new product to launch
  • Establishing how its success will be measured
  • Anticipating potential reasons for possible
    failure

18
Managing the Product Lifecycle
  • The product life cycle- the cycle of stages that
    a product goes through from birth to death.
  • Product Lifecycle Management (PLM) is the active
    management of product information and position
    through the product life cycle.

Introduction
Growth
Maturity
Decline
19
Managing the Product Lifecycle
During the maturity stage, sales initially
increase but at a slower rate as the market
becomes saturated and as competitive pressures
reach their peak. Sales and profits typically
decline in the latter half of the maturity stage.
Even if new users are found and usage rates are
increased, product sales may eventually start a
long-term decline, as when a substitute product
that offers a superior set of benefits displaces
the old product.
The growth stage of the product life cycle
characterized by rapidly increasing product
demand, new competitors entering the market in
response, and rapidly increasing profits for the
product varieties that customers decide best meet
their needs.
The introduction stage starts when a new product
is presented to the market. Initial sales are
slow, as potential customers must go through a
learning process about the new product and its
benefits before they purchase.
Introduction
Growth
Maturity
Decline
20
Encore of the Quality Process ISO90002000
Legend
Value generation
Information flow
Most quality standards, regardless of industry
orientation, abide by the closed-loop quality
process of ISO90002000.
21
More Terminology Quality Core Tools
  • APQP Advanced Product Quality Planning
  • The overall governing product readiness
    operating model for most repetitive manufacturing
    industries
  • PPAP Production Part Approval Process
  • A specific approval process in most
    manufacturing companies to certify a part is
    ready for assembly
  • FMEA Failure Mode Effects Analysis
  • Analysis performed generally at the design and
    manufacturing process levels to assess product
    risk
  • 8D Eight-D
  • A problem solving approach used to perform
    corrective action
  • CAPA Corrective Action, Preventative Action
  • A problem analysis approach similar to 8-D used
    in high tech

22
Other Quality Management Concepts
  • There have emerged post-total quality a variety
    of programs and techniques. These allow for a
    series of checks and balances in the
    organizations appropriate at different stages of
    the product lifecycle.
  • On the Shop Floor
  • Kanban
  • JIT
  • Poke-a-yoke
  • For Quality professionals
  • Statistical Process Control (SPC)
  • Measurement Systems Analysis (MSA)
  • Production Part Approval Process (PPAP)
  • Six Sigma (6?)

23
Product Development vis-à-vis TS16949 (APQP)
2) Product Design Design FMEA PreliminaryB
ill of Materials Specification Design
collaboration Control Plan(Prototype)
1) Concept Phase RFQ / Businesscase Developme
nt Plan Regulations (Laws, Standards,
Objectives) Continuous Improvement
3) Process Design Process FMEA Routing
creation Process flow diagram Statistical
process Control (SPC) Control plan(Model)
4) Validation Planning and production under
real-life conditions Control plan for series
production and inspection plan Process
audit Production partapproval process(PPAP)
5) Product Launch Quality Inspections
during Production Requalification tests Proces
s optimization
Review SOP Release
Review/ Approval
Review Pre-ProductionRelease
Review/ Approval
Define type of APQP
24
A Typical Quality Management System (QMS)
APQP
  • Analysis
  • Know-How
  • Methods

Quality Circle
FMEA
QM Plan
Corrective measures (8D)
Defects
Planning
Realization
Production
Product
25
Industries, and their standards, are blending
  • With a trend to enter new markets and industries
    with a companys products, similarities and
    unique differences in quality adherence is
    encountered.

Delphis move into consumer electronics(XM
satellite radio) and medical productsmeans those
products may need to satisfymore than one set of
industry standards.
26
Readiness, Compliance, Certification
  • Readiness refers to the ability of an
    organization to begin to implement a QMS.
  • Compliance indicates that an organization is
    following one or more quality standards and
    guidelines with internal controls via an
    implemented QMS. This could involve internal
    audits.
  • Certification is awarded to a particular site or
    company division where one or more quality
    standards and guidelines have been implemented
    via a QMS and repeatedly audited and validated by
    a third-party registrar.

27
Example Internal Audit Program
COMPLETEDCORRECTIVEACTIONS?
YES
VOLKSWAGEN DE MÉXICO
NO
INITIATE PROGRAM
REVIEW AUDITFINDINGS
Lead Responsibility
MAJORCORRECTIVEACTIONS?
Management
Third-party
PROGRAM MANDATE
NO
AUDITFINDINGS
QMO
YES
CONDUCT TRAINING
PARTICIPATEAND AUDIT
DEFINE PROJECT RECOVERY PLAN
TOOLS KNOWLEDGE
28
Case Study Siemens VDO
  • Read the case study handout on Siemens VDO.
  • You are the management team for the Guadalajara
    plant operations and you are considering a
    quality initiative.
  • Break into teams and discuss the following
  • What business drivers compelled Siemens to
    consider this program initiative?
  • How would this serve the customers of Siemens?
  • How did the business benefit from a quality
    managementprogram?

29
Ice-breaker
  • Three lies and a truth
  • Tell the class three lies anda truth.
  • Class participants vote onwhich is the truth.
  • One point for each correct guess.
  • Participant with the most points (correct
    guesses) wins a prize!

30
Module 2 Key Concepts
  • Quality management systems (QMS) can occur and do
    occur during all stages of the product lifecycle.
  • Based on the standard or guideline that you are
    following there may be requirements in the
    conceptual design, production planning,
    validation, and through manufacturing and
    service.
  • Depending upon your product or service and the
    value chain your company operates, you may be
    subject to one or more quality requirements.
  • There is a huge investment / reward difference
    between readiness, compliance, and certification.

31
Agenda
  • Module 1 Introduction A History of Quality
  • Module 2 Survey of Quality Management Systems
  • Module 3 Quality Management Concepts for
    Business Professionals

32
How Do you Implement Quality in an Organization?
  • Implementing Quality or any concept in an
    organization must address the fact that change
    will happen in the organization.
  • There are different levels of change in the
    organization based on quality concepts.
  • There are change management techniques and
    concepts you can learn and use to make your
    journey less painful than it could possibly be!

33
Examples of Quality Initiatives in Business
Benefit Potential
34
Managing the Transition
A New Beginning
The Neutral Zone
Letting Go
William Bridges, Managing Transitions
35
How Change Is Accepted
16 resistors
34 late majority
34 early majority
13.5 early adopters
2.5 innovators
William Bridges, Managing Transitions
36
Why People Resist Change
Certainty I know this change is bad for me!
Uncertainty I think that this change will be bad
for me!
Feelings I dont feel good about this change
Skepticism I strongly doubt that any good at all
will come of this
. . . Understand that the organization is
composed of groups with different needs and
agendas . ..
37
Influence and Communication
Think
Awareness/
Need/
Need
awareness
Commitment/
Understanding/
Feel
understanding
Commitment
Capability/ Action
Do
38
Change Process
  • All change goes through a lifecycle, whether
    intended or unintended, which generally follows
    the diagram at right.
  • You can be pro-active about managing the change
    process or re-active. The choice is yours and
    that of your organization.

39
Some Principles for Initiative Planning
The Uniqueness Principle Whatever the apparent
similarities, each problem is unique and requires
an approach that dwells on its own contextual
needs. The Purposes Principle Focusing on
purposes helps strip away nonessential aspects to
avoid working on the wrong problem. The
Solution-After-Next Principle Innovation can be
stimulated and solutions made more effective by
working backward from an ideal target
solution. The Systems Principle Every problem is
part of a larger system. Understanding the
elements and dimensions of a system matrix lets
you determine in advance the complexities you
must incorporate in the implementation of the
solution. The Collective Principle An
organization is made of a collective of
individuals who hold the solutions to most
organizational initiatives.
Source Variety of sources, including G. Nadler,
S. Hibino, Breakthrough Thinking, 1990, Prima
Publishing.
40
Business Processes in Quality
  • Management
  • Business
  • Support

Source American Society of Quality.
41
Communication Planning
  • Some typical sponsorship and communication
    techniques include
  • Company newsletter / intranet news sites / email
  • Focus groups
  • Fireside chats
  • Management briefings
  • The old adage applies
  • Tell em what you are going to do, tell em
    what you are doing, tell em what you did.

42
Module 3 Key Concepts
  • There are many quality concepts used across
    industries, appropriate for different activities
    across the business.
  • The best way to implement a quality management
    system (QMS) is to show the benefit to the people
    and to the organization through constant and open
    communication.
  • Pro-active change management techniques can help
    to successfully implement a QMS.
  • There are different levels of change with
    proportionate levels of resistance to change.
    Dont bite off more than you can chew!

43
Learning Objectives How did we do?
  1. Reduce anxiety around quality concepts.
  2. Increase understanding of quality vocabulary and
    concepts.
  3. Introduce the concept of a quality process.
  4. Understand the kinds of quality standards that
    exist.
  5. Understand key differences in quality readiness,
    compliance, and certification.
  6. Introduce change management and validation
    concepts, including communication planning.
  7. Review popular management concepts dealing with
    quality.
  8. Provide resources you can use tomorrow.

44
Summary and Discussion
45
Resources
  • The American Society of Quality
  • www.asq.org
  • Automotive Industry Action Group
  • www.aiag.org
  • UofM Medical Center Quality System Public Website
  • http//www.med.umich.edu/mqs/
  • The Juran Institute
  • www.juran.org
  • Delphi Quality / Social Responsibility Web page
  • http//www.delphi.com/about/main/social/quality/

46
Credentials
  • Mr. Newman has over 20 years experience in
    management, marketing and sales helping
    companies go to market quickly and profitably.
    During his career, he has worked for and leda
    variety of management consulting, information
    technology, and engineering services firms. His
    industry expertise spansmanufacturing,
    government, utilities, transportation, and
    healthcare industries.
  • Mr. Newman holds a Bachelors Degree in
    Aerospace Engineering with a minor in Economics
    from the Henry Samueli School of Engineering at
    UCLA, and an MBA in Management with an emphasis
    in International Business from the Conrad Hilton
    School of Business at Loyola Marymount
    University.
  • Mr. Newman serves as an adjunct professor with
    the University of Michigan Dearborn Graduate
    School of Management in the area of Marketing
    Policy and Product Development. He earned the
    Certified Management Consultant designation in
    1995, and has been a qualified ASQ trainer since
    2000. He is a sought-after speaker and
    facilitator on the topics of New Product
    Introduction (NPI) and innovation management.
    His research includes The Annual Innovation and
    Technology Survey and The Six Secrets of Highly
    Innovative Companies. Mr. Newman may be reached
    at wnewman_at_umd.umich.edu.
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