Quality Management System and the Business Plan

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Quality Management Systemand the Business Plan

• Kathleen Betz
• MERC Process and Product Quality

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Topics for Discussion

• Quality Management System
• Business Plan to Drive Change
• Process Improvement Teams
• Balanced Scorecard
• Basic Quality Tools
• Two Real life examples of Production Problem
  Solving Teams

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QMS Why?

• common processes/conformity
• reduce variation
• eliminate waste and rework
• prevent defects
• find opportunities for error-proofing
• improve productivity
• increase efficiency and effectiveness
• drive innovation

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QMS Why?

• According to the ASQ online glossary
  (http//www.asq.org/glossary/q.html)
• Quality management system (QMS) A formalized
  system that documents the structure,
  responsibilities and procedures required to
  achieve effective quality management.
• Quality management (QM) The application of a
  quality management system in managing a process
  to achieve maximum customer satisfaction at the
  lowest overall cost to the organization while
  continuing to improve the process.

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QMS Why?

• A QMS can
• Improve competitive position
• Meet customers requirements to meet and maintain
  quality standards
• QS-9000 Harmonized quality management system
  requirements developed by the Big Three
  automakers for the automotive sector. Replaced by
  Technical Specification 16949 effective Dec. 15,
  2006 (http//www.asq.org/glossary/q.html)
• ISO 14000 An environmental management standard
  related to what organizations do that affects
  their physical surroundings.
• Ensure processes do not pass on defects to
  internal customers (ie. From one process to the
  next).
• Ensure work products are delivered with zero
  defects.

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GM Drive for QualityWhy ??

• Customer enthusiasm
• Industry Performance
• Business Plan
• Plan to Win
• Common Processes
• Quality Plan

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GM Drive for QualityWhy?
Data protected
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A New Driver

• Rick Wagoner took over the wheel of GM in 1998
• realized that this huge company had some big
  problems
• Decision making was slow
• Intense industry competition
• losing shareholder value

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GM-NAO Business Plan

• Plan to Win

Diagram omitted
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'Plan to win' means job cuts at GM 1240 PM CDT
on Tuesday, July 15, 2008 Associated Press Video
Jim Douglas reports July 15, 2008 MORE
News 8 video View larger DETROIT General
Motors Corp. said Tuesday it will lay off
salaried workers, cut truck production, suspend
its dividend and borrow 2 billion to 3 billion
to weather a severe downturn in the U.S. market.
GM said the moves will raise 15 billion to help
cover losses and turn around its North American
operations, including 10 billion from internal
cost-cutting and 5 billion from selling some
assets and borrowing against others. "In short,
our plan is not a plan to survive. It is a plan
to win," GM Chairman and CEO Rick Wagoner said in
a broadcast to employees.
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The Four PerspectivesBusiness Plan Deployment

                                                                                                                                                                                                                         
http//www.isixsigma.com/library/content/c011008a.
asp
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The Strategy Linkages (Example)
http//www.isixsigma.com/library/content/c011008a.
asp
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Example Project Balanced Scorecard Measures
Financial Inventory Levels Cost Per Unit Hidden Factory Activity Based Costing Cost Of Poor Quality Overall Project Savings Customer Customer Satisfaction On Time Delivery Final Product Quality Safety Communications
Internal Business Processes Defects, Inspection Data, DPMO, Sigma Level Rolled Throughput Yield Supplier Quality Cycle Time Volume Shipped Rework Hours Employee Learning and Growth Six Sigma Tool Utilization Quality of Training Meeting Effectiveness Lessons Learned Total Trained in Six Sigma Project Schedule Versus Actual Date Number of Projects Completed Total Savings To Date
http//www.isixsigma.com/library/content/c011008a.
asp
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ISO 9000 Elements

• 4.0 ISO 9000 Elements

• 4.1 Management Responsibility
• 4.2 Quality System
• 4.3 Contract Review
• 4.4 Design Control
• 4.5 Document and Data Control
• 4.6 Purchasing
• 4.7 Control of Customer- Supplied Product
• 4.8 Product Identification and Traceability
• 4.9 Process Control
• 4.10 Inspection and Testing
• 4.11 Control of Inspection, Measuring and
  Test Equipment

• 4.12 Inspection and Test Status
• 4.13 Control of Nonconforming Product
• 4.14 Corrective and Preventive Action
• 4.15 Handling, Storage, Packaging,
  Preservation, and Delivery
• 4.16 Control of Quality Records
• 4.17 Internal Quality Audits
• 4.18 Training
• 4.19 Servicing
• 4.20 Statistical Techniques

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Common Procedures

• Common means common, some or all plants had to
  modify existing practices and/or procedures

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Quality System Documentation Hierarchy
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How Did We Maintain the System?

• Documented What We Did!
• Quality Policy
• Quality Manual
• Business Processes
• Procedures
• Job Instructions and Control Plans
• Records
• Did What We Documented!
• Training
• Internal Audits
• Management Reviews
• Corrective Actions
• Continuous Improvement
• Be Sure Its Effective!

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Global Current Product Improvement
Process Diagram omitted
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Road to gold Red X drives quality at General
Motors.By Sharrock, RoryPublication Industrial
Engineer Date Tuesday, May 1 2007
Global Current Product Improvement Process
suggested article
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This Slide is OMITTED
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This Slide is OMITTED
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Quality Manager Accountable for

• Quality Managers are accountable
• for four key areas
• Metrics
• Processes
• Quality System Employee Development
• Acting as One Quality Function

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Quality Metric

• Quality
• Direct Run Rate
• MEASUREMENT Direct Run
• DESCRIPTION
• The percent of vehicles that proceed through the
  final assembly process without diversion to
  repair.
• PURPOSE
• To support build-in station and to effectively
  communicate first time quality results for
  consistent tracking and continuous improvement.
• CRITERIA
• Direct Run
• Direct Run ( OK at xxxx) x ( OK at xxxx)
  x ( OK at xxxx)
• REPORTING FREQUENCY
• Direct Run per month is plotted by month

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Verification Process
This Slide is OMITTED
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Training
Training Requirements Levels of Involvement
Training level
Basic Level Intermediate Level Expert
Level
INFO OMITTED
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One Quality Function
Countermeasure Meeting


Problem Sources
Data Omitted
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Balanced Scorecard

• DR of 80 goal for all NA plants
• Team level/team meetings on these
  goals/objectives.
• Show Scorecard example

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7 DiamondsStandardized Problem Solving
DIAGRAM OMITTED


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Seven Diamonds standard 7 step approach which
requires that manufacturing processes, tooling,
correct parts and part quality are verified prior
to using Red X and/or engineering resources to
identify root cause.
Review of Responsibility

• Diamonds 1-3 Manufacturing
• Diamond 4 Quality Eng / SQA / SQE
• Filter 5a Quality Engineer
• Diamond 5b-7 Red X Group
• Diamond 6 Product Engineering

http//www.allbusiness.com/services/engineering-ac
counting-research-management/4499259-1.html


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The Blue Card is used to Identify the presence
of Special Cause Types of Problems occurring in
a work group. Diamonds 1 4 of the 7 Diamond
process are used to determine if the Production
Organization is running the assembly process to
design intent.
Andon Pull
Help!
What?
Team Leaders
Fixed Position Stops
Interrogates the Process
Not the Operator
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STANDARDIZED WORK TEAM Presentation starts here.