Going beyond ISO

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Going beyond ISO

• How to make ISO pay for itself and increase the
  bottom line

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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

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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.

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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.

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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.

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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.

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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.

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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

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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

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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

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Receiving
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Export Request
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Customer Services
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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?

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The easiest way to get ideas for improvement
during an audit (contd)

• 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.

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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.

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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!!!!!

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So what about the bottom line???
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• _________________________________

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Does ISO reduce the Cost Quality?
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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.

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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.

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Lets 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 its improvement process will
  instill improvement into the company
• These steps will give ISO a more positive role in
  the companys improvement

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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.