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“It’s Never Over Until… No, Wait, It’s Just Never Over!”

“It’s Never Over Until… No, Wait, It’s Just Never Over!”. Performance Improvement Network (PIN) 02 September 2004. A Fundamental Truth!. Quality begins at the top and succeeds only through top-management support…and constancy of purpose.

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“It’s Never Over Until… No, Wait, It’s Just Never Over!”

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  1. “It’s Never Over Until… No, Wait, It’s Just Never Over!” Performance Improvement Network (PIN) 02 September 2004

  2. A Fundamental Truth! • Quality begins at the top and succeeds only through top-management support…and constancy of purpose. • The evolving definition of qualityrecognizes the difference between what Joseph Juran calls “little-q” (product quality) and “big-Q” (organizational process quality). {Ref: “Juran on Quality by Design”}

  3. Let’s Review Some “Other” Basic Principles • All work is a process • PDCA • Balanced Scorecard – Data, not opinions & conjecture • Duality of Work • Process Control, Assurance, Improvement • Voice of the Customer, the Process, and the Employee • Alignment of Soft Systems • System of Profound knowledge

  4. 2. The Plan-Do-Check-Act (PDCA Cycle) Driving Continuous Improvement thru the PDCA Cycle PLAN ACT Not Just Plan/Do CHECK DO

  5. No problems ahead, my Net Worth is $11,250,567 3. Balanced Scorecard Weight: 342 lb. Blood Pressure 290/160 Smoke 3 packs a day

  6. 4. The Duality of Work Principle Where everyone personalizes the concept of: “Working on the Process” (improving how we do the work) while also “Working in the Process” (delivering results) Management has the special responsibility of providing a work climate that enables, encourages, and rewards this behavior

  7. Action Plan QC QI Check Do Quality Level QA • Principle of Process Control, Assurance, Improvement • (aka “Maintaining the Gain”) Quality Control: Control the process to keep it working as designed Quality Assurance: Assure that quality level does not fall back (system related) Quality Improvement: Change product or process to Improve the quality level

  8. Costs 7. Voice of the Customer, the Process, the Employee VOP VOC Operational Excellence Customer and Market Focus VOE Management Employees

  9. 7. Alignment of Soft Systems ? Reward ? Recognition • Goals • Individual • Team • Organizational ? Communication Promotion ?

  10. 8. System of Profound Knowledge • Four Interrelated Parts: • Appreciation for a System • Understanding of Variation • Theory of Knowledge • Psychology

  11. The Quality Journey has plateaus Desired future state Some means to measure overall progress Where do we want to be & How do we measure progress? Now Start Time

  12. The “Challenge” “The Ideal” “The Reality” “Do about it?”

  13. What Do I Do (Next)? ISO 9000 Baldrige Balanced Score- card Six Sigma. Lean Mfg.

  14. Compliance or/and Improvement? An Important Question to Ask - - What are we trying to do? Compliance only (“conformity in fulfilling official requirements”) or do we have an intent to continuously improve using our QUALITY philosophy and toolset?

  15. “Breakthrough Thinking”: Gerald Nadler & Shozo Hibino - - the Purpose Hierarchy I II III IV V

  16. ORGANIZATIONAL PROFILE: ENVIRONMENT, RELATIONSHIPS, and CHALLENGES 2 Strategic Planning 5 Human Resource Focus 1 Leadership 7 Business Results 3 Customer & Market Focus 6 Process Management 4 Measurement, Analysis,and Knowledge Management Baldrige National Quality Program - 2004

  17. Bringing It All Together Strategic Planning Human Resource Focus • Work Structures • Performance Management System • Training • EE Development • EE Environment & Services • EE Satisfaction • Strategic Plans/Goals • Operational Plans/Goals • Financial Goals • Technology Needs • Initiatives/Supporting Actions • Differentiation/Competitive • Advantages 1. Leadership Business Results • Customer-Focused • Product and Service • Financial and Market • Human Resource • Organizational • Effectiveness • Governance and Social • Responsibility • Leadership • M/V/V (aspirations) • Operating Principles • Governance • Operational Reviews • Social Responsibility Customer & Market Focus Process Management • Market Knowledge • Customer Requirements & • Segmentation • Relationship Management • Customer Support • Value Creation Processes • Support Processes Measurement, Analysis, and Knowledge Management • Performance Measurement • Performance Analysis • Data and Information Availability • Organizational Knowledge

  18. Bringing It All Together 1. MB 2. ISO 3. 6& 4. CMM 5. LM 6. BSC 7. BPR 6& 6& Strategic Planning BSc Lm Human Resource Focus Lm Bsc bpr Iso Cmm ISO Cmm • Work Structures • Performance Management System • Training • EE Development • EE Environment & Services • EE Satisfaction • Strategic Plans/Goals • Operational Plans/Goals • Financial Goals • Technology Needs • Initiatives/Supporting Actions • Differentiation/Competitive • Advantages 6& 1. Leadership Bsc Lm Business Results 6& BSC Lm Iso Bpr Cmm ? Cmm Bpr • Customer-Focused • Product and Service • Financial and Market • Human Resource • Organizational • Effectiveness • Governance and Social • Responsibility • Leadership • M/V/V (aspirations) • Operating Principles • Governance • Operational Reviews • Social Responsibility 6& 6& Customer & Market Focus Bsc Lm Process Management Bsc LM BPR Iso Cmm ISO Cmm • Market Knowledge • Customer Requirements & • Segmentation • Relationship Management • Customer Support • Value Creation Processes • Support Processes Lm BSc BPR Measurement, Analysis, and Knowledge Management Iso 6& Cmm • Performance Measurement • Performance Analysis • Data and Information Availability • Organizational Knowledge

  19. Baldrige Item Scores: example 503 points (MB) % Process (550 points) Results (450 points) 50% Process Mgmt Customer/Mkt Measure, KM Leadership HR Focus Planning Results

  20. Process: Effective, systematic approaches, responsive to the overall requirements Approaches well-deployed, although deployment may vary in some areas Fact-based systematic evaluation and improvement process in place and some organizational learning apparent Approaches are aligned with organizational needs Results Improvement trends and/or good performance levels for most areas of requirements No pattern of adverse trends or poor performance levels Some trends/levels show good relative performance (comparisons) Business results address most key customer, market, and process requirements What can you say about a MB 500 point organization?

  21. What can you say about a 500 point organization? • The organization demonstrates effective, systematic approaches to the overall requirements of the Items, but deployment may vary in some areas or work units. Fact-based evaluation and improvement address the efficiency and effectiveness of key processes. Results address key customer/stakeholder, market, and process requirements, and they demonstrate some areas of strength and/or good performance.

  22. What can you say about an organization that: • Is ISO 9000:2000 certified? • Is Level 4 on Software CMM? • Has saved $2.5M from process improvements this past fiscal year? • Has 1 Quality Tools expert for every 250 employees in the organization? • Has reduced cycle times by 20% each of the past 2 years in its product development cycle? • Has aligned its recognition system with its core values?

  23. The Quality Journey has plateaus Desired future state Some means to measure overall progress Where do we want to be & How do we measure progress? Now Start Time

  24. What are the roadblocks? Desired future state Some means to measure overall progress Now Start Time

  25. What are the roadblocks? 70% of the initiatives fail: Biggest obstacles that XXX faces are: Lack of sustained management commitment and leadership Unrealistic scope and expectations 3. Resistance to Change Who is XXX???

  26. Force Field Analysis – “To-Be” State • #1 • #2 • #3 • #4 Obstacles Strengths • #1 • #2 • #3 • #4

  27. 5 Whys & Root Causes • Root CauseAn identified reason for the presence of a defect or problem.The most basic reason, which if eliminated, would prevent recurrence.The source or origin of an event. • Determine The Root Cause: 5 Whys Why? Why? Why? Why? Why? Problem Statement

  28. Time-based profile of the challenge Progress A means to evaluate overall progress - tailored based on organizational appropriateness To-Be Desired Future State B As-Is A Current State C D Core Values of the Organization time Now

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