Coming back to Quality by David Hutchins

1. Coming back to Quality by David Hutchins David Hutchins International Quality College

2. Coming back to Quality! Maybe we should take another look? David Hutchins International Quality College

3. 2 years ago Toyota appeared untouchable then followed the product recalls * BP was Master Class, then the Gulf Oil fiasco * Rolls Royce engines equalled the best in the world, then the Trent Engine failure * Then there was the case of the Staffordshire Hospital deaths * the Hungarian Aluminium sludge disaster Etc., Etc., Etc., David Hutchins International Quality College

4. All of these cost billions and all of them were quality related why? We have had ISO 9000 for nearly 4 decades surely this sort of thing could not happen today so why did it and how can we stop it in the future? Let’s take another look at Quality. David Hutchins International Quality College

5. The ‘Toyota Way’ led the world in the principles of quality management The others operated highly structured quality management systems The Hungarian Aluminium was audited just two weeks before the disaster and everything appeared fine! David Hutchins International Quality College

6. So what is wrong? David Hutchins International Quality College

7. Is it that ‘quality’ does not work? Is there something better than quality? David Hutchins International Quality College

8. We do not think so David Hutchins International Quality College

9. We think that we have either lost our way in the case of Toyota and maybe never found it in the case of some of the others. Toyota have admitted it and they had it right for decades, that is how they came from obscurity in the 1950s to world leader in the late 2000s. David Hutchins International Quality College

10. So what is the ‘right’ way? David Hutchins International Quality College

11. We believe that there has been too much reliance on Quality Management Systems Of course, we need systems, they are essential I live not so far from a nuclear power station and would not sleep at night if I did not think they had good systems! But David Hutchins International Quality College

12. It does not matter how much System you have, if people do not really care, and the system itself is flawed nobody will notice it and nobody will fix it. It is then a disaster waiting to happen And it will! David Hutchins International Quality College

13. The trend over past decades has been to focus entirely on systems and surveillance Quality itself has become a sort of policing activity bound up in standards, conformance, compliance, rules, regulations, regulations regulations! If things have gone wrong then the remedy has been more severe systems, more auditing, more blame! This is not the way! David Hutchins International Quality College

14. Quality has become - A police force activity parallel to production rather than part of it!

15. If people do not care, if people just do their job according to ‘regulations’ then no amount of quality control is going to make any difference. Somehow we need to capture the hearts and minds of our people, How?

16. VISION ‘Putting Quality at the heart of the organisation and people at the heart of quality’ David Hutchins International Quality College

17. We also need some underlying beliefs Each person is (or should be if we have trained them properly) the expert in his or her own job David Hutchins International Quality College

18. We need to Harness the creativity, skills, job knowledge of all the people in our organisation to make us the best in our field (Corporate IQ!) David Hutchins International Quality College

19. Global High Performer using Hoshin Kanri Typical organisation Management by process - High performance process output Management by function - Low performance process output We do not want to look like this? We want to look like this? David Hutchins International Quality College

20. We need to move from this Whose fault was it! it is a terrible waste of energy Functional management – Departmental goals more important than corporate goals – when things go wrong blame the other departments – To this Hoshin management - Corporate goals ARE Departmental goals – If things go wrong – find what is wrong with the process – attack problems not people! David Hutchins International Quality College

21. ‘Value’ Chain Interconnections Multiple interacting suppliers and sub supplier processes each comprising – people, methods, materials, equipment, environmental variation and measurements makes for a complex system Imagine each contributing to the VISION and each has its specific KPIs integrated into the Corporate whole Key Business Processes David Hutchins International Quality College

22. Olympic hero Chris Hoy knighted as sport stars grab honours Do we want to look like this?------------------- or this? David Hutchins International Quality College

23. David Brailsford Olympic team coach said: "Everybody in our team dedicate their lives to the pursuit of a dream - to win a gold medal. When they do get recognised in this way it is a fantastic honour.” David Hutchins International Quality College

24. Beijing: 8 Gold, 4 Silver, and 2 Bronze medals! David Brailsford also said: “It was by attention to detail that gave us the advantage over the other teams. We considered everything even the smallest improvements that would give us a competitive edge. It was the accumulation of these small details that made us unbeatable. David Hutchins International Quality College

25. in Toyota from a labour force of 40000 people they have over 2,600,000 improvement suggestions per year of which 96% are implemented! (Their recent failure was for a different reason) Quality Circle at work in Kraft Foods Venezuela December 2008 David Hutchins International Quality College

26. Establish Vision and Mission, Set Corporate goals and targets - agree overall programme, monitor and support. Agree and establish departmental goals, participate in project teams, support Quality Circles. Agree and establish section goals, participate in continuous improvement activities through Quality Circles. David Hutchins International Quality College

27. in Toyota from a labour force of 40000 people they have over 2,600,000 improvement suggestions per year of which 96% are implemented! (Their recent failure was for a different reason) Quality Circle at work in Kraft Foods Venezuela December 2008 David Hutchins International Quality College

28. in Toyota from a labour force of 40000 people they have over 2,600,000 improvement suggestions per year of which 96% are implemented! (Their recent failure was for a different reason) Quality Circle at work in Kraft Foods Venezuela December 2008 David Hutchins International Quality College

29. Set the goal from Benchmarking • Successful presence in global and domestic markets as a leading organisation in quality, technology, production and sustainable development World class performers Business Performance Do not target where they are now, target for where they will be in 3/5 years time. Our Company NOW 3/5 years David Hutchins International Quality College

30. Problem Composition: 1987 and 1994(Industry Average Problems Per 100 Cars) 166 Water Leaks 6 Steering and Handling 6 Temperature Control 7 This might be the target for today Brakes 8 Transmission 9 Wind Noise 11 110 Body 16 4 5 6 Interior 17 5 5 8 Exterior Paint & Moldings 17 14 Squeaks & Rattles 18 11 12 2010? Engine 24 12 9 2020? Electrical & Accessories 28 19 1987 1994 David Hutchins International Quality College

31. Hoshin Implementation Outline Plan November onwards October/November Customers Steering Group meeting • “as is” • Analysis • Process • Map • B/mark best in class • Agree target perf’mnce • Identify • Improvement opp’s Employees Set up project office and facilities Suppliers • Prioritiseopportunities • Establish KPIs (use QFD) • Plan for roll out and deployment • Monitor Cost/ benefits • Implement • Review • Update • PDCA Organisation Identify key resources Design and innovation etc Plan Steering Group meetings Technology Processes Brief and train combined teams Finance etc Develop communication plan Project Support Communication Brief managers Change/program mgt Mobilisation Plan. Analyse. Develop, implement David Hutchins International Quality College

32. MISSION CURRENT BENCHMARK ELEMENT SITUATION SOURCE KNOWLEDGE SKILLS DEVELOP THE KNOWLEDGE, CREATIVITY SKILLS & CREATIVITY OF OUR TEAM TO GENERATE INVOLVEMENT AND PRIDE INVOLVEMENT AS WE CONTINUALLY IMPROVE OUR BUSINESS. PRIDE BUSINESS IMPROVEMENT Tree diagram format - Key Performance Indicators DRIVERS MEASURE TARGET WORLD-CLASS COMPANIES SKILL TESTING UNIVERSITIES AND COLLEGES EDUCATION PROGRAMMES WORLD-CLASS COMPANIES STAFF APPRAISAL WORLD-CLASS COMPANIES MULTI-SKILLING WORLD-CLASS COMPANIES TRAINING BUDGET COURSES UNIVERSITIES AND COLLEGES WORLD-CLASS COMPANIES SUGGESTIONS WORLD-CLASS COMPANIES PROJECTS WORLD-CLASS COMPANIES INNOVATION WORLD-CLASS COMPANIES TEAM WORK PRESENTATIONS WORLD-CLASS COMPANIES SELF-IMPROVEMENT WORLD-CLASS COMPANIES ABSENTEEISM LOCAL COMPANIES LOCAL COMPANIES SICKNESS LOCAL COMPANIES DISPUTES LOCAL COMPANIES LABOUR TURNOVER WORLD-CLASS COMPANIES RESPONSE TO JOB ADVERTS WORLD-CLASS COMPANIES PERFORMANCE IMPROVEMENT WORLD-CLASS COMPANIES/ SCRAP REDUCTION IMPROVED DELIVERY WORLD-CLASS COMPANIES/ TRADE ASSOCIATIONS CUSTOMER COMPLAINTS WORLD-CLASS COMPANIES SAFETY - LOST-TIME ACCIDENTS AND ROSPA ETC DOPRES5 PAPER1 David Hutchins International Quality College

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35. Hoshin Planning Can be transferred to Staff objectives ‘CUSTOMER RELATED MANAGEMENT’ HOUSE OF QUALITY To improve customer loyalty Correlation matrix Function/department/ process Central Matrix (Relationships) Current performance Target performance From tree Diagram Actions David Hutchins International Quality College

36. . . . . . . . . . Departments in Company orfunctions in own department Medical Products Customer: TrumptonHospital Ratio between expected and achieved Actual level achieved by Mobarakeh Planning and production control Level of customer expectation Previous established criteria Importance of the parameter Engineering services Customer support Transportation Performance & In-process Production Packaging Accounts Sales Measures Promises kept 5 85% 35% 0.41 On time delivery Product application 2 100% 70% 0.70 Provision of Technical Services No of days 4 80% 100% 1.25 Prompt handling of complaints The product standard 5 100% 55% 0.55 Good quality (Physical Characteristics) Market price band 4 100% 90% 0.90 Suitable Price No of meetings 2 50% 50% 1.00 Effective communication Oncology Department ……………………………………Date……………….………. Name…………………………..Signature……………..…………….Position…………………… Endorsed by (Name)…………………….Signature…………………………...Position…………………… No of consultation hrs 2 2 100% 100% 100% 100% 1.00 1.00 Provision of consultation Supervisor Hassan G Hassan G Packaging standard 4 4 100% 100% 85% 85% 0.85 0.85 Packaging Financial crediting 5 5 100% 100% 80% 80% 0.80 0.80 Customer focus Provision of credit Mission Element. ……………………………………………….….. ………………………………………………………………….…… KPI Measure Current Target Planned completion Performance Performance Kept promises Deliveries 85% 100% Surfacedefects No of rejects 0% 4% Skills training David Hutchins International Quality College

37. Projects Projects Projects Projects Policy Deployment – Driving towards Global Excellence Hoshin Kanri POLICY DEVELOPMENT EXECUTIVE AUDIT P VISION A ANNUAL REVIEW MISSION POLICY CONTROL HALF-YEARLY REVIEW WEEKLY RESULT DAILY RETURNS RECOGNITION & REWARD POWER HOUSE OF TOTAL QUALITY Critical Success Factors Policies Annual Goals EXECUTIVES C POLICY DISSEMINATION using Balanced Scorecards DIVISIONAL HEADS SECTION HEADS D EMPLOYEES Quality Circles Suggestion Schemes David Hutchins International Quality College

38. Staff objectives (Achieving KPI targets) IMPROVEMENT Vision Management Review against Score Cards Mission Staff Objectives Key Performance Indicators Policies Goals Divisional Heads Policy Staff Objectives Section Heads Policy Staff Objectives Self Directing Work Groups Policy Staff Objectives DCHLINE\REV 1 David Hutchins International Quality College

39. Vision Management Review against Score Cards Mission Key Performance Indicators Policies Goals Divisional Heads Policy Section Heads Policy Self Directing Work Groups Policy Multiple story boards for visible management) IMPROVEMENT Projects selected from Staff Objectives Daily Performance against Staff Objectives Story Boards DCHLINE\REV 1 David Hutchins International Quality College

40. Finally!Award achievement We all seek recognition for our achievements no matter how small. Look what people will do to get a Gold Medal in the Olympic Games! David Hutchins International Quality College

41. 8 features of Global High Performance Global High Performer Vector sum of energy • Top management involvement – not just commitment. • Clear ‘Vision’ from the top and clear policies for all business ‘drivers’. • ‘Key Performance Indicators’ (KPI’s). • ‘Benchmarking’ against competitors and ‘best in class processes. Look after the process and the product looks after itself! • ‘Champions’ nominated for major initiatives. Deployment of goals to all levels • Continuous Improvement at all levels + Lean Six Sigma • Self Directing Workplace improvement teams. • Attack problems not people. High ‘Corporate IQ’ David Hutchins International Quality College