ISO 9001:2000 Certified

1. ISO 9001:2000Certified Next Steps? Where do we go from here?

2. How can we... Align everyone to the corporate goals? Provide a clear statement of our objectives,measures and performance expectations? Contribute as individuals daily to the company objectives and success?

3. ANSWER?Key Performance Indicators. What Gets Measured Gets Done!

4. Key Performance Indicatorswill: • Provide performance measurements for all core processes. • Add value for our customers and the company. • Support company objectives. • Provide performance goals for each department. • Be owned, maintained, reviewed and acted on by each department. • Provide balanced performance measures.

5. Establishing KPI’s Using a SIPOC Diagram

6. SIPOC Diagram? • A SIPOC diagram is a Six Sigmatool used to identify relevant elements of a process. • It is similar to Process Mapping, but provides additional detail. • The SIPOC tool is particularly useful in identifying: • Suppliers of the Inputs for the process? • The process output requirements. • The internal and external customers of the process. • The requirements of the internal and external customers?

7. Step 1 -Flow Chart • Start by Flow Charting the process. • From the 30,000 ft level • Only 5 or 6 steps are needed • Example: Placing a Purchase Order

8. Supplier Input Process Output Customer Step 2 - SIPOC • Use a flip chart with headings (S-I-P-O-C) written on it, or. • Use post-it notes posted to a wall. • Create an area that will allow the team to post additions to the SIPOC diagram.

9. Step 3-Breakdown the Process • Identify theSuppliers of the Inputs of the Process. • Identify theInputs required for the Process to function properly. • List the name of the core process. • Identify theOutputs of the Process. • Identify theCustomers that will receive the Outputs of this Process. • Discuss with Facilitator, Team Leader and other involved stakeholders for accuracy.

10. Step 4 - Add information to the SIPOC Diagram Example: Placing a Purchase Order

11. Step 5 - Add KPI Information • Process Owner • Key Performance Indicator • Source of Data • Measurement Method • Established Goal Example: Placing a Purchase Order

12. Completed SIPOC Diagram with KPI Information

13. Action and Follow-up • After the process has been broken down and the elements identified using SIPOC. The KPI's can be monitored and acted upon using the model shown below. NOTE: Actions may be taken on the Inputs and / or the process. Controlling the inputs and the process is key in ensuring an acceptable output

14. Connection to Company Objectives Individual Key Performance Indicators Customer Benefits Company goals Faster Service On Time Delivery Reduce time to release shipping documentation? Reduce time to release a Shop Order? Reduce Shop Throughput Time? Reduce time to place a purchase order Reduce time to create a CAD Drawing Higher Quality Increase Internal and External Quality Reduce defect rate? Reduce outgoing defect rates /Final Inspection? Reduce Scrap? Improve Supplier Quality? Reduce Rework Reduce Rework Costs? Lower Costs Reduce Costs due to Shop Order Errors Reduce Non Value Added Process Steps? Reduce Waste Reduce Material Usage?