Application of Quality Improvement Concepts

1. Application of Quality Improvement Concepts American Society for Industrial Security SFBAC-ASIS Chapter Meeting Jan 17th, 2002 Speaker: Bob Larson

2. In Pursuit of Quality “Quality Assurance is a continuously unfolding process. It is not a commodity or one-time process to be left to those who specialize in it. It belongs to everyone, all the time.” Dr. Deming View on Quality

3. Order of Presentation Process • Some building blocks of a security system • Comments on culture and core values • Process assessment methodology • Reengineering concepts and application • Mistakes in pursuing customer loyalty • Running “lean” opportunity and challenge

4. The Shangrila Syndrome X “We Don’t Have Problems, Why Spend So Much Money?” X Shangrila Quality Level X “We’re The Tops!” X “We Love It!” X “Things Are Looking Up” Customer’s Threshold of Pain X “We’re In trouble!” X “Get Everyone Involved” X We’re In Trouble!” X Time “Fire the Security Person” X “Hire New Security Person”

5. Cost of Quality is Often Below the Surface Wasted Effort Customer Complaints Audit Observations Mistakes Lack of Training Dept Expense Excessive Overtime Late Paperwork Reactive versus Proactive Customer Feedback Operational Costs Incomplete Documentation Incorrectly Completed Incident Reports Lack of Follow-Up on Current Programs Legacy Processes Lack of Current Knowledge Excess Supplies Excessive Employee Turnover Administrative Costs Inadequate Equipment Excessive Systems Costs Delayed Response To Customer Call Complaint Handling Problem Reporting Lack of Planning

6. Security System Building Blocks TITLE Levels Functions Security and Safety of People Physical Assets 1 2 3 4 5 Fundamental Objective Strategic Leadership of Security Professionals Body of Knowledge & Industry Experience Communications Favorable trend In Prevention & Incident Reports Budget Performance & Cost Mgmt Individual & Teamwork Accountability Achievement Objective Verification Routine Process Assessment & Revision Plans Proactive Risk Analysis & Interventions Promote and Apply Best Practices Integrity based Education & Training Methodology Construct Components Customer Survey/Audits Corrective Actn. Certification Programs & Recognition Core Values & Security Culture Established Standards that Are Shared Documentation Problem I.D. Investigations U;/wrkspace/wrkspace/construct/shell/.ppt

7. Core Values Important to Conducting Process Assessment • Security principles & professionalism • Customer/employee focus for sec/safety • Confidentiality, conduct & integrity • Response timeliness and attitude to serve • Proactive prevention and protection • Continuous improvement mindset

8. Objectives of a Process Assessment 1. Select or define problems as part of total system 2. Establish & implement simple, efficient data collection 3. Use understandable methods that can be communicated to management 4. Apply: “Plan, Do, Check, Act” to assess and sustain improvements

9. Process Assessment Questions • Do you ever have to redo things? • Are there wasted steps in your procedures? • Is effort often duplicated or is the process unpredictable? • Do communications ever fail? Why? • Why are there quality failures in your work?

10. The Typical Process Model

11. Guaspari’s Value Matrix High Well-Intentioned Value Creating Purpose Adversarial Bureaucratic Low Process High Low

12. Quality Improvement Process • First identify the desired output • Begin with asking, “who are the customers?” • Define the customer requirements • Select the performance measurement • Develop the improvement goals

13. Origins of Problems in a Process • Processes do not I.D. Need for prevention • There are non-value added steps & wasteful measures • The inputs/outputs are variable/inconsistent • Mistakes occur in execution of procedures • Incomplete knowledge of how a process works • Inadequate knowledge of how a process should work

14. Concepts/tools to Assess Process • The concept of internal/external customers • Concept that all work can be measured • Variation often caused by lack of agreement • Asking, “am I adding cost, vs adding value” • Application of flow charting, data collection • Adopting “Best Practices” for best process

15. Process Assessment Is a Thinking Process • Consider everything is a process • Quality is achieved by improving process • Processes will vary over time • Variations are caused & are both common and special • Leaders job is to understand/improve process and to recognize causes • Leaders encourage to solve prob. Effect strategies

16. What is Reengineering? The fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical measures of performance. (cost, quality, capital, service, speed) Michael Hammer & James Champy Reengineering the Corporation

17. What Is the Goal of Reengineering? To streamline operations for: - Superior quality - Increased profitability - Compliance to regulations

18. What is the Process of Reengineering? • Process Mapping, flow charts, interviews • Evaluation of every step in a process • Think what steps add value for customers • Involve people who do the actual work • Remove those steps that do not add value • Effect new process, evaluate, redo, revise

19. Sequence of Realizing Quality Through Reengineering A. Customer quality requirements B. Inputs = root cause analysis & best practice C. Reengineering redesign of process D. Output = quality improvement plans E. Prepare Organization for change F. Implementation phase of plan or pilot run

20. 7 Critical Mistakes When PursuingCustomer Loyalty • Disinterested sounding telephone answering techniques. • Thinking customer service means doing anything the client wants. • Being slow in handling customer complaints. • Being reactive and not doing a root cause study. • Security executives not meeting regularly with client executives. • Not knowing when to say no. • Making promises you cannot keep. Source: The Art of Successful Security Management by Dennis Dalton

21. Challenge to Run “Lean” • Most operations must do more with less • Knowing what is important will help focus resources • Process study helps identify strengths and weaknesses • Removing waste in processes will help do more with less • Resource constraints force one to be creative and “just do it!”

22. “It is not how much we do,but how well we do it thatdetermines worth. The first measurement of any work isQuality.” Leroy Brownlow