MANAGING QUALITY LYIT, Certificate in Business & Enterprise 4 th October 2007

1. MANAGING QUALITY LYIT, Certificate in Business & Enterprise 4th October 2007

2. Process Approach

3. Process Approach Business is about…… • Identifying customer needs • Translating these into products/services • Supplying the products/services to customers • to achieve customer satisfaction at a profit • Managing the product/service provision efficiently by • Measuring the performance (both internally and with customers) • Analysing the results • Driving continuous improvement

4. Quality Control Loop Measure Record Improve Analyse Process Approach

5. ISO 9001:2000 – Key Elements • Management Responsibility • Management commitment • Customer focus • Quality policy • Planning and review • Resource Management • People • Infrastructure • Environment

6. ISO 9001:2000 – Key Elements • Operations • Planning • Customer processes • Design • Purchasing • Production / Service processes • Measurement, Analysis & Improvement • Measurement for: • Customer satisfaction • Internal audit • Monitoring & measurement of productivity and processes

7. ISO 9001:2000 – Key Elements • Control of Non-conformance • On customer satisfaction, product and processes, conformity & trends, suppliers • Improvement • Continual improvement • Corrective & preventive action

8. ISO Procedures Only 6 mandatory documented procedures: • Control of documents • Control of records • Internal quality audit • Control of non-conformance • Corrective action • Preventive action

9. ISO Key Issues • Simplicity • Relevance • Practicality • Implementation • Focus on improvement • Address the entire business – not just production

10. EFQM Model

11. EFQM Excellence Model The EFQM Model can be used: • As a tool for Self Assessment • As a way to Benchmarkwith other organisations • As a guide to identify areas for Improvement • As the basis for a common Vocabulary and a way of thinking • As a Structure for the organisation’s management system

12. EFQM Model Criteria • Leadership • Policy and Strategy • People • Partnerships and Resources • Processes • Customer Results • People Results • Society Results • Key Performance Results

13. Foundation Mark Model PEOPLE LEADERSHIP & PLANNING OPERATIONS & PROCESSES RESULTS RESOURCES PRACTICES RESULTS

14. Core Values • Customer needs clearly understood • Consistency in product and service • Plans in place for the Business • Employee development and involvement • Continuous improvement • Measuring techniques in place for Key Performance Indicators (KPI’s)

15. Benefits for the Company • All encompassing approach • Increases competitive advantage • Links management activities with results achieved • Introduces concepts of Best Practice

16. Ideal Candidate Profile • Vibrant, well led organisation • Capacity to grow, develop, improve • Commitment to excellence and to best practice

17. Criteria • Management style supports and promotes quality and ongoing improvement • Managers demonstrate importance of customer • Management plan for future of the business Element 1: Leadership & Planning

18. Criteria • Roles and responsibilities are clearly defined • Applicable legislation is identified and complied with • People are trained and developed to support the planned activities of the business • Effective 2-way internal communications is managed Element 2: People Management

19. Criteria • Financial resources are effectively managed • Suppliers are effectively managed • Environment – relevant issues are identified and addressed • Buildings, plant and equipment are well utilised and managed • Information is managed and used effectively • Management remains in touch with new and emerging developments and technologies Element 3: Management of Resources

20. Criteria • Customer needs are defined • Operational activities are planned • Processes are managed to ensure consistency and to meet customer requirements • Key Performance Indicators (KPIs) are used • Customer feedback is captured and acted upon Element 4: Operations & Process Management

21. Criteria • Customer satisfaction – indicators and results • Business results – indicators and results of performance • People satisfaction – indicators of the level of people satisfaction Element 5: Results

22. The Balanced Scorecard How do you measure business success ? Traditional Financial Model Financial measurement and financial reporting to Monitor and manage the progress of a business • Is this adequate ? • If not, then why not ? • What might be better ?

23. Hierarchy of Business Goals Financial Performance (ROCE) Financial Main Business Goal Satisfied Customers Customer Performance How On-time Delivery Internal Business Performance Where and how to get there Process Quality (process cycle time) Learning & Growth Performance What and how do we supply the products and services Employee Skills Balanced Scorecard

24. Financial Scorecard To succeed financially how should we appear to our shareholders ?

25. Customer Scorecard To achieve our vision how should we appear to our customers ?

26. Internal Business Process Scorecard What business process must we excel at to satisfy our customers (and shareholders) ?

27. Learning and Growth Scorecard