The Process-Based Approach: Going Beyond Auditing to Assessing

1. qC The Process-Based Approach: Going Beyond Auditing to Assessing Presenter: Ron Sedlock the quality Catalyst 880 State Road 26 Melrose, Florida 32666 Phone: (352) 473-6095 E-mail: rsedlock@msn.com www.thequalitycatalyst.com

2. Select One Obsessed with Sex and Booze! Excellent Decision Maker Uses System’s Thinking Good Management Skills

3. The Element Approach Process and Systems Models Process-Based Techniques “In Conclusion…” Presentation Outline

4. Process-Based Six Sigma DFSS Lean Manufacturing Balanced Scorecard SPC DOE QFD Benchmarking Reengineering 7 Habits The Learning Organization ISO 9001 Baldrige Taguchi Poke Yoke What do all of the following have in common? Activity-based Costing MBO Concurrent Engineering JIT Quality Circles MRP MRP II Kaizen CIP TQM TQL Hoshin Kempner-Tregoe ZD VA/VE Answer: Cross-Functional Teamwork

5. “Quality is the resultof the system.”

6. ISO 9000 Series Quality Elements (1987)

7. The Element Approach • Not how a business really works • Not easy for the user to interpret • No connection to improvement • No need for process linkages

8. Standard Compliance Yes Audit Completed Audit No Actual Traditional Compliance Audit

9. Scope and Depth Depth

10. Scope and Depth Traditional Audits Process-Based Assessments Depth

11. Design and redesign Consumer research Suppliers of materials and equipment Consumers Distribution Receipt and test of materials A B C D Production, assembly, inspection Tests of processes, machines, methods, costs Deming’s System Model

12. Updated System Model Benchmarking Management Responsibility Resources Design Customer Focus Purchasing Product Realization Measurement/Analysis/ Improvement

13. Model of a Process-BasedQuality Management System (QMS) Continual improvement of the quality management system Customers Customers Management responsibility Resource management Measurement, analysis and improvement Satisfaction Input Product realization Output Requirements Product

14. ISO9001:2000 0.2 Process approach The application of a system of processes within an organization, together with the identification and interactions of these processes, and their management, can be referred to as the “process approach”. An advantage of the process approach is the ongoing control that it provides over the linkage between the individual processes within the system of processes, as well as over their combination and interaction. HR Sales Prod Eng

15. Customers Customers Management responsibility Resource management Measurement, analysis and improvement Satisfaction Product realization Output Requirements Product ISO 9001:2000 and Baldrige Continual improvement of the quality management system 1 Leadership 3 Customer and Market Focus 7 Business Results 3 Customer and Market Focus 2 Strategic Planning • Human • Resource • Focus 4 Information and Analysis Input 6 Process Management

18. Suppliers Input Process Output Customers Fishbone Process Model Person Material Process Machine Method S.I.P.O.C. Process Model

19. IPO Spider Process Model™ Incoming Material Equipment Who Information Input Output Process Measurement Environment Workplace Decision Making

20. Model of a Process-BasedQuality Management System (QMS) Continual improvement of the quality management system Customers Customers Management responsibility Resource management Measurement, analysis and improvement Satisfaction Input Product realization Output Requirements Product

21. Customer Initiate Processes O P I Your Organization

22. Business Processes

23. Process Linkages Customer Initiated Process Customer Initiated Process Customer Initiated Process O P I Internal Customer Initiated Process Management Process

24. Design Purchasing Assy Assy Doc IPO Spider Web Model™ Prod

25. Process Process Linkage Strength Output Input

28. Scheduled Audit Process-Based Audit Schedule HR Ship Sales Design Purch Eng Prod

29. Auditing Systems

30. Audit the arrows A hand-off from one operation to another? A communication link from one department or company to another? Transporting product from one location to another? An input to the process? Indicating off-line processes?

31. Audit the diamonds Was the decision based on facts? Who made the decision? How timely? How many yes’s vs. no’s? Where are they located?

32. Audit Report Content

33. Why Process-Based? • To provide input for management review. • To assess the system effectiveness. • To provide insight to process owners.

34. Optimizing the System Cross-Functional Improvement Functional Control

35. In conclusion… • Audit linkages. • Report the good. • Add value to process owners. • Add value to management review. Bottom line: Go from auditing to assessing

36. auditor (ô'di-ter) n. 1. One who hears; a listener.

37. There will be a meeting of the immediately after in the tavern. Thanks for listening!The End