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Sellafield 25 years of quality. The Car 1986. The Car 2011. The PC 1986. The PC Now. The Phone 1986. The Phone Now. Who were the quality companies in 1986?. IBM Rank Zerox Jaguar Most Japanese majors BMW/Mercedes. Which qualities did they demonstrate in 1986?. Value for money
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Sellafield 25 years of quality
The Car 1986 The Car 2011
The PC 1986 The PC Now
The Phone 1986 The Phone Now
Who were the quality companies in 1986? • IBM • Rank Zerox • Jaguar • Most Japanese majors • BMW/Mercedes
Which qualities did they demonstrate in 1986? • Value for money • Reliability? • Efficiency • Elegance But that was not the norm - still heavy reliance on inspection
Who are the quality companies in 2011? • Grundfos • Ricoh • Siemens Healthcare • Bosch • BMW • GE • Glaxo
Which qualities do they demonstrate? • Value for money • Reliability • Efficiency • Elegance Plus • Environmentally friendly • Socially responsible • Engaged with staff, stakeholders and customers
Which standards applied in1986? • BS 5750 • BS 5882 • Generally set our own standards All Primarily inspection focused
Which standards apply in 2011? • BS 9001 • GSR3 • WANO • INPO Now comparison is against the best practice
BNFL in 1986 • Very top down- little involvement of the workforce • Inefficient (cost plus contracts, silo mentality) • BUT world leader - others came to see SIXEP, Pond 5, Thorp • Quality circles started
Quality Tools used from 1986 • TPM • TQM • Systematic Approach - Coverdale • Six Sigma • Kaizen • Balanced Scorecard • PDCA • SPC • Brainstorming
Sellafield Sites in 2011 Have had many quality improvement initiatives • TQM • Self Assessment (Excellence Model) • Fast Forward • Standards and Expectations • Six Sigma • Currently- • Excellence – ACE Man • Project Peer Assist Events • Standard Nuclear Performance Model -INPO
Quality Tools used elsewhere • European Excellence/Baldridge model-holistic approach to quality • Process management • Employee engagement • Culture Change
Main changes in 25 years Internet, Terrorism, Compliance and regulation, H&S Environmental awareness Medical science Facebook Reality TV shows! Summary-many improvements but.....
Fukushima 2011 Chernobyl 1986
Chernobyl 1986= Fukushima 2011– can never relax Quality is not the norm and needs continuous attention Main threat - fluctuations in leadership and direction
Some Drivers of Change? Stakeholders Global Environment CUSTOMERS GOVERNMENT PARTNERS SOCIETY TECHNOLOGY ENVIRONMENT OWNERS IMPROVE!! GLOBISATION EMPLOYEES Market / Arena Ambition NEW ENTRANTS VISION COMPETITORS MARKET TRENDS REGULATORS STRATEGIC THEMES 19
What has changed? • Many of the pressures for change have been around for a while...but: • We are managing in times when change happens ever more quickly • The degree of uncertainly is increasing – who can really predict the future (a Tsunami in Japan leads to 600 job losses in Cumbria) • The pressure for change can often be mobilised more quickly – in 4 days the News of the World went from clear market leader for over 40 years to closure • It is now said that 80% of the value of an organisation are the “intangibles” (e.g. Culture, talent, governance and brand) as these “equip” organisations for future success in this environment.
Which Mentality...? • If it isn’t broke don’t fix it. • Or: • However good it is today; if it isn’t perfect for tomorrow we can still try to improve it. PDCA/Radar Thinking is an essential practice and a habit Or put another way – it is no longer enough to be a learning organisation; the need is to look forward, learn and act.
Learning, Creativity and Innovation The Business Excellence Model Leadership Processes, Products & Services People People Results Key Results Strategy Customer Results Partnerships & Resources Society Results
The Business Excellence Model incorporates all company activities EDD Talent Man. PDJA-Training Strategic Competence Development 360° feedback Exit interviews Shop Floor Excellence Sales Excellence Process maps IMS Six Sigma ISO 9001, 14001 etc Employee Motivation Survey 360° feedback Focus Groups EDD Talent management PDJA BE training Mission, vision, values BE-THINK-INNOVATE 360 degree feedback Controlling Working Capital Growth PBT Cost to Serve Strategy Map Balanced Scorecards Action Plans Core competencies Ext./Int. Customer Survey Sales Excellence Survey Customer Compliant System Warranty rate SRM Activity Based Costing SCM IT systems e.g. SAP Controlling Co2 reduction Waste /Safety ISO 14000
VisibleLeadership Focus on Improvement Skills (3b) Engagement in improvement activities (3c/3d) Process Improvements (5b) Waste reduction (5d) Customer Relations (5e) Profile of Leaders Engagement in Improvement Volume Profitability Reduced Waste Potential to Recover (9b) Keeping Customers Rapid “Planning” and communication of goals (2c/2d) Savings from Suppliers (4a) Focus on cost/value (4b) Reduction in waste (4c) Brand Reputation Analysis of Organisation AA vs. Recession
Enablers – Approaches, Deployed Results People Results People L E A DERSHIP P P A N D S R E S U L T S K E Y Customer Results Partnerships & Resources Society Results Innovation Creativity and Learning The BE Model and RADAR Assess And Refine Strategy
Determine required Results Deploy Approaches The RADAR Concept Assess and Refine Approaches and Deployment Plan and develop Approaches
Radar/PDCA An alternative view of Radar
Excellent Organisations • The annual EFQM Excellence Award identifies “leaders in Excellence” • These come from many countries, sectors and backgrounds • The size and type of organisations varies considerably • Any common features?
Some Characteristics • Minimal fire-fighting / recurring problems • A common understanding and vision • Constant well managed change • Engaged people and stakeholders • An upward flow of ideas • Efficient and effective use of data • Innovation is normal • Pride and the desire that drives further improvement • A culture that gives a competitive advantage • Excellent results (for all stakeholders)
The EFQM Model – an Alternative Picture Vision, Mission, Values Results Leadership1a, 1b, 1c, 1d, 1e Strategy, Planning, Targets2a, 2b, 2c, 2d Value added targets Key results 9a, 9b People3a,3b, 3c, 3d, 3e Value stream, value creation Customer results6a, 6b Partners, Suppliers 4a Value Adding Processes, 5b, 5c, 5d, 5e People results 7a, 7b Society results 8a, 8b Resources,4b, 4c, 4d, 4e Systems/Processes, Improvements 5a
Change Management Model Pressure for Change A Clear Shared Vision Capacity for Change Actionable First Steps
Thank you John Carson TQMI Ltd johnc@tqmi.co.uk