Quality Management System and the Business Plan

1. Quality Management Systemand the Business Plan Kathleen Betz MERC Process and Product Quality

2. Topics for Discussion • Quality Management System • Business Plan to Drive Change • Process Improvement Teams • Balanced Scorecard • Basic Quality Tools • Two Real life examples of Production Problem Solving Teams

3. QMS – Why? • common processes/conformity • reduce variation • eliminate waste and rework • prevent defects • find opportunities for error-proofing • improve productivity • increase efficiency and effectiveness • drive innovation

4. QMS – Why? • According to the ASQ online glossary(http://www.asq.org/glossary/q.html) • Quality management system (QMS): A formalized system that documents the structure, responsibilities and procedures required to achieve effective quality management. • Quality management (QM): The application of a quality management system in managing a process to achieve maximum customer satisfaction at the lowest overall cost to the organization while continuing to improve the process.

5. QMS – Why? • A QMS can: • Improve competitive position • Meet customers’ requirements to meet and maintain quality standards: • QS-9000: Harmonized quality management system requirements developed by the Big Three automakers for the automotive sector. Replaced by Technical Specification 16949 effective Dec. 15, 2006 (http://www.asq.org/glossary/q.html) • ISO 14000: An environmental management standard related to what organizations do that affects their physical surroundings. • Ensure processes do not pass on defects to internal customers (ie. From one process to the next). • Ensure work products are delivered with zero defects.

6. GM Drive for QualityWhy ?? • Customer enthusiasm • Industry Performance • Business Plan • Plan to Win • Common Processes • Quality Plan

7. GM Drive for QualityWhy? Data protected

8. A New Driver • Rick Wagoner took over the ‘wheel’ of GM in 1998 • realized that this huge company had some big problems: • Decision making was slow • Intense industry competition • losing shareholder value

9. GM-NAOBusiness Plan Plan to Win Diagram omitted

10. 'Plan to win' means job cuts at GM 12:40 PM CDT on Tuesday, July 15, 2008 Associated Press Video Jim Douglas reports July 15, 2008 MORE: News 8 video View larger DETROIT — General Motors Corp. said Tuesday it will lay off salaried workers, cut truck production, suspend its dividend and borrow $2 billion to $3 billion to weather a severe downturn in the U.S. market. GM said the moves will raise $15 billion to help cover losses and turn around its North American operations, including $10 billion from internal cost-cutting and $5 billion from selling some assets and borrowing against others. "In short, our plan is not a plan to survive. It is a plan to win," GM Chairman and CEO Rick Wagoner said in a broadcast to employees.

11. The FourPerspectivesBusiness Plan Deployment http://www.isixsigma.com/library/content/c011008a.asp

12. The Strategy Linkages (Example) http://www.isixsigma.com/library/content/c011008a.asp

13. Example Project Balanced Scorecard Measures http://www.isixsigma.com/library/content/c011008a.asp

14. 4.1 Management Responsibility 4.2 Quality System 4.3 Contract Review 4.4 Design Control 4.5 Document and Data Control 4.6 Purchasing 4.7 Control of Customer- Supplied Product 4.8 Product Identification and Traceability 4.9 Process Control 4.10 Inspection and Testing 4.11 Control of Inspection, Measuring and Test Equipment 4.12 Inspection and Test Status 4.13 Control of Nonconforming Product 4.14 Corrective and Preventive Action 4.15 Handling, Storage, Packaging, Preservation, and Delivery 4.16 Control of Quality Records 4.17 Internal Quality Audits 4.18 Training 4.19 Servicing 4.20 Statistical Techniques ISO 9000 Elements • 4.0 ISO 9000 Elements

15. Common Procedures • Common means common, some or all plants had to modify existing practices and/or procedures

16. 1. Defines Approach (Quality Policy) Quality Manual 1 2. Defines WHO, WHAT, WHEN Procedures 2 3. Answers HOW Job Instructions 3 4. Results show that the system is operating effectively Records 4 Documentation that proves we do what we say we do Quality System Documentation Hierarchy

17. How Did We Maintain the System? • Documented What We Did! • Quality Policy • Quality Manual • Business Processes • Procedures • Job Instructions and Control Plans • Records • Did What We Documented! • Training • Internal Audits • Management Reviews • Corrective Actions • Continuous Improvement • Be Sure It’s Effective!

18. Global Current Product Improvement Process Diagram omitted

19. Road to gold: Red X drives quality at General Motors.By Sharrock, RoryPublication: Industrial EngineerDate: Tuesday, May 1 2007 Global Current Product Improvement Process – suggested article:

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22. Quality Manager Accountable for: Quality Managers are accountable for four key areas: • Metrics • Processes • Quality System Employee Development • Acting as One Quality Function

23. Quality Metric Quality Direct Run Rate MEASUREMENT: Direct Run DESCRIPTION: The percent of vehicles that proceed through the final assembly process without diversion to repair. PURPOSE: To support build-in station and to effectively communicate first time quality results for consistent tracking and continuous improvement. CRITERIA: Direct Run Direct Run = (% OK at xxxx) x (% OK at xxxx) x (% OK at xxxx)* REPORTING FREQUENCY: Direct Run per month is plotted by month OWNER: Plant

24. Verification Process This Slide is OMITTED

25. Training Training Requirements & Levels of Involvement Training level Basic Level Intermediate Level Expert Level INFO OMITTED

26. PPH Reduction Tracking Thruput Improvement Tracking Error Proofing Tracking Countermeasure Meeting Problem Sources Data Omitted

27. Balanced Scorecard • DR of 80% goal for all NA plants • Team level/team meetings on these goals/objectives. • Show Scorecard example

28. 7 DiamondsStandardized Problem Solving DIAGRAM OMITTED

29. Seven Diamonds: standard 7 step approach which requires that manufacturing processes, tooling, correct parts and part quality are verified prior to using Red X and/or engineering resources to identify root cause. Review of Responsibility • Diamonds 1-3 Manufacturing • Diamond 4 Quality Eng / SQA / SQE • Filter 5a Quality Engineer • Diamond 5b-7 Red X Group • Diamond 6 Product Engineering http://www.allbusiness.com/services/engineering-accounting-research-management/4499259-1.html

30. The “Blue Card”is used to Identify the presence of Special Cause Types of Problems occurring in a work group. Diamonds 1 – 4 of the 7 Diamond process are used to determine if the Production Organization is running the assembly process to design intent. Problem Andon Pull What? Help! Team Leaders Fixed Position Stops Interrogates the Process Not the Operator

31. STANDARDIZED WORK TEAM Presentation starts here.