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SIGNS OF TODAY - ARE THEY?

SIGNS OF TODAY - ARE THEY?. QUALITY SAFETY ENVIRONMENT PROTECTION PROFITABLENESS. Quality -Jankkila2004 -. SOME HISTORY OF QUALITY MANAGMENT. In Japan in the beginning of 1950 – WHY ? after world war II Japan hade downfall +economical difficulties +

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SIGNS OF TODAY - ARE THEY?

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  1. SIGNS OF TODAY - ARE THEY? QUALITY SAFETY ENVIRONMENT PROTECTION PROFITABLENESS Quality -Jankkila2004 -

  2. SOME HISTORY OF QUALITY MANAGMENT In Japan in the beginning of 1950 – WHY ? after world war II Japan hade downfall +economical difficulties + low competitiveness => need to use all recourses efficiently JUSE ( Japanise Union of Scientists and Engineers + official organisations + a committee + Japanese enterprices >> objective to imporove fastly the Japanese production and life quality E. Deming and J. Juran came from USA to Japan => statistical quality control methods => quality control and quality assurance units in the companies + quality groups and circles in the production process Kaoru Ishikawa = quality management and techno-social philopsofy and creativeness in the problem solving Quality -Jankkila2004 -

  3. QUALITY ”When our customers come back and our products do not” *Ability of a product to perform its functions = has a direct impact on product or service performance *Characteristics of a product or service that satisfy customer’s stated or implied needs = closely linked to customer value and satisfaction *It borns in exchange – *Is produced by core and support processes * It is evaluatable and measuretable *One of the marketer’s major positioning tools Freedom of defects – is it enough ? Quality -Jankkila 2004 -

  4. - TOTAL QUALITY -Sarv Singh Soin 1998- An effort of continuous improvement that uses quality tools and systems to manage business, in order to make it more effienct, productive, and succesful, profitable and better prepared for the future It includes: • traditional product quality, total quality control ( TQC ), • total quality management ( TQM ) programs, • efficiency, productivity, • customer satifaction, customer loyalty, • zero-defect products and services, • good management of key areas; planning, human recource management ) Quality -Jankkila2004

  5. - BENEFITS OF GOOD TOTAL QUALITY EFFORT FOR A COMPANY - Sarv Singh Soin 1998- • Higher employee morale • More efficient processes • Higher productivity • Less fire-fighting > more time for innovations and creativity • Lower costs • Zero-defect products and services • Increasingly customer satisfaction and loyalty • Increased market share Higher profits Quality –Jankkila 2004-

  6. QUALITY DEFINITIONS • Conforming of specification ( Phil Crosby ) Are the specifications the same as the customers do want? • Fitness for use ( Joseph Juran ) • Must be quality = a set of expective features / • Attractive quality = unexpected quality that goes beyond the customer’s need ( Noriaki Kano ) • Products and services that meet or exceed customers’ expectations ( Soin ) Quality -Jankkila2004 -

  7. TOTAL QUALITY –Lillrank, Paul- PART SYSTEM QUALITY TOTAL NEED CUSTOMER QALITY SATISFACTION FUNCTION PLANNING QUALITY STRUCTURE PLAN PRODUCTION MANUFACT QUALITY URING QUALITY MANAGEMENT Quality -Jankkila2004 -

  8. VIEWS TO QUALITY–Lillrank, Paul • PRODUCTION QUALITY -faultless product -measure = quantity of defaults -improvement = find defaults • PLANNING QUALITY -maximination of technical characteristics of product -measure =performance/efficient of product • CUSTOMER QUALITY -product’s suitability to customer’s needs -measure = customer satisfaction • SYSTEM QUALITY -ecological / societal suitability, environmentl quality - measeure = social and societal relations Quality -Jankkila2004 -

  9. TOTAL QUALITY’S CONTRIBUTIONTO PROFITS –Sarv Singh Soin 1998 –Total quality essentials – CUSTOMER SATISFACTION MARKET SHARE AND LOYALTY Competing with the value High relative price is possible PRICE QUALITY EXTERNAL Zero defect products and services, Exiting INTERNAL products and services COST PRODUCTIVITYPROFIT Quality -Jankkila 2004-

  10. QUALITY AND PROFIT –Maaseutukeskusten liitto- THE MARKET PRICE Profit Profit Investments Repearing Investments faults Basic costs Basic costs Quality -Jankkila2004 -

  11. FORMS OF EXTRAVANGANCE • Removal and handling of materials, information and half done works • Seeking and waiting for papers, persons, information • Wrong methods of doing - making same things many times • Needless work – that the customers do not value and do not pay for it • Answering to complaints, and repearing faults • Overproduction or premature works • Overstocks or stocks of half done materials and products Quality -Jankkila 2004

  12. CHARACTERISTICS OF A QUALITY FIRM-Lecklin Olli - • Customer centred operations– customer evaluates the quality! • Executive’s commitment to quality management • Personel’s development and improvement • Flexibility and quickness • Future directed operations • Management are based on reaslism • Co-operation – internal and external • Responsibility – societal business and marketing ! • Planning is important part of acitivity • Havc objectives and targets • Continuing improvement Quality -Jankkila2004 -

  13. QUALITY CYCLE – by Juran PLAN IMPROVE ACT EVALUATE Quality -Jankkila 2004 -

  14. PRINCIPLES OF QUALITY MANAGEMENTtrilogy by Juran • PLAN – objectives, customers, needs, products • CONTROL – evaluation, comparison • IMPROVE– infrastructure, projects, teams, recources, educating, reviewing >Identify your customers >Study the customer’s needs and wants >Formulate needs into production language >Develop products and their characteristics meeting customer’s needs >Develop the process meeting the product developmenand producstion needs >Test that the process is working >Improve and change the process meeting according to new operations Quality -Jankkila2004 -

  15. QUALITY MANAGEMENT • Process using methods that support quality management • Conscious effort to faultness in all activity in the company • Meet customer’s expectatios and produce right products and services without faults at first time • Way of management – executives’ commitment and activity !! Quality -Jankkila2004 -

  16. COMPONENTS OF TOTAL QUALITY PROCESS QUALITY PRODUCTENVIRONMENTAL QUALITYQUALITY QUALITY OF SOCIALQUALITY OF INTERACTIONSFIRM’STOTAL ACTIVITY Quality -Jankkila2004 -

  17. QUALITY STEPS –Maaseutukeskusten liitto- SPECIAL QUALITY OF THE FIRM AND THE PRODUCTS Competitive factor NATIONAL STRATEGY BASED QUALITY Strategical commitment LEGISLATION BASED QUALITY - obligatory Quality -Jankkila2004 -

  18. QUALITY MANAGEMENT SYSTEM • Company’s way of working = quality policy, values • Process including; plan > act > evaluate > improve • System including; objectives –> results – methods and operations to evaluate and improve operations • systematic steerinf of operations and control • get more efficiency and profits !! • support employees and executive to improve and develope themself • create uniform models to operations Quality -Jankkila2004 -

  19. QUALITY MANAGEMENT SYSTEM Quality policy and objectives Organisation Processes Work instructions Reference material ( laws, rules ) DOKUMENTATION Quality -Jankkila2004 -

  20. CONTENTS OF QUALITY MANAGEMENT SYSTEM GROUND OF QUALITY OPERATIONS -quality policy, values -core and support operations -strategies, objectives, -measures, controls, work instrustions; -evaluations and reviewing who, when, why, what CUSTOMERS DEVELOPMENT OF OPERATIONS -needs and expectations -deviations and measeure -co operation with customers -how to prevent and repear faults SUPPLIES PERSONEL DOKUMENTATION -responsibility -instructions, reviews -improvement, development -legislation, norms - ENVIRONMENTAL EMPLOYEE HEALTHY MANAGEMENT SYSTEM AND WORK SECURITY MANAGEMENT Quality -Jankkila2004 -

  21. WHY DOCUMENTATION ? INTERNAL PROFITS -Identify company’s operations and the way of working -Compact, uniform, distinct instruction -Identidy points need to develop -Helps employe go into the company’s operations -Means of managing EXTERNAL PROFITS -Certificate that company wants to evaluate and develop it’s operations -Certificate of controlled operations and management -Helps customers to evaluate and control product and company -Means of marketing -Certificate of origin Quality -Jankkila2004 -

  22. QUALITY SYSTEM STANDARDS– external models to secure the quality • A logical magement system which gives international strandards to measure on compare own operations and systems – a framework to the subjects tha the company have to evaluate, measure and improve • A sertified quality system is an indication that a company’s operations fulfil the requirements set by the standard • Sertification = external auditing and certification that a company operates as the standard shows • ISO = International organization for standardization • ISO 9001, gives standards for company’s quality management • system • ISO 14001 – gives standards to environmental management system Quality -Jankkila2004 -

  23. STANDARDS • Every company has an own quality system by standards • Do not give orders how a company have to operate – gives to company means to evaluate, measure and ensure that the company operates well • Tells the subjects that have to be in good condition that a customer can be sure that the company can produce servoices and products well and fullfill the customer’s needs and wants • Make business to business trade easier Quality -Jankkila2004 -

  24. ISO 9001 STANDARD requirements POLICY IMPLEMENTATION EVALUATING IMPROVEMENTS Objects: How to organize Control How to eliminate -customers operations Measures reasons for faults -economy Resporsibilities Internal audits How to prevent the -environment How to ensure Evaluation of problems -ethical tasks own know-how own policy How to set new objectives and targets Quality -Jankkila2004 -

  25. BENCHMARKING –Soin- • A process that allows the firm to measure it’s products, services and processes against the toughest or leadingedge companies • This external view catalyse internal change in the company and helps the company to be more efficient and competitive • It is not industrial espionage or something unethical > purpose is to look at processes used in other companies and use this learning to improve company’s own processes. Quality -Jankkila2004 -

  26. WHAT CAN BE BENCHMARKED? –Soin- • PRODUCT DEVELOPMENT PROCESS -understanding and collecting data on customer needs -design tools and techniques, -process of desing to market … • MANUFACTURING METHODOLOGIES -production technologies, automation techniques .. • PRODUCT DESIGN AND PERFORMANCE • QUALITY SYSTEMS • SUPPLY CHAIN MANAGEMENT • ORDER MANAGEMENT • SALES AND MARKETING TECHNIQUES Quality -Jankkila2004 -

  27. PRODUCT’S LIFE CYCKLE WASTES RAW MATERIALS -quantity / quality RECYCKLING -rawmaterials -recyckling -varies by branches-products -reduction of waste -package recyckling-half made products PRODUCTION -many kind of operations CONSUMPTION home, public.. PACKING -many kinds of packages MARKETING AND materials and marks SELLING varies by products STOCKING -varies by products TRANPORTATION -by charasterics of the products Quality -Jankkila2004 -

  28. ENVIRONMENTAL PROTECTION Is steered by => LEGISLATION AND NORMS + MARKET Development of environmental thinking in companies Before Present Production Consumption Pollutions Product Controls in points Manage isolated pollutions Operations afterwards Preventive operations One cost more Improvement of efficiency Potentially a risk Potential way for differentiating Management of product technology Management of processes Legislation steering Market steering Must to do Comptetiton factor Separeted operation One part of company trategy Quality -Jankkila2004 -

  29. WHY an environmental management system? • Responsibility and concern for the environment • Safeguarding the viability of the environment • Competetive advanges or a market requirement • Optimisation of production investments and processes • Product development and product utility • Customers satisfaction and loyalty • Personnel development and resources • Interest party commitment • Correct allocation of recources • Subcontactor operations SFS Quality -Jankkila2004 -

  30. ENVIRONMENTAL MANAGEMENT SYSTEM ISO 14001 requirements • ÉNVIRONMENTAL POLICY • PLANNING environmental aspects, legal and other requirements, objectives and targets, environmental management programmes • IMPLEMENTATION AND FUNCTIONS structure and responsibilities, training, awareness and competence, communication, environmental management system dokumentation, document control, operational control, emergency, preparedness and response • CHECKING AND CORRECTIVE ACTIONS monitoring and measurement, nonconformance; corrective and preventive actions, records, environmental management system audit • MANAGEMENT REVIEW Quality -Jankkila2004 -

  31. ENVIRONMENTAL MANAGEMENT SYSTEM CONTINUAL IMPROVEMENT COMMITMENT AND POLICY REVIEW AND IMPROVEMENT PLANNING *environmental aspects *Laws and requirements MEASUREMENT *management programmes AND EVALUATION IMPLEMENTATION Quality -Jankkila2004 -

  32. ENVIRONMENTAL MANAGEMENT SYSTEMAssesment and certifications system ISO 14001 (SFS ) GENERAL INFORMATION INFORMATION MEETING COMPANYS APPLICATION TO SFS SFS EVALUATE THE MATERIAL SUPPLIES PLANNING MEETING PRE-AUDIT AT THE COMPANY AUDIT OF ENVIRONMENTAL MANAGEMENT SYSTEM AUDIT REPORT TO THE COMPANY SFS CERTIFICATE CORRECTIVE ACTIONS GRANTED POST AUDIT FOLLOW UP AUDIT Quality -Jankkila2004 -

  33. ”ENVINRONMENTAL PRODUCT DEVELOPMENT” IN HUNGARY - excemples • Increasing the rawmaterial basis of bio – briquette production by using new materials ( sawdust, energy grass, seed cout, hemp ) • Renewable energy from organic waste • Waste management in the wood product industry • Developing wind generators • Comparative test and environmental effect analysis of fuels made by animal fat and various kind of plant oil • The alteratives of the domestic agricultural machinery • Renawable energy from hazardous organic waste ( pig farms ) • Rationalising the logistical costs of the agricultural machinery ( quality of product, production cost, customer service ) • Source; Hungarian agriculture engineering 16/2003 Quality -Jankkila2004 -

  34. CUSTOMER RELATIONSHIP MANAGEMENT –Lancester-Renolds- = >business strategy that integrates people, processes and technology to maximaze relationships with the firm’s day- to-day customers, distribution channel members, internal customers and suppliers. => comprehencive approach that provides seamless coordination between sales, marketing, customer sevice, field suppotand other customer-facing functions New customers – New prospects for customers: =High cost of sales and sales resistance (more marketing communication, special prices, more direct marketing ) Existing customers – Repeat business from happy customers: = Low cost of sales, economies of scale for the seller, low risk for the buyer customers are not price sensitive = more profitable customers Quality -Jankkila2004 -

  35. VALUES OF AN COUNTRYSIDE ENTERPRICE • SATISFACTION OF THE CUSTOMER; quality of products and operations • PROFITABLENESS; livelihood of the entrepreneur, continuity of the firm • SUSTAINABLE OPERATIONS; taking care of the environment, nature and landscape • ETHICAL PRODUCTION AND OPERATIONS; wellfare of people and animals, honesty, justness Quality -Jankkila2004 -

  36. QUALITY OF THE FOODSTUFF CHAIN IN FINLAND -Maaseutukeskusten liitto - IN THE YEAR 2006 * Finnish agriculture as a whole has a systmatic quality management system * Foodstuff industry and agriculture trade have verified quality ( ISO 9001 ) and environmental ( ISO 14001 ) management systems * Foodstuff trade has quality- and environmental systems for transportation, stocking and trade * Public organisations ( state, municipalities .. ) place foodstuff quality and it’s development first priority Quality -Jankkila2004 -

  37. The quality chain of foodstuffsin Finland Maaseutukeskusten liitto- SATISFIED CONSUMER INPUT INDUSTRY FOODSTUFF AND TRADE TRADE PLANT DISTRIBUTION PRODUCTION TRANSPORTATION FEED INDUSTRY FOODSTUFF AND TRADE INDUSTRY FARM PRODUCTION Quality -Jankkila2004 -

  38. Quality system in a Finnish farm–Maaseutukeskusten litto- 8. Results of 1. Basis of production production 7. Document 2. Customers management 6. Production 3. Planning management 5. Personel 4. Information utilization Quality -Jankkila2004 -

  39. HACCP– Hazard Analysis of Critical Control Points • Based on foodstuff legislation • Preventive , systemaical • For the behalf of the customer • Company’s own acitivity • For foodstuff companies • Aim to identify and manage risks • Whole process from raw materials to final goods – all routines also from cleaning to refuse disposal Quality -Jankkila2004 -

  40. A PLAN FOR HACCP • Raw materials supply; commitments of quality of the chain, reception control, storing .. • Water analysis • Production and storing ( temperature !) • Proofs of raw materials and final products –> analysis • Plan for refuse disposal and cleaning • Plan for pests destruction • Health care of employees Quality -Jankkila2004 -

  41. FOODSTUFFS SAFETY • CHEMICAL RISKS - environmental and natural poisons and toxins - medical remainders ( antibiotics, hormones ) - pesticides - mould toxins - additives - radioactivity • NUTRITIONAL RISKS - over using of fat and salt • MICROBIOLOGICAL RISKS - infection ( echerichia, coli, salmonella ) - toxic symptons, poisoning ( microbe toxins ) - viruses ( potassium oxide ) Quality -Jankkila2004 -

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