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Quality Journey from Cost to Value

Tom Hines Dept. Manager - Ada Operations QA

Science Symposium and Expo 2015 October 21, 2015

A GLOBAL

LEADER

2014 global

annual sales of

USD $10.8

BILLION

Operates in more

than 100 countries

and territories

Hold more than

1,000 patents with

more than 700

patents pending

Offers one of the world's leading

business models for entrepreneurs

looking for more time, money and

flexibility.

21,000 Amway

employees

support more

than 3 million

distributors

The world’s #1

direct selling

business

(Direct Selling News Global 100)

More than 450

unique, high-

quality products

are manufactured

and distributed by

Amway

Quality Journey from Cost to Value

TEST

MEASURE

LEAN

DESIGN

ALIGN

Journey (n): 4. passage or progress from one stage to another

Amway Headquarters & Manufacturing Facility Ada, Michigan

Simple View of the Supply Chain

Incoming QC Ensure Quality Manage Risk Protect Facility Compliance Feedback Cost Time

Product QA Assure Quality Manage Risk Protect Consumers Compliance Cost Time

While the value of quality assurance processes and activities across the supply chain is well established, there still seems to be a wide spread questioning of the cost and time associated with it.

TEST

Key Progress

• Specification review & alignment

• Test method interpretation & optimization

• New technology - UPLC (ultra high pressure liquid chromatography) - Celsis (rapid micro detection) - XRF (x-ray fluorescence) - “Proofing” (video artwork & text verification) - LIMS system - “Smart” sample carts - “Live” screen displays

• Analyst training program

• ISO 17025 certification

• Sample vehicles

TESTING (n): 6. the process of identifying, detecting or confirming the presence of a constituent of a substance, or of determining the nature of a substance.

MEASURE

Key Learnings:

• Measure everything The Few Right Metrics

• New QA metrics: - Release Time (days)

- Operational Excellence (errors / 106 tests) - Productivity (Lot / FTE / day) - Efficiency ($/Lot)

• Measure from your customers POV - Dispositioned On Time (%) - QA Lead Time (days)

• Plan to average = plan to fail

Measure (v): 4. the extent, dimensions, quality, etc., of something, ascertained especially by comparison with a standard.

LEAN

Key Learnings:

• Operational Excellence Initiative

• Internal certification (GB & BB)

• New employees with lean / 6 backgrounds

• Lab processes ideal fit for lean 6 tools - Raw materials - Packaging materials - Bulk & finished product - Sample preparation - Methods

• Staff development

• Re-deployment

Lean Six Sigma (n): a managerial approach that combines Six Sigma methods and tools and the lean manufacturing/lean enterprise philosophy, striving to eliminate waste of physical resources, time, effort and talent, while assuring quality in production and organizational processes.

DESIGN

Example: Lean / flexible lab design for new factory

Successes

• Sampling process

• Lab workflow

• Laboratory layout

• Quality organization

• Lab workforce design

• Batch paperwork flow

• Batch release process

• Quality event management (QEM) process

Design (n): a. The purposeful or inventive arrangement of parts or details b. A particular plan or method

ALIGN

Key Learnings

• Different metrics Alignment

• Different goals Alignment

• Separate communications Alignment

• “Customer” “Supply Chain Partner”

• Quality products “consistent supply of quality products”

Alignment (n): 4. a state of agreement or cooperation among persons, groups, nations, etc. with a common cause or viewpoint.

Looking forward…

Continue to:

Align across the value chain

Leverage technology (instruments & systems)

Optimize workflows and processes

Maintain gains & ensure robustness of QA controls

Amway R&D: Using the Power of Science to help people live better lives.

12 Amway R&D: Using the Power of Science to help people live better lives.

Thank You

Tom Hines Dept. Manager - Ada Operations QA Amway Corporation tom.hines@amway.com