quality performance of your business management system ohio minority supplier development council...

Quality Performance of your

Business Management System

Ohio Minority Supplier Development Council

Centers of Excellence Meeting 6-8-15

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2 SR Company Confidential

Introduction:

Collin Johnson

Director of Quality Performance

Standard Register Co.

Career: Production, Logistics, Operations, Quality

Safety, Food, Automotive/Agricultural, Medical, Communications

Education: BS Management Science, Wright State University

MBA, Concentration in Operations Management, Wright State University

Adjunct Instructor: Statistics, Quality and Operations, Wright State University

LinkedIn: Collin Johnson

E-Mail: [email protected]

Phone: 937-221-2761 (W)

937-215-9136 (C)

mailto:[email protected]


Not a “Quality Management System”

It is a Business Management System:• Quality is not a part of the system, it is how well your business performs in the

eyes of the stakeholders

• Customers, employees, suppliers, community

• It IS your reputation

• Leadership starts at the top.

• But HOW do you create a system that is performs?

• Approach today:

− Strategic:

− Tactical:

− Recommendations:


Disorganization through Growth

Complex interactions and cross over of information, projects and metrics developed over time leads to silos that are independent and not strategically directed.

Enterprise Delivery Business Solutions Healthcare OE Legal IT FinanceDelivery Revenue GenerationRevenue Generation HR Compliance ERP ROIQuality Delivery Delivery Facilities Investors SmartWorks Treasury

Supply Chain Quality Quality Branding Communication TaxCritical Communications Customer Relations Customer Relations Safety Audit

Marketing InvestorsDemand Publishing ePMOLabels and Coatings Projects

Marketing and Supply Chain POC

WarehouseSustainability


Top Down Approach from the beginning

1. Executive Level. Culture, Mission, Vision, Policy, Commitment and Performance objectives:

2. Standard of Excellence. Requirements to standards and customer expectations

3. Procedures by process. Defined broad requirements and objectives.

4. Work Instructions and defining objectives.

5. Records: Proof / Auditing


Executive Level: Culture (Strategic)

• Establish your mission, vision and cultural belief system:

• Clearly defined purpose that is transferable to all stakeholders:

• What is it that you do?

• Why do you do it?

• How does it contribute to society?

• Safety, Quality, Productivity. In that order.


Executive Level: Culture (Tactical-Standard Register Example)

Our Vision

To be trusted by the world's leading organizations to build and protect their reputations.

Our Values (ICARE)

Integrity: We are honest in everything we do, upholding the highest standards of ethical behavior.

Candor: We share ideas and feedback openly and constructively. We are willing to admit our mistakes and share them as learning opportunities.

Accountability: We do what we say we’re going to do, fulfilling our obligations and delivering results.

Respect: We celebrate diversity in ideas and approaches and treat everyone we encounter with care and concern.

Excellence: We are driven to attain the highest level of performance in everything we do. We demonstrate an innovative spirit and a determination to be the best.


Our Behaviors

Innovative: We leverage our collective imagination and individual creativity to find the best solution for each and every customer.

Agile: We have the flexibility to proactively adapt our operations to serve our target markets and individual customer needs.

Confident: We are experts in the markets we serve, firmly positioned to bring unique value and resources to our customers.

Decisive: We are disciplined in structure, process and content, enabling swift and accurate decision-making across the business.

Fun: We enjoy and celebrate every aspect of our business experience, creating an environment that is lively and vibrant.


QUALITY COMMITMENT



Globus Printing and Packaging Inc. is committed to being a leader in the printing and packaging industries by providing the following:

Goal number one is customer satisfaction through high quality and dependable delivery.

Leadership that inspires continuous improvement at all levels of the organization.

Opportunities for internal and external growth and longevity for all partners.

Business management processes that concentrate on safety, quality and productivity.

Unwavering dedication to our community and our fellow associates.

Standardized yet adaptable processes to meet customer and industry compliance.

Executive Level: Culture (Tactical-Supplier Example)


• Relevant to your company’s size.

• Memorable

• Simple

− K.I.S.S. method

• Acronyms

• Awareness and repeatability

• Post at all doorways

• Website / Intracompany

• Wallet cards

• Orientation training

• Yearly refresher

• Begin each meeting with safety and quality.

Executive Level: Culture (Recommendations)


Standards of Excellence (Strategic)

• What are your requirements?

• Safety / Environmental

• Quality

• Productivity

• Legal

− Local, state, federal, international

• Customer standards or requirements?

• ISO 9001, ISO/TS 16949, ISO 14001, ISO 13485, ISO 27001 etc.

• Industry Leading standards?

• FSC / FSI, SSAE 16, SOC2

• Governmental standards?

• Sarbanes-Oxley, GAAP, EPA, OSHA, DOL, etc.


Standards of Excellence (Tactical)

• Create a master list of requirements.

• Previously known as a “Quality Manual”

• Business Management System document:

• Links the expectations to how you meet them.

• Example:

− ISO 9001:2008 requires 6 documented procedures

~ Process should clearly show linkage of requirement (ISO 9001) to a list of 6 documented procedures

− Customer requirements may specify another requirement such as “supplier development”.

~ Document should again clearly show linkage of requirement to method.

• Total business requirements. Not just safety, not just environment, not just quality. All requirements in one easy to use process


• You don’t need a manual, you need a linkage.

• Appropriate to the size of your company

• Can simply be an index or spreadsheet.

• Living document:

• Changes should be continuous. Review no less than monthly. Put a reminder in your Outlook to review.

• Source to determine if your ROI is enough.

• Requirements often are not captured through activity based costing.

• Overhead

• Are you spending more in compliance than what the revenue generates?

• ISO 9001:2008 registration can be $5,000 per year for a small company to $100,000 per year for multi-site companies.

• Define risk as low/medium/high or 1-5 or 1-10.

• What would happen if “X” occurred?

• OSHA may lock your doors but ISO 9001 only asks for corrective action.

Standards of Excellence (Recommendations)


Procedures by Process (Strategic)

• What are your processes?

• Everything is a process. An input is brought in, an activity is performed, an output in generated.

• High level view of your organization first.

• Flow chart of the process from beginning to end.

− If it looks like spaghetti then it’s too detailed.

− Anyone should be able to look at it and understand what your company does.

• Company requirements by process next.

• Again, keep it simple.

• Turtle diagram

• Resource allocations

• Disaster Recovery. If it fails what do you do?


Procedures by Process (Tactical)


Procedures by Process (Recommendations)

• Visual representation is best

• Comprehension is not consistent

• Identify needs by resource

• Man, Material, Machine, Measurement, Method, Mother nature

• Basically who, what, when, where, how and why.

• What is your backup plan?

• Procedure by process are overarching company requirements that everyone follows.

• Educate:

• Training is not effective if the result if not obtained.

• Why is it important to them.

− How does it satisfy customer requirements.

− How does it satisfy legal or industry requirements.

− Sometimes why it is important for continuing employment


Work Instructions (Strategic)

• Consistency from one employee to the next is necessary.

• Tribal knowledge leads to loss of consistency.

• Don’t say you told them so unless you documented and trained to it.

• Source of compliance to legal and industry requirements.

• Auditable proof of implementation.

• OSHA requirements

• EPA requirements

• Accounting, finance

• Things that put you in the news or in jail.

• All of your employees are an extension of you and represent your reputation.

• Detailed contingency at this level.

• If “A” occurs, do “B”.


Work Instructions (Tactical)

• Work instructions again have to be simple.

• Pictures are worth a thousand words

• Universal language

• John Deere Greenville TN. uses monitors at each work station. Employees can move from station to station with ease.

• Training and education is key.

• Failure to follow is opportunity to retrain.

• Keep at point of use.

• Not needed anywhere else.

• Who is responsible?

• Not for blame but rather for ownership to improve or correct.


Work Instructions (Recommendations)

• Should not be created by you but rather the owners of the process.

• No one ever washes or waxes a rental car (James B. Swartz)

• Computers and/or videos at each work station is ideal.

• Cost is insignificant compared to customer dissatisfaction and loss of reputation.

• If computers and videos are not feasible then control by laminating instructions and securing at each work stations.

• Ease of use, location most important.

• Professional services are no different than assembly lines.

• Everything is a process. An input, an activity and an output.

• Review/update at least once per year or when changes occur.

• Don’t try to review all at once. Set up requirements for your leaders to review one per week or some regular schedule (bi-weekly, monthly, quarterly etc.)

• Failure to establish and maintain will create Tribal Knowledge and loss of consistency.


Records (Strategic)

• Source of evidence for compliance to any and all requirements.

• Proper records retention (and destruction schedule) could be the difference for profits and freedom.

• Enron!

• Tax man cometh.

• OSHA, EPA

• Internal audit

• Don’t let someone else find your problems. Too late then.

• Consistent regularly scheduled audit program by peers within the company.

• Go deep.

• 2nd or 3rd party audits can supplement but should not be the only source.


Records (Tactical)

• Define where records are stored and secured.

• Security information.

• Employee information (CEO pay example)

• On-site versus off-site.

• Who has access.

• Audit, audit, audit.

• Process layered audits are great way to ensure compliance throughout the organization.

− Employees audit their own work records hourly.

− Supervisors audit employees work records daily.

− Managers audit supervisor work records weekly.

− Executives audit manager work records bi-weekly or monthly.


Records (Recommendations)

• Establish your frequency and don’t skip audits.

• Skipping them gives the impression that compliance and records are not as important as other things.

• Auditing drives consistency. You proactively identify gaps before they become tribal.

• Records are the source for goals and objectives.

• Your records are your data. Your data is your measurement process. Your measurements established your goals and objectives.

• You can’t improve what you can’t measure.

• You determine backup schedule for software but determine risk if lost.

• Use printed signatures instead of initials. Don’t allow signatures to become autographs.

• Use pens instead of pencils. Pencils can be changed. Pens require someone to explain why they changed the record. Could be instrumental in compliance.


Executive Summary:

• As leaders we must set the expectations.

• A clearly defined and documented business management system creates Quality. Quality does not create a business system.

• Risk is mitigated by a thoroughly defined process.

• Disaster Recovery plans should be documented by each process.

• Process performance is data driven. If you don’t create a system that creates records then you don’t have data.

• Don’t over complicate. Each procedure or WI should be no more than 2-3 pages.

• If you ever want to take a vacation, your processes have to be consistent. Consistency is created through education and documentation.

• Sometimes things are not black or white. We make decisions everyday that walk a fine gray line. If you have to make that decision, document and sign. Don’t simply tell them to not follow it this time. If you don’t follow the process, they won’t either. By signing it shows your commitment to the process to your employees and that decisions like these should only be make by those with authority to do so.


How do you do it? What will make the elephant bite back?

27

Websites:

• www.elsmar.com Quality blog for industry standards. Many FAQ responses from easy to complex.

• www.freequality.org Free quality documents and training standards.

• www.gembaacademy.com Website for various quality improvement tools. Free trial period. Several open videos on YouTube.

• www.qualitygurus.com Free online quality courses and famous management quotes.

• www.qualitydigest.com. On-line magazine for quality.

• www.bmgi.org Free Six Sigma training

• www.epa.gov Environmental Protection Agency

• www.osha.gov Occupational Safety and Health Agency

• www.fda.gov Food and Drug Administration

• www.iso.org. International Organization for Standardization (ISO standards)

• www.asq.org. American Society for Quality

• www.apics.org American Production and Inventory Control Society

• www.sme.org Society for Manufacturing Engineers

• www.nsc.org National Safety Council

SR Company Confidential

http://www.elsmar.com/

http://www.freequality.org/

http://www.gembaacademy.com/

http://www.qualitygurus.com/

http://www.qualitydigest.com/

http://www.bmgi.org/

http://www.epa.gov/

http://www.osha.gov/

http://www.fda.gov/

http://www.iso.org/

http://www.asq.org/

http://www.apics.org/

http://www.sme.org/

http://www.nsc.org/


Terms to Google:

• Edward Deming. 14 points on Quality Management.

• Phillip Crosby. 14 step program for quality improvement.

• Joseph Juran. www.juran.com

• Shewhart Cycle. Plan, do, check, act (PDCA)

• The Ten Biggest Quality Mistakes.

• ISO 13484 (Medical)

• ISO 27001 (Information Security)

• ISO 9001 (Quality systems)

• ISO/TS 16949 (Automotive)

• ISO 14001 (Environmental)

• OHSAS 18001 (Safety)

• ISO 22000 (Food safety)

• TL 9000 (Telecommunications)

• AS9000 (Aerospace)

• REACH/Rohs (European recycling standards)

http://www.juran.com/


Questions:

• Industry specific standards?

• Corrective Actions?

• Training?

• Preventive actions / continual improvements?

• Auditing?

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