The Future of Quality Management Systems - Using Technology to Your - - PowerPoint PPT Presentation

The Future of Quality Management Systems -

Using Technology to Your Advantage

Bill.Horricks@HorricksManagementGroup.com www.linkedin.com/in/billhorricks www.cissoftware.com

The 3 Questions in Life

A Big Picture (CEO) Perspective

• What’s Happening?
• What’s It Mean? WIIFM
• What Do I/We Do Next?

The questions are easy… The answers, not so much

2

Overview

• The pace of technology change

– A historical perspective

• The Future of Jobs

– What’s happening now (WIIFM) – What’s it mean

• Quality Management Systems

– What we need to do next

3

The pace of technology change

An engineering example - circa 1614

Logarithms are extremely useful when it comes to the multiplication

• r division of numbers as they allow you to replace the

multiplication of two values, x and y, by the sum of their respective logarithms, log(xy) = log(x)+log(y)

4

The pace of technology change

An engineering example - circa 1614

x = 2 and y = 3 log(xy) = Log(2) + log (3); 0.3010 +0.4771 = 0.7781 Look up 0.7781 in you log table and find the log(6) = 0.7782 So…. 2 x 3 = 6 (approximately) Time consuming; bulky; prone to error; required expertise in using log tables; adding and subtracting is easier that multiplying and dividing.

5

The pace of technology change

An engineering example – circa 1624 to 1972

10 years later… until about 45 years ago Portable; permitted advanced calculations; faster results; relatively inexpensive; no “log table” skill required; this “technology” put a man on the moon

6

The pace of technology change

An engineering example

Big step forward in accuracy and speed; permitted advanced calculations; faster results; Shift in work from number crunching to problem solving; High initial cost ($395 in 1972 = $2,352 in

2017) but dropped rapidly; more

done with less; changed the way work is done.

7

The pace of technology change

• What was happening?

– Technology was being disruptive

• What did it mean?

– Old skills no longer needed/valued – Nature of work was changing – New skills are needed. Problem solving – More done with less

• What did they do next?

– Adopted the new technology to stay competitive

8

The Future of Jobs

9

The Future of Jobs

What’s happening today?

The meaning of work is changing Jobs are disappearing faster than they are being created Companies are struggling to attract people with the right skills

What’s it mean?

People worry that technology will threaten their livelihood The disruption of our work world is as dramatic as industrialization & urbanization These are forces we cannot alter.

What do we do next?

So… how do we stay ahead of the competition?

10

The Future of Jobs – What’s Happening

3 Fault Lines

1. Technology: Automation, AI, Big Data, IoT, mobile (WEF says possible net loss >5million jobs by 2020). 2. Talent: massive skills gap; education systems fallen behind. 3. Millennials: digitally savvy, different values, want purpose, flexibility, work-life balance, gig economy.

11

Source: Future of Jobs Report, World Economic Forum

12

The Future of Jobs – What’s it mean?

Top 10 skills are changing

Source: Future of Jobs Report, World Economic Forum

13

The Future of Jobs – What’s it mean?

Source: A Future That Works, McKinsey Global Institute

Automation can enable businesses to improve performance:

• Reducing errors
• Improving quality,

safety, speed and convenience

• Achieve outcomes

that go beyond human capabilities

14

The Future of Jobs – What’s it mean?

Source: US Bureau of Labor Statistics, McKinsey Global Institute analysis

15

The Future of Jobs – How quickly?

Source: A Future That Works, McKinsey Global Institute

QMS:

• 1. We have the

technology

• 2. It is low cost
• 3. Labour costs rising
• 4. Benefits can be

easily quantified

• 5. Facilitates

regulatory compliance

16

The Future of Jobs – What do we do?

• Embrace the new technologies to stay competitive
• Look for opportunities at the sector and company level

(companies that are digital leaders in their sectors have faster revenue growth and higher productivity than their less-digitized peers)

• By adaptable in terms of skills, activities, companies, and

even the sectors they work in (the US has captured only 18% of its potential – EU only 12%)

Source: A Future That Works, McKinsey Global Institute

17

The Future of Jobs – What’s it mean?

Source: US Bureau of Labor Statistics, McKinsey Global Institute analysis

18

The Future of Jobs – What do we do next?

Develop new skills

• Managing and developing

people.

• Applying expertise to

decision making, planning, and creative tasks.

• Interfacing with stakeholders.

For the New Roles

19

The Future of Jobs – What do we do next?

Take a look at your activities from a “value-added-to-the- company” viewpoint Move to quadrant II – use technology to minimize I and III

Source: Stephen Covey, 7 Habits of Highly Effective People

20

The Future of Jobs – What do we do next?

21

The Future of Jobs – What do we do next?

Urgent Not Urgent Important

I

Short term corrective action Expediting SCAR Management reports NCR CAR Customer feedback Accident/incident reporting Inspections (WIP; Final) RMA

II

Long-term corrective action Preventative Action Risk Analysis Continual improvement Training Calibration Maintenance Document revisions Vendor Management Revising Procedures

Not Important

III

Clerical non-value added (report generation, manual data entry) update meetings scheduling training manually updating calibration logs updating training records manually searching documents

IV

instant messaging e-mail addiction Meandering meetings interruptions multi-tasking disorganized workspace personal communications/web surfing

22

The Future of Jobs – What do we do next?

What is possible

Electronic Document Management Meetings, Agendas and Action Items Human Resource and Training Nonconformity Internal Auditing Manager Action Items Report Near Miss / Safety Work Order Inventory Management (Job, Kitting and Pick Tickets) Customer Feedback Vendor Management Sales and Marketing Corrective Action Risk Analysis and Evaluation Master Calendar of Events and Actions Due Calibration, Maintenance and Repair Customer Special Requirements Receiving, In-Process and Final Inspection Customer Supplied Product Management Reports and Graphs Individual User's Home Page

23

The Future of Jobs – What do we do next?

What is possible (with the right Integrated Management Software…)

Electronic Document Management Meetings, Agendas and Action Items Human Resource and Training Nonconformity Process Auditing Manager Action Items Report Near Miss / Safety Work Order Inventory Management (Job, Kitting and Pick Tickets) Customer Feedback Vendor Management Sales and Marketing Corrective Action Risk Analysis and Evaluation Master Calendar of Events and Actions Due Calibration, Maintenance and Repair Customer Special Requirements Database Management and Creation Tools Receiving, In-Process and Final Inspection Customer Supplied Product Management Accident/Incident OSHA Reporting Reports and Graphs Individual User's Home Page Food Safety HACCP

24

The Future of Jobs – The Opportunity

Source: Quality Starts with Me: The Journey from ISO 9001:2015 Conformance to Performance, LNS Research

25

The Future of Jobs – The Opportunity

Source: Quality Starts with Me: The Journey from ISO 9001:2015 Conformance to Performance, LNS Research

Why should you react differently to ISO 9001:2015?

• 1. ISO 9001:2015’s fresh approach to the relationship between top

management and quality presents a prime opportunity to reposition quality management with top management as a value center versus a cost center.

• 2. Industry data that shows the clear correlation between mature

quality management and performance. Quality leaders need no longer rely on axioms to discuss the value of mature quality management

• 3. The market will become more competitive in the wake of ISO

9001:2015, as others seize this opportunity to improve.

26

Quality Management Systems

• What they provide

– ISO 9001:2015 perspective – IATF 16949-2016 perspective

• Concerns:

– The “Cloud” & On-line Document storage – Cost (initial, implementation, recurring)

27

What QMS Provides – The opportunity

Best Practices Required for ISO 9001:2015 Compliance Minimally Compliant QMS Benefits

Closed-loop processes established to connect quality across design, manufacturing, and suppliers.

P P

Compliance processes are easily understood and documented.

P P

Cross-functional teams in place to manage quality across design, manufacturing, and suppliers.

P P

Formal audit management processes established to understand current compliance status and identify area for improvement.

P P

Process established to share compliance processes across functional areas.

P P

Quality is a top executive priority.

P P

Ability to identify, prioritize and quantify risk factors across operations

O P

Ability to track mitigation of risk factors across operations.

O P

Source: ODC Spotlight, LNS Research

28

What QMS Provides– The opportunity

Best Practices Required for ISO 9001:2015 Compliance Minimally Compliant QMS Benefits

Ability to visualize risk factors across operations.

O P

Formal risk management framework established.

O P

Integrated Quality Management Systems (Quality, Health & Safety, Environment)

O P

Real-time visibility of quality metrics in customer service, engineering, manufacturing.

O P

Automated Audit Management with software

O P

Automated Change Management with software

O P

Automated Document Control with software

O P

Automated Employee Training with software

O P

Automated Non-Conformances/Corrective and Preventive Action (NC/CAPA) with software

O P

Source: ODC Spotlight, LNS Research

29

What QMS Provides– The opportunity

Impact of Operational Excellence Recommendations Minimally Compliant QMS Benefits

% Successful New Product Introductions (NPI)

62% 72%

First Pass Yield

93% 96%

Improvement in Operating Income (per $1B revenue)

$0 $20M

Source: ODC Spotlight, LNS Research

30

What QMS Provides– The opportunity

Source: Automotive Spotlight, LNS Research

Best Practices Required for IATF 16949-2016 Compliance Minimally Compliant QMS Benefits

Ability to track risk factors across operations

P P

Ability to prioritize risk factors across operations

P P

Ability to quantify risk factors across operations

P P

Ability to track mitigation of risk factors across operations

P P

Closed-loop processes established to connect quality across design, manufacturing, and suppliers

P P

Compliance processes are easily understood and documented

P P

Cross-functional teams in place to manage quality across design, manufacturing, and suppliers

P P

Formal audit management processes established to understand current compliance status and identify area for improvement

P P

31

What QMS Provides– The opportunity

Source: Automotive Spotlight, LNS Research

Best Practices Required for IATF 16949-2016 Compliance Minimally Compliant QMS Benefits

Formal nonconformance / corrective and preventive action (NC/CAPA) processes established across company

P P

Process established to share compliance processes across functional areas

P P

Quality is a top executive priority

P P

Standardized escalation processes exist for supplier quality and non-compliance events

P P

Supplier scorecards established to measure and monitor performance

P P

Suppliers are included in design for quality initiatives

P P

Automation: automated audit management (with software )

O P

Automation: automated change management (with software)

O P

32

What QMS Provides– The opportunity

Source: Automotive Spotlight, LNS Research

Best Practices Required for IATF 16949-2016 Compliance Minimally Compliant QMS Benefits

Automation: automated complaint handling (with software)

O P

Automation: automated document control (with software)

O P

Automation: automated employee training (with software)

O P

Automation: automated NC/CAPA (with software)

O P

Automation: automated reporting (with software)

O P

Automation: automated supplier quality management (with software)

O P

Automation: implemented enterprise quality management software (EQMS)

O P

Real-time visibility: quality metrics in customer service

O P

33

What QMS Provides– The opportunity

Source: Automotive Spotlight, LNS Research

Best Practices Required for IATF 16949-2016 Compliance Minimally Compliant QMS Benefits

Real-time visibility: quality metrics in engineering

O P

Real-time visibility: quality metrics in manufacturing

O P

Real-time visibility: quality metrics in supplier performance

O P

Real-time visibility: statistical analysis used to monitor and analyze real-time supplier quality data

O P

Real-time visibility: supplier quality data collected automatically through Web- based portal

O P

Risk: ability to visualize risk factors across operations

O P

Risk: formal risk management framework established

O P

34

What QMS Provides– The opportunity

Source: Automotive Spotlight, LNS Research

Impact of Operational Excellence Recommendations Minimally Compliant QMS Benefits

On-time delivery

80% 97%

First Pass Yield

93% 98%

Products in compliance

95% 99%

Supplier defect rate

0.020 0.013

Improvement in Operating Income (per $1B revenue)

$0 $10M 35

What QMS Provides – Summary

IATF 16949-2016 Impact of Operational Excellence Recommendations Minimally Compliant QMS Benefits

On-time delivery

80% 97%

First Pass Yield

93% 98%

Products in compliance

95% 99%

Supplier defect rate

0.020 0.013

Improvement in Operating Income (per $1B revenue)

$0 $10M

ISO 9001:2015 Impact of Operational Excellence Recommendations Minimally Compliant QMS Benefits

% Successful NPI

62% 72%

First Pass Yield

93% 96%

Improvement in Operating Income (per $1B revenue)

$0 $20M 36

Quality Management Systems

Concerns: – The “Cloud” & On-line Document storage – Cost (initial, implementation, recurring)

37

On-line document storage

• 80% of documents are created electronically, but paper or

"hard copies" are still primarily sent, stored and retrieved.

• 40% to 60% of the average office worker's time is spent

handling paper.

• 12% to 15% of an organization's overall expenses, or 20% to

45% of its labour overhead, are related to document filing & retrieval.

• Approximately 7-8 % of paper documents are lost. The average

cost to recreate a lost document is US$250.

• 3% of documents are misfiled. Finding a single misfiled

document costs US$120

Source: SCANinmotion.com

38

On-line document storage

Advantages:

• 1. Cost
• 2. Invisibility
• 3. Security
• 4. Automation
• 5. Accessibility
• 6. Syncing
• 7. Sharing
• 8. Collaboration
• 9. Protection
• 10. Recovery

WIIFM? Free your time to focus on your business:

• Improving customer service
• Increasing collaboration
• Reducing retrieval time
• Reducing response time

39

Cost

Source: QMS software on the cloud – factors for considerations, Ramesh Krishnakumar

40

Summary

• The pace of technology change

– A historical perspective

• The Future of Jobs

– What’s happening now (WIIFM) – What’s it mean

• Quality Management Systems

– What we need to do next

41

QMS – The Choice is Yours

42

bill.horricks@HorricksManagementGroup.com https://www.linkedin.com/in/qualityexpert/ +1 (519) 856-4329

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43

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