Achieving Organizational Excellence Is your organization ready?

Achieving Organizational Excellence

Is your organization ready?

Presented by:

Milton Krivokuca

How can organizational excellence be accomplished?

MSys +MStr + QMS = OE

Where do we begin?

Problem or Opportunity?

Organizational Assessment

Common Management Systems MRP (ERP) JIT (Kanban) Theory-of Constraints (Drum-Buffer-Rope) Hybrid Systems

MRP (ERP) Forward looking system Predicts the need to manufacture products Works well in an environment with uncertainty Effective in handling custom orders and process changes

MRP (ERP) Highly data dependent Requires a well established infrastructure

JIT (Kanban)

Almost opposite of MRP Eliminate or reduce process uncertainty Very reactive system Very little preplanning required Stable and predictable market

JIT (Kanban) Fails quickly in a highly volatile environment Extensive product or process changes cannot be handled

effectively

Theory-of-Constraints Basis of identification and effective management of a

constraint Assumes constraint will be identified and managed long

enough to be effective

Theory-of-Constraints

Not effective if the constraint cannot be identified or managed

Works better with a more stable process

Hybrid Systems

Combine the most applicable aspects of the MRP, JIT, and TOC to suit your particular situation

Requires an understanding of all three and the ability to effectively implement and manage the hybrid

Organizational Structures Concepts:

Unity of commandLine and staff authoritySpan of control

How work activities are organized:What product or service is being providedHow customers are being servedWhat geographic area is coveredWhat is the product/service to customer process flow

Organizational Considerations Strategy Size Technology Core Competencies Regulatory/Legal Union Competition Workforce Facilities Environmental factors Managerial hierarchy

Purpose of a Management System Implement the chosen strategy of an organization

by focusing on resources critical for organizational success

Establish requirements and guidelines that should provide reasonable assurance that outputs from the system will be as expected

Need to align processes to integrated systems of processes providing value to the customer

Management Systems Overview

Core Processes Key Supporting Processes Management System

Core Processes

Inputs Transformation Outputs

Key Supporting Processes

Maintain the awareness of related processes such a regulatory and various infrastructure related processes

Monitoring and reporting

Management System Reporting Processes

Document control Record control Auditing

Quality Management Systems

SPC TQM Quality Circles ISO Baldrige Lean Six Sigma

Statistical Process Control

Provides quantitative representative of a process or activity.

If you can measure it, you can improve it.

Total Quality Management (TQM):

Customer-focused Total employee involvement Process-centered Integrated system Strategic and systematic approach Continual improvement Fact-based decision making Effective communication

Quality Circles

Team work Empowerment Beginning of systems thinking Good starting point Resources in place

ISO ISO 9000:2000 Series:

Standards and guidelines Eight principles Three booklets:

Q9000-2000 Fundamentals and vocabulary Q9001-2000 Requirements Q9004-2000 Guidelines for performance improvements

Other ISO 9000 Standards: Q190115-2004 Environmental QS9000 (ISO/TS 16949) Automotive ISO 13485:2003 Medical devices

ISO

Other Standards: JCAHO (healthcare) NCQA (managed care) CE mark (product safety) GMP (medical device, pharmaceuticals, food) SA8000 (social accountability) TickIT (software) SEI capability maturity model (software)

ISO

Data driven Audit based Disciplined management system

ISO 14001

Environmental Standard Good starting point Regulatory reporting already in place Not as complex as ISO 9000 series

Malcolm Baldrige Quality Award

Seven areas:LeadershipStrategic planningCustomer and market focusMeasurement analysis and knowledge managementHuman resource focusProcess managementResults.

Lean Continuous elimination of waste Meeting (or exceeding) customer’s expectations for cost, quality,

delivery, and suitability of products and services “Delighting the customer” means providing the best quality,

service, and delivery at fair market price

Six Sigma

A structured approach (data driven) to improve an

organization’s effectiveness and efficiency.

Six Sigma Success Formula Understand the formula Q x A = E Define a stakeholder Understand that resistance to change is natural Identify four types of resistance Understand the stakeholder’s involvement Understand threats to the system from modifications

Organizational Excellence

begins with

Effective Business Metrics

What are our business metrics? What are our measurement criteria? Do the metrics link to the criteria? If they do not correlate, what must we change?

MSys +MStr + QMS = OE

MRP/ERP JIT/Kanban TOC Hybrid

SPC High High High High

TQM Mod Mod Mod Mod

Quality Circles

Low High Mod Mod

ISO High Low Low Mod

Baldrige High Mod Mod High

Lean Low High High High

Six Sigma Mod Mod High High

Moving forward:

Are you able to select and implement the best QMS to align your organization’s system and

structure?

Achieving Organization Excellence

Questions??

Milt KrivokucaQuality Program Coordinator

California State University Dominguez Hills

[email protected]