1 ”You get what you measure” or not? Challenges for fact-based quality management 15.3.2008 Juhani Anttila Venture Knowledgist – Quality Integration www.QualityIntegration.biz , [email protected]These pages are licensed under Creative Commons Nimeä 2.5 lisenssi http://creativecommons.org/licenses/by/2.5/deed.fi
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1
”You get what you measure” or not?
Challenges for fact-based quality management
15.3.2008
Juhani AnttilaVenture Knowledgist – Quality Integrationwww.QualityIntegration.biz , [email protected]
These pages are licensed underCreative Commons Nimeä 2.5 lisenssi
DOING:• Deploying the approachand achieving the results• Controlling operationalperformance• Corrective actions
A P
C D
P = Planning
D = Doing
C = Checking
A = Acting
Applying PDCA model:
• Rational control (operational)
• Continual rational small step
improvement (operational),
“Kaizen” approach
• Innovative breakthrough
changes (strategic) (***)
(*) Deming / Shewhart Cycle (**) ISO 9000 (***) Dr. Shiba
All three PDCA loops modes and
four PDCA phases are strongly
information / knowledge dependent
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Control of the business activities
- feedback
Operations
(Business processes)
Feedback
Tfb
Top
Business
requirement
input
Business output
Notes:
• Requirements for control :
Throughput times Tfb<<Top
• ”A decision must be made
at lowest possible level in
the organization and as close
as possible to where its
outcome will be executed.”
(Peter Drucker)Target
1847/26.2.2008/jan (Ref.: Bode, Asby)
Business
control
input
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Traditional ”quality tools” have a long history and are very strongly related with data prosessing andmanagement of business operations. Assortment of the methods may seem confusing, despite that theyhave been arranged into different groups such as Seven basic quality tools, Seven new management andplanning tools, 127 tools, Kaizen tools, SixSigma tools, etc. tools. These tools include e.g.:
Data analysis methods:•Statistical tests•Variance analysis•Regression analysis•Design of experiments•Z-score analysis•Value analysis
Traditional quality tools
Recommendation: Organizations should establish and maintaintheir tool sets for quality management, “Business excellence toolkit”, as well as the measurement and information management atlarge.
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Enablers criteria
Category 4: Measurement, analysis, and knowledge management:
!Measurement, analysis, and improvement of organizational performance
(Assessment area 4.1)
!4.2 Management of information, information technology, and knowledge
(Assessment area 4.1)
Results criteria:
Category 7: Results
!Product outcomes (Assessment area 7.1)
!Customer-focused outcomes (Assessment area 7.2)
!Financial and market outcomes (Assessment area 7.3)
!Workforce-focused outcomes (Assessment area 7.4)
!Process effectiveness outcomes (Assessment area 7.5)
ZEF tool is applicable for:• All kinds of quality-related performance evaluation, feedback and surveyapplications
!E.g. 3-In-1 assessment scheme that combines Malcolm Baldrige model,EFQM model and ISO 9000 and is easy to tailor to specific business aspectsor organizational strategic priorities. Examples include modifications for
!Health services quality management (CEN/TS 15224)!Food safety management (ISO 22000)!Information technology service management (ISO/IEC 20000)
• Other business related assessments needs including!Innovations evaluation!Risk, vulnerability and threat analyses!Strategy analyses!Customer lead surveys
• Other general e.g. social, entertainment, etc. applications including!National innovation policy surveys!Parliamentary / presidential election comparisons!Education and school evaluations!Idols rating
Category 4: Measurement, analysis, andknowledge management1. We follow up fulfilment of targets anddevelopment of performance on company andprocess levels with adequate measures andindicators.2. We follow up effectiveness and efficiency ofour business processes.3. We have easily available analyzed andcurrent information on performance of ourcompany and its development against targetsand other references.4. Our real-time internal accounting operatesin advance.5. Our employees measure, analyze andevaluate quality of their own work in order tomake decisions and initiate improvementactions for their work in line with ourcompany-wide plans. …
… Etc. other assessment items
Assessesment scheme “3in1”: EFQM, Malcom
Baldrige and ISO9000 combined in one scheme
Results of ZEF evaluations (“3-in-1”)
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Results of ZEF evaluations
3334/.20.8.2007/jan
30
Statistical inferences from ZEF evaluations
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Detailed business information is obtained from ZEF raw data through statistical treatments.All individual respondent answers to the query items in the ZEF evaluations are recorded asseparate data pieces that are then used for statistical analyses as needed:
! The basic ZEF report shows the means and standard deviations of all respondents’answers per query items in one or two dimensions as needed.
! The result data may be normalized according Z-scored transformation that is useful toemphasize relative differences among query items.
! Answers from respondents may be grouped in arbitrary way or presented asindividual answers.
! Results of different ZEF evaluations, e.g. of different points in time, may be comparedby using ZEF’s “comparison engine” function.
! Raw data of evaluations may be presented in the formats of Excel (.xls) or"Concurrent Versioning System" (.cvs) in order to facilitate the use of moresophisticated statistical tools, e.g. SPSS, for data analyses.
ZEF tool’s interactive user-interface enhances user’s deliberation when he/she is respondingto the query items and also enhances understanding the relative differences among queryitems. That makes answering more motivated and justified.
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Z-score transformation
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Z-score for an item indicates how far and in what direction that item deviates from its distribution's
mean expressed in units of its distribution's standard deviation. The z-score transformation is such
that if every item in a distribution is converted to its z score, the transformed scores will have a
mean of zero and a standard deviation of one.
Z-score transformation is especially useful when seeking to compare the relative standings of
items from distributions with different means or different standard deviations.
1. Competitiveness and success of all organizations are based on right business relatedinformation and knowledge on time.
2. Impressive business phenomena and their nature including stochastic features should betaken into account in planning business performance measurements.
3. Business related measurements and information may have many different purposes.4. One should recognize vital few valid subjects for business performance measurements.5. Measurements should be based on sound methodologies and effective measuring tools.6. Observed data should be understood in the business context and also data’s statistical
viewpoints should be noted.7. Tacit knowledge and explicit information should be brought together in making
conclusions and activating managerial measures.8. Interactive information technology gives remarkable advantage and serves as an
extension of our body and senses both in making observations and in using informationwithin business communities.
9. Cooperation of quality and statistics experts is obviously useful.
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Overall quality of a network
3464/15.2.2008/jan
S
A A
Si
j
Overall quality of a network Qvm:
Degree to which the network fulfils needs andexpectations of all network members:
- m members in the network
- Each member gets benefits (Si) but alsoloses something (Ai).