The Future of Quality Management Systems -

Transcription

1 The Future of Quality Management Systems - Using Technology to Your Advantage Bill.Horricks@HorricksManagementGroup.com

2 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

3 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

4 The pace of technology change An engineering example - circa 1614 Logarithms are extremely useful when it comes to the multiplication or 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

5 The pace of technology change An engineering example - circa 1614 x = 2 and y = 3 log(xy) = Log(2) + log (3); = Look up in you log table and find the log(6) = 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

6 The pace of technology change An engineering example circa 1624 to 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

7 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

8 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

9 The Future of Jobs 9

10 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

11 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

12 Source: Future of Jobs Report, World Economic Forum 12

13 The Future of Jobs What s it mean? Top 10 skills are changing Source: Future of Jobs Report, World Economic Forum 13

14 The Future of Jobs What s it mean? Automation can enable businesses to improve performance: Reducing errors Improving quality, safety, speed and convenience Achieve outcomes that go beyond human capabilities Source: A Future That Works, McKinsey Global Institute 14

15 The Future of Jobs What s it mean? Source: US Bureau of Labor Statistics, McKinsey Global Institute analysis 15

16 The Future of Jobs How quickly? 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 Source: A Future That Works, McKinsey Global Institute 16

17 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

18 The Future of Jobs What s it mean? Source: US Bureau of Labor Statistics, McKinsey Global Institute analysis 18

19 The Future of Jobs What do we do next? Develop new skills For the New Roles Managing and developing people. Applying expertise to decision making, planning, and creative tasks. Interfacing with stakeholders. 19

20 The Future of Jobs What do we do next? Take a look at your activities from a value-added-to-thecompany viewpoint Move to quadrant II use technology to minimize I and III Source: Stephen Covey, 7 Habits of Highly Effective People 20

21 The Future of Jobs What do we do next? 21

22 Not Important Important The Future of Jobs What do we do next? Urgent I Short term corrective action Expediting SCAR Management reports NCR CAR Customer feedback Accident/incident reporting Inspections (WIP; Final) RMA Not Urgent II Long-term corrective action Preventative Action Risk Analysis Continual improvement Training Calibration Maintenance Document revisions Vendor Management Revising Procedures 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 addiction Meandering meetings interruptions multi-tasking disorganized workspace personal communications/web surfing 22

23 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 Calibration, Maintenance and Repair Receiving, In-Process and Final Inspection Reports and Graphs Risk Analysis and Evaluation Customer Special Requirements Customer Supplied Product Management Individual User's Home Page Master Calendar of Events and Actions Due 23

24 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 Calibration, Maintenance and Repair Receiving, In-Process and Final Inspection Reports and Graphs Risk Analysis and Evaluation Customer Special Requirements Customer Supplied Product Management Individual User's Home Page Master Calendar of Events and Actions Due Database Management and Creation Tools Accident/Incident OSHA Reporting Food Safety HACCP 24

25 The Future of Jobs The Opportunity Source: Quality Starts with Me: The Journey from ISO 9001:2015 Conformance to Performance, LNS Research 25

26 The Future of Jobs The Opportunity 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. Source: Quality Starts with Me: The Journey from ISO 9001:2015 Conformance to Performance, LNS Research 26

27 Quality Management Systems What they provide ISO 9001:2015 perspective IATF perspective Concerns: The Cloud & On-line Document storage Cost (initial, implementation, recurring) 27

28 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

29 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

30 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

31 What QMS Provides The opportunity Best Practices Required for IATF 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 Source: Automotive Spotlight, LNS Research 31

32 What QMS Provides The opportunity Best Practices Required for IATF 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 Source: Automotive Spotlight, LNS Research 32

33 What QMS Provides The opportunity Best Practices Required for IATF 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 Source: Automotive Spotlight, LNS Research 33

34 What QMS Provides The opportunity Best Practices Required for IATF 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 Webbased portal O P Risk: ability to visualize risk factors across operations O P Risk: formal risk management framework established O P Source: Automotive Spotlight, LNS Research 34

35 What QMS Provides The opportunity 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 Improvement in Operating Income (per $1B revenue) $0 $10M Source: Automotive Spotlight, LNS Research 35

36 What QMS Provides Summary IATF 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 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

37 Quality Management Systems Concerns: The Cloud & On-line Document storage Cost (initial, implementation, recurring) 37

38 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

39 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

40 Cost Source: QMS software on the cloud factors for considerations, Ramesh Krishnakumar 40

41 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

42 QMS The Choice is Yours 42

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