Measuring Management System Effectiveness: Pitfalls and Opportunities ASQ-Houston May 17, 2018

Transcription

1 Measuring Management System Effectiveness: Pitfalls and Opportunities ASQ-Houston May 17, ABS Group of Companies, Inc. All rights reserved. Cy X. Sharp Manager, Global Sustainability

2 Company Mission The mission of ABS Group of Companies is to be a leading global provider of technical services that better enable our clients to operate safely, reliably, efficiently, and in compliance with applicable regulations and standards. We are focused on adding value to the industries we serve and strategically capturing synergies with ABS Employees 30 + Countries 40 + Years Parent company, ABS, is the world s leading marine and offshore classification society, founded in 1862

3 Our Markets OTHER MARKETS Aerospace and Automotive Commercial Properties Insurance and Financial Services Mining and Metallurgical Pharmaceutical and Life Sciences Process Industries and Manufacturing Transportation Our Service Lines ADDITIONAL FOCUS ON TECHNICAL INSPECTION & VERIFICATION SAFETY, RISK, & COMPLIANCE ASSET PERFORMANCE OPTIMIZATION MANAGEMENT SYSTEM CERTIFICATION Process Efficiency Risk Management Security Sustainability Trade and Compliance Training and Competence

4 Effectiveness and Measurement Processes

5 Statistical Trends in Effectiveness Sustainability audits performed each year. 57% of nonconformances are raised based on system ineffectiveness.* 31% of nonconformances are raised due to the inability to successfully understand and/or determine effectiveness in measurable processes.* *ABSG MORSI

6 RC RCMS Lack of understanding around what effectiveness truly means vs. its definition. RC Effectiveness - extent to which planned activities are realized and planned results achieved (RC14001 S11, A7; RCMS S7). Results of internal audits rarely measure the contents of planning, realization of activities and achievement.effectiveness!

7 Effectiveness Processes and their Pitfalls Critical Measurable Process Leadership and Management Review Common Pitfalls Blindly trusting metrics (is your decision made tomorrow the right one?) Reviewing only metric summaries and not the trends within the metrics, including their effectiveness. Planning Seeing the Plan as an End in Itself. Measuring the intended results and not if the activities were realized. Competency, Communication and Awareness Believing records of tests and communication determine effectiveness.

8 Effectiveness Processes and their Pitfalls Critical Measurable Process Common Pitfalls Documented Information Lack of evidence that effectiveness has been measured (other than a management review statement). Performance Evaluation Believing that M&M results are only goal centric. Internal audits (compliance and system) overuse the Checklist approach. Improvement Actions assigned are not risk based. A complete status is unknown due to multiple action processes being utilized. Effectiveness of Actions is random and/or inconsistent.

9 Quotes what we measure shapes what we collectively strive to pursue and what we pursue determines what we measure Report by the Commission on the Measurement of Economic Performance and Social Progress Operational effectiveness and strategy are both essential to superior performance. Michael Porter

10 Measurable Effectiveness Processes and their Opportunities Critical Measurable Process Planning (Programs to achieve risks, opportunities and performance) Proven Best Practice Opportunities Plans should specify how effectiveness will be determined. Plans should clearly define the frequency and type of measurement which are to be applied. Measuring effectiveness of processes from Plans should include the results of both planned activities and planned outcomes. We should monitor the progress of a plan and audit the realization of activities within the plan.

11 Measurable Effectiveness Processes and their Opportunities Critical Measurable Process Competency, Communication and Awareness (Knowledge, Training and Decisions) Proven Best Practice Opportunities Mentors document verification of effectiveness after a predetermined period of time. Employee participation in activity based programs to highlight where to validate effectiveness Follow-through post communication to verify effectiveness (give and get understanding). Evaluate learning programs, not just attendees.

12 Measurable Effectiveness Processes and their Opportunities Critical Measurable Process Performance Evaluation (Internal Audits) Proven Best Practice Opportunities Please, step away from the Checklist! Adopt a Process Audit approach. Audit the relevant processes utilizing defined approaches (PDCA, IPO and TD). Audit the Effectiveness of individual processes AND their interface with associated processes (where from, where to). Identify the validation necessary to assure effectiveness and efficiency of the processes and system (know how far to drill down).

13 Measurable Effectiveness Processes and their Opportunities Critical Measurable Process Improvement (Actions, Corrective Actions) Proven Best Practice Opportunities Identify all processes with Action Item outputs. Determine those Action Processes that are directly associated with the QMS and QMS performance. Move toward a consolidated risk-based Action system (SharePoint, Intranet). Ensure methodologies of trending the types of Actions and their associated root causes. Best to have Action owner as the closer. Assign effectiveness activities based on risk.

14 The Success of Effectiveness With What? Individually Monitor (Process Evaluation) With Who? Inputs Process Outputs Outcomes Impact How? Process Audit Effectiveness Evaluation What Measurement?

15 Cy X. Sharp Questions? Thank You! 2017 ABS Group of Companies, Inc. All rights reserved.