ISO 9001: What s in it for me? Mary McDonald, CEO/CTO McDonald Consulting Group

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1 ISO 9001: What s in it for me? Mary McDonald, CEO/CTO McDonald Consulting Group

2 About Mary BS Environmental Engrg; MS Industrial Ops Quality, Environmental, Health/Safety professional with more than 25 years experience Multiple certifications in these fields 4 books, 40+ articles, 100+ presentations Heads a consulting group that specialized in process improvement / Lean Relatively new to the AR industry

3 Brief History ISO = Greek - equal (remember isosceles triangles, where all angles/sides are equal?) ISO provides standardization, so it doesn t matter who uses it it s always the same

4 Examples of Standardization Kodak TX 36, Tri-X Black & White Negative (Print) Film (iso-400)/ 10 Pack The design principles of ISO generalpurpose metric screw threads ("M" series threads) are defined in international

5 Brief History 1950 s - MIL-Q-9858A 1970 s BS ISO 9001 series Updated regularly Has developed and evolved over time Originally developed to eliminate barriers to trade!

6 Why Bother? I m doing OK without this Sure you are but can t you benefit from more rigor in the system? And someone independent to assure that everyone s doing it the same way? It s gonna cost me money Yes, it is as does electricity, supplies, etc. I don t have time for this The time you ll save by streamlining more than makes up for the implementation time It s the flavor of the month There s 1.2 MILLION registrations worldwide

7 Industry-specific modifications Other industries have adopted, and modified, ISO 9001 for their own customer base: AS 9100 Aerospace QS 9000 / ISO/TS Automotive TL 9000 Telecom ISO Medical Device These have all been in place for decades

8 Goals vs. Reality How are you doing healthwise? That s great how are you doing with that? I try to eat right, and exercise 3-4 times/week I have desserts 2-3 times a week, eat lots of fried food, and I can t remember the last time I did anything more than 12 oz. curls

9 Goal vs. Reality Our goal is to be more Efficient Profitable Error-free Our reality is that we Like the way things are right now Are not sure that we want to expend any time, money, or effort on a new program Want to know, upfront, whether this works or

10 Goal vs. Reality Goal: To be the pre-eminent supplier of parts to the geography/industry Reality: Broad brush painting

11 The Benefits International Standards are strategic tools to help companies tackle some of the most demanding challenges of modern business. They ensure that business operations are as efficient as possible, increase productivity and help companies access new markets. Benefits include: Cost savings - help optimise operations and therefore improve the bottom line Enhanced customer satisfaction - help improve quality, enhance customer satisfaction and increase sales Access to new markets - help prevent trade barriers and open up global markets Increased market share - help increase productivity and competitive advantage

12 Strategic Benefits Having a documented repeatable system Know the Flow Parts Waste People Roadmap for new folks Documented Easy to follow Repeatable = Less training time!

13 Benefits to Customers Improved quality and service Delivery on time Right the first time attitude Fewer returned products and complaints Independent audit demonstrates commitment to quality

14 Common Customer Requirements More REPEATABLE processes More CONSISTENT processes More ERROR-FREE processes ACCURATE and ON TIME deliveries

15 Common Customer Complaints Never know what I am getting shipment to shipment (repeatability) Never know if it s going to be on time or late (OTD) Not sure what the quality level is (consistency) Don t feel a strong sense of trust in my supplier (loyalty)

16 ISO 9001 Framework ISO 9001 has 8 Quality principles 1. Customer focus 2. Leadership 3. Involvement of people 4. Process approach 5. System approach to management 6. Continual improvement 7. Factual approach to decision making 8. Mutually beneficial supplier relationships

17 Process Approach based on PDCA Act Start PDCA: Plan Do Check Act Checking/ Corrective Action Management Review Continual Improvement Quality Policy Quality Planning Plan Check Product Realization Do 17

18 What might a process flow look like for AR? Purchase/Transport Vehicle(s) Dismantle/Inventory Vehicle(s) Stock Vehicle/Parts to yard/ whse Broker/sell parts Deliver or parts pick-up by Customer

19 Application to Automotive Recycling Industry

20 Aligned needs Customer: Recycler: Consistency and reliability of supplied parts Expand the use of quality recycled OEM parts Lower price point than new OEM parts Increase profits through higher sales

21 Customized Solution? Develop an industry-specific specification that addresses unique industry needs Ensure that it meets the needs of end-users Collision repair shops Insurance companies Obtain buy-in from industry

22 Others are doing it Wed, 30 Oct 2013 Professional Parts Group Achieves ISO 9001:2008 Certification Specifically, ISO 9001 requires an organization to demonstrate a quality management system with the ability to consistently provide product and service that meets customer as well as legal requirements. ISO 9001 certification also means the organization has demonstrated its commitment to enhancing customer satisfaction through the application of the management system, with processes for continual improvement and the

23 Travis: What does a mirror in fair condition mean?

24 What might a process flow look like for AR? Purchase/Transport Vehicle(s) Dismantle/Inventory Vehicle(s) Stock Vehicle/Parts to yard/ whse Broker/sell parts Deliver or parts pick-up by Customer

25 Quality Implementation Plan How many and what type Of cars do I need now? Refine the operation Based on what I ve Learned on this Cycle -What cars -What parts -What margin -What quality level Act Do Get the car in, Determine what I can use, pull Parts, and move to storage Check

26 One piece of the puzzle Plan Quality AR 9001? Act Do Health / Safety Check AR 18001? Plan Plan Enviornmental Act Do Act Do AR 14001? Check Check

27 Next Steps Determine level of interest, address barriers to implementation Develop and implement standards (ISO 9001, or industry-specific AR 9001 ) Ensure accountability and integrity (third party/independent auditing of industry)

28 Questions? Thank you! Mary McDonald, CEO/CTO McDonald Consulting Group