PMPA Tech Conference Do we have the Tools and Knowledge to weather the Storm?

Transcription

1 PMPA Tech Conference 2014 Do we have the Tools and Knowledge to weather the Storm?

2 Quality Initiatives Malcolm Baldrige National Quality Award ISO Standards (ISO 9001, ISO 14001, AS 9100, ETC ) Six Sigma Balanced Scorecard Lean Manufacturing Benchmarking Total Quality Management

3 Quality Standards AIAG Documents and Standards SAE Standards ANSI ASQ ASME Standards Customer Specific Standards

4 Quality Concepts Continuous Improvement Cost of Quality Customer Satisfaction Problem Solving Process Evaluation Supplier Development

5 Statistical Tools Cause and Effect Diagram Check Sheet Control Charts Histogram Pareto Chart Affinity Diagram Tree Diagram Matrix L-Shaped Matrix Relations Diagram Scatter Diagram

6 Quality Manuals AIAG Documents Production Part Approval Process (PPAP) Advanced Product Quality Planning (APQP) Potential Failure Mode and Effects (FMEA) Statistical Process Control (SPC) Measurement System Analysis (MSA)

7 Then Why Do We Fail? With all of these How to Manuals, Quality Standards, Tools and Quality Concepts, how can we still be failing?

8 Follow the Rules or Follow the Principles? Definitions: Rule - a statement of what is allowed, for example in a game or procedure Principle - A basic truth, law, or assumption

9 Dr. Edward Deming Origin of the 14 points The 14 points are the basis for transformation of American industry. It will not suffice merely to solve problems, big or little. Adoption and action on the 14 points are a signal that the management intend to stay in business and aim to protect investors and jobs. Such a system formed the basis for lessons for top management in Japan in 1950 and in subsequent years. The 14 points apply anywhere, to small organizations as well as to large ones, to the service industry as well as to manufacturing. They apply to a division within a company. Dr. Edward Deming

10 Deming s 14 Principles 1) Create constancy of purpose toward improvement of product and service, with the aim to become competitive and to stay in business, and to provide jobs. 2) Adopt the new philosophy. We are in a new economic age. Western management must awaken to the challenge, must learn their responsibilities, and take on leadership for change. 3) Cease dependence on inspection to achieve quality. Eliminate the need for inspection on a mass basis by building quality into the product in the first place. 4) End the practice of awarding business on the basis of price tag. Instead, minimize total cost. Move toward a single supplier for any one item, on a long-term relationship of loyalty and trust. 5) Improve constantly and forever the system of production and service, to improve quality and productivity, and thus constantly decrease costs. 6) Institute training on the job. 7) Institute leadership. The aim of supervision should be to help people and machines and gadgets to do a better job. Supervision of management is in need of overhaul, as well as supervision of production workers. 8) Drive out fear, so that everyone may work effectively for the company. 9) Break down barriers between departments. People in research, design, sales, and production must work as a team, to foresee problems of production and in use that may be encountered with the product or service. 10) Eliminate slogans, exhortations, and targets for the work force asking for zero defects and new levels of productivity. Such exhortations only create adversarial relationships, as the bulk of the causes of low quality and low productivity belong to the system and thus lie beyond the power of the work force. Eliminate work standards (quotas) on the factory floor. Substitute leadership. Eliminate management by objective. Eliminate management by numbers, numerical goals. 11) Remove barriers that rob the hourly worker of his right to pride of workmanship. The responsibility of supervisors must be changed from sheer numbers to quality. 12) Remove barriers that rob people in management and in engineering of their right to pride of workmanship. This means, inter alia, abolishment of the annual or merit rating and of management by objective. 13) Institute a vigorous program of education and self-improvement. 14) Put everybody in the company to work to accomplish the transformation. The transformation is everybody's job.

11 Continual or Continuous Improvement The terms continuous improvement and continual improvement are frequently used interchangeably. But some quality practitioners make the following distinction: Continual improvement: a broader term preferred by W. Edwards Deming to refer to general processes of improvement and encompassing discontinuous improvements that is, many different approaches, covering different areas. Continuous improvement: a subset of continual improvement, with a more specific focus on linear, incremental improvement within an existing process. Some practitioners also associate continuous improvement more closely with techniques of statistical process control.

12 What is Your Companies Culture? Culture The attitudes and behavior that are characteristic of a particular social group or organization. One of the main root causes of Toyota s success is self reliance. By trying to become more like Toyota, we are becoming less like Toyota. This is the paradox. Nobody taught Toyota tools 5S, kaizen, value stream mapping. These were outputs of their own system. Today, American companies buy Lean tools, Six Sigma, ISO- 9001, sourcing from China and India, instead of developing internally. We are NOT self reliant. Mike Micklewright. Self-Reliance - Reliance on one's own capabilities, judgment, or resources; independence.

13 Understanding Your Culture Culture is formed by interactions between employees. Each company has a Leadership Style. What are the ethics and values of your culture? Does the organization challenge the Status Quo? Does the Organization lead, encourage and support change? Managers tend to hire people like themselves which tends to perpetuate the existing culture. Culture grows over time. Is your culture by design or by default?

14 Changing Your Culture A plan for change must be developed. Identify what will change and what will stay the same. Changing culture usually requires a significant event. People are resistant to change. Understand the resistance at both the individual and organizational level. Companies can be more resistant than individuals. Implementation of the plan is critical. Continuous improvement can develop a culture of constant change. Find and cultivate innovative leadership.

15 Critical Thinking Critical thinking is a learned skill. Critical thinking mimics scientific investigation: A problem is identified. A hypothesis is formulated. Relevant data is gathered. The hypothesis is tested and evaluated. Reliable conclusions are drawn from the results. Critical thinking is the ability to think for one's self and reliably and responsibly make those decisions that affect one's life. Critical thinking skills are nothing more than problem solving skills that result in reliable knowledge. Critical thinking is the practice of processing information in the most skillful, accurate, and rigorous manner possible, in such a way that it leads to the most reliable, logical, and trustworthy conclusions, upon which one can make responsible decisions about one's life, behavior, and actions with full knowledge of assumptions and consequences of those decisions.

16 Problem Solving The following is a typical Automotive Problem Solving Process: Build a Team (Develop a team of people with the appropriate skills, experience and authority to resolve the problem). Describe the Problem (Be specific and quantify the problem) Implement a Temporary Fix (Contain the problem) Determine Root Cause (Determine the one root cause that if eliminated would cause the problem to disappear) Verify Corrective Action (Make sure that the fix does not create other undesirable side effects) Implement Permanent Fix Prevent Recurrence Congratulate the Team

17 Critical Thinking vs. Problem Solving Critical Thinking is Proactive Problem Solving is Reactive Critical thinking is a learned skill. Problem Solving is a Group Activity. Critical thinkers act independently. Problem Solving has a facilitator.

18 Vanamatic Mission Statement Unity, Empowerment, Teamwork The Right People, Making the Right Decision, At the Right Time.

19 The Vanamatic Living Business Plan Customer Value - The benefits a customer receives or expects in return for what the customer pays. We supply our customers much more than competitive pricing and high quality products. Long term relationships are fostered by superior customer service, performance, alignment of business strategies, and meeting tomorrow s challenges today. Human Resource Development - Innovative Human Resource solutions to meet the challenges of today and tomorrow. Unity, Empowerment, Teamwork. The Right People, Making the Right Decision, At the Right Time, represents the company human resource philosophy. Our company is more than the products we make; it's also the people who make them. Quality & Delivery - "Key performance indicators for customer satisfaction". Key product performance indicators provide feedback to maintain peak performance for our company and customers. "True Quality" designed and built into our products and processes enhance our ability to, "get it right the first time, every time". Supplier Development - "Practices to increase supplier performance and/or capabilities". The vitality of our organization is affected by the ability of our suppliers to perform and meet the high standards or our customers. Finding and developing leading edge suppliers improves our ability to perform at the highest levels possible for ourselves and our customers. Innovative & Creative Solutions - "Continuous improvement of products, processes, and services". We improve our competitive advantage by implementing new ideas, products, processes, services, or technology through the careful exploration of new frontiers. Financial Performance Measures - "A measure of how well assets are used to generate revenues. Key financial indicators provide measures for maintain peak performance throughout our organization. Our current and future employees, suppliers, and customers benefit from a strong financial position which provides safety, security, and value. Emergency Preparedness - "Predetermined plans for business interruptions". Action plans focusing on business parameters critical to the ongoing operation of the company are important to operations and vital to our customers. Emergency action plans limit the potential negative impact on our customers and their operations. Sales and Marketing - "Attract and retain a growing base of satisfied customers. High performing products and processes are the catalyst for new customers and markets. Keeping customers informed of our unique skills and capabilities will help them meet the changing challenges of the future. Environment and Resource Management - Responsible environmental and conservation activities. Vanamatic is committed to improving the environment in which we work and live, for our employees, the community and our customers. Community Involvement - Investing our time, resources, and financing to support the Communities we live and work in. Positive community growth occurs with sustainable community involvement, volunteerism, and investment.

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22 Website Links AcuMax Index: Can an Assessment Help You Get The Maximum Performance from Your People? Jackson Gainsharing Plans: A management tool to accomplish certain specified improvements in order to reach a goal. The goal is to obtain and exceed an acceptable level of profitability by using the tool to improve.

23 U-Tube Links The first of three episodes with Mike Micklewright. In this week's episode, Mike discusses the importance of principles over style. 9:57 Minutes The second of three episodes with Mike Micklewright. In this week's episode, offshoring (or outsourcing), does it really save you money; are you taking a realistic look at the total cost? 6:06 Minutes In part three of our interview with Mike Micklewright he compares continuous improvement to continual improvement. He also discusses 5S and how that ties into the 5 Whys. 8:23 Minutes An Evening with Dr. Deming (Mike Micklewright as Dr. Deming) The Deming Evangelist

24 Alfred A. Montapert Do not confuse motion and progress. A rocking horse keeps moving but does not make any progress.