achieving organizational excellence is your organization ready?
TRANSCRIPT
Achieving Organizational Excellence
Is your organization ready?
Presented by:
Milton Krivokuca
How can organizational excellence be accomplished?
MSys +MStr + QMS = OE
Where do we begin?
Problem or Opportunity?
Organizational Assessment
Common Management Systems MRP (ERP) JIT (Kanban) Theory-of Constraints (Drum-Buffer-Rope) Hybrid Systems
MRP (ERP) Forward looking system Predicts the need to manufacture products Works well in an environment with uncertainty Effective in handling custom orders and process changes
MRP (ERP) Highly data dependent Requires a well established infrastructure
JIT (Kanban)
Almost opposite of MRP Eliminate or reduce process uncertainty Very reactive system Very little preplanning required Stable and predictable market
JIT (Kanban) Fails quickly in a highly volatile environment Extensive product or process changes cannot be handled
effectively
Theory-of-Constraints Basis of identification and effective management of a
constraint Assumes constraint will be identified and managed long
enough to be effective
Theory-of-Constraints
Not effective if the constraint cannot be identified or managed
Works better with a more stable process
Hybrid Systems
Combine the most applicable aspects of the MRP, JIT, and TOC to suit your particular situation
Requires an understanding of all three and the ability to effectively implement and manage the hybrid
Organizational Structures Concepts:
Unity of commandLine and staff authoritySpan of control
How work activities are organized:What product or service is being providedHow customers are being servedWhat geographic area is coveredWhat is the product/service to customer process flow
Organizational Considerations Strategy Size Technology Core Competencies Regulatory/Legal Union Competition Workforce Facilities Environmental factors Managerial hierarchy
Purpose of a Management System Implement the chosen strategy of an organization
by focusing on resources critical for organizational success
Establish requirements and guidelines that should provide reasonable assurance that outputs from the system will be as expected
Need to align processes to integrated systems of processes providing value to the customer
Management Systems Overview
Core Processes Key Supporting Processes Management System
Core Processes
Inputs Transformation Outputs
Key Supporting Processes
Maintain the awareness of related processes such a regulatory and various infrastructure related processes
Monitoring and reporting
Management System Reporting Processes
Document control Record control Auditing
Quality Management Systems
SPC TQM Quality Circles ISO Baldrige Lean Six Sigma
Statistical Process Control
Provides quantitative representative of a process or activity.
If you can measure it, you can improve it.
Total Quality Management (TQM):
Customer-focused Total employee involvement Process-centered Integrated system Strategic and systematic approach Continual improvement Fact-based decision making Effective communication
Quality Circles
Team work Empowerment Beginning of systems thinking Good starting point Resources in place
ISO ISO 9000:2000 Series:
Standards and guidelines Eight principles Three booklets:
Q9000-2000 Fundamentals and vocabulary Q9001-2000 Requirements Q9004-2000 Guidelines for performance improvements
Other ISO 9000 Standards: Q190115-2004 Environmental QS9000 (ISO/TS 16949) Automotive ISO 13485:2003 Medical devices
ISO
Other Standards: JCAHO (healthcare) NCQA (managed care) CE mark (product safety) GMP (medical device, pharmaceuticals, food) SA8000 (social accountability) TickIT (software) SEI capability maturity model (software)
ISO
Data driven Audit based Disciplined management system
ISO 14001
Environmental Standard Good starting point Regulatory reporting already in place Not as complex as ISO 9000 series
Malcolm Baldrige Quality Award
Seven areas:LeadershipStrategic planningCustomer and market focusMeasurement analysis and knowledge managementHuman resource focusProcess managementResults.
Lean Continuous elimination of waste Meeting (or exceeding) customer’s expectations for cost, quality,
delivery, and suitability of products and services “Delighting the customer” means providing the best quality,
service, and delivery at fair market price
Six Sigma
A structured approach (data driven) to improve an
organization’s effectiveness and efficiency.
Six Sigma Success Formula Understand the formula Q x A = E Define a stakeholder Understand that resistance to change is natural Identify four types of resistance Understand the stakeholder’s involvement Understand threats to the system from modifications
Organizational Excellence
begins with
Effective Business Metrics
What are our business metrics? What are our measurement criteria? Do the metrics link to the criteria? If they do not correlate, what must we change?
MSys +MStr + QMS = OE
MRP/ERP JIT/Kanban TOC Hybrid
SPC High High High High
TQM Mod Mod Mod Mod
Quality Circles
Low High Mod Mod
ISO High Low Low Mod
Baldrige High Mod Mod High
Lean Low High High High
Six Sigma Mod Mod High High
Moving forward:
Are you able to select and implement the best QMS to align your organization’s system and
structure?
Achieving Organization Excellence
Questions??
Milt KrivokucaQuality Program Coordinator
California State University Dominguez Hills