Quality and Operational Excellence
- 2. TOPICS TO BE COVERED • What is Quality ? • What is Operational Excellence ? • Core Principles Of Operational Excellence. • Cost Of Quality. • TQM. • Six Sigma. • Quality Assurance. • Quality Control. • ISO. • Technology and Operational Excellence.
- 3. What can Good quality do? Raise Company Reputation Rationalize Premium Prices Increase Productivity Increase Customer Loyalty Increase Customer Satisfaction
- 4. What is Quality? Quality refers to the ability of a product or service to consistently meet or exceed customer requirements or expectations. Different customers will have different expectations, so a working definition of quality is customer- dependent. Having good quality is a competitive advantage against others who offer similar products or services in the marketplace.
- 5. What is Operational Excellence? There are three distinct value propositions or disciplines an organization can choose to compete in their market or industry - Operational Excellence, Product Leadership, and Customer Intimacy. Operational excellence is process of ongoing improvement in an organization by focusing on the customers' needs, keeping the employees positive and empowered, and continually improving the current activities in the workplace, in other words, QUALITY. Organizations pursuing an Operational Excellence differentiation strategy are able to deliver a combination of price, quality, and ease of purchase and service that no other organization in their market or industry can match.
- 6. Core Principles Of Operational Excellence Respect every individual Lead with humility Seek perfection Assure quality at the source Flow and pull value Embrace scientific thinking Focus on process Think systemically Create constancy of purpose Create value for the customer
- 7. Total Quality Management Total quality management (TQM) is a philosophy that involves everyone in the organization in a continual effort to improve quality and achieve customer satisfaction. This philosophy concentrates on continuous improvement and quality at the source. Continuous improvement and quality are the essence of operational excellence.
- 8. Total Quality Management To be successful implementing TQM, an organization must concentrate on the e ight key elements: 1. Ethics 2. Integrity 3. Trust 4. Training 5. Teamwork 6. Leadership 7. Recognition 8. Communication
- 9. Quality Control A process through which a business seeks to ensure that product quality is maintained or improved and manufacturing errors are reduced or eliminated. Quality control requires the business to create an environment in which both management and employees strive for perfection. This is done by training personnel, creating benchmarks for product quality, and testing products to check for statistically significant variations. A major aspect of quality control is the establishment of well-defined controls. These controls help standardize both production and reactions to quality issues. Limiting room for error by specifying which production activities are to be completed by which personnel reduces the chance that employees will be involved in tasks for which they do not have adequate training.
- 10. Quality Assurance Quality assurance (QA) is a way of preventing mistakes or defects in manufactured products and avoiding problems when delivering solutions or services to customers; which ISO 9000 defines as part of quality management focused on providing confidence that quality requirements will be fulfilled. QA is applied to physical products in pre-production to verify what will be made meets specifications and requirements, and during manufacturing production runs by validating lot samples meet specified quality controls. Two principles included in quality assurance are: "Fit for purpose" (the product should be suitable forthe intended purpose); and "right first time" (mistakes should be eliminated).
- 11. Six Sigma Six Sigma is a disciplined, data-driven approach and methodology for eliminating defects (driving toward six standard deviations between the mean and the nearest specification limit) in any process – from manufacturing to transactional and from product to service. The fundamental objective of the Six Sigma methodology is the implementation of a measurement-based strategy that focuses on process improvement and variation reduction through the application of Six Sigma improvement projects. This is accomplished through the use of two Six Sigma sub-methodologies: DMAIC and DMADV. The Six Sigma DMAIC process (define, measure, analyze, improve, control) is an improvement system for existing processes falling below specification and looking for incremental improvement. The Six Sigma DMADV process (define, measure, analyze, design, verify) is an improvement system used to develop new processes or products at Six Sigma quality levels.
- 12. What is a standard? A standard is a document that provides requirements, specifications, guidelines or characteristics that can be used consistently to ensure that materials, products, processes and services are fit for their purpose. We published over 19 500 International Standards that can be purchased from the ISO store or from our members
- 13. The ISO 9000 The ISO 9000 family addresses various aspects of quality management and contains some of ISO’s best known standards. The standards provide guidance and tools for companies and organizations who want to ensure that their products and services consistently meet customer’s requirements, and that quality is consistently improved. ISO 9001:2008 - sets out the requirements of a quality management system ISO 9000:2005 - covers the basic concepts and language ISO 9004:2009 - focuses on how to make a quality management system more efficient and effective ISO 19011:2011 - sets out guidance on internal and external audits of quality management systems.
- 14. Technology and Operational Excellence A business can use technology in the following ways: In production In design In automated stock control In provision of services In communication In data collection E-commerce Recruitment
- 15. Technology and Operational Excellence Computer-aided manufacturing (CAM) CAM involves using robots in the production line. In addition, it involves using computers in a variety of manufacturing tasks beyond the use of robots, such as stock control and ordering stock.’ Computer-aided design (CAD) ‘CAD enables designers and draughtsman to store, retrieve and modify their work using multi-dimensional images.’
- 16. Thank You