Achieving Organizational Excellence Is your organization ready Presented by Milton Krivokuca How can organizational excellence be accomplished MSys MStr QMS OE Where do

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Achieving Organizational Excellence Is your organization ready Presented by Milton Krivokuca How can organizational excellence be accomplished MSys MStr QMS OE Where do Powered By Docstoc
					Achieving Organizational
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
 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
 Basis of identification and effective management of a
 Assumes constraint will be identified and managed long
  enough to be effective
 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
         Organizational Structures
 Concepts:
   Unity of command
   Line and staff authority
   Span of control
 How   work activities are organized:
   What product or service is being provided
   How customers are being served
   What geographic area is covered
   What 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
 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
 CoreProcesses
 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
 Monitoring and reporting
    Management System Reporting
 Document  control
 Record control
 Auditing
        Quality Management Systems
 Quality   Circles
 Baldrige
 Lean
 Six   Sigma
    Statistical Process Control
Provides quantitative representative of a
          process or activity.

If you can measure it, you can improve
  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 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
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)
 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:
Strategic planning
Customer and market focus
Measurement analysis and knowledge management
Human resource focus
Process management
   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
           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    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
Achieving Organization Excellence

   Milt Krivokuca
Quality Program Coordinator
 California State University
      Dominguez Hills

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