Quality ManagementHistory, organisation and useful methods

Sidsel W. Storaas, VP Quality & Lean, Aker BP

NFKR Kvalitet og risikodagene 2018

2Source: David A. Garvin (1989), Competing on the Eight Dimensions of Quality

8 Dimensions

of quality

Performance

A products primary

operating characteristics

Features

Characteristics that

supplement basic functions

Reliability

Time to failure

Downtime

Conformance

The degree that a product's design meets

standardsPerceived quality

Reputation of brand

Aesthetics

How a product looks, feels,

sounds, tastes or smell

Serviceability

Speed, courtesy,

competence and ease of

repair

Durability

Product life time

QUALITY

Create a structure and culture for people and teams to excel

Definition and the dimensions of quality

“By quality we mean the persistent pursuit of goodness

coupled tightly with a simultaneous relentless

avoidance of badness” – Gregory Watson

“Quality means doing it right when no one is looking” –

Henry Ford

“Quality is the safety of tomorrow” – Unknown

3

The ability of a process or product to consistently meet or exceed the expectations of its customer. The entitlement of value that a process

should expect if it is operating as designed.

TERMS WE USE IN QUALITY

Quality

Quality as content

C

U

S

T

O

M

E

R

What customer want What customer is promised What customer gets

Quality delivery model – defines end-to-end process activities

Attractive quality One-dimensional quality Must-be quality

Quality as process

C

U

S

T

O

M

E

R

Source: Gregory H. Watson (2018), Aker BP Lean Expert Manual

What can we learn from history?

6

Those who fail to look at the past are

doomed to repeat it

~ George Santayana

QUALITY

TimelineHistory of Quality Management

Early days

1920’s

1950’s

1980’s

1900’s 1960’s

2000’s

Quality is linked to craftsmanship, guilds and learning from a Master.

Quality Marks

Industrial revolution, Taylorism, principles of scientific management –

Plan – Do - InspectJuran – First Quality Control

HandbookFeigenbaum – develop concept

of Quality CostDeming – training 100s of Japanese engineers within

statistical measures and control Birth of PDCA

Ishikawa - Quality circles and

Seven tools of Quality

Business Excellence and

introduction of strategic quality

(Big Q)

Shewhart introduce Statistical Process Control – and process approach (Input – add value –

output)

Crosby – Quality is Free

Japan thrives, western world lags

behind.

Motorola introduce Six Sigma.

Lean and TQM is born

7

Shewhart – statistical process control

Deming – PDCA and continuous improvement

Feigenbaum – Concept of Quality Cost

Crosby – Quality is free (invest in preventive actions)

Juran – Trilogy of Quality (Quality Planning, Quality Control and Quality Improvement)

Emergence of Lean, Six Sigma and Business Excellence

Juran – Big Q and Little Q – Strategic vs Operational Quality Management

Juran – Developing the quality and excellence office

QUALITY

What can we learn from history?

Quality management as a discipline

8Source: Kaoru Ishikawa (1989), What is Total Quality Control? The Japanese Way

When quality became a concern for management

9Source, “TQM’s challenge to management theory and practice” ,1994, by Robert M. Grant, Rami Shani and R. Krishnan.

TQM vs Economic models

Total Quality Management – 1994

10

Competing systems?

11

Little Q – Daily management

TERMS WE USE IN QUALITY

Big Q – Strategic management

Big Q vs Little Q

Source: Gregory H. Watson (2018), Aker BP Lean Expert Manual

12

A model for developing

“aspirations” for quality by

indicating areas that must be

addressed by processes,

measures, actions, or reviews in

order for an organization to

achieve long-term results driven

by a focus on customers and

significant stakeholders.

The ability to deliver value in

three dimensions

• Financial

• Market

• Cultural

CREATE A CULTURE AND STRUCTURE FOR PEOPLE AND TEAMS TO EXCEL

Business Excellence

2

3

1

Empower

ment

Perform-

ance

Our

cultural

framework

Cultural

Dimensions

of Business

Excellence

Investors

Partner-

ship/

alliances

Govern-

ment

Financial

Process

based

BMS

Flow

effiency

Continual

Improve-

ment

Market

(value

chain)

How to organise for quality?

15

Quality in operations – Little Q

Aiming for Operational Excellence

Competence – training, team development

Capability – process – L&I, BMS, Quality Cost analytics

Compliance – product – BMS, Process controls

Certification – standardisation – ISO 9001, Norsok, Audits etc.

Conformity – learning – Lessons learned, operational/business

reviews, audits

Correction – Quality Cost, NC, Deviations, corrective and

preventive actions

CREATE A CULTURE AND STRUCTURE FOR PEOPLE AND TEAMS TO EXCEL

Aiming for business excellence

Culture – cultural framework and CGM

Competition – Business learning through Quality Cost analytics

Change – Renewal – strategic and operational - MoC

Cascade – Alignment – Risk/ Improvements/ performance/

measures

Communication – Awareness, Q Mindset – message,

collaboration, knowledge management

Quality as a strategy – Big Q

How we work in Quality Dept.

The responsibility

of the executive

team

The responsibility of the quality

team

Q&L-team leads the change for

enabling performance excellence

Source: Gregory H. Watson (2018), Aker BP Lean Expert Manual

16Source: Benedikt Sommerhoff: Entwicklung eines Tranformationskonzptes für den Beruf Qualitätsmanager, Achen 2012

Control center

Business Excellence

GuardiansProject support

CREATE STRUCTURE AND CULTURE FOR PEOPLE AND TEAMS TO EXCEL

Who are the «quality people»?

Preservation Change

Leading

Subordinate

Attention for quality leadership

Role

of

qualit

yle

aders

hip

Transformations

Internal advisor

Change manager

Project manager

Project services

Quality improvement

Design of MS

Quality control

Investigations and

resolve conflicts

Administration

Repair

QA/QC

17Source: CQI/IRCA - The Quality Profession Driving Organisational Excellence

CREATE STRUCTURE AND CULTURE FOR PEOPLE AND TEAMS TO EXCEL

Competence

18Source: CQI/IRCA - The Quality Profession Driving Organisational Excellence

Protecting reputation

Avoiding the potentially catastrophic consequences of getting things wrong.

Enhancing reputation

Optimising operational effectiveness to maximise value for our partners and stakeholders.

Improving profitability / value for money

Optimising operational efficiency by eliminating unnecessary cost and waste

Transforming at pace

Driving change through insights, strategies and improvement activities.

CREATE STRUCTURE AND CULTURE FOR PEOPLE AND TEAMS TO EXCEL

High level – persistently pursuit «goodness» - relentlessly avoid «badness»

What do we bring to the table?

19Source: CQI/IRCA - The Quality Profession Driving Organisational Excellence

CREATE STRUCTURE AND CULTURE FOR PEOPLE AND TEAMS TO EXCEL

Quality & Lean leadership

The Q&L

leader

The quality advocate

The stakeholder advocate

The systems thinker

The fact-based thinker

The quality planner

The quality and

improvement coach

The motivator

The quality collaborator

Articulates a clear vision for quality as a strategic imperative that

supports the organisation’s broader aims and objectives.

Develops and implements strategies to maximise the contribution

of the profession within the organisation.

Acts as the conscience in the organisation, making

interventions whenever necessary to ensure

customer and stakeholder requirements are

addressed.

Looks across business functions and hierarchies to

promote a holistic view of the organisation and its

requirements.

Promotes a culture of decision-making based

on factual evidence and the measurement of

performance.

Advocates the principle of planning for quality to prevent potential

problems with business and operational excellence.

Develops knowledge of principles and capability in quality and

improvement tools, techniques and approaches throughout the

organisation.

Motivates and empowers others to take accountability for

achieving and improving standards of performance.

Works with all internal and external stakeholders to resolve issues

associated with organisation performance, and delivery of business

and operational excellence.

How can we put this into practise?

21Source: Juran’s Quality Handbook v6

Create awareness of the need and opportunity for improvement

Mandate improvement and make it part of every job description

Create the infrastructure; establish an improvement council, select projects for improvement, appoint teams, provide facilitators

Provide training in how to improve

Review progress regularly

QUALITY

«All improvements happen one project at the time» ~ Dr. Joseph Juran

How to improve - Juran

1

2

3

4

5

22

Best at streamlining processes and eliminating waste

Drive customer satisfaction

Create high quality goods and services

Produce high quality goods and services faster

Remove variation

Zero cost of poor quality

Improve speed

Improve accuracy

What do you want to achieve?

Which is better – Lean or Six Sigma?

23

Lean

• Safety

• Delivery

• Speed

• Quality

• Less waste

Six Sigma

• Consistency

• Accuracy

• Stability

• Quality

LEAN and Six Sigma : A powerful union

Meet the customer expectations

Employee and partnership growth

Improved profitability

Expanded capacity

Greater flexibility

Efficiency Effectiveness

24Source; Juran’s Quality Handbook, v6, chapter 13 Root Cause analysis to maintain performance

Method Purpose Benefits Level of difficulty

Investment (CVP) Large business case

Investments in Assets, tools

and systems

High ROI (25:1) High: Large scope problems require difficult diagnosis

and expert skills

Juran’s breakthrough

model (transformations)

Solve large, chronic,

multifunctional problems

High ROI (25:1) High: Large scope problems require difficult diagnosis

and expert skills

Six Sigma

DMAIC/DFSS

Solve large, chronic,

multifunctional problems

High ROI (25:1) High: Large scope problems require difficult diagnosis

and expert skills

Lean Start-up Solve large problems in an

agile way

High ROI (10:1) High: Large scope problems require expert skills

Root-cause-corrective

actions (RCCA)

Solve sporadic day-to-day

problems

Moderate ROI

(5:1)

Low: Sporadic problems require finding out what

changed; skills easy to gain by all staff

PDCA/PDSA Solve sporadic day-to-day

problems

Moderate ROI

(5:1)

Low: Sporadic problems require finding out what

changed; skills easy to gain by all staff

Lean Problem solving Solve sporadic day-to-day

problems

Moderate ROI

(1:1)

Low: Purpose is to identify waste and it’s causes,

which tend to be well understood

Just-do-it Make daily decisions based

on what is already known

Moderate ROI

(0:0)

Easy: No other method than instinct

IMPROVEMENT INITIATIVES AND PROJECTS (METHODS)

Improvement initiatives and methods

25

IMPROVEMENT INITIATIVES AND PROJECTS (METHODS)

Common governing model – Investment Decisions

Investment projects

Source; Aker BP Common Governing Model for Investment Decisions

26Source: Juran’s Quality Handbook v6, Chapter 9 – The Juran Transformation Model and Roadmap

IMPROVEMENT INITIATIVES AND PROJECTS (METHODS)

Transformation - Roadmap and breakthroughsResults

Time

Decide Prepare Launch Expand Sustain

Leadership and

management

Organisationand structure

Current performance

Adaptability and

sustainabilityCulture

27

A philosophy of management

A process-measurement methodology

A problem solving process (DMAIC)

Approach for innovation in product and process design (DFSS)

A business culture

IMPROVEMENT INITIATIVES AND PROJECTS (METHODS)

What is Six Sigma?

Six Sigma DMAIC/DFSS

Customer first!

Reduce variation!

Improve quality!

Better accuracy!

Precision, not

perfection!

Source: Gregory H. Watson (2018), Aker BP Lean Expert Manual

28

A philosophy of management

A process-measurement methodology

A problem solving process (DMAIC)

Approach for innovation in product and process design (DFSS)

A business culture

IMPROVEMENT INITIATIVES AND PROJECTS (METHODS)

What is Six Sigma?

Six Sigma DMAIC/DFSS

Six Sigma Level Defects per million opportunities

1 690.000

2 308.537

3 66.807

4 6.210

5 233

6 3,4

Situation 1 sigma world 3 sigma world 6 sigma world

Pieces of your mail lost per year (1600/year) 1106 107 Less than 1

Number of empty coffee pots at work (680/year) 470 45 Less than 1

Number of telephone disconnections (7000

minutes/year)

4839 467 0,02

Erroneous business orders (250.000/year) 172924 16694 0,9

Unwanted air transport incidents at Heathrow airport

(474033 air transport movements 2017)

327083 31668 1,6

Source: Gregory H. Watson (2018), Aker BP Lean Expert Manual

29

A philosophy of management

A process-measurement methodology

A problem solving process (DMAIC)

Approach for innovation in product and process design (DFSS)

A business culture

IMPROVEMENT INITIATIVES AND PROJECTS (METHODS)

What is Six Sigma?

Six Sigma DMAIC/DFSS

Source: Gregory H. Watson (2018), Aker BP Lean Expert Manual

30

A philosophy of management

A process-measurement methodology

A problem solving process (DMAIC)

Approach for innovation in product and process design (DFSS)

A business culture

IMPROVEMENT INITIATIVES AND PROJECTS (METHODS)

What is Six Sigma?

Six Sigma DMAIC/DFSS

Source: Gregory H. Watson (2018), Aker BP Lean Expert Manual

31

A philosophy of management

A process-measurement methodology

A problem solving process (DMAIC)

Approach for innovation in product and process design (DFSS)

A business culture

IMPROVEMENT INITIATIVES AND PROJECTS (METHODS)

What is Six Sigma?

Six Sigma DMAIC/DFSS

Source: Gregory H. Watson (2018), Aker BP Lean Expert Manual

32Erik Ries (2011), The Lean Startup

IMPROVEMENT INITIATIVES AND PROJECTS (METHODS)

Can be used for developing a product or service within a company

Lean Start-up

The Lean Startup method teaches you how to drive a startup, how to steer, when to turn, and when to persevere-and grow a business with maximum acceleration.

A core component of Lean Startup methodology is the build-measure-learn feedback loop. The first step is figuring out the problem that needs to be solved and then developing a minimum viable product (MVP) to begin the process of learning as quickly as possible. Once the MVP is established, a startup can work on tuning the engine. This will involve measurement and learning and must include actionable metrics that can demonstrate cause and effect question.

33

Root cause corrective action is a term used to

describe a reactive problem solving process

What happened – REALLY – and what can we learn

to avoid recurrence?

IMPROVEMENT INITIATIVES AND PROJECTS (METHODS)

RCCA turns failures into future success

Root-cause-corrective actions (RCCA)

Identify the

problem

Diagnose the cause

Remedy the cause

Hold the gains

List of tools:

Affinity model/brainstorming

Cause and effect diagrams

Data Collection

Failure mode and effects analysis (FMEA)

Graphs and charts

Histograms

Box Plots

Pareto analysis

Mistake proofing

Process control plans

Scatter diagrams

Stratifications

Source; Juran’s Quality Handbook, v6, chapter 13 Root Cause analysis to maintain performance

34

PDCA

PDCA Cycle Repeat

The best known and most widely used problem

solving method

An experimental framework

Attributed to Dr. Deming

A way to take corrective action

Plan – What could be the most important

accomplishments of this team? What needs to

change?

Do – Carry out the change or test on small scale

Check – Observe the effect of the change or test

Act – Study the results – what did we learn?

Also known as PDSA (Plan, Do, Study, Act)

IMPROVEMENT INITIATIVES AND PROJECTS (METHODS)

35

IMPROVEMENT INITIATIVES AND PROJECTS (METHODS)

Common governing model – Lean in Aker BP

LEAN problem solving

Source; Aker BP Common Governing Model for Lean & Continual improvement

36

IMPROVEMENT INITIATIVES AND PROJECTS (METHODS)

Just-do-it!

Does not include any analysis of the root cause of the problem

«Blindingly obvious» - i.e. analysis done by observation

When to use:

Need for solution is urgent and any delay can have serious repercussions –

not just because it is easy and quick

Low cost of failure – the price to pay for making the change must be low

A significant potential reward – a quick win!

Berre gjer da!

Questions?