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?
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