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 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

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



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
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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:

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Standards and guidelines
Eight principles
Three booklets:
Q9000-2000 Fundamentals and vocabulary
 Q9001-2000 Requirements
 Q9004-2000 Guidelines for performance improvements
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Other ISO 9000 Standards:
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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:
Leadership
Strategic planning
Customer and market focus
Measurement analysis and knowledge management
Human resource focus
Process management
Results.
Lean

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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
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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
ISO
Low
High
Mod
Mod
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 Krivokuca
Quality Program Coordinator
California State University
Dominguez Hills
Mkrivokuca@csudh.edu