Driving and Sustaining Quality & Innovation in Manufacturing Processes Quality Presentation - EFY Thursday, January 19, 2012 1 Contents • Driving Quality Through Business Processes • Defining Business Processes • Employee Involvement & Empowerment • Defining Business Measures • Measures Review Mechanism • Continual Improvement & Process Innovation • Continual Improvement By Involvement • Business Process Reengineering • Benchmarking • Reward & Reorganization Date :16th Feb 2012 Devang Khamar Head Quality , Environment & Six sigma Driving & Sustaining Quality & Innovation - EFY Thursday, January 19, 2012 2 Driving Quality Through Business Processes Driving & Sustaining Quality & Innovation - EFY Thursday, January 19, 2012 3 Defining Business Processes Business processes are set of work activities and associated resources that produces something of value to a customer. Organizations Direction Business Process Manual Mission Why Organization Exist Core Values Interaction of Business Processes Rules & Procedures Level-1 Level-2 What Organization Believe In Instructions Level-3 Forms Vision Level-4 What Organization Want to Be Process Approach Driving & Sustaining Quality & Innovation - EFY Thursday, January 19, 2012 4 Employee Involvement & Empowerment Employees Involvement in to Organizations Business Processes is Giving Empowerment in their defined work area. Organizations Direction Business Process Manual Employee Involvement & Empowerment Mission Top Management Why Organization Exist Interaction of Business Processes Core Values What Organization Believe In Organizations Rules & Policies Level-1 (Management Team, Business Owners & Customers) Level-2 Middle Management (Process Owners, Line Managers Instructions & Leaders) Level-3 Executors Forms Vision Level-4 (Line Engineers & Operators) What Organization Want to Be Joining forces for improvement Driving & Sustaining Quality & Innovation - EFY Thursday, January 19, 2012 5 Setting up of Right Business Measures Business Measures must support Business Mission and the Vision. Measures can be categorized in to Major 4 Categories - Financial - Customer - Internal - Learning & Growth Measures Needs to be set at all levels in “SMART” Manner - S : Specific - M : Measurable - A : Achievable - R : Realistic - T : Time Bound Focus Drives Success Driving & Sustaining Quality & Innovation - EFY Thursday, January 19, 2012 6 Review Mechanism • It is a structured and Time Bound Process to review Business Measures • Pre-defined Meeting schedules • Structured & clearly defined agenda • Active participation from the accountable area / process owners • It shall be Transparent, efficient, inclusive and impartial • Track the action points closer with owner & within agreed time lines The Power of Focus 7 Driving & Sustaining Quality & Innovation - EFY Thursday, January 19, 2012 Continual Improvement & Process Innovation Driving & Sustaining Quality & Innovation - EFY Thursday, January 19, 2012 8 Continual Improvement Tools & Techniques • Continual Improvement is an integral part of operations to improve the operations in the business & to be competitive in the market. Tools & Techniques Description Levels of Involvement 7 QC Tools Quality Circles 5S Single Minute Exchange of Die (SMED) MUDA Poka Yoke Statistical Process Control (SPC) Kiazen Daily Work Management (DWM) Benchmarking Total Productive Maintenance (TPM) Total Quality Management (TQM) Lean Six Sigma Problem Solving Tools Small Group Activity Workplace organization Effective Change over of Product Waste Elimination Mistake / Error Proofing Process Monitoring & Control Small Improvements Daily performance review Implement Best Practices Improve Assets effectiveness Involvement by All Breakthrough Improvement Process Owner, Line Leader, Operator Operators All employees Line Leaders, Operators Line Leaders, Operators Process Owner, Line Leader, Operators Process Owner, Line Leader, Operator All employees Process Owner Asset Owners All employees Process Owner, Line Manager, Leaders Think different, Think Out Of Box Driving & Sustaining Quality & Innovation - EFY Thursday, January 19, 2012 9 Elcoteq Way of Innovation & Continuous Improvement Innovation Strategy 6 Continuous Improvement Projects (CIPs) Lean Sigma Knowledge Quiz Awareness Events Kaizen Poka Yoke Small Group Activity (SGA) 5S Driving & Sustaining Quality & Innovation - EFY Management Commitment Quarterly CIP Contest Rewards & Recognition Quarterly Plant Communication Meeting - Platinum , Gold , Silver Awards For 6 Contest - Highest Performer in Quiz (Top3) Monthly Innovation Round Monthly Innovation Round Quarterly SGA Contest - Kaizen & Poka Yoke Star - Best SGA Awards - External Rewards Industry Contest (QCFI) Quarterly Plant Communication Meeting Weekly Management Round - Thursday, January 19, 2012 - 5S Champion - Best 5S Area (Team) 10 Process Innovation • BPR Business Process Re-engineering (BPR) is fundamental thinking & redesign of the business processes, to achieve a dramatic improvement in Critical Success Factors like Cost reduction, Quality Enhancement, Service Improvement & Cycle time Reduction. • Why Business Process Reengineering ? - Economy is liberalized. - Today’s Market is going Global. - Customers are become Choosy. - Competition is getting Hot. - Companies cannot afford any more profit less turnover…. So the companies do not reengineer their business processes will simply go out of Business in next few years. BPR is no more a choice but it is a necessity in today’s Business Driving & Sustaining Quality & Innovation - EFY Thursday, January 19, 2012 11 Business Process Reengineering Defining the scope of the reengineering Project / Process • • Collect the data for the Study the process with Customer, Employees, Competitors & new technology Define the Objective • Based on the historical • Create plan based on gaps & Implement the solution (Redesign) • Creation of the business processes. information define the with customer, roadmap to fulfill the Analysis of the “to be” state. employees, gaps between current Allocate the resources competitors for their process, technologies. business processes • inputs. based on the data. • Learn the processes Process Selection of the bottleneck processes. • • Implement the Collects inputs from solutions to get the the new technologies desired results. in the business. (Redesign the process) The Power of Focus for revolutionary improvement Driving & Sustaining Quality & Innovation - EFY Thursday, January 19, 2012 12 Benchmarking Practices Process Innovation • Benchmarking is an art of finding out in a systematic & legal way the best practices of successful Processes and Implement them to reach higher level of Excellence. Types of Benchmarking Benefits of Benchmarking • Helps Organization to learn from Experience of others Strategic • Gives Organization a comparison to “Best in the world” Process Types of Benchmarking Product • Is a Proactive Solution • Gives organization a Relative performance comparison vs. competitors Performance • Speeds up the Improvement activities…. Driving & Sustaining Quality & Innovation - EFY Thursday, January 19, 2012 13 Benchmarking Practices Identification of Areas for Improvement • • Identify the areas for Process Identify the Improvement points & Roadmap Define the team & Organize / Execute the visit • Identify the team for • Summarize the Implement & Monitor the result • Document the improvement (Bottle study (All related observations & implementations Neck Process) Process Owners) Learning by each for sustenance Define the Clear member Survey the similar • process / practice industries • Learning Plan • • Monitor the process & Formulate the time Measures for continual Organize & Execute bound action plan with improvement a well planned Visit. clear measures for Improvement Share your Experience with others to generate new Innovative Approaches Driving & Sustaining Quality & Innovation - EFY Thursday, January 19, 2012 14 Rewards & Reorganization • Companies strength is motivated work force • Rewards and recognition is a powerful tool for employee motivation and performance • Shows the Top Management Commitment for the Performing Employees • Effects long-term Positive cultural change • Team Rewards Builds solid Team work • Improves employee retention to organization • Improves employee Loyalty • Helps to sustain the continual improvement & Innovation culture “Thank you for the Good Work” Driving & Sustaining Quality & Innovation - EFY Thursday, January 19, 2012 15 Continual Improvement is a Ongoing Process Driving & Sustaining Quality & Innovation - EFY Thursday, January 19, 2012 16