2010 Manufacturing Outlook Survey

Performance Improvement Solutions for Your Business Needs January 2010

In this issue

  • 2010 Manufacturing Outlook Survey
  • Holding Pattern for AS9100C Certification
  • ISO 26000 Published as Draft Standard
  • In the News
  • Training Courses
  • Greetings!

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    2010 Manufacturing Outlook Survey

    Audit

    An American Society for Quality (ASQ) survey shows a
    majority of manufacturers are optimistic about a small
    economic uptick in 2010 at their organizations.
    However, respondents believe further cost-cutting
    measures will continue to be implemented.

    The results show a majority of respondents
    (64.7%) employed in the manufacturing sector predict
    their organizations will experience some financial
    recovery in 2010. More than 1,000 manufacturing
    professionals around the world responded to the
    online survey from Dec. 2-13, 2009.

    Other events that respondents predict their
    organizations will experience in 2010:

    • 61.3 percent believe their organization will create
      processes to reduce costs
    • 44.8 percent expect a pay freeze
    • 41.4 percent predict a hiring freeze at their
      organizations
    • 35.2 percent will have mandatory budget cuts
    • 27.8 percent expect staff layoffs
    • 24.7 percent anticipate reduced employee benefits

    Respondents were also asked what one tip they
    would give to manufacturers to ensure revenue growth
    in 2010. The top four tips from respondents were:

    • Continue to take part in continuous improvement
      practices and increase use of quality processes
    • Increase customer satisfaction
    • Implement more lean processes
    • Reduce costs

    Let’s focus on the four tips above and identify some
    practical short term ideas we recommend to improve
    your
    business with a high return.

    1. Connect
    with the numbers.

    Understand the breath
    and depth of your company’s profit and loss gaps. Get
    the numbers for your entire company and focus on
    each functional area. Shift your focus from projects to
    metrics that identify the cost of poor quality
    (COPQ).

    Identify systems and processes that
    would have an immediate revenue impact or cost of
    poor quality prevention. Identify and drive projects that
    deliver hard dollars and avoid getting caught-up in
    productivity improvements that don’t create real time
    financial value to your bottom line.

    2.
    Improve Process Controls.

    How well are
    your current business processes documented? Do
    your employees have the necessary process
    information to know how processes generate
    consistent quality products and services? Many
    organizations have utilized documented operational
    systems such as ISO 9001:2008 to create and
    establish a foundation for documentation and process
    controls. Your products and their complexity should
    help define the level of detail that is
    necessary.

    Knowing process inputs, outputs,
    resources, methods, and measures reduce operating
    costs. Improvement tools such as process maps,
    value stream maps, capacity analysis, and control
    plans work well.

    3. Focus on Your Customers.

    Is your
    cost cutting impacting your products and services
    negatively? How often are you talking to your
    customers and seeing how you can help them?
    Remember, they are also feeling the pain of this
    economy. Supplier and customer relationships are so
    much more dependent in these times and you have to
    make the effort to show real value.

    Continue
    to evaluate the data related to process performance
    and customer satisfaction indices. Inform and
    demonstrate to all your employees and customers
    that the quality of our products and services are more
    important than ever before.

    Successful
    companies pay very close attention, understand, align,
    and measure the importance of dashboard or
    scorecard data related to voice of the customer, voice
    of the business, and voice of the process
    measurement systems. Use this current economic
    environment to establish specific dollar targets within
    these systems to support process improvement. The
    old adage “You can’t improve what you can’t measure”
    is more relevant today than ever before.

    4.
    Get Back to the Basics.

    Quality
    improvement and reducing your costs of doing
    business is all about methods, models, monitoring
    and measurement. Using the right combination of
    these at the right times, makes things better.

    All industries have inherent process waste. Whether
    you’re a service or a manufacturing organization your
    processes are not as good as they can be. Studies
    have shown that process waste is typically 20 to 30%
    in manufacturing and 40 to 50% in service
    organizations. This is lost revenue to your business.
    For many, Lean manufacturing is the set of “tools” that
    assist in the identification and steady elimination of
    waste.

    Contact us for more information and
    assistance on these methods to improving your
    business with a high return.

    Holding Pattern for AS9100C Certification

    Airplane

    An international council of aviation, space, and
    defense quality leaders is expected to announce this
    month the formal date when an estimated 10,000
    AS9100 certificate holders may begin upgrading their
    certifications to the latest edition of the industry-
    specific quality requirements.

    Revision “C” of
    the standard was published earlier this year as
    AS9100 in the Americas, JISQ9100 in Asia-Pacific and
    EN9100 in Europe. However, a companion checklist
    intended for third-party auditors and a Certification
    Body Audit Days Table are not expected to be
    released until early 2010.

    The absence of the checklist and Audit Days Table
    effectively puts thousands of certificate holders –
    many of whom are contractually bound to achieve and
    maintain certification to the standard by major
    aerospace and defense customers – in a kind of
    certification holding pattern. “We want to make sure
    that we have a standardized evaluation of suppliers. In
    addition to that, there needs to be guidance material
    provided to certified auditors so that they understand
    the intent of the changes to AS9100C,” explains
    Michael J. Dreikorn, a prominent expert on the
    standard, who led Sustainable Success Alert’s recent
    webinar: Clearing the Tower with the New AS9100.

    The new release also incorporates recent
    changes to ISO 9001, which was updated in
    November 2008, while introducing new requirements
    for aviation, space and defense companies. The
    common requirements represent the combined effort
    of aviation, defense and space industry
    manufacturers, suppliers, civil airworthiness
    authorities, certification/registration bodies, as well as
    related trade associations.

    An anticipated 30-
    month transition was originally expected to begin in
    September 2009. However, the new timeframe
    determined at the (IAQG) Council meeting last October
    now starts in January 2010.

    “I don’t see any technical challenges,” says
    Dreikorn. “The biggest challenge is to insure that all of
    the auditors out there worldwide understand the intent
    of the changes to AS9100C. The standardization is the
    challenge. You can inform a lot of people. You can
    create a lot of training, but if the tool that you use to
    train people isn’t mature and isn’t ready for delivery,
    then the people aren’t going to be calibrated
    correctly.”

    Purchase the AS9100C Standard at
    the SAE International Website.

    ISO 26000 Published as Draft Standard

    The future international standard ISO 26000, which
    refers to social responsibility has reached an
    important milestone with its publication as a draft
    international standard.

    National member
    bodies of the International Organization for
    Standardization (ISO) will be able to vote and
    comment on the text from now until February 14,
    2010. The standard is on course to be published in
    late 2010.

    ISO 26000 will provide
    harmonized, globally relevant guidance on the
    implementation and best practice in social
    responsibility worldwide. Its introduction includes the
    following key messages, stating that ISO 26000:

    • Guidance on principles of social responsibility,
      core subjects, issues, and responsible behavior
    • Useful to small and large companies in private,
      public, and nonprofit sectors
    • Not intended for certification purposes or
      regulatory use
    • Use for beginners and more experienced to
      address social responsibility

    The guidance in ISO 26000 draws on best practice
    developed by existing public and private sector
    social responsibility initiatives.

    For more
    information visit
    ISO SR Web Page
    .

    In the News

    Free Outsourcing and Supply Chain Webinars
    from ASQ.
    The American Society for Quality (ASQ)
    is offering an opportunity to continue professional
    growth with two new free on-demand webinars. The
    webinars titled “Quality in Outsourcing” and “Improving
    Supply Chain Management,” are available for
    downloading in the manufacturing section of the ASQ web
    site.

    Five U.S. Organizations Honored for Innovation
    and Performance Excellence with the 2009 Baldrige
    National Quality Award.
    Read the NIST
    Press Release
    .

    Holding Steady. The economic hardships
    experienced around the globe dominated the
    headlines this year, but quality professionals were
    able to hold their own in a tough environment and saw
    their average salary rise compared to last year. That’s
    just one of the observations you’ll find in the 2009 QP
    Salary Survey
    (PDF), the most comprehensive
    report of its kind.

    Training Courses

    training

    To see the course description, schedule, and
    on-line
    registration click on the course title below. View all our Courses.

    See our Web-Based courses. NEW:
    ISO 9001:2008 Benefits and QMS Requirements.


    Understanding and Implementing
    ISO9001:2008

    ISO
    9001:2008 Process Based Internal Auditor


    Documenting Your Quality Management System



    Understanding and Implementing AS9100C:2009
    Aerospace-NEW


    AS9100C:2009 Process Based Internal Auditor-
    NEW



    Documenting Your Quality Management System


    Understanding and Implementing
    ISO/TS16949:2009 Automotive-
    NEW


    ISO/TS16949:2009 Process Based Internal
    Auditor-NEW


    Documenting Your Quality Management System


    Understanding and Implementing
    ISO14001:2004 Environmental


    ISO14001:2004 Process Based Internal Auditor


    The Five Pillars of a Lean Workplace
    Organization

    Continuous Process
    Improvement

    Lean Six Sigma
    8 Disciplines (8D) of
    Problem Solving-NEW


    Understanding and Implementing ISO 13485:2003
    Medical Devices

    ISO
    13485 Process Based Internal Auditor


    Understanding and Implementing ISO 27001:2005
    Information Security

    ISO
    27001 Process Based Internal Auditor

    All courses can be delivered at your company.
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    see a course, location, or date that fits
    your needs?


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