Archive for January, 2019

Impact of Quality Metrics

Thursday, January 3rd, 2019

 

This Month

 Events
 
SES Lunch and Learn on January
23, 2018.
 
Sponsored by the AZ Technology Council. More Information and Registration Below.

 

      

 

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What We Deliver
  • Operational and Quality Systems
  • Assessments
  • Training
  • Internal Audits
  • Lean Enterprise
  • Six Sigma
  • Kaizen Events 
  • Breakthrough Improvement
  • Baldrige Performance Excellence
  • Executive Coaching
Improved Profits and More!
Welcome to the New Year!
 
As always we have provided you with a range of topics this past year. Our goal is to support you in your continual development and improvement of your management systems and overall business performance. 
 
As we plan ahead for 2019, we would love to know what topics you would like to see in the new year… is there a particular subject you’re interested in learning more about? Do you have a query around a specific element of a  standard, or method of effective improvement? Please let us know.  

 

Impact of Quality Metrics
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Senior leaders are often inundated with data which makes it difficult to pull out needed visibility into operational metrics. As this new year begins, this is a great time and opportunity for your organization to review and consider new ideas as to what you maybe missing with expanded overall performance measurement.  Gaining more control of the impact quality has over your business requires metrics that represent the effectiveness of the operational and quality system.

The following metrics will help however, depending on your industry and requirements additional metrics most likely would apply.

1. Cost of quality. The definition of this metric is similar to the way it sounds. It measures the cost incurred by an organization to manufacture a quality product or service. Further narrowing things down, these costs come from two main categories: cost of good quality and cost of poor quality.

2. Overall equipment effectiveness (OEE). Quality affects many different parts of the business, so it is critical to establish a comprehensive metric that provides visibility into the most important areas of operations. The answer to this lies with calculating the OEE formula: OEE = Availability × Efficiency × Quality.

First, OEE measures how often an asset is available when it should be producing product for a customer. Second, when an asset is producing product for a customer, OEE measures how close the asset is producing to its theoretical maximum. And third, for those products that are produced, OEE measures the percentage that are produced within quality specifications.

3. Percentage of products in compliance. This is a critical metric in regulated industries such as medical devices, pharmaceutical, and biotechnology. Even in industries such as automotive, aerospace, and defense, this metric plays a crucial role. It measures the percentage of products that are in compliance with government regulations and internal guidelines.

Additionally, compliance to restriction on hazardous substances (ROHS), or the waste electrical and electronic equipment (WEEE) directive impact companies differently based on the industry, which adds to the complexity of selling in a global market. This metric measures how effective your organization is in being compliant with local, national, or global policies that affect your business.

4. On-time and complete shipments. Managing the quality of the product should not be at the expense of delaying final delivery from the plant floor. Even though on-time and complete shipments as a metric sounds fairly easy to understand, there are many different ways companies measure this metric. One definition is this metric as percentage of products delivered on time and complete with no errors or redelivery dates.

 

5. New products introduction (NPI). NPI as a metric is defined as a percentage of new products introduced in the market that hit time, volume, and quality targets. New products are often introduced in the market and are a source of competitive advantage in industries such as automotive and consumer electronics.  Profit growth depends not only on how successful your organization is at introducing new products into the market, but also how effective your organization is at hitting NPI targets.

These five key metrics provide senior leaders with critical insight into operational and financial performance. Interested in a list of further process performance metrics we have gathered over our many years assisting manufacturing and service organizations?  Contact Us!

 

Achieve Breakthrough Performance!
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Sustaining Edge Solutions, Inc. Jan 2019 Lunch and Learn.
 
Sponsored by the Arizona Technology Council. The AZTC is the premier choice for business networking events in all of Arizona. 

At this Lunch and Learn, attendees will learn how to develop a framework for evaluating and establishing breakthrough improvement at their organizations.

In today’s highly competitive marketplace, organizations that succeed use a systematic approach in the design, integration, and alignment of strategic business efforts and leadership decision making. These organizations use an evidence-based business model to understand and act on the needs of stakeholders to achieve breakthrough improvement and scalable profit growth.

Speakers for this lunch and learn event are Walter Tighe, President and Owner of Sustaining Edge Solutions, and Dennis Stambaugh, Senior Management Consultant of Sustaining Edge Solutions.

Location: Brother John’s Beer, Bourbon & BBQ

1801 N. Stone Ave.Tucson, AZ
Date: Wednesday January 23, 2019
Time 11:30AM-1:00PM

There is no charge to attend, and lunch is included. Wow – There is such a thing as a free lunch.

 
REGISTER NOW!  LOOKING FORWARD TO SEEING YOU.

 

Internal Audit Process Importance
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Conducting internal process audits is a mandatory requirement with major quality systems standards. The ISO 9001:2015 Standard tells us we will take into consideration the importance of the processes concerned, changes affecting the organization, and the results of previous audits. 

When effectively implemented, internal auditing can be considered the most important tool in your business management system. It’s the primary method for continuously monitoring a company’s operational efficiency and effectiveness. In fact, the feedback from internal auditing is critical to the growth of business effectiveness and the standardization of effective processes.

Unfortunately, a poorly deployed internal auditing system can lead to increased nonvalue-added costs, many hours of wasted human resources, and a potential breakdown.  The following is an example of a common pitfall to poor and ineffective internal audit deployment: Not understanding the definition of the importance of the processes concerned.

The importance of processes can be interpreted differently, but their intent is often misunderstood. It can be defined as how a particular department, discipline, facility, or process is performing against established policies, goals, objectives, and expectations.

 

Some questions to ask when considering importance can include:
  • What are the performance indicators for an area, group, or department reflecting?
  • What does the performance history indicate?
  • Have these indicators been the result of root cause corrective actions? Are they recurring?
  • Have there been changes in process, equipment, personnel, or management?
  • Has the area or department been restructured or reorganized?
When scheduling internal audits, consider other important aspects such as:
  • What’s been the past performance history?
  • Are there any new employees, equipment, or management personnel?
  • How effective is the training system?
  • What do past audit results indicate?
  • How critical is that area? (risk or customer touch point).
When you build your company audit plan on importance of the processes concerned your focus is process oriented, not checklist mandated. Truly effective audits don’t just concentrate on process weakness, but on process potential.  

 

ISO 9001 to Computer Software
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Developing software is not always a straightforward process.  An International Standard to apply the principles of the world’s most widely used quality management system enables engineers to smooth out the process.

ISO/IEC/IEEE 90003, Software Engineering – Guidelines for the application of ISO 9001:2015 to computer software, is designed as a checklist for the development, supply and maintenance of computer software.
The recently updated version combines the proven benefits of  ISO 9001 with some of the world’s most important support documents in software engineering, allowing an organization to benefit from international best practice in improving quality at every step of the life cycle. This includes everything from the supply, acquisition, operation and maintenance, to the circular process of continuous improvement.

This guideline has been written by software experts from many different countries, it adds great value to the wealth of knowledge already accumulated in the software world. It also provides links to other software engineering standards that may be of use to software developers, such as software life-cycle processes, information security and testing.

To purchase ISO/IEC/IEEE 90003, Software Engineering Guidelines visit the ANSI Webstore.

 

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In the News
Predictive Maintenance Breathes New Life into Legacy Equipment

Ask anyone in manufacturing about the biggest changes in their industry and you’re almost guaranteed to hear about the Industrial Internet of Things (IIoT). The potential benefits of connecting all the assets in a factory-or even multiple factories-together under a common platform are enormous, with applications ranging from quality control to predictive maintenance.

 
For more information see the engineering.com article.

 

ASQ Lean and Six Sigma Conference 2019 

      

The ASQ Lean and Six Sigma Conference will be held on March 4-5, 2019  in Phoenix, Arizona. Do you have technical proficiencies and leadership responsibilities within your organization? Are you actively involved in process improvement, organizational change, and development dynamics related to a successful lean and Six Sigma culture? This conference is for you!

For more information and to register visit the conference website.  We will be in attendance- See you there!

 

Pricing it Right 
 
Price transparency is one way of gaining consumer trust by making purchasing choices easier. A new standard for unit pricing will help consumers compare products quickly and effectively, a win-win solution for all.

Guidance on unit pricing, aims to clear up the confusion by defining unit pricing systems and enhancing transparency of pricing information. The standard provides guidance on how unit pricing should be displayed in-store (both on-shelf and on packaging), online and in advertisements. It also highlights the importance of clarity and consumer education. For more information visit the ISO Website.

 

Training Courses
 
All courses can be delivered at your company or at our training centers. We do provide training beyond our home state of Arizona. Click on the course title for description, schedule, registration and payment. Group discounts are available. We also provide custom designed training to fit your specific needs. All training is fully documented for your training records and certificates of training are awarded.
 

Don’t see a course or schedule that fits your needs?  Contact us.

 
Make a Difference in 2019!

At this time of year it is natural to reflect on your annual performance and set personal and business goals for the new year.

The question is what kind of results do you want to create for yourself and your business? Do you have customers coming back for more of your product or service? Do you have a set of ideal customers you want to cultivate? Are your business processes in control and capable of producing what you and your customers require on a continuous basis?

The demands of today’s business environment have caused many of us to shift our approach from thinking as a professional to acting as an entrepreneur. Avoiding past mistakes and taking the time to plan your next moves can make the difference between an exceptional year, and a mediocre year for you and your organization.

 

Walter Tighe and SES Team
Sustaining Edge Solutions, Inc.
Toll Free 888-572-9642