We just attended the Aerospace and Defense Requirements Conference at the Phoenix Convention Center this week.  In our home state of Arizona, we have many suppliers providing products and services to the Aerospace and Defense industry. This conference was sponsored by many prime manufacturers such as Honeywell, Boeing, and Raytheon; including being presented by the Arizona Technology Council, where Sustaining Edge Solutions is a member company.

The primary goal of this conference was to allow those who attended the opportunity to hear firsthand what type of supplier requirements it takes to become a preferred supplier.  A common theme from BAE Systems, Northrop Grumman, Boeing and other presenters was the need, NO the Requirement that all suppliers must have an effective Quality Management System and Certification to ISO 9001/AS9100.

The following are notes we quickly wrote as the speakers presented:

• Must have ISO/AS certification, a strong Quality Management System.
• Just-in-time supply systems, including a 100% on-time delivery.
• Zero parts per million – supplier expectation.
• Cost, quality and schedule imperative for all suppliers
• 42% of Boeing Defense, Space and Security revenue is subcontracted.
• Deliver value and solutions – must be customer focused.
• Have an up-to-date website.  “Let people know who you are.”
• Register for online RFP applications
• Know your customer and potential customers quality requirements.
• Improve affordability and efficiency through Lean Operations.

What’s the take away here?  Supplier opportunities do exist according to all the presenters we heard.  At a minimum, if your company is not certified to the ISO 9001/AS9100 standard, you won’t be considered.  Also, having an effective lean manufacturing program focus on quality, cost, and schedule is highly desirable.

We can help you and your organization achieve these critical supplier requirements.

Our friends at the Phoenix Police Department’s Records and Identification Bureau were the first U.S. police department registered to the ISO 9001 standard back in 2003.

We just read that another police department, The Emergency Communications and Property Room Divisions of the Houston Police Department (HPD) was recently certified to ISO 9001:2008. HPD is the largest police department in Texas and the fifth largest in the United States.  They pursued ISO 9001 certification, in part, because it establishes clear guidelines and goals against which they can measure achievements. Primarily, HPD determined that the ISO quality management system provides the ideal business model to further the Department’s commitment to continually improve its effectiveness in serving the needs of the community.

The Emergency Communications Division (ECD) is typically the first point of contact that the HPD has with the citizens of Houston. More than 1.2 million calls for service are dispatched by the ECD every year, which further include calls to utilize alternate response strategies. The process is designed so that 9-1-1 calls are initially received by a cadre of independent call takers who then distribute calls-for-service requests to the HPD or the fire department, accordingly.

A cultural shift

Countless improvements were realized in both divisions during the course of the QMS implementation. As stakeholders became more engaged and empowered, several time-saving ideas became evident and cost-savings were revealed. Creating process maps allowed everyone to actually see the sequence and flow of tasks and to identify nonvalue-added activity. This visual approach also made it possible to ensure process interconnectivity, or lack thereof.

There is a burgeoning interest in continuous improvement. With quantified performance improvement in virtually every work process, the incentive to sustain mutually beneficial supplier-customer relationships is now established.

Congratulations to another major police department achieving ISO 9001 success!  Another example that certification success is obtainable for any organization; even ones that carry weapons.  :)

U.S. Commerce Secretary John Bryson announced four organizations—three health care operations and one nonprofit business—as the recipients of the 2011 Malcolm Baldrige National Quality Award, the nation’s highest honor for performance excellence through innovation, improvement, and visionary leadership. This marks the first year that three health care organizations have been selected at one time.

The 2011 Baldrige Award recipients—listed with their category—are:

• Concordia Publishing House, St. Louis, Missouri (nonprofit)

• Henry Ford Health System, Detroit, Michigan (health care)

• Schneck Medical Center, Seymour, Indiana (health care)

• Southcentral Foundation, Anchorage, Alaska (health care)

The 2011 Baldrige Award recipients were selected from a field of 69 applicants. All of the applicants were evaluated rigorously by an independent board of examiners in seven areas defined by the Baldrige Criteria for Performance Excellence: leadership; strategic planning; customer focus; measurement, analysis, and knowledge management; workforce focus; operations focus; and results. The evaluation process for each of the recipients included about 1,000 hours of review and an on-site visit by a team of examiners to clarify questions and verify information in the applications.

Named after Malcolm Baldrige, the 26th Secretary of Commerce, the Baldrige Award was established by Congress in 1987 to enhance the competitiveness and performance of U.S. businesses. The award promotes excellence in organizational performance, recognizes the achievements and results of U.S. organizations, and publicizes successful performance strategies. The award is not given for specific products or services. Since 1988, 90 organizations have received Baldrige Awards.

For more information, go to www.nist.gov/baldrige.

A series of groundbreaking case studies by the International Organization for Standardization (ISO) and partner organizations shows that implementing standards can provide economic benefits from between 0.5 and 4 percent of companies’ annual sales revenues. The studies are based on the experiences of 11 companies operating in a variety of business sectors in 10 countries.

The size of the companies varies from a small business with 25 employees and annual sales revenue of around $4.5 million, to companies with several thousand employees and annual revenue of more than $1.5 billion.  They operate in a variety of business sectors: agri-food, chemicals, construction and construction materials, electrical appliances, electrical power transmission, food retail/food logistics, industrial automation equipment, and information and telecommunications.

These case studies were undertaken in close cooperation between an ISO member body, an academic institution, a company in the respective country, and staff of the ISO Central Secretariat acting as advisors to the project team.

Readers interested in more details of the preliminary case studies can find the full versions of the reports originally developed by the project teams and summary presentations about each project at the iso.org website.

Interested in more information on the proven financial benefits of ISO Registration, contact us. Share with us your organization’s benefits derived from registration.  These benefits are much more than financial. Let us know and we will publish your comments in our next monthly newsletter!

Top Ten Tips to avoid Lean Six Sigma deployment problems according to More Steam:

1. Leadership cannot be delegated.
Successful and durable process improvement efforts depend on senior leadership engagement. Leaders should be active teachers. “Engaged” means process improvement activities are on their calendar and on their “to do” lists – not an initiative that is assigned to others.

2. This is not an “organic” exercise at the beginning.
A certain amount of fascism is required to get things started. Most important projects will cross functional boundaries, so leadership will need to enforce value stream thinking that puts customers ahead of departmental priorities.

3. The “M” in DMAIC does not stand for Months.
Don’t let people get hung up on playing with tools at the expense of getting things done.

4. Don’t take on projects that have massive scope.
It is better to execute a series of smaller, tightly-focused projects that get done.

5. Remember the “3APs”:
Go to the Actual Place (Gemba) where the work is done, observe the Actual Process as it is performed, and talk to the Actual People who perform the process. Beware of Gembaphobia (the fear of going to where the work is actually performed) – tough problems can’t be solved from a conference room.

6. Don’t pick the most available people to become project leaders (Black Belts and Green Belts).
There’s a reason why those people are available, and it’s not because they get things done. Make the functional leaders cough up their best people. Those people will get more done with the right attitude and good people skills than with a mastery of advanced technical methods.

7. Avoid establishing a “Caste System” or “Expert Culture” where only experts can solve problems.
Everyone can use these tools and this thinking in their daily work. Waiting for an “expert” can become a convenient excuse.

8. Don’t operate in secret.
Over-communicate to offset the natural fear of change and suspicion.

9. Don’t forget middle management.
The layer of clay requires extra attention to penetrate. Middle managers must get on board for the approach to have legs. If leaders lead, middle managers will follow.

10. Don’t train without projects!
It’s a total waste of time and money. Don’t over-train, in advance, in batches. Try to pull as needed. Most improvement is accomplished with the simplest tools. The discipline to recognize problems from a customer perspective and address them head-on is more important than technical skills.

We agree with all of these Tips to avoid Lean Six Sigma deployment problems and have witnessed them.  Tell us which of these you faced in your organization, including how you overcame them and your suggested TIPS!