Game Changing Quality Strategies that Drive Organizational Excellence

Kush K. ShahASQ Fellow, GM Technical Fellow

Six Sigma MBB, Shainin Red X MasterASQ – CMQ/OE, CSSBB, CQE, CQA, CBA

September 15, 2016

What Did Quality Mean in the Past?• Focus on parts:

– Conformance to requirements– Defects / deficiencies– Within specifications

• The Goal was customer acceptance

What Does Quality Mean Today?• Today, the Customer assumes all parts will work as a given• Less than 50% of issues reported by the customer are hard

failures• The Goal is to surpass customer expectations without

unpleasant surprises

What is Organizational Excellence?

What does Organizational Excellence mean to you?

ASQ Definition: Organizational excellence refers to ongoing efforts to establish an internal framework of standards and processes intended to engage and motivate employees to deliver products and services that fulfill customer requirements within business expectations.

Game Changing Strategies1. Customer-Centered Approach to Quality2. Enterprisewide Engagement3. Disciplined Problem Solving4. Risk Management5. Integrated Approach to Data Analytics 6. Closed Loop Learning7. Innovation

1. Customer-Centric Approach to QualityCustomer’s Perception of Quality• Things Gone Wrong (QRD)

– Covered under warranty period - responsiveness and degree of resolution

– Not covered under warranty period – out of pocket cost

• Features:– Inconvenience and discomfort - inappropriate design– Likes and dislikes - information to the customer after purchase

“There is only one boss. The customer. And he can fire everybody in the company from the chairman on down, simply by spending his money somewhere else.” – Sam Walton

1. Customer-Centric Approach to Quality

Styling

Ease of UseDriving &Handling

Features

Reliability

SafetyCustomer Service

Customer

1. Customer-Centric Approach to QualityTypes of Customers:• Fully Engaged – Strongly attached and loyal. Your most valuable

customers• Engaged – Beginnings of emotional attachment but not strong• Not Engaged – Emotionally and attitudinally neutral• Actively Disengaged – Active emotional detachment and antagonist

Source:Gallup

“Houseof Quality”

RELATIONSHIPMATRIX – Between

What and How

WHAT

HOW

target valuesHOW MUCH

CORRELATION

BENC

HMAR

K

1. Customer-Centric Approach to Quality –Quality Tools

(Attractive Quality)

(One-Dimensional Quality)

(Must-Be Quality)

Kano Model

2. Enterprisewide Engagement

Design

Engineering Supplier Manufacturing

Sales & Service

Concept Field Performance

2. Enterprisewide Engagement

Mission

Vision

Strategic ObjectivesTactical Objectives

Measures

Why we exist

What we want to be

Indicators and Monitors of success

Desired level of performance and timelines

Planned Actions to Achieve Objectives

O1 O2

AI1 AI2 AI3

M1 M2 M3T1 T1 T1

Specific outcomes expressed in measurable terms (NOT activities)

Strategic Plan Action Plans Evaluate Progress

Targets

Initiatives

What we must achieve to be successful

2. Enterprisewide EngagementWe are change agents that drive organizational excellence

3. Disciplined Problem Solving• Definition of Problem: Anything that deviates from what is expected

or desired.

• Problem Solving Options?– Try Something and Wait– Do What Has Been Done in the Past– Find an Expert and do what we’re told– Brainstorm– Have a Meeting and Vote– Change the Design– Attribute It to Normal Variation– Assign a Task Force– Do a Deep Dive– Don’t Tell Anyone– Blame a Supplier– Do Nothing

3. Disciplined Problem SolvingDeloitte AIAG Quality 2020 Study

Improve Robustness

Common Cause

VariationSpecial Cause

Variation

TransactionalSix Sigma

Reduce Variation / Defects

Purpose

Improve FlowReduce Waste

Improve Product / Process Design

Business Processes Manufacturing

/ EngineeringSix Sigma

LeanReduce

Risk

Disclaimer: Tools from different techniques can be used (integrated) on a single project so the purpose of this chart is not to silo different techniques but to help on identifying more prominent approach for the type of project.

3. Disciplined Problem Solving

Shainin Red X DFSS FMEA

ProjectSuccess

Critical Elements of Problem Solving3. Disciplined Problem Solving

4. Risk Management• Risk Identification

– Identification significant risks based on organization’s risk appetite• Risk Analysis

– Measure risks consistently with respect to enterprise objectives– Prioritization and quantification– Assignment of specific responsibility for controls to mitigate risks

• Risk Response– Scenario development– Action Plan Implementation

• Risk Control– Hold the gains through monitoring and controls

• Introduction - risk-based thinking is explained• Clause 4 - organization is required to address the risks and

opportunities wrt QMS processes• Clause 5 – top management is required to promote awareness of

risk-based thinking and determine and address risks and opportunities that can affect product /service conformity

• Clause 6 - organization is required to identify risks and opportunities related to QMS performance and take appropriate actions to address them

• Clause 9 - organization is required to analyse and evaluate effectiveness of actions taken to address risks and opportunities

• Clause 10 - organization is required to correct, prevent or reduce undesired effects and improve the QMS and update risks and opportunities

18

4. Risk Management – ISO 9001: 2015

4. Risk Management – Quality Tools

SystemFMEA

DesignFMEA

ProcessFMEA

SubsystemsMain Systems Components Manpower

MachineMethodMaterial

MeasurementEnvironment

Design’s impact on Manufacturing

System’s impact on Component

Manufacturing’s impact on Design

Component’s impact on System

DFSS Control Plan

PROACTIVE APPROACHProblem Prevention:High LeverageLow VisibilityLow CostCustomer EnthusiasmDifficult to Measure Performance

REACTIVE APPROACHProblem Solving:Low LeverageHigh VisibilityHigh CostCustomer DissatisfactionEasy to Measure Performance

Where are your organization’s resources focused?

Organizations that are always putting out fires will eventually get burned.

4. Risk Management – Proactive vs. Reactive

5. Integrated Approach to Data Analytics• 89% of US Businesses are investing in data and data analytics and

41% claim that their systems cannot make sense of large volumes of data from different sources

• Expanding data:– Data Volume– Data Variety– Data Velocity

• Types of business data – Sales, Marketing, Operational, Quality, Service, HR

• Factors to be Considered in Big Data Analysis: – Automation - Analysis and complex computations – Reproducibility - Analysis results can be reproduced – Flexibility - Data repository can organically expand & extend– Robustness - Less error prone

5. Integrated Approach to Data Analytics

• Neither Time or Miles analysis could highlight the underlying failure mechanism

• Customers opt in to send OEMs hundreds Gb of engineering log data per day from thousands of vehicles

• Advantages of Big Data Analytics:– Enable data-driven decision making in field reliability– Faster decisions made with higher confidence– Higher impact on service decision– Higher influence on design targets and testing specs for next

generation vehicles

Automotive Example - SunroofSource: 2014 ARS, North America, Indianapolis- Better Field Reliability with Big Data Analytics -Georgios Sarakakis, Jason Shiverick, Carlo Torniai, Tesla Motors

5. Integrated Approach to Data AnalyticsData To Decision Pyramid

Closed loop learning is not frequent improvement

When we re-invent for each generation of product

Time

Closed loop learning means building on past accomplishment and its learning to achieve a new height.

6. Closed Loop Learning

6. Closed Loop Learning

Time

Less VariationShorter Spike DurationBetter Starting PointSteeper Slope Aggressive Remediation

QualityPlanning

QualityControl

QualityImprovement

Proble

ms Ex

perie

nced

InnovationDisciplined Execution Closed Loop Learning

Enterprise Engagement

Benchmark

Start ofProduction

7. Innovation

Top Innovation Factors in an Organization:• Culture (employee attitudes & participation)• Senior Leadership Support (risk/long-term results)• Capabilities (workforce talent, training, & experience)• Strategy (alignment to profitable growth & business goals)• Process (effective methods & tools)

“Research is the transformation of money into knowledge.Innovation is the transformation of knowledge into money.”

Dr. Geoffrey Nicholson, 3M (inventor of the Post-It note)

Innovation is the successful conversion of new concepts and knowledge into products and processes that deliver new customer value in the marketplace

Innovation and Value Creation Technical Committee, 2009

7. Innovation

• Genrich S. Altshuller - the Father of TRIZ• Leading to 3 key discoveries:

1. Problems and solutions were repeated across industries and sciences

2. Patterns of technical evolution were repeated across industriesand sciences

3. Innovations used scientific effects outside the field where theywere developed

>200,000 Patents

~1,250typicalsystem conflicts

~40techniquesfor overcomingsystem conflicts

7. Innovation – TRIZ Overview

7. Innovation – TRIZ OverviewTrade-off Contradiction Example:• Number of features of a product increases, power use gets worse• Number of features of a product increases, size gets worse• Diversity of services provided to customers gets better, but amount of

training required gets worse

Ideality = S Benefits / (S Costs + S Harm)

7. Innovation

• What functions do I deliver to my customer?• How can I improve usefulness of my function?• Do I need the current product / process for that?• How efficient is my current product / process really?

Operational questions

Summary – Game Changing Strategies1. Customer-Centered Approach to Quality2. Enterprisewide Engagement3. Disciplined Problem Solving4. Risk Management5. Integrated Approach to Data Analytics6. Closed Loop Learning7. Innovation

Kush Shah asq.1000@gmail.com