Application of Quality Improvement Concepts American Society for Industrial Security SFBAC-ASIS Chapter Meeting Jan 17 th, 2002 Speaker: Bob Larson

In Pursuit of Quality “Quality Assurance is a continuously unfolding process. It is not a commodity or one-time process to be left to those who specialize in it. It belongs to everyone, all the time.” Dr. Deming View on Quality

Order of Presentation Process  Some building blocks of a security system  Comments on culture and core values  Process assessment methodology  Reengineering concepts and application  Mistakes in pursuing customer loyalty  Running “lean” opportunity and challenge

The Shangrila Syndrome X X X X X X X X X X Quality Level “We Don’t Have Problems, Why Spend So Much Money?” Shangrila Customer’s Threshold of Pain We’re In Trouble!” “We’re The Tops!” “We Love It!” “Things Are Looking Up” “We’re In trouble!” “Get Everyone Involved” “Fire the Security Person” “Hire New Security Person” Time

Cost of Quality is Often Below the Surface Inadequate Equipment Complaint Handling Problem Reporting Excessive Systems Costs Administrative Costs Lack of Current Knowledge Incorrectly Completed Incident Reports Customer Feedback Late Paperwork Lack of Follow-Up on Current Programs Excess Supplies Lack of Planning Reactive versus Proactive Delayed Response To Customer Call Excessive Employee Turnover Legacy Processes Operational Costs Incomplete Documentation Excessive Overtime Mistakes Wasted Effort Lack of Training Customer Complaints Audit Observations Dept Expense

TITLE Methodology Objective Verification U;/wrkspace/wrkspace/construct/shell/.ppt Fundamental Objective Communications Construct Components FunctionsLevels Security System Building Blocks Individual & Teamwork Accountability Achievement Favorable trend In Prevention & Incident Reports Routine Process Assessment & Revision Plans Proactive Risk Analysis & Interventions Body of Knowledge & Industry Experience Strategic Leadership of Security Professionals Core Values & Security Culture Documentation Problem I.D. Investigations Certification Programs & Recognition Established Standards that Are Shared Budget Performance & Cost Mgmt Customer Survey/Audits Corrective Actn. Security and Safety of People Physical Assets Promote and Apply Best Practices Integrity based Education & Training

Core Values Important to Conducting Process Assessment  Security principles & professionalism  Customer/employee focus for sec/safety  Confidentiality, conduct & integrity  Response timeliness and attitude to serve  Proactive prevention and protection  Continuous improvement mindset

Objectives of a Process Assessment 1. Select or define problems as part of total system 2. Establish & implement simple, efficient data collection 3. Use understandable methods that can be communicated to management 4. Apply: “Plan, Do, Check, Act” to assess and sustain improvements

Process Assessment Questions Do you ever have to redo things? Are there wasted steps in your procedures? Is effort often duplicated or is the process unpredictable? Do communications ever fail? Why? Why are there quality failures in your work?

The Typical Process Model Inputs People Technology Equipment Measures Culture Process Translation Analysis Action Plan Outputs Customer

Guaspari’s Value Matrix Well-Intentioned Value Creating AdversarialBureaucratic Low Process Low Purpose High

Quality Improvement Process First identify the desired output Begin with asking, “who are the customers?” Define the customer requirements Select the performance measurement Develop the improvement goals

Origins of Problems in a Process Processes do not I.D. Need for prevention There are non-value added steps & wasteful measures The inputs/outputs are variable/inconsistent Mistakes occur in execution of procedures Incomplete knowledge of how a process works Inadequate knowledge of how a process should work

Concepts/tools to Assess Process The concept of internal/external customers Concept that all work can be measured Variation often caused by lack of agreement Asking, “am I adding cost, vs adding value” Application of flow charting, data collection Adopting “Best Practices” for best process

Process Assessment Is a Thinking Process l Consider everything is a process l Quality is achieved by improving process l Processes will vary over time l Variations are caused & are both common and special l Leaders job is to understand/improve process and to recognize causes l Leaders encourage to solve prob. Effect strategies

What is Reengineering? The fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical measures of performance. (cost, quality, capital, service, speed) Michael Hammer & James Champy Reengineering the Corporation

What Is the Goal of Reengineering? To streamline operations for: - Superior quality - Increased profitability - Compliance to regulations

What is the Process of Reengineering?  Process Mapping, flow charts, interviews  Evaluation of every step in a process  Think what steps add value for customers  Involve people who do the actual work  Remove those steps that do not add value  Effect new process, evaluate, redo, revise

Sequence of Realizing Quality Through Reengineering A. Customer quality requirements B. Inputs = root cause analysis & best practice C. Reengineering redesign of process D. Output = quality improvement plans E. Prepare Organization for change F. Implementation phase of plan or pilot run

7 Critical Mistakes When Pursuing Customer Loyalty 1. Disinterested sounding telephone answering techniques. 2. Thinking customer service means doing anything the client wants. 3. Being slow in handling customer complaints. 4. Being reactive and not doing a root cause study. 5. Security executives not meeting regularly with client executives. 6. Not knowing when to say no. 7. Making promises you cannot keep. Source: The Art of Successful Security Management by Dennis Dalton

Challenge to Run “Lean” Most operations must do more with less Knowing what is important will help focus resources Process study helps identify strengths and weaknesses Removing waste in processes will help do more with less Resource constraints force one to be creative and “just do it!”

“It is not how much we do, but how well we do it that determines worth. The first measurement of any work is Quality.” Leroy Brownlow