2. MANAGING QUALITY LYIT, Certificate in Business & Enterprise 4 th October 2007

3. Process Approach

4. Business is about……  Identifying customer needs  Translating these into products/services  Supplying the products/services to customers  to achieve customer satisfaction at a profit  Managing the product/service provision efficiently by  Measuring the performance (both internally and with customers)  Analysing the results  Driving continuous improvement

5. Process Approach Quality Control Loop RecordImprove Analyse Measure

6. ISO 9001:2000 – Key Elements Management Responsibility –Management commitment –Customer focus –Quality policy –Planning and review Resource Management –People –Infrastructure –Environment

7. ISO 9001:2000 – Key Elements Operations –Planning –Customer processes –Design –Purchasing –Production / Service processes Measurement, Analysis & Improvement –Measurement for: Customer satisfaction Internal audit Monitoring & measurement of productivity and processes

8. ISO 9001:2000 – Key Elements Control of Non-conformance –On customer satisfaction, product and processes, conformity & trends, suppliers Improvement –Continual improvement –Corrective & preventive action

9. ISO Procedures Only 6 mandatory documented procedures: –Control of documents –Control of records –Internal quality audit –Control of non-conformance –Corrective action –Preventive action

10. ISO Key Issues Simplicity Relevance Practicality Implementation Focus on improvement Address the entire business – not just production

11. EFQM Model

12. EFQM Excellence Model The EFQM Model can be used: As a tool for Self Assessment As a way to Benchmark with other organisations As a guide to identify areas for Improvement As the basis for a common Vocabulary and a way of thinking As a Structure for the organisation’s management system

13. EFQM Model Criteria Leadership Policy and Strategy People Partnerships and Resources Processes Customer Results People Results Society Results Key Performance Results

14. PEOPLE RESOURCES LEADERSHIP & PLANNING OPERATIONS & PROCESSES RESULTS PRACTICESRESULTS Foundation Mark Model

15. Customer needs clearly understood Consistency in product and service Plans in place for the Business Employee development and involvement Continuous improvement Measuring techniques in place for Key Performance Indicators (KPI’s) Core Values

16. All encompassing approach Increases competitive advantage Links management activities with results achieved Introduces concepts of Best Practice Benefits for the Company

17. Vibrant, well led organisation Capacity to grow, develop, improve Commitment to excellence and to best practice Ideal Candidate Profile

18. a)Management style supports and promotes quality and ongoing improvement a)Managers demonstrate importance of customer a)Management plan for future of the business Criteria Element 1: Leadership & Planning

19. a)Roles and responsibilities are clearly defined a)Applicable legislation is identified and complied with a)People are trained and developed to support the planned activities of the business a)Effective 2-way internal communications is managed Criteria Element 2: People Management

20. a)Financial resources are effectively managed b)Suppliers are effectively managed c)Environment – relevant issues are identified and addressed d)Buildings, plant and equipment are well utilised and managed e)Information is managed and used effectively f)Management remains in touch with new and emerging developments and technologies Criteria Element 3: Management of Resources

21. a)Customer needs are defined b)Operational activities are planned c)Processes are managed to ensure consistency and to meet customer requirements d)Key Performance Indicators (KPIs) are used e)Customer feedback is captured and acted upon Criteria Element 4: Operations & Process Management

22. a)Customer satisfaction – indicators and results b)Business results – indicators and results of performance c)People satisfaction – indicators of the level of people satisfaction Criteria Element 5: Results

23. The Balanced Scorecard How do you measure business success ? Traditional Financial Model Financial measurement and financial reporting to Monitor and manage the progress of a business –Is this adequate ? –If not, then why not ? –What might be better ?

24. Balanced Scorecard Hierarchy of Business Goals Financial Performance (ROCE) Financial What and how do we supply the products and services Where and how to get there How Main Business Goal Satisfied Customers On-time Delivery Process Quality (process cycle time) Employee Skills Learning & Growth Performance Internal Business Performance Customer Performance

25. Financial Scorecard To succeed financially how should we appear to our shareholders ? ObjectivesMeasuresTargetsInitiatives Sales% growth p.a ProfitGross % Nett % Revenue Growth€%€% Product Cost Reduction Profit by Product or Service

26. Customer Scorecard ObjectivesMeasuresTargetsInitiatives Rapid ResponseOrder lead time5 daysOne piece flow Reliable QualityCompliant rate Return rate ZeroProcess improvement Product re-design New Product Availability Time to market3 months To achieve our vision how should we appear to our customers ?

27. Internal Business Process Scorecard ObjectivesMeasuresTargetsInitiatives ProductivityQuotation response time Units output/week QualityRe-work rate Scrap level InnovationUnique offerings Client value % sales from new products Time to market for new products What business process must we excel at to satisfy our customers (and shareholders) ?

28. Learning and Growth Scorecard ObjectivesMeasuresTargetsInitiatives Upgrade competencies to meet future needs Training & development plan Personal development plan ITN completed Training plan completed People satisfactionProductivitySales per employee