Published on April 21, 2008
Fundamentals ofQuality Initiativeswith Mark Johnenin cooperation with theNational Highway Institute: Fundamentals of Quality Initiatives with Mark Johnen in cooperation with the National Highway Institute We will begin promptly at 1:00 p.m. EDT. Poll: E-learning is the best way to learn: Poll: E-learning is the best way to learn Yes No Poll: In baseball, how many outs are there in an inning?: Poll: In baseball, how many outs are there in an inning? 2 3 4 6 9 Live Meeting Practice: Live Meeting Practice Practice asking the instructor a question (Please make them one word answers!!!) Practice “raising” your hand for a question or a comment. (from the “map” at the bottom of the window) For sites with more than one participant, decide how you will respond to polls, questions, etc. For example: the number of years of experience with quality programs. After you have completed these actions, let me know that I can move on in the simplest manner you have identified in Live Meeting. Fundamentals ofQuality Initiativeswith Mark Johnenin cooperation with theNational Highway Institute: Fundamentals of Quality Initiatives with Mark Johnen in cooperation with the National Highway Institute Poll: In relation to the rest of your duties, how important is managing Quality?: Poll: In relation to the rest of your duties, how important is managing Quality? Unimportant Not particularly important Slightly important Moderately important Very important Fundamentals of Quality Initiatives: Fundamentals of Quality Initiatives Objectives: Understand Key Concepts of ISO, Six Sigma, and Baldridge Quality Systems Identify resources including AASHTO to find more information on quality programs Describe types of organizations using the various different quality initiatives Question:: Question: Why is Quality Important? Question:: Question: What Quality processes and programs have you experienced? Introduction toISO Quality Systems9000 / 14000: Introduction to ISO Quality Systems 9000 / 14000 Poll: Are you familiar with ISO?: Poll: Are you familiar with ISO? Yes No The meaning of ISO: The meaning of ISO The International Organization for Standardization (ISO) is a worldwide federation of national standards bodies from 130 countries. ISO derived from Greek 'isos‘ Meaning 'equal‘ or 'standard‘ ISO administers over 11,000 standards covering 97 categories ISO Fundamentals: ISO Fundamentals Say what you do Do what you say Prove it Documentation ISO Certification: ISO Certification Not delivered on behalf of ISO itself ISO Directory Lists accreditation & certification bodies No mechanism governing the mutual recognition of registration certificates guidelines prepared by the ISO Committee on conformity assessment The ISO 9000 & 14000 family: The ISO 9000 & 14000 family ISO 9000 family focus is on quality management, meaning how does an organization fulfill: The customer's quality requirements Applicable regulatory requirements Enhanced customer satisfaction Continual improvement of its performance ISO 14000 family is primarily concerned with environmental management, meaning how does an organization: minimize harmful effects on the environment caused by its activities achieve continual improvement of its environmental performance What is the ISO 9000 family?: What is the ISO 9000 family? The ISO 9000 family consists of: ISO 9000: 2000 Quality management systems - Fundamentals and vocabulary ISO 9001: 2000 Quality management system – Requirements ISO 9004: 2000 Quality management system - Guidelines for performance improvement ISO 9001: 2000: ISO 9001: 2000 This is the key standard of the family. Quality management system Requirements The standard clauses or areas are: Quality management system Management responsibility Resource management Product realization Measurement analysis and improvement ISO 9001: 2000: ISO 9001: 2000 Five key statements. The organization shall: Determine the needs and expectations of customers and other interested parties Establish policies, objectives and a work environment necessary to motivate the organization to satisfy these needs Design, resource and manage a system of interconnected processes necessary to implement the policy and attain the objectives Measure and analyze the adequacy, efficiency and effectiveness of each process in fulfilling its purpose and objectives Pursue the continual improvement of the system from an objective evaluation of its performance. Poll: What does ISO 9000: 2000 contain?: Poll: What does ISO 9000: 2000 contain? Quality Management systems Fundamentals and vocabulary System Requirements Guidelines for performance improvement ISO 9000: 2000 : ISO 9000: 2000 ISO 9000 has two sections: Fundamentals of quality management systems Presents general approach In plain language A 'systems' and 'process' approach Illustrates why ISO requirements are necessary Contains the quality management principles The vocabulary of quality management systems defines terms used in 9000 family standards To facilitate translation Retains common roots What the 9000 family is NOT: What the 9000 family is NOT NOT a series of product standards NOT a quality management system Does NOT describe a quality management system Question:: Question: What companies have you seen ISO 9000 certified? What is the ISO 14000 family?: What is the ISO 14000 family? The ISO 14000 family consists of: ISO 14001: 2004 - Environmental management systems -- Requirements with guidance for use ISO 14004: 2004 - Environmental management systems -- General guidelines on principles, systems and support techniques ISO 14015: 2001 - Environmental management -- Environmental assessment of sites and organizations (EASO) ISO 14040: (series) - Life cycle assessment What is ISO 14000?: What is ISO 14000? Management tools for organizations to: Control their environmental aspects Improve their environmental performance What is ISO 14001?: What is ISO 14001? An international standard for environmental management systems (EMS) Can be applied to almost any industry What is an ISO 14001:2004-based EMS? : What is an ISO 14001:2004-based EMS? A management tool enabling an organization of any size or type: To control the environmental impact of its activities, products or services To continually improve its environmental performance Does not specify levels of environmental performance ISO 14001:2004 provides a framework for an overall, strategic approach to an organization's environmental policy, plans and actions Benefits of ISO 14001: Benefits of ISO 14001 Assigns accountability and provides environmental due diligence for directors, management and workers Reduces environmental impact Improves compliance record Improves operating efficiency Reduces raw material/resource use Reduces waste generation and disposal costs Manages utilization of recoverable resources Conceptual Framework ISO 14001 EMS: Conceptual Framework ISO 14001 EMS Summary: EMS - SOPs: Summary: EMS - SOPs Both cover planning, construction, maintenance of roads/drainage Both use same checklists EMS procedures follow ISO framework SOPs also cover internal admin tasks EMS aimed at licensees and contractors SOPs not intended for external use Question:: Question: What companies have you seen ISO 14000 certified? NEPA & ISO 14001: NEPA & ISO 14001 National Environmental Policy Act Most principles applied during design phase ISO 14001 EMS approach A flexible, systematic way to factor environmental protection and enhancement into all phases of transportation decision-making and program delivery ISO supports NEPA compliance, reducing potential NEPA impact while improving performance When should ISO be used?: When should ISO be used? To gain competitive advantage To confirm we are taking the right approach Use: ISO 9000 to comprehend the principles of quality management systems ISO 9001 to assess a quality management system or specify generic requirements ISO 9004 to improve the quality management system ISO 10012 for measuring equipment ISO 19011 to manage an internal and external audit program Introduction to the Six Sigma Quality System: Introduction to the Six Sigma Quality System Poll: Are you familiar with Six Sigma?: Poll: Are you familiar with Six Sigma? Yes No What is Six Sigma (Six σ)?: What is Six Sigma (Six σ)? Six Sigma (6σ) Management Philosophy Continual Improvement Integrates quality & daily work Processes / measures viewed from “customer” point of view Six Sigma (6σ) Process Capability A statistical measure of processes Measures ability to meet customer “CTQs” (CTQ: Critical-to-Quality) Six Sigma (6σ) Measurement Measurement to six standard deviations Standard Deviation Diagram : Standard Deviation Diagram So Six Sigma is a defect rate of 3.4 per million; or an accuracy rate of greater than 99.99% Isn’t 99.9% defect-free good enough?: Isn’t 99.9% defect-free good enough? 1 hour of unsafe drinking water every month 2 long or short landings at every American airport each day 400 letters per hour which never arrive at their destination 500 incorrect surgical operations each week 4,000 incorrect drug prescriptions per year Half of all concrete tests fail at a 500 ton test rate. DMAIC: DMAIC Basic methodology to improve existing processes Define out of tolerance range. Measure key internal processes critical to quality. Analyze why defects occur. Improve the process to stay within tolerance. Control the process to stay within goals. DMADV: DMADV Basic methodology of introducing new processes. Define the process and where it would fail to meet customer needs! Measure and determine if process meets customer needs. Analyze the options to meet customer needs. Design in changes to the process to meet customers needs. Verify the changes have met customer needs. What is a Six σ Black Belt?: What is a Six σ Black Belt? Master black belt--Masters of technical and organizational proficiency Train, coach & assist black belts Black belt--Technical leaders actively involved in organizational change and development process Support green belts Green belt --team leaders capable of forming and facilitating six sigma teams and managing six sigma projects from concept to completion. Six Sigma Organizational Architecture : Six Sigma Organizational Architecture CEO Quality Leader/ Manager (QL/QM) Master Black Belt (MBB) Process Owner (PO) Black Belt (BB) Green Belt (GB) Six Sigma Program: Six Sigma Program In 1988, Motorola Corp. became one of the first companies to receive the Malcolm Baldrige National Quality Award One of Motorola's most significant contributions was to change the discussion of quality from one where quality levels were measured in percentages (parts per hundred) to a discussion of parts per million or even parts per billion. City of Fort Wayne: City of Fort Wayne Water main replacement construction bid costs reduced from an average of $61.00 per foot to $50.00 per foot – saving over $315,000 in 2003. Cost per change order for transportation engineering projects was reduced by 50%, resulting in over $170,000 savings to date. More change orders are now within the project tolerance level. The result is a savings of $217,000. Other benefits include higher quality transportation projects, increased customer satisfaction and lower costs to the city. Responses to pothole complaints reduced from an average of 21 hours to 3 hours. http://www.cityoffortwayne.org/6sigma.htm Question:: Question: What companies have you seen Six Sigma certified? Internet Links: Internet Links Here are a number of Internet links that might be helpful in finding additional information on this and related topics. http://www.isixsigma.com/ - i Six Sigma homepage - Six Sigma Quality Resources for Achieving Six Sigma Results http://www.ge.com/sixsigma/ - GE Six Sigma homepage Introduction to the Baldridge Quality Program: Introduction to the Baldridge Quality Program Poll: Are you familiar with the Baldrige Quality Program?: Poll: Are you familiar with the Baldrige Quality Program? Yes No What is the Baldrige Award?: What is the Baldrige Award? Malcolm Baldrige National Quality Award and the Baldrige National Quality Program established by Congress in 1987 To jumpstart growing US quality movement To recognize quality achievements of U.S. companies To publicize successful strategies Designed and managed by Commerce Department’s National Institute of Standards and Technology (NIST) Baldrige Quality Systems: Baldrige Quality Systems Criteria for Performance Excellence Leadership Strategic Planning Customer & Market Focus Information & Analysis Human Resource Focus Process Management Business Results The Baldrige System: The Baldrige System What is Performance Excellence?: What is Performance Excellence? • Delivery of ever- improving value to customers, contributing to market place success • Improvement of overall organizational effectiveness and capabilities • Organizational and personal learning How Do Organizations Achieve Performance Excellence?: How Do Organizations Achieve Performance Excellence? • Effective organizations use a common methodology to move towards Organizational Excellence: – Define the organizational goals and framework for achieving them – Assess the organization’s performance against the goals and framework – Continually adjust where improvement opportunities are uncovered Baldrige Core Values: Baldrige Core Values • Visionary Leadership • Customer-Driven Excellence • Organizational and Personal Learning • Valuing Employees and Partners • Agility • Focus on the Future Managing for Innovation • Management by Fact • Social Responsibility • Focus on Results and Creating Value •Systems Perspective Baldrige Award Process: Baldrige Award Process Companies submit details of company processes, business results, achievements, and improvements Applicants receive 300 to 1,000 hours of review & detailed feedback on strengths and opportunities for improvement The best, most cost-effective, & comprehensive business health audit an organization can get Baldrige Award Examiners: Baldrige Award Examiners The Baldrige National Quality Program annually seeks a board of experts capable of evaluating organizations eligible for the Malcolm Baldrige National Quality Award. The Award Program includes five eligibility categories: manufacturing, service, small business, health care, and education. Category coverage and balance are important factors in selecting the Board of Examiners' members. The goal is to ensure broad representation from many industries, companies, and organizations including those from for-profit, not-for-profit, and public sectors. Question:: Question: What companies have you seen Six Sigma certified? Question:: Question: What companies have you known that have received the Baldrige Award? Baldridge Internet Links: Baldridge Internet Links Here are a number of Internet links that might be helpful in finding additional information on this and related topics. http://www.baldrige.gov/index.html - Malcolm Baldrige National Quality Program homepage http://www.nist.gov/ - National Institute of Standards and Technology homepage What Makes the Difference?: What Makes the Difference? Six Sigma ISO 9001:2000 Registration Baldrige Criteria for Performance Excellence What Makes the Difference?: What Makes the Difference? Six Sigma • concentrates on measuring product quality and improving process engineering. • drives process improvement and cost savings. ISO 9001:2000 Registration • is a product/service conformity model for guaranteeing equity in the marketplace. • concentrates on fixing quality system defects and product/service nonconformities. Baldrige Criteria for Performance Excellence • focus on performance excellence for the entire organization in an overall management framework. • identify and track all-important organizational results: customer, product/service, financial, human resource, and organizational effectiveness. Internet Links: Internet Links Here are a number of Internet links that might be helpful in finding additional information on this and related topics. http://www.iso.org/iso/en/ISOOnline.frontpage - International Organization for Standardization homepage http://www.ge.com/sixsigma/ - GE Six Sigma homepage http://www.isixsigma.com/ - i Six Sigma homepage - Six Sigma Quality Resources for Achieving Six Sigma Results http://www.baldrige.gov/index.html - Malcolm Baldrige National Quality Program homepage http://quality.transportation.org/?siteid=38 - AASHTO Standing Committee on Quality homepage http://quality.transportation.org/?siteid=38: http://quality.transportation.org/?siteid=38 AASHTO Standing Committee on Quality homepage Internet Links: Internet Links Here are a number of Internet links that might be helpful in finding additional information on this and related topics. http://www.nphq.org/index.cfm - National Partnership for Highway Quality (NPHQ) homepage http://www.epa.gov/compliance/nepa/ - National Environmental Policy Act (NEPA) homepage http://nepa.fhwa.dot.gov/ReNepa/ReNepa.nsf/home - FHWA’s homepage supporting NEPA http://www.nist.gov/ - National Institute of Standards and Technology homepage http://www.asq.org/ - American Society for Quality homepage http://www.iqfnet.org/IQF/ - International Quality Federation homepage Questions?: Questions? 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