BUSINESS MANAGEMENT VS QUALITY MANAGEMENT

Vitorio Stana, P.Eng November 22, 2011

Disclaimer
The presenter reserves all the rights for this document. The document can be shared for personal use or review only within the ASQ Section 0408 community to increase the level of awareness about latest business integrated quality management system requirements in aviation industry and all other industries or services in general. The document use or review for other reasons or by other parties than specified herein, will require the presenter pre-approval before such action.

PRESENTATION CONTENT

Business Universe Process Approach Business Management System Business Performance Auditing Highlights Performance vs Conformance

Conclusions

TODAYs BUSINESS UNIVERSE

BUSINESS UNIVERSE
STAKEHOLDERS

CUSTOMER

ORGANIZATION

CUSTOMER

BUSINESS UNIVERSE
COMPLIANCE STANDARDS
ISO 9001:2008 QMS standard AS9100 Rev C QMS standard ISO 9000:2005 - QMS Fundamentals & Vocabulary

REGULATORY (R), STATUTORY (S) REQUIREMENTS GUIDELINE STANDARDS, BEST PRACTICES

ISO 31000 Risk Management-Principles, Guidelines ISO 10005 Guidance for Quality Plans ISO 10007 Configuration Management ISO 10015 Guidelines for Training ISO 13053-1/-2 - Six Sigma performance Improvement methodology ARP 9134 Supply Chain Risk Management Guidelines ARP 9009 Aerospace contract clauses (guidelines) ARP 9013/1/2/3/4 - Statistical Product Acceptance Requirements AS9131 QMS Nonconformance Documentation SCMH - Supply Chain Management Handbook

ORGANIZATION

PROCESS APPROACH BUSINESS MANAGEMENT SYSTEM

QUALITY MANAGEMENT SYSTEM (QMS) PROCESS BASED MODEL (ref. AS9100C)

Customer
Resource Management AS9100C S6.0 Management Responsibilities AS9100C S 5.0

Customer

QMS Measurement Continual Analysis, Improv. Improvement AS9100 S 8.0

Product Realization AS9100C S 7.0

Satisfaction

Requirements

Product

INPUT
LEGEND: Value Added Activities Information flow

OUTPUT

CUSTOMER REQUIREMENTS and ORGANIZATION POLICIES are considered (INPUTS) when ESTABLISHING NECESSARY PROCESSES and OBJECTIVES
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PROCESS DEFINITIONS
Process Set of interrelated and interactive activities which transforms inputs into outputs. The outputs serve as inputs for other processes until a known END RESULTS or GOAL is reached. Processes create VALUE ADDED. Processes are planned and carried out under controlled conditions. Their execution requires resources. Procedures Definition: it may not be written.
Established, Documented, Implemented, Maintained.

Process & Procedure terms are not synonymous

PROCESS MAPPING

PROCESS REQUIREMENTS

Note: The turtle diagram above may not necessarily contain all the sections of the AS9100C standard. It has been developed for demonstration of the tool against one of the product realization processes.

PROCESS TYPES
Key / Core Processes: Input comes from Outside the Organization Also called Operational Examples: Product realization processes Supporting Processes: Input comes from Inside the Organization Contributes to Key Process performance Also called Management, Infrastructural Examples: HR, Internal audits, Corrective Actions,
Preventive Actions, Risk Management, Finance

BUSINESS PERFORMANCE

BUSINESS OBJECTIVES
Effectiveness - Customer Satisfaction, Planned results achieved:
On Quality On Time Enhance Customer satisfaction

Efficiency - Organization Satisfaction

On Cost On Budget

Business Management System Suitable, Effective, Adequate

RISK MANAGEMENT
Risk - An undesirable situation or circumstance that has both a likelihood of occurring and a potentially negative consequence.

PROCESS CONTINUAL IMPROVEMENT

DEVELOP & EXECUTE Process EVALUATE Re-define Process MONITOR Effectiveness, Efficiency Control Charts, Scoreboard IMPROVE
Analyze Risks Detect, Eliminate Non-Value Added Activities Continually execute improvement projects
(Kaizen, Lean, 6 Sigma initiatives)

AUDITING HIGHLIGHTS, PERFORMANCE VS CONFORMANCE

Barrie Laycock Aerospace Lead Auditor

BUSINESS PERFORMANCE

What do we mean by Added value?

Value = measure of importance or usefulness usefulness (Dictionary definition) An added value quality management system is one that is useful to the organization An added value audit is one that is useful in helping the organization to achieve its objectives and to improve

VALUE ADDING AUDITING

What do we mean by Value-added auditing?
Aim to add value, by conducting audits that the organization will find useful Encourage results-focused systems, with minimum bureaucracy Help to identify strong and weak points and focus on ways to improve Will give CONFIDENCE that the MS is working.. allowing the organization to achieve stated objectives

Some Features of a Value-Added Audit

Top management is the primary customer of the audit Understand the business processes and the organizations objectives Look beyond compliance to standard requirements Aims to be useful in helping the organization to meet its objectives

A Question of Focus
Bureaucratic approach
What procedures do we need to write to meet the requirements of standard?

Value-added approach
How can we use the Management System to improve our business?

A Question of Focus
Bureaucratic approach
I have to do this because its a requirement of of the standard

Value-added approach
I want do this because it makes good sense to me, and it will help me to improve my business

Value-Added is NOT

..

making the audit more difficult By adding on additional requirements making the audit too easy So nobody believes in the results

Value-Added is NOT

..

Telling them what others do This breaches confidentiality Consulting This is not allowed

Value-added 3rd party audit should be useful to

the certified organization by providing information to top management regarding the organizations ability to meet strategic objectives by identifying problems which, if resolved, will enhance the organizations performance. by identifying improvement opportunities and possible areas of risk the organizations customers/stakeholders by enhancing the organizations ability to provide conforming product the certification body by improving the credibility of the third party certification process.

Audit Technique
Focus more on the process, and less on procedures the driving force should be the process performance not just availability of procedures Focus more on results, and less on records. some records may be necessary in order for the organization to provide objective evidence that its processes are effective (generating the planned results) value-add auditor should be aware of and allow for other forms of evidence.

CONCLUSIONS

CONCLUSIONS
Quality Management System (QMS) Renewed focus: PROCESS PERFORMANCE Quality Management is Business Management and should follow the same structured approach Quality Management System key features:
Process Approach and Performance Value added to Business Fully integrated within Business Management System

Auditing focus:
Beyond Conformance, primarily on Performance Value added, helping the organization to Perform, achieve business objectives, continually improve

MANY THANKS!

QUESTIONS?