ISO 9001 Revision 2015 Is Coming

The ISO 9001 Revision 2015 timetable for development is as follows:

July 2015 – Final Draft International Standard ballot opens
August 2015 –  Final Draft International Standard ballot closes
9 September 2015 – ISO 9001:2015 International Standard is published
 According to the draft design specification, the revised ISO 9001:2015 standard should:
  • Provide a stable core set of requirements for the next 10 years or moreISO
  • Remain generic, and relevant to all sizes and types of organization operating in any sector
  • Maintain the current focus on effective process management to produce desired outcomes
  • Take account of changes in quality management systems practices and technology since the last major revision in 2000
  • Reflect changes in the increasingly complex, demanding and dynamic environments in which organizations operate
  • Enhance compatibility and alignment with other ISO management system standards
  • Facilitate effective organizational implementation and effective conformity assessment by first, second and third parties
  • Use simplified language and writing styles to aid understanding and consistent interpretations of its requirements

Seven Significant Changes in ISO 9001 Revision 2015 Committee Draft

  1. The term “product” has been replaced by “goods and services”.
  2. Two new clauses related to the context of the organization:
    4.1 Understanding the organization and its context
    4.2 Understanding the needs and expectations of interested parties.
  3. The requirement to use the “process approach” has been more explicit by adding a new clause.
    4.4.2 Process approach
  4. The standard does not include a specific clause for “Preventive Actions”.
  5. The terms “document” and “records” have been replaced with the term “documented information”.
  6. of external provision of goods and services address all forms of external provisions.
  7. The term “continual improvement” has been replaced with “improvement”.

 

Leader Standard Work?

Leader standard work? Is it valuable?

Leader standard work as being fundamental to any company that is committed to continuous improvement and culture change. Leader standard work is part of what is included in third principle of manufacturing excellence, i.e., it is the disciplined use of an authorized formal system.

Typically, manufacturing companies are meticulous about creating standard work for machine operators, e.g., job instructions. The job instructions for a particular process are very detailed and represent the required behavior to produce products that meet the customer specification. I hope we always collect the operators’ input before an engineer or technician retires to the office to formalize the instructions.

 But once the job instructions have been committed to the formal system, then we don’t vote anymore about how to do this work. We expect the instructions to always be followed until and unless someone comes up with a better idea to be vetted and tested before changing the standard work and retraining the affected people.

On the other hand, the closest thing many companies have to leader standard work is the position description. Even a very well-thought-out and written position description is far too general to be used on the day-to-day responsibilities.

Leader standard work requires the commitment to detail the important responsibilities of a leader, some of which do not happen from the comfort of the office.

Leader standard work, in the case of the first line supervisor, involves having a daily plan of what the leader’s key duties are. Those might specify, for example, at least three gemba walks and dialog with each person in the area each day.

As we go up the ladder, the plan could become weekly, monthly, quarterly, etc., depending on the level in the organization. For example, a plant manager might commit to a daily gemba walk to touch base with the value stream managers, supervisors and a few hourly associates in each area just to understand how the plant is running each day, what the issues are and, yes, to be visible to everyone.

The plant manager also is behaving in a way that serves to coach people along the way. If the manager sees a potentially unsafe condition, does she walk on by or stop and engage the issue? The leader’s response will speak volumes to all those who are watching to see what happens next.

It’s a teachable moment if handled properly and helps to reinforce the new culture that would expect operators, material handlers, etc., to step up themselves rather than wait on a member of management to respond. Hourly folks typically see these things first, and we want to help them know what to do and feel confident enough to speak up and help keep their teammates safe as well as themselves.

The same kind of coaching opportunity could occur on a quality issue, schedule issue, maintenance, whatever. This important work cannot be done from the office.

The plant manager might also plan and execute a monthly “state of the business” meeting for everyone once a month. The VP of manufacturing/operations might do it quarterly along with a gemba walk. The CEO might do a video for companywide viewing on full-year results and expectations for the new year.

These opportunities to be visible and interactive provide the means to ensure that leadership’s expectations are clear for the results and behaviors that we seek.

source: http://www.industryweek.com

Tips for Improvement of Quality in your company

No doubt, we live in an imperfect world: People make mistakes and machines break. The goal is to minimize this so that the client is enchanted and reorders. You can do that through a relentless focus on quality. Improving quality will save your firm money because you won’t need to do things to cover up old mistakes. Improving quality will raise your employees’ engagement because people like being on a high performance team.

How do you make sure quality is exceptional at your firm? Here are  tips to improve quality fast.

Measure and Measure Some More

Two key performance indicators (KPIs) you should deploy today are quality escapes and quality captured. Determine which bucket quality mistakes fall into. The first bucket is comprised of mistakes that were internally “captured” by your team so the client was never aware of them. Captured quality errors aren’t as bad because the client never knew — maybe they suffered a delayed delivery, but that’s it. Your client is not injured by the stumble.

The second bucket consists of quality issues that “escaped” your operation and were discovered by the client. These escaped quality defects are horrific. Your client is exposed to your firm’s failure, which undermines the long term vendor relationship. But measuring these mistakes transparently will bring your team’s attention to these issues and you’ll see improvement from the spotlight effect: The team will understand they are important.

Focus on Process,  Not People

Every employee comes to work to do a good job. In most cases, the defect is the process, not the person you trust. Remember that, and fix it by adding process steps or new checks to the system. Don’t make it a game of “who screwed this up?” That will deflate the team. Everyone will cower in fear and point fingers without ever getting to the root cause.

Meet Weekly

Initially the meetings will be long and tedious. You need to discuss with all the players each quality issue that occurred, and get to the root cause. Over time–less time than you think–the meetings will get shorter, as processes are strengthened and systems get more robust. Confidence will build as people see the systems are catching errors and eliminating heartburn.

Create a Quality Chart

Sort the biggest quality issues by category and focus in on the big issues. Work them till they get to be small issues. Don’t focus as much time on the unusual quality issues; spend your time in the places with the most frequent problems.

Make It Public

Place your quality results in your lunchroom. Everyone should see this is a company emphasis and you want to improve in a transparent way. The daily, visible reminder will demonstrate your commitment to quality to the people who impact it every day: your team.

source: http://www.inc.com

Manufacturing Trends in 2015

Manufacturing Trends that will Shape the Market in 2015

Greater automation and investment driven by accelerated production cycles, advanced technology and changing labor demographics will continue to revolutionize the industry

manufacturing-trends

As 2015 approaches it’s time to look ahead at emerging trends that will impact 21stcentury manufacturing around the globe.

The entire supply chain ecosystem — encompassing manufacturers, distributors and retailers — is undergoing a business transformation. This is in response to changing dynamics involving shifting consumer expectations, time to market and intense global competition that is being dictated by the rising Internet and mobile economies.

Advances in technology — coupled with changing labor demographics — are proving to be the lynchpin shaping this new business model. To remain economically viable, retailers must sell products faster and at competitive prices which sends a ripple effect down the supply chain. For example, manufacturers must accelerate production cycles and distributors must shorten delivery times.

Stakeholders throughout the supply chain have no choice but to adjust their business models to meet consumer demand and increase profits. However, technology is helping businesses stay relevant in these changing times. Let’s take a look at five manufacturing trends that will impact the industry in 2015:

  1. ‘SMAC Stack’ adoption to gain speed.A manufacturing comeback is being driven by SMAC — social, mobile, analytics and cloud. The SMAC Stack is becoming an essential technology tool kit for enterprises and represents the next wave for driving higher customer engagement and growth opportunities. The need to innovate is forcing cultural change within a historically conservative “if it’s not broke don’t fix it” industry, and SMAC is helping early adopters in the manufacturing market increase efficiencies and change.
  2. Social media to further impact business model innovation. According to an IDC white paper, “The Future of Manufacturing,” sponsored by Infor, social media is forcing manufacturers to become more customer-centric. The traditional business-to-business model is becoming outdated because today’s connected consumers are better informed and expect products on-demand. Consumers compare, select or buy multiple products with a tap of their smartphone or tablet, and social media has become their preferred communication platform. This consumer purchasing style is not only having an impact on brand-oriented value chains, but is transforming traditional B2B to B2B2C models.
  3. Internet of Things (IoT) will increase automation and job opportunities.A renewed focus on science and engineering education is cultivating a manufacturing workforce that can manage highly technical systems and allow for greater automation. This frees up employees to put their talents to work on R&D which is helping to redefine what it means to have a career in manufacturing. In addition, IoT allows for condition-based maintenance which is driving efficiencies as businesses save on labor and service costs.
  4. Greater capital investment.Though the slow economic recovery continues to hinder expansion and growth opportunities, recent government and industry reports show an uptick in capital investment funding. As manufacturers become focused on capturing value through innovation, original design and speed to market, they are increasing spend for upgrading plant, equipment and technologies.
  5. The emergence of “Next-Shoring.”The rise of a more technical labor force to manage supply chain operations — combined with rising wages in Asia, higher shipping costs and the need to accelerate time to market to meet retailer and consumer demands — has led to more companies shifting their manufacturing strategies from outsourcing overseas to developing products closer to where they will be sold. “Next-shoring,” as this tactic has been dubbed, allows manufacturers to increase the speed at which product is replenished on store shelves. The faster inventory can be moved to the consumer, the sooner the costs to warehouse, ship and dock goods can be freed up.

These are a few of the game-changing trends expected to impact manufacturing in 2015 and it will be exciting to watch which take off as the industry continues to evolve.

source: http://www.industryweek.com

Main Steps to Improve Manufacturing Quality

There is no better cost to eliminate than the cost of poor quality.

stairs

Good managers seek to contain costs in the manufacturing environment. There is no better cost to eliminate than the cost of poor quality. Scrap material and lost labor hours add no value to the operation.

In order to best eliminate these wastes, a strategic approach to quality improvement is essential. By following these five steps, quality can be improved in a meaningful, sustainable way.

Use a team mindset

Quality won’t be sustainably improved by individuals. To really make lasting and meaningful change in manufacturing processes, it will take a team-based approach. By involving multiple disciplines in the search for improved quality, a variety of perspectives is obtained. Also of importance is knowledge of process history. Why is the process the way it is today? There must be a reason or cause, and that reason should be considered so as not to repeat a problem of days gone by. By considering history and group perspective, solid improvements can be obtained.

Define quality from the customer perspective

Too often, staff within a manufacturing environment want to make a product “better” but don’t really know what better means. With additional cost, we almost always can make a product better. But is additional cost desirable by the customer even if it means better product life? Someone in the organization should serve as the customer advocate. Typically this voice can come from the sales or marketing departments. Use the customers’ perspective to define what the best-in-class product would be and meet those requirements while minimizing cost.

Develop understanding of the Cost of Quality

The cost to fix a defect in the field once it reaches a customer is dramatically higher than the cost to fix the source of the problem before it is created. It is essential that the manufacturing staff be trained to understand the cost multipliers involved with warranty repair or replacement and cost of damaged reputation. Once the staff take this perspective, a desire to find root cause for problem solving is inherently developed.

Solve problems completely

All too often, manufacturing quality improvements fix the symptoms of failure rather than the root cause. This can be done by adding quality inspection steps or rework stations that make it more efficient to fix defects. Instead, a true understanding of root cause should be developed within the teams. When teams develop the ability (through Ishikawa, fault tree, or five-why analysis) to ascertain root cause of defects in the manufacturing process along with a “killer test” that verifies the ability to turn-on and turn-off the problem in the manufacturing process, true solutions to problems will be created that will not allow the return of the issue.

Employ strong process discipline

Throughout the quality improvement process, it is essential that strong process discipline is employed. Depending on the product that is being manufactured, deviation without proper team cooperation and anticipation of the change could have dire quality repercussions. While the organization should avoid cumbersome bureaucracy that inhibits innovation, it is essential that some structure be employed to maintain consistency and an understanding of the way the product is produced during that time period so that root cause can also be identified later if new problems arise as a consequence of the change.

By following these above steps, good management teams can develop great quality programs within their organizations.

source: http://www.industryweek.com

How to Select Quality Vendor

How to Select Quality Vendor

contact:  kris@themanagementsystems.comchoose-person

The vendor selection process can be a very complicated and emotional undertaking if you don’t know how to approach it from the very start. Here are five steps to help you select the right vendor for your business. This guide will show you how to analyze your business requirements, search for prospective vendors, lead the team in selecting the winning vendor and provide you with insight on contract negotiations and avoiding negotiation mistakes.

1. Analyze the Business Requirements

Before you begin to gather data or perform interviews, assemble a team of people who have a vested interest in this particular vendor selection process. The first task that the vendor selection team needs accomplish is to define, in writing, the product, material or service that you are searching for a vendor. Next define the technical and business requirements. Also, define the vendor requirements. Finally, publish your document to the areas relevant to this vendor selection process and seek their input. Have the team analyze the comments and create a final document. In summary:

-Assemble an Evaluation Team

-Define the Product, Material or Service

-Define the Technical and Business Requirements

-Define the Vendor Requirements

-Publish a Requirements Document for Approval

2. Vendor Search

Now that you have agreement on the business and vendor requirements, the team now must start to search for possible vendors that will be able to deliver the material, product or service. The larger the scope of the vendor selection process the more vendors you should put on the table. Of course, not all vendors will meet your minimum requirements and the team will have to decide which vendors you will seek more information from. Next write a Request for Information (RFI) and send it to the selected vendors. Finally, evaluate their responses and select a small number of vendors that will make the “Short List” and move on to the next round. In summary:

-Compile a List of Possible Vendors

-Select Vendors to Request More Information From

-Write a Request for Information (RFI)

-Evaluate Responses and Create a “Short List” of Vendors

3. Request for Proposal (RFP) and Request for Quotation (RFQ)

The business requirements are defined and you have a short list of vendors that you want to evaluate. It is now time to write a Request for Proposal or Request for Quotation. Which ever format you decide, your RFP or RFQ should contain the following sections:

-Submission Details

-Introduction and Executive Summary

-Business Overview & Background

-Detailed Specifications

-Assumptions & Constraints

-Terms and Conditions

-Selection Criteria

4. Proposal Evaluation and Vendor Selection

The main objective of this phase is to minimize human emotion and political positioning in order to arrive at a decision that is in the best interest of the company. Be thorough in your investigation, seek input from all stakeholders and use the following methodology to lead the team to a unified vendor selection decision:

Preliminary Review of All Vendor Proposals

Record Business Requirements and Vendor Requirements

Assign Importance Value for Each Requirement

Assign a Performance Value for Each Requirement

Calculate a Total Performance Score

Select a the Winning Vendor

5. Contract Negotiation Strategies

The final stage in the vendor selection process is developing a contract negotiation strategy. Remember, you want to “partner” with your vendor and not “take them to the cleaners.” Review your objectives for your contract negotiation and plan for the negotiations be covering the following items:

-List Rank Your Priorities Along With Alternatives

-Know the Difference Between What You Need and What You Want

-Know Your Bottom Line So You Know When to Walk Away

-Define Any Time Constraints and Benchmarks

-Assess Potential Liabilities and Risks

-Confidentiality, non-compete, dispute resolution, changes in requirements

-Do the Same for Your Vendor (i.e. Walk a Mile in Their Shoes)

6. Contract Negotiation Mistakes

The smallest mistake can kill an otherwise productive contract negotiation process. Avoid these ten contract negotiation mistakes and avoid jeopardizing an otherwise productive contract negotiation process.

accounting1

http://operationstech.about.com/od/vendorselection/a/VendorSelectionHub.htm

Choosing Vendors

hand shakecontact:  kris@themanagementsystems.com

Your vendors have as much interest in your company’s success as you do.

When you make a lot of sales, they make a lot of sales; when you get paid, they get paid. Having reliable and trustworthy vendors can help your business succeed, just as dealing with unreliable or shady firms can cause major setbacks.

Start by asking around; other business owners in your area can be a great source of information. Once you’ve got a list of names, call your local Better Business Bureau to find out whether any complaints have been filed against any of the vendors on your list. You can visit vendor Web sites and even tour their physical locations. You can ask for customer testimonials and for product samples as well. The key is to get as much information as possible before you make a large monetary commitment to a vendor you don’t know.

As you begin to choose vendors, particularly those who will stock your inventory, try to think of them as business partners. You want to choose the ones with whom your company can develop a long-term, mutually profitable relationship, and that relationship starts with your first request for a price quote. Don’t be afraid to ask vendors for quotes; they’re used to it and they probably expect it. After all, this is a major purchase, and it’s never wise to make a major purchase without shopping around — especially when you’re going to a vendor you’ve never dealt with before.

When you’re dealing with a new business and new vendors, make sure to get price quotes from at least two sources for any purchase over $150. If your order will be a lot more than that, consider getting at least three different quotes; more is even better.
If you’re having a hard time finding vendors, and an even harder time finding information about them, you can run your own test by placing a very small order, under $100 in total value. If that process goes well, take it up a notch and place a slightly larger order the next time. Once you feel comfortable with the vendor, you can place your full-blown orders without worry.

Getting Quotes

When you want to make a big purchase for your business, you need to know the total cost upfront. To get that information, you need to ask the people who sell whatever it is you want to buy. In order for that information to be fixed (as opposed to changeable), it’s best to get it in writing. When your company is buying a product, that information will come in the form of a quote; when it’s services you’re after, the quote is usually referred to as an estimate.

The best way to get a quote is to talk with a salesperson; quote requests that come by mail are often ignored. Phone contact is fine, especially after you’ve begun to build a relationship with that vendor or salesman. For your first time out, though, a face-to-face meeting could prove more fruitful, especially if you’re spending a significant sum. Even though salesmen themselves are seldom involved in setting company pricing policy, they often have some leeway when it comes to closing a deal. When you establish a personal connection with a salesman, he’ll work harder with you and for you; after all, making a sale to you is his bread and butter. Flexible areas often include lower unit pricing when you buy in bulk, and better credit terms.

Hitting it off with the salesman is a great start toward developing a good relationship with a vendor. However, don’t stop after getting a single quote just because you like the first salesman you meet with. Another vendor may offer better pricing, better terms, better merchandise, and maybe a salesman that you’ll like even better.

Avoid These Vendors

There are some vendors that you should avoid. If you run across a vendor with one (or more) of the following characteristics, run in another direction:

Accepts cash only

Asks for checks made out to cash

Won’t send a brochure or catalog

Won’t give you a price quote or estimate in writing

Dirty, disorganized stockroom

No warehouse or storage facility

If one (or more) of these factors is the norm in your industry, and the vendor in question has gotten high marks from a reliable source, it’s probably safe to keep him on your list. However, if it’s the vendor telling you this is normal practice, and you can’t verify that with anyone else, look for a different vendor.

http://www.netplaces.com/accounting/controlling-purchase-costs/choose-your-vendors-wisely.htm

%d bloggers like this: