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Are you ready to BBQ?

Behavior Based Quality and how to get there…


Safety Moment
Safety, you just don’t forget it when you leave work .. Or do You?
• Do you go more than 5 miles over the speed limit in a residential area?
• Do you hold and talk or text on your cell phone while driving?
• Do you “sneak” through the last seconds of an amber stop light as it turns
red?
• Do you forget to wear PPE when doing yard work?

• If your answer was NO to all of these, then you are likely a


practitioner of Behavior Based Safety.

Safety (like Quality) is how you behave and what you do …. When no one is looking!
What is Quality?
• Simply put, Quality is the number of successes versus the number of
non-successes for a planned and expected outcome.

Do you remember what the definition of Insanity is?


Why do we want to improve Quality?
• Lessen the impact and reduce the number of non-successes
Anxiety over
lack of success
can be life
threatening!

Have things really changed?


Quality Improvement over time
Anxiety over
lack of success
can be life
threatening!
Many Mistakes/Errors Anxiety over
lack of success
remains high!
Mistakes

Fewer Mistakes/Errors

Caveman Renaissance Industrial Age Modern Times


What next for our modern times?
But still the
Fewer Mistakes/Errors Anxiety over
defects is high!

• 100%
Mistakes • Lot Sample
• Audit
• Quality Circles
• SPC
• Systems
• Zero Defects • Make it Faster
& Cheaper
• Remove
Waste • Set
performance Even Fewer Mistakes/Errors
standards

Inspection Age of the Gurus Lean Six Sigma/etc. The Future?


As Time Passes
Taking Quality into the future requires more!
• More What?
• Thought
• Discipline
• Commitment
• Engagement
• Support
• Mentoring
• Facilitation
• Coaching
• Doing!
But we are operating at 99.9% “Acceptance”
Isn’t that “Good Enough”?

What is the dollar impact of not attaining 100%?


But we are operating at 99.9% “Acceptance”
Isn’t that “Good Enough”?
Some facts about how good 99.9% is:
• 16,000 pieces of mail lost by U. S. Postal Service every hour

• 12 babies in US given to the wrong parents each day

• 1,314 phone calls misplaced by US telecommunication services every minute.

• 22,000 checks deducted in US from wrong bank accounts every hour.

• 500 incorrect surgical procedures in US every week.

• 20,000 wrong prescriptions filled every year

When operating at 99.0% “good” the results are 10 times worse!


How does this relate to Quality Culture?

More importantly, how do I know if I work for a


company with a culture of Quality?
You do not have a culture of Quality IF:

• You think that your Quality level is “good enough”

• You think Quality is something only for the shop floor

• Your management suggests that revenue is more important than Quality

• You think the poor reliability has no impact on future business

• Leaning out a process is about reducing the number of inspection points

• The Quality department is one of the first departments impacted by a RIF.


How good is good enough?
Some say that Six Sigma is the holy grail of Quality performance that
companies should strive for
• That’s 3.4 failures per 1 million opportunities (99.999% good)

Example:
Americans consume over 80 million aspirins a year
• At a 6 Sigma level of Quality performance that would “only” be
272 Bad aspirins for Americans each year
• If this were a heart medication, would 6 Sigma be good enough?

Pharmaceutical companies are operating at greater than 12 Sigma today


Is our approach to Quality working?
• Control
• Inspection
• Sample inspection
Adds to Cost of Quality
• Statistical Process Control
• Assurance
• Audits Hopes to Avoid Cost of Quality
• Processes and procedures
• Lean Six Sigma
• Process improvement
• Eliminate waste May not reduce Cost of Quality
• Reduce cost

Do these improve Quality or just make us feel we did something about it?
How do we bring positive impact to Quality?
• Control
• Inspection Keep in mind that these are all just
• Sample inspection tools!
• Statistical Process Control
• Assurance
• Audits What is the cardinal rule for using
• Processes and procedures tools?
• Lean Six Sigma
• Process improvement
Use the right tool for the job!
• Eliminate waste
• Reduce cost
Control, Assurance, Lean Six Sigma are all good tools!
What is the problem with tools?
• They are often treated as separate entities with no “interaction”
• Tools don’t work unless there is intent to use them
• Tools don’t self perpetuate or continue on their own
• Tools by themselves don’t create sustainable improvement

• So what is the solution?


• Tools need a unifying force to align their functions to create sustainable value

• What is the unifying force?


• People and their Behaviors are the unifying force that can bring sustainable
value driven results to Quality
What behaviors are we talking about?
• Quality behaviors are built around
Compliance, Prevention and Quality
Improvement.
• This power of three provides a stable
platform for Quality behaviors
• Compliance
• Prevention
• Improvement

The three tenants of Quality behaviors are titled CPI


Quality

Let’s break down CPI to its three legs

Compliance
• Conformance to requirements…… all requirements!

Examples:
• Engineering
• All customer requirements are achieved in the design specification
• Accounting
• General Accounting procedures are followed
• Manufacturing
• Processes are documented and followed

Every department has requirements to comply with


Quality

Let’s break down CPI to its three legs


Prevention
• Relentlessly seek to understand the cause of errors and mistakes (to requirements)
and prevent them from recurring
Examples
• Engineering
• Errors found in design reviews are assessed as to root cause and the causes are eliminated
• Accounting
• Errors made in Journal entries are assessed as to root cause and the causes are eliminated
• Manufacturing
• Errors made in manufacturing are assessed as to root cause and the causes are eliminated

Root Cause Analysis and Corrective Action is the basis for achieving Zero Defects
Quality

Let’s break down CPI to its three legs


Improvement
• AFTER Prevention is implemented, use the plethora of improvement tools
available to create change that eliminates waste
• This is where the real sustainable improvement happens
Examples
• Engineering
• Assess forms of waste in the design process and reduce or eliminate them
• Accounting
• Assess forms of waste in the monthly closing process and reduce or eliminate them
• Manufacturing
• Assess forms of waste in each manufacturing process and reduce or eliminate them

Improving is NOT making products with mistakes faster and cheaper!


None of this gets better without SMART metrics
Specific, Measurable, Agreed upon, Realistic, Time based

• CPI measurement opportunities exists in every department

• You should ask:


• How are you measuring Compliance

• What is your measure of Prevention

• Where is the focus of Improvement initiatives

Are people’s behavior and use of tools achieving sustainable results?


Management engagement is essential for change
• Is management participating in the review of SMART metrics?
• Has the value proposition for change been presented to management?
• Has management presented the value proposition for to change to the
employees?

• Most importantly:
• Does management recognize and support a culture of Quality as a business
imperative?
• If yes, then back to bullet 3

Top down promotion and support followed by bottom up actions


What does this all have to do with BBQ?
• You can’t have a sustainable BBQ unless you have:
• A functioning set of tools understood and capable of being used by all
employees
• Frequent assessment of metrics by key stake holders and management
• Assigned accountable owners of metrics who report back on results of
corrective actions/improvements and current status
• Support from top management who promote, guide and insist on the
continued use of CPI behaviors as a cultural imperative for Quality
How do I know if my BBQ is working?
• Every department has a set of CPI metrics
• Process owners accept accountability for CPI performance
• Metrics are used as positive reinforcement for change
• Anyone can stop a shipment for Quality cause with no recrimination
• Your customers recognize and support the efforts that you are putting into
cultural change for Quality
• Continued learning of improvement tools and methods is taking place
• Suppliers are asking for help with their Quality programs
• Executives take time to recognize CPI behaviors and team contribution
BBQ is like breathing, it just happens!
Change to a BBQ culture can be a challenge
• I’m a Quality professional adrift in a sea of naysayers, what do I do?

• When Quality isn’t being driven as a cultural imperative from the top,
you have your work cut out for you

• It’s not impossible, but it takes time, patience and courage.

• If you feel like you are alone in the wilderness, consider the following
as a possible path to success
Step 1-Start with your own department
• Adopt and learn the philosophy of CPI behaviors
• Train your staff in the elements of CPI
• Determine which tools will work best based on employee skill levels
• Use SMART metrics to define and prioritized areas to improve
• Establish “dollarized” CPI based metrics for each of your functional departments
• Set baseline measure of performance
• Set accountability for your department heads, leads and employees
• Measure and document change over time

Use SQDC as the prioritization mechanism for CPI metrics


Step 2-Evangelize your results of change
• Demonstrate improvement opportunity to other department heads
• Stress CPI as the philosophy and SQDC as the prioritization mechanism
• Train other department heads in CPI
• Give department heads the guidelines from Step 1
• As training is accepted, assist with metric development
• Identify low hanging fruit to change
• Provide training in tool use
• Track changes over time, evangelize improvement, win over new
devotees
• Report results to management
Promote SQDC as the prioritization mechanism for CPI metrics
Step 3-Gain Management Engagement
• Solicit management to expand CPI in select departments
• Pick low hanging fruit areas (engineering, finance, HR, Process stuff), Follow steps 1 and 2
• If not doing so, implement at least Quarterly Management Reviews
• Use forum to market and demonstrate results of CPI metrics
• Management should recognize results and hold process owners accountable
• Use reviews as positive reinforcement for the value proposition of change
• This is where you recognize Quality as a cultural imperative and a behavior
• Gain management support to incorporate CPI in all departments
• Use Management reviews to recognize success and understand cause of failures
• Hold teams accountable to achieve sustainable results through CPI behaviors

BBQ will bring sustainable positive results to your company’s bottom line
Several keys to success!
• Top management sets clear company performance objectives and
cascades those objectives down into the organization
• Every department is tasked to define and make a contribution to their part of
those objectives
• Results are measured by department, then “rolled up” to summarize the
company’s top level performance to objectives.
• Tie Quality performance to company financial performance for all
departments
• Measure the impact of progress in dollar contribution to the bottom line
• Every department has a contribution, whether it is direct cost reduction or
indirect contribution to reducing overhead and SG&A expenses
The measure of Quality must always be monetized*
* Phillip Crosby’s Fourth Absolute states that Quality is measured as Price of Non-Conformance not indexes
Several keys to success!
• Everyone holds everyone accountable to do their part
• Supportive in use, training and sharing of Quality tools
• Not relying on others to do the work for them
• Top management sets timely performance reviews and participates
by:
• acknowledging issues (positively),
• requiring follow-up to assure issues are addressed
• and recognizing successes

Everyone sees the benefit of Quality behaviors as a team effort


Conclusion
• When Quality behaviors are like breathing (you don’t think about it),
then the BBQ is working!

BBQ will bring sustainable positive results to your company’s bottom line
Thank You!

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