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Biggest Challenge for QS-9000 Companies in a Nutshell

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2001

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2001-2002 Training Schedule

Enterprise-wide Quality Systems: The Hitachi Cable Story

hat is the future of automotive sector-specific quality management system (QMS) requireiting the $2.5 billion dollar bottom ments? And what should your organization line impact of poor quality in 2000, do to plan for the transition you need to Ford Global Facilities, Materials and seriously consider making in 2002? In Services Purchasing has begun the roll out of previous articles, a significantly revamped approach to Q1 for we have service suppliers. Focused on customer indicated that satisfaction, performance and continual TS 16949:2002 improvement, the new Q1 criteria, while based will align with on the previous version, incorporate signifiISO 9001:2000. cant changes. Also, the International Omnex has been participating in the roll out Automotive presentations being given by Ford to the Task Force targeted suppliers in each of the affected (IATF) addicommodities. Omnex has provided Fordtions to TS 16949, with only a few minor approved training to over 5,000 companies edits, have been mapped directly to ISO around the world, in every major automotive market and auto industry region, and has been 9001:2000s structure. (Go to www.omnex.com/ identified by Ford as its preferred provider for news/news.html for more details.) Although changes could still be made, the issue training and assistance to the service supply remains whether and when automotive base in this effort. suppliers should consider making the switch from the third edition of QS-9000 to TS Targeted suppliers are being selected from commodity groups having the greatest impact 16949:2002. There are 5 steps your organization can take to use ISO 9001:2000 and on customer satisfaction and strategic assessTS 16949:1999 and be ready for the future. ment. These include Machinery & Equipment, Services, Industrial Materials, Construccontinued on page 2 tion & Building Services, and Transportation.

Ford Launches Re-vamped Q1 for Service

by Dave Watkins, PresidentOmnex

Five Steps to Transition from QS-9000 to TS 16949:2002

by Chad Kymal, CEOOmnex

continued on page 3

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Five Steps to Transition from QS-9000 to TS 16949:2002 (continued)

1. Create a Process Map and Understand Customer Requirements Before you do anything, study your organizationfollow the product development process from product initiation to shipping and interview personnel in the process. Document the product realization process in your process map. Identify all the support processes that affect the development and delivery of your product. Next, decide whether the The issue remains Quality Management System will whether and when support only automotive suppliers customers or whether it will should consider satisfy the making the switch... requirements of all the interested parties of your organization. This may result in incorporating many more processes to your process map. Lastly, check to see whether the process map includes every TS-16949:2002 process. (See Figure 1 Process Map below.) 2. Conduct Gap Analysis of the Existing System Now, examine the documentation structure behind your organizations QMS. Do you have the seven procedures required by TS-16949:2002? Typically, QS-9000 companies will already have these procedures. Next verify whether you have documents needed by the organization to ensure the effective planning, operation, and control of its processes and determine if both the operation and control of these processes are effective. The process map is a good place to start evaluating your documentation needs. Taking these steps should result in the clarification of your organizations documentation needs for satisfying customers and/or interested parties. Once you have taken the steps above, it is now time to conduct an audit or gap analysis to prepare for revision of your QS-9000-registered quality system to conform with TS 16949:2002s draft requirements. Implementing TS 16949 requires two methodologies: Business Operating System (BOS) process, and the Process Review Methodology (PRM). 3. Implement BOS The first step in implementing BOS involves identifying customer and interested party expectations. In working with our clients, our organization uses a process by which we list group and rate expectations using Post-It notes. Through these groupings into Customer Expectations Categories, we are able to better align the customers or interested parties expectations with processes and metrics. Another key step in this methodology is the use of alignment charts to link each expectation category to the key processes and process measurables that need to be measured and monitored. To effectively satisfy Subclause 5.4.1, PlanningQuality Objectives, of ISO 9001:2000, the organization should use benchmarking to determine what its short- and long-term objectives should be. With BOS, the organization will be on its way to achieving both enterprise improvement and breakthrough process improvement. 4. Implement PRM PRM is a method of documenting and controlling QMS processes. It takes the processes in the process map and your organizations documentation and applies Process Flows (PFs), Process Failure Mode and Effects Analyses (PFMEAs) and Control Plans to ensure the documentation your organization has is effective and that its QMS processes are under control. This document links the BOS process measurables and the PRM approach. 5. Implement TS 16949:2002 One of the greatest challengesand benefitsof implementing TS 16949:2002 is that it will require QS-9000-registered organizations to become customer-focused as well as process-focused. Becoming customer-focused requires an organization to implement a methodology like the BOS process, however, it also requires an organizational culture change. Most important, implementing methodologies to become customer-focused and processoriented do not require any standards to initiate the process, so you should start your organizations change to the new requirements now, because they make business sense in an increasingly competitive marketplace. An Alternative: The Minimalist Approach Make No Change: This is the approach some organizations may take. The inputs and outputs between two processes need to be carefully defined.. Organizations and auditors need to be careful not to fall into the

Figure 1: Process Map

continued on page 3

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Transition (continued)
trap of the minimalist approach. In effect, no improvement will be evident in such a system. More important, the organization will not make any movement forward in becoming customer- or processfocused, which could be detrimental in the long term.

Examiners and has a BSME from General Motors Institute and an MS degree in Industrial Operations Engineering and MBA from the University of Michigan.

Chad Kymal is CEO of Omnex, Inc., and a much sought-after international consultant and trainer. He was on the Malcolm Baldrige Board of

For the complete article, go to www.omnex.com/news/news.html

The Biggest Challenge for QS-9000 Organizations In a Nutshell

The Final Draft International Standard (FDIS) of the ISO/TS16949:2002 is finally available. Though the circulation is limited to a small circle, it is a sign that it will be released to the larger public. What is still missing is the Customer-Specific document (GM, Ford and DaimlerChrysler) accompanying the ISO/TS 16949:2002 standard. In a nutshell, the ISO/TS-16949:2002 is more influenced by the ISO 9001:2000 Standard than any new automotive-related change. For the most part, the ISO/TS 16949:1999 has now been faithfully mapped into the ISO 9001:2000 to create the ISO/TS 16949:2002. Elements influenced by ISO 9001:2000 include 4.1 General Requirements, 5.2 Customer Focus, 5.4.1 Quality Objectives, 5.5.3 Internal Communication, 5.6 Management Review, 6.1 Provision of Resources, 6.2 Human Resources, 6.2.2.3 Training on the Job, 6.2.2.4 Employee Motivation and Empowerment, 7.0 Product Realization, 8.2.1 Customer Satisfaction, 8.2.3 Monitoring and Measurement of Processes, and 8.4 Analysis of Data. (See the Omnex website for two articles on this topic which were published in The Informed Outlook.) The biggest challenge for QS-9000-registered companies is the customer focus and process focus represented by this standard. (See the Omnex website or next months Informed Outlook for more information and a table on the subject.)

Ford Q1 (continued)
Changes Among the more significant changes: 1. 2. 3. 4. 5. 6. In the service supply base, only targeted suppliers in targeted commodities will be eligible for consideration; Defined categories of performance will be assessed on a regular basis, with published performance ratings; Common performance metrics with defined minimum acceptable performance standards are being established for ongoing supplier performance assessment; There is a defined evidence package; Q1 probation is eliminated; There is revocation of Q1 for unsatisfactory performance if not rectified within a defined time period. Additionally, certain defined events will trigger revocation.

Basic Requirements The basic requirements for Q1, while similar to the prior criteria, incorporate significant differences: 1. 2. 3. 4. 5. 3rd Party Certification to ISO-9001 (automatically to ISO9001:2000 for those not currently registered); An effective QOS, with QOS metrics; Performance above minimum acceptance standards; Certification to ISO 14001 by 2005 Customer Endorsements from up to 5 Ford customers

Dave Watkins is President of Omnex, Inc. and a senior trainer/ consultant. He has a wide range of international experience focused on enhancing his clients ability to create value for customers and stockholders and integrating quality and manufacturing systems to enhance performance.

Customer performance ratings will focus on Quality, Timing, Cost/ Look at the Training Schedule in this newsletter and contact us for Budget performance; Commercial assessment will focus on Cost information on training and consulting services available to help your and Quality. These changes and enhancements clearly target and require performance, continual improvement and customer satisfaction, rather than just achieving conformance to system requirements.

company achieve Q1 and a competitive advantage that leads to greater growth and profitability.

See the full article on the Omnex website at www.omnex.com/news/news.html.

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Omnex News
News from Asia India New Software Releases from Omnex Systems
TELCO, Indias biggest OE manufacturer of heavy vehicles, has selected Omnex for a large supplier training initiative. Omnex will be training around 300 suppliers of TELCO. Omnex India recently partnered with Visteon India for their Six Sigma initiatives. ZF Steering Gear has purchased and implemented the EwQMS Omnex Systems Suite through Omnex India. Also, the India office is working with ZF Steering Gear India and Asian PPG Industries Ltd. for TS 16949:2002 (Second Edition) implementation. Omnex and TUV Rheinland India have announced joint training programs on quality improvement to the Indian industry. Thailand Our Thailand office has recently signed two consulting projects for ISO/TS 16949:2002 (Second Edition). It also completed its first ISO 17025 implementation and an ISO 9001:2000 implementation for BASFs regional chemical operations. Omnex Systems recently released new versions of Audit Pro and Document Pro. In addition, the industry has taken notice of the full Enterprisewide Quality Management System (EwQMSTM). Omnex Systems has implemented several suites in the US and abroad. Already, the suite that does it all is doing it worldwide. (See below, and the article about the EwQMS Suite on page 7.) AQuA was written up in the October issue of Quality Digest in the Newsoftware section. A screenshot was shown, and a description told about how it links with the rest of the EwQMS Suite.

Omnex to Provide Training at National Manufacturing Week Conference

Ford Asks Omnex to Present on Ford Q1

For the first time, National Manufacturing World will partner with Omnex to provide public training seminars. The conference takes place at McCormick Place, Chicago, March 18-22, 2002. Omnexs courses during the 5 day conference will include Understanding the ISO-9001:2000 International QMS Standard, Six Sigma: An Executive Overview and Understanding the ISO-14001 International EMS Standard.

Omnex has been asked to participate in a series of Q1 for Service rollout presentations sponsored by the Ford Global Facilities, Materials and Services Purchasing group. Participants include targeted suppliers from the Transportation, Construction, Machinery & Equipment, Industrial Materials, and Service industries.

Online Training

Omnex is offering its first online courses in collaboration with a leader in webconferencing, Virtual WorkshopsTM. Currently Omnex is teaching the Understanding ISO 9001:2000 course found in our Training curriculum.

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OMNEX

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2001-2002 SCHEDULE

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734.761.4940
ISO/TS 16949:2002 (Second Edition) Lead Auditor Training for Automotive
Jan 28-Feb 1, 2002 February 18-22,2002 March 18-22, 2002 April 15-19, 2002 May 20-24, 2002 June 24-28, 2002 July 22-26, 2002 January 21-23, 2002 February 11-13, 2002 March 13-15, 2002 April 8-10, 2002 May 15-17, 2002 June 17-19, 2002 July 15-17, 2002

WWW . OMNEX. COM

ew! ISO/TS 16949:2002 (Second Edition) with ISO 9001:2000 N Understanding and
Implementing ISO/TS Understanding, Documentation and Implementation of ISO/TS 16949:2002 (Second Edition)
January 14-16, 2002 February 6-8, 2002 March 4-6, 2002 April 3-6, 2002 May 6-8, 2002 June 5-7, 2002 July 8-10, 2002 December 17-18, 2001

Training Schedule is subject to course load requirements; dates may vary. Please contact Omnex for the most current information and a copy of our catalog, outlining our full course offering.

If you want to be current on all 16949:2002 (Second of the changes in the new ISO/ Edition) TS16949, Omnex is the place November 19-20, 2001 to go for training!

ISO/TS 16949:2002 (Second Edition) Internal Auditor Training for Automotive

ISO/TS 16949:2002 (Second Edition) Transition Training for Auditors of Automotive

January 17-18, 2002 February 25-26, 2002 March 14-15, 2002 April 11-12, 2002 May 16-17, 2002 June 13-14, 2002 July 18-19, 2002

ISO/TS 16949:2002 fully integrates ISO 9001:2000 and will be the automotive standard of the future.

Ford-Approved Automotive Training

Ford Q1 Overview QOS Implementation and Improvement for Manufacturing/ Service
January 10-11, 2002 February 7-8, 2002 March 7-8, 2002 April 4-5, 2002 May 9-10, 2002 June 6-7, 2002 July 11-12, 2002

APQP
APQP Implementation and Improvement
January 21-25, 2002 April 29-May3, 2002 July 29-Aug 2, 2002

AQuA
Omnex Systems offers training in its popular APQP process management and quality documentation software.

November 21, 2001 December 10, 2001 January 9, 2002 February 6, 2002 March 6, 2002 April 3, 2002 May 8, 2002 June 5, 2002 July 10, 2002

This one day course for Ford suppliers will provide a three hour overview of the new Ford Q1 and an in-depth 4 hour look at the 15 part Manufacturing Assessment Tool. For Ford Q1 Training for Service, call Omnex.

ISO/TS 16949 8-9, 2001 November

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FMEA

AQuA 3 Basic Training

November 12, 2001 December 3 & 10, 2001 February 18, 2002 April 15, 2002 June 10, 2002

FMEA based on AIAG and Ford Q1 Requirements January 7-8, 2002 February 4-5, 2002 March 11-12, 2002 April 1-2, 2002 May 13-14, 2002 June 3-4, 2002 July 11-12, 2002

AQuA 3 Workshop
November 13-14, 2001 December 11-12, 2001 February 19, 2002 April 16, 2002 June 11, 2002

Study linkages between concept, system, design, and Process FMEAs.

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OMNEX

2001-2002

SCHEDULE

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734.761.4940
NOW RAB-ACCREDITED!

WWW . OMNEX. COM

ISO/IEC 17025
This new standard replaces lessons learned from implementation of the ISO/IEC Guide 25:1990 and EN 45001: 1989 and contains all the requirements that testing and calibration laboratories should have.

ISO 9001:2000

Transition Training
RAB-APPROVED!
An intensive two day auditor transition training course for auditors who have passed an internal or lead auditor course. This two day course will teach ISO 9001:2000 audit trails, scope selection, and audit planning. Breakouts and graded exercises will test your skills in the new ISO 9001:2000 requirements for documentation, management review and customer expectations, etc.

ISO 9001:2000 Lead Auditor

November 26-30, 2001 December 10-14, 2001 Feb 25-March 1, 2002 April 22-26, 2002 June 17-21, 2002 December 3-4, 2001 February 4-5, 2002

ISO 9001:2000 Internal Auditor

December 5-7, 2001 February 11-13, 2002 April 8-10, 2002 June 10-12, 2002

Laboratory Quality Systems

February 14-15,2002 April 11-12, 2002 June 20-21, 2002

Understanding and Implementing ISO 9001:2000

April 1-2, 2002 June 3-4, 2002

ISO 14000
ISO 14000 Lead Auditor
November 12-16, 2001 Jan 28-Feb 1, 2002 March 18-22, 2002 May 20-24, 2002 July 22-26, 2002

ISO 14000 Internal Auditor

January 14-16, 2002 March 11-13, 2002 May 13-15, 2002 July 15-17, 2002

This is your last chance to order the best techniques for value-added implementation, interpretation, and documentation of ISO 9001:2000 from Omnex. Chad Kymals book is going to be printed by Paton Press. But you can order one of the few copies Omnex has left. Contact us today to order at a cost of $50. 734.761.4940 l info@omnex.com

How to Audit ISO 9001:2000 An Auditors Guide

November 15-16, 2001 December 3-4, 2001 February 14-15, 2002 May 9-10, 2002

Six Sigma
Taught by a Master Black Belt who led Allied Signal Safety Systems in their Six Sigma implementation. The Omnex Six Sigma training instructor will show you the hands-on techniques used in the successful deployment of Six Sigma from an insiders view. With our Black Belt training, youll be able to save $500,000 - $750,000 per Black Belt. And sign up today for Omnexs Champion Training in Six Sigma!
Call Omnex for more information on our Six Sigma Open Enrollment and onsite training being offered now.

Understanding, Documenting and Implementing ISO 14000

January 7-9, 2002 March 4-6, 2002 May 6-8, 2002 July 8-10, 2002

California Training
Omnex is offering courses on the West Coast. Many of the courses you see here are also offered with the Semiconductor Supplement included. Call Jim Hooper at 408-683-2710 or visit www.omnex.com to obtain a schedule for San Jose.

OMNEX... A world of Knowledge

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nterprise-wide software solutions are just starting to come out on the market. The Omnex Systems EwQMSTM Suite may be the answer to what companies are looking for one package for all of their quality management needs. Companies today are tired of addressing their documentation, auditing and measurement systems analysis needs by stringing several packages together.. And organizations who have locations around the world are looking for Internet-based solutions like EwQMSTM. The EwQMSTM solution allows the organizational entity and the supply chain to act as a cohesive whole. How does this work? Read the Hitachi Cable Story below. Though this implementation is in its infancy, the potential is huge.

The Hitachi Cable Story

Enterprise-wide Quality Systems

running. So in a matter of three days the core of the EwQMS suite would be functional. Omnex Systems purchased the server and configured the system for Hitachi. Next we carried the software and hardware to Hitachi and installed it that day. In two more days, we uploaded the existing documentation to Document Pro and got Audit Pro up and running. Omnex delivered on its promise. Greg says, We found the software to be very user friendly, with no so-called bugs in the software. The software required very little additional programming to meet our companys specific requirements. Basically, the software can be loaded off the shelf and it becomes functional immediately.

Chad Kymal, Omnex Systems President, says, We run against competitors that give quotes where the set-up and implementation Savings with AQuA costs for the Hitachi worked with software are much Omnex because of the larger than the large savings they got quote for the while using Omnex software itself. On Figure 1: EwQMSTM Suite Systems AQuA the other hand, software. Hitachi Cable Omnex Systems can had been using AQuA software since May, 2000. Greg Walts, typically get a company up and running and the documents Quality Manager at HCI, found AQuA user friendly and converted in a day. On top of that, we dont need to customize powerful to use. By the end of 2000, Greg had documented the programs. Why? Quality and quality systems are Omnexs over $200,000 in savings using AQuA. (Go to business already. The flexibility is built in to accommodate most www.omnexsystems.com to download a presentation from organizationss quality systems. We not only accomplished it at HCI on the savings it got from AQuA.) HCI, we just did it again in a Lear Seating plant last week. Hitachi QMS Strategy At HCI Omnexs web-based solution has been a major boon. Hitachi Cable Indiana along with other Hitachi Cable companies Greg Walts says, Document Pro and Audit Pro are both webbased software packages. Our desire to use the Internet for global were looking for a system to 1) bring standardization to their communications will make it much easier to achieve our interquality systems worldwide, 2) allow communications between companies concerning quality matters by using the Internet, and company goals. We envision an audit program that will be used by all of the satellite companies at one time. HCI is still in the 3) help information travel more easily. Also, 4) Hitachi manageprocess of implementing Doc Pro, Audit Pro, and BOSS to their ment was seeking an efficient means of obtaining critical fullest potential. Their implementation of the AQuA software performance measurements for each operating unit. helped them to realize a savings of $225,000. The initial estimaDue to their experience with AQuA, it seemed natural for HCI tion of the savings for the suite will definitely be at least that to expand their involvement with Omnex Systems by implement- much, if not more. ing its EwQMS software. What surprised them was the relative For the complete text of Greg Walts interview, go to ease with which Omnex Systems got their implementation going. www.omnexsystems.com/news/news.html. While most of the time it takes weeks or months to install new software and convert existing systems, Omnex Systems told Take a guided tour of Document Pro and Audit Pro Greg that the web installation would take one day and that Audit online, right at your desk. Call 734.761.4940. Pro and Document Pro would take a day each to get up and

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3025 Boardwalk Suite 120 Ann Arbor, MI 48108 Phone: 734.761.4940 Fax: 734.761.4966 Email: info@omnex.com Web: www.omnex.com

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