“It’s Never Over Until… No,

Wait, It’s Just Never Over!”

Performance Improvement
Network (PIN)
02 September 2004

1
 A Fundamental Truth!
• Quality begins at the top and succeeds only
through top-management support…and
constancy of purpose.

• The evolving definition of quality recognizes the

difference between what Joseph Juran calls
“little-q” (product quality) and “big-Q”
(organizational process quality). {Ref: “Juran on
Quality by Design”}

2
 Let’s Review Some “Other” Basic
Principles
1. All work is a process
2. PDCA
3. Balanced Scorecard – Data, not opinions & conjecture
4. Duality of Work
5. Process Control, Assurance, Improvement
6. Voice of the Customer, the Process, and the Employee
7. Alignment of Soft Systems
8. System of Profound knowledge

3
2. The Plan-Do-Check-Act (PDCA Cycle)

Driving Continuous Improvement thru

the PDCA Cycle

ACT PLAN
Not
Just
Plan/Do
CHECK DO

5
No problems 3. Balanced Scorecard
ahead, my Net Worth
is $11,250,567 Weight: 342 lb.

Blood Pressure
290/160

Smoke 3
packs
a day
6
4. The Duality of Work Principle

Where everyone personalizes

the concept of: “Working on the Process”
(improving how we do the
work)
“Working in the while also
Process”
(delivering results)

Management has the

special responsibility of
providing a work climate
that enables, encourages,
and rewards this behavior 7
 5. Principle of Process Control, Assurance, Improvement
(aka “Maintaining the Gain”)

Action Plan

QI QC
Check Do

QA Quality Level

Quality Control: Control the process to keep it working as designed

Quality Assurance: Assure that quality level does not fall back (system
related)
Quality Improvement: Change product or process to Improve the quality
8
level
 7. Voice of the Customer, the Process, the Employee

VOP

VOC
Operational
Customer and Excellence
Market Focus

Costs

VOE Management

Employees
9
7. Alignment of Soft Systems

?
? Reward
Recognition Goals
•Individual
? •Team
Communication •Organizational

Promotion
? 10
8. System of Profound Knowledge

• Four Interrelated Parts:

– Appreciation for a
System
– Understanding of
Variation
– Theory of Knowledge
– Psychology

11
 The Quality Journey has
plateaus
Desired
future
state
Some
means to
measure
overall Where do we
Now
progress want to be &
How do we
measure
Start progress?

Time 12
 The “Challenge”

“The Ideal” “The Reality” “Do about it?”

13
ISO
What Do I Do (Next)?
9000

Six Baldrige
Balanced
Score- Sigma.
card

Lean
Mfg.

14
 Compliance or/and
Improvement?
An Important Question to Ask - -

What are we trying to do? Compliance only

(“conformity in fulfilling official requirements”)
or do we have an intent to continuously
improve using our QUALITY philosophy
and toolset?

15
 “Breakthrough Thinking”: Gerald Nadler &
Shozo Hibino - - the Purpose Hierarchy
Level of Deployment in the
Organization
Full Organization, Enterprise,
I Company
Full departments, Divisions,
II Business Units, Companies
Software engineering; systems
III engineering; human
engineering
Cross-functional macro-level
IV process; work cell level
V Work cell level; process
control; process upset
If you want to:
Sustain a measurable,
benchmarkable enterprise-wide Performance Excellence
continuous improvement
initiative
Build a quality system that
helps reduce variation in
underlying processes
Control, analyze, improve an
overall system
Control, analyze, improve,
design a macro process
Control, analyze, improve a
sub-process
Tool (s) & thought processes
to use:
Baldrige Criteria for
ISO 9000:2000
Capability Maturity Models
(CMM): Software Systems,
People, IT
Lean, Six Sigma, DFSS,
Design for Manufacturability
(DFM)
PDCA; SPC; Basic Quality
Tools
16
 Baldrige National Quality
Program - 2004
ORGANIZATIONAL PROFILE:
ENVIRONMENT, RELATIONSHIPS, and CHALLENGES

2 5
Strategic Human
Planning Resource
Focus
1 7
Leadership Business
Results

3 6
Customer & Process
Market Focus Management

4
Measurement, Analysis,and Knowledge Management
17
 Bringing It All Together
1. Leadership
• Leadership
• M/V/V (aspirations)
• Operating Principles
• Governance
• Operational Reviews
• Social Responsibility
5. Human
2. Strategic
Resource
Planning
Focus
• Strategic Plans/Goals • Work Structures
• Operational Plans/Goals • Performance Management System
• Financial Goals • Training
• Technology Needs • EE Development
• EE Environment & Services
• Initiatives/Supporting Actions
7. Business
• Differentiation/Competitive • EE Satisfaction
Advantages Results
• Customer-Focused
• Product and Service
• Financial and Market
3. Customer & 6. Process • Human Resource
Market Focus Management • Organizational
Effectiveness
• Governance and Social
• Market Knowledge • Value Creation Processes
• Customer Requirements & Responsibility
• Support Processes
Segmentation
• Relationship Management
• Customer Support

4. Measurement, Analysis, and Knowledge Management

• Performance Measurement • Data and Information Availability 18
• Performance Analysis • Organizational Knowledge
1. MB
Bringing It All Together
2. ISO 6& BSc Lm 6&
5. HumanLm
3. 6& 2. Strategic Bsc Resource bpr
4. CMM
5. LM Iso
Planning Cmm ISO Focus Cmm
6. BSC • Work Structures
• Strategic Plans/Goals
7. BPR • Operational Plans/Goals • Performance Management System
• Financial Goals • Training
• Technology Needs • EE Development
6& Bsc Lm 6& BSC Lm
• EE Environment & Services
• Initiatives/Supporting Actions
7. Business
1. Leadership • Differentiation/Competitive • EE Satisfaction

Iso Bpr Cmm

Advantages
?
Results Cmm
Bpr
• Customer-Focused
• Leadership
• Product and Service
• M/V/V (aspirations) 6& Bsc Lm 6& Bsc LM
• Financial and Market
• Operating Principles 3. Customer & 6. Process BPR • Human Resource
• Governance
• Operational Reviews Market Focus
Iso Cmm
Management
ISO Cmm
• Organizational
Effectiveness
• Social Responsibility
• Governance and Social
• Market Knowledge • Value Creation Processes
• Customer Requirements & Responsibility
• Support Processes
Segmentation
• Relationship Management
• Customer Support
Lm BSc BPR
4. Measurement,
Iso 6& Cmm Analysis, and Knowledge Management
• Performance Measurement • Data and Information Availability 19
• Performance Analysis • Organizational Knowledge
Baldrige Item Scores: example
503
points
(MB)
Baldrige Item Scores
%
100 Process Results
90 (550 points) (450 points)
80
70
60
50 50%
%

40
30
20
10
0
1.1 1.2 2.1 2.2 3.1 3.2 4.1 4.2 5.1 5.2 5.3 6.1 6.2 7.1 7.2 7.3 7.4 7.5 7.6

t t
hip Mk K M gm
g er/ r e, us s M
d ers n nin t o m
a su F oc ces su
lts
Le
a
Pla Cu
s
Me HR Pro Re 20
 What can you say about a MB 500
point organization?
Process:
• Effective, systematic
approaches, responsive to the
overall requirements
• Approaches well-deployed,
although deployment may vary
in some areas
• Fact-based systematic
evaluation and improvement
process in place and some
organizational learning
apparent
• Approaches are aligned with
organizational needs
Results
• Improvement trends and/or
good performance levels for
most areas of requirements
• No pattern of adverse trends
or poor performance levels
• Some trends/levels show good
relative performance
(comparisons)
• Business results address most
key customer, market, and
process requirements
21
 What can you say about a 500
point organization?
• The organization demonstrates effective,
systematic approaches to the overall
requirements of the Items, but deployment may
vary in some areas or work units. Fact-based
evaluation and improvement address the
efficiency and effectiveness of key processes.
Results address key customer/stakeholder,
market, and process requirements, and they
demonstrate some areas of strength and/or
good performance.
22
 What can you say about an
organization that:
• Is ISO 9000:2000 certified?
• Is Level 4 on Software CMM?
• Has saved $2.5M from process improvements
this past fiscal year?
• Has 1 Quality Tools expert for every 250
employees in the organization?
• Has reduced cycle times by 20% each of the
past 2 years in its product development cycle?
• Has aligned its recognition system with its core
values?
23
 The Quality Journey has
plateaus
Desired
Business Baldrige Journey
future
700
state
Some 600
500

means to
MB Points

400

measure
300
200

overall 100 Where do we

Now
want to be &
0
progress 1991 1992 1993 1994 1995 1996 1997

How do we
measure
Start progress?

Time 24
 What are the roadblocks?
Desired
future
state
Some
means to
measure
overall Now
progress

Start

Time 25
What are the roadblocks?
70% of the initiatives fail:
Biggest obstacles that XXX faces are:
1. Lack of sustained management
commitment and leadership
2. Unrealistic scope
and expectations
3. Resistance to Change

Quality Evolution
L1 - Quality Assurance/Compliance

Who is XXX??? L2 - Continuous Improvement

Q
L3 - Enterprise System

L4 - Culture
26
8
Force Field Analysis – “To-Be” State
• #1
• #2
• #3
• #4

Obstacles

Strengths

• #1
• #2
• #3
• #4

27
 5 Whys & Root Causes
• Root Cause

An identified reason for the presence of a defect or problem.

The most basic reason, which if eliminated, would prevent recurrence.

The source or origin of an event.

• Determine The Root Cause: 5 Whys

Problem
Why? Why? Why? Why? Why?
Statement

28
 Time-based profile of the
challenge
Progress

A means to
evaluate overall
To-Be B
progress -
tailored based on Desired
organizational Future
State
appropriateness
As-Is A
Current
State
C
D
Core Values of the Organization
Now time 29