QDM - Quality Driven Management

All metrics, whether SQIs or KPIs, or tools such as dashboards or scorecards, help meet the organization goals.

True

Transportation

Unnecessary movement of materials or information.

Milestone Chart

Used for any type of planning, including Action Planning, when we want to define the steps we will take to improve a process or prevent a failure.

Stakeholder Analysis

Used to identify people who have an interest in the process or activity.

RACI

Used to understand people's roles in a process. • Responsible - Does the work • Accountable - Responsible for the outcomes • Consented - Approve project impact • Informed - Notified about project impact.

Visual Management

Using visual indicators to identify and clearly mark storage locations for parts and products, to identify a condition that calls for direct action, or to communicate information or progress to others.

QDM Principles - Quality involves teamwork

View work as a collaborative process.

QDM Principles - Be scientific

We base decisions on facts and data, rather than guesses or opinions.

QDM Principles - Customers define quality

We strive to understand customer requirements and expectations.

systems thinking

When optimizing performance, you should focus on both waste and core constraints. Identifying and removing core constraints is part of "systems thinking".

5S+1 Tool

Which of these tools might help you maintain an organized, safe and high-performance way of working?

Opportunity Statement

a description of a quality problem, its impact, and the benefits of solving it.

QAT - Quality Action Team

a group of FedEx employees who come together to work intensively on a quality issue, then disband once the problem has been solved.

5 Whys

a way of brainstorming that can help us to dig beyond our first observation of a problem's cause, and discover deeper causes.

ASSESS Phase Tools:

a. 5 Whys b. Waste Walk c. SIPOC d. Project Charter

ASSESS Improvement Opps - Customer Experience

a. Add Value b. Delight our customers c. Increase revenue d. Customer satisfaction

ASSESS Improvement Opps - Customer Experience TOOLS

a. Brainstorming b. VOC Translation

This graphic is used in the Measure, Measure, Measure principle of QDM. It is an example of which of the following?

a. Control Chart (Wrong) b. SQI c. Data Collection Plan d. Run Chart (Correct)

ASSESS Phase Improvement Opportunities (3 Types):

a. Customer Experience b. Service Level c. Efficiency and Cost

QDM Principles:

a. Customers define quality b. Be scientific c. Measure, Measure, Measure d. Optimize business performance e. Quality involves teamwork f. View Failures as opportunities

View Failures as Opportunities - three questions:

a. Do we understand the root cause of problems, and have we gathered learning about them? b. Have we developed an action plan? c. Have we shared our learning with others?

Opportunity Statement - Key Points

a. Don't include causes b. Don't attribute blame c. Focus on a single problem d. Don't offer solutions e. Be realistic

QDM's two main goals:

a. Exceed customer expectations b. Optimize the processes by which work gets done

Quality involves Teamwork - two questions:

a. Have we built a shared understanding of the teamwork that a business process requires in our daily work? b. Who should we involve in an improvement effort?

Be scientific - three questions:

a. Have we gathered an adequate fact base? b. Do we understand the root cause of the problem? c. Will our solution address the root cause?

QDM Methodologies

a. ISO b. Baldridge c. Lean d. Six Sigma

ASSESS Phase Key Steps:

a. Identify potential opportunities b. Focus on one opportunity c. Define the scope and identify stakeholders d. Form a Quality Action Team (QAT) - if needed

ASSESS Phase Summary Questions:

a. Is the problem being addressed correctly identified and prioritized? b. Are the right people working on this project? c. Does the scope of the project focus on one opportunity and align with the SIPOC analysis the team did? d. Does this project impact an SQI metric or does it align with our strategic business priorities?

ASSESS Phase Typical Deliverables:

a. Opportunity Statement b. Quality Action Team (QAT) Charter - if needed c. Approval and support to go forward

Bottlenecks

> A common cause of diminished outflow from a process, and occur at points in a process where the performance and capacity of the entire process is limited by a lack of components and resources. > For complex projects, focus first on bottlenecks.

Value enabling activity

> A requirement for doing business. > Meets legal, regulatory, safety or business requirements.

SIPOC

> A simplified linear block diagram of a work process, organized in a specific order > Supplier, Input, Processing, Output, Customer.

ABLE Problem Solving Process

> ASSESS > BUILD > LAUNCH > EVALUATE

ASSESS

> ASSESS opportunities to improve the customer experience or business performance - and focus on one. > Focus on opportunity and initiating a team are the earliest steps in ABLE.

Control Chart

> Allows us to picture the degree to which a process varies around a centerline and whether or not the process is within defined limits of acceptability. > A control chart is used to monitor and control the variation in a business process.

BUILD

> BUILD understanding of the improvement opportunity and build the solution. > Selecting a solution and identifying how you will measure success are important parts of BUILD.

QDM Principles

> Customers Define Quality > Be Scientific > Measure, Measure, Measure > Optimize Business Performance > Quality Involves Teamwork > View Failures as Opportunities

EVALUATE

> EVALUATE the implementation to confirm its real work success. > Performance is measured and results shared.

Gap Analysis

> Helps to identify gaps that keep us from reaching goals, and raise our performance. > Compares actual performance to potential performance. > Need to think about the entire process from beginning to end.

LAUNCH

> LAUNCH the solution successfully through careful planning and control. > The improvement effort proceeds through careful implementation and control planning.

POUS

> Point of Use Storage. > Locating supplies, tools, or information near the use point, preferably in small quantities that are replenished often.

Non-value added activity

> Those activities that we call waste. > All activities that neither add nor enable value. > One such as re-delivering a shipment or performing a task for an internal customer more than once.

Safety

> plus one that always come first, Safety. > Ensure safety is a key driver in processes, including ease of access to critical safety areas.

Project Charter

A formal document describing a Quality improvement project and stating the business objectives for it.

Brainstorming

A guided group discussion for generating a list of ideas about a topic and for eliciting group involvement.

Root Cause Analysis

A method to determine the cause of a quality problem that once corrected, will yield the greatest improvement. May use any number of familiar tools like: • Brainstorming • 5 Whys • Fishbone • Pareto Chart • Control Chart • Process flow

Be scientific - Key Tools:

a. Pareto Chart b. 5 Whys c. Fishbone Diagram

View Failures as Opportunities - Key Tools:

a. Root Cause Analysis b. Milestone Chart c. Lessons Learned

Measure, Measure, Measure Key Tools:

a. Run chart b. Control Chart c. Data Collection Plan

Quality involves Teamwork - Key Tools:

a. SIPOC b. RACI

ASSESS - Identify potential opportunities TOOLS

a. SQI Scorecard b. Key Process Indicators c. Customer Research d. VOC Translation e. Waste Walk f. Process Map

QDM Quality Measures:

a. Service Quality Index (SQI) b. Key Process Indicators (KPI) c. Dashboards and Scorecards

Quality Costs - Two very real types:

a. The Cost of Poor Quality b. The Cost of Good Quality

BUILD Phase Tools:

a. Time Value Map (TVM) b. 5S+1 c. Standard Work d. Spaghetti Map e. KANBAN f. POUS g. Visual Management

8 Commonly Recognized Waste: TIM C. WOOD

a. Transportation b. Inventory c. Motion d. Correction e. Waiting f. Overproduction g. Overprocessing h. Disengagement

QDM Lean Waste Concepts - 3 categories

a. Value-add activities b. Value enabling activities c. Non-value add activities

Process Improvement Tools:

a. Visual Management b. Points of Use Storage (POUS) c. Kanban

Customers define quality - Key Tools:

a. Voice of Customer (VOC) Translation b. Process Flow Map c. Customer Corridor Map

Optimize business performance - Key tools:

a. Waste Walk b. 5S+1 c. Gap Analysis

Measure, Measure, Measure - three questions:

a. What can we measure to understand when we have failed to meet a customer expectation and thus have room to improve? b. What can we measure to show us how consistently, or with how much variation, we are providing a positive customer experience? c. What can we measure to ensure that the results from new improvements are a success?

Optimize business performance - three questions:

a. What is waste? b. Can we identify waste and value-added or value-enabling activities in our processes? c. How do we use QDM's waste reduction tools to minimize waste?

Customers define quality - three questions:

a. Who are my customers? b. Are they satisfied with the services I provide? c. What areas do they want me to improve?

1:10:100 Rule:

• $1 spent on doing the job right saves • $10 on correction and • $100 on the cost of a failure

Process Flow Map

• Can help us understand the processes that support customers • Reach out and interact with those who receive our work • Streamline operations and avoid errors

Customer Corridor Map

• Connect our role to external customer needs • Build understanding of customer needs • Work to increase brand loyalty

Applying QDM Summary:

• When you see a problem, fix it. • When you see something that can be done better, do it. • Take ownership of work, do it in the best way possible.

Waste Walk

A tour where we go make 1st hand observations about current process. Great way to find opportunities.

KANBAN

A visual signaling method used to identify when an item (or production) is needed in a replenishment system. Example is the reminder slip near the back of your checkbook that prompts you to reorder.

Run chart

Allows us to measure failures.

Data Collection Plan

Allows us to measure successes.

In businesses generally, _____________________ in a business are due to mistakes, errors, and replacing lost customers.

10-20% of corporate expenses

A dissatisfied customer with any OpCo stands a ____________ of switching to a competitor.

40% chance

Simplify

Define a place for everything and put everything in its place in a manner that promotes work flow.

Value added activity

Directly adds value for customers willing to pay.

Overprocessing

Efforts, high standards, or tight specifications that do not add value from the customer's view.

Standard Work

Establishing the most safe and effective combination of steps and resources for performing a task, and then consistently applying this standard work method in order to reduce variation, defects, and waste.

Motion

Extra movement by people that does not add value.

Systems Thinking

Focusing on the whole system.

Inventory

Having more parts, pieces, or information than is necessary at one time.

Lessons Learned

Help us to identify the things that we think can be done better in the future, and provide a way for us to document and share those learnings.

5S+1

Helps to streamline processes by making processes easier to manage and inefficiencies easier to spot. Sustain, Sort, Simplify, Shine, Standardize, +Safety

LAUNCH Phase Process/Tools

IMPLEMENTATION PLAN

Waiting

Idle time while waiting for things such as materials, information, or approvals.

IMPLEMENTATION PLAN

It may include the following: a. Approval - Get approval from management to proceed. b. Task - Request and implement system changes. c. Budget - Acquire a full time dedicated resource. d. Training - Provide documentation and training. e. Communication - Communicate process improvement. f. Timeline - Go Live. g. Control Plan - Generate metrics for management.

Voice of Customer (VOC) Translation

Can be used to help translate customer surveys and other research into actionable measurements.

Shine

Clean, sweep, and wash so it is easier to spot issues earlier.

EVALUATE Phase Tools:

Dashboard - An easy-to-read visual representation of the status of several key variables of a process.

Sustain

Maintain through continual use of improved practices.

Standardize

Make routine maintenance and cleaning part of the culture.

Overproduction

Making more than is immediately required or unnecessary work product.

QDM Principles - Measure, Measure, Measure

Measure failures, measure variation and measure success.

QDM Principles - Optimize business performance

Minimizing unnecessary effort, time, and cost whenever possible.

Disengagement

Not fully tapping employee experience, knowledge, creativity, and capabilities, or delegating tasks to those with inadequate training.

Sort

Remove the unnecessary and retain only things needed to do the job.

QDM Principles - View Failures as opportunities

Seek the truth and avoid playing the blame game.

Sub-optimized

Sometimes an optimized process has more capability than other steps in the process. In order to maintain a smooth flow, the overall system must move at the pace of the slowest process. Other processes in the system are slowed down, which is called "sub-optimizing".

Pareto Chart

Tells us where to focus

Correction

The expense, rework, or scrap resulting from service failure or incorrect documentation.

Constraints

The steps of our systems and processes that limit the ability to achieve more of a goal.

QDM Mission

To deliver market-leading customer experiences, business excellence, and financial returns through a quality-oriented culture and day-to-day application of quality science.