It’s Time for a QMS Revolution with Quality 4.0
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This webinar provides insightful information on how Quality 4.0 will revolutionize the QMS implementation process. Moreover, the presenter discusses on how the emergence of social media platforms will play a role in the organization`s ability to achieve results. Main points covered: • Why it’s time for a QMS revolution? • How do IoT and IIoT serve as enablers for the next generation of QMS across industries? • What skills do quality professionals need to develop to meet the challenges of the digital age? • How does the emergence of social media platforms and an increasingly transparent landscape impact the organizations’ ability to achieve optimal results and what can organizations do about it? Presenter: Peter-Elias Alouche is the Quality Practice Manager at Intelex Technologies, specialized on Quality and Supply Chain management system solutions. He has worked in a variety of industries, ranging from the power generation and utility sectors to manufacturing of industrial inkjet systems and injection molding systems. Moreover, Peter has been involved with addressing nonconformance from ISO 9001 compliance audits, developing nonconformance processes, incoming inspections, internal audits, Six Sigma Green Belt projects, root cause analysis workshops, Kaizen events, FMEA workshops, supplier quality initiatives, ISO 9001 compliance, and new product development initiatives. Link to the recorded webinar: https://youtu.be/C-0od9gf2cU
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It’s Time for a QMS Revolution with Quality 4.0
- 2. Presented by: Peter-Elias Alouche, P. Eng., MBA Practice Leader, Quality Intelex Technologies Inc. Communications Co-Chair ASQ Toronto Email: peter.alouche@Intelex.com LinkedIn: http://ca.linkedin.com/in/peteralouche Twitter: @drpete98
- 3. It’s Time for a QMS Revolution with Quality 4.0
- 4. Agenda • Why it’s time for a QMS revolution • Quality 4.0: IoT & IIoT Enablers • Skills to Develop for the Digital Age • Social Media & QMS Transparency • Q&A
- 6. Why it’s time for a QMS Revolution …
- 8. Top 5 costliest product recalls worldwide as of September 2016 Top five costliest product recalls as of September 14, 2016 (in billion USD) 26 8.9 7.3 3.3 3.2 0 5 10 15 20 25 30 Takata airbag recall* Merck Vioxx recall* Volkswagen emissions recall* Pfizer Bextra recall Toyota vehicle recall Cost of recall in billion U.S. dollars Note: Worldwide; September 14, 2016 Source: Investopedia ID 619039
- 9. Volkswagen's costs resulting from the diesel emissions scandal between 2016 and 2018 (in billion U.S. dollars) Volkswagen diesel emission scandal - costs 2016-2018 72.91 62.79 0.5 136.2 0 20 40 60 80 100 120 140 160 2016 2017 2018 2016-2018 CostsinbillionU.S.dollars Note: Worldwide; 2016 Source: Various sources ( Argon estimates, broker reports, press search); Volkswagen ID 665397 2016 Annual Revenue $256 US Billion
- 10. Cost of Quality is the #1 KPI Quality professionals struggle with measuring today* * Source: December 2016 Intelex Quality Survey. Sample size = 302.
- 11. 37.5% 15.1% 11.2% 11.2% 9.3% 6.2% 5.8% 3.9% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0% 0 20 40 60 80 100 120 #Responses What is the one quality KPI you're unable to measure today but would like to? Count % Response Source: Intelex Quality Survey Dec. 2016, 302 participantsSource: December 2016 Intelex Quality Survey
- 12. Remember the Cost of Quality Iceberg? * Source: Juran Global www.juran.com Rework Scrap Recalls Returns Inspection Waste (Muda) 4% - 5% of annual revenue* Testing
- 13. COQ Iceberg * Source: Juran Global 10% - 25% of annual revenue* Rework Scrap Recalls Returns Inspection Waste (Muda) Testing Employee Engagement Overtime Employee Turnover Unnecessary Field Support Ineffective Processes Ineffective Scheduling Poor Inventory Turnover Wrong Customer Information Wrong Customer Requirements Unhappy CustomersLost CLV What’s underneath the iceberg is significant & often overlooked… Machine Downtime
- 14. What does this mean to my organization? Annual Revenue [$USD] COPQ Iceberg (Above) 4% - 5% COPQ Iceberg (Above + Below) 10% - 25% $10,000,000 $400,000 - $500,000 $1,000,000 - $2,500,000 $100,000,000 $4,000,000 - $5,000,000 $10,000,000 - $25,000,000 $1,000,000,000 $40,000,000 - $50,000,000 $100,000,000 - $250,000,000
- 15. Every $1 spent on a quality management program returned* ● $6 in revenue ● $16 in cost reduction ● $3 in profit Investment in Quality
- 18. CHANGE BUSINESS FOR GOOD
- 19. Quality Supplier Relations Safety Environment Your Text HereBring your presentation to life. Download this awesome diagram. Capture your audience’s attention. CHANGE BUSINESS FOR GOOD Security GRC Info Security Social Diversity Charity
- 20. THIS IS OUR PROBLEM TO SOLVE
- 21. . . . NEW TOOLS
- 22. . . . NEW TECHNOLOGIES
- 23. . . . NEW PARADIGM
- 24. IT’S TIME FOR A QMS REVOLUTION
- 25. Quality 4.0: IoT & IIoT Enablers
- 26. What is Industry 4.0? Source: Christoph Roser at AllAboutLean.com
- 27. Source: McKinsey & Company
- 28. DHL Augmented Reality Vision Picking
- 30. What is Quality 4.0?
- 31. What is Quality 4.0? • Industry 4.0 applied to Quality Management Systems • High levels of automation for standardized & repetitive processes • Elimination of unnecessary waste • IoT & IIoT to collect & analyze Big Data (inspections, energy, plant efficiency, maintenance, warranty, etc.) • Improved manufacturing methods – 3D printing for complex geometries & requirements • Social media providing instant customer feedback for goods & services • Cloud technology to centralize, analyze, & collaborate - globally • Platforms to seamlessly synchronize activities throughout the product life cycle • Improved automated inspections & data analysis in real-time • Improves forecasting and demand management throughout the supply chain to achieve JIT • Machine Learning & Artificial Intelligence used to predict and prevent the next recall from occurring • Digital Transformation of traditional management systems
- 32. PEOPLE PROCESSES TECHNOLOGY IoT = IT + OT CULTURE QUALITY 4.0
- 33. Global manufacturers expect digitization will help them, on average, increase annual revenues by 2.9% while reducing costs by 3.6%. Source: PwC 2016 Global Industry 4.0 Survey
- 34. Productivity increases of 4% – 5% per year Quality improvements that result in defects being cut by 50% On-time delivery increases from 82% to 98% Source: Rockwell Automation
- 35. Skills to Develop for the Digital Age
- 36. Learn to Code C#, Swift, Java IoT Microsoft, INTEL Online Learning YouTube, Udemy, TEDx, Khan Academy Manufacturing 3D Printing, Risk Data Science Analytics, BIG Data, R programming Cloud Technology INTELEX Social Media Innovation Foresight Mapping, Problem Solving, Design Thinking, UX EQ 7 Habits, The Charge, Empathy Quality 4.0
- 37. “Don’t just be a data monkey” 1. Stay relevant 2. Develop new skills for the digital age 3. Avoid extinction
- 41. Summary
- 42. IT’S TIME FOR A QMS REVOLUTION
- 45. Technology is Changing . . .
- 46. There’s Big Data . . .
- 47. There’s Robots . . .
- 48. . . . Social Media
- 49. . . . And You
- 51. CHANGE BUSINESS FOR GOOD
- 52. Quality Supplier Management Health & Safety Environment Your Text Here CHANGE BUSINESS FOR GOOD
- 53. About Established in 1992. Global client base. More than 450 employees. Over 1,200 customers. Over 1,000,000 users. Peer reviewed as best managed company.
- 55. www.susannemadsen.com 55 ISO 9001 Training Courses ISO 9001 Introduction 1 Day Course ISO 9001 Foundation 2 Days Course ISO 9001 Lead Implementer 5 Days Course ISO 9001 Lead Auditor 5 Days Course ISO 9001:2015 Transition 2 Days Course Exam and certification fees are included in the training price. https://pecb.com/en/education-and-certification-for-individuals/iso-9001/ https://pecb.com/en/partnerEvent/event_schedule_list
- 56. #PMSummit 56 ? THANK YOU peter.alouche@Intelex.com https://www.intelex.com/ linkedin.com/in/peteralouche @drpete98
Editor's Notes
- Webinar Description: Why it’s time for a QMS revolution How IoT and IIoT are enablers for next generation QMS across industries What skills do quality professionals need to develop to meet the challenges of the digital age? How the emergence of social media platforms and an increasingly transparent landscape impact organizations’ ability to achieve optimal results and what can organizations do about it?
- Peter-Elias Alouche, MBA, P. Eng. Practice Leader, Quality Peter-Elias Alouche is Intelex’s Quality Practice Leader with our Solution Management team and the Communications Co-Chair with ASQ Toronto. He has over 15 years of work experience in a variety of industries ranging from power generation and utility sectors to manufacturing of industrial inkjet systems and injection molding systems. He has primarily worked for small to medium sized manufacturing companies in Engineering, Quality, and New Product Development capacities. He is passionate about emerging technologies and the intersection of engineering and business.
- Thanks Hana. I’m excited to have everyone join us today to discuss this very important topic relating to next generation QMS and how Quality 4.0 and other technologies will help get us there. So let’s get started.
- So for today’s agenda, we’re going to cover the following topics.
- Before we get right into it, we want to start off with a poll question to set the tone for the presentation. So I’m just going to open up our first poll and we’ll give everyone about 30 sec to respond. Poll # 1: Why do you think it’s time for a QMS revolution? No major advancements since the days of the founding fathers of Quality We still have the same issues we’ve always had Quality profession does not leverage available and emerging technologies The world is much more complex than it used to be – we need change Old paradigms no longer apply Provide commentary as results are coming in.
- We constantly see examples of weaknesses in Quality Management Systems of organizations today. We constantly hear about catastrophic failures in the news and online from various sectors. From phones catching fire, to airplane crashes, to near misses, to major recalls of products, each of these instances are examples of weaknesses of complex management systems used in organizations. Each of these events are a symptom of a major problem in an organization’s processes and practices. These are examples of the major external failure costs that are part of the COPQ equation.
- Based on a survey that Intelex conducted at the end of 2016 where we surveyed over 300 Quality professionals including a broad range of seniority and expertise, we saw that COPQ is the most challenging metric Quality professionals are trying to measure today. And this is really critical because COPQ is the language of upper management. If you can’t speak about the pain in the business resulting from broken processes, inefficiency, waste, that ultimately impacts the customer in terms of a dollar figure, it’s going to be difficult to get investment and building a Culture of Quality across the organization.
- In the survey, we asked quality professionals where they were struggling the most and it was clear that COPQ was the biggest hurdle quality professionals and organizations are trying to tackle today. The next most difficult metric was response time. This is something that can be improved significantly by using a task based workflow software solution like Intelex. The remaining metrics are pretty much under control ranging from lead times, to nonconformances, to customer complaints. The usual suspects and we have been monitoring these metrics for years.
- When we think of COPQ initially we typically think of things depicted above the iceberg (scrap, rework, customer returns, inspections, recalls, etc.). These are the components of COPQ that are easier to measure and quantify. This is what is readily visible. According to the Juran Institute, this is typically 4% - 5% of annual company revenue
- Costs associated with poor employee engagement are significant (reduced morale, lower productivity, not motivated to focus on innovation which is where customer value is created) Excessive overtime is unnecessary if this is compensating for broken or poorly designed processes. Step back and identify the root causes of the problem which may or may not include a complete process redesign. Employee turnover – it is very costly to have to find and retrain employees. Also think about the lost knowledge gained on the job that is not readily available. Lost CLV – not just the initial single transaction. Need to think about the entire life of the customer. Unnecessary unplanned downtime may be contributing to poor quality products produced leading to an unscheduled maintenance and overhaul required to get a production line up and running as soon as possible.
- Based on research conducted by the Juran Institute, they estimate that COPQ is roughly between 10% - 25% of sales revenue when considering the entire COPQ iceberg. So in the case of Volkswagen where the diesel scandal is projected to cost them upwards of $136 US billion, they are well over the 10% - 25% of their annual revenue of $256 US billion (more like 53% !!! )
- To help justify investments in QMS whether it’s Industry 4.0, Quality 4.0, or just basic Quality fundamentals and CI initiatives: A study by the Centre of Economic and Business Research found that for each $1 spend on a quality management program returned some dividends. $6 in revenue $16 in cost reduction and $3 in profit
- 1st industrial revolution was when water and steam engines played a key roll. From looms in textile factories. 2nd industrial revolution – Mass production. Thanks to Henry Ford and the automotive industry where mass production first became a reality as manufacturing was broken into incremental steps to manufacture a finished good. 3rd industrial revolution – introduction of electronics and technology in manufacturing 4th Industrial revolution – cyber physical systems – where systems communicate with one another and control one another seamlessly. This includes integrated maintenance, monitoring, analytics, and integration of sensors and multiple systems. Intelligent factories where everything is interconnected Currently, Industry 4.0 is more of a vision and is still going to take 10 – 20 years to materialize and become pervasive in industry
- Industry 4.0 is the next phase in the digitization of the manufacturing sector, driven by: The astonishing rise in data volumes Computational power Connectivity - especially new low-power wide-area networks The emergence of analytics and business-intelligence capabilities New forms of human-machine interaction such as touch interfaces and augmented-reality systems Improvements in transferring digital instructions to the physical world, such as advanced robotics and 3-D printing. It includes cyber-physical systems, the Internet of Things, and cloud computing to ultimately create the smart factory Interconnecting people, processes, technology, within and across businesses
- Pickers wear a headset that presents vital information on a see-through display, helping them locate items more quickly and precisely. They now have both hands free, they can build stronger and more efficient pallets, with fragile items safeguarded. The integrated Google glass technology captures serial and lot ID numbers for real-time stock tracking. They are seeing reductions in error rates
- Automation used to manage packages for distribution
- Before investing in Quality 4.0 initiatives, you really should have a good foundation for your organizational culture, people, processes, and technology. At a minimum, make sure that you’re investing in the talent in your organization and you have robust processes in place that have been proven to help you with your day to day business activities. Your organizational culture defines your identify from your mission, vision, and values, to how team members interact with one another, customers, and suppliers. Once you’ve reached a level of maturity where you’re ready to integrate these aspects to leverage new emerging technologies from Industry 4.0 so help strengthen your QMS, then you’ll be ready to focus on your Quality 4.0 strategic plans and initiatives. Don’t jump the gun into a Quality 4.0 initiative if you have broken processes that need your attention.
- https://www.rockwellautomation.com/global/capabilities/connected-enterprise/overview.page?utm_source=IndustryWeek&utm_medium=Advertising&utm_content=EnewsletterTextAd_DigitalTransformationEBook_December82017&utm_campaign=ConnectedEnterprise_NA_XX_EN_2017
- Learn to Code: Software is literally eating the world. The sooner you learn how to code whether at the application layer, hardware layer, Android, or iOS, the better off you’ll be. The economy is going to continue to change and the jobs of old will no longer be the jobs of new. Don’t become irrelevant! This is going to open so many doors for you if you can develop this skill. IoT: Microsoft IoT Central cloud platform recently came out of a beta program. Other platforms are going to emerge. INTEL has various offerings and is continuing to build up their IoT capabilities. Online Learning: Don’t be afraid to try new ways to learn. Don’t think that the traditional schooling in a classroom is what’s best. Learn by doing – through trial and error. Leverage online resources via YouTube, Udemy, TEDx, among others. You can consume the content at your own pace and it’s ultimately up to you to apply the learning. Manufacturing: Sooner or later, there will be a 3D printer in every household. We’re not there today, but we will get there. 3D printing is becoming increasingly ubiquitous in manufacturing organizations for prototyping and production applications. Start to learn 3D printing technology so you’re ready and able to integrate this technology in your business to produce better quality products and improve customer satisfaction. Cloud Technology: Cloud technology is going to continue to
- Every interaction with a customer is a moment of truth. Given our global addiction to social media, don’t overlook this opportunity to monitor feedback from customers and use it as an opportunity to improve their experience with your product, service, and overall brand. I’ve had my past pains with an automotive company where I had to literally post videos of an issue with the vehicle on YouTube and send to their Customer Service department in order to prove that the issue exists and to get their attention.
- Effective quality management software will provide multiple input methods. This assists with user adoption, which in turn helps advance our efforts with increasing quality culture. Those who have implemented systems before know, if what you have implemented isn’t used, your efforts are rarely effective.
- Develop the new skills
- Intelex’s mission is to help organizations reduce their negative impact on the environment, while ensuring the quality of the products and services exceeds expectations, while ensuring that every team member in the organization goes home safely at the end of the day.
- Ultimately, we want to help change business for good.
- We do this in the core practice areas for Quality Management Systems, Health & Safety Management Systems, Environmental management systems, and Supplier Management.