signs of today - are they?

SIGNS OF TODAY - ARE THEY?

QUALITY

SAFETY

ENVIRONMENT PROTECTION

PROFITABLENESS

Quality -Jankkila2004 -

SOME HISTORY OF QUALITY MANAGMENT

In Japan in the beginning of 1950 – WHY ?

after world war II Japan hade downfall +economical difficulties +

low competitiveness => need to use all recourses efficiently

JUSE ( Japanise Union of Scientists and Engineers + official

organisations + a committee + Japanese enterprices >>

objective to imporove fastly the Japanese production and life quality

E. Deming and J. Juran came from USA to Japan => statistical quality control methods => quality control and quality assurance units in the companies + quality groups and circles in the production process

Kaoru Ishikawa = quality management and techno-social philopsofy

and creativeness in the problem solving


Quality -Jankkila 2004 -

QUALITY”When our customers come back and our products do not”

*Ability of a product to perform its functions = has a direct impact on

product or service performance

*Characteristics of a product or service that satisfy customer’s stated or

implied needs = closely linked to customer value and satisfaction

*It borns in exchange –

*Is produced by core and support processes

* It is evaluatable and measuretable

*One of the marketer’s major positioning tools

Freedom of defects – is it enough ?

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TOTAL QUALITY -Sarv Singh Soin 1998-

An effort of continuous improvement that uses quality tools and systems to manage business, in order to make it more effienct, productive, and succesful, profitable and better prepared for the future

It includes:• traditional product quality, total quality control ( TQC ), • total quality management ( TQM ) programs, • efficiency, productivity,• customer satifaction, customer loyalty, • zero-defect products and services, • good management of key areas; planning, human recource

management )

Quality -Jankkila2004

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BENEFITS OF GOOD TOTAL QUALITY

EFFORT FOR A COMPANY - Sarv Singh Soin 1998-

- Higher employee morale

- More efficient processes

- Higher productivity

- Less fire-fighting > more time for innovations and creativity

- Lower costs

- Zero-defect products and services

- Increasingly customer satisfaction and loyalty

- Increased market share

Higher profits

Quality –Jankkila 2004-

QUALITY DEFINITIONS• Conforming of specification ( Phil Crosby ) Are the specifications the same as the customers do want?

• Fitness for use ( Joseph Juran )

• Must be quality = a set of expective features /• Attractive quality = unexpected quality that goes

beyond the customer’s need ( Noriaki Kano )

• Products and services that meet or exceed customers’ expectations ( Soin )


TOTAL QUALITY –Lillrank, Paul-

PART SYSTEM QUALITY TOTAL

NEED CUSTOMER QALITY SATISFACTION

FUNCTION PLANNING QUALITY STRUCTURE

PLAN PRODUCTION MANUFACT QUALITY URING

QUALITY MANAGEMENT


VIEWS TO QUALITY –Lillrank, Paul

• PRODUCTION QUALITY -faultless product

-measure = quantity of defaults

-improvement = find defaults

• PLANNING QUALITY -maximination of technical characteristics of product

-measure =performance/efficient of product

• CUSTOMER QUALITY -product’s suitability to customer’s needs

-measure = customer satisfaction

• SYSTEM QUALITY -ecological / societal suitability, environmentl quality

- measeure = social and societal relations


TOTAL QUALITY’S CONTRIBUTIONTO PROFITS –Sarv Singh Soin 1998 –Total quality essentials –

CUSTOMER SATISFACTION MARKET

SHAREAND LOYALTYCompeting with the valueHigh relative price is possible

PRICE QUALITY EXTERNALZero defect productsand services, Exiting INTERNAL

products and services COST

PRODUCTIVITY PROFIT

Quality -Jankkila 2004-

QUALITY AND PROFIT –Maaseutukeskusten liitto-

THE MARKET PRICE Profit Profit

Investments

Repearing Investments

faults

Basic costs Basic costs


FORMS OF EXTRAVANGANCE

• Removal and handling of materials, information and half done works

• Seeking and waiting for papers, persons, information• Wrong methods of doing - making same things many

times• Needless work – that the customers do not value and do

not pay for it• Answering to complaints, and repearing faults • Overproduction or premature works• Overstocks or stocks of half done materials and

products

Quality -Jankkila 2004

CHARACTERISTICS OF A QUALITY FIRM-Lecklin Olli -

• Customer centred operations– customer evaluates the quality!• Executive’s commitment to quality management • Personel’s development and improvement• Flexibility and quickness• Future directed operations• Management are based on reaslism• Co-operation – internal and external• Responsibility – societal business and marketing !• Planning is important part of acitivity• Havc objectives and targets • Continuing improvement


QUALITY CYCLE – by Juran

PLAN

IMPROVE ACT

EVALUATE

Quality -Jankkila 2004 -

PRINCIPLES OF QUALITY MANAGEMENT trilogy by Juran

• PLAN – objectives, customers, needs, products

• CONTROL – evaluation, comparison

• IMPROVE – infrastructure, projects, teams, recources, educating,

reviewing

>Identify your customers

>Study the customer’s needs and wants

>Formulate needs into production language

>Develop products and their characteristics meeting customer’s needs

>Develop the process meeting the product developmenand producstion needs

>Test that the process is working

>Improve and change the process meeting according to new operations


QUALITY MANAGEMENT

• Process using methods that support quality management

• Conscious effort to faultness in all activity in the company

• Meet customer’s expectatios and produce right products and services without faults at first time

• Way of management – executives’ commitment and activity !!


COMPONENTS OF TOTAL QUALITY

PROCESS

QUALITY

PRODUCT ENVIRONMENTAL

QUALITY QUALITY

QUALITY OF SOCIAL QUALITY OF

INTERACTIONS FIRM’S TOTAL

ACTIVITY


QUALITY STEPS –Maaseutukeskusten liitto-

SPECIAL QUALITY OF THE

FIRM AND THE PRODUCTS

Competitive factor

NATIONAL STRATEGY

BASED QUALITY

Strategical commitment

LEGISLATION BASED

QUALITY - obligatory


QUALITY MANAGEMENT SYSTEM

• Company’s way of working = quality policy, values• Process including; plan > act > evaluate > improve • System including; objectives –> results – methods

and operations to evaluate and improve operations • systematic steerinf of operations and control• get more efficiency and profits !!• support employees and executive to improve and

develope themself• create uniform models to operations


QUALITY MANAGEMENT SYSTEM

policy and

objectives

Organisation

Processes

Work instructions

Reference material ( laws, rules )

DOKUMENTATION


Quality

CONTENTS OF QUALITY MANAGEMENT SYSTEM

GROUND OF QUALITY OPERATIONS-quality policy, values -core and support operations -strategies, objectives, -measures, controls, work instrustions; -evaluations and reviewing who, when, why, what

CUSTOMERS DEVELOPMENT OF OPERATIONS-needs and expectations -deviations and measeure-co operation with customers -how to prevent and repear faults

SUPPLIES PERSONEL

DOKUMENTATION -responsibility-instructions, reviews -improvement, development-legislation, norms -

ENVIRONMENTAL EMPLOYEE HEALTHYMANAGEMENT SYSTEM AND WORK SECURITY

MANAGEMENT


WHY DOCUMENTATION ?

INTERNAL PROFITS-Identify company’s operations and the way of working

-Compact, uniform, distinct instruction

-Identidy points need to develop

-Helps employe go into the company’s operations

-Means of managing

EXTERNAL PROFITS-Certificate that company wants to evaluate and develop it’s operations

-Certificate of controlled operations and management

-Helps customers to evaluate and control product and company

-Means of marketing

-Certificate of origin


QUALITY SYSTEM STANDARDS – external models to secure the quality

• A logical magement system which gives international strandards to measure on compare own

operations and systems – a framework to the subjects tha the company have to evaluate, measure and improve

• A sertified quality system is an indication that a company’s operations fulfil the requirements set by the standard

• Sertification = external auditing and certification that a company operates as the standard shows

• ISO = International organization for standardization• ISO 9001, gives standards for company’s quality management• system• ISO 14001 – gives standards to environmental management system


STANDARDS

• Every company has an own quality system by standards

• Do not give orders how a company have to operate – gives to company means to evaluate, measure and ensure that the company operates well

• Tells the subjects that have to be in good condition that a customer can be sure that the company can produce servoices and products well and fullfill the customer’s needs and wants

• Make business to business trade easier


ISO 9001 STANDARD requirements

POLICY IMPLEMENTATION EVALUATING IMPROVEMENTS

Objects: How to organize Control How to eliminate

-customers operations Measures reasons for faults

-economy Resporsibilities Internal audits How to prevent the

-environment How to ensure Evaluation of problems

-ethical tasks own know-how own policy How to set new

objectives and targets


BENCHMARKING –Soin-

• A process that allows the firm to measure it’s products, services and processes against the toughest or leadingedge companies

• This external view catalyse internal change in the company and helps the company to be more efficient and competitive

• It is not industrial espionage or something unethical > purpose is to look at processes used in other companies and use this learning to improve company’s own processes.


WHAT CAN BE BENCHMARKED? –Soin-

• PRODUCT DEVELOPMENT PROCESS-understanding and collecting data on customer needs

-design tools and techniques, -process of desing to market …

• MANUFACTURING METHODOLOGIES

-production technologies, automation techniques ..

• PRODUCT DESIGN AND PERFORMANCE

• QUALITY SYSTEMS

• SUPPLY CHAIN MANAGEMENT

• ORDER MANAGEMENT

• SALES AND MARKETING TECHNIQUES


PRODUCT’S LIFE CYCKLE

WASTES RAW MATERIALS-quantity / quality RECYCKLING -rawmaterials-recyckling -varies by branches -products-reduction of waste -package recyckling -half made products

PRODUCTION-many kind of operations

CONSUMPTION home, public.. PACKING

-many kinds of packages

MARKETING AND materials and marks

SELLING varies by products

STOCKING-varies by products

TRANPORTATION -by charasterics of the products


ENVIRONMENTAL PROTECTION

Is steered by => LEGISLATION AND NORMS + MARKET

Development of environmental thinking in companies

Before Present

Production Consumption

Pollutions Product

Controls in points Manage isolated pollutions

Operations afterwards Preventive operations

One cost more Improvement of efficiency

Potentially a risk Potential way for differentiating

Management of product technology Management of processes

Legislation steering Market steering

Must to do Comptetiton factor

Separeted operation One part of company trategy


WHY an environmental management system?

• Responsibility and concern for the environment• Safeguarding the viability of the environment• Competetive advanges or a market requirement• Optimisation of production investments and processes• Product development and product utility• Customers satisfaction and loyalty• Personnel development and resources• Interest party commitment• Correct allocation of recources• Subcontactor operations

SFS


ENVIRONMENTAL MANAGEMENT SYSTEM ISO 14001 requirements

• ÉNVIRONMENTAL POLICY

• PLANNING environmental aspects, legal and other requirements, objectives and

targets, environmental management programmes

• IMPLEMENTATION AND FUNCTIONSstructure and responsibilities, training, awareness and competence, communication, environmental management system dokumentation, document control, operational control, emergency, preparedness and response

• CHECKING AND CORRECTIVE ACTIONSmonitoring and measurement, nonconformance; corrective and preventive actions, records, environmental management system audit

• MANAGEMENT REVIEW


ENVIRONMENTAL MANAGEMENT SYSTEM

CONTINUAL

IMPROVEMENT

COMMITMENT AND

POLICY

REVIEW AND

IMPROVEMENT PLANNING

*environmental aspects

*Laws and requirements

MEASUREMENT *management programmes

AND EVALUATION

IMPLEMENTATION


ENVIRONMENTAL MANAGEMENT SYSTEMAssesment and certifications system ISO 14001 (SFS )

GENERAL INFORMATION

INFORMATION MEETING

COMPANYS APPLICATION TO SFS

SFS EVALUATE THE MATERIAL SUPPLIES

PLANNING MEETING PRE-AUDIT

AT THE

COMPANY

AUDIT OF ENVIRONMENTAL

MANAGEMENT SYSTEM

AUDIT REPORT TO THE COMPANY

SFS CERTIFICATE CORRECTIVE ACTIONS

GRANTED POST AUDIT

FOLLOW UP AUDIT


”ENVINRONMENTAL PRODUCT DEVELOPMENT” IN HUNGARY - excemples

• Increasing the rawmaterial basis of bio – briquette production by using new materials ( sawdust, energy grass, seed cout, hemp )

• Renewable energy from organic waste• Waste management in the wood product industry• Developing wind generators• Comparative test and environmental effect analysis of fuels

made by animal fat and various kind of plant oil• The alteratives of the domestic agricultural machinery• Renawable energy from hazardous organic waste ( pig farms )• Rationalising the logistical costs of the agricultural machinery

( quality of product, production cost, customer service )• Source; Hungarian agriculture engineering 16/2003


CUSTOMER RELATIONSHIP MANAGEMENT –Lancester-Renolds-

= >business strategy that integrates people, processes and technology to

maximaze relationships with the firm’s day- to-day customers,

distribution channel members, internal customers and suppliers.

=> comprehencive approach that provides seamless coordination between

sales, marketing, customer sevice, field suppotand other customer-facing

functions

New customers – New prospects for customers:

=High cost of sales and sales resistance (more marketing communication, special prices, more direct marketing )

Existing customers – Repeat business from happy customers:

= Low cost of sales, economies of scale for the seller, low risk for the buyer

customers are not price sensitive = more profitable customers


VALUES OF AN COUNTRYSIDE ENTERPRICE

• SATISFACTION OF THE CUSTOMER; quality of products and operations

• PROFITABLENESS; livelihood of the entrepreneur, continuity of the firm

• SUSTAINABLE OPERATIONS; taking care of the environment, nature and landscape

• ETHICAL PRODUCTION AND OPERATIONS; wellfare of people and animals, honesty, justness


QUALITY OF THE FOODSTUFF CHAIN IN FINLAND -Maaseutukeskusten liitto -

IN THE YEAR 2006

* Finnish agriculture as a whole has a systmatic quality management system * Foodstuff industry and agriculture trade have verified quality ( ISO 9001 ) and environmental ( ISO 14001 ) management systems * Foodstuff trade has quality- and environmental systems for transportation, stocking and trade * Public organisations ( state, municipalities .. ) place foodstuff quality and it’s development first priority


The quality chain of foodstuffsin Finland Maaseutukeskusten liitto- SATISFIED

CONSUMER

INPUT INDUSTRY FOODSTUFF

AND TRADE TRADE

PLANT DISTRIBUTION

PRODUCTION TRANSPORTATION

FEED INDUSTRY FOODSTUFF

AND TRADE INDUSTRY

FARM PRODUCTION


Quality system in a Finnish farm –Maaseutukeskusten litto-

8. Results of 1. Basis of production production

7. Document 2. Customers management

6. Production 3. Planningmanagement

5. Personel 4. Information utilization


HACCP – Hazard Analysis of Critical Control Points

• Based on foodstuff legislation• Preventive , systemaical• For the behalf of the customer• Company’s own acitivity• For foodstuff companies• Aim to identify and manage risks• Whole process from raw materials to final goods –

all routines also from cleaning to refuse disposal


A PLAN FOR HACCP

• Raw materials supply; commitments of quality of the chain, reception control, storing ..

• Water analysis• Production and storing ( temperature !)• Proofs of raw materials and final products –>

analysis• Plan for refuse disposal and cleaning• Plan for pests destruction• Health care of employees


FOODSTUFFS SAFETY• CHEMICAL RISKS - environmental and natural poisons and toxins - medical remainders ( antibiotics, hormones ) - pesticides - mould toxins - additives

- radioactivity

- NUTRITIONAL RISKS - over using of fat and salt

• MICROBIOLOGICAL RISKS- infection ( echerichia, coli, salmonella )

- toxic symptons, poisoning ( microbe toxins )- viruses ( potassium oxide )


signs of today - are they?

Documents