QUALITY through BOUNDARYLESS COLLABORATION

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QUALITYthroughBOUNDARYLESS COLLABORATION

• DMA Kulasooriya
• Consultant Productivity Quality

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Q

• Quality is the ability of a product to deliver
  expectations of its users

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• Are you happy with the 99 percent
• Quality

35,000 newborn babies dropped by doctors or
nurses each year
200,000 people getting the wrong drug
prescriptions each year
Everyone says NO .!
Three misspelled words on the average page of type
2 million people dying from food poisoning each
year
No electric service for fifteen minutes each day
1.7 million pieces of first-class mail lost each
day
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Quality as an economic and social Solution

• Cost of Quality (COQ) represents an amalgam of
  every effort aimed at avoding ,filtering out or
  dealing with non-quality
• COQ is around 20 30 of the total revenue for
  companies in Sri Lanka.This could have been
  avodied by getting the products or the service
  right first time right
• COQ increases the Cost of Production/ Services,
  Prices go up, Profitability goes down
• Being better is cheaper

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Functional
Fin
Admin
Mfg
Mkgs
Objective is to optimise the function, not to
please the customer
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Process Boundaryless Collaboration
Admin
Mfg
Mkgs
Fin
Process Objectives
Delighted Customer
How do customers go through your organization?
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The end of vertical models

• Process is a chain of logically connected,
  repetive activities that utilizes the
  enterprises resources for the purpose of
  achieving specified and measurable
  results/products for internal or external
  customer
• Change from viewing the company as number of
  departments to focusing on the business processes
  being performed
• Focus on process objectives, not the objectives
  of the departments

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Unmasking the hidden Back Office/ Factory

• Visible office/Factory is the place where people
  deliver defect free Products and services
• Hidden office/Factory is the place where people
  spend thier time on detecting errors and
  correcting them
• In every orginsation, you find both, but in
  different sizes

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• Visible Factory/Back Office

1500 Orders
1,477 orders
Defectives 23
Final Yield 0.98
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• Discover your Hidden Factory/Back Office

0.97Yld
0.98Yld
0.99Yld
1,411 orders
1500 Orders
1,470 orders
1,455 orders
1,411 orders
Rework 30 orders
Rework 15 orders
Rework 44 orders
Rolled Throughput Yield (RTY) 0.98 0.990.97
0.94
Hidden Factory/office Final yield RTY
0.98-0.94 0.40
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Delighting customers by making the process
capable

• Optimisation of business processes by removing
  the hidden Factory/Back office
• By reducing defects
• By reducing the waste
• By reducing cycle time
• Better, Cheaper Faster

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• We had sometimes burnt the toast and then
  scraped it clean, instead of fixing the toaster
• ( McDonald)

Thank you