* conducting effective iso/ts 16949 audits * zero defects in design * keys to the quality tool box * 05-06 Training

Schedule * news from omnex * release of new ppap and spc editions * leaning the organization

2 3 7 9 11 12 13

fall 2005

OMNEX

navigator
a systematic approach to performance management focusing on six fundamental management initiatives. 1.0 Management Systems 2.0 Customer Relationship Management 3.0 Design Excellence 4.0 Operational Excellence 5.0 Business Excellence 6.0 Knowledge Management The six initiatives can be implemented in parallel or serial steps depending on your needs, timetables and the maturity of your processes and systems.
continued on page 5

an integrated management model for sustainable excellence

by Greg Gruska - Senior Consultant, Omnex

uring Dr. W. E d w a r d s Demings life he received international recognition for his contributions in statistics, sampling, economics and the improvement of management. But, at the beginning of a new millenium, can advice given by a man born in the 19th century be applied to the 21st century? I believe that Dr. Deming would say in his basso profundo, What nonsense. Of course not! This is not to say that Dr. Deming would believe that the philosophy and theory he was teaching was invalid in the 21st

century. It is just that he would not expect specific advice given in the 1980s to be applicable in the 2000s without change or modification. Clearly systems for sustainable excellence are constantly evolving as technologies, people, Clearly sysindustries and understanding tems for suschange. So tainable now the quesexcellence tion in your mind should are constantly be, how do you evolving... use this knowledge to develop an organization for sustainable performance excellence that adapts to changing times and needs? The Omnex Integrated Performance Management model is

Greg Gruska Sr. Consultant, Omnex

conducting effective iso/ts 16949:2002 auditsadvanced auditing

SIMPLE: IMPROVE THE AUDITORS TO IMPROVE AUDITS
by Chad Kymal - Chief Technology Officer, Omnex

Chad Kymal CTO, Omnex

The Problem with audits and auditors The IATF and the automotive approach to process auditing have led many to rethink the processes associated with Third Party Audits. Many improvements in auditing practices for third party auditors have resulted because of this emphasis on improving third party audits from the initial readiness review, to the process based audit plan, to even writing up nonconformities.

tors. Omnex did an evaluation of internal auditors and identified a 50% to 60% deficiency rate. The competencies identified by the IATF do not even cover requirements to understand ISO/TS 16949:2002, Customer Specific Requirements, Core Tools or the auditing process described in ISO 19011:2002. These auditor competencies detail what types of knowledge and competency auditors need to have in readiness reviews and when performing Stage II audits.

In Omnex's experience, there are Similarly, organizations perform- deficiencies in internal audits of many ing internal audits need to improve straightforward areas such as audit their overall process for them. The design, basic auditor knowledge, nonPresident of a well-known ISO/TS conformance write ups, customer risk. 16949:2002 registrar mentioned to After an internal audit is perme that they could fail every compaformed, does the organization feel ny that they currently certify to ISO/TS 16949:2002 in the area of they have understood the business areas and/or the "internal audits". processes to What then is wrong The root cause is the improve? Or is the with internal internal audit anothquality of the auditors audits? er exercise identifyAuditor compe- themselves: the knowling the leaves on tencies for ISO/TS edge of the auditors the trees but miss16949:2002 and and the processes the ing the rot in the ISO 9001:2000 tree trunk? In other can be evaluated auditors use. words, detailed using a competenitems like document cies matrix developed by the IATF. control and lack of training records are This matrix has broken down auditor written up, but issues like losing a cuscompetencies into 113 different com- tomer due to repeated problems petency areas for 31 different activi- and/or severe cost issues in new prodties. A third party registrar evaluat- uct launch go undetected? ing its auditor base concluded What is the Root Cause? that there was a 38% deficiency in its third party audiThe root cause is the quality of

auditors themselves: the knowledge of the auditors and the processes the auditors use. Many companies are assigning the job of internal audits to inspectors and technicians. The internal system auditor needs to be a business-oriented senior management member if the audit is to be successfully performed and the results are to have value. So, the first issue is choosing the right person to conduct an audit. Second the auditor needs to have sufficient knowledge. The knowledge can be absorbed in two ways: the background and skills of the auditor and the training the company provides the auditor. As we mentioned earlier, background and skills require that the right person be chosen as an internal auditor. Next, they requires a series of training events conducted over time. See figure 1. Auditor Competencies The IATF identified 113 competencies for third party auditors. 31 activities were broken down into two areasreadiness review and performing the audit. The IATF takes for granted
continued on page 6

zero defects in manufacturing and design

THE MOVEMENT TODAY IS DIFFERENT THAN IT WAS IN THE 1980s
he focus for the last 50 years has been on reducing or eliminating manufacturing defects. Many organizations reached 100ppm to 80 ppm using a combination of different methodologies. Reaching this threshold was the predominant focus of the quality movement from

Customers are demanding perfect parts and have no tolerance for any shipments with even a few bad parts.

Working with our customers, we are finding suppliers who have PPMs less figure 2: zero defects criteria for design than 60 who are also having Of course, mistake proofing with layquality troubles that repeat, a ered audits is better than just conPRISM, or a Yard Hold (product ducting layered audits by themdefects that have gone beyond selves. However, in our work with our assembly into clients it is evident that rejects of TOP FAILURE MODES FAILURE HISTORY (INTERNAL & EXTERNAL) the final prod- small lots occur because of poor uct). An analysis process control issues and also inadof the product equate nonconforming product confailures shows trols. The Omnex methodology for CONTROL PROCESS STANDARDIZATION PFMEA that the number Zero Defects in Manufacturing takes PLAN FLOW of total rejects is both of these issues into account. quite small, how- See Figure 1. However, there is more ever overall there than meets the eye. ERRORLAYERED analysis shows PROOFING PROCESS More important is the lack of AUDIT that there are many of these focus on design. Product Design will small quantity likely become the focus for the qualNONCONFORMITY CONTROL ity movement in the next decade. problems. Product design failures and extra figure 1: process control and nonconforming Product The automo- costs incurred to avoid late launches tive industry has are common occurrences in most the 1950s to the era of QS- reacted to this need with Zero Design Centers. This is why a para9000. Defects Programs that include digm shift needs to take place within The Zero Defects move- Mistake Proofing and Layered Audits. product design. For example, engichanges considered ment of today is very differ- In some of the OEM programs, the neering emphasis is largely on the layered inevitable today should be underent from the "zero defects" movement in the 1980s, audit while others put the focus on where it was just a buzz layered audits with mistake proofing. continued on page 4 word to motivate top management. Many companies PRODUCTS were swept away by the PRODUCT TESTED FAILED System FAILED & charismatic and well organCHARACTERISTICS - Subsystem FUNCTIONS OTHER DESIGN Component ized Philip Crosby and his CONTROLS Crosby School of Quality. Today, the requirements of business and customers are more demanding. What was accepted earlier as good quality is increasingly unacceptable today.

Criteria for First Pass Success in Design Within budget On schedule Meets dimensional targets and all test specifications No Engineering Changes First prototype and first design goes into production Meets Break Even Time - Recover design and development cost targets

DV & PV IMPROVEMENTS AND ERROR-PROOFING

figure 3: standardized design and test development

zero defects in design

continued from page 3

figure 4: simplifying the product development value stream map

stood as "rework" or as "defects". The focus for design should be "first pass success in design. What do Zero Defects require from design? See Figure 2. Zero Defects requires that there be no failures in meeting cost, quality, or timing targeted during project launch. If need be, cost or budget can be exempted from the Zero Defect program during initial launch and then can be added subsequently so the focus can be on quality and timing initially. The concept of poor quality and failures is essential to a Zero Defects program in Design. You cannot improve something when it has not been quantified. For the remainder of the article the focus will be on failures defined as not meeting dimensional targets and all test specifications, having no engineering changes, and first prototypes and first designs that do not go into production. The Zero Defects in Design Methodology as practiced by Omnex is as follows: 1. Collection of Design Failures/Issues by product family 2. Conducting the Standardized Design and Test Development (See Figure 3) a. Mistake proofing design functions b. Verification/Validation Analysis c. Establishing a Bill of Design 3. Defining a design rules process 4. Completing a Value Stream Map (See Figure 4) 5. Evaluating Over Design/Testing or Under Design/Testing Scenarios using Function Mapping In our opinion, these methodologies need to be adopted by organizations that want to focus on reducing costs, satisfying customers, and becoming product leaders. The Zero Defects process is not just trying to fix the failures, it ensures speed, and it also encourages

product leadership due to the focus on function based benchmarking. In the interests of identifying design best practices, Figure 5 shows some of the areas that can be involved. Omnex offers a workshop called Zero Defects Using Layered Process Audits. This course, offered several times in 2005 and 2006, is featured on page 10, in our Training Schedule, in this edition of the Omnex Navigator.

figure 5: design best practices

model for sustainable excellence

continued from page 1

Complete transformation often takes months, in some cases even years; however the results can be massive and demonstrable. Provided you have strong executive level commitment, you will be able to achieve measurable improvements in revenue, quality and costs. To attain sustainable achievements you must be prepared for significant organizational change. Lets look at the first two initiatives mentioned.

1.0 Management Systems

the integrated performance management roadmap

Good organizations possess vision. Great organizations work each day to make their vision a reality. Customer expectations have to be captured, understood, and translated into an executable strategy with well-defined objectives. The organization must ensure that the entire enterprise understands and executes toward those objectives. Implementing the Omnex Management System model will allow you to align corporate vision and objectives with personal objectives, allowing you to quickly and

regularly tune the organization so it can reach the highest levels of performance. We develop a strategy that aligns your corporate mission and vision with the needs and expectations of your customers and other stakeholders and defines your organization's global objectives. Then, Omnex introduces its specially designed process methodology and tools to develop and implement processes that will allow you to meet these global objectives by creating goals and performance metrics for all levels, sites and key individuals. We help executive management determine and measure performance metrics necessary to ensure continued progress toward your goals. This exercise is then repeated to allow for the creation of measurable objectives at the divisional, regional, site, and personal levels. Finally, we assist you in incorporating these objectives and measurables into a unique human resources appraisal system that will ensure that the entire enterprise is always moving in the same direction, no matter how farflung the empire.
continued on page 7

1.0 Management Systems

advanced auditing
continued from page 2

other key areas of auditor knowledge including a basic understanding of ISO/TS 16949:2002, Core Tools, basic auditing process knowledge provided in ISO 19011:2002, and Customer specific requirements. Omnex has added to this matrix and identified another 26 competencies. What if a course were designed for the specific 113 IATF auditing requirements and the 26 Omnex requirements? It is our experience that most people cannot take information and turn it into useable knowledge in a three- or five-day course. Such knowledge takes practice. This is similar to how a good MBA School asks for work experience before accepting students into their program. Similarily, the internal auditor should have the right work experiencewhether it is as a member of senior management, in new product development or through plant floor experience. The first course recommended for someone with little to no ISO/TS experience is an Understanding ISO/TS 16949:2002 class. A few months later, they should take an Internal Auditor course. The Omnex Internal Auditor course is designed to test auditor skills using case studies in ISO/TS 16949:2002. It includes over a 100 examples that test knowledge in auditing. Next, the Internal Auditor course introduces the auditor to the auditing process based on ISO 19011:2002, including the automotive approach to process auditing. Next, Omnex recommends that the internal auditor conduct audits for three to six months before taking the Lead Auditor course. Omnex Redesign of the Auditor Courses Omnex has redesigned its auditor courses based on the IATF auditor competencies. When you study Figure 1,

you may ask, Why not ask the internal auditor to take the more challenging Advanced Auditor course? After all, the Internal Auditor course is already designed to teach most of the competencies identified by the IATF (91%). Well, all the competencies are refreshed and then tested in the Lead Auditor training, either by breakouts, in the exam or by using a performance evaluation. The biggest difference between the Internal Auditor and the Lead Auditor courses is the number of competencies that are verified. The Internal Auditor course only verifies 50% of the competencies in its breakouts, exam and performance evaluation, while the Lead Auditor course verifies 91% of the competencies. (See table 1 on page 8) The Lead Auditor course is one of Omnex's most challenging courses, but at the same time it is the course with consistently the highest student satifaction ratings. The difference between the Lead Auditor and the Advanced Auditor seminars is that the Advanced Auditor is less focused on teaching individual competencies. Auditors should have been trained in the competencies in the Internal or Lead Auditor courses before attending Advanced Auditor training. The Advanced Auditor seminar is where they get to perform and show that they have really under-

stood all of the competencies. Advanced Auditor training tests most of them using real life examples. 10% of them are discussed but not tested because these competencies cannot actually be tested in a breakout or exam. Advanced Auditor Training The Advanced Auditor training is based on my book, Conducting Effective Process-Based Audits: An Auditor Handbook for ISO/TS 16949:2002, published by Paton Press. The book details all 139 competencies identified by Omnex and the IATF. This class videotapes participants performing audits, including process audits and then provides them with feedback. A veteran lead auditor instructor then performs and demonstrates an audit using the "automotive approach to process auditing. Auditors will be asked to apply their skills in readiness review decisions, audit planning, interviewing top management, management review, internal audits, and many other practical settings. On the evening of the second or third day, each participant will have a feedback session on their auditing skills.

continued on page 8

figure 1: what makes a great internal auditor?

model for sustainable excellence

continued from page 5

2.0 Customer Relationship Management

After the organization's mission, values and objectives have been aligned with customer expectations, you need to understand your perceived strengths and weaknesses from your customer's perspective. In

the Omnex Customer Relationship initiative, we show you how to improve and how to better manage your customer interactions by involving the organization in a series of unique exercises that determine what processes are affected by customer expectations, how these processes are performing, and what improvements are key to creating a sustainable customer relationship management effort. When this phase is completed, you will have the skills and processes necessary to become and remain a truly customer-centric organization. Clearly, there are many other areas of the organization that would need to be examined in order to achieve a truly integrated model for sustainable excellence. For more information about the Operational Excellence Model, see page 14. While space limitations preclude us from including the

remaining 4 initiatives, call 734761-4940 or contact sales at sales-us@omnex.com for a white paper detailing all six initiatives in detail.

Mr. Gruska, a Fellow of the American Society for Quality (ASQ), is presently the VP of Product Development for Omnex Systems and a principal consultant in performance excellence and Six Sigma Master Black Belt for Omnex. Mr. Gruska directed and was the primary resource for the development and initial implementations of Comprehensive Process Control Planning ((CP)2). Mr. Gruska is an active/writing member of the QS-MSA and QS-SPC Manual subcommittees of the American Automotive industry's Supplier Quality Requirements Task Force which is part of the international task force governing ISO/TS 16949. Mr. Gruska has advanced degrees in mathematics and engineering from the University of Detroit, MSU and Wayne State University. He was the Deming Memorial Lecturer at the Sheffield Hallam University for the year 2000. He is an ASQcertified Quality Engineer, a licensed Professional Engineer (CA - Quality) and was a member of the Board of Examiners of and Judge for the Michigan Quality Leadership Award (1994-2005). He can be reached at ggruska@omnex.com.

2.0 customer relationship management

keys to the quality tool box

AND THE SOFTWARE TO TAKE YOU THERE
by Don Cherry, Director of Sales and Marketing, Omnex Systems

Don't you just love being in the spotlight? Middle management and quality professionals are blamed for problems with their products and services but are, in most cases, not given the tools to fix them. "Can't you use what you have available now? Use ExcelTM or MS WordTM for the required documentation," cost conscience executives demand. Won't work, not made for the job. It's like using a hammer to unscrew a screw.

Lets face it, top management has a hard time spending for quality systems because in the past there was either no visible short-term return on the investment, the system purchased ended up on the shelf and nobody used it, or it only addressed one area of the quality function. These elements make it hard to tie the financial and non-financial aspects of quality together. Aside from some reports and other paperwork and

Don Cherry Dir. Sales & Mktg. continued on page 12

advanced auditing
continued from page 6

Business Methods and Tools Knowledge The auditor needs to supplement his/her knowledge with two other courses or topics, like the Business Operating System (Quality Operating System) for managing metrics and business practices; or Customer Specific Requirements and Core Tools. What is Missing and How to improve Skills Auditors need to be sequentially exposed to new knowledge and skills. On one hand there are auditing skills, and on the other there is the knowledge of business methods and tools. See Figure 1.

The management representative and/or audit manager should be educated in how to choose good auditors and how to design a good audit system. Are readiness reviews performed in your organization before the internal audit? Should a readiness review be conducted each time a system audit is performed? How much time should be allocated to system audits? Who should be present in an opening meeting and a closing meeting? The management representative and internal audit system should be designed to take into account these questions. Developing skilled internal auditors is important to the business. It is time organizations got the more out Verification of Performance
50% mostly V1 verification 90% (50% V1)

of the internal audits they perform. Omnex will be offering an Advanced Auditor Training course on November 3-4, 2005 in Ann Arbor, Michigan and November 11-12 in San Jose, California. The seminar is based on Chad Kymal's new book, Conducting Effective Process- Based Audits: An Auditor Handbook for ISO/TS 16949:2002.

Training Course
Internal Auditor Lead Auditor Advanced Auditor Core tools Understanding and Auditing

Competencies Trained
91% (126 competencies) 100% (139 competencies)

10% Trained (14 competen- 100% Tested (mostly V2) cies) 100% Core Tools taught and tested Mostly V1

Chad Kymal is an international trainer and consultant and CTO of Omnex Inc. He has recently published a book, The ISO/TS 16949:2002 Implementation Guide, available through Paton Press. Chad's interests include work with large corporations in designing effective Business Management Systems and getting value from implementing effective business strategies. He has served on the Malcolm Baldrige Board of Examiners and as an RABQSA-certified lead auditor. He has a Bachelor's degree in Mechanical Engineering from General Motors Institute, a Master's degree in Industrial and Operations Engineering from the University of Michigan, and an MBA from the University of Michigan. He can be reached at ckymal@omnex.com.

Table 1: Auditor Competencies and Training

new look and content for website

IN SEPTEMBER, WE RE-DESIGNED OUR WEBSITE AND ADDED TO OUR RESOURCE CENTER
f you havent already, you will want to check out the completely re-vamped Omnex.com website. In the new website, you will find the Omnex Resource Center (http://www.omnex.com/email-rc.htm): a nocost section of our website where members can read industry articles, watch recorded webinars, and retrieve the latest copy of the Navigator. In addition to all of the new content, you will find that the new site is easier to navigate and better organized. During the end of the year, we encourage you to celebrate our grand re-opening by paying a visit.

05-06
US schedule november-june ISO 9001:2000 for the Service Sector
Understanding and Implementing ISO 9001:2000
November 14-15, 2005 December 5-6, 2005 May 1-2, 2006

OMNEX

Training Schedule is subject to course load requirements; dates may vary. All courses below are offered from our headquarters in Ann Arbor, Michigan except where specified otherwise.

training
ISO 14001:2004 for Environmental Management
Internal Auditor Training for ISO 14001:2004 with Understanding, Documenting and Implementing
November 9-11, 2005 (San Jose) November 14-16, 2005 December 12-14, 2005 January 30-February 1, 2006 March 6-8, 2006 May 8-10, 2006

>iso-based training
ISO 9001:2000 Lead Auditor Training for the Automotive Sector (ISO/TS 16949:2002)
November 7-11, 2005 December 12-16, 2005 January 23-27, 2006 February 20-24, 2006 February 20-24, 2006 (San Jose) March 13-17, 2006 April 24-28, 2006 May 15-19, 2006 June 12-16, 2006

Lead Auditor Training for ISO 9001:2000

November 7-11, 2005 December 12-16, 2005 January 23-27, 2006 February 20-24, 2006 February 20-24, 2006 (San Jose) March 13-17, 2006 April 24-28, 2006 May 15-19, 2006 June 12-16, 2006

ISO 9001:2000 Internal Auditor Training for the Automotive Sector (ISO/TS 16949:2002)
November 7-9, 2005 December 5-7, 2005 January 23-25, 2006 February 6-8, 2006 February 15-17, 2006 (San Jose) March 6-8, 2006 April 3-5, 2006 May 8-10, 2006 June 12-14, 2006

Lead Auditor Training for ISO 14001:2004

February 20-24, 2006 April 24-28, 2006 June 12-16, 2006

Internal Auditor Training for ISO 9001:2000

November 7-9, 2005 December 5-7, 2005 January 23-25, 2006 February 6-8, 2006 February 15-17, 2006 (San Jose) March 6-8, 2006 April 3-5, 2006 May 8-10, 2006 June 12-14, 2006

ISO 13485:2003 for Medical Devices

Understanding and Implementing ISO 13485:2003
November 7-8, 2005 February 6-7, 2006 April 6-7, 2006 June 7-9, 2006

NE

W!

Customer Specific Requirements and Core Tools - Effect on Process Approach To Auditing
November 10, 2005 December 8, 2005 January 26, 2006 February 9, 2006 March 9, 2006 April 6, 2006 May 11, 2006 June 15, 2006

Internal Auditor Training for ISO 13485:2003

NE

W!

ISO/TS 16949:2002 for Automotive, Semiconductor and Hi Tech Industries

Understanding, Documentation and Implementation of ISO/TS 16949:2002 (Second Edition)

November 17-19, 2005 (San Francisco) December 5-7, 2005 January 23-25, 2006 March 6-8, 2006 May 8-10, 2006

November 14-16, 2005 December 5-7, 2005 February 6-8, 2006 June 7-9, 2006

Advanced Auditor W! Training for ISO NE 9001:2000 and ISO/TS 16949:2002

November 3-4, 2005 November 9-10, 2005 (San Jose) January 30-31, 2006 February 13-14, 2006 (San Jose) April 10-11, 2006

05-06
US schedule november-june OHSAS 18001 Integrating OHSAS 18001, ISO/TS 16949:2002, ISO 14000
December 15-16, 2005

OMNEX

Training Schedule is subject to course load requirements; dates may vary. All courses below are offered from our headquarters in Ann Arbor, Michigan except where specified otherwise.

training
NE W!

>other methologies & core tools training

Layered Process Auditing Zero Defects using Layered Process Audits
November 7-8, 2005 (San Jose) November 10-11, 2005 December 5-6, 2005 March 20-21, 2006 June 15-16, 2006

Statistical Process Control (SPC), Second Edition Workshop

November 28-29, 2005 January 17-18, 2006 March 2-3, 2006 April 12-13, 2006

NE

W!

OHSAS 18001 Overview

November 28, 2005 February 13, 2006 May 3, 2006

Initial Product Approval Process

November 8, 2005 (San Jose)

Integrated ISO 9001, ISO/TS 16949, ISO 14001, and OHSAS 18001 Lead Auditor Training
January 23-27, 2006 June 12-16, 2006

Automotive / Production Core Tools Training Core Tools Training

Take as one course or just take a segment: Day 1: APQP/DFMEA Day 2: MSA Day 3: SPC Day 4: FMEA/Control Plan Day 5: PPAP
February 13-17, 2006 May 15-19, 2006 June 19-23, 2006 (San Jose)

Team Problem Solving Team Problem Solving

March 22-23, 2006 May 1-2, 2006 June 1-2, 2006

QOS QOS Implementation and Improvement for Manufacturing or Service

November 1-2, 2005 January 19-20, 2006 March 30-31, 2006 May 29-30, 2006

Software Training Enterprise-wide Quality Management Software

December 8, 2005

APQP Product Workshop

November 22-23, 2005 (San Jose) March 13-14, 2006

Includes Overview, Program Management, DFMEA, DVP&R and Risk Analysis

Measurement Systems Analysis (MSA) Using Software

December 1-2, 1005 June 15-16, 2006

APQP Manufacturing Workshop

March 15-17, 2006

Includes Process Flow, PFMEA, Control Plan and PPAP

10

10

news from omnex

SHORT FEATURES ON HAPPENINGS IN OMNEX OFFICES WORLDWIDE India
Omnex opened its new India headquarters in Chennai. With space of over 10,000 sqft., this state-of-the-art office building is situated in the IT corridor in Chennai and will host our group companies' operations. Omnex India successfully conducted three Lead Auditor training sessions for ISO 14001:2004 in various parts of the country. The office is currently running the 3rd set of Black Belt training sessions in India and the 8th batch of Green Belt training sessions as public enrollment programs. The well-received weekend training sessions for the above subjects are going currently active. Omnex India has landed a host of new clients during this period, especially in Lean/Six Sigma practices. These clients include Wipro Fluids Ltd., Sigma Group companies, Cooper Bussman India Ltd., Hanil Lear India Ltd., Shinhan Plasto Ltd., Phoenix Lamps Ltd., Shanti Gears Ltd., Hwashin Automotive, Ortel Communications and Bundy India. From the garment industry, the office is currently implementing Lean/Six Sigma for Bodyline SriLanka among others. Specific improvement projects in line with design excellence and operational excellence are currently underway at major Tier 1 and Tier 2 automotive companies in India, such as Gala Precision and Springs Ltd., part of the Gala group, and Class India Ltd., to name a few.

base in the Latin American market, and starting in September we will begin offering Training Courses in the Balance Score Card methodology, which are will be taught by Ing. Arturo Padilla. He has a wide experience in implementing, consulting and training this methodology.

Thailand
Omnex Thailand, our Asian headquarters, continues to support major automotive and engineering clients in Thailand. During this past quarter, the Thai office has several contracts with our clients who have operations in Malaysia, Philippines and Singapore. The ten new projects delivered this past quarter include ISO 9001:2000 and ISO/TS16949:2002 engagements with Siam Metal Technology Co., Ltd. and Pichit Industrial Works Co., Ltd. Omnex Thailand also celebrated the successful implementations of ISO 9001:2000 and ISO/TS 16949:2002 with Coats Thread (Thailand) and Toyoda Machine Works (Thailand). We offered semiconductor-focused training at 1st Silicon Malaysia, Philips Semiconductor Malaysia, and System on Silicon at Singapore, to name a few. We received high scores in the course tutoring and technical content. We have just concluded another set of training, including ISO/TS16949 Lead Auditor training, at Jonhson Electric, Hong Kong.

USA
The American Society for Qualitys (ASQs) Automotive Division awarded the Quality Professional of the Year Award to Chad Kymal, CEO of Omnex, Inc. on June 14, 2005 at the Henry Ford Estate, Dearborn, Michigan. Chad said, "This award is a great honor for me, and reflects my abiding interest in continual improvement and rethinking methods of implementation."

Mexico
In the looking beyond the borders of the Mexican Market, Omnex-GMS is in the process of closing several strategic alliances. Since August, 2005, Omnex has held some training courses for ISO 14001 and ISO 9001 at Lloyd's Germanschier in Lima, Peru. An ISO 14001:2004 training course has been given for those who work in the mining and electronics industries. These alliances will strengthen our trademark in Mexico and South America. We are proud to say that Omnex-GMS has had success making inroads into education and the government, offering consulting and training services that develop and document the administrative systems using ISO 9001. This type of training has been offered in Public Schools and Universities, here in the city of Guadalajara, Jalisco.

Chad Kymal receives Quality Professional of the Year Award from Ann O'Neill of Ford Customer Service, who was the key note speaker for the Recognition Dinner.

Omnex-GMS training in Latin America has been expanding in the past quarter.

We continue expanding and satisfying our client

11

release of new ppap and spc editions

THE BIG THREE RELEASE NEW CORE TOOLS DOCUMENTS
lthough no official date the Second Edition of their SPC has been announced, the Reference manual in August 2005. PPAP Fourth Edition will The foreword of the new manual likely be released in January 2006. states, This second edition was preOrganizations registered to ISO/TS pared to recognize the needs and 16949:2002 who changes within The second edition of supply to the US the automotive Big Three will have the SPC manual takes the industry in SPC three months to techniques implement the user more into the reality that have changes after the of manufacturing... evolved since release date. the original manual was Information presented at the published in 1991. There are some 2005 Autotech Conference indi- major changes between the first edicates that the PPAP Fourth Edition tion and the second edition of the will have 10 major changes, SPC manual. including revisions to reflect techniques found in the Automotive Gregory Gruska, who has Process Approach. In addition, worked on the SPC writing team, there are to be several significant says, The second edition of the SPC changes to the customer submis- manual takes the user more into the sion requirements and PSW forms. reality of manufacturing where speThese changes could have a major cial conditions affecting processes effect on an organizations PPAP are often found. practices. SPC 2nd edition addresses Ford, GM, and DCX released industry misapplication of SPC and

helps people with the use of the correct SPC chart, calculation of control limits, calculation of capability, sampling and sample size. Overall, the new SPC manual considers the strategy for process controlhow organizations can best control their processes. During the fourth quarter of 2005, Omnex is offering two special paid webinars on the changes to PPAP and SPC. These webinars will get participants up to speed on some of the key changes found in the documents, and shared by AIAG at the roll-out. Recordings will also be available for purchase. Write our Training Manager, Becky Alliston at balliston@omnex.com for pricing and dates, or visit our registration form on omnex.com.

keys to the quality tool box

continued from page 7

12

charts that are shown in weekly management review meeting, tying real value to the systems proved difficult. Knowledge and information regarding field failures, returns, re-work, scrap and warranty issues are compiled and stored in different locations and controlled by different people in the organization. There is also the problem of using this information to identify how the problem occurred, what process caused it, what tools are being used to address it, and where the organization should focus its continuous improvement efforts so it won't

happen again. "Okay, if I'm going to do the job, give me the right tools!" Right, thats what Omnex Systems does. Okay, so how can we help you? In the beginning we took feedback from our customers who told us that they needed not just a document control system, or an APQP system or an audit system, but a suite of integrated tools that will allow them to track the quality issues that they face everyday. Make it easy they told us, put it on the web, give me one place where all my quality information can be made available,

and let me choose who can see and use it. Done. The answer is the EwQMS software suite. We are moving forward into version 2 of the suite, and as we do, each module is becoming more powerful, more flexible and more easily integrateable with other systems you already have in place. Plus, we are going to complete a Customer Relationship Manager (CRM) soon. Join these worldclass organizations who have implemented EwQMS: Getrag, HiLex, Mercedes Benz, TRW Automotive and many others. So if you're interested in seeing the solution, give us a call at (734) 668-1000 or visit http://www.omnexsystems.com and we will be glad to show you.

leaning the organization

ean was introduced in the business world with the advent of the book the "Machine that Changed the World" written by James Womack of MIT in 1990. Organizations in the 1980s aggressively adopted lean techniques to remove waste (see Figure 1). By using a combination of techniques borrowed from the Toyota Production Systems and a unique American twist, US companies gave birth to the five day Kaizen, PICOS, or the Lean Workshop. This kind of workshop helped organizations make double digit improvements in floor space, productivity, lead time, and inventory. The results were tremendous, and companies all over the world soon adopted this approach. The Lean Workshop had a tremendous impact on organizations and management. The idea behind it was to take the improvement made in one area of the factory and clone this success throughout the rest of the factory. However, there have been two concerns with this approach: can the savings made in a five day workshop be sustainable, and can isolated changes translate into bottom line savings? Figure 2 shows that inventory rises to the level of unproductivity in an organization. Issues such as equipment breakdown, poor quality, bad setups, absenteeism and the other evils affect the level of inventory in an organization. In the end, Lean slowly strips away the inventory and thus exposes the problems within the manufacturing process. These short- and long-term problems have to be solved for the inventory to stay at lower levels. The questions were asked then, and some of the same questions are being asked again today: Can an organization just remove

workshop are still valid, but they are used in a more sustaining, longer term process. Typically, changing a factory from a traditional layout to a lean layout can take from six months to a year. Integrating the workshop and value stream approach
figure 1 - the seven wastes

inventory and head count and improve without structurally changing anything else? Some inefficiencies may accumulate over time, but if overall structural improvements do not take place in setup time, uptime, quality, etc., then the improvements made may not be sustainable. The second concern has been that if only one part of the factory changes, can it result in overall savings? In other words, since manufacturing is an interconnected system of customers and suppliers, one department feeds another; do inventory savings or throughput improvement in one department make an overall impact to the bottom line?

The workshop and the value stream map can be integrated effectively. Conduct an upfront assessment using a value stream map. Use the map to identify projects that can be conducted in a five day workshop. The five day workshop is a good way to get top management buy-in and change mindsets about what is possible. With an initial success, map out an overall lean strategy with top management. Plan on a sequence of Lean workshops to quickly change the organization. Identify the structural barriers such as maintenance, setup reduction, quality issues etc. for overall lean improvements. Plan an overall improvement project for removing structural barriers such as setup time reduction, maintenance issues, or pull systems. Omnex has identified a six month to 24 month implementation plan structured to take an

To alleviate this concern, a purely American toolthe "Value Stream Map"has been continued on page 14 used with great success. The Omnex approach takes into account time, inventory and other key factors. The value stream studies the overall process from the beginning to the end and strategically tackles improvements that can bring the most benefit to the plant and the customer. All the tech- figure 2 - rocks of unproductivity niques of the five day

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leaning the organization

continued from page 13

organization from its present state to that of a lean organization. We do this sequentially, implementing Error Proofing, SMED, 5S, Supermarket Pull systems, TPM/OEE and other lean tools. Omnex has created 20 days of workshops taught just-in-time before implementation begins. Omnex can implement this at a corporate level, plant level, or a process family level. See the Omnex Lean Model in Figure 3. Lean Six Sigma The final approach is the Lean Six Sigma Approach. In this area, Omnex has successfully integrated Lean and Six Sigma into the Define, Measure, Analyze, Improve, and Control phases. Both approaches are synergistic; Lean focuses on throughput and lead times while Six Sigma focuses on statistical control. The Lean/Six Sigma methodology allows the Six Sigma infrastructure of Champions, Black Belts, and Green Belts to be applied to reducing waste, reducing errors, and increasing speed and throughput. Management identifies projects that are then assigned to Black Belts to solve systematically. Omnex recommends this methodology to organizations that either started out adopting Lean or started out adopting Six Sigma.

Both techniques can only go so far, but when an organization has reached the point of diminishing returns in one technique, it is time to adopt Lean/Six Sigma. The combination of both tools provides significant opportunities for solving key manufacturing and non-manufacturing issues. This is key to O p e r a t i o n a l Excellence (See Figure 4). O p e r a t i o n a l Excellence is one of the cornerstones of the Omnex I n t e g r a t e d Man a g e m e n t Model. For more on the model, see the article on page 1. Omnex can implement this at the corporate level, plant level or a process or family level. See the Omnex Lean Model (Figure 3).

figure 3 - omnex lean model

figure 4: operational excellence model

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