ECONOMIC CASE FOR QUALITY
New ASQ Tools Prove Quality Pays
A package of materials proving the dramatic return quality can have on an organization’s bottom line is now available from ASQ.
Visitors to http://www.asq.org/economic_case/index.html can request a package of tools and guidelines for making the economic case for quality with their specific organizations. These materials include:
- A step-by-step guide for ASQ sections that want to organize an economic case program.
- A PowerPoint presentation with instructions for using the materials.
- A telephone script with recommendations for contacting companies to set up face-to-face meetings with executives.
- Outlines and suggestions for those face-to-face meetings with executives, including references to backup materials.
Other materials available at the website include a comprehensive white paper detailing the results of several studies of organizational performance following quality initiatives, case studies of quality improvements in 19 organizations, results of a 2004 survey showing what CEOs think about quality and a Quality Progress article connecting Six Sigma and the bottom line.
The 19 case studies cover six organizations from the service sector, five from manufacturing and four each from healthcare and education.
If you’d like to use the materials and have questions or comments, contact your section leader or ASQ staff: Greg Weiler, 800-248-1946 x8668 or firstname.lastname@example.org; or Kim Hauswirth, 800-248-1946 x7616 or email@example.com.
Medicare Tackles Healthcare Quality
Medicare has launched a billion dollar program to provide consumers with better information on the quality of care they receive and reward providers for the quality of care they deliver.
Reporting, improving and rewarding quality will be at the heart of the quality improvement organizations (QIOs) initiative, a nationwide network of Medicare contractors, including nursing homes, home health agencies, hospitals and physician offices.
Under current contracts, providers in these settings have shown statistically significant improvements by working with QIO assistance, according to the Centers for Medicare & Medi-caid Services (CMMS). These improvements include:
- A 23% reduction in the use of physical restraints and a 38% reduction in the prevalence of pain during long-term care in nursing homes.
- Improvement in management of oral medications by home health agencies helping to reduce patient pain that interfered with activity.
- In hospitals, average improvement of 235% in the timeliness of administration of antibiotics prior to surgery and average im-provement of 210% in the rate and timeliness of screening for influenza and administration of influenza vaccines in patients hospitalized for pneumonia.
Another CMMS program is now encouraging hospitals to survey discharged patients for their perceptions regarding the quality of their care. The 27-question patient satisfaction survey instrument is expected to be available as early as this month.
Standalone Biomed Auditor Certification Offered
ASQ’s Biomedical Division has streamlined the process for ASQ’s certified quality auditor-biomedical examination, now offering it on a standalone basis.
Previously, the certification required candidates to take two exams: the first to become a certified quality auditor and the second to demonstrate proficiency in medical devices.
The first administration of the new exam will be this Oct. 22, with the application deadline Aug. 19.
ECONOMIC CASE FOR QUALITY
U.S. Warranty Spending Increases 4.6% in 2004
Warranty Week says American manufacturers spent nearly $25 billion in 2004 honoring their product warranties, an increase of 4.6% from 2003 levels.
According to the report issued in late April, the highest spenders were General Motors ($4.6 million), Ford Motor Co. ($3.7 million) and Hewlett-Packard ($2.3 million). As a percentage of sales, the highest spenders were Lexmark International (8.2%) and Sun Microsystems Inc. and General Electric Co. (4.8% each).
The biggest improvement over 2004 was at Lexmark International, whose claims rate fell from 9.6% in 2003 to 8.2% in 2004. Other big improvements were seen by Maxtor, Cummins, Navistar and IBM.
The full report is at http://www.warrantyweek.com.
MEASUREMENT AND METROLOGY
CMM User Standard Allows Offline Programming
The recently released Dimensional Measuring Interface Standard (DMIS), an International Organization for Standardization and American National Standards Institute standard, resulted from more than two decades of work by committee members representing coordinate measuring machine (CMM) users, equipment manufacturers and metrology software developers.
DMIS allows the portability and interoperability of inspection part programs between CMM software and is brand and system independent. As a two-way communication protocol, it allows the programming of CMMs to occur offline using computer aided design data for eventual execution on any brand and configuration of CMM.
The standard was recently assigned to Bailey H. Squier and Associates, who will sell it and offer related classes and seminars. In a parallel development, a newly incorporated, not-for-profit corporation has been formed to further dimensional measuring standards through a committee of elected members associated with coordinate metrology.
The new nonprofit group will publish its activities and promote the DMIS on its website at http://www.dmisstandards.org.
Officers of the new DMIS nonprofit are Curtis Brown of Honeywell Federal Manufacturing & Technologies, president; Ray Admire of Lockheed Martin missile and fire control, secretary; and Cory Leland of John Deere, treasurer.
Shingo Prize Honors Lean Manufacturers
The 2005 recipients of the Shingo Prize for Excellence in Manufacturing were honored at an annual conference and awards ceremony in Grand Rapids, MI, in April. They were:
- Antoliv, Tremonton, UT, facility.
- BAE Systems, Fort Wayne, IN, facility.
- Boeing Co., Mesa, AZ, facility.
- Boeing Co., St. Charles, MO, weapons enterprise capability center.
- Boston Scientific, Maple Grove, MN, stent and balloon catheter plant.
- Celestica de Monterrey, Monterrey, Mexico.
- Delphi Ensamble de Cables y Componentes, Guadalupe, Mexico, plant 8400.
- Delphi Packard Electric Systems, Vienna, OH, molding operation.
- Delphi Sistemas de Energia, Saltillo, Mexico, plant 39.
- GDX Automotive, New Haven, MO.
- Hearth & Home Technologies, Lake City, MN.
- Lockheed Martin, Archbald, PA.
- Takata Seat Belts Inc., Agua Prieta, Mexico, operations.
- Takata Seat Belts Inc., Apodaca, Mexico, plant one.
- Takata Seat Belts Inc., Apodaca, Mexico, plant two.
Lean manufacturers in the United States, Canada and Mexico are eligible for the prize. For information, go to http://www.shingoprize.org.
TWO NEW BOOKS FROM QUALITY PRESS Quality Press will release two books in June: Stop Rising Healthcare Costs Using Toyota Lean Production Methods: 38 Steps for Improvement by Robert Chalice and Inside Knowledge: Rediscovering the Source of Performance Improvement by David Fearon and Steven Cavaleri.
IT’S RECERTIFICATION TIME Holders of ASQ certification are reminded to recertify. Reference your wallet card or certificate for your due date. To obtain the recertification journal or recertification information, go to http://www.asq.org, click on the Certification tab and scroll to the bottom of the page. If you are fully retired, you may request certification retirement status. For additional information, e-mail firstname.lastname@example.org.
NAME CHANGE FOR FORUM The Advanced Manufacturing Interest Group has a new name: the Lean Enterprise Forum. Tony Manos is the new chair, replacing founding chair George Alukal.
Name Change for Quality Manager Certification
Acknowledging the changes in the role of quality managers, the ASQ Quality Management Division’s quality manager certification and body of knowledge are being updated.
With the approval of the ASQ Certification Board, the certified quality manager program will become the certified manager of quality/organizational excellence, effective with the March 2006 administration of the test.
Current certified quality managers will retain that title until their time for recertification. After meeting recertification requirements, they will receive a new card and certificate reflecting the change.
The FACE of Quality
Name: Bruce Mathewson.
Residence: Just moved from Woodbridge, Ontario, to Richmond, British Columbia.
Education: Bachelor’s degree in science, York University, Toronto.
Current job: Quality management consultant, including work with church leadership teams to assist in establishing mission, vision and strategic plans, and implementing a quality management system through workshops and follow-up sessions at Tyndale College and Seminary, Toronto; adjunct faculty, Tyndale College and Seminary.
Previous job: Marketing vice president and manager, customer service and support, Kodak Canada Inc.
First experience in quality: Manager, quality services, Kodak processing laboratory and photochemicals.
ASQ activities: Senior Member.
Other activities: Church administrator; corporate member of Yonge Street Mission, Toronto; various church leadership positions.
Personal: Married; two children.
Favorite ways to relax: Motorcycling, music, carpentry, automobile repair, photography and fitness activities.
Quality quote: Quality is applicable to all organizations that expect people to work together for the common good. Teaching a seminary course on administration and planning skills, based on total quality management principles, has demonstrated that quality works well in the organizational part of church life, enhancing the delivery of the ministry and services. This involvement has led to opportunities to consult with churches, teach and apply various aspects of quality.
THE NATIONAL HIGHWAY TRAFFIC SAFETY ADMINISTRATION issued its final tire pressure monitoring rule in early April. The regulation requires all passenger cars to have tire pressure monitoring systems beginning with the 2006 model year. The new rule can be found at http://www.nhtsa.dot.gov/cars/rules/rulings/tpmsfinalrule.6/tpmsfinalrule.6.html.
THE W. EDWARDS DEMING INSTITUTE and Fordham University are seeking papers for their annual international research seminar Feb. 13-14, 2006, in New York City. Proposals should expand the work of W. Edwards Deming or describe applications of Deming’s management ideas in organizations. For consideration, proposals of 200 words or less should be sent to WEDresearch@fordham.edu by this Oct. 5. For more information, e-mail the same address or call 212-636-6219.
THE EUROPEAN NETWORK FOR BUSINESS AND INDUSTRIAL STATISTICS will hold its annual meeting Sept. 14-16 in Newcastle-Upon-Tyne, United Kingdom. For additional information and registration, go to http://www.enbis.org/newcastleconference/registration.html.
ISO 10014, Quality Management-Guidelines for Realizing Financial and Economic Benefits, is a new standard being developed to provide financial arguments to convince top management of the value of introducing or updating a quality management system. Currently in draft international standard form, the guideline will replace an existing technical report.
MORE THAN 1,800 HOSPITALS have already joined the 100K Lives Campaign, according to the Institute for Healthcare Improvement. The campaign aims to enlist up to 2,000 U.S. hospitals in a commitment to implement changes in care proven to prevent avoidable deaths. For more information, go to http://www.ihi.org/ ihi/programs/campaign. A similar program recently began in Canada. For more information, go to http://www.saferhealthcarenow.ca.
THE INTERNATIONAL ORGANIZATION FOR STANDARDIZATION recently welcomed its 150th member, Fasonorm, which is the national standards body of the West African country of Burkina Faso.
THE QUEST FORUM will hold its sixth best practices forum Sept. 13-14 in San Jose, CA. Work group meetings will follow on Sept. 15-16. For registration information, go to http://www.questforum.org/events/event_2005_BPC-SanJose_Hotel.htm. (case sensitive)
THE AUTOMOTIVE INDUSTRY ACTION GROUP has released year 2005 and 2006 modifications to its certification body resource requirements and accreditation body witness audit frequency. QS-9000, the automotive version of ISO 9000, expires Dec. 14, 2006, and will result in many automotive suppliers transitioning to ISO/TS 16949:2002. For details, go to http://www.aiag.org.
THE INSTITUTE FOR SUPPLY MANAGEMENT has issued a call for presentations for its international supply management conference May 7-10, 2006, in Minneapolis. For information, go to http://www.ism.ws/aboutism/mediareleases/pr040105callforpresentations.cfm.
THE SUPPLY-CHAIN COUNCIL released version 7.0 of the Supply-Chain Operations Reference model in April. The version reassesses metrics and best practices. Its level one metrics are hierarchical and associated with performance attributes of reliability, responsiveness, flexibility, cost and assets. For more information, go to http://www.supply-chain.org/index.ww.
THE QFD INSTITUTE says the deadline to apply for the Akao Scholarship for quality function deployment research and education will be July 15. Applicants must be enrolled full or part-time at the time of application in a degreed program at an accredited institution anywhere in the world and must commit to accepting the cash award in person at the institute’s international symposium Sept. 26-30 in Turkey. For more information, go to http://www.qfdi.org/akao_scholarship.htm.
APICS (the Association for Operations Management) has created a new supply chain professional certification for personnel working in supply chain management or enterprise resource planning systems. For information, go to http://www.apics.org/about/pressroom/2005/03-08-2005.htm.
THE SARBANES-OXLEY ACT has had positive impact on capital markets and investor confidence, ac-cording to a written report to the Securities and Exchange Commission from PricewaterhouseCoopers (PwC). PwC says the law shifts governance from the executive suite to the boardroom, makes the auditing profession more able to conduct independent oversight and increases the transparency of financial reporting. For details, go to http://www.pwc.com/extweb/ncpressrelease.nsf/docid/B29A562D6E85CEB585256FDC00721BBE (case sensitive).
Conference Board Reports Negative Indications
The Conference Board’s consumer confidence index declined more than five points, from 103.0 in March to 97.7 in April, its lowest point since November 2004. Its expectations index declined to 87.2, its lowest level in nearly two years.
The board’s U.S. leading index decreased 0.4 points in March after being essentially flat since October 2004. In addition, there have been more weaknesses than strengths among the leading index’s components in recent months.
Positive contributors of interest rate spread and manufacturers’ new orders for consumer goods and materials were more than offset by negative contributors of average weekly initial claims for unemployment insurance, building permits, vendor performance, average weekly manufacturing hours, real money supply, stock prices and manufacturers’ new orders for nondefense capital goods, plus the consumer expectations.
Details of Conference Board economic reports can be found at http://www.conference-board.org/economics.