Fall 2001 Navigator

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    InsideFord

    Launches

    Re-vampedQ1 for

    Service

    iting the $2.5 billion dollar bottomline impact of poor quality in 2000,

    Ford Global Facilities, Materials andServices Purchasing has begun the roll out of

    a significantly revamped approach to Q1 forservice suppliers. Focused on customer

    satisfaction, performance and continualimprovement, the new Q1 criteria, while basedon the previous version, incorporate signifi-cant changes.

    Omnex has been participating in the roll outpresentations being given by Ford to the

    targeted suppliers in each of the affectedcommodities. Omnex has provided Ford-approved training to over 5,000 companies

    around the world, in every major automotivemarket and auto industry region, and has beenidentified by Ford as its preferred provider for

    training and assistance to the service supplybase in this effort.

    Targeted suppliers are being selected fromcommodity groups having the greatest impacton customer satisfaction and strategic assess-

    ment. These include Machinery & Equip-ment, Services, Industrial Materials, Construc-

    tion & Building Services, and Transportation.

    C

    Five Steps to

    Transition from

    QS-9000 to TS16949:2002by Chad Kymal, CEOOmnex

    hat is the future of automotivesector-specific quality manage-ment system (QMS) require-

    ments? And what should your organization

    do to plan for the transition you need toseriously consider making in 2002? In

    previous articles,we haveindicated thatTS 16949:2002

    will align withISO 9001:2000.

    Also, theInternational

    AutomotiveTask Force(IATF) addi-tions to TS 16949, with only a few minor

    edits, have been mapped directly to ISO9001:2000s structure. (Go to www.omnex.com/

    news/news.html for more details.)Althoughchanges could still be made, the issueremains whether and when automotivesuppliers should consider making the switch

    from the third edition of QS-9000 to TS16949:2002. There are 5 steps your organi-

    zation can take to use ISO 9001:2000 andTS 16949:1999 and be ready for the future.

    W

    NavigatorNavigator

    continued on page 2

    continued on page 3

    3Biggest

    Challenge for

    QS-9000

    Companies in a

    Nutshell

    52001-2002 Training

    Schedule

    7Enterprise-wide

    Quality Systems:

    The Hitachi Cable

    Story

    B UILDING S UCCESS W ORLDWIDE F A L L 2 0 0 1

    4Omnex News

    OMNEXOMNEX

    by Dave Watkins,PresidentOmnex

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    Five Steps to Transition from QS-9000 to TS 16949:2002 (continued)

    1. Create a Process Map and Understand Customer Require-

    ments

    Before you do anything, study your organizationfollow theproduct development process from product initiation to shippingand interview personnel in the process. Document the product

    realization process in your process map. Identify all the supportprocesses that affect the development and delivery of your product.

    Next, decidewhether theQuality Manage-ment System will

    support onlycustomers or

    whether it willsatisfy the

    requirements ofall the interestedparties of your

    organization. This may result in incorporating many more processes

    to your process map. Lastly, check to see whether the process mapincludes every TS-16949:2002 process. (See Figure 1 Process Map

    below.)

    2. Conduct Gap Analysis of the Existing System

    Now, examine the documentation structure behind your

    organizations QMS. Do you have the seven procedures required byTS-16949:2002? Typically, QS-9000 compa-

    nies will already have these procedures. Nextverify whether you have documents neededby the organization to ensure the effectiveplanning, operation, and control of its

    processes and determine if both the

    operation and control of these processes areeffective. The process map is a good placeto start evaluating your documentation

    needs. Taking these steps should result inthe clarification of your organizationsdocumentation needs for satisfying custom-ers and/or interested parties. Once you have

    taken the steps above, it is now time toconduct an audit or gap analysis to prepare

    for revision of your QS-9000-registeredquality system to conform with TS16949:2002s draft requirements. Imple-

    menting TS 16949 requires two methodolo-gies: Business Operating System (BOS)process, and the Process Review Methodol-

    ogy (PRM).

    3. Implement BOS

    The first step in implementing BOS involvesidentifying customer and interested partyexpectations. In working with our clients,

    our organization uses a process by which we list group and rate

    expectations using Post-It notes. Through these groupings intoCustomer Expectations Categories, we are able to better align the

    customers or interested parties expectations with processes andmetrics. Another key step in this methodology is the use ofalignment charts to link each expectation category to the keyprocesses and process measurables that need to be measured and

    monitored. To effectively satisfy Subclause 5.4.1, PlanningQualityObjectives, of ISO 9001:2000, the organization should use

    benchmarking to determine what its short- and long-term objec-tives should be. With BOS, the organization will be on its way to

    achieving both enterprise improvement and breakthrough processimprovement.

    4. Implement PRM

    PRM is a method of documenting and controlling QMS processesIt takes the processes in the process map and your organizations

    documentation and applies Process Flows (PFs), Process FailureMode and Effects Analyses (PFMEAs) and Control Plans toensure the documentation your organization has is effective andthat its QMS processes are under control. This document links the

    BOS process measurables and the PRM approach.

    5. Implement TS 16949:2002

    One of the greatest challengesand benefitsof implementing

    TS 16949:2002 is that it will require QS-9000-registered organiza-tions to become customer-focused as well as process-focused.

    Becoming customer-focusedrequires an organization to

    implement a methodology like theBOS process, however, it also

    requires an organizational culture

    change. Most important, imple-menting methodologies to becomecustomer-focused and process-

    oriented do not require anystandards to initiate the process, so

    you should start yourorganizations change to the newrequirements now, because theymake business sense in an increas-

    ingly competitive marketplace.

    An Alternative: The Minimalist

    ApproachMake No Change: This is theapproach some organizations maytake. The inputs and outputsbetween two processes need to be

    carefully defined..

    Organizations and auditors needto be careful not to fall into the

    continued on page 3

    The issue remains

    whether and when

    automotive suppliers

    should consider

    making the switch...

    Figure 1: Process Map

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    Transition (continued)

    The Biggest Challenge for QS-9000

    Organizations In a NutshellThe Final Draft International Standard (FDIS) of the ISO/TS16949:2002 is finally available. Thoughthe circulation is limited to a small circle, it is a sign that it will be released to the larger public. What is

    still missing is the Customer-Specific document (GM, Ford and DaimlerChrysler) accompanying theISO/TS 16949:2002 standard.

    In a nutshell, the ISO/TS-16949:2002 is more influenced by the ISO 9001:2000 Standard than any new

    automotive-related change. For the most part, the ISO/TS 16949:1999 has now been faithfully mappedinto the ISO 9001:2000 to create the ISO/TS 16949:2002. Elements influenced by ISO 9001:2000

    include 4.1 General Requirements, 5.2 Customer Focus, 5.4.1 Quality Objectives, 5.5.3 InternalCommunication, 5.6 Management Review, 6.1 Provision of Resources, 6.2 Human Resources, 6.2.2.3

    Training on the Job, 6.2.2.4 Employee Motivation and Empowerment, 7.0 Product Realization, 8.2.1 Customer Satisfaction, 8.2.3 Monitoringand Measurement of Processes, and 8.4 Analysis of Data.(See the Omnex website for two articles on this topic which were published inThe Informed Outlook.)

    The biggest challenge for QS-9000-registered companies is the customer focus and process focus represented by this standard. (See the

    Omnex website or next months Informed Outlook for more information and a table on the subject.)

    Changes

    Among the more significant changes:

    1. In the service supply base, only targeted suppliers in targetedcommodities will be eligible for consideration;

    2. Defined categories of performance will be assessed on a

    regular basis, with published performance ratings;3. Common performance metrics with defined minimum

    acceptable performance standards are being established forongoing supplier performance assessment;

    4. There is a defined evidence package;5. Q1 probation is eliminated;

    6. There is revocation of Q1 for unsatisfactory performance ifnot rectified within a defined time period. Additionally, certain

    defined events will trigger revocation.

    Customer performance ratings will focus on Quality, Timing, Cost/Budget performance; Commercial assessment will focus on Costand Quality.

    These changes and enhancements clearly target and requireperformance, continual improvement and customer satisfaction,

    rather than just achieving conformance to system requirements.

    Ford Q1 (continued)Basic Requirements

    The basic requirements for Q1, while similar to the prior criteria,

    incorporate significant differences:

    1. 3rd Party Certification to ISO-9001 (automatically to ISO-9001:2000 for those not currently registered);

    2. An effective QOS, with QOS metrics;

    3. Performance above minimum acceptance standards;4. Certification to ISO 14001 by 2005

    5. Customer Endorsements from up to 5 Ford customers

    Dave Watkins is President of Omnex, Inc. and a senior trainer/consultant. He has a wide range of international experience focused onenhancing his clients ability to create value for customers and stockhold-

    ers and integrating quality and manufacturing systems to enhanceperformance.

    Look at the Training Schedule in this newsletter and contact us for

    information on training and consulting services available to help your

    company achieve Q1 and a competitive advantage that leads to greater

    growth and profitability.

    See the full article on the Omnex website at

    www.omnex.com/news/news.html.

    trap of the minimalist approach. In effect, no improvement will be

    evident in such a system. More important, the organization will notmake any movement forward in becoming customer- or process-

    focused, which could be detrimental in the long term.

    Chad Kymal is CEO of Omnex, Inc., and a much sought-after interna-

    tional consultant and trainer. He was on the Malcolm Baldrige Board of

    Examiners and has a BSME from General Motors Institute and an MS

    degree in Industrial Operations Engineering and MBA from the Universityof Michigan.

    For the complete article, go to

    www.omnex.com/news/news.html

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    News from Asia

    India

    TELCO, Indias biggest OE manufacturer of heavy vehicles, hasselected Omnex for a large supplier training initiative. Omnex will be

    training around 300 suppliers of TELCO. Omnex India recentlypartnered with Visteon India for their Six Sigma initiatives. ZF Steering

    Gear has purchased and implemented the EwQMS Omnex SystemsSuite through Omnex India. Also, the India office is working with ZFSteering Gear India and Asian PPG Industries Ltd. for TS 16949:2002

    (Second Edition) implementation. Omnex and TUV Rheinland Indiahave announced joint training programs on quality improvement to the

    Indian industry.

    Thailand

    Our Thailand office has recently signed two consulting projects for

    ISO/TS 16949:2002 (Second Edition). It also completed its first ISO17025 implementation and an ISO 9001:2000 implementation forBASFs regional chemical operations.

    Ford Asks Omnex to Present on Ford Q1Omnex has been asked to participate in a series of Q1 for Service roll-out presentations sponsored by the Ford Global Facilities, Materials andServices Purchasing group. Participants include targeted suppliers fromthe Transportation, Construction, Machinery & Equipment, Industrial

    Materials, and Service industries.

    Omnex News

    New Software Releases from Omnex SystemsOmnex Systems recently released new versions of Audit Pro and Docu-

    ment Pro. In addition, the industry has taken notice of the full Enterprise-wide Quality Management System (EwQMSTM). Omnex Systems has

    implemented several suites in the US and abroad. Already, the suite thatdoes it all is doing it worldwide. (See below, and the article about the EwQMS Suiteon page 7.)

    AQuA was written up in the October issue ofQuality Digestin theNewsoftware section. A screenshot was shown, and a description toldabout how it links with the rest of the EwQMS Suite.

    Omnex to Provide Training at National

    Manufacturing Week ConferenceFor the first time, National Manufacturing World will partner with Omnexto provide public training seminars. The conference takes place at

    McCormick Place, Chicago, March 18-22, 2002. Omnexs courses duringthe 5 day conference will include Understanding the ISO-9001:2000International QMS Standard, Six Sigma: An Executive Overview and

    Understanding the ISO-14001 International EMS Standard.

    Online TrainingOmnex is offering its first online courses in collaboration with a leader in

    webconferencing, Virtual WorkshopsTM. Currently Omnex is teaching the

    Understanding ISO 9001:2000 course found in our Training curriculum.

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    Training Schedule is subject to course load requirements; dates may vary. Please contact Omnex forthe most current information and a copy of our catalog, outlining our full course offering.

    ISO/TS 16949

    2 0 0 1 - 2 0 0 2 S C H E D U L E 734.761.4940 WWW.OMNEX.COM

    Understanding,

    Documentation and

    Implementation of

    ISO/TS 16949:2002

    (Second Edition)January 14-16, 2002

    February 6-8, 2002

    March 4-6, 2002

    April 3-6, 2002

    May 6-8, 2002

    June 5-7, 2002July 8-10, 2002

    ISO/TS 16949:2002 fully integrates ISO 9001:2000 and will bethe automotive standard of the future.

    OMNEXOMNEX

    Ford Q1

    OverviewThis one day

    course for Fordsuppliers will provide a

    three hour overview of thenew Ford Q1 and an in-depth

    4 hour look at the 15 partManufacturing Assessment

    Tool. For Ford Q1 Training forService, call Omnex.

    November 21, 2001

    December 10, 2001

    January 9, 2002

    February 6, 2002

    March 6, 2002

    April 3, 2002

    May 8, 2002

    June 5, 2002

    July 10, 2002

    TrainingTrainingRISO/TS 16949:2002

    (Second Edition) Lead

    Auditor Training forAutomotiveJan 28-Feb 1, 2002

    February 18-22,2002

    March 18-22, 2002

    April 15-19, 2002

    May 20-24, 2002

    June 24-28, 2002

    July 22-26, 2002

    ISO/TS 16949:2002

    (Second Edition) Inter-

    nal Auditor Training forAutomotiveJanuary 21-23, 2002

    February 11-13, 2002

    March 13-15, 2002

    April 8-10, 2002

    May 15-17, 2002

    June 17-19, 2002

    July 15-17, 2002

    ISO/TS 16949:2002

    (Second Edition) Transi-

    tion Training for Audi-

    tors of AutomotiveJanuary 17-18, 2002

    February 25-26, 2002

    March 14-15, 2002

    April 11-12, 2002

    May 16-17, 2002

    June 13-14, 2002July 18-19, 2002

    FMEA

    FMEA based onAIAG and Ford Q1

    Requirements

    January 7-8, 2002

    February 4-5, 2002

    March 11-12, 2002

    April 1-2, 2002

    May 13-14, 2002

    June 3-4, 2002

    July 11-12, 2002Study linkages between

    concept, system, design, and

    Process FMEAs.

    Understanding andImplementing ISO/TS16949:2002 (SecondEdition)

    November 19-20, 2001December 17-18, 2001

    If you want to be current on allof the changes in the new ISO/

    TS16949, Omnex is the place

    to go for training!

    QOS

    Implementation

    and Improvement

    for Manufacturing/

    ServiceNovember 8-9, 2001

    January 10-11, 2002

    February 7-8, 2002March 7-8, 2002

    April 4-5, 2002

    May 9-10, 2002

    June 6-7, 2002

    July 11-12, 2002

    Omnex Systems offers

    training in its popular APQPprocess management and

    quality documentation soft-ware.

    AQuA 3 Basic TrainingNovember 12, 2001

    December 3 & 10, 2001

    February 18, 2002

    April 15, 2002

    June 10, 2002

    AQuA 3 WorkshopNovember 13-14, 2001

    December 11-12, 2001

    February 19, 2002

    April 16, 2002

    June 11, 2002

    AQuA

    APQP Implementation

    and ImprovementJanuary 21-25, 2002

    April 29-May3, 2002

    July 29-Aug 2, 2002

    APQP

    RNew!

    New!

    Ford-Approved Automotive

    Training

    RNew!

    ISO/TS 16949:2002 (Second Edition) with ISO 9001:2000

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    ISO 14000

    ISO 9001:2000

    ISO 9001:2000

    Lead AuditorNovember 26-30, 2001

    December 10-14, 2001

    Feb 25-March 1, 2002

    April 22-26, 2002June 17-21, 2002

    ISO 9001:2000

    Internal AuditorDecember 5-7, 2001

    February 11-13, 2002

    April 8-10, 2002

    June 10-12, 2002

    NOW RAB-ACCREDITED!Transition TrainingRAB-APPROVED!

    Taught by a Master Black

    Belt who led Allied Signal

    Safety Systems in their Six

    Sigma implementation. The

    Omnex Six Sigma training

    instructor will show you the

    hands-on techniques used in

    the successful deployment of

    Six Sigma from an insiders

    view.

    With our Black Belt training,

    youll be able to save

    $500,000 - $750,000 per

    Black Belt. And sign up

    today for Omnexs Cham-

    pion Training in Six Sigma!

    Call Omnex for more infor-

    mation on our Six Sigma

    Open Enrollment and

    onsite training being of-

    fered now.

    OMNEXOMNEX

    ISO 14000 Lead AuditorNovember 12-16, 2001

    Jan 28-Feb 1, 2002

    March 18-22, 2002

    May 20-24, 2002

    July 22-26, 2002

    ISO 14000 InternalAuditorJanuary 14-16, 2002

    March 11-13, 2002

    May 13-15, 2002July 15-17, 2002

    Understanding,

    Documenting and

    Implementing ISO

    14000January 7-9, 2002

    March 4-6, 2002

    May 6-8, 2002

    July 8-10, 2002

    TrainingTraining2 0 0 1 - 2 0 0 2 S C H E D U L E 734.761.4940 WWW.OMNEX.COM

    Six Sigma

    An intensive two day auditortransition training course for

    auditors who have passed aninternal or lead auditor course

    This two day course will teach

    ISO 9001:2000 audit trailsscope selection, and audi

    planning. Breakouts an

    graded exercises will test yourskills in the new ISO 9001:2000

    requirements for documentation, management review and

    customer expectations, etc.

    November 15-16, 2001

    December 3-4, 2001

    February 14-15, 2002

    May 9-10, 2002

    ISO/IEC 17025

    This new standard

    replaces lessons learnedfrom implementation of

    the ISO/IEC Guide25:1990 and EN 45001:

    1989 and contains all therequirements that testing

    and calibration laborato-ries should have.

    Laboratory Quality

    SystemsFebruary 14-15,2002

    April 11-12, 2002

    June 20-21, 2002

    Understanding and Implementing ISO 9001:2000December 3-4, 2001

    February 4-5, 2002

    Omnex is offering courses

    on the West Coast. Many ofthe courses you see here are

    also offered with the Semi-conductor Supplement

    included. Call Jim Hooper at408-683-2710 or visit

    www.omnex.com to obtain a

    schedule for San Jose.

    April 1-2, 2002

    June 3-4, 2002

    How to Audit ISO

    9001:2000

    An Auditors Guide

    This is your last chance to

    order the best techniques forvalue-added implementation,

    interpretation, and docu-

    mentation of ISO

    9001:2000 from Omnex.

    Chad Kymals book is

    going to be printed by

    Paton Press. But you can

    order one of the few copies Omnex has left.

    Contact us today to order at a cost of $50.

    734.761.4940 [email protected]

    OMNEX...A world

    ofKnowledge

    California

    Training

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    The Hitachi Cable Storynterprise-wide software solutions are just starting to come

    out on the market. The Omnex Systems EwQMSTM Suitemay be the answer to what companies are looking for

    one package for all of their quality management needs. Compa-nies today are tired of addressing their documentation, auditing

    and measurement systems analysis needs by stringing several

    packages together.. And organizations who have locationsaround the world are looking for Internet-based solutions likeEwQMSTM.

    The EwQMSTM solutionallows the organiza-

    tional entity and thesupply chain to act as acohesive whole. Howdoes this work? Read

    the Hitachi Cable Storybelow. Though this

    implementation is

    in its infancy, thepotential is huge.

    Savings with AQuA

    Hitachi worked withOmnex because of the

    large savings they gotwhile using Omnex

    Systems AQuAsoftware. Hitachi Cablehad been using AQuA software since May, 2000. Greg Walts,Quality Manager at HCI, found AQuA user friendly and

    powerful to use. By the end of 2000, Greg had documentedover $200,000 in savings using AQuA. (Go to

    www.omnexsystems.com to download a presentation from

    HCI on the savings it got from AQuA.)

    Hitachi QMS Strategy

    Hitachi Cable Indiana along with other Hitachi Cable companieswere looking for a system to 1) bring standardization to theirquality systems worldwide, 2) allow communications between

    companies concerning quality matters by using the Internet, and3) help information travel more easily. Also, 4) Hitachi manage-

    ment was seeking an efficient means of obtaining critical

    performance measurements for each operating unit.

    Due to their experience with AQuA, it seemed natural for HCIto expand their involvement with Omnex Systems by implement-ing its EwQMS software. What surprised them was the relativeease with which Omnex Systems got their implementation going.

    While most of the time it takes weeks or months to install newsoftware and convert existing systems, Omnex Systems told

    Greg that the web installation would take one day and that AuditPro and Document Pro would take a day each to get up and

    running. So in a matter of three days the core of the EwQMSsuite would be functional.

    Omnex Systems purchased the server and configured the systemfor Hitachi. Next we carried the software and hardware to

    Hitachi and installed it that day. In two more days, we uploadedthe existing documentation to Document Pro and got Audit Proup and running.

    Omnex delivered on its promise. Greg says, We found the

    software to be very user friendly, with no so-called bugs in thesoftware. The software required very little additional program-ming to meet our companys specific requirements. Basically, the

    software can beloaded off theshelf and itbecomes functiona

    immediately.

    Chad Kymal,

    Omnex SystemsPresident, says, W

    run against compettors that give quote

    where the set-upand implementation

    costs for thesoftware are much

    larger than thequote for thesoftware itself. Onthe other hand,

    Omnex Systems catypically get a company up and running and the documents

    converted in a day. On top of that, we dont need to customizethe programs. Why? Quality and quality systems are Omnexsbusiness already. The flexibility is built in to accommodate mostorganizationss quality systems. We not only accomplished it at

    HCI, we just did it again in a Lear Seating plant last week.

    At HCI Omnexs web-based solution has been a major boon.

    Greg Walts says, Document Pro and Audit Pro are both web-based software packages. Our desire to use the Internet for glob

    communications will make it much easier to achieve our inter-company goals. We envision an audit program that will be used

    by all of the satellite companies at one time. HCI is still in theprocess of implementing Doc Pro, Audit Pro, and BOSS to their

    fullest potential. Their implementation of the AQuA softwarehelped them to realize a savings of $225,000. The initial estima-

    tion of the savings for the suite will definitely be at least that

    much, if not more.

    E

    Enterprise-wide Quality Systems

    For the complete text of Greg Walts interview, go to

    www.omnexsystems.com/news/news.html.

    Take a guided tour of Document Pro and Audit Pro

    online, right at your desk. Call 734.761.4940.

    Figure 1: EwQMSTMSuite

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    Phone: 734.761.4940Fax: 734.761.4966Email: [email protected]

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