iiqp fall 2002 newsletter - university of waterloo · 2015. 6. 22. · ultimate customer and the...

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Newsletter Institute for Improvement in Quality and Productivity Newsletter II Q P II Q P Evolving Quality Improvement Strategies G. Dennis Beecroft to page 2... Evolving Quality Improvement Strategies Fall 2002 To better understand where business has been, where it is and where it is likely going from a quality improvement strategy it is useful to refer to David Garvin’s "Four Major Quality Eras" which have been adapted in Figure 1. In Era 1- "Inspection", quality was seen as a problem that could be best solved through detection. The quality role in this initial era fell solely on the inspection department where the product was gauged, measured, graded and sorted into good and bad categories. Problems generated at any point in the process were not detected until the very end of the process. This method was not only very costly but also ineffective in detected unacceptable product, which then led to the "Statistical Quality Control" era. Unfortunately during this second era quality was still viewed as a problem to be solved. The method used was to control the product and to prevent it from being shipped to customers. Inspections were added at the various steps of the process - incoming, in- process and final inspection. The emphasis was on product uniformity and the reduction of inspections by the introduction of statistical techniques. Quality professionals were involved in problem solving and the application of the statistical methods for inspection. The quality responsibility was also transferred to the manufacturing and engineering departments, however the focus and approach was to "control in" quality. The approach was reactive and considered "non-value added" as it focused on the product after it was produced and did not impact the product’s quality. If poor quality was produced the best this approach could offer was to detect it and prevent it from being shipped to the customer. Increased inspection resulted in increased nonconformances being detected, however Dennis is the Managing Director of the IIQP. He has extensive work experience both in industry and at the University of Waterloo. He works with many compa- nies on their quality issues. G. Dennis Beecroft Inside... 4 Upcoming Courses 10 Innovation 11 Recent Presentations Figure 1 - Four Major Quality Eras

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Page 1: IIQP Fall 2002 Newsletter - University of Waterloo · 2015. 6. 22. · ultimate customer and the contribution of all areas, ... improvement program is Six Sigma. The strategy is reducing

NewsletterInstitute for

Improvement inQuality andProductivity

NewsletterIIQ PIIQ P

Evolving Quality Improvement StrategiesG. Dennis Beecroft

to page 2... �Evolving Quality Improvement Strategies�

Fall 2002

To better understand where business hasbeen, where it is and where it is likely goingfrom a quality improvement strategy it isuseful to refer to David Garvin's "Four MajorQuality Eras" which have been adapted inFigure 1. In Era 1- "Inspection", quality wasseen as a problem that could be best solvedthrough detection. The quality role in thisinitial era fell solely on the inspectiondepartment where the product was gauged,measured, graded and sorted into good andbad categories. Problems generated at anypoint in the process were not detected untilthe very end of the process. This methodwas not only very costly but also ineffectivein detected unacceptable product, which

then led to the "Statistical Quality Control"era.

Unfortunately during this second era qualitywas still viewed as a problem to be solved.The method used was to control the productand to prevent it from being shipped tocustomers. Inspections were added at thevarious steps of the process - incoming, in-process and final inspection. The emphasiswas on product uniformity and the reductionof inspections by the introduction ofstatistical techniques. Quality professionalswere involved in problem solving and theapplication of the statistical methods forinspection. The quality responsibility wasalso transferred to the manufacturing andengineering departments, however the focusand approach was to "control in" quality.The approach was reactive and considered"non-value added" as it focused on theproduct after it was produced and did notimpact the product's quality. If poor qualitywas produced the best this approach couldoffer was to detect it and prevent it frombeing shipped to the customer. Increasedinspection resulted in increasednonconformances being detected, however

Dennis is theManaging Directorof the IIQP. He hasextensive workexperience both inindustry and at theUniversity ofWaterloo. He workswith many compa-nies on their qualityissues.

G. Dennis Beecroft

Inside...

4 Upcoming

Courses

10 Innovation

11 Recent

Presentations

Figure 1 - Four Major Quality Eras

Page 2: IIQP Fall 2002 Newsletter - University of Waterloo · 2015. 6. 22. · ultimate customer and the contribution of all areas, ... improvement program is Six Sigma. The strategy is reducing

Published in the Spring, Fall andWinter, the IIQP Newsletter is

the official newsletter of theInstitute for Improvement in

Quality and Productivity at theUniversity of Waterloo. It is

available free of charge.

Editor Jennifer Gaunt

Editorial Board Bovas Abraham

G. Dennis BeecroftJennifer GauntDavid Matthews

ContributorsBovas Abraham

G. Dennis Beecroft

Letters to the EditorWe welcome your comments.

The editor reserves the right toedit all submissions.

I IQPUniversity of Waterloo200 University Ave. W.

Waterloo, ON N2L 3G1 CanadaTel. (519) 888-4593Fax. (519) 746-5524

E-Mail. [email protected]. www.iiqp.uwaterloo.ca

it did not address preventing the defect inthe first place. This unsatisfactory situationled to the third era - "Quality Assurance".

The Quality Assurance era was veryrevolutionary in that the emphasis shiftedfrom trying to detect poor quality to anemphasis of not producing poor quality. Thisshifted the focus from the product beingproduced onto the processes that were usedto produce the products as it wasdetermined that the only way to preventpoor quality was to control the processesused. This phase emphasized thecoordination of all functions throughout thecomplete supply chain from design toultimate customer and the contribution of allareas, particularly design through the use ofsophisticated tools such as Design ofExperiments and Failure Modes and EffectsAnalysis, to prevent quality failures. Qualityimprovement programs were used toaddress quality. The role of the qualityprofessional changed to one of consultant inquality planning, quality measurement andprogram design. The quality responsibilitywas now shared by all functions -engineering, manufacturing, materials andquality with the focus to "build in" quality.

In Era 4 - "Strategic Quality Management"the primary focus was the strategic impacton the organization with emphasis on themarket and customer needs. The methodsemployed were strategic planning, goalsetting and the mobilization of the completeorganization. The quality professional's rolewas goal setting, education and training,and quality improvement consultant. In thisera top management were now included inthe quality process and expected to providestrong leadership. Until now managementhad been able to delegate the qualityresponsibility. The orientation of this era wasto "manage in" quality.

ISO 9000 and Total Quality Management(TQM)ISO 9000 Quality Management System wasissued as an International Standard in 1987.The bulk of the initial registrations were inthe UK. ISO 9000's adoption in North

America was very much slower.Japan's Deming Prize led to thedevelopment of the Malcolm BaldrigeNational Quality Award (MBNQA) in theUSA in 1987. Canada followed the USA bydeveloping its own award, the CanadaAwards for Excellence - Quality (CAE -Quality) in 1988. These national qualityawards became in fact Total QualityManagement models.

Many organizations saw ISO 9000 and TQMas competing programs. However they werevery different in their strategy andapproaches. ISO 9000 focused on 20 veryspecific requirements emphasizingdocumented procedures to demonstratecompliance to the standard. TQM was verymuch broader in its focus and was reallybased on a set of quality managementprinciples. While the Deming Prize, theMalcolm Baldridge and Canada's Qualityaward were slightly different the principleswere mainly the same.

The ISO Task Committee, TC176,addressed the philosophy and strategybehind the development of the ISO series ofstandards in their document ISO/TC 176/SC2/N336. Figure 2 has been adopted fromthis document. They developed a three levelCustomer Needs Hierarchy of QualityAssurance, Quality Management and TQM.Level 1 is the ISO 9001, QualityManagement Requirements, for Level 2 usethe ISO 9004, Quality ManagementGuidelines and Level 3 implement the TQMprinciples using either Malcolm Baldrige orother National Quality model.

Level 1 - Quality Assurance�s goal was toput in place an effective system to produceproducts conforming to customerrequirements. Controlling product qualityand eliminating customer failures and recallsprevents customer dissatisfaction. This isvery much Era 1 and 2 in Garvin's Evolutionof Quality.

Level 2 - Quality Management addressescost, efficiency and effectiveness in meetingcustomer needs. Here the focus is on

I N S T I T U T E F O R I M P R O V E M E N T I N Q U A L I T Y A N D P R O D U C T I V I T Y

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Please Circulate and Recycle

Evolving Quality Improvement Strategies(continued from page 1)

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customer satisfaction by improving the com-plaint process, reducing cycle time andwaste reduction. This process, preventionfocus moved into Era 3.

Level 3 - TQM equates to Era 4 in Garvin'smodel. Strategic Quality Management andTQM both focus on total customer satisfac-tion. This is achieved through employeeinvolvement, long range and strategic focusand customer driven designs.

Strategy UnsuccessfulThe implementation strategy has not beensuccessful for a number of significant rea-sons:

CommunicationThe ISO task committees did not communi-cate the implementation strategy to a verywide audience. Most organizations are com-pletely unaware of the �Customer NeedsHierarchy" that the committee proposed.Even the guideline standard, ISO 9004,received very little attention. Registration isbased on the implementation of ISO 9001 or9002 requirements; therefore ISO 9004 was"not needed". Consultants and trainers, inmost cases, did not promote the use of theguideline standard. As stated earlier TQMwas seen as a competing strategy and notas a necessary step in meeting customerneeds.

CompatibilityISO 9001 and ISO 9004 were not compatible. The language in the

requirements standard was totally differentfrom the guideline standard. It was very diffi-cult to incorporate the ISO 9004 guidelinesinto the organization's quality managementsystem.

Registration vs. Improvement Focus Likely the most significant barrier has beenthe focus of quality systems on registrationrather than using the quality system to driveimprovement in organizations. This registra-tion focus has driven senior management inorganizations to minimize cost, minimizeeffort and delegate their quality responsibili-ty. Organizations using their quality systemwith an improvement focus maximize value,reduce waste and improve product/servicequality through the senior managementteam's involvement.

Quality Improvement: Linking Principles,Strategy and ToolsMost quality improvement efforts, includingTQM, have been unsuccessful. One has toask the question - why? Total QualityManagement for the most part is really a setof principles. Successful quality improve-ment efforts require having a set of princi-ples that drive a strategy and then use theappropriate tools for implementation.

For example, a current successful qualityimprovement program is Six Sigma. Thestrategy is reducing variation, using a disci-plined approach and a good measurementsystem. This is not a new concept or strate-gy however what makes Six Sigma success-

ful is also the principles that drive the strate-gy. Six Sigma principles include: SeniorManagement Driven, Major Projects, Weeksof Training and Dedicated Resources.

2000 Edition of ISO 9001The new ISO 9001:2000 standard includeseight quality management principles:Customer Focused Organization,Leadership, Involvement of People, ProcessApproach, Systems Approach toManagement, Continual Improvement,Factual Approach to Decision Making andMutually Beneficial Supplier Relationships.

The strategy of the revised standard include:Increased Base Requirements, Alignment of9001 and 9004 Documents, Internal AuditTraining includes TQM Principles andRequired Awareness of 9004.

Likely one of the most significant changes isthe move from a 20-element structure to astructure consisting of 4 parts based on aprocess model. The 4 sections are:Management Responsibility, ResourceManagement, Product Realization andMeasuring, Analysis and Improvement.Management Responsibility includes: Policy,Objectives, Planning, Quality ManagementSystem and Management Review. TheResource Management section includes:Human Resources, Information andFacilities. Product Realization includes:Customer Satisfaction, Design, Purchasingand Production. The final section Measuring,Analysis and Improvement includes: Audit,Process Control and ContinualImprovement. The 20 elements from thesecond edition have not been eliminated butrather incorporated into this new processstructure.

ConclusionOrganizations are slowly adopting more pre-ventive strategies and moving away fromearlier inspection focused approaches. Manyare also recognizing that to be successfulwith their quality improvement efforts theyhave to first have a set of principles to drivea strategy then use the appropriate tools toimplement. The 2000 Edition of ISO 9001 isa good example and if implemented correct-ly will provide many additional benefits for itsearlier version. ◆

Figure 2 - Customer Needs Hierarchy

Reference: ISO/TC 176/SC 2/N336

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Course Description

Cost of Quality (COQ) is an excellent continuousimprovement (CI) management tool. COQ can beused effectively to identify, prioritize and then track CIprojects by breaking down quality costs into fourstandard categories: prevention, appraisal, internalfailure, and external failure.

You Will Learn

! To Categorize Elements of COQ

! Select and Track Projects

! Choose Vendors and Price Products Using COQ

! Use Cost of Quality for CI in QS-9000 and ISO9000

Target Audience

! Financial Officers

! Quality Managers and Professionals

! Continuous Improvement Team Leaders

Cost of Quality forContinuous Improvement

T W O D A Y C O U R S E

Course DatesNovember 14-15, 2002

February 5-6, 2003

Cost$790 (+GST)

Cost Includes: tuition, course notes, handouts, lunches,coffee and refreshments.

G. Dennis BeecroftManaging Director, IIQP

Chris FaderEconomics, UW

Jock MacKayConsultant, IIQP

Gary WallerAssociate Provost, Academic andStudent Affairs, UW

Bovas AbrahamDirector, IIQP

Stefan SteinerConsultant, IIQP

UpcomingCourses

Hugh ChipmanConsultant, IIQP

Meet some of our Course Instructors ....

Page 5: IIQP Fall 2002 Newsletter - University of Waterloo · 2015. 6. 22. · ultimate customer and the contribution of all areas, ... improvement program is Six Sigma. The strategy is reducing

Course Description

We are in an era of organizational transformation,when new forms of enterprise are emerging, and oldforms are changing radically. It is essential that highpotential leaders understand these changes and beable to take effective action in the organizations oftoday and tomorrow. As a result of the growing recog-nition of the difficulty to shift to the new organizationalforms, and the challenges encountered in takingaction in the new work context, an introduction tosome of the required individual skills and organiza-tional features are developed in this course

You Will Learn

! Key Features of Emerging Organization Models

! The Major Drivers Behind Development of NewModels

! Assessment of Organizational Change fromTraditional Models to New Models

! Individual Skills and Organizational FeaturesRequired by the New Model

! Power and Conflict in Traditional and In NewOrganizations

Who Should Attend

! Human Resources Personnel

! Training Professionals

! Management Leaders

! Quality Professionals

Managing for the Future

T W O D A Y C O U R S E

Course Description

A designed experiment is a special type of processstudy that involves changing one or more processcharacteristics to investigate their effects.

Design of Experiments (DOE) is one of the continuous improvement tools in Six Sigma and ISO9001:2000. This two day course will teach you how toeffectively use this key methodology to improve quality and reduce costs.

This course will provide you with the right tools tounderstand, plan and execute an experiment. You willalso gain the experience in deciding if experimentation is a good approach to your particularproblem(s).

You Will Learn

! What is an Experiment?

! Experiments vs. Other Data Based Approaches

! Complete Factorial Experiments - looking atseveral factors simultaneously

! Fractional Factorial Designs - efficient ways tolook at many factors

! Taguchi�s Robust Designs to Reduce Variation

! Implementation - Planning and ExecutingExperiments

Design of Experiments

T W O D A Y C O U R S E

Course DatesNovember 7-8, 2002

March 6-7, 2003

Cost$790 (+GST)

Cost Includes: tuition, course notes, handouts, lunches,coffee and refreshments.

Course DatesNovember 26-27, 2002February 25-26, 2003

Cost$790 (+GST)

Cost Includes: tuition, course notes, handouts, lunch,coffee and refreshments.

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Course Description

Effective Problem Solving involves a disciplinedmethodology and the use of appropriate tools. Thisworkshop teaches a 5-step problem solving model -Define Problem, Containment, Determine RootCause, Implement Solution and Verification ofSolution, and tools to be used at the various stepswithin the problem solving process.

You Will Learn

! How to Correctly Define the Problem

! Understand Work as a Process

! Identify Different Types of Problems

! Define Processes Using Process Maps

! Learn the 5-Step Problem Solving Model

! Practice the Use of Problem Solving Tools

Who Should Attend

! Quality Managers and Professionals

! Quality Improvement Team Members

Effective Problem Solving

T W O D A Y C O U R S E

Course Description

Training Effectiveness is a requirement for ISO 9001Quality System Requirements under ElementTraining. This introductory workshop is based on theKirkpatrick Model.

You Will Learn

! Options and Recommendations for DevelopingEvaluations

! Procedures for Measuring Effectiveness

! Roadblocks to Effective Evaluation

! How to Evaluate at the Four Levels (Reaction, Learning, Behaviour and Results) andPros and Cons of Different Approaches

Who Should Attend

! Human Resources Personnel

! Training Professionals

! Management Leaders

! Quality Professionals

Training Effectiveness

O N E D A Y C O U R S E

Course DatesOctober 31, 2002March 20, 2002

Cost$395 (+GST)

Cost Includes: tuition, course notes, handouts, lunch,coffee and refreshments.

Course DatesNovember 21-22, 2002February 19-20, 2003

Cost$790 (+GST)

Cost Includes: tuition, course notes, handouts, lunches,coffee and refreshments.

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Course Description

Firms today are experiencing acute competitive pres-sures for a variety of reasons. Successful firms areemploying better organizational design and improvedmanagement techniques in order to improve perform-ance. It is these firms that recognize that the cre-ation, retention and application of knowledge are nowkey competitive success factors. This growing aware-ness of the value of specialized knowledge and theawareness of knowledge as a distinct factor of pro-duction has led to a new field of study and practice -knowledge management. This one-day course willintroduce the fundamentals of knowledge manage-ment.

You Will Learn

Defining Knowledge Management

! Information vs. Knowledge

! Key Concepts

Explicit and Implicit Organizational Knowledge

! Problems of Knowledge Codification andCoordination

! Mapping and Modeling Knowledge

! Capturing Tacit Knowledge

! Knowledge Transfer

Technologies for Knowledge Management

Practicing Knowledge Management

! Case Studies of KM (Successes and Failures)

Knowledge Management

O N E D A Y C O U R S E

Course Description

This new course is equivalent to a 2 day (14 hours)short course on Statistical Process Control (SPC).This online course is developed for people involved inprocess control and improvement activities. It will provide an understanding of the basic concepts ofVariation, Stability, Capability, etc.

Course Contents

! Understanding Variation

! Charts for X-Bar and R

! Charts for Individuals

! Sampling for Charts

! Process Capability

! Charts for Attribute Data

For More Details Visit:

www.iiqp.uwaterloo.ca/SPC

Registration Information

Use the online form to register. Once the form andpayment is received a user name and password is issued via e-mail.

Statistical Process Control

O N L I N E C O U R S E

Course Available UntilApril 30, 2003

Cost$195 (+GST)

Course DateNovember 1, 2002

April 4, 2002

Cost$395 (+GST)

Cost Includes: tuition, course notes, handouts, lunch,coffee and refreshments.

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Course Description

Statistical Engineering is a combination of statisticalstrategies and tools carefully selected to efficientlysolve chronic problems in high volume manufacturing. Statistical Engineering attempts toexploit observational data from your existing processto �home in� on the root cause of problems.

This two day course covers the guiding strategiesand tools you need to effectively apply this excitingmethodology to improve quality and reduce costs.This course is a requirement for our new StatisticalEngineering certification program, and is also a good compliment to the Design of Experiments two daycourse.

You Will Learn

! Guiding Principles of Statistical Engineering

! Structured Problem Solving Strategy - diagnosticand remedial journeys

! Progressive Search and Families of Variation

! Clue Generation Methods - using observationaldata to efficiently guide improvement efforts

Statistical Engineering

T W O D A Y C O U R S E

Course Description

This course is designed for organizations who arealready registered to ISO 9000 and need to knowmore information on the updated edition.

The Third Edition ISO 9001:2000 has made severalchanges creating a more user friendly standard. Ithas simplified its language, reduced the required documentation, and made several changes based oncustomer and user feedback. This edition will be easier to implement, use and upgrade from the previ-ous editions.

In this updating course, find out about the changesand how it impacts your organization and your regis-tration status.

You Will Learn

! Background on 2000 Edition

! Overview of Changes

! Impact on Current Quality System

! Transition Guidance

! Review of Critical Changes

! How to Implement Changes

! Changes to Auditing

O N E D A Y C O U R S E

Course DateJanuary 15-16, 2003

April 10-11, 2003

Cost$790 (+GST)

Cost Includes: tuition, course notes, handouts, lunches,coffee and refreshments.

Third Edition

ISO 9001:2000An Updating Overview

Course DatesNovember 12, 2002

March 18, 2003

Cost$395 (+GST)

Cost Includes: tuition, course notes, handouts, lunch,coffee and refreshments.

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You may register online or contact the Institute at theaddress below.

Institute for Improvement in Quality and Productivity200 University Ave. W.University of WaterlooWaterloo, Ontario N2L 3G1Tel. (519) 888-4593Fax. (519) 746-5524E-Mail. [email protected]. www.iiqp.uwaterloo.ca/Courses

More Information

! All IIQP courses can be tailored to suit specific needsor applications and presented within your company.Such courses are often developed by modifying orcombining existing courses, depending on therequest.

! Instructors are University of Waterloo faculty and IIQPstaff who are professionals with extensive industrialtraining and consulting experience.

! Refund of fees will be made only if notice ofcancellation is received at least 10 working days priorto the start of the course. Substitution of participantsfrom the same organization is permitted.

! Please add GST to all course fees (GST#: R119 2606 85)

Name:

Position/Company:

Address:

City:

Postal Code: Zip:

Tel:

Fax:

E-Mail:

Please Specifiy Course(s) and Date(s):

! Bill Later ! Cheque / Money Order Enclosed

Course Description

Forecasting plays a central role in business decisionmaking: decisions about investments, resource allo-cations, schedules and inventory levels. This coursegives an overview of useful quantitative forecastingtools and it also covers regression/time series modelsthat incorporate into the forecasts any additionalinformation such as sales promotions and pricereductions. Computer software implementing theseprocedures are demonstrated, and participants havethe opportunity to practice their new skills with theirown data sets.

Course Contents

! Sales forecasting and inventory control

! Quantitative and qualitative forecast approaches

! Exponential smoothing forecast procedures

! Autoregressive models for forecasting

! Forecast models for incorporating the effects ofpromotions

! Forecast evaluation and forecast tracking

! Case studies

! Discussion of computer software

! Hands-on computer lab to practice new skills

Target Audience

! People in marketing, operations management,logistics and inventory control, etc.

! Brand managers.

Forecasting in Quality /Productivity Improvement

T W O D A Y C O U R S E

Course DateMarch 27-28, 2003

Cost$790 (+GST)

Cost Includes: tuition, course notes, handouts, lunches,coffee and refreshments.

How Do I Register?

R E G I S T R A T I O N I N F O

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Bovas Abraham

Innovation

Innovation is a form of change. Innovationis something nobody has thought of before.Peter Drucker defines Innovation as"change that creates a new dimension ofperformance'. Innovation is all about newideas, new products, new processes, newservices and new customers. Businessorganizations, government departments,community groups etc are talking aboutinnovation. The federal government ofCanada claims that it is investing veryheavily into Innovation. In particular IndustryCanada is organizing these 'InnovationSummits' across the country to getfeedback from Canadians regarding theirpriorities for Innovation. They also havepublished two booklets (1.KnowledgeMatters, 2. Achieving Excellence) whichsets some targets for Canada to achieve by2010.

The following excerpt is taken from one ofthe booklets:

The Government of Canada proposes thefollowing goals, targets and federal prioritiesto help more firms develop, adopt andmarket leading-edge innovations.

Goals! Vastly increase public and private

investments in knowledge infrastructureto improve Canada�s R&Dperformance.

! Ensure that a growing number of firmsbenefit from the commercial applicationof knowledge.

Targets! By 2010, rank among the top five

countries in the world in terms of R&Dperformance.

! By 2010, rank among world leaders inthe share of private sector sales fromnew innovations.

! By 2010, raise venture capitalinvestments per capita to prevaillingU.S. levels.

Several articles and books also haveappeared recently discussing Innovation(for example, (1) the monograph HBR onInnovation, Harvard Business School Press,(2) Leading for Innovation by F.Hesselbein, M. Goldsmith, I. Sommerville,published by Jossey-Bass). Some of the

ideas in this article are taken from thearticles in these books.

In this economically changing environment,innovation is crucial for productivityimprovement. Without innovation we arestuck with old products, services andprocesses. Innovation does not happen inisolation. It results from intellectualcreativity, careful management, and intenseefforts.

Innovation begins with the identification of aneed or an opportunity and followed by thecreation of new methods, processes,products or services to satisfy that need. Ifleaders want people to be innovative theyshould find what is important to people andengage them in meaningful issues.

Management has to create an environment,a culture, and a system for creativity andinnovation if they are serious aboutpursuing along this road.The culture must encourage fast approvals,open communication, cooperation insteadof combat across internal units, tolerancefor uncertainty, and faith in people to trynew things.

At the top management level a smallnumber of big projects (in terms ofinvestments in products, technology etc)may be initiated. At the middle managementlevel, a larger set of promising experimentsthat are not yet proven may be tried. At thebase level, many incremental innovations orcontinual improvements (improvement inspeed, create a customer success etc) canbe made.

Product or technological innovation has togo through a series of experiments so thatthe initial idea transforms to a prototype thatcan be tested, modified, and be shown to acustomer for feedback. There has to asystem for these experiments, tests etc.Some times 100's of experiments and testsare necessary making it a very timeconsuming and costly process. In today'seconomy we need a fast cycle time forfeedback from experiments, and tests. Highcost of experimentation has long put adamper on companies' attempts to createnew products. However, new technologiesare making it easier to conduct complexexperiments cheaply and quickly. 1000's ofsimulation experiments can be done veryfast now. For instance crash tests on cars

used to be very time consuming and costly.Now we can do virtual crash tests manytimes at the fraction of a cost.

Sometimes ideas may fail. Leaders shouldhave a healthy attitude towards failure. Ifone can detect failures earlier it would savemoney.

Companies trying to be more innovativeface both managerial and technicalchallenges. Innovative companies aretrying to create new markets by creatingnew products or services for which thereare no competitors. For this a different mind-set is needed.

We can use old ideas as raw material fornew ideas. Encourage good ideas from avariety of sources, keep these ideas alive,and turn promising concepts into realproducts and services. New ideas havecommercial potential but there areuncertainties surrounding them. Newproducts should have customer utility at anattractive price. Business leaders mustchange how they think about innovation andthey must change how their companycultures reflected that thinking.

Partnerships between private enterpriseand public interest that producessustainable change for both sides need tobe fostered. Some organizations aremoving into corporate social innovation.Traditional companies viewed the socialsector as a dumping ground for theirobsolete equipment, tired executives andspare cash. The tide has changed and atleast some companies are viewingcommunity needs as opportunities todevelop ideas and demonstrate businesstechnologies, find and serve new markets;and solve longstanding business problems.

Innovation has lead to sociological changein the past and will continue to do the samein the future. Managing change is achallenge in itself.

If you are interested in learning moreabout Innovation you may participate inthe International Conference on 'Qualityand Innovation' (October 22-23, 2002)organized by the IIQP. For details of theconference, you may visit:www.iiqp.uwaterloo.ca/Events/qi.html. ◆

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Recent PresentationsThe Distribution of the Deficit at Ruin When Claims are Phase Typle

University of WaterlooWaterloo, ON, Canada January 2002 S. Drekic

Seven Habits of Highly Effective Industrial Problem SolversUniversity of AmsterdamAmsterdam, Netherlands January 2002 S. Steiner

Treed Generalized Linear ModelsDepartment of Statistics, Stanford UniversityStanford, CA, USA January 2002Graduate School of Business, University of ChicagoChicago, IL, USA February 2002 H. Chipman

Using Quality Costs to Support Your Quality Improvement ProgramASQ London SectionLondon, ON, Canada February 2002 G.D. Beecroft

Learning Treed Generalized Linear ModelsInterface MeetingMontreal, QC, Canada April 2002 H. Chipman

Understanding VariationUniversity of WaterlooWaterloo, ON, Canada April 2002 S. Steiner

The Distribution of the Time to Ruin for Exponential Claim AmountsUniversity of Western OntarioLondon, ON, Canada April 2002CORS National ConferenceToronto, ON, Canada June 2002 S. Drekic

Overview of Statistical EngineeringWaikato UniversityHamilton, New Zealand June 2002University of AucklandAuckland, New Zealand June 2002Australian Statistical ConferenceCanberra, ACT/NSW, Australia July 2002 S. Steiner

Flexible Modelling of High Throughput Screening DataSpring Research Conference on Statistics in Industry andTechnologyAnn Arbor, MI, USA May 2002 W. Welch

Some Prediction Problems in ReliabilitySpring Research Conference on Statistics in Industry andTechnologyAnn Arbor, MI, USA May 2002 J. Lawless

Mining Functional Process DataSpring Research Conference on Statistics in Industry and Techology Ann Arbor, MI, USA May 2002 H. Chipman

1-Day Workshop on Design and Analysis of Computer Experimentsfor Engineering

Annual Meeting, Statistical Society of CanadaHamilton, ON, Canada May 2002 W. Welch

Hybrid Hierarchical Clustering With Applications to Micorarray DataStatistical Society of Canada Annual MeetingHamilton, ON, Canada May 2002Institute of Mathematical Statistics Annual MeetingBanff, AB, Canada July 2002 H. Chipman

Use of Quality Costs to Link Quality and Strategic BusinessPlanning

7th World Congress for TQMVerona, Italy June 2002 G.D. Beecroft

A Preemptive Resume Queue with an Expiry Time for RetainedService

CORS National ConferenceToronto, ON, Canada June 2002 S. Drekic

Cumulative Processes Related to Event HistoriesFirst Barcelona Workshop on Survival AnalysisBarcelona, Spain June 2002 J. Lawless

Optimal Designs for Model SelectionValencia International Meetings on Bayesian StatisticsPlaya de las Americas, Tenerife June 2002 H. Chipman

High Throughput Screening Data for Drug DiscoveryUniversity of British ColumbiaVancouver, BC, Canada July 2002 W. Welch

Why Statistical Process Control Often FailsCSIROMelbourne, VIC, Australia July 2002 S. Steiner

Evolving Improvement Strategies in North AmericaQuality: Conference on International Experiences, IndustrialAssociation for Region of Udine and University of UdineUdine, Italy July 2002 G.D. Beecroft

Survival Analysis Based on Survey DataInternational Conference on Advances in Survey SamplingOttawa, ON, Canada July 2002 J. Lawless

Dimension Reduction for Multivariate PredictionUniversity of WaterlooWaterloo, ON, Canada July 2002 B. Abraham

Statistical Learning and Data MiningJoint Statistical MeetingsNew York City, NY, USA August 2002 H. Chipman

Page 12: IIQP Fall 2002 Newsletter - University of Waterloo · 2015. 6. 22. · ultimate customer and the contribution of all areas, ... improvement program is Six Sigma. The strategy is reducing

I IQP NewsletterUniversity of Waterloo200 University Ave. W.Waterloo, ON N2L 3G1 Canada

I N S T I T U T E F O R I M P R O V E M E N T I N Q U A L I T Y A N D P R O D U C T I V I T Y

Quality and Innovation are key factors influencing strategic decisions in business, government and other organizations. In thisrapidly changing economic environment, it is essential for organizations to respond effectively to changes in technology, envi-ronment and customer demand with efficient, high quality products and services. Innovation is all about new ideas, new prod-ucts, new processes, new services and new customers.

The objective of this conference is to bring academic researchers, government and business leaders and professionalstogether to discuss and promote ideas in the areas of quality and innovation.

Keynote SpeakersPaul Guild, Mike Lazaridis, David Strangway and Ray Tanguay

www.iiqp.uwaterloo.ca/Events

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Tel. (519) 888-4593 ◆◆ Fax. (519) 746-5524 ◆◆ E-Mail. [email protected]