1 00:00:15,640 --> 00:00:16,560 Hi everybody. Sean here. 2 00:00:16,560 --> 00:00:21,240 Thanks for tuning in today to this episode of Everyday 3 00:00:21,400 --> 00:00:24,720 Quality, a quality systems podcast dedicated to making sure 4 00:00:25,040 --> 00:00:29,280 we get our our quality systems organized, effective, efficient, 5 00:00:29,280 --> 00:00:34,880 useful, all the stuff that we need to be in order to have any 6 00:00:34,880 --> 00:00:40,160 kind of success within our settings could be manufacturing, 7 00:00:40,160 --> 00:00:43,640 could be at home, all of that kind of stuff. 8 00:00:45,240 --> 00:00:46,840 All right, I'm, I'm going to work on the intro. 9 00:00:46,840 --> 00:00:49,720 I promise one day it will be good. 10 00:00:50,920 --> 00:00:53,720 But today, because we are, you know, it's the first episode of 11 00:00:53,720 --> 00:00:58,360 a new year, good opportunity to kind of talk about goals, 12 00:00:58,680 --> 00:01:02,080 objectives, perhaps quality objectives. 13 00:01:02,480 --> 00:01:06,160 Even today we're going to talk about a whole bunch of the the 14 00:01:06,160 --> 00:01:11,640 ISO 6.2 element. That's ISO 2015 at any rates. 15 00:01:11,840 --> 00:01:16,320 It could change in ISO 9120, twenty six. 16 00:01:16,720 --> 00:01:19,080 Who knows what's going to happen with that? 17 00:01:19,960 --> 00:01:22,240 But quality objectives are, are important because they kind of 18 00:01:22,240 --> 00:01:28,160 set what you're going to do, how you're going to monitor your 19 00:01:28,160 --> 00:01:29,400 stuff. And there's tons of different 20 00:01:29,400 --> 00:01:35,000 ways to go about all of this. So let's, let's talk about it. 21 00:01:35,680 --> 00:01:39,720 You know, sometimes you get into a, a, a place where you hear 22 00:01:39,720 --> 00:01:42,600 from upper management that our, our quality objective this year 23 00:01:42,600 --> 00:01:46,800 is continual improvement. And then everybody in the room 24 00:01:46,800 --> 00:01:49,640 is like, oh, fancy. That's, that's bold, that's 25 00:01:49,640 --> 00:01:53,960 visionary, that's ambitious. It doesn't mean anything though. 26 00:01:55,160 --> 00:01:59,160 So that goal isn't, isn't real. You can't do it. 27 00:01:59,280 --> 00:02:02,560 You can't say your goal is continual improvements. 28 00:02:02,600 --> 00:02:06,160 You need something to monitor and check to gauge if you're 29 00:02:06,160 --> 00:02:10,360 successful because it, it also builds engagement having those 30 00:02:10,360 --> 00:02:12,200 kind of numbers. You know, we'll talk a little 31 00:02:12,200 --> 00:02:14,960 bit later about what the, the four disciplines of execution, 32 00:02:15,920 --> 00:02:21,880 all of the David Mann lean kind of daily management stuff does 33 00:02:21,880 --> 00:02:28,440 for, for goal setting, trying to veer away from oh gosh, I'm 34 00:02:28,440 --> 00:02:31,600 blanking on the name Deming Deming. 35 00:02:31,720 --> 00:02:34,640 Golly, I can't believe I I was blanking on Deming of all 36 00:02:34,640 --> 00:02:38,200 people. Deming strongly have wanted to 37 00:02:38,200 --> 00:02:43,720 avoid management by objective. And that's that's one side of 38 00:02:43,720 --> 00:02:46,960 the coin where you're just saying like you have to do XYZ 39 00:02:46,960 --> 00:02:52,160 or you don't get anything. That's ridiculous and should be 40 00:02:52,160 --> 00:02:56,200 avoided at all cost. But quality objectives should be 41 00:02:56,200 --> 00:02:59,440 established to show you how you're doing and adding to that 42 00:02:59,440 --> 00:03:02,800 ability for you to track and trend how your system is 43 00:03:02,920 --> 00:03:07,120 functioning. So if your objectives sound like 44 00:03:07,120 --> 00:03:09,960 something that could be stitched into like a, a motivational 45 00:03:10,360 --> 00:03:14,840 quote that that you hang on a wall, that's that's not good. 46 00:03:15,960 --> 00:03:19,040 It shouldn't be like hang in there as your quality objective. 47 00:03:19,400 --> 00:03:21,480 Little Kitty cat on the the string. 48 00:03:23,080 --> 00:03:25,680 No, that is that is not good. So today we're going to talk 49 00:03:25,680 --> 00:03:30,920 about how we turn those quality objectives from poor posters on 50 00:03:30,920 --> 00:03:38,560 walls into actual goals that move work, change morale and get 51 00:03:38,880 --> 00:03:43,200 good results. So let's talk about how we we 52 00:03:43,200 --> 00:03:47,040 sometimes see all of these quality objectives, why they 53 00:03:47,040 --> 00:03:49,200 usually fall flat. You know, most quality 54 00:03:49,200 --> 00:03:53,800 objectives fail for one simple reason, and that's they satisfy 55 00:03:53,800 --> 00:03:58,560 a clause of the objective of the, the standard rather, and 56 00:03:58,560 --> 00:04:02,320 that's not ideal. You know, if we write down our 57 00:04:02,440 --> 00:04:07,360 our our objectives for the year to hit what 6.2 wants. 58 00:04:07,360 --> 00:04:10,040 Let's read through some elements of 6.2. 59 00:04:11,040 --> 00:04:15,280 The organization shall establish quality objectives at relevant 60 00:04:15,440 --> 00:04:19,200 functions, levels, and processes needed for the quality 61 00:04:19,200 --> 00:04:21,680 management system. Cool. 62 00:04:22,160 --> 00:04:25,240 I like to set department level goals. 63 00:04:25,600 --> 00:04:27,400 That's great. You can set corporate level 64 00:04:27,400 --> 00:04:30,320 goals as well. But if you monitor your 65 00:04:30,320 --> 00:04:32,480 departments, your functions, make sure that there's some 66 00:04:32,480 --> 00:04:37,080 interconnectivity there because all of our processes interact to 67 00:04:37,080 --> 00:04:39,800 various levels. If you make sure all of that is 68 00:04:39,800 --> 00:04:44,000 written, then your organization should reap the results of all 69 00:04:44,000 --> 00:04:46,880 of that success that you're going to get, right. 70 00:04:46,880 --> 00:04:50,400 But we aren't going to write down goals just because it says 71 00:04:50,400 --> 00:04:54,040 we need relevant functions to have their goals and objectives 72 00:04:54,240 --> 00:04:56,280 written out. That's silly. 73 00:04:56,440 --> 00:05:02,520 If your production team has a goal of like, let's say hitting 74 00:05:02,760 --> 00:05:07,960 85% OEE, that's great. That's unachievable. 75 00:05:08,880 --> 00:05:13,120 That cannot be done in most manufacturing environments. 76 00:05:14,800 --> 00:05:18,960 So in that point, you aren't gauging success of your 77 00:05:18,960 --> 00:05:22,480 operation, you really are just writing something down to meet 78 00:05:22,640 --> 00:05:25,160 the first sentence of this clause. 79 00:05:26,440 --> 00:05:28,760 If you read a little further, we've got some more stuff to go 80 00:05:28,760 --> 00:05:31,960 through. The quality objectives shall be 81 00:05:31,960 --> 00:05:33,320 consistent with the quality policy. 82 00:05:34,280 --> 00:05:36,480 Quality policies are all the same wherever you go. 83 00:05:36,520 --> 00:05:40,840 So continual improvement processes, all of that, they 84 00:05:40,840 --> 00:05:46,440 need to be measurable. So yes, you can measure 85%. 85 00:05:46,440 --> 00:05:49,040 OEE, you're not going to get it though. 86 00:05:50,280 --> 00:05:54,840 It's going to take into account applicable requirements, which 87 00:05:54,840 --> 00:05:56,200 is great. So you got to make sure that 88 00:05:56,200 --> 00:05:59,120 your customers, your regulatory agencies, your internal 89 00:05:59,120 --> 00:06:02,120 stakeholders, external stakeholders, all of that, all 90 00:06:02,120 --> 00:06:09,440 of their requirements are not ignored while setting goals have 91 00:06:09,440 --> 00:06:13,120 to be relevant to conformity of products and services and to the 92 00:06:13,120 --> 00:06:18,200 enhancement of customer satisfaction. 85% OEE in a 93 00:06:18,200 --> 00:06:21,600 production facility would be phenomenal. 94 00:06:21,600 --> 00:06:24,200 Your customers are going to have a great time with that. 95 00:06:24,440 --> 00:06:28,480 Again, not practical. They need to be monitored. 96 00:06:28,840 --> 00:06:32,440 So regular review of these things be communicated, regular 97 00:06:33,320 --> 00:06:38,880 reports on these objectives and be updated as appropriate. 85% 98 00:06:38,880 --> 00:06:44,440 OEE in 2020 would have been laughable. 99 00:06:45,160 --> 00:06:49,360 Nobody was going to do that. It's absolutely impossible. 85% 100 00:06:49,360 --> 00:06:54,000 OEE in the 70s, probably more likely. 101 00:06:56,440 --> 00:06:58,480 Machines were different back then. 102 00:06:59,680 --> 00:07:02,800 And so you need to update them as appropriate. 103 00:07:03,640 --> 00:07:06,080 And of course, the organization shall maintain documented 104 00:07:06,080 --> 00:07:07,800 information on the quality objectives. 105 00:07:08,120 --> 00:07:10,320 So you're going to write them down, which is fantastic. 106 00:07:10,760 --> 00:07:14,800 All right, that's our big high level overview of that. 107 00:07:15,520 --> 00:07:20,400 And if you're writing your objectives strictly to meet that 108 00:07:20,400 --> 00:07:25,000 clause, nobody's going to be using these objectives properly. 109 00:07:25,720 --> 00:07:31,240 So some, some common issues that we may see when when writing 110 00:07:31,400 --> 00:07:34,680 these kind of clauses, you know, you've got super vague wording 111 00:07:35,160 --> 00:07:38,680 like if your goal is improve quality or enhance customer 112 00:07:38,680 --> 00:07:43,400 satisfaction, reduce defects, even that's not measurable. 113 00:07:44,520 --> 00:07:50,560 It's tough to communicate that there's no ownership of goals 114 00:07:51,080 --> 00:07:53,000 sometimes when we're when we're writing them out. 115 00:07:53,320 --> 00:07:56,200 That's why I really like department level because then 116 00:07:56,200 --> 00:07:59,800 you have the most accountable person there is the head of the 117 00:07:59,800 --> 00:08:02,520 department. They're going to be responsible. 118 00:08:02,520 --> 00:08:05,680 They're going to take that ownership of the objective. 119 00:08:06,840 --> 00:08:10,720 If you have the entire organization's goal as like 120 00:08:10,760 --> 00:08:15,000 Rmas, as 2% of sales, then nobody really owns that. 121 00:08:16,160 --> 00:08:18,160 It's like, OK, we're all going to work together here. 122 00:08:18,200 --> 00:08:21,360 But if nobody's really driving change, nobody's really driving 123 00:08:21,800 --> 00:08:26,640 these improvement efforts, nobody takes the ownership of 124 00:08:26,640 --> 00:08:28,640 these improvement efforts, nobody's going to do it. 125 00:08:29,720 --> 00:08:34,240 And that's because we're all so busy with Whirlwind's day-to-day 126 00:08:34,240 --> 00:08:38,480 kind of activities. These objectives, they really 127 00:08:38,480 --> 00:08:45,760 serve as your maybe not a wildly important goal, but that's more 128 00:08:45,760 --> 00:08:49,560 of the the high level kind of goal that you're setting. 129 00:08:50,040 --> 00:08:53,280 Yeah, everybody's objective is get through the day. 130 00:08:53,640 --> 00:08:55,920 That's simple firefight again tomorrow. 131 00:08:58,120 --> 00:09:01,240 But if you, if you have somebody actually assigned to owning 132 00:09:01,240 --> 00:09:05,520 these things, actually assigned to tracking, improving and 133 00:09:05,520 --> 00:09:10,040 coming up with plans to address quality objectives, you're 134 00:09:10,040 --> 00:09:17,080 probably going to achieve them. Another common trap or pitfall 135 00:09:18,320 --> 00:09:22,120 they don't connect to where everyone can feel it. 136 00:09:23,720 --> 00:09:26,960 You know the objective exists, but nobody is impacted by it. 137 00:09:27,160 --> 00:09:33,360 So maybe your goal is 76% on time delivery and you regularly 138 00:09:33,360 --> 00:09:37,120 get 74. Nobody's really impacted by 139 00:09:37,120 --> 00:09:44,600 that. Maybe your goal is we increase 140 00:09:45,040 --> 00:09:50,360 or get a, a revenue goal, right? Your shuffler isn't really 141 00:09:50,360 --> 00:09:55,040 impacted by a revenue goal. Nobody cares how much money the 142 00:09:55,040 --> 00:09:56,720 product is going to be bringing in. 143 00:09:57,120 --> 00:09:59,520 People care how much product you're going to make. 144 00:10:00,640 --> 00:10:03,120 People care about how much time they're going to need to spend 145 00:10:03,240 --> 00:10:08,960 building something, creating a an element of the the whole 146 00:10:08,960 --> 00:10:11,160 assembly that they're going to be working on. 147 00:10:12,920 --> 00:10:17,440 Money is intangible, but actual time spent making product they 148 00:10:17,440 --> 00:10:21,640 can feel. So increase sales quantity would 149 00:10:21,640 --> 00:10:25,920 be a a good tangible goal. We want to sell 50% more 150 00:10:25,920 --> 00:10:30,760 product. We want to sell 18 more units 151 00:10:30,760 --> 00:10:34,160 every week. That is something that everybody 152 00:10:34,160 --> 00:10:37,720 can connect to, feel it's tangible, it's real, and it 153 00:10:37,720 --> 00:10:40,360 impacts them. You know, a business's sales 154 00:10:40,360 --> 00:10:43,280 goal really doesn't impact most of the organization. 155 00:10:43,280 --> 00:10:47,480 Like, oh, we're going to have 18 million in revenue next month, 156 00:10:48,120 --> 00:10:50,920 OK, cool. I can't fathom what 18,000,000 157 00:10:50,920 --> 00:10:53,120 is. That's wild, no. 158 00:10:55,480 --> 00:10:59,000 And then another common trap is the lack of a review. 159 00:11:00,040 --> 00:11:04,920 You know, we have in ISO, it says monitored and communicated. 160 00:11:06,320 --> 00:11:09,640 So if we aren't looking at these things, if we aren't talking 161 00:11:09,640 --> 00:11:16,000 about them, if we aren't making the results known, then nobody 162 00:11:16,000 --> 00:11:17,680 cares. Nobody knows that there's a 163 00:11:17,680 --> 00:11:20,720 problem. So without that review, you 164 00:11:20,720 --> 00:11:23,440 know, you, you've got your posters on the wall, everything 165 00:11:23,440 --> 00:11:28,880 gets your objective is set. We've got them put on posters 166 00:11:29,120 --> 00:11:34,360 everywhere and we say, yes, we're going to meet our goal of 167 00:11:34,360 --> 00:11:39,040 XYZ by 123. Fantastic, great. 168 00:11:39,600 --> 00:11:48,040 However, it doesn't help anybody actually achieve the result. 169 00:11:48,880 --> 00:11:51,720 And so those are four kind of big ones. 170 00:11:52,080 --> 00:11:56,760 Bad wording of your objective, no clear ownership of what that 171 00:11:56,760 --> 00:12:01,200 objective is, and no connection to the people impacted by the 172 00:12:01,200 --> 00:12:04,080 objective and not properly reviewing it. 173 00:12:05,040 --> 00:12:09,400 An objective that no one checks on is just a wish with a 174 00:12:09,400 --> 00:12:12,720 spreadsheet. That's all. 175 00:12:13,040 --> 00:12:15,240 If you aren't really doing anything with it, what's the 176 00:12:15,240 --> 00:12:17,080 point? That's just one more busy work 177 00:12:17,080 --> 00:12:21,920 activity. So what do we do? 178 00:12:22,920 --> 00:12:28,080 ISO, you know, at the the end of the day, it doesn't want fancy 179 00:12:28,080 --> 00:12:32,040 objectives, It wants organizations to have useful 180 00:12:32,360 --> 00:12:34,720 objectives. Objectives. 181 00:12:34,840 --> 00:12:36,200 I felt like I said that word weird. 182 00:12:36,760 --> 00:12:42,280 So we don't need to build motivational statements. 183 00:12:42,280 --> 00:12:47,840 We don't need to build poetry into our this whole system. 184 00:12:48,240 --> 00:12:54,360 We need to make sure that our objectives are relevant, they're 185 00:12:54,360 --> 00:12:58,400 measurable, they fit our quality policy, we communicate them, and 186 00:12:58,400 --> 00:13:00,120 we monitor them. That's it. 187 00:13:00,840 --> 00:13:03,840 There's no fancy schmancy buzzwords. 188 00:13:03,840 --> 00:13:08,560 There's nothing too insane that we have to do with these things. 189 00:13:09,640 --> 00:13:13,000 Your objective strictly has to answer the question, what 190 00:13:13,000 --> 00:13:18,880 changes because of this number? Then if it can answer that 191 00:13:18,880 --> 00:13:22,280 question, what you're actually monitoring, that objective is 192 00:13:22,280 --> 00:13:25,680 working, it's effective, it's useful, That's all that it has 193 00:13:25,680 --> 00:13:28,720 to really do. So maybe your objective that you 194 00:13:28,720 --> 00:13:34,560 have written down is 60% total employee engagement cap. 195 00:13:35,000 --> 00:13:38,080 So if you have T EE as the thing that you're going to monitor, 196 00:13:38,080 --> 00:13:40,960 you're going to report on it every month, every management 197 00:13:40,960 --> 00:13:43,240 review, you're going to make sure that people are aware of 198 00:13:43,240 --> 00:13:46,400 this. You're going to gauge it by 199 00:13:46,400 --> 00:13:50,560 participation in corrective action events, participation in 200 00:13:50,600 --> 00:13:55,800 GEMBA walks, participation in Kaizen, number of submissions to 201 00:13:55,800 --> 00:13:58,480 any kind of continual improvement or a safety program, 202 00:13:58,920 --> 00:14:01,240 how many people are actually engaged with the system. 203 00:14:01,680 --> 00:14:05,280 Make that how you're you're monitoring total employee 204 00:14:05,280 --> 00:14:09,360 engagement. Then there's there's an HR term 205 00:14:09,360 --> 00:14:12,400 for engagement as well, a definition for engagement. 206 00:14:12,480 --> 00:14:14,720 We don't care about that. We're just going to say how many 207 00:14:14,720 --> 00:14:19,000 people are interacting with the system positively. 208 00:14:20,160 --> 00:14:24,800 So get your percentage of the workforce that's participating 209 00:14:24,800 --> 00:14:30,120 in that and then show it off, right? 210 00:14:30,120 --> 00:14:32,600 So why is that relevant? Because it's going to show 211 00:14:32,600 --> 00:14:35,440 participation in the system. Is it measurable? 212 00:14:35,440 --> 00:14:36,600 Yes. You're going to see how many 213 00:14:36,600 --> 00:14:40,200 people are actually participating in the events and 214 00:14:40,200 --> 00:14:44,800 activities of the system as a whole consistent with policy. 215 00:14:45,280 --> 00:14:47,600 You've got continual improvement in that policy. 216 00:14:47,840 --> 00:14:50,360 You're guaranteed to have continual improvement as part of 217 00:14:50,360 --> 00:14:52,120 your quality policy. So put that in there. 218 00:14:52,640 --> 00:14:55,200 It's consistent. You're going to communicate it 219 00:14:55,760 --> 00:14:59,920 by making sure that your results are posted publicly as often as 220 00:14:59,920 --> 00:15:03,480 possible and monitored. You're constantly going to be 221 00:15:03,480 --> 00:15:06,480 tracking who is taking part in these activities. 222 00:15:07,280 --> 00:15:10,240 That's your quality objective. We've got all of the big hitters 223 00:15:10,560 --> 00:15:13,400 right there. And then once you know how many 224 00:15:13,400 --> 00:15:15,960 people are actually participating in the system, you 225 00:15:15,960 --> 00:15:20,760 can identify what's portions. So you've got your Pareto of 226 00:15:20,760 --> 00:15:24,960 like how are they participating, which is fantastic and going to 227 00:15:24,960 --> 00:15:27,680 be very helpful. And then you can start tackling 228 00:15:27,680 --> 00:15:29,680 those folks that maybe aren't participating. 229 00:15:30,040 --> 00:15:33,480 Maybe they're your short term employees who aren't familiar 230 00:15:33,480 --> 00:15:36,200 enough with everything just yet. Maybe they're your long term 231 00:15:36,200 --> 00:15:38,640 employees who don't think anything can change anyway. 232 00:15:39,280 --> 00:15:43,480 So that can really kind of help. That's a really solid metric for 233 00:15:43,480 --> 00:15:49,120 your quality system. All right, where are we going to 234 00:15:49,520 --> 00:15:50,800 next? Maybe we're going to take a 235 00:15:50,800 --> 00:15:55,120 breath while I talk. I am quite rambling today, I 236 00:15:55,120 --> 00:15:59,480 apologize. All right, when you are writing 237 00:15:59,520 --> 00:16:04,400 your quality objectives, you know, we have the, the ISO 238 00:16:04,400 --> 00:16:08,320 requirements, measurable monitoring communicated, take 239 00:16:08,320 --> 00:16:12,360 into account of applicable requirements relevant, that's a 240 00:16:12,360 --> 00:16:14,360 SMART goal. All that they're asking us to do 241 00:16:14,360 --> 00:16:17,760 is set up SMART goals. So specific, measurable, 242 00:16:17,760 --> 00:16:19,560 achievable, relevant, time bound. 243 00:16:21,720 --> 00:16:24,480 Generally you're going to have certain periods when you need to 244 00:16:24,480 --> 00:16:28,040 report on these metrics. That'll be your time bound kind 245 00:16:28,040 --> 00:16:31,560 of stuff. But let's, what can we do with 246 00:16:31,560 --> 00:16:33,160 SMART goals? You know, you got to set them up 247 00:16:33,160 --> 00:16:36,480 for your annual performance plans anyway. 248 00:16:37,720 --> 00:16:41,720 How do we apply that to an organization as a whole? 249 00:16:42,080 --> 00:16:49,520 Let's start with specific. That's an example could be, you 250 00:16:49,520 --> 00:16:54,240 know where you're your goal is to improve supplier performance. 251 00:16:56,040 --> 00:16:59,480 That's not really specific. What do you want to improve 252 00:16:59,680 --> 00:17:04,040 about supplier performance? What do you want to focus on for 253 00:17:04,040 --> 00:17:06,960 this year? If you've got an idea of where 254 00:17:06,960 --> 00:17:10,319 you're suppliers aren't performing well, then you'd be 255 00:17:10,319 --> 00:17:13,599 really specific and say something like reduce late 256 00:17:13,599 --> 00:17:18,240 supplier deliveries. That is specific and you can 257 00:17:18,240 --> 00:17:22,720 actually take actionable items from that little goal to your 258 00:17:22,720 --> 00:17:24,800 suppliers to have better results. 259 00:17:28,040 --> 00:17:37,120 Next up would be measurable. So if your goal is, you know, 260 00:17:37,160 --> 00:17:42,960 improved communication, but you can't really measure that, so 261 00:17:42,960 --> 00:17:46,960 you want to again, identify where your pain points might be. 262 00:17:47,760 --> 00:17:54,800 And this is part of that whole 6.2 point 1G be updated as 263 00:17:54,800 --> 00:17:58,680 appropriate so you can look at previous year's data to figure 264 00:17:58,680 --> 00:18:00,760 out what you want to do this year. 265 00:18:02,080 --> 00:18:06,960 So if you're on the goal of improved communication, well, 266 00:18:06,960 --> 00:18:12,040 let's say a more specific and measurable goal could be reduce 267 00:18:12,200 --> 00:18:16,040 engineering change related rework incidents by 20%. 268 00:18:18,920 --> 00:18:22,280 So if your eco is coming through and there's constantly rework 269 00:18:22,280 --> 00:18:25,680 involved in that and you want to make sure that you don't have to 270 00:18:25,680 --> 00:18:28,360 do as much rework because rework is a huge waste, you don't want 271 00:18:28,360 --> 00:18:31,680 to do that whatsoever. Say I'm going to have our X 272 00:18:31,680 --> 00:18:36,560 number here and we're going to take 20% off of that and that's 273 00:18:36,560 --> 00:18:39,960 our goal. OK, so now you have something 274 00:18:39,960 --> 00:18:42,960 that you can do. So maybe with the reduced late 275 00:18:42,960 --> 00:18:46,920 suppliers thing, you could say reduce late supplier deliveries 276 00:18:47,080 --> 00:18:53,920 by 30%. Perfect now achievable. 277 00:18:54,960 --> 00:19:00,840 Achievable is fun. You know, we always want 100% on 278 00:19:00,840 --> 00:19:04,840 time delivery. It's the ultimate goal, should 279 00:19:04,840 --> 00:19:07,800 be standard. It's not, it's not practical 280 00:19:07,960 --> 00:19:12,560 most of the time. So stretch goal, 100% on time 281 00:19:12,560 --> 00:19:18,360 delivery perfect, 100% reduction on late supplier deliveries, 282 00:19:19,000 --> 00:19:23,080 perfect, awesome, great. Can't be done, won't be done. 283 00:19:23,200 --> 00:19:26,400 You're going to set yourself up for failure and sadness and that 284 00:19:26,400 --> 00:19:29,320 would not be good. So when we're talking 285 00:19:29,320 --> 00:19:33,120 achievable, you want to look at what is realistic. 286 00:19:34,200 --> 00:19:40,800 So if you are in organization with a regular routine, 76% on 287 00:19:40,800 --> 00:19:46,000 time delivery rate, maybe your goal is 80%, Yeah, it's a little 288 00:19:46,000 --> 00:19:49,840 better than what you have shown to be capable of, gives you that 289 00:19:49,840 --> 00:19:53,320 improvement and you can probably identify real quick ways to get 290 00:19:53,320 --> 00:20:04,680 that extra 4% relevant is the R if it doesn't connect. 291 00:20:05,640 --> 00:20:09,960 To the people, the process, the product, it's going to get 292 00:20:09,960 --> 00:20:12,560 ignored. So make sure that if you are 293 00:20:12,560 --> 00:20:16,080 saying we're going to reduce late supplier deliveries by 30% 294 00:20:16,440 --> 00:20:19,160 that that actually impacts your organization. 295 00:20:19,440 --> 00:20:22,880 You, if you've got 2 suppliers for your whole thing, not a lot 296 00:20:22,880 --> 00:20:25,360 of outside services, it does not matter. 297 00:20:25,800 --> 00:20:29,440 Nobody's going to care too much about the 13% of the product 298 00:20:29,440 --> 00:20:31,440 comes into the building. They could be your most 299 00:20:31,440 --> 00:20:35,120 expensive product, sure, but again, money is intangible. 300 00:20:35,680 --> 00:20:39,840 People aren't going to care if it's such a small fraction of 301 00:20:40,240 --> 00:20:42,760 what they touch, what they deal with on a day-to-day, they 302 00:20:43,280 --> 00:20:47,840 aren't going to do it. And finally, time bound, you 303 00:20:47,840 --> 00:20:53,000 know, improves supplier delivery performance by 20% this year is 304 00:20:53,000 --> 00:20:56,560 not realistic. Give it a real date by end of 305 00:20:56,560 --> 00:21:00,480 quarter three. You know, we're all pretty good 306 00:21:00,640 --> 00:21:04,440 at procrastinating. I'm really good at going a month 307 00:21:04,440 --> 00:21:07,440 between episodes, month and a half, three years, whatever. 308 00:21:08,800 --> 00:21:12,880 So that is definitely something to to keep in mind. 309 00:21:13,280 --> 00:21:19,080 Time bound goals should have a a date or something more concrete 310 00:21:19,080 --> 00:21:25,000 than eventually or this year or by the end of the world. 311 00:21:26,400 --> 00:21:32,240 So SMART goals are a really solid framework. 312 00:21:32,240 --> 00:21:34,400 They're utilized everywhere. They make a lot of sense. 313 00:21:34,400 --> 00:21:37,240 They're better than OK Rs because they're they're real, 314 00:21:37,880 --> 00:21:41,040 but they are also just a starting point. 315 00:21:42,040 --> 00:21:49,440 That's never the finish line, that 6.2 point 1G if we need to 316 00:21:49,440 --> 00:21:52,000 be updating these goals as appropriate. 317 00:21:52,120 --> 00:21:55,200 So it's January. Take a look at your objectives 318 00:21:55,200 --> 00:21:56,800 right now, figure out what you're going to do. 319 00:21:57,600 --> 00:21:59,320 Figure out if they need to change how you're going to 320 00:21:59,320 --> 00:22:02,240 update them, how you're going to monitor them and make sure that 321 00:22:02,240 --> 00:22:04,600 they're communicated clearly and robustly. 322 00:22:09,680 --> 00:22:17,920 Let's talk about your objectives should come directly from real 323 00:22:17,960 --> 00:22:20,360 problems. What does that mean? 324 00:22:20,360 --> 00:22:24,000 So if we know where waste exists, let's go tackle it. 325 00:22:25,040 --> 00:22:28,120 You know, we could have a waste reduction objective and we're 326 00:22:28,120 --> 00:22:34,400 going to reduce our defect rate by 30% by Q3 on product XYZ and 327 00:22:34,400 --> 00:22:37,040 that'll save this amount of money, this amount of time, all 328 00:22:37,040 --> 00:22:39,760 of that. That would be a really good 329 00:22:39,760 --> 00:22:42,480 objective because it connects to what's going on. 330 00:22:43,240 --> 00:22:51,400 It is a a pretty solid goal for for your team to go out there 331 00:22:51,400 --> 00:22:54,960 and tackle it. And when we're getting that 332 00:22:54,960 --> 00:23:00,320 specific into the the product line, if it does sound a lot 333 00:23:00,320 --> 00:23:03,880 more like a, a preventive action or a corrective action effort 334 00:23:05,360 --> 00:23:08,640 and honestly that's kind of OK. When you're looking at the 335 00:23:08,640 --> 00:23:14,360 department level, we want to see goals similar to the, you know, 336 00:23:15,160 --> 00:23:18,600 reduced supplier deliveries, late deliveries kind of stuff 337 00:23:19,200 --> 00:23:22,280 your quality team could be tackling supplier issues as a 338 00:23:22,280 --> 00:23:24,480 whole. It's just a little, little 339 00:23:24,480 --> 00:23:27,840 bigger than product level or service line level. 340 00:23:28,600 --> 00:23:33,480 Departments could have more objectives like, you know, 341 00:23:33,480 --> 00:23:37,360 reducing DPPM or at least monitoring DPPM. 342 00:23:37,640 --> 00:23:41,800 They're building out systems to monitor DPPM. 343 00:23:42,000 --> 00:23:44,640 That sort of stuff would be the department level. 344 00:23:45,600 --> 00:23:50,000 A really specific product line is, is really more corrective 345 00:23:50,000 --> 00:23:52,400 action, preventive action and you can still call it, call it 346 00:23:52,600 --> 00:23:57,320 an objective because you do have an objective of fixing that 347 00:23:57,520 --> 00:24:01,040 waste. So fine details between these 348 00:24:01,040 --> 00:24:04,880 two concepts actually let's let's break into that. 349 00:24:05,080 --> 00:24:09,520 So if we know, you know, we've we've got waste in our process 350 00:24:10,200 --> 00:24:14,200 losing time somewhere, customers are frustrated, people are 351 00:24:14,480 --> 00:24:19,360 burning out, leadership is asking the same question over 352 00:24:19,360 --> 00:24:23,360 and over again. We could use all of these kind 353 00:24:23,360 --> 00:24:30,440 of situations to build Kappas and address the problem as a 354 00:24:30,840 --> 00:24:34,760 project kind of thing. Your quality system stuff though 355 00:24:35,080 --> 00:24:39,760 it wants you know, are we is the process performing well 356 00:24:40,640 --> 00:24:44,160 consistently? You know, like for the year we 357 00:24:44,160 --> 00:24:52,320 are going to have an internal defect rates of 7000 DPPM. 358 00:24:52,720 --> 00:24:56,960 So that could be your department level goal. 359 00:24:57,120 --> 00:24:59,840 You're going to monitor that come back month to month. 360 00:24:59,840 --> 00:25:02,400 Figure out what your Pareto says about stuff. 361 00:25:02,400 --> 00:25:07,160 If you got a CPK chart on certain products or a histogram, 362 00:25:07,560 --> 00:25:09,480 that's a Pareto. What's the other one? 363 00:25:09,480 --> 00:25:14,960 I'm going for burrito CPK run chart Jeepers. 364 00:25:15,040 --> 00:25:18,200 OK, so the more data you could have, the better. 365 00:25:18,880 --> 00:25:29,480 As as always, still objectives as a whole should address the 366 00:25:29,480 --> 00:25:32,560 pain points of the organization because you're going to know 367 00:25:32,560 --> 00:25:35,160 what happens or what could be the pain points as well. 368 00:25:36,880 --> 00:25:38,880 You're going to know those, you're going to want to address 369 00:25:38,880 --> 00:25:40,720 those. And the sooner you can fight 370 00:25:40,720 --> 00:25:44,240 those, the sooner you can get to other objectives. 371 00:25:44,920 --> 00:25:47,760 Just start knocking them out. And on that note, I want to talk 372 00:25:47,760 --> 00:25:50,480 about all of the the stuff from the four disciplines of 373 00:25:50,480 --> 00:25:53,920 execution. It's a number of authors. 374 00:25:53,920 --> 00:25:55,520 I'm blanking on their names. Natsu. 375 00:25:57,600 --> 00:26:03,600 They talk about setting a a wildly important goal and that's 376 00:26:04,560 --> 00:26:07,920 what is the organization trying to do for that review period. 377 00:26:08,280 --> 00:26:13,920 What are they? What would be the the key 378 00:26:13,920 --> 00:26:19,280 contributor to success for that organization? 379 00:26:19,280 --> 00:26:23,080 So maybe it's, you know, stop. They have examples in the book 380 00:26:23,120 --> 00:26:28,960 about improving attendance on certain shifts because they know 381 00:26:28,960 --> 00:26:32,960 that if they can fix attendance on a shift, then there's a whole 382 00:26:32,960 --> 00:26:36,240 grand opportunity to make better profit, make better revenues, 383 00:26:36,720 --> 00:26:40,000 increase throughput, all sorts of really cool stuff. 384 00:26:40,800 --> 00:26:45,360 So they talk about this wildly important goal concept and then 385 00:26:45,360 --> 00:26:49,000 everything subordinates to achievement of the wildly 386 00:26:49,000 --> 00:26:53,720 important goal with full awareness that there's whirlwind 387 00:26:53,840 --> 00:26:56,320 activities going on that day-to-day stuff that's going to 388 00:26:56,320 --> 00:27:02,680 impact everybody's ability to actually work on improving the 389 00:27:02,680 --> 00:27:06,680 results as they pertain to the wildly important goal. 390 00:27:07,840 --> 00:27:14,480 And that could be addressed will say through utilization of lag 391 00:27:14,560 --> 00:27:17,560 and lead indicators. So your lag indicators stuff 392 00:27:17,560 --> 00:27:21,280 like on time delivery where you don't know if you made it on 393 00:27:21,280 --> 00:27:24,360 time until it's a little too late to know if you made it on 394 00:27:24,360 --> 00:27:28,320 time. And then lead indicators such as 395 00:27:28,760 --> 00:27:33,120 total number of boxes moved to the warehouse for a day. 396 00:27:34,360 --> 00:27:39,680 So if if you move boxes to a warehouse, then that greatly 397 00:27:39,680 --> 00:27:41,920 impacts the ability to actually ship product. 398 00:27:42,680 --> 00:27:45,360 And if you can ship product, then probably you're going to 399 00:27:45,360 --> 00:27:48,880 ship it on time. So they can control the flow of 400 00:27:48,880 --> 00:27:56,720 product or rather they have the data to say, yes, we are moving 401 00:27:56,720 --> 00:28:02,480 product into the warehouse and they can see, you know as 402 00:28:02,480 --> 00:28:04,680 granular as you want to get with these kind of things. 403 00:28:05,280 --> 00:28:10,600 But if you control that lead indicator, lead indicators, all 404 00:28:10,600 --> 00:28:13,200 sorts of stuff that you can control and get instant feedback 405 00:28:13,200 --> 00:28:15,920 on. And if you get that lead 406 00:28:15,920 --> 00:28:19,840 indicator correct, then you control, you have a better 407 00:28:19,840 --> 00:28:23,680 opportunity to control that lag indicator, which is also 408 00:28:23,760 --> 00:28:27,440 fantastic. So such a wildly important goal, 409 00:28:29,440 --> 00:28:33,680 you know, increase on time delivery woo fun. 410 00:28:34,840 --> 00:28:37,880 Your lag indicator is your on time delivery rate because you 411 00:28:38,240 --> 00:28:41,240 know after the fact if it made it on time. 412 00:28:42,400 --> 00:28:46,080 Your lead indicator is how many boxes are moved to the 413 00:28:46,080 --> 00:28:48,480 warehouse. You can control that. 414 00:28:48,480 --> 00:28:50,640 You can help people push product through. 415 00:28:50,640 --> 00:28:54,960 You can figure out what shifts actually move it, what people, 416 00:28:54,960 --> 00:28:58,320 what product is moving into the the warehouse. 417 00:28:58,760 --> 00:29:00,080 And it's kind of the same concept. 418 00:29:00,840 --> 00:29:03,880 You have your objective, your quality objective for the year 419 00:29:04,360 --> 00:29:07,920 could be something like we will increase total employee 420 00:29:07,920 --> 00:29:13,680 engagement by 40%. That's pretty lofty because you 421 00:29:13,680 --> 00:29:15,960 got to have a baseline and then increase it. 422 00:29:16,280 --> 00:29:19,280 So more than likely if you're just starting with this, we will 423 00:29:19,280 --> 00:29:24,480 have 40% total employee engagement as monitored by XYZ 424 00:29:26,000 --> 00:29:31,400 by date 123. That could be your quality 425 00:29:31,400 --> 00:29:35,040 objective. Then you have stuff like your, 426 00:29:37,080 --> 00:29:39,760 so that becomes your widely important goal, that total 427 00:29:39,760 --> 00:29:45,840 employee engagement remark. Your lag indicator could be the 428 00:29:45,840 --> 00:29:51,760 actual percentage of employees participating in the system, and 429 00:29:51,760 --> 00:29:56,000 your lead indicator could be number of events, system events 430 00:29:56,280 --> 00:29:59,440 of that a participation was available for. 431 00:30:00,320 --> 00:30:04,120 And then you can start to control your actual provision of 432 00:30:04,280 --> 00:30:08,840 activities where people can participate, Gamba, Kaizen, all 433 00:30:08,840 --> 00:30:12,440 sorts of stuff for people to just hop in, take part, make 434 00:30:12,440 --> 00:30:16,960 their voices heard, make an impact, and then they go to the 435 00:30:16,960 --> 00:30:21,120 next thing. So that's, I think that's a 436 00:30:21,120 --> 00:30:27,400 really cool way to think of quality objectives as a wildly 437 00:30:27,400 --> 00:30:30,800 important goal. And fully knowing and 438 00:30:30,800 --> 00:30:33,520 understanding that there's a whole bunch of day-to-day stuff 439 00:30:33,560 --> 00:30:38,280 that's going to impact your ability to actually change or 440 00:30:38,320 --> 00:30:41,960 alter the results of that wildly important goal. 441 00:30:42,520 --> 00:30:45,360 But you can still monitor that, communicate those results 442 00:30:46,240 --> 00:30:50,920 through those lag and lead indicators up in front of 443 00:30:50,920 --> 00:30:54,200 everybody. The book before Disciplines of 444 00:30:54,200 --> 00:30:57,960 Execution does it way more eloquently than than I do, so 445 00:30:57,960 --> 00:30:59,760 highly recommend checking that out. 446 00:31:03,560 --> 00:31:11,120 All right, finally, let's say if if your objective isn't 447 00:31:11,120 --> 00:31:16,560 reviewed, it's not an objective, it's just a poster, you know, 448 00:31:16,560 --> 00:31:19,320 it's art on the wall. An auditor isn't going to give 449 00:31:19,320 --> 00:31:22,400 you credit for just writing down objectives. 450 00:31:23,080 --> 00:31:26,080 You're going to get credit from the the external auditor, your 451 00:31:26,080 --> 00:31:29,680 internal stakeholders, corporate overseers, whomever they 452 00:31:29,680 --> 00:31:34,320 actually use objectives. An objective that never comes up 453 00:31:34,320 --> 00:31:36,880 in meetings is absolutely lying to everybody. 454 00:31:37,320 --> 00:31:42,680 If it is written down, tracked, monitored. 455 00:31:43,600 --> 00:31:48,000 People put time, energy, effort into all of the work that goes 456 00:31:48,000 --> 00:31:53,840 into collecting the data necessary to gather a, to gather 457 00:31:53,840 --> 00:31:56,240 that metric info. And then it's never talked 458 00:31:56,240 --> 00:31:58,520 about. Nothing has ever done, nothing 459 00:31:58,520 --> 00:32:01,320 actionable ever comes out of it. Stop working with that 460 00:32:01,320 --> 00:32:03,200 objective. It's a waste of everybody's 461 00:32:03,200 --> 00:32:05,520 time. There's there's a lot of waste 462 00:32:05,920 --> 00:32:08,720 in these management processes that needs to be greater 463 00:32:08,720 --> 00:32:11,200 addressed. And you could do that by 464 00:32:11,200 --> 00:32:14,680 utilizing David Manlean, building a lean culture, 465 00:32:14,960 --> 00:32:17,080 creating a lean culture. Sorry, that's the book title. 466 00:32:17,640 --> 00:32:21,960 Fantastic text as well. And in conjunction with four 467 00:32:21,960 --> 00:32:25,320 disciplines of execution prima, you'll have a great, great 468 00:32:25,320 --> 00:32:27,880 opportunity to get some lead management in place. 469 00:32:28,960 --> 00:32:34,200 We'll talk about that later. So, but ultimately, if, if 470 00:32:34,200 --> 00:32:37,800 you're collecting the info and not using it, stop collecting 471 00:32:37,800 --> 00:32:43,200 the info, plain and simple. That's, that's all that we can 472 00:32:43,200 --> 00:32:46,240 do. You know, we don't want to write 473 00:32:46,920 --> 00:32:51,400 our objective is continual improvement and then never 474 00:32:51,680 --> 00:32:53,360 actually talk about continual improvement. 475 00:32:53,920 --> 00:32:58,840 We never want to say our objective is to improve supplier 476 00:33:01,000 --> 00:33:05,680 late delivery rates by 30% and then never talk about if we 477 00:33:05,680 --> 00:33:09,280 actually made that happen. Because if we do monitor 478 00:33:09,320 --> 00:33:14,760 supplier performance and you've got people that are greatly 479 00:33:14,760 --> 00:33:18,040 impacted by the ability for supplier product to come in on 480 00:33:18,040 --> 00:33:25,360 time, they want to know. But if you post that it and your 481 00:33:25,360 --> 00:33:27,760 objective actually does address pain points for your 482 00:33:27,760 --> 00:33:30,600 organization, it actually does impact people doing the work. 483 00:33:31,040 --> 00:33:35,200 It makes a difference. And if you aren't actually doing 484 00:33:35,200 --> 00:33:37,720 anything to communicate the results, if you aren't actually 485 00:33:37,720 --> 00:33:42,120 doing anything to help people better understand if we're 486 00:33:42,120 --> 00:33:44,720 progressing, if we're changing, if their jobs are getting 487 00:33:44,720 --> 00:33:49,600 easier, if you say you are and then you don't, that objective 488 00:33:49,600 --> 00:33:51,400 is only hurting the organization. 489 00:33:53,600 --> 00:33:58,800 All right, let's, let's finish there. 490 00:33:58,880 --> 00:34:01,280 I think that's that's a lot of ranting. 491 00:34:01,280 --> 00:34:03,240 And I haven't actually done this for like a month. 492 00:34:03,240 --> 00:34:08,080 So it's it's not not solid quality, but I think it's better 493 00:34:08,320 --> 00:34:14,920 than than it has been. So let's let's, let's do this, 494 00:34:14,960 --> 00:34:21,920 let's let's outro time. So what objectives are are you 495 00:34:21,920 --> 00:34:25,400 using It's January, take a look at and make your resolution in 496 00:34:25,400 --> 00:34:29,880 the company to change them. Make them better, make them 497 00:34:29,880 --> 00:34:33,719 smart, make them useful. Ask yourself when you're looking 498 00:34:33,719 --> 00:34:38,400 at your your objectives, is monitoring this objective going 499 00:34:38,400 --> 00:34:43,239 to solve a problem? How do you know if it's working 500 00:34:43,639 --> 00:34:47,239 your monitoring and actions taken from that monitoring? 501 00:34:49,080 --> 00:34:52,920 Ask yourself, do the people impacted by this objective know 502 00:34:52,920 --> 00:34:55,840 it exists? So if the answer's ever no, 503 00:34:56,080 --> 00:34:59,320 rewrite it, change it, get rid of it, do something else. 504 00:35:01,600 --> 00:35:05,560 Quality objectives do not exist to impress auditors. 505 00:35:06,480 --> 00:35:10,080 The only thing that impresses auditors is objective evidence 506 00:35:10,080 --> 00:35:12,120 that you're doing what your system says it's doing. 507 00:35:13,600 --> 00:35:16,240 So make that the goal. Maybe your quality objective 508 00:35:16,240 --> 00:35:20,360 could be this year we will have a 30% increase in auditor smiles 509 00:35:20,520 --> 00:35:22,480 during the external surveillance audit. 510 00:35:24,040 --> 00:35:29,440 That could be a lot of fun. Don't, don't do that. 511 00:35:30,800 --> 00:35:32,040 OK. All right, that will do it. 512 00:35:32,640 --> 00:35:36,800 Hey, if you've got any questions, I would love to hear 513 00:35:36,800 --> 00:35:38,640 from you. Send an e-mail over to 514 00:35:38,680 --> 00:35:45,760 everydayqualitypodcast@gmail.com. Come visit us.online@coqms.com 515 00:35:45,760 --> 00:35:49,080 where you can download a bunch of cool stuff. 516 00:35:49,080 --> 00:35:50,800 I've got tools and resources galore. 517 00:35:51,160 --> 00:35:55,800 Notion templates, a program that does all sorts of scatter plots, 518 00:35:55,800 --> 00:36:00,120 expert R charts. You don't need to have an Excel 519 00:36:00,360 --> 00:36:07,280 program to do any of it and working on a a three that is 520 00:36:07,280 --> 00:36:10,520 teams friendly, so that'll be cool. 521 00:36:11,320 --> 00:36:13,600 All right, it's late. I'm going to go. 522 00:36:13,920 --> 00:36:16,040 I, I really appreciate you hanging out with me talking 523 00:36:16,040 --> 00:36:18,960 about quality objectives. Send me a note. 524 00:36:19,160 --> 00:36:22,600 I want to hear about the silliest objective you've ever 525 00:36:22,600 --> 00:36:25,080 worked with. That would be pretty fun. 526 00:36:26,000 --> 00:36:27,840 Mine was actually total employee engagement. 527 00:36:27,840 --> 00:36:31,960 It started pretty silly and then we found fantastic results by 528 00:36:31,960 --> 00:36:33,680 actually monitoring and talking about it. 529 00:36:34,280 --> 00:36:36,200 That'll be good for another another episode though. 530 00:36:36,360 --> 00:36:41,640 So, OK, thanks for hanging out. We'll be back soon with another 531 00:36:41,640 --> 00:36:42,640 episode. Bye.