Recently Advanced Machine underwent a third party audit to upgrade the QMS (Quality Management System) to AS9100 Rev. C.   Most people who have been through an audit know it is a nerve-wracking experience.  Prepared as we were, we knew there would be at least one question that would catch us like deer in the headlights.  At the end of the day, we were very fortunate to have passed with flying colors.  A good internal auditing process was a large part of our success, but I cannot leave out something else that was invaluable:  the management review process.  This is the periodic review of the QMS performed by upper management to analyze its effectiveness and irrefutably it is one of the most powerful players of the system.

 Players is a telling word for what I’m about to do.  Cue drum roll …

 In the first stages of AS9100 implementation, I had a difficult time figuring out how to put together a cohesive process for management review.  The tracking, the follow up, the requirements, and the final outcome had me spinning around looking for a starting point.  It took a while to nail down a process that works for us so I thought I might be able to spare you some time by emphasizing a few things.  Most ISO material tends to be a little dry, so in a spirit of light-heartedness, I’ve chosen to compare the management review process to that of a “revue”, like a play or musical, because – even though it seems like worlds apart – it has many of the same components.   The various modules of management review must dovetail into one interconnected outcome.  Like a play, when seen from the outside it is a seamless work of art.  Internally however, each element tells a story.  Using a bit of theatre language to help with definition, I hope to provide insight into the 5 building blocks of… House lights up! …  Management Revue, the Musical!  Curtain please….

 Management Review Building Block #1:  Top Management

 In the world of theatre, the person who puts together a theatrical production is known as the Producer.  Among many things he obtains financial backing, hires the director, and oversee all budgetary issues.  Without the producer the show does not go on.  On the other hand, if the producer chooses to be uninvolved in the routine activities of putting on a performance, he risks failure of the entire production.

As all business experts attest, lack of oversight by higher-ups in company operations is unwise.  And yet often, when it comes to the QMS, once top management has assigned quality control duties to other people, they wander back to their offices never to be seen at management review meetings again.  Understanding and interpreting an ISO standard to your company’s unique processes can be a stringent, time-consuming task.  Inevitably more pressing matters intervene and drive the priority downward.  Nonetheless, in order for the management review process to be beneficial to the company, top management must actively participate.  To create a QMS with a goal of improving the company’s functionality and then not partake in its effectiveness is like putting on a Kardashian-style wedding and filing for divorce in 72 days.  Pointless, wouldn’t you agree?

Management Review Building Block #2:  Management Representative.

 There is no underestimating the enormity of the director’s position in the realm of theatre.  This is the person who provides the vision of how a show should be presented.  The director is chosen by the producer and among many things, he must interpret the complexities of the performance.  Often, the commercial success of a show depends upon the director.

 The AS9100 Rev C standard says top management shall appoint a person within the organization to ensure that all processes needed for the QMS are established, implemented and maintained.  This person is known as the Management Representative, and just as a director, they carry a lot of weight on their shoulders.   Management Representatives are crucial to ensuring the QMS is functioning successfully and, most importantly, they must have “organizational freedom and unrestricted access to top management to resolve quality management issues.”¹   The choice of individual for this position should be carefully considered for their experience, dedication, aptitude, and extraordinary ability to stay awake when deciphering clauses.    

 Management Review Building Block #3:  Meeting Schedule.

  A good play or musical has a definitive number of performances scheduled before opening night and this is often referred to as the “run of the play”.   Boiled down, it is a set course of action which determines all other actions connected to it:  i.e. theatre space is booked, actors’ are chosen, tickets are sold in advance, managers, assistants and stage hands are hired, and above all, contracts are written. 

A management review meeting schedule is a takeoff on the run.  It is the binding agent that forces commitment to the QMS.   But I’d like to take the analogy one step further.  Management review meetings are not just meetings, they are mindsets.  In this way, they live with you much like a character is absorbed by an actor during the course of a play.  The meeting itself addresses agenda items but the outcome is concurrently an open and closed event.  And since the schedule sets both the start and finish of QMS effectiveness discussions, it serves as an important point of reference for matters such as continual improvement, corrective action follow up, customer satisfaction, training and quality objective metrics.

 Management Review Building Block #4:  Meeting Agenda.

It might be daring to have a play or musical based solely upon improvisation, but without a script, even the most brilliant cast can no longer find words to tell the story. The plot, if there is one, dies while the audience, bored and most likely confused, wanders out the door.   Plays are written in “acts” so a story can unfold.  They are the underpinning that keeps actors on the same page and stage hands standing by.  When “acted”, the play moves from beginning to end fulfilling certain dramatic elements and ensuring the audience will remain in their seats until the curtain comes down. 

 Just as acts are necessary to the process of play-acting, so is the role of the agenda to the management review meeting.  You must have an agenda in order to accomplish anything.  And just like a play needs three acts to perform its task, an agenda needs … bullet points at the least.  In other words, you don’t necessarily need to follow a stringent protocol, but the reason for the meeting must be evident and observable.  Agendas for our management review meetings are really a work of art.  They start taking shape the day after the last meeting in the form of rough notes on a yellow legal pad.  Every time something comes across as an item for discussion, it gets jotted down.  Often there are doodles.   By the time the next management review meeting rolls around, there are at least 10 dog-eared pages of agenda items illustrated with hieroglyphics and stained coffee cup rings.  Rarely do these notes take on any formal attributes, but I confess, not wanting to take any chances, I typed the last agenda for our third party auditor.  The important thing about an agenda is to have one.

 Management Review Building Block #5:  Input and Output.

 There is a well known line from Shakespeare’s play Hamlet that goes, “The play’s the thing.”   Replace the word “play” with “part” and you have an ideal metaphor for a machine shop in action.   Equipment and employees are set up in positions to facilitate the most effective use of resources, hence, they are “staged”.  Work is produced according to procedures and work instructions, just as a “script” is used by actors.  Top management is the “audience” intently watching the performance indicators (the actors).   And in the end the quality of the part is a measurement of how well everything is working.  All are components – the inputs and outputs – of process management.

 It was hard for me to get my mind around the concept of input and output.  Worried I would miss the point entirely, I began over-thinking it.   I finally realized it is that simple.  What goes in must come out.  Management review meetings analyze various performance indicators:  the data goes into the system, results are assessed based upon the outcome, and actions are taken (outputs) to continually improve process performance.  Plan-do-check-act.  Act?  There it is again, the theatre reference… My confession at the end of all this is that making this analogy was more of a stretch than I anticipated.  Although the theatre references came fairly easy, the management review process as a comparison required deeper analysis.   But that’s how it goes… ISO standards are to be interpreted and when applied, the interpretation is given a wide berth.  Some may call this artistic license.  So I ask again, cannot the same be said of theatre?  Shakespeare thought as much.  In As You Like it, he wrote,

   “All the world’s a stage

And all the men and women merely players”.

 To me this means that theatre is life, in its innumerable forms and functions.  We are always performing.  But the manifestation of that performance may be whatever you chose, at whatever moment.   Ad infinitum.   

So as the curtain draws on Management Revue, the Musical… let’s take a bow and wait for the next act to roll out.  I promise to make it interesting!

 ¹.  Page 13, SAE AS9100C, 5.5.2 d)

When someone is very dear to you, it is difficult and awkward to openly acknowledge their defects.  One usually finds themselves apologetic because, like it or not, there is a certain amount of disappointment that comes with the territory of being flawed.  No amount of sugar coating makes it painless for the bearer or receiver of the bad news.   Now, imagine the “dear” thing is your quality management system and it is your job to put it under a microscope solely for the purpose of finding its flaws.  Such is the process known as the internal audit.

Conducting an internal audit is an inimitable experience for any company.  The quality management system is based upon a company’s exclusive operations and procedures, and when designed around an ISO standard, there are rigorous criteria to adhere to in order to stay in conformance.  Furthermore, ISO standards cover a large scope in great detail and yet remain highly interpretative so as to be flexible in application.   It is not an overstatement to say there is much depth to the complexity of the internal audit. 

Section 8.2.2 of AS 9100 C, Internal Audit states:  “The selection of auditors and conduct of audits shall ensure objectivity and impartiality of the audit process.  Auditors shall not audit their own work.”  We were very diligent when building the quality management system and particularly so when defining areas of operation and assigning process owners.  As required, auditing duties are scheduled well in advance and process owners are listed to assure there is no conflict with their own work.  This may be the most straightforward part of the internal audit process.  While it clearly defines who does what and when, it does not define the components of impartial analysis – something very necessary for providing objective evidence of conformity and nonconformity.

So how do we ensure objectivity?    We know it’s crucial and yet staying on that noble path is far easier said than done.  As we have discovered, it is difficult as shop managers not to be influenced by our own involvement.   In a small company, operations, like water, flow over their respective areas into other areas.   Above all, it’s critical for management to be knowledgeable of all operations and process relationships to make certain there are checks and balances in place.  Meanwhile, in the normal course of doing business, the lines of demarcation can become blurry.

One of many articles I read during our training period stated that companies who’s management is very involved in the quality management system from inception to culmination were often more successful.  The basis here is simple:  When management is fully engaged, the relationship of process input to performance output becomes very real in terms of profit.  I don’t think anyone could be more engaged than us.  We practically lived inside our quality management system while we built it and we clearly see the relationship of its success to the company’s success.  But to be honest and upfront, as much as we thought we understood the process of internal auditing, it was not until we initially conducted one that we realized the large role objectivity plays. 

I might be going out on a limb here, but it’s my thought that the very thing that makes it difficult to be objective – in our case, attachment – is also the impetus for assuring that we are objective.   An internal audit is an accurate picture of the company’s strengths and weaknesses and it is one of the most powerful tools for meeting customer expectations with greater consistency.  Who would not want this for the company?  With the amount of pressure on most small businesses these days, being incredibly tuned into the company’s strengths and weaknesses is a paramount position for sustainability and success.  Perhaps it is the “fear factor”, but it works because so much is riding on it. 

ISO 9001 clause 8.2.2 states as follows:   “An audit program shall be planned, taking into consideration the status and importance of the processes and areas to be audited, as well as the results of previous audits”.  This requirement directs our focus on processes that have problems occurring in the past and/or problems that are likely to occur again (and may in fact be repetitive by their very nature).  Therefore, areas of high risk or non conformities take priority when auditing.  The beauty of following the standard is that it alleviates the burden of defensiveness so often accompanying hard work.  Here we are encouraged to take a knife and scalpel to the work, dissecting its flaws because that is what makes it great in the long run.   We can let out a huge sigh of relief while taking aim, knowing it’s for the best.

Internal Auditing is a fine art.  As we continue adherence to our quality management system, we will gain more skill and knowledge in the practice of internal auditing to make sure it is effective in its function.  The bottom line is improvement of employee competence, process effectiveness and prevention of problems, continued customer satisfaction, and above all, quality of product.  The energy spent creating from the inside only performs well when you can take a critical look from the outside.   

The reward resides in the evolution of the work itself.

Advanced Machine wins 2010 CEDC "Best Process Improvement" for Small Shops

Life has a way of getting busy and complicated.  When you operate  a business, you can triple that and still have it be an understatement.  Advanced Machine, Mike, and Liz have had their hands full these past 6 months.  It’s good to be challenged, but (and there is that proverbial “but”) it’s frustrating as well.  I think what we are experiencing at Advanced Machine is growth, which is, by the way, the point of our endeavors.   So why complain?
As prepared as we like to think we are for growth, it still catches us by surprise.  It’s called a “Double Edged Sword”, cutting on both sides and leaving a significant mark on our 2010 Business Plan.  The plan is, in theory, good, but suddenly it seems like I ought to rip it up and start over.  More honestly, I would like to take a big red sharpie, cross through all the wording, and replace it with one big question mark.  As in, how ?  How does one get all these parts working together seamlessly and practically?  That is, without tearing out one’s hair or turning into an incredible hulk.  (Actually, turning into the Hulk might work!)  All business operators out there know what I’m talking about.  Hiring new employees, buying new equipment, shoring up operations to fit new business, and keeping the fiscal bottom line healthy and intact – it’s all part of the game.  You just wish you weren’t always the coach.  Ah well, someone once said (about many things, growth included) “it’s a problem you want to have.”

This brings me to the part of this blog where I stop complaining and start updating you, my readers. Thanks to Gaston College and Cardin Quality Training Associates, Advanced Machine completed its rigorous AS9100 training in March of this year.  It was 12 months of studying that which I can only define as “the thing you most avoided in the first place.”   Like calculus or physics (personally speaking).  ISO (International Organization of Standards) makes absolute sense and I am convinced that sooner or later, certification will be required of all 2^nd and third tier suppliers.  ISO also forces you to look at every aspect of your operations in terms of delivering excellent product to your customer and being able to prove to them that’s exactly what you can do.  For Advanced Machine, this has meant establishing new procedures, cleaning up the old, and documented them from A to Z.  It all sounds so easy until you start doing it, and then it becomes increasingly more complicated.

One of the problems we encountered upon completion of training was the decision of which revision level of AS9100 we would actually certify to, B or C.  Having completed our training in March for Revision C, we were anxious to get the ball rolling, hire a Registrar and set a Third Party Audit date.  But one little problem exists.  The Audit Checklist for Rev C has not been completed and, as of this date, not expected to be available until sometime in 2011.  Notably, Advanced Machine would have been one of the first companies trained and certified to this revision, so the question became a serious one.  B or C?   Wait or go ahead?  Ultimately we decided that with the training fresh in our minds and the processes in place and working, we would go ahead with Revision B.   Naturally we are excited about certification and don’t want to put it off any longer, but also there is this:  AS9100 certification will be new benchmark against which we will test our mettle.  The pressure is on, but  I’ve always believed that Advanced Machine performs well under the gun.  Now is the time to find out.   Our Third Party Audit is scheduled for mid-October, 2010. 

I want to wrap up this blog with the biggest piece of news.  All our hard work paid off on June 23, 2010 when Advanced Machine & Fabrication, Inc. was presented the 2010 Advanced Manufacturing “Best Process Improvement” award by Minds That Manufacture and the Centralina Economic Development Commission.  The awards recognized excellence in manufacturing in three separate categories: Process Improvement, Innovation, and Green Process Improvement. Teams of judges who were experienced practitioners or subject matter experts were used in each of the categories. Each category was judged by a separate team of judges. Applications were reviewed for content using specific judging criteria.  We prepared a slide presentation based upon this criteria, and I have to say – it is a lovely piece of work!  Again, we can’t thank Gaston College and their team, Diane Metcalfe, Virgil Cox, Doug Bradley and Dr. Linda Greer for their support and enthusiasm in nominating our shop for this prestigious award.  Another big thanks goes to Vail Carter and David Hollars of the Centralina Workforce Development Board, for without their support and funding, small shops like Advanced Machine would not easily find the resources to undergo large training endeavors such as AS9100.   For all of you who labor long and hard over business, please do not overlook all state and local resources available.  As we discovered, they are truly a champion for our success! 

Please take a look at our award winning slide show presentation:  minds that manufacture