Quality Operating System

Primer

FAO Quality Office

September 1996

© 1996 Ford Motor Company. All Rights Reserved

 FOREWORD
Objective...
The objective of this primer is to tell you what a Quality Operating System (QOS) is, not to tell
you how to implement a QOS.

Target Audience....
The target audience for this primer is anyone who will come in contact with the QOS
methodology.
This could be someone who will participate in developing a QOS, or someone in an
organization implementing a QOS.
Desired Outcomes....
After reviewing the QOS Primer, you should:
• understand the QOS wheel.
• understand QOS terms.
• understand the benefits of a QOS.
• know where to go for QOS training, materials, and support.
 TABLE OF CONTENTS
Introduction
Identifying Customers and Their Expectations

Identifying Key Processes

Selecting Measurables

Tracking Trends of Measurables

Predicting Downstream Performance

Constant Employee Awareness

Continual Process Improvement

APPENDIX
Glossary of Terms
 IDENTIFYING CUSTOMERS AND
THEIR EXPECTATIONS
The first step of the QOS wheel focuses on identifying your
customers and their expectations.

Who Are Your Customers?

Your customers are the direct and indirect beneficiaries of the output of your process. The
output of your process is a product or service.

Are There Different Types of Customers?

There are two types of customers, internal and external.
Internal Customers include:
• employees downstream in your process.
• managers, owners, or stockholders.
External Customers include:
• end-customers or consumers of your products or services.
• dealers, governments, and other outside agencies.
Internal and external customers have expectations of your product or service.

What Are Customer Expectations?

Customer expectations are the customer defined attributes of your product or service you
must meet or exceed to achieve customer satisfaction.

Are There Different Types of Customer Expectations?

There are two types of customer expectations, expressed and implied.
Expressed Customer Expectations are:
• written, e.g., terms of a contract.
• spoken, e.g., voice of the customer.
Implied Customer Expectations are:
• too difficult for the customer to clearly communicate.
• not written or spoken, but very basic to the product or service, e.g., the customer
expects wheels on a car.

How Are Customer Expectations Identified?

Here are several methods to help identify your customer expectations.
• market research • contractual agreements
• focus groups • phone calls

• satisfaction surveys • site visits

• warranty records • informal discussions

• news media • competitive benchmarking

Do Customer Expectations Change Over Time?

Customer expectations change over time due to enhancements to products or services by
competitors, technological innovations, or improved performance of your process.
It is important to periodically update your knowledge of customer expectations. The same
methods used to identify your customer expectations can be used to update them.
To summarize, let's look at a simple example to help you better understand identifying
your customers and their expectations.
Example: Pat's Weight
Pat had not been feeling well lately, often feeling low on energy and experiencing shortness
of breath. Pat's Doctor advised Pat to lose weight. Pat wondered, "How can I monitor and
control my weight loss process?"
Pat works for a Ford Q1 supplier and is familiar with the QOS methodology. Pat thought,
"Hey, I can use the QOS methodology to monitor my quest for weight loss!"
Pat's first action was to identify customers. The internal customer is Pat. Pat is the manager
of the processes that deliver weight loss. The external customer is also Pat. Pat is the primary
beneficiary of the processes that deliver weight loss.
Please note, in your QOS the internal and external customers are not likely to be the same.
Pat's second action was to identify customer expectations. Pat's primary expectation was to
lose weight. Pat's secondary expectations were to feel more energetic and reduce
shortness of breath.
Customer(s) Customer Expectations
Pat • lose weight
• feel more energetic
• reduce shortness of breath
Now, let's move to the second step of the QOS wheel, Identifying Key Processes.
 IDENTIFYING KEY PROCESSES

The second step of the QOS wheel focuses on selecting your key
processes.
What Are Key Processes?
A key process highly impacts your ability to deliver one or more customer expectations.
A key process may be a complete process or a subprocess. Key processes are not limited to
manufacturing. They can be found in any area, at any level of your business. Here are some
examples of key processes.
Manufacturing Service
• machining • sales

• training • recruiting

• assembly • accounts receivable

• preventive maintenance • customer service/support

How Are Key Processes Identified?

Key processes are identified by looking at each customer expectation, and identifying the
process or processes having the greatest impact on meeting that customer expectation.
Now, let's look at Pat's QOS to help you better understand the key processes step of the
QOS wheel.

Example: Pat's Weight

Remember, key process are identified by looking at each customer expectation. Let's focus
on Pat's primary customer expectation, lose weight. Pat's Doctor warned Pat not to rely on
"quick fixes," such as fad diets. Fad diets may yield short term results, but do not sustain
weight loss over time. Pat's Doctor said in order to lose weight, Pat must eat better and
exercise. Taking the Doctor's advice, Pat identified the two key processes critical to losing
weight as diet and exercise.

Customer Expectation Key Processes

• diet
lose weight
• exercise

Now, let's move to the third step of the QOS wheel, selecting measurables.
 SELECTING MEASURABLES

The third step of the QOS wheel focuses on selecting measurables and
goals.
What Are Measurables?
Measurables are quantifiable indicators of how your processes are performing, or how
effectively you are meeting your customer expectations. Measurables are:
• often expressed graphically using numbers or percentages.
• tracked over time.
• compared to a goal or objective.

Are There Different Types of Measurables?

There are two types of measurables, process and result:
Process Measurables:
• tell you how well your key processes are performing.
• predict the performance of result measurables.
Result Measurables:
• tell you how well you have met your customer expectations.
 • external customer expectations, e.g., customer satisfaction and on-time delivery.
• internal customer expectations, e.g., strategic goals and objectives.
• show improvement only after the key processes are improved.

How Are Process Measurables Identified?

Process measurables are best identified by employees connected to your key processes. They
look at events in each key process, and use brainstorming or a similar technique to identify
potential measurables.
For example, if training is a key process, then employees connected to the training process
(trainees, trainers, and human resources) may agree that the percentage of employees
trained is a potential process measurable.

How Are Result Measurables Identified?

Result measurables are identified by reviewing your customer expectations. Result
measurables are direct measures of external and internal customer expectations for cost,
quality, and delivery of your product or service.
For example, if your internal customer expectations (strategic goals and objectives) say you
will reduce variable cost by 5%, reduce customer rejects to 0.5%, and achieve on-time
delivery of 100%, then variable cost, percent customer rejects, and percent on-time
delivery are potential result measurables.
After you identify a list of potential measurables, the next action is to select the measurables
to include in your QOS.

How Are Measurables Selected?

Before you add a measurable to your QOS make sure the measurable is:
of obvious value. . .
The measurable is of obvious importance to managing your business.
actionable. . .
The measurable will help choose a course of action.
accessible. . .
The measurable data is easily accessible.
understandable. . .
Each measurable must be clearly communicated. Explain each measurable in simple, easily
understood terms.
agreed upon. . .
Involving employees connected to the process in determining the process measurables
ensures a focused, team effort.
predictive. . .
Properly chosen process measurables should predict future performance of your result
measurables.
Once you have selected your measurables, you must set goals for each measurable.

How Are Goals Set?

Goals must be set for each measurable. Benchmarking studies, industry standards, statistical
process control, and stretch objectives may be used to set goals for process and result
measurables. Often, goals for result measurables are strategic business imperatives or
contractual agreements with customers, e.g., 95% customer satisfaction or zero quality
rejects, respectively.
Setting goals is often a difficult task. It is important to make sure your goals are:
aggressive, yet attainable. . .
Goals should stretch employees to work faster and smarter; however, goals that appear
unattainable are often demoralizing.
agreed upon. . .
Involving stakeholders in setting goals ensures a focused, team effort in attaining the goals.
clearly benefiting your business. . .
Too often goals are set without considering resource constraints (people, time, and money).
flexible. . .
To further continual improvement, goals will change over time. Goals may change due to
improved internal performance, competition, or customer requirements.
Now, let's look at Pat's QOS to help you better understand the selecting measurables step
of the QOS wheel.

Example: Pat's Weight

What are the measurables for Pat's weight problem? What are good process measurables?
What are good result measurables?
To identify process measurables, Pat looked at the key processes. Pat wondered, "How can I
measure diet and exercise?" Pat and Pat's Doctor agreed that good choices for process
measurables were to measure the number of calories consumed and the number of
minutes exercised.

Key Processes Process Measurables

• diet • number of calories consumed

• exercise • number of minutes exercised

To identify result measurables, Pat looked at the primary customer expectation. Pat
wondered, "How can I measure the customer expectation, lose weight?" Pat and Pat's
Doctor agreed that a good choice for a result measurable is to measure Pat's weight.

Customer Expectations Result Measurables

• lose weight • Pat's weight

The next step is to set goals for each measurable. Pat's Doctor suggested a goal for Pat's
weight is 175 lbs. To reach 175 lbs., Pat and Pat's Doctor agreed the goal for the number
of calories consumed is to consume less than 2,500 calories per day, and the goal for the
number of minutes exercised is to exercise an average of 30 minutes per day.
Measurable Goal

• Pat's weight • 175 lbs.

• number of calories consumed • less than 2,500 calories per day
• number of minutes exercised • average of 30 minutes per day

Now, let's move to the fourth step of the QOS wheel, tracking trends of measurables.
 TRACKING TRENDS OF
MEASURABLES
The fourth step of the QOS wheel focuses on establishing your QOS
team. Your QOS team reviews the trends of measurables versus goals.
When your measurables fail to meet a goal or indicate an adverse trend,
your QOS team applies structured problem solving.
Who Is on the QOS Team?
At a minimum the QOS team must consist of a QOS chairperson and measurable
champions.
It is imperative the QOS chairperson is a member of management. The QOS chairperson is
responsible for scheduling and leading the on-going QOS review meetings, as well as
preparing meeting agendas and minutes.
Measurable champions are responsible for leading problem solving teams outside of the
QOS review meetings, and preparing the appropriate QOS tools for presenting at the QOS
review meetings. The QOS tools (trend chart and goal, prioritization tool, problem solving
tool, and data over time tool) and their definitions are shown on page 22.

How Frequently Does the QOS Team Meet?

It is recommended you hold your QOS review meetings monthly. Measurable champions
meet with their problem solving teams outside the QOS review meetings as often as
required.

What Is Discussed at a QOS Review Meeting?

Each measurable champion takes a turn presenting to the QOS team. A flowchart of a
measurable champion's presentation is detailed on page 23, and can be summarized as
follows:
The measurable champion begins by reviewing the trend chart and goal. If the trend is
adverse to the goal or not meeting the goal, the measurable champion will review the
prioritization tool, problem solving tool, and data over time tool. If the trend meets the goal,
the measurable champion may choose to discuss additional improvement opportunities.
By implementing and reviewing the QOS tools you will:
• track your progress toward meeting your goals.
• identify potential areas for continual process improvement.
• identify specific improvement actions.
• verify the success of improvement actions.
Now, let's take a look at a QOS review meeting for Pat's QOS (page 24).

QOS Tools

Trend Chart and Goal displays the performance of a measurable over time in comparison
to a goal line.
Prioritization Tool displays data grouped by symptom or cause allowing for the
identification and prioritization of problems, e.g., pareto chart or pie chart.
Problem Solving Tool helps eliminate or alleviate problems. The tool helps identify root
causes and preventive and corrective actions, e.g., TOPS, 8-D, 5-D.
Data Over Time Tool logs instances or occurrences of events over time by symptom or
cause, e.g., Paynter chart.

Measurable Champion's Presentation

Example: Pat's Weight
The QOS team consists of Pat and Pat's Doctor. They agreed to schedule monthly
appointments to monitor Pat's progress. Pat brought in the QOS tools for review at the
monthly appointments.
Trend Charts and Goals
The first step Pat and Pat's Doctor took was to look at the trend charts and goals of Pat's
measurables. Here is the trend chart and goal for the result measurable Pat's weight:

Movement of your trend away from your goal, or lack of progress toward your goal, signals
problems. The trend shows Pat is not making progress in reaching the goal of 175 lbs.
Just as jumping on a scale everyday will not improve Pat's weight, reviewing result
measurables will not improve your business. To improve your result measurables, you must
first improve your key processes. In Pat's case, to improve Pat's weight, Pat must first
improve the key processes, diet and exercise.
Let's look at the key process, diet. Here is the trend chart and goal for the diet process
measurable, number of calories consumed:
The trend shows Pat's diet process is in control and is consistently meeting the goal of
consuming less than 2,500 calories per day. Immediate action is not necessary; however,
Pat should continue to monitor the diet process and look for opportunities for improvement.
Now, let's look at the key process, exercise. Here is the trend chart and goal for the
exercise process measurable, number of minutes exercised:

The trend shows Pat has been falling short of the exercise process goal of exercising an
average of 30 minutes per day. Poor performance in a process measurable usually predicts
poor performance in a result measurable. In other words, if Pat does not gain control of the
exercise process, Pat's weight is not likely to improve.
Prioritization Tool
The next step Pat and Pat's Doctor took was to look at a prioritization tool. Pat chose to use
a pareto chart. Here is the pareto chart showing the reasons Pat did not meet the goal of
exercising an average of 30 minutes per day:

The pareto chart shows the highest frequency reasons Pat did not meet the goal of
exercising an average of 30 minutes per day were:
• watching TV programs.
• major projects at work.
Watching television and working long hours are the areas Pat must look to identify the root
cause(s) for not meeting the goal of exercising an average of 30 minutes per day. By
finding and eliminating the root cause(s) behind the highest frequency reasons, Pat will enact
continual improvement.
Problem Solving Tool
The next step Pat and Pat's Doctor took was to look at the efforts of their problem solving
team. In the normal course of business, the problem solving team consists of a cross-
functional team representing stakeholders in the process. In this example, Pat and Pat's
Doctor comprise the problem solving team.
At the prior month's QOS review meeting, the problem solving team was assigned to look
into increasing the number of minutes Pat exercises per day. They chose to use the Ford 8-D
Team Oriented Problem Solving process. Here is their 8-D summary report:
Root Cause Problem Permanent
Identify Team Containment Description Quantifica- Corrective
Problem and tion and Action and Preventive Congratulate
Action and
Description Timing Verification Corrective Timing Action Team
Action

1) Pat prefers 1) Television

No interim takes up 60% of
watching
action. Pat's free time; Purchase an First 30 minutes
Insufficient television to
1) Pat. exercise bicycle of television per
number of exercising;
Concentrate on and exercise day must be Complete.
minutes exercise
2) Pat's Doctor. permanent while watching watched while
per day. 2) Pat's new job 2) Free time
corrective TV. on exercise bike.
is cutting into reduced by 30%
action.
free time due to new job.

The 8-D summary report identifies the following root causes:

# Pareto Root Cause
Pat prefers watching favorite television programs to
1. Watch TV Programs
exercising.
Major Projects at
2. Pat's new job is limiting the time available for exercise.
Work
The team agreed to first address the #1 root cause, Pat prefers watching favorite television
programs to exercising. The #2 root cause, Pat's new job is limiting the time available for
exercise, will be addressed at a later date.
Many alternatives to address the #1 root cause were discussed by the problem solving team.
The alternatives included: riding a bicycle to work, joining a fitness center, selling the
television, etc. Finally, the team agreed on the following corrective action to eliminate the
identified root cause:
# Corrective Action
1. Purchase an exercise bicycle and exercise while watching television.
Data Over Time Tool
The next step Pat and Pat's Doctor took was to use a data over time tool to verify the
corrective action reduced or eliminated the root cause. Pat chose to use a Paynter chart.
Here is the Paynter chart showing a detailed look at the number of minutes exercised one
month after the corrective action was enacted:

Daily Exercise Log - Minutes of Exercise

1-Jan 8-Jan 15-Jan 22-Jan 29-Jan 5-Feb 12-Feb 19-Feb 26-Feb

Avg. 31 24 26 19 25 34 32 33 31

Mon 35 30 0 0 15 40 25 30 25
Tue 20 0 35 0 0 35 35 35 35
Wed 30 30 20 25 30 25 25 25 35

Thu 35 30 25 35 30 40 35 35 20

Fri 35 10 35 15 25 25 25 25 35

Sat 35 35 35 30 40 40 35 45 30

Sun 25 35 30 30 35 35 45 35 40

The corrective action, purchase an exercise bicycle and exercise while watching
television, was put into place on February 5th. As the Paynter chart shows, Pat began
meeting the goal of exercising an average of 30 minutes per day on February 5th. The
Paynter chart verifies the corrective action resulted in improvement in the process
measurable, number of minutes exercised.

Now, let's move to the fifth step of the QOS wheel, predicting downstream performance.
 PREDICTING DOWNSTREAM
PERFORMANCE
The fifth step of the QOS wheel focuses on establishing correlation of
your process measurables to your result measurables to help predict
downstream performance.
Why Correlate Measurables?
The ultimate success of your QOS depends on your ability to correlate your process
measurables to your result measurables. Remember, result measurables measure your ability
to meet customer expectations. By ensuring a high correlation between your process and
result measurables, you can predict whether or not your processes are capable of meeting
your customer expectations. If your processes are not capable, adjustment or improvement
of your processes is required.

How Do You Establish Correlation?

There are two methods for establishing correlation between your process and result
measurables. The first method, mathematical correlation, is too difficult to explain here. You
may wish to refer to a statistics textbook. We will focus on the second method, visual
correlation. A high correlation between measurables can be established if the measurables
consistently move together in the same direction, or in opposite directions, over time.
Often, improvement in the result measurable trend will lag behind improvement of the
process measurable trend. Consideration for this effect must be given when establishing
correlation.
Now, let's look at Pat's QOS to further understand the predicting downstream
performance step of the QOS wheel.

Example: Pat's Weight

To evaluate the correlation of process measurables to result measurables, let's compare the
process measurable, number of minutes exercised, to the result measurable, Pat's weight,
at the end of February. First, let's look at the process measurable trend:

As the chart shows, the process measurable trend for number of minutes exercised
reflects an improvement beyond the goal of exercising an average of 30 minutes per day
after the corrective action was implemented on February 5th.
Now, let's look at the result measurable trend:
As the chart shows, the result measurable trend for Pat's Weight reflects improvement
toward the goal of 175 lbs. after the corrective action was implemented on February 5th.
Improvement in the trend for the number of minutes exercised coincided with
improvement in the trend for Pat's weight. It can be concluded that the measurables are
highly correlated; therefore, improvement in the number of minutes exercised allows you
to predict that Pat's weight will also improve.
Now, let's move to the center of the QOS wheel, constant employee awareness.
 CONSTANT EMPLOYEE AWARENESS
At the center of the QOS wheel is constant employee awareness.
Involvement of all employees ensures their commitment to meeting
customer expectations.
How Can Employees Become Involved?
QOS is a team effort. Participation of employees at all levels will ensure the success of your
QOS. All employees should be aware of the QOS measurables that impact your company's
performance. In addition, management's role is to empower the problem solving teams by
providing resources (people, time, and money) and removing the roadblocks to continual
improvement.
To support the QOS development process, employees may:
• identify and monitor customer expectations.
• identify key processes and develop measurables.
To support the QOS implementation process, employees may:
• gather data for the measurables and supporting tools.
• become a measurable champion.
• participate on problem solving teams.
• attend the QOS review meetings.
Constant employee awareness and participation in the QOS process will ensure employees
are aligned and focused on meeting your customer expectations.
Lastly, let's move to the concept surrounding the QOS wheel, continual process
improvement.
 CONTINUAL PROCESS
IMPROVEMENT
Surrounding the QOS wheel is the concept of continual process
improvement. By developing and implementing a QOS, you will enact a
powerful tool to improve your processes and business, and increase
your customers' satisfaction.
How Are Processes Improved?
QOS review meetings force you to look at and understand the ability of your key processes
to deliver your customer expectations. If your key processes are not delivering your
customer expectations, the QOS methodology initiates a structured problem solving process
to enable you to identify and eliminate the root causes of your process inefficiencies. The
corrective actions taken, and subsequently verified, lead to improved:
• processes.
• customer satisfaction.
• business results.

Conclusion
Now that you have finished the QOS Primer, you should:
• understand the QOS wheel.
• understand QOS terms.
• understand the benefits of a QOS.
Remember, the objective of this primer was to tell you what a QOS is, not to tell you how
to implement a QOS. For additional information on the QOS methodology or how to
implement a QOS, please refer to the appendix.
 APPENDIX

GLOSSARY OF TERMS
8-D Summary Report (8-Discipline Summary Report):

A tool to document the Ford recommended eight steps of a team based problem solving process. See Team
Oriented Problem Solving (TOPS).
Benchmarking:
A process to define what is required for success through comparison with competition or a best-in-class
performer. The comparison results are used to develop strategies and plans for improvement.
Continual Process Improvement:
The result of incremental improvements made to a process by corrective actions identified by problem
solving teams.
Correlation:
A measure of how closely two sets of data move with respect to one another. Two sets of data are
considered to be highly correlated when they tend to move in the same direction (positive correlation) or
opposite directions (negative correlation) over time.
Cross-Functional Team:
A team consisting of members from various functional areas, usually selected by the measurable champion.
Customer Expectations:
A customer's wants or needs. Expectations are typically related to quality, cost, and delivery of a product or
service.

Data Over Time Tool:

A tool used to log instances or occurrences of events over time. The occurrences are identified by symptom
or cause. Example: Paynter chart.
Expressed Customer Expectations:
Customer expectations that are either written, e.g., terms of a contract, or spoken, e.g., voice of the
customer.
External Customer:
Consumers of your information, products, or services. May also include outside agencies, e.g., government
or dealers.
Goals (Performance Targets, Objectives):

The level of performance you would like to achieve. Typically set by a customer expectation, benchmarking
study, or best-in-class data.

Implied Customer Expectations:

Customer expectations that are neither written or spoken by the customer. They are so basic to the product
they need not be mentioned, or they are too difficult for the customer to effectively communicate.
Internal Customer:
Employees downstream in your process who are impacted by your contribution to the product or service.
Also includes management, board of directors and stockholders.
Key Processes:
Processes having the greatest impact on meeting one or more customer expectation.
Measurables:
See process measurables and result measurables.
Measurable Champion:
The measurable champion is responsible for tracking all indicators associated with the measurables he/she
"owns," and for leading the corrective actions required to ensure progress is being made toward the
measurable goal.
Pareto Chart:
A tool used to display data in bar chart form grouped by symptom or cause allowing for the identification
and prioritization of problems.
Paynter Chart:
A tool used to log instances or occurrences of events over time by symptom or cause.
Prioritization Tool:
A tool used to display data grouped by symptom or cause allowing for the identification and prioritization
of problems. Examples: pareto chart, pie chart, histogram.
Problem Solving Team:
A team comprised of cross-functional members who are tasked with identifying a solution to a known
problem.
Problem Solving Tool:

A tool used to eliminate or alleviate problems. The tool supports the identification of root causes and
preventive and corrective actions. Examples: TOPS, 8-D, 5-D.

Process Measurables:
Indicators gaging the degree to which a key process is performing. Process measurables predict result
measurables. Tracking process measurables allows you to be proactive and take specific improvement
actions to improve your process and, therefore, improve your result measurables.
QOS Meeting Chairperson:
The individual responsible for leading the QOS review meetings and ensuring participation of the
measurable champions and the problem solving teams.
Result Measurables:
Indicators gaging how well you are achieving your customer expectations. There is usually little direct
control over result measurables.
Root Cause:
The origin or source of a problem.
Statistical Process Control:
A method using statistical techniques to monitor the performance of a process over time.
Stretch Objective:
An objective set at an appropriate level to maximize employee effort to obtain the objective.
Trend Chart:
A tool displaying the performance of a measurable over time in comparison to a goal line. Through use of a
trend chart to track data over time, adverse trends will alert you to problems.
Team Oriented Problem Solving (TOPS):
TOPS is a problem solving process that uses the 8-Discipline summary report to document the Ford
recommended eight steps of a team based problem solving process.