Science Symposium and Expo 2015 October 21, 2015

Quality Journey from Cost to Value

Tom Hines Dept. Manager - Ada Operations QA

A GLOBAL LEADER The world’s #1 direct selling business

Operates in more than 100 countries and territories

(Direct Selling News Global 100)

2014 global annual sales of USD $10.8 BILLION 21,000 Amway employees support more than 3 million distributors

More than 450 unique, highquality products are manufactured and distributed by Amway

Hold more than 1,000 patents with more than 700 patents pending Offers one of the world's leading business models for entrepreneurs looking for more time, money and flexibility.

Quality Journey from Cost to Value Journey (n): 4. passage or progress from one stage to another

TEST

MEASURE LEAN DESIGN ALIGN Amway Headquarters & Manufacturing Facility Ada, Michigan

Simple View of the Supply Chain

Incoming QC  Ensure Quality  Manage Risk  Protect Facility  Compliance  Feedback  Cost  Time

Product QA  Assure Quality  Manage Risk  Protect Consumers  Compliance  Cost  Time

While the value of quality assurance processes and activities across the supply chain is well established, there still seems to be a wide spread questioning of the cost and time associated with it.

TEST TESTING (n): 6. the process of identifying, detecting or confirming the presence of a constituent of a substance, or of determining the nature of a substance.

Key Progress • Specification review & alignment • Test method interpretation & optimization • New technology - UPLC (ultra high pressure liquid chromatography) - Celsis (rapid micro detection) - XRF (x-ray fluorescence) - “Proofing” (video artwork & text verification) - LIMS system - “Smart” sample carts - “Live” screen displays

• Analyst training program • ISO 17025 certification • Sample vehicles

MEASURE Measure (v): 4. the extent, dimensions, quality, etc., of something, ascertained especially by comparison with a standard.

Key Learnings: • Measure everything  The Few Right Metrics • New QA metrics: - Release Time (days) - Operational Excellence (errors / 106 tests) - Productivity (Lot / FTE / day) - Efficiency ($/Lot)

• Measure from your customers POV - Dispositioned On Time (%) - QA Lead Time (days)

• Plan to average = plan to fail

LEAN Lean Six Sigma (n): a managerial approach that combines Six Sigma methods and tools and the lean manufacturing/lean enterprise philosophy, striving to eliminate waste of physical resources, time, effort and talent, while assuring quality in production and organizational processes.

Key Learnings: • Operational Excellence Initiative • Internal certification (GB & BB) • New employees with lean / 6 backgrounds • Lab processes ideal fit for lean 6 tools - Raw materials - Packaging materials - Bulk & finished product - Sample preparation - Methods

• Staff development • Re-deployment

DESIGN Design (n): a. The purposeful or inventive arrangement of parts or details b. A particular plan or method

Successes

• Sampling process • Lab workflow • Laboratory layout

• Quality organization • Lab workforce design • Batch paperwork flow • Batch release process

Example: Lean / flexible lab design for new factory

• Quality event management (QEM) process

ALIGN Alignment (n): 4. a state of agreement or cooperation among persons, groups, nations, etc. with a common cause or viewpoint.

Key Learnings • Different metrics  Alignment • Different goals  Alignment • Separate communications  Alignment • “Customer”  “Supply Chain Partner”

• Quality products  “consistent supply of quality products”

Looking forward…

Continue to:  Align across the value chain  Leverage technology (instruments & systems)  Optimize workflows and processes

 Maintain gains & ensure robustness of QA controls Amway R&D: Using the Power of Science to help people live better lives.

Thank You

Tom Hines Dept. Manager - Ada Operations QA Amway Corporation [email protected]

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Amway R&D: Using the Power of Science to help people live better lives.