Regional Innovation – Balancing Social Responsibility with Business Opportunity

1. Regional Innovation – Balancing Social Responsibility with Business Opportunity Michelle Mason, Managing Director, ASQ

2. About the Presenter Michelle Mason Managing Director, ASQ

3. The Issue What is the biggest cost driver for the military? ENERGY! ENERGY!

4. Energy Conservation All branches of the military are looking to energy conservation to reduce their carbon footprint • The military awarded $8.9 billlion in energy contracts last year. • Of that amount, approximately $397.3 million went toward energy saving initiatives.

5. Growth Opportunity

6. Why SR Is Important “BP Oil Spill Confirmed as Worst in US History” “Government to launch criminal probe into BP spill” “BP’s credibility sank as oil spill grew”

7. Growing Interest In SR • Stakeholders seek transparency • World of Instant Information • Government is Getting Involved • Financial Savings

8. The Dilemma How to balance social responsibility against needs of an organization?

9. Quality Can Help

10. Quality Tools • Quality Professionals have the tools needed to drive consensus • Baldrige Criteria • Lean Methods • Six Sigma

11. Baldrige Criteria • Malcolm Baldrige Performance Excellence Criteria

12. Lean Methods • Lean manufacturing principles: • Eliminate non-value-adding activities • Eliminate waste from the business • Lean enterprise principles: • Extend concepts through entire value stream or supply chain

13. Lean Methods • Types of Waste: • Overproduction • Waiting, time in queue • Transportation • Non-value-adding processes • Inventory • Motion • Costs of quality: scrap, rework, inspection • Utilization of human capital

14. Six Sigma • Defect prevention vs defect detection • Customer satisfaction and bottom-line results • Apply anywhere that variation and waste exist • Apply for Innovation and improved customer satisfaction

15. Bottom Line Quality + Social Responsibility = Competitive Advantage

16. Questions?