IMPACT2017 Quarter 1

Presented by DQS Inc.

As it has been for most of our customers, it has been a time of change at DQS Inc. Most of our most popular standards are going through a transition, and we are busy helping our customers prepare for them. We started preparing for the immi-nent changes in 2014, and now we find ourselves in the heart of the transitions. Though change can come with resistance, it is usually accepted in time, and especially with changes like this, come with opportunity for improvement.

We will transition over 90% of our customers to the new ISO or Sector specific standards with upgrade audits happening in the next 15 months. We are prepared and committed to support our customers through these upgrades with a dedicated team of Auditors who are qualified and Customer Service Professionals/Planners who are focused on these activities. The coming months will strain Industry capacity so please plan your upgrade, hopefully at your next regular audit, and sched-ule the dates with your Customer Service Professional.

Within the next weeks, we will be issuing a Special Update to Standards to reinforce the timelines for upgrades and help our customers plan the upgrade assessment. Customers that defer the decision to upgrade will have to acknowledge the risks that non-conformances may not be closed and technical review time may mean that certificate will expire. So again, plan now and lock in your audit schedule.

Keeping with the theme of change, we recently had a change in the leadership here at DQS. Ganesh Rao, who has served as President since 2008, decided to leave the company to pursue new challenges in his professional career. We thank Ganesh for his great achievements and wish him success and happiness for the future. Brad McGuire, who has served Vice Presi-dent of Finance since 2008 and more recently as Vice President of Core Services and IT, has assumed the role of President. Mike Brannock, currently Director of our Automotive business, has been promoted to Vice President Core Services. Core Services contains our operational teams responsible for all DQS Programs other than Automotive.

We are happy to serve our faithful customers each day, including our two featured customers in this issue: MISUMI and The Protective Group, A Point Blank Company. You will also find information on long-time customer UOP, where we recently presented a plaque for being a loyal customer for over 20 years.

With Spring upon us and winter behind, we wish you all the best for a great rest of 2017.

Celebrating a Time of Change

On 5/25/2002, MISUMI USA, Inc. was first certified to ISO 9001 with DQS Inc, and just this month they achieved ISO 9001:2015. We recently heard that the company was featured on Worldwide Business with kathy ireland® for their unique business solutions. To celebrate this and the offerings they have, we wanted to feature MISUMI in our newsletter and learn more about their business, from their configurable components to the same day shipping items.

Q: Describe the industry within which MISUMI USA, Inc. operates.

A: MISUMI is a leading manufacturer and distributor of high quality products and innovative engineering solutions to support factory automation, press die, and plastic mold applications. MISUMI has over 220,000 customers worldwide in a vast array of industries including automotive, medical, packaging, appliance, and semi-conductor. MISUMI components can often be found in the plant floor machinery that supports manufacturing processes. We have 24 manufacturing facilities, 13 distribution centers, and over 60 sales offices around the globe.

Q: Why do you stand out from your competition in the industry?

A: MISUMI offers configurable components that help customers reduce cost and save time. By configuring a component in preset increments as fine as a micron, MISUMI is able to produce the component without setup cost and delay, or requiring minimum order quantities. This means customers receive higher quality at a lower cost, with a short, reliable lead time. In addition, MISUMI offers unique tools, service, and resources that support the customer throughout their product lifecycle management

process. This year MISUMI launched Rapid Design, a CAD add-in configuration software that significantly reduces design time and simplifies the procurement process.

Q: What products are offered by MISUMI?

A: MISUMI offers 17,000,000 components, but through the configuration process, there are 80 sextillion individual part numbers. Product examples include linear shafts, locating and ejector pins, actuators, timing pulleys, belts, and more. Recently MISUMI launched a new line of products using the North American Automotive Metric Standard (NAAMS) to further

support the automotive industry. MISUMI continuously listens to the customer to understand them better and develop solutions that meet their specific needs.

Q: I see that MISUMI was recently interviewed by World Business with kathy ireland®. Tell us more about that and how that was initiated.

A: The Worldwide Business with kathy ireland® program is always looking for new or interesting

companies to feature. They approached MISUMI after learning about the unique configurable solution we offer. We flew to Hollywood to film at the studio and meet Ms. Ireland. She was great to work with, and the final segment was extremely professional. The program aired on Bloomberg International and Fox Business News as sponsored programming. The full segment is available on the MISUMI YouTube channel: www.youtube.com/misumiusa.

Q: Describe how you have implemented an attitude of quality into your corporate culture.

A: The organization had to first

understand the adage “If we always do what we’ve always done, we would always get what we always got.” We couldn’t improve further without adjusting our business strategy to compete with the industry leaders. To this end, an increased focus on exceeding the customer’s expectations was communicated from the executive leadership at MISUMI.

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MISUMI USA, Inc.’s Configurable Solutions

MISUMI was recently featured on The Worldwide Business with kathy ireland® to discuss their unique configurable solution.

DQS Inc. began offering the new Audit Manager by rolling out its components as of October 1, 2016. This addition to our current tools, such as SharePoint and the Audit Center, will only enhance our capabilities to yield improvements and user productivity with the help of new technology. Yes, the need for a web-based tool such as the Audit Manager was long awaited, and its arrival will help both auditors and clients to a great extent.

DQS Inc. originally announced the use of the Audit Manager on July 8, 2016 to be used for programs such as ISO 9001:2015, ISO 14001:2015 and TS 16949:2009 and subsequently mandated it to be used effectively for the aforementioned programs from October 1, 2016.

I have been exposed to various Quality Management Systems through the years. Immaterial of the program (ISO, TS, TL or AS,) our clients who had implemented a good Configuration Management System have always proven to be successful, and for the ones that did not have one, it was our recommendation.

For some programs, like TL, it was a mandate. CM is more relevant in the software/hardware world, but it is also defined as a set of interrelated processes, management techniques, and supporting tools to assure conformance to requirements. It also ensures that an organization is making informed business decisions based on the available data.

Looking at ourselves as a Certification Body and the life cycle of our products , whether  it be in the

planning phase, execution phase or the sustaining phase,  there was a long-time need  to adopt these same principles in our management of our audit functions. The way I see it as a Certification Body, we have two customers: our clients

whom we serve and our Accreditation Bodies to whose requirements we have to be compliant.

The Audit Manager is the software solution for recording and evaluating audit data, including the generation of standardized reports for audits performed against ISO 9001:2015, ISO 14001:2015 and TS 16949:2009. It supports functions such as the importing of Customer data from the Corporate Database, the Audit Planning Phase for scheduled audits, and Audit Results. Currently it does not have a phase for Readiness Review (Stage-1 audit). The Audit Manager consists of two views. This

first is a list of scheduled audits assigned to the Lead Auditor from which he/she creates an audit file. The other view is the list of audit files that the Lead Auditor has created for his upcoming audits. The audit file, or otherwise referenced as the audit tool, is where data is entered by the auditor and the tool is capable of capturing the pertinent data for your required deliverables, such as the Audit Plan, Opening and Closing Meeting presentations, Action Plans and the Audit Report. Enhancements have been made since the roll out in July, which now includes the Client’s access to the Audit Manager to facilitate the Lead Auditor in their planning and post audit activities.

The client interface includes two modules: The Planning Phase and the Post Audit Phase.

Planning Phase: The Lead auditor initiates this phase from his view of the Audit Manager (AM,) and the Client receives a notification email with a Username and Password generated from the AM and login link. The client in turn will use the link to log in. Once they are logged in, they will find the audit file that the Lead Auditor had created and open the file, populate their list of QMS processes with their respective KPI’s, and submit them back to the Lead Auditor via the audit tool. The Lead Auditor in turn will receive a notification email and will use the list of QMS processes to prepare his/her Audit Plan in the AM to create a pdf version of the Audit Plan and email same to the client.

Post Audit Phase: Here again the Lead Auditor will initiate this phase

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New Audit Manager Tool Rolled Out in October

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Q: How long have you been certified and to what standards?

MISUMI has been certified to ISO 9001 since May 25, 2002 (15 Years)

Q: What was the driving factor for you to be certified?

A: The driving factor for MISUMI to implement ISO 9001 was to improve the way we do business. This included:

1. Having documented processes & procedures

2. Focusing on improving the customer experience

3. Improving the efficiency and profitability of the US operations

4. Establishing an effective training system, defining roles and responsibilities, and improving supplier relationships.

Q: What benefits do you derive from ISO certification?

A:

• Immediate improvement in the way our organization does business

• Satisfied customers by meeting or

exceeding their requirements

• Increased visibility in the market and global recognition

• Reduction in waste, re-work, and scrap material

• Increased confidence with our customers and suppliers

• Improved bottom line results

Q: What are the most notable changes you have

experienced since implementing your system?

A: Our people have a new focus on quality performance, and productivity levels have continually increased to all-time highs. The morale is much better because employees are proud of their individual contributions as well as the organizational achievements, both of which are recognized globally.

Q: What are some of the biggest challenges you face in your industry and how has the implementation of a quality system helped deal with any of those situations?

A: As we implement our new business strategy, we are still adjusting to the requirements of the many segments. Having ISO 9001 as a foundation has assisted with meeting many of the requirements however, as we penetrate certain markets, additional ISO certifications may be necessary to increase opportunities.

Q: Describe the benefits of working

with DQS.

A: DQS takes pride in offering a unique partnership to support the continuous improvement of MISUMI’s Quality Management Systems. The auditors are very knowledgeable, approachable, and offer recommendations that are beneficial to the organization’s continued success.

Q: What can we look forward to from MISUMI in the future?

A: MISUMI is focused more than ever on our customers, and continually finding new way to bring them value. Our future consists of driving new product innovation based on our customers’ requirements. We continue to drive innovation with the launch of our Rapid Design CAD add-in software, engineers can now configure the MISUMI part they need right within their CAD software and the design they are working on. This

reduces the time to design by 32%. This is a huge savings in an industry where time is money, and there’s nothing else like it on the market. We have aggressive growth plans, and every intention of meeting or exceeding our goals.

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The Protective Group (TPG), a Point Blank Company, is an agile systems integrator and an industry leader in developing survivability solutions for personnel, ground vehicles, shipboard systems and aviation platforms. The company is currently certified to ISO 9001:2008 and AS9100 Rev. C, preparing for the transition for both standards. They credit AS9100 and ISO 9001 for providing the backbone for the overall structure of the Company and the process approach that is taken to ensure customer satisfaction.

TPG has been supplying engineering and advanced technologies to the Military Aircraft market for decades and has over 50 years of body armor innovation. It has developed the Multiple Impact Transparent Armor System (MITAS) composite system, is an expert in vehicle platform integration, and has designed and manufactured high performance structural small arms protective solutions for aircraft carriers and surface ships.

Their transition audit is scheduled for early May 2017. TPG is always eager to demonstrate to its customers its dedication to compliance with standards and regulatory requirements that are applicable to industry. TPG continues to improve its processes and practices in line with emerging technology, customer

needs, and governing agencies. Their customers should always expect that TPG shall quickly adopt and adapt to practices that will enhance their overall experience, along with products and services provided.

Here is how they are preparing for the Rev D Transition:

Early on we established that a strong project plan would be needed to ensure that all requirements from ISO 9001: 2015 and AS9100 Rev. D could be introduced, understood, and implemented. Our Quality System Manager and I communicated with Top Management first to explain and identify changes affecting our QMS and the resources required to effectively implement the changes. Once Top Management had committed to the project, it was communicated to Department Heads and then to employees. The team immediately

understood the initiative.

We identified how the changes of the new standard revisions would impact our processes. We met with each department to ensure that process changes would be made in a manner that would not create an undue hardship on the Company, but embrace them in a manner that would create efficiencies throughout our QMS.

Next, we captured our process changes in our QMS documentation. Our Quality Manual, Quality Objectives, Standard Operating Procedures, Job Descriptions, etc. all had a transition make-over! As we released our documents, we made sure to train all impacted personnel.

An important milestone was creating an internal audit plan that would capture a compliance review of all new requirements, as well as the effectiveness of our process enhancements. Third-party training was scheduled for a newly enriched internal auditor team, and an internal audit plan was put into effect.

The final step prior to the transition audit by DQS would be to address any findings or observations that would come as a result of the internal audit program.

DQS has provided auditing services

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from his view of the AM by sending a request for the responses of the nonconformities generated from the audit. The client will receive an email notification through the AM. The client in turn will open the audit file and complete sections to populate the RCA and Corrective Actions and submit back to the Lead Auditor via the AM.

Like all organizations, we become

accustomed to the way we do things and resistance to change is a universal phenomenon. But this could be overcome through a gradual and careful advancement approach. To further overcome this hurdle, we have provided training through live webinars and continuous support to enhance the productivity gain. Such an approach during the pilot phase had already resulted in the feedback to the owners of the tool

and the benefits we received through the enhanced features of the Audit Manager. Moving forward this may ultimately result in greater and subsequent support for automation in our audit practices and program management. This could significantly improve the chances of success in attaining both the effectiveness and efficiency of our audit functions.  

Carlton PattersonAudit Development Manager  

The Protective Group Prepares for AS9100 Rev D

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UOP Receives 20 Year Plaque for ISO 9001 Certification

2017 Quarter 1 Visit us online at dqsus.com

(left to right) Mr. Stefan Heinloth of DQS Holding GmbH, Jim Glavin of UOP LLC, Ken Vesely of UOP LLC, and Ganesh Rao of DQS Inc.

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for TPG for over 10 years.

They have stayed with DQS that long because they said audit teams have always been well-educated and very prepared and all of DQS, to include customer service, is very professional and attentive to its customers’ needs.

When asked what sets their company apart from competition, the answer was very clear: the team. TPG has a talented group of individuals that is committed to ensuring we exceed customer expectations for quality, reliability, and service. Our Quality Management System (QMS) is not just a list of procedures, but a process approach that has become embedded in the culture. Their diverse team of bright, hard-working, and motivated

individuals always strives to meet customer requirements.

TPG’s QMS is integrated into our indoctrination program and throughout the entire employee life cycle. From day one, they convey to employees the importance of their role and how their responsibilities impact creating a product or producing a service that will save a warfighter. They constantly communicate goals, results, challenges, and improvement plans. They incorporate a risk based approach from concept and design through product realization and post-delivery activities.

Top Management shares positive feedback from our customer base throughout every level of the Company and makes customer

satisfaction a top priority.

The Headquarters, Engineering & Design Center, and Production facilities are located in Miami Lakes, Florida with a Program Office in Huntsville, Alabama. TPG was recently acquired by Point Blank Enterprises, Inc. in November of 2015.

For companies out there looking to become certified to AS9100, TPG would emphasize the importance of engaging Top Management and Department Heads early on in the certification process. It is very important to communicate not only the changes that need to be implemented, but how the Company and Customers shall benefit from the transition.

In 1914, UOP was founded by Jesse Adams Dubbs to commercialize 12 inventions. In the over 100 years since that date, the company has grown to have a global presence and more than 3,000 active patents. In October 3, 2015, Honeywell announced that it acquired a 50 percent stake in UOP, which was closed November 30 to make UOP a wholly-owned subsidiary of Honeywell.

Today UOP has locations around the world with more than 5,000 people, 30 offices, and in 19 countries. UOP continues to be an industry leader.

On September 29, 2016, Ganesh Rao, President and CEO of DQS Inc. and Stefan Heinloth, Managing Director of DQS Holding GmbH, visited UOP LLC in Des Plaines and presented a 20 year anniversary plaque to Jim Glavin, Sr. Director of UOP Equipment. This plaque is

to celebrate 20 years of partnership between the two companies and certification. UOP Equipment started their initial certification to ISO 9001 in 1994.

Since then, the audit service has been expanded to all business areas

in Des Plaines and several domestic and international sites. Multiple experienced auditors from DQS have given constructive advice to improve the Equipment Quality Management System. Currently, DQS is working with Equipment to implement new ISO standard ISO9001:2015.