Critical to Quality Aligning Improvement/ Design Efforts with Customer Requirements
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Critical to Quality Aligning Improvement/ Design Efforts with Customer Requirements

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  • 2 (Rogers cover page Strengths in Technology) Rogers Corporation develops and manufactures proprietary high tech materials for growing markets. Rogers’ products are found everywhere. From your car, to your cell telephone, to the ATM you used today, and the plane you will travel on tomorrow; - even in your shoes. There is also a good chance that you will find Rogers’ materials in your personal digital assistant, your laptop, or the server that runs your office network. Think of Rogers as the provider of superior specialty materials solutions that enable OEMs to focus on design issues to meet their customer demands, Rogers plays a key role in developing and supplying products now, and for the future.  
  • 3 (Focus) Although Rogers manufactures a broad range of specialty materials for a wide range of applications, our focus has been on printed circuit materials and high performance foams for the wireless communications and networking/computing segments of the electronics market. Recently, we have also become interested in some emerging and exciting new wireless automotive applications.  
  • 5 (Printed Circuit Materials Cover page) Rogers develops and manufactures two families of printed circuit materials. The first is flexible laminates, which are used to make flexible circuits and also used for EMI/RFI shielding. The second are high frequency laminates, which are found in a wide spectrum of wireless infrastructure components, including many of the latest broadband applications, as well as high speed computing devices and wireless handheld devices.
  • 7 (Foams cover page) We have three families of high performance foams. Our focus is on specialty applications where non-commodity performance specifications are required or where unique properties need to be engineered for the application.
  • 9 (Polymer Materials and Components cover page) In October 2003 we acquired 3M’s 50% share in our Durel joint venture. Durel manufactures coated phosphor and from that phosphor makes electroluminescent lamps. An EL lamp is only about 12 thousands of an inch thick and is a power efficient planar source of light that results in very even lighting. These characteristics make them ideal for use as backlighting for battery operated handheld devices, displays and keypads. Another growing area of interest is in interior automotive backlighting. Additionally, Durel designs the semiconductor inverter that is needed to power the lamp. As rapidly as practical we are moving our labor intensive Elastomer Components and Floats business to China where we expect to use our cost advantage to gain market share
  • 11 (Sales by Market Pie Chart) This chart depicts the direction in which Rogers has been moving. In 1996, 31% of our business was in communications and computers. It more than doubled to 63% in 2002.
  • 21 (World Map) We have a 20-year-old manufacturing joint venture for high performance foams in Japan and a flex circuit materials manufacturing joint venture in Taiwan. Additionally we have six sales offices throughout Asia. In 2001 we began manufacturing in Suzhou, China, just West of Shanghai. We have leased two buildings and building a third and are moving two of our Elastomer Components Division product lines here . We have been in Europe for over 30 years and have three manufacturing locations in Belgium. All of our sales into Europe from the U.S. go through this portal in Belgium. Of course, we have manufacturing facilities in Connecticut, as well as in Illinois, and Chandler, Arizona.  
  • The “Q”: the “quality” or technical aspect of the change, Six Sigma is a great example. Give other examples if possible. The “A”: the acceptance of the change/six sigma project by the people who will make it happen or not happen. The “E”: the effectiveness of the change/project. The “*” - multiplier factor: ask they to rate their organization on “Q” and “A” on the scale of 1 to 10 and do the math, e.g.,: Q * A = E Q * A = E 8 * 2 = 16 7 * 7 = 49 9 * 2 = 18 7 * 8 = 56 Some may ask why “*” , not “+”. the answer is anything times zero is zero which reflects real life better.
  • Summarize the CAP phases
  • ASK participants if there are other definitions?? EMPHASIZE meeting and exceeding customer expectations. Explain that a CTQ is something REALLY important for the customer
  • Use this slide to explain what this section will be about. We will talk first about identifying customers. Then we will focus on how to get the VOC. Finally we’ll see tools to convert VOC into CTQs. As mentioned before, we still may not get the right CTQs 100% of the time – it depends how well the customer communicates internally.
  • Research Methods Listening posts - For example, customer contact employees, in their regular conversations with customers, will learn individual’s likes, dislikes, problems, and concerns Be a customer - For example, at the Westin Hotel chain, managers have the responsibility of spending weekends at the hotel, as if they were the customer. Customer observation - An American food chain requires each manager to sit in every seat of their restaurant once a month in order to obtain customer observation data. Interviews - Interviews can be either informal in nature, or highly structured Focus groups - This refers to gathering together a group of similar customers who provide a broad range of opinions on the supplier’s performance Surveys - Surveys are comprehensive, data-driven information vehicles that can be helpful in determining customer requirements, as well as performance against those requirements Competitive comparison - By asking the right questions about competitive products or services, surveys and other quantitative methods can be used to gather competitive comparison data. This can be useful in understanding customer perceptions of your strengths and weaknesses relative to others in the market.
  • The purpose of translating VOC is to state customer needs that are unrestricted and unambiguous. The improvement team converts the implied needs embedded in the customer language into needs restated in our language. To transform the verbatim voice of the customer into a need, a set of guidelines are used. These are intended to facilitate the development of clear, concise, measurable statements of the customer’s need. (see next slide) By converting customer feedback into specific needs, you create clear, concise directives for improvement. Use the guidelines above to “hear” what the “voice of the customer” is really saying, and to create specific, measurable needs that will help you achieve customer satisfaction. Examples Correct: Customer gets to the correct person the first time. Incorrect: Add additional menu items to voice system (solution). Correct: Customer receives loan approval on customer request date. Incorrect: Customer wants fast loan (ambiguous – how fast is fast?)
  • Internal customers are those who utilize the output of your process to complete their own process, ultimately supplying the output to the external customer. For example, the mortgage processor prepares a complete, accurate, on-time package of information for the underwriter (internal customer). The underwriter prepares documentation to secure financing. Finally the customer service team prepares the loan for closing with the marketplace customer.
  • We use traditional Six Sigma tools to investigate and eliminate sources of process variation. We perform measurement system analysis to investigate and eliminate sources of measurement process variation.
  • 27 (Stock chart) Our stock has done well compared to the indices. Going forward, we hope our performance will continue to be reflected in the value of our stock.

Critical to Quality Aligning Improvement/ Design Efforts with Customer Requirements Critical to Quality Aligning Improvement/ Design Efforts with Customer Requirements Presentation Transcript

  • Critical to Quality Aligning Improvement/ Design Efforts with Customer Requirements Harry W. Kenworthy Vice President, Manufacturing September 22, 2004
  • Overview
    • Background Info on Rogers
    • Six Sigma (R6S) at Rogers
    • Managing Change
    • Determining Customer CTQs
    • Measurement Systems
    • Sales and Marketing Examples
    • Process Ownership and Accountability
  • Patented Specialty Materials developed from Innovative Technologies for Global Markets Rogers Background Founded in 1832 NYSE listed company 1500+ Worldwide Employees
  • Rogers Specialty Materials
    • Focus
    • Printed Circuit Materials
    • High Performance Foams
  • Printed Circuit Materials Flexible Laminates High Frequency Laminates
  • High Performance Foams Urethane Foams Silicone Foams Polyolefin Foams
  • Polymer Materials & Components Bus Bars & Non Wovens Elastomer Components & Floats Moving some Production to China EL Lamps & Inverters Durel Acquired in Sept. 2003
  • 2003 Worldwide Sales Includes 50% of Joint Venture Sales Other : Canada 1.5%; Latin America 0.8%, and Middle East & Africa 0.8%
  • 2003 Sales By Market (%)* Includes 50% of Joint Venture Sales * Adjusted for continuing businesses
  • Manufacturing Locations* *Including Joint Ventures
    • International Sales
    • Offices:
    • Japan
    • China
    • Hong Kong
    • Taiwan
    • Korea
    • Singapore
    • Belgium
    • USA:
    • Rogers, CT
    • Woodstock, CT
    • Carol Stream, IL
    • (3)Chandler, AZ
    • Europe:
    • (3) Gent, Belgium
    • Asia:
    • (3) Suzhou, China
    • Taipei, Taiwan (RCCT)
    • Nagoya and Mie, Japan (RIC)
    • Hwasung City, Korea (KF Inc.)
  • Six Sigma (R6S) at Rogers
    • Used GE starting in Q3, 2001
    • Initial training involved the top 100 managers in Rogers (7% of total employees):
      • Intro to Six Sigma, CAP, and BPM
    • Since 2002, internally self-sustained, including training
    • Projects are in all areas of Rogers
  • Six Sigma is Holistic Six Sigma Reduce Variation Reduce Costs DMAIC Existing Systems CPD New Jobs New Technology Shainin Red X Lean Tools Shainin Green Y Marketing Process BPM Dashboard Metrics (How we “drive” the business) CAP Manage Change Technical Operational Technical Customer Processes Tools and Strategies to Execute the Process
  • DMAIC IMPROVE ANALYZE DEFINE MEASURE CONTROL
    • Project Charter
    • High Level Process Map
    • Detailed Process Map
    • Customer CTQs
    • Stakeholder Analysis
    • Estimate of Financial Benefits
    • Project Y
    • Performance Stds
    • Data Collection Plan
    • Validated Measurement System
    • Strategy Diagram
    • Performance & Capability Metrics
    • Improvement Goal
    • Prioritize List of all Xs
    • List of Vital Few Xs
    • Review Estimate of Financial Benefits
    • Identify Potential Solutions
    • Pilot the Solution in a real business environment
    • Approved Solution(s)
    • Implementation Plan
    • Operating Tolerances
    • Validated Measurement System
    • Control Plan
    • Updated Change Management Plan
    • Project Closure
  • CPD Process
  • Managing and Accelerating Change Technical Attack Team / Organization / Cultural Attack Q x A = E Business Results Quality of Six Sigma solution times its Acceptance = Effectiveness
  • The Elements of CAP Leading Change: Having a champion who sponsors the change Changing Systems and Structures: Making sure that the management practices are used to complement and reinforce change L e a d i n g C h a n g e Creating A Shared Need: The reason to change, whether driven by threat or opportunity, is instilled within the organization and widely shared through data, demonstration or demand. The need for change must exceed its resistance. Shaping A Vision: The desired outcome of change is clear, legitimate, widely understood and shared. Mobilizing Commitment: There is a strong commitment from key constituents to invest in the change, make it work, and demand and receive management attention. Making Change Last: Once change is started, it endures, flourishes and learning's are transferred throughout the organization. Monitoring Progress: Progress is real; benchmarks set and realized; indicators established to guarantee accountability. S y s t e m s & S t r u c t u r e s
  • Customer CTQs Key measurable characteristics of a product or process that must be met to satisfy customer and shareholder needs CTQ = Critical To Quality
  • Steps To Determining CTQs
        • List customers
        • Define customer segments
        • Narrow list
        • Organize all customer data
        • Translate VOC to specific needs
        • Define CTQs for needs
        • Prioritize CTQs
        • Contain problem if necessary
    Identify Customers Voice Of The Customer (VOC)
    • Review existing VOC data
    • Decide what to collect/ select VOC tools
    • Collect data
    Determine CTQs
  • Select Customer Research Methods INPUT Measure and Prioritize OUTPUT
    • Research Methods:
    • Listening posts
      • Complaints
      • Service Representative feedback
      • Sales Representative feedback
      • Scorecards
    • “ Be a customer”
    • Customer observation
    • Research Methods:
    • Interviews
    • Focus groups
    Little or no customer information Quantified, validated needs and priorities Probe for Understanding Frame Customer Needs
    • High-level qualitative information on customer needs
    • Indicators of what causes dissatisfaction (from complaint data)
    • Direction for where you need additional information gathering
    • Needs and values of a small group of customers
    • Qualitative information about what customers mean—e.g., What is “fast”?
    • Hypotheses about what is important to the customer, which can be used in quantitative studies
    • Research Methods:
    • Surveys
      • Written
      • Electronic
      • In-person
      • Telephone
    • Competitive comparison (from customers’ point of view)
    OUTPUT OUTPUT INPUT INPUT
  • Guidelines For Writing Customer Needs
    • Write the need, not the solution
    • Write the need in complete sentences; examples help
    • Use measurable terms
    • Avoid words like “should” or “must”
    • Be concise
    • Write from a positive perspective
    • Validate the need with the customer
    • Even then, VOC information may still not be accurate!
  • There are many different “voices” that must be considered in determining CTQ’s: External Customers - End users of the product or service. Internal Customers - Utilize the output of your process to complete their own process. Often speak for the external customer. Stakeholders - People or groups who are impacted by or can impact a process, regulators, the community. Voice of the Customer Identify and Prioritize All Customers Customers Shareholders Regulators Government Agencies Other Stakeholders Purchasers/Users of the Product/Service Stakeholders With Requirements of the Product, Service, or Process (Controllership)
  • What’s the big deal about Measurement Systems?
    • Production – machine controls, product outcome
    • Quality Control – what is good or bad?
    • Customers – do we agree and are we measuring the same way?
    • Suppliers – same as Customers
    • R&D – how we develop products – anything we do depends on good measurement systems
    • Specs – they are set based on measurements
    • Etc.
    • In our experience, over 85% of the Measurement Systems that have been investigated weren’t capable!
  • Possible Sources of Measurement Variation   observed =   process +   measurement (Δ P) (Δ M) Must be satisfied 1 st ! Long-term Process Variation Actual Process Variation Repeatability Calibration Stability Linearity Gage Variation Operator Variation Measurement Process Variation Observed Process Variation “ Other” Sources - Environmental - etc. Short-term Process Variation Variation within Sample
  • Six Sigma Applications for Sales & Marketing
    • Product Differentiation
      • Reduce product variation vs. competition
      • Tighter specs vs. competition
      • Less scrap = higher yields
    • Better Responsiveness
      • Mfg lead/cycle time reductions
      • Flexible/increased capacity
      • Prototype speed improvement
      • Design process improvement
  • Six Sigma Applications for Sales & Marketing (con’t)
    • Enhanced Quotation/Costing
    • Enhanced Quote -> Sales Conversion
    • Prospect Management – receiving, qualifying & handling leads
    • Sales Replication – replicating success
    • Product Line Rationalizations
    • Joint Projects with Customers
    • Streamline Process Flows in many areas – Value Stream Mapping
  • Process Ownership & Accountability
    • Process Owners Identified & Involved
    • Integrated in Performance Appraisals
    • BPM – Business Process Management
    • Visual Controls – Large postings, prominent locations, personal pictures
  • Sales & Marketing Level 1 BPM Example Selling Lead Generation & Qualification After Sales Support % new product sales New Market Dev. Proj. Scott Rob Sharon Jeff Marc $ value of publicity # website hits # qualified leads # and value of design-in’s/ Qtr to Qtr sales 13 wk bookings rate Forecast accuracy (Quarterly) Design-outs due to technical issue CRMR % Market Development Product Promotions (Marcom)
  • Another BPM Example Order Fulfillment Post Delivery Support Account Promotion/ Penetration On-time delivery to request Ship & bill error rate # of DIB’s # of Post-delivery support complaints CRM Customer survey ratings # of lost customers/ programs (rolling avg/DSO metrics)
  • Visual Controls
  • Rogers vs S&P 500 & Russell 2000
  • The World Runs Better with Rogers