SIX SIGMA
Copyright Motorola Inc.

Presented by
JOHN A. LUPIENSKI

“Quality Is Our Job, Customer Satisfaction Is Our Duty,...
What We Will Cover
• Motorola Overview
• Quality Journey
• Six Sigma The Concept
• Deployment
• Results
• The Future
• Les...
Motorola Statistics
•
•

24th in Fortune 500

•

1st in Electronics Manufacturing

•

7th in Total Exports

•

Copyright M...
1997 Sales
By Product
LMPS
16%

By Region

Other
10%
GSS
40%

Latin America,
Africa, ROW
13%
Japan
6%
China/
Hong Kong
11%...
The Rules of Engagement
The Past
Product

Customer/Consumer

Business Unit

Enterprise (Motorola)

Motorola

Copyright Mot...
Communications Enterprise

THE
C O M M U N IC A T IO N S
E N T E R P R IS E

PERSO NAL
C O M M U N IC A T IO N S
SECTOR

C...
ACCES
A U T O M O T IV E .C O M P O N E N T ,
CO M PUTER AND
ENERG Y SECTOR

A U T O M O T IV E
& IN D U S T R IA L
E L E ...
SPS
S E M IC O N D U C T O R
PRO DUCTS
SECTO R

T R A N S P O R T A T IO N
SYSTEM S
G RO UP

Systems Electronics
Transport...
Motorola Products
•
•
•
•
•

Cellular Telephones
Two Way Communications
Pagers
Semiconductors
Automotive Electronic Module...
Global Facilities
UNITED KINGDOM

CANADA

GERMANY

Basingstoke, Stotfold, Swindon
Easter Inch, East Kilbride
Cork, Swords
...
Quality Journey

Copyright Motorola Inc.

“Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our ...
Changing Motorola's Quality Culture
1979 "Our Quality Stinks."
The environment
- A U.S. Centered Company
- Japan Inc. Atta...
Changing Motorola's Quality Culture
1979

•

"Our Quality Stinks."

1980 •Corporate Quality Officer named
Business Leaders...
Changing Motorola's Quality Culture
1979 • "Our Quality Stinks."
1980 • Corporate Quality Officer named

1981 • Motorola T...
The Corporate Quality Office
Suppliers

Customers
Business Units
Assess

Education
Quality Reviews
• Short term results

Q...
Changing Motorola's Quality Culture
1979 • "Our Quality Stinks."
1980 • Corporate Quality Officer named

1981 • Motorola T...
QSR Manual

Guidelines

April 1998

Copyright Motorola Inc.

“Quality Is Our Job, Customer Satisfaction Is Our Duty, Custo...
Assessment Vehicle for Total Organization
• Sets a common goal of perfection
• Drives progress to world class standards
• ...
1981 • Began focus on Quality

Q
S
R

1982 • MCQC began a process of biennial QSRs
1986 • Six Sigma Quality and Total Cust...
Quality Subsystems
1.

Quality System Management

2.

New Product / Technology / Service Development Control

3.

Supplier...
Changing Motorola's Quality Culture
1979

• "Our Quality Stinks."

1980

• Corporate Quality Officer named

1981

• Motoro...
A Common Metric

Total defects per unit
• Count Defects
• Independent variable
• Ownership
Copyright Motorola Inc.

“Quali...
Benchmarking
IRS - Tax Advice (phone-in)

100K

(66810 ppm)

10K

Restaurant Bills
Doctor Prescription Writing
Payroll Pro...
The Quality Evolution Continues!
1987 • Corporation adopts Six Sigma
• 2 year, 10x; 4 year, 100x quality improvement;
• Si...
The Motorola Card
KEY BELIEFS– how we will always act
• Constant Respect for People
• Uncompromising Integrity

OUR FUNDAM...
The Quality Evolution Continues!
1987

• Corporation adopts Six Sigma
• 2 year, 10x; 4 year, 100x quality improvement;
Six...
The Quality Evolution Continues!
1987

• Corporation adopts Six Sigma
• 2 year, 10x; 4 year, 100x quality improvement;
Six...
Total Customer Satisfaction Teams
• TDU focused problem solving
• QCC/PPS provided platform
- QCC JUSE
- PPS Government
• ...
Management of the Quality
Improvement Process
1981 – 1986
Diverse quality metrics results in different
improvement goals f...
Other Quality Awards Received *
1992
- Winner: Malaysia National Quality Award
- Winner: NY State Excelsior Quality Award
...
Six Sigma The Concept

Copyright Motorola Inc.

“Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty I...
A Traditional View

Market Share
Sales Growth
Profitability

• Output Variables

Manage the outputs.
Copyright Motorola In...
A Non-traditional View
Product Quality
Service
COQ

• Input Variables

On-Time Delivery
Relationships
Credit Terms
Custome...
The Concept of "Six Sigma" at Motorola
Different numbers of Opportunities ...

A Bit of Statistics ...
-1.5 Sigma

+1.5 Si...
Normal Distribution - Gaussian Curve
RE
D

CE
NS
O

σ =

σ

Sigma = σ = Deviation

2
∑ ( xi − x )

( Square root of varia...
Six Sigma...And the Statistics
-1.5 Sigma +1.5 Sigma
Upper spec. limit

Lower spec. limit

7.0

6.0

5.0

4.0

3.0

2.0

1...
Six Sigma...And Capability
Cp =

Design specification width
6σ
Mean - Spec Limit

Cpk = Min.

σ

3σ
1

2

3

4

5

6

7

8...
The Opportunities...
Different Numbers of Opportunities ...

Manufacturing Process

6σ
Administra tive Areas
Customers or ...
Some Examples of Opportunity
Customer Perspective: 1 opportunity per product delivered
ex. 1 regulator = 1 opportunity
1 c...
Sigma and Opportunities
Num

ber o
f Def
ects
Num
ber o
f Uni = D.P
.U
ts

1 Opp ortu nity =

D.

M.
P.

Op

.O
.P.M

p.

...
A Universal Measurement Scale ...
Sigma

7
6
5
4
On one condition :

ε

3

Calculate the defects and
estimate the opportun...
Measurement With SIGMA Is Simple !!!
Estimate the
Opportunities

Count the
Defects

Follow the Indicator :
Defects per mil...
Converting Defect Levels to..... Sigma !
An Example :
175 defects are identified while
producing 5000 controllers
D.P.U = ...
Six Sigma: An Ambitious Objective?
• Accurate to 99.99966 % ( less than 3.4 defects for each million
opportunities ) could...
The Impact of Quality: “6 Sigma Suppliers”
• 13 wrong drug prescriptions per year
• 10 newborn babies dropped by doctors/n...
Six Sigma and Continuous Improvement
= A structured approach to continuous improvement
( or ”Six steps toward excellence" ...
Defect Reduction: “Peeling the Onion”
SUPPLIER

•

Process
step 1

RECORD
DEFECTS

•

Process
step 2

RECORD
DEFECTS

•

P...
Advantages of This Type of Approach
•
•
•
•
•
•

Have a common language
Sensitize the organization in the use of statistic...
Deployment

Copyright Motorola Inc.

“Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our Futur...
The Process for Deployment
• Management involvement

• Empowered teams

• Statistical “black belts”

Copyright Motorola In...
Why Have We Been Successful...
The Management Process!
• High level of management commitment and
involvement.
• Aggressive...
Management Leadership
DATED JAN 15, 1987
IMPROVE PRODUCT AND SERVICES QUALITY • • • •
Ten times by 1989 and at least 100 f...
Why We Have Been Successful...
The Management Process!
• Quality improvement goals and plans
integrated into business plan...
Management of the Improvement Process
• Corporate review of Sectors quarterly
• Sector review of Group monthly
• Group rev...
Employee Involvement Requires
• Awareness
– How are we doing?
– How are the best in class doing?

• Training
– Tools, Meth...
Empowered Teams
• It’s a business-driven process, not a human relations
program
• It starts with senior management - can’t...
Worldwide TCS Team Count
1997
1996
1995
1994
1993
1992
1991
1990
0
Copyright Motorola Inc.

2000

4000

6000

“Quality Is ...
A Black Belt Is . . .
An Individual from Any Discipline with
Advanced Statistical, Quality, and
Interpersonal Skills
An Ex...
A Black Belt Will . . .
Drive the Effective Use of Statistical Methods
through Leadership, Training , and
Consultation
Ide...
Use of Six Sigma Black Belts
• Highly trained in statistical tools
• Act as consultants / change agents
• Recognized as sk...
Black Belt Training
• Green Belt
– Utilize Statistical & Quality Techniques
– 2%-5% of Time (1-2 hrs/week) Consulting/Trai...
Corporate Commitment
“Motorola is committed to developing these leaders. We owe it to our
customers and to our stockholder...
History of Six Sigma Black Belt Program
•
•
•
•
•
•
•
•
•
•
Copyright Motorola Inc.

1990 - Motorola DOE Symposium Committ...
Expectations of Six Sigma Black
Belts
•
•
•
•
•
•
•

Problem solving leadership
Improvement change agents
Drive use of sta...
Barrier Breakthrough Plan
Pareto, Brainstorming, C&E, BvC
SIGMA

8D, 7D, TCS Teams, SPC

100.00

5.3

DOE, DFM, PC

5.4

D...
How does one become ‘Belted’
Phase 1: Candidate Identification and Mentor Structure
Identify candidate
Management sponsors...
Core

GBM
GBM
GBM
GBM
GBM
GBM
GBM
GBM
GBM
GBM
BM
BM
BM
BM
BM
M
M
M

Statistical Skills
Statistical Software (JMP, Minitab)...
Six Sigma Black Belt Mentor
Structure
Belt

Sponsorship

Related Projects

Master Black Belt 5 Black Belts

10 / Year

Bla...
Black Belt Roadmap
• Express interest in the program with your
management's approval
• Complete application for candidacy
...
Do other companies have Six Sigma
Black Belt Programs?
• GE has very successfully instituted this program
– 4,000 trained ...
Discussion

Copyright Motorola Inc.

“Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our Futur...
The Cost/Quality Relationship
Six Sigma has shown that the
Highest Quality Producer
is also the
Lowest Cost Producer
Copyr...
Results

Copyright Motorola Inc.

“Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our Future”
And the Results?
1997

5.6σ
Products Manufactured

~ 16Billion

1986

4.2σ

Copyright Motorola Inc.

“Quality Is Our Job, ...
11 Year Journey • • 1987 to 1997
FINANCIAL
Sales Up 5.05x
$29.8 Billion in 1997
• An Average Compounded Growth
Rate of 16....
Cost of Poor Quality Elements
• Inspection and Test
• Rework/Repair
• Scrap
• Warranty

Copyright Motorola Inc.

“Quality ...
The Cost of Poor Quality
16
14

Percent of Sales

12
10
8
6
4
2
0
1986

Copyright Motorola Inc.

1987

1988

1989

1990

1...
Companies Adopting the 6σ Culture
•
•
•
•
•
•
•
•
Copyright Motorola Inc.

General Electric
Eastman Kodak
Allied Signal
Te...
The Future

Copyright Motorola Inc.

“Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our Futur...
Six Sigma Renewal
• Six Sigma the Improvement Process
• Drive Quality from the Customer In
• Customer Factory and Field Re...
Hierarchy Of Customer Satisfaction

VI
S

IO

N

Offensive
Strategy

Gain
Customer
Loyalty

Trust

Innovation &
Implementa...
Top Box Products and Service
Noncompetitive
Zone

High

Telephone Company

Totally
Satisfied

substitutes
• Dominant brand...
The Customer Speaks
Customer Loyalty

Percent Satisfied

Customer Satisfaction
100
90
80
70
60
50
40
30
20
10
0

80%

60%
...
LESSONS
LEARNED

Copyright Motorola Inc.

“Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our ...
Benchmarking Tells Us
There are no secrets to quality.
There are no “Silver Bullets” or short cuts to
good quality.
Qualit...
A Quality Plan’s Key Requirements






A methodology
A metric
Measure a complete
product/service
Accountability



...
Actions Required to
Institutionalize a Quality Process
– TOP DOWN COMMITMENT AND INVOLVEMENT
• Set the example, be active ...
Other Lessons Learned
• Be careful that you don’t get too focused on
winning the metric game.
• Be careful that you don’t ...
Quality
is not an Assignable Task
it must be Rooted and Institutionalized
Within every Step of the
“Business Process”
IT I...
Questions ?

Copyright Motorola Inc.

“Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our Futu...
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  • I will now explain what we mean by Top Box Customer Satisfaction. This concept was originally presented in Harvard Business Review and somewhat forms the backbone of our overall Corporate “Brand Equity” initiative. Basically “top box” equates to achieving total customer satisfaction to the extent that your customer will definitely award your repeat business again and again. From the graph the vertical axis is loyalty ranging from low to high while horizontal axis is degree of customer satisfaction. The noncompetitive zone on the upper left is characterized by regulated monopoly or few substitutes, dominant brand equity, high cost of switching, or proprietary technology where loyalty is quite high regardless of degree of satisfaction. An example is your local telephone companies. Very few people switch local phone service regardless of quality of service We in AECS live in the highly competitive zone where there are second sources readily available. There is low cost and low impact of switching and somewhat consumer indifference.
  • Sixsig

    1. 1. SIX SIGMA Copyright Motorola Inc. Presented by JOHN A. LUPIENSKI “Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our Future”
    2. 2. What We Will Cover • Motorola Overview • Quality Journey • Six Sigma The Concept • Deployment • Results • The Future • Lessons Learned Copyright Motorola Inc. “Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our Future”
    3. 3. Motorola Statistics • • 24th in Fortune 500 • 1st in Electronics Manufacturing • 7th in Total Exports • Copyright Motorola Inc. 1997 Sales $29.8 Billion (42% / 58%) 142,000 Employees in 53 countries “Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our Future”
    4. 4. 1997 Sales By Product LMPS 16% By Region Other 10% GSS 40% Latin America, Africa, ROW 13% Japan 6% China/ Hong Kong 11% MIMS 13% Asia Pacific 9% SPS 21% Copyright Motorola Inc. United States 42% Europe 19% “Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our Future”
    5. 5. The Rules of Engagement The Past Product Customer/Consumer Business Unit Enterprise (Motorola) Motorola Copyright Motorola Inc. The Future Business Unit/Product “Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our Future”
    6. 6. Communications Enterprise THE C O M M U N IC A T IO N S E N T E R P R IS E PERSO NAL C O M M U N IC A T IO N S SECTOR Cellular Phones Pagers  Consumer 2-Way Products  Accessories   Copyright Motorola Inc. NETW O RK M ANAG EM ENT G RO UP Terrestrial Network Operators  Satellite Network Operators  C O M M E R C IA L , G O VERNM ENT A N D IN D U S T R IA L S O L U T IO N S S E C T O R Systems Equipment  Software  Services  Applications  Content   NETW O RK S O L U T IO N S SECTOR Cellular Infrastructures  Satellite Infrastructures  G LO BAL TELECOM S O L U T IO N S G RO UP Global Network Operator Solutions  Integrate PCS & NSS Products  IN T E R N E T A N D N E T W O R K IN G G RO UP Servers S/W Applications  Internet Solutions  Data Networking   “Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our Future”
    7. 7. ACCES A U T O M O T IV E .C O M P O N E N T , CO M PUTER AND ENERG Y SECTOR A U T O M O T IV E & IN D U S T R IA L E L E C T R O N IC S G RO UP Powertrain Controls Autobody Controls  Sensors  Telematics CO M PO NENT PRO DUCTS G RO UP Ceramics Lighting  Quartz Products  Oscillators  SAWs ENERGY SYSTEM S G RO UP Battery Products Battery Chargers  Power Supplies       Copyright Motorola Inc. FLAT PANEL D IS P L A Y D IV IS IO N  Flat Panel Displays M O TO R O LA CO M PUTER G RO UP   Embedded Systems Single Board PCs “Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our Future”
    8. 8. SPS S E M IC O N D U C T O R PRO DUCTS SECTO R T R A N S P O R T A T IO N SYSTEM S G RO UP Systems Electronics Transportation Technology  Industrial CO NSUM ER SYSTEM S G RO UP Imaging Displays & Modems  Storage  Entertainment  Consumer Media W IR E L E S S S U B S C R IB E R SYSTEM S G RO UP Telephony Messaging  Wireless  New Media       Copyright Motorola Inc. NETW O RK AND C O M P U T IN G SYSTEM S G RO UP Modems  Switching  Networking  Customer Equipment  Base Stations  PC Technology  S E M IC O N D U C T O R CO M PO NENTS G RO UP Key Components Distribution  Contract Manufacture  Emerging Markets   “Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our Future”
    9. 9. Motorola Products • • • • • Cellular Telephones Two Way Communications Pagers Semiconductors Automotive Electronic Modules and Components • Modems and Integrated Management Systems • Cellular and Satellite Infrastructure Systems Copyright Motorola Inc. “Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our Future”
    10. 10. Global Facilities UNITED KINGDOM CANADA GERMANY Basingstoke, Stotfold, Swindon Easter Inch, East Kilbride Cork, Swords DENMARK Copenhagen Flensburg, Munich Taunusstein, Dresden FRANCE Angers, Bordeaux, Toulouse CHINA Tianjin Brampton, North York JAPAN Aizu Wakamatsu, Tokyo, Sendai Richmond SOUTH KOREA TAIWAN Seoul Chung-Li MEXICO HONG KONG Kowloon Guadalajara Mexico City Chihuahua ISRAEL COSTA RICA Tel Aviv Arad Guadeloupe BRAZIL Sao Paulo Copyright Motorola Inc. INDIA Bangalore SINGAPORE MALAYSIA PHILIPPINES Manila AUSTRALIA Melbourne Kuala Lumpur Penang, Seremban Adelaide “Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our Future”
    11. 11. Quality Journey Copyright Motorola Inc. “Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our Future”
    12. 12. Changing Motorola's Quality Culture 1979 "Our Quality Stinks." The environment - A U.S. Centered Company - Japan Inc. Attacking - Quality Control Mindset Copyright Motorola Inc. “Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our Future”
    13. 13. Changing Motorola's Quality Culture 1979 • "Our Quality Stinks." 1980 •Corporate Quality Officer named Business Leadership - Senior Business Leader - Change in focus Copyright Motorola Inc. “Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our Future”
    14. 14. Changing Motorola's Quality Culture 1979 • "Our Quality Stinks." 1980 • Corporate Quality Officer named 1981 • Motorola Training Center established • 5 year 10X improvement goal • Corporate Quality Council - Senior Leaders - Common culture - Lead, Teach, Audit Copyright Motorola Inc. “Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our Future”
    15. 15. The Corporate Quality Office Suppliers Customers Business Units Assess Education Quality Reviews • Short term results QSR Process CQO Quality Council - Lead - Teach • Lead - Audit • Teach • Audit Copyright Motorola Inc. Motorola University • Courseware Recommendations on vision and direction Management Board “Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our Future”
    16. 16. Changing Motorola's Quality Culture 1979 • "Our Quality Stinks." 1980 • Corporate Quality Officer named 1981 • Motorola Training Center established • 5 year 10X improvement goal • MCQC • Quality System Review - Common audit tool - Set Standards of Excellence - Process oriented - Set direction, not methods Copyright Motorola Inc. “Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our Future”
    17. 17. QSR Manual Guidelines April 1998 Copyright Motorola Inc. “Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our Future”
    18. 18. Assessment Vehicle for Total Organization • Sets a common goal of perfection • Drives progress to world class standards • Provides an awareness of quality process requirements • Cross-fertilization of ideas (knowledge sharing) • Teaching tool (auditors and auditees) Copyright Motorola Inc. “Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our Future”
    19. 19. 1981 • Began focus on Quality Q S R 1982 • MCQC began a process of biennial QSRs 1986 • Six Sigma Quality and Total Customer Satisfaction introduced 1987 • Software subsystem was added 1988 • QSR was established for surveying suppliers’ quality systems • ISO 9001 Mapped unto QSR 1989 • Weight of scores changed to emphasize Malcolm Baldrige criteria H I S T O R Y Copyright Motorola Inc. 1990 • MCQC approved the use of cross-functional survey teams 1991 • Internal and supplier QSRs are combined into the current QSR forms and the QSR Guidelines 1994 • Updated to include 1994 Revision of ISO 9001 • Significant revisions to Subsystem 9, System 7 1995 • Corporate Quality System Department formed 1996 • Revision 4 includes Registrar’s Certification, Subsystem 11 and QS 9000 Supplement 1997 • Revision 5 - Business Process Focus, QS 9000 approach • SEI Certification of SS 10 “Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our Future”
    20. 20. Quality Subsystems 1. Quality System Management 2. New Product / Technology / Service Development Control 3. Supplier (Internal or External) Control 4. Process Operation and Control 5. Quality Data Programs 6. Problem Solving Techniques 7. Control of Quality Measurement Equipment and Systems 8. Human Resource Involvement 9. Customer Satisfaction Assessment 10. 11. Legal and regulatory 12. Copyright Motorola Inc. Software Quality Assurance QS 9000 checklist “Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our Future”
    21. 21. Changing Motorola's Quality Culture 1979 • "Our Quality Stinks." 1980 • Corporate Quality Officer named 1981 • Motorola Training Center established • 5 year, 10x quality improvement goal set • QSR Implemented 1985 • Communications Sector begins total defect per unit measurement July - Manufactured Products November - Sales Orders Copyright Motorola Inc. “Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our Future”
    22. 22. A Common Metric Total defects per unit • Count Defects • Independent variable • Ownership Copyright Motorola Inc. “Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our Future”
    23. 23. Benchmarking IRS - Tax Advice (phone-in) 100K (66810 ppm) 10K Restaurant Bills Doctor Prescription Writing Payroll Processing Order Write-up Journal Vouchers Wire Transfers Average Company(6210 ppm) 1K Purchased Material Lot Reject Rate Air Line Baggage Handling (233 ppm) 100 10 Best in Class 1 2 3 4 SIGMA Copyright Motorola Inc. Domestic Airline Flight Fatality Rate (3.4 ppm) 5 6 (0.43 ppm) 7 (with ±1.5 Sigma Shift) “Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our Future”
    24. 24. The Quality Evolution Continues! 1987 • Corporation adopts Six Sigma • 2 year, 10x; 4 year, 100x quality improvement; • Six Sigma by 1992 goal is set Copyright Motorola Inc. “Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our Future”
    25. 25. The Motorola Card KEY BELIEFS– how we will always act • Constant Respect for People • Uncompromising Integrity OUR FUNDAMENTAL OBJECTIVE (Everyone's Overriding Responsibility Total Customer Satisfaction KEY GOALS– what we must accomplish • Best in Class —People —Marketing —Technology —Product: Software, Hardware and Systems —Manufacturing —Service • Increased Global Market Share • Superior Financial Results KEY INITIATIVES– how we will do it • Six Sigma Quality • Total Cycle Time Reduction • Product, Manufacturing and Environmental Leadership • Profit Improvement • Empowerment for all, in a Participative, Cooperative and Creative Workplace Copyright Motorola Inc. “Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our Future”
    26. 26. The Quality Evolution Continues! 1987 • Corporation adopts Six Sigma • 2 year, 10x; 4 year, 100x quality improvement; Six Sigma by 1992 goal is set 1988 • Malcolm Baldrige National Quality Award • U.S. Government sponsored • Privately funded • Promote excellence in business Copyright Motorola Inc. “Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our Future”
    27. 27. The Quality Evolution Continues! 1987 • Corporation adopts Six Sigma • 2 year, 10x; 4 year, 100x quality improvement; Six Sigma by 1992 goal is set 1988 • Malcolm Baldrige National Quality Award • Mapped ISO 9001 into QSR 1990 • TCS Team process starts Corporate wide Copyright Motorola Inc. “Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our Future”
    28. 28. Total Customer Satisfaction Teams • TDU focused problem solving • QCC/PPS provided platform - QCC JUSE - PPS Government • Narrow teams vs. broader virtual - Multifunctional - Virtual : problem centered • Competition: National scoring • 1990 First Sector competition • 1991 Corporate Today: 6000 Teams - Customers & Suppliers Copyright Motorola Inc. “Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our Future”
    29. 29. Management of the Quality Improvement Process 1981 – 1986 Diverse quality metrics results in different improvement goals for each operation. 1987 – 1992 Common quality metric results in identical improvement rate goal for all operations. • Manufacturing and non-manufacturing • Administration and operations • Factory and office Copyright Motorola Inc. “Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our Future”
    30. 30. Other Quality Awards Received * 1992 - Winner: Malaysia National Quality Award - Winner: NY State Excelsior Quality Award 1994 - Winner: Israel National Quality Award 1996 - Winner: Singapore National Quality Award * All Patterned after MBNQA Copyright Motorola Inc. “Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our Future”
    31. 31. Six Sigma The Concept Copyright Motorola Inc. “Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our Future”
    32. 32. A Traditional View Market Share Sales Growth Profitability • Output Variables Manage the outputs. Copyright Motorola Inc. “Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our Future”
    33. 33. A Non-traditional View Product Quality Service COQ • Input Variables On-Time Delivery Relationships Credit Terms Customer Training Customer Satisfaction Market Share Sales Growth Profitability • Output Variables Manage the inputs; respond to the outputs. Copyright Motorola Inc. “Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our Future”
    34. 34. The Concept of "Six Sigma" at Motorola Different numbers of Opportunities ... A Bit of Statistics ... -1.5 Sigma +1.5 Sigma Lower spec limit upper spec limit + Manufacturing Processes 6σ Administrative Areas 7.0 6.0 5.0 4.0 3.0 2.0 1.0 0.0 -1.0 -2.0 -3.0 -4.0 -5.0 -6.0 -7.0 3.4 ppm or Zero Customers or Suppliers = A structural approach to continuous improvement ( or “ Six steps toward excellence” ) 1 - Identify the product or service you provide 4 - Define the process for doing work 2 - Identify your customers & their requirements 5 - Eliminate defect sources / optimize the process 3 - Determine your needs & suppliers 6 - Continuously improve the Sigma level Copyright Motorola Inc. “Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our Future”
    35. 35. Normal Distribution - Gaussian Curve RE D CE NS O σ = σ Sigma = σ = Deviation 2 ∑ ( xi − x ) ( Square root of variance ) n −1 = 7 6 5 4 3 2 1 0 -1 -2 -3 -4 -5 -6 -7 Axis graduated in Sigma between + / - 1σ between + / - 2σ 95.45 % 45500 ppm between + / - 3σ 99.73 % 2700 ppm between + / - 4σ 99.9937 % 63 ppm between + / - 5σ 99.999943 % 0.57 ppm between + / - 6σ Copyright Motorola Inc. 68.27 % 99.9999998 % 0.002 ppm result: 317300 ppm outside (deviation) “Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our Future”
    36. 36. Six Sigma...And the Statistics -1.5 Sigma +1.5 Sigma Upper spec. limit Lower spec. limit 7.0 6.0 5.0 4.0 3.0 2.0 1.0 0.0 -1.0 -2.0 -3.0 -4.0 -5.0 -6.0 -7.0 3.4 ppm or Zero  Reduce the variation: when σ < = Design specification width / 12   Stabilize the process, without affecting the variance, Cp > = 2 and to limit the maximum process shift to +/- 1.5σ  Cp > = 2 Cpk > = 1.5  Under these conditions, and in the worst case, there will be no more than a 3.4 ppm  defect (reject) level, with specification limits at 4.5σ on one side and 7.5σ on the other.  Note: One can see that the point corresponding to 6 on the graduated performance scale above is measured in ”Sigma’s” (with 6σ corresponding to a 3.4 ppm defect level). Copyright Motorola Inc. “Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our Future”
    37. 37. Six Sigma...And Capability Cp = Design specification width 6σ Mean - Spec Limit Cpk = Min. σ 3σ 1 2 3 4 5 6 7 8 Cp 0.33 0.66 1 1.33 1.66 2 2.33 2.66 Cpk -0.16 0.16 0.5 0.83 1.16 1.5 1.83 2.16 With a maximum process shift of +/- 1.5 σ Copyright Motorola Inc. “Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our Future”
    38. 38. The Opportunities... Different Numbers of Opportunities ... Manufacturing Process 6σ Administra tive Areas Customers or Suppliers - Customers or Suppliers: One opportunity per product delivered or per component purchased. - Manufacturing process: Σ - Administrative areas: Number of opportunities for error for each activity performed Copyright Motorola Inc. (Opportunities at each process step) “Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our Future”
    39. 39. Some Examples of Opportunity Customer Perspective: 1 opportunity per product delivered ex. 1 regulator = 1 opportunity 1 controller = 1 opportunity Production lines: Regulator = 160 opportunities Controller = 1200 opportunities Form( Payment, Purchase Order, .. ): Number of fields Expedite / Delivery: 1 opportunity / packaging unit Copyright Motorola Inc. “Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our Future”
    40. 40. Sigma and Opportunities Num ber o f Def ects Num ber o f Uni = D.P .U ts 1 Opp ortu nity = D. M. P. Op .O .P.M p. 00 D 000 = es 10 ti U x . tuni or D.P Opp of ber Num A quality level of " 6σ" corresponds to less than 3.4 defects per million Opportunities ( i.e., correct 99.99966 % of the time ) Copyright Motorola Inc. “Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our Future”
    41. 41. A Universal Measurement Scale ... Sigma 7 6 5 4 On one condition : ε 3 Calculate the defects and estimate the opportunities in the same way... DPMOp 3.4 233 6210 66810 Copyright Motorola Inc. “Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our Future”
    42. 42. Measurement With SIGMA Is Simple !!! Estimate the Opportunities Count the Defects Follow the Indicator : Defects per million Opportunities 6σ= 3.4 dpmo Conversion into "Sigma" can be accomplished with the help of a statistical table. Copyright Motorola Inc. “Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our Future”
    43. 43. Converting Defect Levels to..... Sigma ! An Example : 175 defects are identified while producing 5000 controllers D.P.U = 175 / 5000 = 0.035 The manufacture of one controller allows for 1367 defect opportunities. D.P.Op = 0.035 / 1367 = 0.0000256 D.P.M.Op = 25.6 "Sigma" level : 5.55 Copyright Motorola Inc. “Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our Future”
    44. 44. Six Sigma: An Ambitious Objective? • Accurate to 99.99966 % ( less than 3.4 defects for each million opportunities ) could appear excessive....! 99.9% is already VERY GOOD ! But what could happen at a quality level of 99.9% (i.e., 1000 ppm), in our everyday lives (about 4.6σ)? • 4000 wrong medical prescriptions each year • • More than 3000 newborns accidentally falling from the hands of nurses or doctors each year Two long or short landings at American airports each day • 400 letters per hour which never arrive at their destination Copyright Motorola Inc. “Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our Future”
    45. 45. The Impact of Quality: “6 Sigma Suppliers” • 13 wrong drug prescriptions per year • 10 newborn babies dropped by doctors/nurses per year • Two short or long landings per year in all the airports in the U.S. • One lost article of mail per hour Copyright Motorola Inc. “Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our Future”
    46. 46. Six Sigma and Continuous Improvement = A structured approach to continuous improvement ( or ”Six steps toward excellence" ) 1 - Identify the product or service you provide 4 - Define the process for doing work 2 - Identify the customer & their requirements 5 - Eliminate defect sources / optimize the process 3 - Determine your needs & suppliers 6 - Continuously improve the Sigma level Feedback 6 3 Supplier Enter Needs Process Activity 5 Exit 1 Product/Service 2 Customer 4 Copyright Motorola Inc. “Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our Future”
    47. 47. Defect Reduction: “Peeling the Onion” SUPPLIER • Process step 1 RECORD DEFECTS • Process step 2 RECORD DEFECTS • Process step 3 RECORD DEFECTS • CUSTOMER RECORD DEFECTS RECORD DEFECTS TREND CHART PROCEDURE GOAL TIME MEASURE RESULTS AND INSTITUTIONALIZE ANALYZE PROBLEM SOLVE ACTION PLAN Action Name BRAINSTORMING/ PARETO ANALYSIS/ ROOT CAUSE IDENTIFICATION Date 100% CONTINUOUS IMPROVEMENT MODEL Copyright Motorola Inc. • “Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our Future”
    48. 48. Advantages of This Type of Approach • • • • • • Have a common language Sensitize the organization in the use of statistical tools Develop the internal supplier/customer relationship Benchmarking Work on the most significant objectives Promote working in teams Copyright Motorola Inc. T C Culture S of Excellence “Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our Future”
    49. 49. Deployment Copyright Motorola Inc. “Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our Future”
    50. 50. The Process for Deployment • Management involvement • Empowered teams • Statistical “black belts” Copyright Motorola Inc. “Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our Future”
    51. 51. Why Have We Been Successful... The Management Process! • High level of management commitment and involvement. • Aggressive improvement goals set by Management Board and driven down through the organization. • Measurement of the total process from end to end. • Corporate-wide uniform goals and common metrics. • Management accountability for quality improvement. Copyright Motorola Inc. “Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our Future”
    52. 52. Management Leadership DATED JAN 15, 1987 IMPROVE PRODUCT AND SERVICES QUALITY • • • • Ten times by 1989 and at least 100 fold by 1991 Achieve SIX SIGMA CAPABILITY by 1992 With a deep sense of urgency, spread dedication to every facet of the corporation and achieve a culture of continual improvement to ASSURE TOTAL CUSTOMER SATISFACTION. There is only one ultimate goal: zero defects - in everything we do. Signed: MOTOROLA EXECUTIVE COMMITTEE Copyright Motorola Inc. “Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our Future”
    53. 53. Why We Have Been Successful... The Management Process! • Quality improvement goals and plans integrated into business plans. • No formal organization changes to implement. • Part of everyone's job. • Employee empowerment and involvement. • Extensive education and training support. • Recognition and awards. Copyright Motorola Inc. “Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our Future”
    54. 54. Management of the Improvement Process • Corporate review of Sectors quarterly • Sector review of Group monthly • Group review of products monthly • Plant review of manufacturing lines weekly • Manufacturing line review of processes daily • Same measurement - same improvement goal Copyright Motorola Inc. “Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our Future”
    55. 55. Employee Involvement Requires • Awareness – How are we doing? – How are the best in class doing? • Training – Tools, Methodology, Metrics • High expectations – Team goal setting • Communication – Progress and recognition Copyright Motorola Inc. “Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our Future”
    56. 56. Empowered Teams • It’s a business-driven process, not a human relations program • It starts with senior management - can’t be delegated • Employees want to take ownership and become world class producers • You don’t need a crisis to get started • Empowerment affects all functions, not just factories • Done right, it’s an irreversible process Copyright Motorola Inc. “Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our Future”
    57. 57. Worldwide TCS Team Count 1997 1996 1995 1994 1993 1992 1991 1990 0 Copyright Motorola Inc. 2000 4000 6000 “Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our Future”
    58. 58. A Black Belt Is . . . An Individual from Any Discipline with Advanced Statistical, Quality, and Interpersonal Skills An Experienced and Proven Leader in the use Six Sigma Strategies and Tools Copyright Motorola Inc. “Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our Future”
    59. 59. A Black Belt Will . . . Drive the Effective Use of Statistical Methods through Leadership, Training , and Consultation Identify, Develop, and Communicate New Six Sigma Strategies and Tools Actively Identify and Mentor Future Black Belts Copyright Motorola Inc. “Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our Future”
    60. 60. Use of Six Sigma Black Belts • Highly trained in statistical tools • Act as consultants / change agents • Recognized as skilled in an engineering discipline • Strong interpersonal and communication skills • Significant experience with demonstrated results • Continuous learning aptitude Copyright Motorola Inc. “Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our Future”
    61. 61. Black Belt Training • Green Belt – Utilize Statistical & Quality Techniques – 2%-5% of Time (1-2 hrs/week) Consulting/Training – Min. 2 Projects* per Year • Black Belt – – – – Lead use of Statistical & Quality Techniques Mentor Green Belts; Communicate New Techniques 5%-10% of Time (2-4 hrs/week) Consulting/Training Min. 4 Projects* per Year • Master Black Belt – Mentors Green & Black Belts – 80%-100% of Time Consulting/Mentoring/Training *Projects = training classes or project consultations Copyright Motorola Inc. “Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our Future”
    62. 62. Corporate Commitment “Motorola is committed to developing these leaders. We owe it to our customers and to our stockholders. Through IDE, we seek to identify those who have the potential to grow into agents of change. We provide these people with extensive training in statistical and interpersonal tools, and we provide skilled guidance and management support to assure that they are able to build and integrate their capabilities. Once their development has achieved a level worthy of recognition, we even have a term for those exceptional individuals, whose talent, dedication, and courage enable them to accelerate our progress into and beyond the next century. We call these people ‘Six Sigma Black Belts.’” Chris Galvin Copyright Motorola Inc. “Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our Future”
    63. 63. History of Six Sigma Black Belt Program • • • • • • • • • • Copyright Motorola Inc. 1990 - Motorola DOE Symposium Committee organized 1991 - Motorola Six Sigma Research Institute established 1991 - Corporate Six Sigma Black Belt Steering Committee formed 1992 - Initiated an effort between Motorola, TI, IBM, Kodak and others to jointly develop the Six Sigma Black Belt Program 1992 - Six Sigma Technical Institute (SSTI) developed as a required training vehicle for Black Belt candidates 1992 - First Six Sigma Black Belts recognized in Asia and US 1993 - First Six Sigma Black Belt symposium held 1996 - SPS Six Sigma Black Belt Steering committee formed 1996 - “Intro. to Black Belt Program” replaces SSTI as required course 1998 - Motorola Elma leads AIEG/ACCES group wide push for Black Belts - Reintroduces program “Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our Future”
    64. 64. Expectations of Six Sigma Black Belts • • • • • • • Problem solving leadership Improvement change agents Drive use of statistical methods Integrate statistics into discipline area Network for solution reuse Mentor future Belts Continue personal development Copyright Motorola Inc. “Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our Future”
    65. 65. Barrier Breakthrough Plan Pareto, Brainstorming, C&E, BvC SIGMA 8D, 7D, TCS Teams, SPC 100.00 5.3 DOE, DFM, PC 5.4 DPMOp RenewBlack Belt Program (Internal Motorola) 5.5 5.6 5.65 Black Belt Program (External Suppliers) 10.00 Proliferation of Master Black Belts 6 Sigma 1.00 J94 Copyright Motorola Inc. 6 MY95 MY96 J95 MY97 J96 MY98 J97 “Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our Future”
    66. 66. How does one become ‘Belted’ Phase 1: Candidate Identification and Mentor Structure Identify candidate Management sponsorship Master Black Belt Mentor Define Black Belt responsibilities Phase 2: Skill Development Black Belt Orientation Class Personal Skill Development High Impact Improvement Project Phase 3: Recognition Application for recognition Black Belt Recognition Continuous Improvement Copyright Motorola Inc. “Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our Future”
    67. 67. Core GBM GBM GBM GBM GBM GBM GBM GBM GBM GBM BM BM BM BM BM M M M Statistical Skills Statistical Software (JMP, Minitab) MIN101 Numerical and Graphical Techniques MIN101, IBM548 Statistical Process Control AEC506, AEC661, AEC662, AEC663 Process Capability AEC661, AEC662, SCP201 Comparative Tests MIN101, SPC201 Analysis of Variance (ANOVA) ENG998, AEC603 Measurement System Analysis AEC663 Design of Experiments (e.g. Full, Fractional, Taguchi Designs) ENG998, QUA389 Regression (e.g. linear, nonlinear) GBM GBM GBM GBM GBM GBM GBM Six Sigma Quality Skills AIEG QMS QS 9000 AEC279 Customer Satisfaction SSG100, TCS100 Six Steps to Six Sigma SSG100, SSG102CD Concurrent Engineering TCS TCS100 Systemic Approach to Problem Solving QUA392 Team Oriented Problem Solving (8D, 7D, 5P) Core GBM GBM GBM GBM BM BM M M Interpersonal Skills Communication (oral, written) AEC722, DDI121 Team Facilitation DDI170 Coaching and Mentoring LDR380, PER119 Managing Change MGT564, MGT124, PDE532 Leadership MGT561, MGT562, DDI180 Team Building MGT560, MGT562, EC727, MGT155 Instructional/Teaching MOT132 Managing Projects AEC471, MGT839 Statistical Process Characterization Strategies and Techniques ENG227 Statistical Inference MIN101, SPC201 BM BM Quality System Review QUA590 Team Problem Solving NonManufacturing CES103 Design for Manufacturability Confidence Intervals MIN101, SPC201 Probability Concepts and Distributions SPC201 Response Surface Methods QUA393 Screening DOE QUA391 Advanced Problem Solving Strategies and Technologies ENG998 Acceptance Sampling SPC201 Sample Size Estimation BM ENG123, ENG123CD Financial/Economic Quality Issues M BM M Quality Function Deployment M QUA200A, QUA200B, QUA200C Total Quality Management M M Benchmarking BMK220 Product Development Assessment Robust Design of Processes and Products M Copyright Motorola Inc. Core GBM Survival Analysis / Reliability “Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our Future”
    68. 68. Six Sigma Black Belt Mentor Structure Belt Sponsorship Related Projects Master Black Belt 5 Black Belts 10 / Year Black Belt 2 Green Belts 4 / Year Green Belt Find 1 new Green Belt 2 / Year Copyright Motorola Inc. “Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our Future”
    69. 69. Black Belt Roadmap • Express interest in the program with your management's approval • Complete application for candidacy • Interview for program • 5-7 Black Belts in Training • First 4 months 50-60% during training process starting May 4th – See detailed Black Belt Roadmap Development Process • Complete Project assigned (4/year) • Sponsor 2 Green Belts Copyright Motorola Inc. “Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our Future”
    70. 70. Do other companies have Six Sigma Black Belt Programs? • GE has very successfully instituted this program – 4,000 trained Black Belts by YE 1997 – 10,000 trained Black Belts by YE 2000 – “You haven’t much future at GE unless they are selected to become Black Belts” - Jack Welch • Kodak has instituted this program – CEO and COO driven process – Training includes both written and oral exams – Minimum requirements: a college education, basic statistics, presentation skills, computer skills • Other companies include: – Allied Signal – IBM – Navistar Copyright Motorola Inc. -Texas Instruments - ABB - Citibank “Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our Future”
    71. 71. Discussion Copyright Motorola Inc. “Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our Future”
    72. 72. The Cost/Quality Relationship Six Sigma has shown that the Highest Quality Producer is also the Lowest Cost Producer Copyright Motorola Inc. “Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our Future”
    73. 73. Results Copyright Motorola Inc. “Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our Future”
    74. 74. And the Results? 1997 5.6σ Products Manufactured ~ 16Billion 1986 4.2σ Copyright Motorola Inc. “Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our Future”
    75. 75. 11 Year Journey • • 1987 to 1997 FINANCIAL Sales Up 5.05x $29.8 Billion in 1997 • An Average Compounded Growth Rate of 16.9% per Year Profits Up 6.03x $1.18 Billion in 1997 • An Average Compounded Growth Rate of 19.5% per Year Stock Up Over 7.0x • An Average Compounded Growth Rate of 21.3% per Year QUALITY Through Defect Elimination • We have Eliminated > 99.7% of In-Process Defects The COPQ (Cost of Poor Quality) • Reduced > than 84% on a Per Unit Basis Manufacturing Cost Savings • Cumulative Savings over $14 Billion Employee Productivity • Increased 3-Fold: A 12% Per Year Average Product Reliability • MTBF • • Increased 5 - 10 Fold A decade of product quality and productivity Copyright Motorola Inc. “Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our Future”
    76. 76. Cost of Poor Quality Elements • Inspection and Test • Rework/Repair • Scrap • Warranty Copyright Motorola Inc. “Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our Future”
    77. 77. The Cost of Poor Quality 16 14 Percent of Sales 12 10 8 6 4 2 0 1986 Copyright Motorola Inc. 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 “Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our Future”
    78. 78. Companies Adopting the 6σ Culture • • • • • • • • Copyright Motorola Inc. General Electric Eastman Kodak Allied Signal Texas Instruments Citibank Sony ABB plus 30 others who have licensed 6σ training “Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our Future”
    79. 79. The Future Copyright Motorola Inc. “Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our Future”
    80. 80. Six Sigma Renewal • Six Sigma the Improvement Process • Drive Quality from the Customer In • Customer Factory and Field Returns • 5-Nines Reliability Copyright Motorola Inc. “Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our Future”
    81. 81. Hierarchy Of Customer Satisfaction VI S IO N Offensive Strategy Gain Customer Loyalty Trust Innovation & Implementation Anticipate Customer Needs MI S Defensive Strategy SI O N Exceed Customer Expectations Meet Customer Requirements Determine Customer Requirements & Expectations Meet Commitments Identify Customers by Organization by Key Contacts Copyright Motorola Inc. “Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our Future”
    82. 82. Top Box Products and Service Noncompetitive Zone High Telephone Company Totally Satisfied substitutes • Dominant brand equity • High cost of switching • Powerful Loyalty program • Proprietary technology Loyalty • Regulated monopoly or few ACCES Highly Competitive Zone Satisfied Low Completely Dissatisfied • Commoditization or low differentiation • Consumer indifference • Many substitutes • Low cost of switching AECS Satisfaction Completely Satisfied HARVARD BUSINESS REVIEW Nov./Dec. 1995 Copyright Motorola Inc. “Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our Future”
    83. 83. The Customer Speaks Customer Loyalty Percent Satisfied Customer Satisfaction 100 90 80 70 60 50 40 30 20 10 0 80% 60% 55 38 60 50% 40% 30% 44 20% 40 30 10% 18.1% 19.5% 15.7% 6.5% 5.3% 6.0% 0% 1996 % Satisfied Would Continue to Use Motorola in the Future 1997 % Top Box Definitely Would Performance Compared to Competitors Would Recommend Motorola to Colleagues Might Willingness to Repurchase Products in the Future Definitely Would Not Ease of Doing Business 70% 58.3% 57.4% 63.5% 60% 50% 40.3% 40% 50% 35.9% 40% 30% 31.5% 30% 20% 10% 0% 75.9% 74.0% 70% 1995 60% 79.0% 20% 6.7% How we rate in Comparison with the Best Supplier Much Better/ Very Satisfied Copyright Motorola Inc. 1.4% How Satisfied is the Customer with us in Comparison to the Competition Similar/Somewhat Satisfied Much Worse/ Not Satisfied 10% 0% 5.0% Customer Satisfaction with the Ease of Doing Business Very Satisfied Somewhat Satisfied Not Satisfied “Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our Future”
    84. 84. LESSONS LEARNED Copyright Motorola Inc. “Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our Future”
    85. 85. Benchmarking Tells Us There are no secrets to quality. There are no “Silver Bullets” or short cuts to good quality. Quality doesn’t take time, it saves time. It is not only free, it pays dividends. Average company spends close to 25% of its revenue on waste -- non-value added. Quality process applies to the administrative side of business as well. Service companies are not different from manufacturing. Copyright Motorola Inc. “Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our Future”
    86. 86. A Quality Plan’s Key Requirements     A methodology A metric Measure a complete product/service Accountability   Copyright Motorola Inc. (Application -- The Customer View) and ... Reach Out Goals!!! “Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our Future”
    87. 87. Actions Required to Institutionalize a Quality Process – TOP DOWN COMMITMENT AND INVOLVEMENT • Set the example, be active in the audit process – MEASUREMENT SYSTEM TO TRACK PROGRESS • At both macro and micro levels – TOUGH GOAL SETTING (REACH OUT!!) • Benchmark Best-In-Class -- audit often – PROVIDE THE REQUIRED EDUCATION • The “Why” and “How To” – SPREAD THE SUCCESS STORIES Copyright Motorola Inc. “Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our Future”
    88. 88. Other Lessons Learned • Be careful that you don’t get too focused on winning the metric game. • Be careful that you don’t loose sight of the customer’s priorities. • Be careful that you don’t become arrogant. • Look at the cost of defects, not just the number. Copyright Motorola Inc. “Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our Future”
    89. 89. Quality is not an Assignable Task it must be Rooted and Institutionalized Within every Step of the “Business Process” IT IS EVERYONE'S RESPONSIBILITY Copyright Motorola Inc. “Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our Future”
    90. 90. Questions ? Copyright Motorola Inc. “Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our Future”
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