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Zero defect zero excursions
1. 1 • Zero Defects – Zero Excursions • Oct-11 Confidential Proprietary
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MATEL CO., LTD
Zero Defects
Zero Excursions
2. The Forces Driving our Markets to Zero Tolerance
for Quality Defects
A typical electronic application
Automotive has about 300
components
A modern mid-class car
has about 50
electronic applications
SUPPLIER TARGET must have (we are measured)
0 PPM No line disturbance Supplier control
0 Incidents / spikes Safe Launches Fast problem resolution
AverageCarQuality
15.000ppm= 1,5%
Component Quality
1 ppm
AverageCarQuality
500ppm= 0,05%
Component Quality
37 ppB
1. Life Critical Applications: Failure is not an option
AverageApplication
Quality
10ppm
AverageApplication
Quality
300ppm
AverageApplication
Quality
10ppm
2. Auto: OEM requires 10 ppm in average for
Electronic Applications
3. Cost
Delivery
Quality
Quality Delivery
Constrain
Cost
2 Competing Philosophies
Focus on revenue, cost and schedule
and try not to compromise quality
Focus on fundamentals: Reducing cycle time,
reducing waste, reducing variation etc. and
revenue growth and profitability will be a natural
outcome
4. Master the Value Chain & Master the Culture
Value chain
Specifications
technology
Specifications
Product
Product
Engineering
Product
Development
Qualification
Validation
Technology
Qualification
Validation
Product
Logistics
Data Mgt.
Records
Process
Measurements
Electrical equipment
Requirements
management
Risk
management
Advanced
Process
control
Supply chain
management
Yield
analysis
Design
verification
Forward and
Backward
traceability
Models Design for
testability
• All individual activities need to be well balanced and aligned
- company wide program - manage cost/effort vs reward
• Activities need to be proactively optimized
- action before point of no return
Requirements management – Quality systems – Methodologies
BPRE
LSS
5. Zero PPM & Excursion: Transform How We Execute
Net:
The need is customer, risk reduction and economically driven
It requires much deeper ownership and commitment from across the enterprise
A new result intrinsically implies changes in behavior
It is a top priority for the company
5
6. We have the knowledge and capabilities: Better alignment and engaging the
commitment of our entire team are critical success factors in achieving the
transformational results we seek.
Buy-in &
Commitment:
Capability & Alignment
-Skills
-Consistent message
-KPIs
Knowledge
Limited
Results
Improved
Results
Transformational
Results
7. Quality Objectives-Examples
Reduce Variation, Anticipate/Prevent Problems Rather than Wait for and then Fix It
At a BU level
Prevent problems: What we commit to; Zero ppm commitment on new technologies?
At a management level
Reduce variation: Subcons: reduce the number of subcons
Reducing cycle time; How long does it take to sign off a spec?
8. Zero ppm & excursion – What does
it Take?
Required: Quality by construction; built in at the start
“Qualifying” and screening approach are increasingly inadequate
Changes, once product in production are very expensive and time consuming:
Required: Complete holistic approach
Starts at conceptual phase with systematic collection of requirements
Verify against requirements. Fault sources and their implications are analyzed, evaluated
and addressed
Phase gates are a key tool to drive the process
Required: Customer or BU involvement from beginning to end
System level understanding of the environment, issues and potential defects
The product flow: Proactively utilizing best practices
9. What Are the Implications?
Improved business case analysis
Eg. Cost of RMAs (Risk Management Analysis) included in the
business case
If a new technology is being used, it won’t be at zero ppm: How many RMAs do
we expect? # x cost into the business case
Identify and solve the requirements
Eg. When zero ppm is the requirement, the right test coverage is needed
Better knowledge capture
Business processes and methodology knowledge reuse tools
Better analysis and problem solving skills needed
Models, LSS
More rigor in finding and solving problems early
If problems are found in quals, they have to be solved
Rigorous phase gate and qual exit management
10. Our Result is Only as Strong as
the Weakest Link
Operations
Qualification
Project Selection
11. Design for zero defects
FMEA from customer
What are key parameters from customer / market
Redundancy: parallel system > critical for safety critical/medical implantable.
Safe launch: must get this design right before go to production: not second chance
Design Rule Validation and 100% check
Design for analysis
Simulations (top level)
Characterization: True matrix lots for qualification
12. Manufacturing for Zero defects
Process FMEA
Control Plans
SPC
Process Selection/Equipment validation
Process Characterization, Process Improvement, Process Validation
Process Quals
Assembly Characterization and Subcon Management
Process Integration and Improvement
13. Technology for zero defects & excursions
Technology selection by maturity to fit application
Design rules and checkers
Model development
Limits
Reliability Simulation and validation
IP maturity
Qualification
Safe Launch
14. Quality Culture Strategy Deployment
-Steadily Growing our Value-
Increasing Owner Equity
Growing
Revenue
Increasing the
Perceived Value
Managing Cost
to Right Profile
Total Customer
Experience
Messaging &
Predictability
Internal
Efficiency
Critical
Success
Factors
Product
Quality
Customer
Support
Value to
customers
On Time
Delivery
Reducing
Waste
Reducing
Risk
Increasing
Productivity
Solutions
Quality
FAE
CQM’s
Support
Capacity
FA
RMA
Zero PPM
(100PPB)
Zero
Incidents
Commitments
Cycle Time
ICS KOREA
Lowest Cost of
Ownership
(Quality)
MATEL VIETNAM
Inside
Qualifications
Managing
Customer
Expectations
CoNC
Feedback
Design
Spins
RMA Project
Infrastructure
Global Specs
BPRE
LSS
Strategic Competitive Differentiator =
xxxxxxx
15. Quality Culture Strategy Deployment
proposed approach
-Steadily Growing our Value-
Increasing Owner Equity
Growing
Revenue
Increasing the
Perceived Value
Managing Cost
to Right Profile
Total Customer
Experience
Messaging &
Predictability
Internal
Efficiency
Critical
Success
Factors
Product
Quality
Customer
Support
Value to
customers
On Time
Delivery
Reducing
Waste
Reducing
Risk
Increasing
Productivity
Solutions
Quality
FAE
CQM’s
Support
Capacity
FA
RMA
Zero PPM
(100PPB)
Zero
Incidents
Commitments
Cycle Time
ICS KOREA
Lowest Cost of
Ownership
(Quality)
MATEL VIETNAM
Inside
Qualifications
Managing
Customer
Expectations
CoNC
Feedback
Design
Spins
RMA Project
Infrastructure
Global Specs
BPRE
LSS
Strategic Competitive Differentiator =
xxxxxxx
steering board
Executive Sponsor