Title: SIX SIGMA
1SIX SIGMA
Presented by JOHN A. LUPIENSKI
2What We Will Cover
- Motorola Overview
- Quality Journey
- Six Sigma The Concept
- Deployment
- Results
- The Future
- Lessons Learned
3Motorola Statistics
- 1997 Sales 29.8 Billion (42 / 58)
- 24th in Fortune 500
- 1st in Electronics Manufacturing
- 7th in Total Exports
- 142000 Employees in 53 countries
41997 Sales
By Product
By Region
5The Rules of Engagement
The Past
The Future
Customer/Consumer
Enterprise (Motorola)
Business Unit/Product
6Communications Enterprise
- Cellular Phones
- Pagers
- Consumer 2-Way Products
- Accessories
- Terrestrial Network Operators
- Satellite Network Operators
- Systems
- Equipment
- Software
- Services
- Applications
- Content
- Cellular Infrastructures
- Satellite Infrastructures
- Global Network Operator Solutions
- Integrate PCS NSS Products
- Servers
- S/W Applications
- Internet Solutions
- Data Networking
7ACCES
- Powertrain Controls
- Autobody Controls
- Sensors
- Telematics
- Ceramics
- Lighting
- Quartz Products
- Oscillators
- SAWs
- Battery Products
- Battery Chargers
- Power Supplies
- Embedded Systems
- Single Board PCs
8SPS
- Systems Electronics
- Transportation Technology
- Industrial
- Imaging
- Displays Modems
- Storage
- Entertainment
- Consumer Media
- Telephony
- Messaging
- Wireless
- New Media
- Modems
- Switching
- Networking
- Customer Equipment
- Base Stations
- PC Technology
- Key Components
- Distribution
- Contract Manufacture
- Emerging Markets
9Motorola Products
- Cellular Telephones
- Two Way Communications
- Pagers
- Semiconductors
- Automotive Electronic Modules and Components
- Modems and Integrated Management Systems
- Cellular and Satellite Infrastructure Systems
10Global Facilities
GERMANY
UNITED KINGDOM
Flensburg Munich Taunusstein Dresden
Basingstoke Stotfold Swindon
Easter Inch East Kilbride
Cork Swords
DENMARK
FRANCE
Copenhagen
CANADA
Angers Bordeaux Toulouse
Brampton North York
CHINA Tianjin
JAPAN
Aizu Wakamatsu Tokyo Sendai
Richmond
SOUTH KOREA
Seoul
TAIWAN
Chung-Li
HONG KONG
MEXICO
Kowloon
Guadalajara Mexico City Chihuahua
PHILIPPINES
ISRAEL
SINGAPORE
Manila
COSTA RICA
Tel Aviv Arad
Guadeloupe
AUSTRALIA
MALAYSIA
INDIA Bangalore
Melbourne Adelaide
BRAZIL Sao Paulo
Kuala Lumpur Penang Seremban
11Quality Journey
12Changing Motorolas Quality Culture
1979 Our Quality Stinks. The
environment - A U.S. Centered Company -
Japan Inc. Attacking - Quality Control Mindset
13Changing Motorolas Quality Culture
1980 Corporate Quality Officer
named Business Leadership - Senior Business
Leader - Change in focus
1979 Our Quality Stinks.
14Changing Motorolas 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
15The Corporate Quality Office
Suppliers
Customers
Business Units
Education
Assess
Quality Reviews Short term results
Motorola University
QSR Process
CQO
Quality Council
Courseware
- Lead - Teach - Audit
Recommendations on vision and direction
Lead Teach Audit
Management Board
16Changing Motorolas 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
17QSR Manual
Guidelines
April 1998
18Assessment 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)
191981 Began focus on Quality 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 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
Registrars Certification Subsystem 11
and QS 9000 Supplement 1997 Revision 5 -
Business Process Focus QS 9000 approach
SEI Certification of SS 10
Q S R H I S T O R Y
20Quality 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. Software Quality
Assurance 11. Legal and regulatory 12. QS
9000 checklist
21Changing Motorolas 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
22A Common Metric
Total defects per unit
Count Defects
Independent variable
Ownership
23 Benchmarking
IRS - Tax Advice (phone-in)
100K
(66810 ppm)
Restaurant Bills
Doctor Prescription Writing
Payroll Processing
10K
Order Write-up
Average Company
Journal Vouchers
Wire Transfers
(6210 ppm)
1K
Purchased Material Lot Reject Rate
Air Line Baggage Handling
(233 ppm)
100
10
Best in Class
Domestic Airline Flight Fatality Rate
(3.4 ppm)
1
2
3
4
5
6
7
(0.43 ppm)
SIGMA
(with 1.5 Sigma Shift)
24The Quality Evolution Continues!
1987 Corporation adopts Six Sigma 2 year
10x 4 year 100x quality improvement Six
Sigma by 1992 goal is set
25The Motorola Card
26The 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
27The 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
28Total 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
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30Other 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
31Six Sigma The Concept
32A Traditional View
Market Share
Sales Growth
Output Variables
Profitability
Manage the outputs.
33A Non-traditional View
Product Quality
Service
COQ
Input Variables
On-Time Delivery
Relationships
Credit Terms
Customer
Training
Customer Satisfaction
Market Share
Sales Growth
Output Variables
Profitability
Manage the inputs respond to the outputs.
34 The Concept of Six Sigma at Motorola
35Normal Distribution - Gaussian Curve
CENSORED
Sigma Deviation
( Square root of variance )
Axis graduated in Sigma
68.27
between / - 1
result 317300 ppm outside (deviation)
between / - 2
45500 ppm
95.45
between / - 3
99.73
2700 ppm
between / - 4
63 ppm
99.9937
0.57 ppm
between / - 5
99.999943
99.9999998
between / - 6
0.002 ppm
36Six Sigma...And the Statistics
Cp 2
Reduce the variation when specification width / 12
Stabilize the process without affecting the
variance to limit the maximum process shift to
/- 1.5
Cp 2 and 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 4.5
on one side and 7.5 on the other.
Note One can see that the point corresponding to
6 on the graduated performance scale above is
measured in Sigmas (with 6 corresponding to a
3.4 ppm defect level).
37Six Sigma...And Capability
With a maximum process shift of /- 1.5
38The Opportunities...
39Some 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
40Sigma and Opportunities
A quality level of 6 corresponds to less
than 3.4 defects per million Opportunities
( i.e. correct 99.99966 of the time )
41A Universal Measurement Scale ...
On one condition Calculate the defects and
estimate the opportunities in the same way...
42Measurement With SIGMA Is Simple !!!
Estimate the
Opportunities
Follow the Indicator
Defects
per million
Opportunities
Conversion into Sigma can
be accomplished with the help
of a statistical table
.
43Converting Defect Levels to..... Sigma !
44Six 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
4.6)
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
45The 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
46Six Sigma and Continuous Improvement
Feedback
Enter
Process
Exit
Supplier
Customer
Activity
Needs
Product/Service
47Defect Reduction Peeling the Onion
48Advantages 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
T C S
Culture
of
Excellence
49Deployment
50The Process for Deployment
- Management involvement
- Empowered teams
- Statistical black belts
51Why 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.
52Management 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
53Why We Have Been Successful...The Management
Process!
- Quality improvement goals and plans integrated
into business plans. - No formal organization changes to implement.
- Part of everyones job.
- Employee empowerment and involvement.
- Extensive education and training support.
- Recognition and awards.
54Management 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
55Employee 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
56Empowered Teams
- Its a business-driven process not a human
relations program - It starts with senior management - cant be
delegated - Employees want to take ownership and become world
class producers - You dont need a crisis to get started
- Empowerment affects all functions not just
factories - Done right its an irreversible process
57Worldwide TCS Team Count
58A 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
59A 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
60Use 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
61Black 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
62Corporate 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
63History of Six Sigma Black Belt Program
- 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
64Expectations 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
65Barrier Breakthrough Plan
Pareto Brainstorming CE BvC
8D 7D TCS Teams SPC
DOE DFM PC
RenewBlack Belt Program (Internal Motorola)
Black Belt Program (External Suppliers)
Proliferation of Master Black Belts
66How 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
67(No Transcript)
68Six Sigma Black Belt Mentor Structure
69Black Belt Roadmap
- Express interest in the program with your
managements 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
70Do other companies have Six Sigma Black Belt
Programs
- GE has very successfully instituted this program
- 4000 trained Black Belts by YE 1997
- 10000 trained Black Belts by YE 2000
- You havent 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 -Texas Instruments
- IBM - ABB
- Navistar - Citibank
71Discussion
72The Cost/Quality Relationship
Six Sigma has shown that the Highest Quality
Producer is also the Lowest Cost Producer
73Results
74And the Results
1997
5.6
Products Manufactured
Billion
16
1986
4.2
75FINANCIAL
QUALITY
A decade of product quality and productivity
76Cost of Poor Quality Elements
- Inspection and Test
- Rework/Repair
- Scrap
- Warranty
77The Cost of Poor Quality
78Companies Adopting the 6 Culture
- General Electric
- Eastman Kodak
- Allied Signal
- Texas Instruments
- Citibank
- Sony
- ABB
- plus 30 others who have licensed 6 training
79The Future
80Six Sigma Renewal
- Six Sigma the Improvement Process
- Drive Quality from the Customer In
- Customer Factory and Field Returns
- 5-Nines Reliability
81Hierarchy Of Customer Satisfaction
Gain Customer Loyalty
Innovation Implementation
VISION
Anticipate Customer Needs
Exceed Customer Expectations
Meet Customer Requirements
MISSION
Determine Customer Requirements Expectations
Identify Customers by Organization by Key
Contacts
82Top Box Products and Service
Noncompetitive Zone
High
Telephone Company
Regulated monopoly or few substitutes
Dominant brand equity High cost of switching
Powerful Loyalty program Proprietary
technology
Loyalty
ACCESHighly Competitive Zone
Commoditization or low differentiation
Consumer indifference Many substitutes Low
cost of switching
Low
AECS
Completely Satisfied
Completely Dissatisfied
Satisfaction
HARVARD BUSINESS REVIEW Nov./Dec. 1995
83The Customer Speaks
84LESSONS LEARNED
85Benchmarking Tells Us
- There are no secrets to quality.
- There are no Silver Bullets or short cuts to
good quality. - Quality doesnt 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.
86A Quality Plans Key Requirements
- A methodology
- A metric
- Measure a complete product/service
- Accountability
- (Application -- The Customer View)
- and ... Reach Out Goals!!!
87Actions 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
88Other Lessons Learned
- Be careful that you dont get too focused on
winning the metric game. - Be careful that you dont loose sight of the
customers priorities. - Be careful that you dont become arrogant.
- Look at the cost of defects not just the number.
89Quality
is not an Assignable Task
it must be Rooted and Institutionalized
Within every Step of the
Business Process
IT IS EVERYONES RESPONSIBILITY
90Questions