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1. Best Practices for Quality Management in the Telecommunications Industry ENSE627/ENPM647 Spring 2004 Guangming Zhang Graciela Piedras Rowin Andruscavage

2. Presentation Outline Telecom Market Overview Network Evolution What is Quality? Malcom Baldrige categories Vision for the future Lessons learned Conclusions

3. Looking at the telecom past�

4. Then, Challenge came by� Rapid time to market with shorter development and life cycles Very well-educated, technically excellent, multicultural work force

8. Wireless Global Cumulative Subscribers

9. Technology Migration Paths

10. The Benefits of Integrating IPv6

11. Interoperability Tackle resistance to change Cover the areas of more potential to grow. To have a supportive Regulatory environment To offer �cost-effective� solutions, in particular, integrated services Differentiate the offer and the quality depending on the customer. Control the operative costs and have structures to maximize efficiency. Capacity of investiment. To partner with others as required. To offer: Security, Availability, Reliability TelecommunicationsIndustry Needs

12. To be a key force in the global telecommunications industry to improve the quality of products for customers through the collaborative efforts of service providers and suppliers.

13. Quality Is ... More than a collection of tools A state of mind Linking processes to financial results

15. ISO 9001 Fundamentals: Supplier quality assurance: the driving motivator Consistency of process and reduction of variety as business objectives for standards. Documentation of work and training of employees as key delivery methods of consistent performance. Corrective action and problem solving as approach. Why is not enough? Weak on quality improvement / costs and customer-supplier relationships Customer only sees certificate; no levels Too much supplier discretion No cost-based metrics / benchmarking Does not encourage whole-business registrations ISO 9000 is non-prescriptive

16. What Is TL 9000? TL 9000 is a common set of quality system requirements and measurements designed specifically for the Telecom industry, encompassing ISO 9001 and other best practices TL 9000 Quality System Requirements Hardware, Software & Services Best Practices TL 9000 Quality System Measurements Well-defined Comparable Measurements

17. Why Baldrige? Systematic approach to provide an operational definition of the total quality approach to business management. Demonstrate superior business results over time Provides validated, leading-edge practices Defines a model for high-performing businesses Helps companies enhance competitiveness Baldrige criteria are non-prescriptive.

18. A High Performance Business System

19. And, Six Sigma... Six Sigma is a disciplined, statistically-based approach for improving business performance: removing defects that occur in the products, processes and transactions, decreasing the cost of operations and goods sold, and increasing satisfaction of ultimate consumers. Six Sigma is highly prescriptive! Fundamentals: Business problems require multivariate solutions to eliminate multiple causes and factor interactions. Cross functional problems tend to be multivariate. Customer requirements and process performance are the keys for defining sustained performance.

20. Future of Quality? Future quality management systems will combine the best of all systems: ISO 9001 as a lower specification limit; Malcolm Baldrige National Quality Award criteria as a target for achievement; and Six Sigma as the integrating method.

21. Example:Anatomy of the Quality Efforts and changes of Verizon

22. Involvement Communications Outcome Driven Process Focused Provide Stability Reward And Reinforcement Involvement: Coach People To Make Their Own Decisions and Achieve Goals Spend 50% of Time On Top Priority Items In Full View Of Your Team Communications: Listen Be Approachable And Accessible Broadcast the Agenda Encourage Debate �In The Room� Be Enthusiastic 1. Leadership Requirements...

23. Best practices for leadership (1) Have a constancy of purpose and create a sense of urgency Use executive meetings Use quality methods and tools Visit customers Ensure promotion criteria reflect quality values Be open in surfacing problems Define values that are concise and well-focused Communicate values often using various media Ensure senior management demonstrates the quality values

25. Select benchmarking priorities according to critical success Emphasize analysis that correlates market position with the company�s objectives, plans and actions. Connect analysis to decision making Focus on changing fundamental business capabilities Encourage openness and negotiation Conduct effective reviews

26. Develop a systematic process for managing and improving Select goals that fit the business Focus on few annual objectives Ensure that annual objectives are readily measurable Predict the impact on business results.

27. Example: Market Differentiation of Lucent: Quality &Customer Service Excellence

28. 3. Customer and market focus (1)

29. Maintain continuous contact with customers and suppliers through data interchange. Emphasize key points of competitive differentiation. Continuously refine information and its infrastructure Make key information visible Include all stakeholders Benchmark companies outside the industry Customer and market focus (2)

30. Understand what customers want Invest in systems and logistics to support customer-contact Empower customer-contact people Set standards for all aspects of customer interaction Make it easy for customers to complain and provide quick follow up Reduce uncertainty and risk Customer and market focus (3)

31. Correlate customer satisfaction results with internal measures of product and service quality Draw comparisons with world-class leaders, not just direct competitors Use every listening post. Customer and market focus (4)

32. Network Reliability The attribute that correlates HIGHEST to Customer Satisfaction ? RELIABILITY

33. Managing Network Reliability Determine the Appropriate Measurements � Requirements � Objectives Establish Data Collection Systems Analyze Performance Share the Results to Bring about Awareness Take Steps Towards Improvement OSI model - different quality goals distributed between different levels of communications stack: Physical layer: high S/N ratio � need quality components Link layer: low bit error rate via encoding Network layer: quality of service (QoS) guarantees Transport layer: error detection & recovery

34. Examples:

35. 4. Measurement, analysis and knowledge management (1) Develop a specific set of criteria for screening out evidence that the information was built with a plan, rather than being something that just evolved over time Measures has to be developed for all business drivers and goals. Consistency of measures across business units. Include measures of cycle time and productivity or efficiency.

36. Include measures of customer satisfaction, process and output quality. Conduct research to identify correlations between satisfaction measures and financial performance Most of the time in review meetings should be spent analyzing results rather than simply reviewing them. Company should use data to make decisions and solve problems. Measurement, analysis and knowledge management (2)

37. Motorola�s measurements Data is categorized as: Performance (ex. cost of sales, on-time delivery, share of market,annual sales growth) Operational (ex. cost of quality, customer problem solution and view of quality) Metrics are shared using Motorola Compass Knowledge Sharing System.

38. ST procedures

39. 5. Human resource focus HR Organization Matrixed between functional & IPT leads Functional spheres of expertise mapped to processes; should overlap with others Communications tools Human nodes are decision makers in net centric operations e-mail, PIM collaboration, IM, & other infrastructure Management & Technical Proficiency Representation in industrial consortiums, conferences

40. Examples:

41. 6. Process management Online configuration-controlled process docs Store and employ best practices Change board Continuous improvement Example: Standards process (RFC, sample implementation, adoption, certification) Example: CMMI continuous improvement of regulations, standards, deployed hardware, software updates

42. 7. Business results standard/proprietary format acceptance, adaptation, rejection market growth / market share trouble tickets, incompatibility reports adherence to evolution plan

43. Vision for tomorrow Few global standards aligned measurements industry wide application allowing benchmarking capability to tailor to cover specific needs open supporting business excellence Future of Telcom Industry is on Services A services company is built on its reputation... Service Quality

44. �Top 10� Lessons learned 1. Leadership Commitment - Unshakable commitment is critical to success- Create a vision and values statement 2. Cross-functional teamwork and benefits - Cross-functional teamwork in tackling the white  spaces 3. Consistent communications and information - Took great pain to explain - Use organizational primes to close gaps identified through Gap Analysis 4. Pride - A lot of work and a lot of fun

45. 5. Focus on what you do- Organizational readiness must reflect what you  actually do otherwise everything will fall apart under  intense scrutiny 6. Learning and leveraging best practices - Huge learning opportunity - Develop Training requirements and schedule 7. Focus on linkages - Focus on individual categories is not enough 8. Demonstrated Results - Maturity and performance of deployed processes  MUST yield demonstrated results over time �Top 10� Lessons learned

46. 9. Select a total quality management model - Integrate strategic quality goals into the corporate strategic planning process, develop an organization structure to implement it, establish a design team to tailor quality process implementation and prepare a communications plan for quality. 10. Constructive dissatisfaction & continuous improvement - The biggest and most consistent source of  improvement is driving an ongoing constructive  dissatisfaction of our current performance and a  passion for continuous improvement. Benchmark operations against world class quality companies.  �Top 10� Lessons learned

47. How to ensure lasting change A committed unwavering and highly visible leader a well articulated vision, values and business focus a strategic emphasis on direction and education personal responsibility and accountability an accurate, reliable and timely measurement system effective means of communication a systematic way of designing, implementing and leading future changes a commitment to be persistent and flexible based upon what the environment dictates

48. Links/references 2004 Baldrige National Quality Program Criteria for Performance Excellence http://baldrige.nist.gov/PDF_files/2004_Business_Criteria.pdf Zhang, Gunagming; Quality Management in Systems, The Commercial Press, 1998 Draft ITU-T Recommendation X.805 (Formerly X.css), Security architecture for systems providing end-to-end communications http://www.ietf.org/IESG/LIAISON/itut-sg17-ls-x805-end2end-communications.pdf QuEST Forum (http://www.questforum.com AT&T Batting 1000 (ISBN 0-932764-23-1) Juran, Joseph M.; Blanton, Godfrey A.; Hoogstoel, Robert E.; Schilling, Edward G., Juran�s Quality Handbook, Fifth Edition, McGraw-Hill, 1998.