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Changing Motorola's Quality Culture: The Six Sigma Journey

Explore how Motorola transformed its quality culture through the implementation of Six Sigma, leading to significant improvements in performance and customer satisfaction.

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Changing Motorola's Quality Culture: The Six Sigma Journey

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  1. SIX SIGMA Presented by JOHN A. LUPIENSKI

  2. Quality Journey

  3. Changing Motorola's Quality Culture 1979 "Our Quality Stinks." The environment - A U.S. Centered Company - Japan Inc. Attacking - Quality Control Mindset

  4. Changing Motorola's Quality Culture 1980 • Corporate Quality Officer named Business Leadership - Senior Business Leader - Change in focus 1979 • "Our Quality Stinks."

  5. 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

  6. The Corporate Quality Office Suppliers Customers Business Units Assess Education 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

  7. 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

  8. QSR Manual Guidelines April 1998

  9. 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)

  10. 1981 • 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 Registrar’s 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

  11. 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. Software Quality Assurance 11. Legal and regulatory 12. QS 9000 checklist

  12. 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

  13. A Common Metric Total defects per unit • Count Defects • Independent variable • Ownership

  14. Benchmarking IRS - Tax Advice (phone-in) 100K (66810 ppm) Restaurant Bills Doctor Prescription Writing Payroll Processing 10K Average Company Order Write-up 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)

  15. The Quality Evolution Continues! 1987 • Corporation adopts Six Sigma • 2 year, 10x; 4 year, 100x quality improvement; • Six Sigma by 1992 goal is set

  16. KEY BELIEFS– how we will always act • Constant Respect for People • Uncompromising Integrity 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 OUR FUNDAMENTAL OBJECTIVE (Everyone's Overriding Responsibility Total Customer Satisfaction The Motorola Card

  17. 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 BaldrigeNational Quality Award • U.S. Government sponsored • Privately funded • Promote excellence in business

  18. 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

  19. 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

  20. 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

  21. 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

  22. Six Sigma The Concept

  23. A Traditional View Market Share Sales Growth • Output Variables Profitability Manage the outputs.

  24. A 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.

  25. Different numbers of Opportunities ... A Bit of Statistics ... -1.5 Sigma +1.5 Sigma Lower spec limit upper spec limit Manufacturing Processes 6 Administrative Areas 3.4 ppm or Zero Customers or Suppliers 1.0 2.0 3.0 6.0 7.0 0.0 4.0 5.0 -7.0 -6.0 -5.0 -4.0 -3.0 -2.0 -1.0 = 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 5 - Eliminate defect sources / optimize the process 2 - Identify your customers & their requirements 3 - Determine your needs & suppliers 6 - Continuously improve the Sigma level The Concept of "Six Sigma" at Motorola +

  26. 1 2 3 5 6 7 0 4 -7 -6 -5 -4 -3 -2 -1 Normal Distribution - Gaussian Curve CENSORED =  Sigma =  = Deviation ( Square root of variance ) Axis graduated in Sigma between + / - 1 68.27 % result: 317300 ppm outside (deviation) between + / - 2 45500 ppm 95.45 % between + / - 3 99.73 % 2700 ppm between + / - 4 63 ppm 99.9937 % between + / - 5 0.57 ppm 99.999943 % between + / - 6 99.9999998 % 0.002 ppm

  27. -1.5 Sigma +1.5 Sigma Upper spec. limit Lower spec. limit 3.4 ppm or Zero 3.0 0.0 1.0 2.0 -6.0 -5.0 -1.0 4.0 5.0 6.0 7.0 -7.0 -3.0 -2.0 -4.0 Six Sigma...And the Statistics   Cp > = 2 Reduce the variation: when < = Design 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 ”Sigma’s” (with 6 corresponding to a 3.4 ppm defect level).

  28. Design specification width Cp = 6 Mean - Spec Limit Cpk = Min. 3 Six Sigma...And Capability With a maximum process shift of +/- 1.5 

  29. - Customers or Suppliers: One opportunity per product delivered or per component purchased. - Manufacturing process: Opportunities at each process step) - Administrative areas: Number of opportunities for error for each activity performed The Opportunities...

  30. 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

  31. D.P.M.Op Number of Defects Number of Units =D.P.U = D.P.M.Op. D.P.U x 1000000 Number of Opportunities 1 Opportunity = Sigma 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 )

  32. Sigma 7 6 5 4  DPMOp 3 3.4 233 6210 66810 A Universal Measurement Scale ... On one condition : Calculate the defects and estimate the opportunities in the same way...

  33. Count the Defects 6 = 3.4 dpmo Measurement 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 .

  34. 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 Converting Defect Levels to..... Sigma !

  35. 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 4.6)? • 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

  36. 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 The Impact of Quality: “6 Sigma Suppliers”

  37. = 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 6 3 2 1 5 4 Six Sigma and Continuous Improvement Feedback Process Enter Exit Supplier Customer Activity Needs Product/Service

  38. Process Process Process CUSTOMER SUPPLIER • • • • CUSTOMER SUPPLIER CUSTOMER SUPPLIER step 1 step 2 step 3 RECORD RECORD RECORD RECORD RECORD DEFECTS DEFECTS DEFECTS DEFECTS DEFECTS TREND CHART PROCEDURE GOAL T I M E MEASURE RESULTS AND ANALYZE INSTITUTIONALIZE PROBLEM SOLVE BRAINSTORMING/ PARETO ANALYSIS/ ROOT CAUSE ACTION PLAN IDENTIFICATION Action Name Date 100% CONTINUOUS IMPROVEMENT MODEL Defect Reduction: “Peeling the Onion” •

  39. 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 T C S Culture of Excellence

  40. Deployment

  41. The Process for Deployment • Management involvement • Empowered teams • Statistical “black belts”

  42. 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.

  43. 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

  44. 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.

  45. 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

  46. 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

  47. 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

  48. 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

  49. 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

  50. 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

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