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United Technologies. Team 1: William Buckley Mike Alcantara Max Weiss Michelle Dennis. Introduction. Fortune 500 Company Founded in 1853 Carrier Air Conditioning, Hamilton Aerospace, Otis Elevators, Pratt & Whitney, Sikorsky Helicopter, and UTC Fire and Security, …

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united technologies

United Technologies

Team 1:

William Buckley

Mike Alcantara

Max Weiss

Michelle Dennis

introduction
Introduction
  • Fortune 500 Company
    • Founded in 1853
    • Carrier Air Conditioning, Hamilton Aerospace, Otis Elevators, Pratt & Whitney, Sikorsky Helicopter, and UTC Fire and Security, …
  • 20th largest manufacturer in the US
  • 47th largest employer in the world
    • 220,000 employees in 62 countries
george david ceo
George David, CEO
  • Former Otis Elevator President
    • Promoted to CEO in 1994
  • Closed several plants and laid off more than 20,000 employees
  • Hired Yuzuru Ito
    • UTC’s Quality Guru
    • Worked with David while at Otis Elevator
ace achieving competitive excellence
ACE – Achieving Competitive Excellence
  • Based on Ito’s Philosophy
  • Used to train managers and workforce in the fundamentals of process improvement.
  • Managers are trained to empower production line workers to make quality improvements to
    • products
    • processes
    • working conditions
  • Employee empowerment at the lowest level
ace cont
ACE (cont.)
  • Uses Statistical Analysis
  • Participants evaluated by internal auditors
    • Bronze, Silver, Gold
  • Designed to produce a multitude of small production improvements that are originated by the workforce
  • ACE “Pilots” - identify production and process improvements in their area of expertise
utc s quality vision
UTC’s quality vision
  • A quality-first mindset governs all UTC employee actions.
  • External and internal customers receive innovative products and services that completely satisfy life cycle requirements.
  • Quality improvement is the job of every UTC employee.
  • Based on the Principles of Total Quality
utc s commitments
UTC’s Commitments
  • Performance
    • customer needs and feedback
  • Pioneering Innovation
    • Cultivating its heritage of invention
  • Personal Development
    • Education
  • Social Responsibility
    • Safety, ethics, and environmental issues
  • Shareowner Value
    • Financial Returns
quality improvement results
Quality Improvement Results
  • 600% rise in total returns
  • $1 billion in cost reductions annually
    • Due to Supply Chain Purchasing process improvements
  • In the first six months of 2004
    • Net Income grew 25% to $1.4 billion
    • Net Sales increased 26% to $18.4 billion
  • In 2005
    • Spent $2.9 billion on R&D
    • Net Income of $3.2 billion on revenues of $42.7 billion
quality at ut automotive
Quality at UT Automotive
  • Problems:
    • inconsistent data computations across 90 plants
    • inability to benchmark quality metrics
    • time-consuming manual collection of data
  • Solution:
    • found powerful software tools that gave them
      • Robust multidimensional analysis capabilities
      • With overall ease of use
      • Broad graphics capabilities
ut automotive results
UT Automotive Results
  • Immediate access to multiple layers of data,
  • Shared key indicators that trigger action by plant managers
  • Increased productivity through
    • multi-dimensional analysis,
    • powerful graphical analysis capabilities, and
    • faster, more informed decision making.
david s three classes of improvement
David’s Three Classes of Improvement
  • Quality of Products – Defined by Standard Procedures
    • Quality Control Process Charting (QCPC)
    • 5S => sort, straighten, standardize, sustain, and shine
  • Root Cause Analysis
    • No Band-Aid Solutions
  • Process Re-Engineering
    • minimized the handoffs between operations and operatives => minimized delays, inventories, distance traveled, and costs
references
References
  • http://www.quality.nist.gov/Foundation.htm

The Foundation for the Malcolm Baldrige National Quality Award

  • http://www.utc.com/press/speeches/1997-06-09_david.htm

Remarks of George David, Chairman & Chief Executive Officer. UTC Environment, Health and Safety Conference

  • http://www.businessweek.com/magazine/content/04_43/b3905001_mz001.htm

Business Week, The Unsung CEO

  • http://www.tdwi.org/research/display.aspx?ID=5541

United Technologies Automotive Drives IT Success Through Business Intelligence

  • http://www.utc.com/profile/quality/index.htm

UTC - ACE, Achieving Competitive Excellence through efficiency - hvac, fuel cells, helicopters, security systems, elevators

  • http://www.oligopolywatch.com/2004/12/12.html

Oligopoly profile: United Technologies

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