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United Technologies PowerPoint PPT Presentation


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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 l.jpg

United Technologies

Team 1:

William Buckley

Mike Alcantara

Max Weiss

Michelle Dennis


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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


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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


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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


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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


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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


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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


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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


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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


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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.


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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


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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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