Six Sigma: "Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our Future"

SIX SIGMA
Copyright Motorola Inc.
Presented by
JOHN A. LUPIENSKI
Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our Future
What We Will Cover

Motorola Overview
Quality Journey
Six Sigma The Concept
Deployment
Results
The Future
Lessons Learned
Motorola Statistics
1997 Sales $29.8 Billion (42% / 58%)
24th in Fortune 500
1st in Electronics Manufacturing
7th in Total Exports
142,000 Employees in 53 countries
1997 Sales
By Product
LMPS
16%
By Region
Other
10%
GSS
40%
Latin America,
Africa, ROW
United
13%
Japa
States
n 6%
42%
China/
Hong Kong
11%
MIMS
13%
Asia
Pacific
9%
SPS
21%
Europe
19%
The Rules of Engagement
The Past
The Future
Product
Customer/Consumer
Business Unit
Enterprise (Motorola)
Motorola
Business Unit/Product
Communications Enterprise
THE
C O M M U N IC A T IO N S
E N T E R P R IS E
PERSO NAL
C O M M U N IC A T IO N S
SECTOR
Cellular Phones
Pagers
Consumer 2-Way
Products
Accessories
NETW O RK
M ANAG EM ENT
G RO UP
Terrestrial
Network Operators
Satellite Network
Operators
C O M M E R C IA L ,
G O VERNM ENT
A N D IN D U S T R IA L
S O L U T IO N S S E C T O R
Systems
Equipment
Software
Services
Applications
Content
NETW O RK
S O L U T IO N S
SECTOR
Cellular
Infrastructures
Satellite
Infrastructures
G LO BAL TELECOM
S O L U T IO N S
G RO UP
Global Network
Operator Solutions
Integrate PCS &
NSS Products
IN T E R N E T A N D
N E T W O R K IN G
G RO UP
Servers
S/W Applications
Internet Solutions
Data Networking
ACCES
A U T O M O T IV E .C O M P O N E N T ,
CO M PUTER AND
ENERG Y SECTOR
A U T O M O T IV E
& IN D U S T R IA L
E L E C T R O N IC S
G RO UP
Powertrain Controls
Autobody Controls
Sensors
Telematics
CO M PO NENT
PRO DUCTS
G RO UP
Ceramics
Lighting
Quartz Products
Oscillators
SAWs
ENERGY
SYSTEM S
G RO UP
Battery Products
Battery Chargers
Power Supplies
FLAT PANEL
D IS P L A Y
D IV IS IO N
Flat Panel Displays
M O TO R O LA
CO M PUTER
G RO UP
Embedded Systems
Single Board PCs
SPS
S E M IC O N D U C T O R
PRO DUCTS
SECTOR
T R A N S P O R T A T IO N
SYSTEM S
G RO UP
Systems Electronics
Transportation
Technology
Industrial
CO NSUM ER
SYSTEM S
G RO UP
Imaging
Displays & Modems
Storage
Entertainment
Consumer Media
W IR E L E S S
S U B S C R IB E R
SYSTEM S GRO UP
Telephony
Messaging
Wireless
New Media
NETW ORK AND

C O M P U T IN G
SYSTEM S GRO UP
Modems
Switching
Networking
Customer
Equipment
Base Stations
PC Technology
S E M IC O N D U C T O R
CO M PONENTS
G RO UP
Key Components
Distribution
Contract
Manufacture
Emerging Markets
Motorola Products
Cellular Telephones
Two Way Communications
Pagers
Semiconductors
Automotive Electronic Modules and
Components
Modems and Integrated Management Systems
Cellular and Satellite Infrastructure Systems
Global Facilities
UNITED KINGDOM
CANADA
GERMANY
Basingstoke, Stotfold, Swindon

Easter Inch, East Kilbride
Cork, Swords
DENMARK
Copenhagen
Flensburg, Munich
Taunusstein, Dresden
FRANCE
Angers, Bordeaux,
Toulouse
CHINA
Brampton,
North York
JAPAN
Tianjin
Aizu Wakamatsu,
Tokyo, Sendai
Richmond
SOUTH KOREA
TAIWAN Seoul
Chung-Li
MEXICO
HONG KONG
Kowloon
Guadalajara
Mexico City
Chihuahua
ISRAEL
COSTA RICA
Tel Aviv
Arad
Guadeloupe
BRAZIL
Sao Paulo
INDIA
Bangalore
SINGAPORE
MALAYSIA
PHILIPPINES
Manila
AUSTRALIA
Melbourne
Kuala Lumpur
Penang, Seremban Adelaide
Quality Journey
Changing Motorola's Quality Culture

1979 "Our Quality Stinks."
The environment
- A U.S. Centered Company
- Japan Inc. Attacking
- Quality Control Mindset

1979
"Our Quality Stinks."
1980 Corporate Quality Officer named

Business Leadership
- Senior Business Leader
- Change in focus

1981 Motorola Training Center established

5 year 10X improvement goal
Corporate Quality Council
- Senior Leaders
- Common culture
- Lead, Teach, Audit
The Corporate Quality Office

Suppliers
Customers
Business Units
Assess
Education
Quality Reviews
Short term results
QSR
Process
CQO
Quality Council
- Lead
- Teach
Lead
- Audit
Teach
Audit
Motorola
University
Courseware
Recommendations on
vision and direction
Management Board

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
QSR Manual
Guidelines
April 1998
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)
1981 Began focus on Quality
Q
S
R
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
H
I
S
T
O
R
Y
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
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

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
A Common Metric
Total defects per unit

Count Defects
Independent variable
Ownership
Benchmarking
IRS - Tax Advice (phone-in)
100K
(66810 ppm)
10K
Restaurant Bills
Doctor Prescription Writing
Payroll Processing
Order Write-up
Journal Vouchers
Wire Transfers
Average
Company(6210 ppm)
1K
Purchased Material
Lot Reject Rate Air Line Baggage
Handling
(233 ppm)
100
10
Best in Class
1
SIGMA
Domestic Airline
Flight Fatality Rate
(3.4 ppm)
(0.43 ppm)
(with 1.5 Sigma Shift)
The Quality Evolution Continues!

1987 Corporation adopts Six Sigma
2 year, 10x; 4 year, 100x quality improvement;
Six Sigma by 1992 goal is set
The Motorola Card

KEY BELIEFS how we will always act
Constant Respect for People
Uncompromising Integrity
OUR FUNDAMENTAL OBJECTIVE

(Everyone's Overriding
Responsibility Total Customer
Satisfaction
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

1987
Corporation adopts Six Sigma

1988 Malcolm Baldrige National Quality Award

U.S. Government sponsored
Privately funded
Promote excellence in business

1987
Corporation adopts Six Sigma

1988
Malcolm Baldrige National Quality Award

Mapped ISO 9001 into QSR
1990 TCS Team process starts Corporate wide
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

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
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
Six Sigma The Concept
A Traditional View
Market Share
Sales Growth
Profitability
Output Variables
Manage the outputs.

A Non-traditional View
Product Quality
Service
COQ
Input Variables
On-Time Delivery
Relationships
Credit Terms
Customer
Training
Customer Satisfaction
Market Share
Sales Growth
Profitability
Output Variables
Manage the inputs; respond to the outputs.

The Concept of "Six Sigma" at Motorola

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
7.0
6.0
5.0
4.0
3.0
2.0
1.0
0.0
-1.0
-2.0
-3.0
-4.0
-5.0
-6.0
-7.0
3.4 ppm
or Zero
Customers or Suppliers
= 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
2 - Identify your customers & their requirements
5 - Eliminate defect sources / optimize the process
3 - Determine your needs & suppliers
6 - Continuously improve the Sigma level
2
( xi x )
CE
N
Sigma = = Deviation
SO
RE
D
Normal Distribution - Gaussian Curve
( Square root of variance )
n 1
-1
-2
-3
-4
-5
-6
-7
Axis graduated in Sigma
between + / - 1
68.27 %
between + / - 2
95.45 %
45500 ppm
between + / - 3
99.73 %
2700 ppm
between + / - 4
99.9937 %
63 ppm
between + / - 5
99.999943 %
0.57 ppm
between + / - 6
99.9999998 %
0.002 ppm
result: 317300 ppm outside

(deviation)
Six Sigma...And the Statistics

-1.5 Sigma +1.5 Sigma
Upper spec. limit
Lower spec. limit
7.0
6.0
5.0
4.0
3.0
2.0
1.0
0.0
-1.0
-2.0
-3.0
-4.0
-5.0
-6.0
-7.0
3.4 ppm
or Zero
Cp > = 2
Reduce the variation: when < = Design specification width / 12
Stabilize the process, without affecting the variance,
Cp > = 2 and Cpk > = 1
to limit the maximum process shift to +/- 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).
Six Sigma...And Capability

Cp =
Design specification width

6
Mean - Spec Limit
Cpk = Min.
3
1
Cp
0.33 0.66
1.33
1.66
2.33
2.66
Cpk
-0.16 0.16
0.5
0.83
1.16
1.5
1.83
2.16
With a maximum process shift of +/- 1.5
The Opportunities...
Different Numbers of Opportunities ...
Manufacturing Process
6
Administra tive Areas
Customers or Suppliers
- 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
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
Sigma and Opportunities

Num
ber
of D
efec
Num
ts
ber
of U = D.P
nits .U
1 Opportunity =
D.
p
.O
P.M
.
.Op
M
.
0= D.P
0
0
0
ties
i
100
n
x
.U
ortu
p
D.P
p
fO
o
r
be
m
u
N
A quality level of "6" corresponds t

than 3.4 defects per million Opportu
( i.e., correct 99.99966 % of the tim

A Universal Measurement Scale ...

Sigma
7
6
5
4
On one condition :
Calculate the defects and

estimate the opportunities
in the same way...
DPMOp
3.4
233
6210
66810
Measurement With SIGMA Is Simple !!!

Estimate the
Opportunities
Count the
Defects
Follow the Indicator :

Defects per million Opportunities
6 = 3.4 dpmo
Conversion into "Sigma" can

be accomplished with the help
of a statistical table.
Converting Defect Levels to..... Sigma !

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
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
The 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
Six Sigma and Continuous Improvement

= 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

Feedback
Supplier
Enter
Needs
Process
Activity
Exit 1
Product/Service
Customer
Defect Reduction: Peeling the Onion

SUPPLIER
Process
step 1
RECORD
DEFECTS
Process
step 2
RECORD
DEFECTS
Process
step 3
RECORD
DEFECTS
CUSTOMER
RECORD
DEFECTS
RECORD
DEFECTS
TREND CHART
PROCEDURE
GOAL
TIME
MEASURE
RESULTS AND
INSTITUTIONALIZE
ANALYZE
PROBLEM SOLVE
ACTION PLAN
Action
Name
BRAINSTORMING/
PARETO ANALYSIS/
ROOT CAUSE
IDENTIFICATION
Date
100%
CONTINUOUS IMPROVEMENT MODEL

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
TC
Culture
of
SExcelle
Deployment
The Process for Deployment

Management involvement
Empowered teams
Statistical black belts
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.
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
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.
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
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
Empowered 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
Worldwide TCS Team Count

1997
1996
1995
1994
1993
1992
1991
1990
0
2000
4000
6000
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
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
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
Black 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
Corporate 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
History 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
Expectations 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
Barrier Breakthrough Plan

Pareto, Brainstorming, C&E, BvC
SIGMA
8D, 7D, TCS Teams, SPC
100.00
5.3
DOE, DFM, PC
5.4
DPMOp
RenewBlack Belt Program (Internal Motorola)
5.5
5.6
5.65
Black Belt Program (External Suppliers)
10.00
Proliferation of Master Black Belts
6 Sigma
1.00
J94
MY95
MY96
J95
MY97
J96
MY98
J97
How 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
Core
GBM
GBM
GBM
GBM
GBM
GBM
GBM
GBM
GBM
GBM
BM
BM
BM
BM
BM
M
M
M
Statistical Skills
Statistical Software (JMP, Minitab)
MIN101
Numerical and Graphical Techniques
MIN101, IBM548
Statistical Process Control
AEC506, AEC661, AEC662, AEC663
Process Capability
AEC661, AEC662, SCP201
Comparative Tests
MIN101, SPC201
Analysis of Variance (ANOVA)
ENG998, AEC603
Measurement System Analysis
AEC663
Design of Experiments (e.g. Full,
Fractional, Taguchi Designs)
ENG998, QUA389
Regression (e.g. linear, nonlinear)
Core
GBM
GBM
GBM
GBM
GBM
GBM
GBM
GBM
Six Sigma Quality Skills

AIEG QMS
QS 9000
AEC279
SSG100, TCS100
Six Steps to Six Sigma
SSG100, SSG102CD
Concurrent Engineering
TCS
TCS100
Systemic Approach to Problem
Solving
QUA392
Team Oriented Problem Solving
(8D, 7D, 5P)
Statistical Process Characterization

Strategies and Techniques
ENG227
Statistical Inference
MIN101, SPC201
BM
BM
Confidence Intervals
MIN101, SPC201
Probability Concepts and
Distributions
SPC201
Response Surface Methods
QUA393
Screening DOE
QUA391
Advanced Problem Solving
Strategies and Technologies
ENG998
Acceptance Sampling
SPC201
Sample Size Estimation
BM
ENG123, ENG123CD
Financial/Economic Quality Issues
Robust Design of Processes and

Products
Survival Analysis / Reliability
GBM
GBM
GBM
BM
BM
M
M
Interpersonal Skills
Communication (oral, written)
AEC722, DDI121
Team Facilitation
DDI170
Coaching and Mentoring
LDR380, PER119
Managing Change
MGT564, MGT124, PDE532
Leadership
MGT561, MGT562, DDI180
Team Building
MGT560, MGT562, EC727, MGT155
Instructional/Teaching
MOT132
Managing Projects
AEC471, MGT839
Quality System Review

QUA590
Team Problem Solving NonManufacturing
CES103
Design for Manufacturability
Core
GBM
BM
Quality Function Deployment
QUA200A, QUA200B, QUA200C

Total Quality Management
M
M
Benchmarking
BMK220
Product Development Assessment
Six Sigma Black Belt Mentor

Structure
Belt
Sponsorship
Related Projects
Master Black Belt 5 Black Belts
10 / Year
Black Belt
2 Green Belts
4 / Year
Green Belt
Find 1 new Green Belt
2 / Year
Black Belt Roadmap

Express interest in the program with your management's
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
Do other companies have Six Sigma

BeltthisPrograms?
GE has very Black
successfully instituted
program
4,000 trained Black Belts by YE 1997
10,000 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
Discussion
The Cost/Quality Relationship

Six Sigma has shown that the
Highest Quality Producer
is also the
Lowest Cost Producer
Results
And the Results?

1997
5.6
Products Manufactured
~ 16Billion
1986
4.2
11 Year Journey 1987 to 1997

FINANCIAL
Sales Up 5.05x
$29.8 Billion in 1997
An Average Compounded Growth
Rate of 16.9% per Year
Profits Up 6.03x $1.18 Billion in 1997
Stock Up Over 7.0x
QUALITY
Through Defect Elimination

We have Eliminated > 99.7% of
In-Process Defects
The COPQ (Cost of Poor Quality)
Reduced > than 84% on a Per Unit
Basis
Manufacturing Cost Savings
Cumulative Savings over $14 Billion
Employee Productivity
Increased 3-Fold: A 12% Per Year
Average
Product Reliability
MTBF Increased 5 - 10 Fold
A decade of product quality and productivity

Cost of Poor Quality Elements

Inspection and Test
Rework/Repair
Scrap
Warranty
The Cost of Poor Quality

16
14
Percent of Sales
12
10
8
6
4
2
0
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
Companies Adopting the 6 Culture
General Electric
Eastman Kodak
Allied Signal
Texas Instruments
Citibank
Sony
ABB
plus 30 others who have licensed 6 training
The Future
Six Sigma Renewal

Six Sigma the Improvement Process
Drive Quality from the Customer In
Customer Factory and Field Returns
5-Nines Reliability
Hierarchy Of Customer Satisfaction
VI
S
IO
Offensive
Strategy
Gain
Customer
Loyalty
Trust
Innovation &
Implementation
Anticipate
Customer Needs
MI
S
Defensive
Strategy
SI
ON
Exceed
Customer Expectations
Meet
Customer Requirements
Determine Customer
Requirements & Expectations
Meet
Commitments
Identify Customers
by Organization by Key Contacts
Top Box Products and Service

Noncompetitive
Zone
High
Telephone Company
Totally
Satisfied
substitutes
Dominant brand equity
High cost of switching
Powerful Loyalty program
Proprietary technology
Loyalty
Regulated monopoly or few
ACCES
Highly Competitive
Zone
Satisfied
Low
Completely
Dissatisfied
Commoditization or
low differentiation
Consumer
indifference
Many substitutes
Low cost of switching
AECS
Satisfaction
Completely
Satisfied
HARVARD BUSINESS REVIEW Nov./Dec. 1995
The Customer Speaks

Customer Loyalty
Percent Satisfied
100
90
80
70
60
50
40
30
20
10
0
80%
60%
55
38
60
50%
40%
30%
44
20%
40
30
10%
18.1%
19.5%
15.7%
6.5%
5.3%
6.0%
0%
1996
% Satisfied
Would Continue to Use

Motorola in the Future
1997
% Top Box
Definitely Would
Performance Compared to Competitors
Would Recommend
Motorola to Colleagues
Might
Willingness to
Repurchase Products
in the Future
Definitely Would Not
Ease of Doing Business

70%
58.3%
57.4%
63.5%
60%
50%
40.3%
40%
50%
35.9%
40%
30%
31.5%
30%
20%
10%
0%
75.9%
74.0%
70%
1995
60%
79.0%
20%
6.7%
How we rate in Comparison
with the Best Supplier
Much Better/
Very Satisfied
1.4%
How Satisfied is the Customer with
us in Comparison to the Competition
Similar/Somewhat
Satisfied
Much Worse/
Not Satisfied
10%
0%
5.0%
Customer Satisfaction with the Ease of Doing Business
Very Satisfied
Somewhat Satisfied
Not Satisfied
LESSONS
LEARNED
Benchmarking 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
Copyright Motorola
Inc.
A Quality Plans Key Requirements
A methodology
A metric
Measure a complete
product/service
Accountability
(Application -- The Customer View)
and ... Reach Out Goals!!!

Actions 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

Other 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.
Quality
is not an Assignable Task
it must be Rooted and Institutionalized
Within every Step of the
Business Process
IT IS EVERYONE'S RESPONSIBILITY
Questions ?

Six Sigma: "Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our Future"

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SIX SIGMA

Copyright Motorola Inc.

What We Will Cover

Copyright Motorola Inc.

Copyright Motorola Inc.

1997 Sales $29.8 Billion (42% / 58%)

24th in Fortune 500

1st in Electronics Manufacturing

7th in Total Exports

142,000 Employees in 53 countries

The Rules of Engagement

Copyright Motorola Inc.

Copyright Motorola Inc.

Copyright Motorola Inc.

Flat Panel Displays

Copyright Motorola Inc.

NETW ORK AND

Copyright Motorola Inc.

Basingstoke, Stotfold, Swindon

Copyright Motorola Inc.

Copyright Motorola Inc.

Changing Motorola's Quality Culture

Copyright Motorola Inc.

Changing Motorola's Quality Culture

"Our Quality Stinks."

1980 Corporate Quality Officer named

Copyright Motorola Inc.

Changing Motorola's Quality Culture

1981 Motorola Training Center established

The Corporate Quality Office

Changing Motorola's Quality Culture

1981 Motorola Training Center established

Copyright Motorola Inc.

Assessment Vehicle for Total Organization

1981 Began focus on Quality

1982 MCQC began a process of biennial QSRs

1990 MCQC approved the use of cross-functional survey teams

Copyright Motorola Inc.

Quality System Management

New Product / Technology / Service Development Control

Supplier (Internal or External) Control

Process Operation and Control

Quality Data Programs

Problem Solving Techniques

Control of Quality Measurement Equipment and Systems

Human Resource Involvement

Customer Satisfaction Assessment

Software Quality Assurance

Legal and regulatory

Changing Motorola's Quality Culture

"Our Quality Stinks."

Corporate Quality Officer named

Motorola Training Center established

5 year, 10x quality improvement goal set

1985 Communications Sector begins total

Total defects per unit

(with 1.5 Sigma Shift)

The Quality Evolution Continues!

Copyright Motorola Inc.

The Motorola Card

OUR FUNDAMENTAL OBJECTIVE

KEY GOALS what we must

Copyright Motorola Inc.