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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

Copyright Motorola Inc.

Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our Future

Motorola Statistics

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

Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our Future

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%
Copyright Motorola Inc.

Europe
19%

Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our Future

The Rules of Engagement

Copyright Motorola Inc.

The Past

The Future

Product

Customer/Consumer

Business Unit

Enterprise (Motorola)

Motorola

Business Unit/Product

Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our Future

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

Copyright Motorola Inc.

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

Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our Future

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

Copyright Motorola Inc.

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

Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our Future

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

Copyright Motorola Inc.

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

Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our Future

Motorola Products

Cellular Telephones
Two Way Communications
Pagers
Semiconductors
Automotive Electronic Modules and
Components
Modems and Integrated Management Systems
Cellular and Satellite Infrastructure Systems

Copyright Motorola Inc.

Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our Future

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

Copyright Motorola Inc.

INDIA
Bangalore

SINGAPORE
MALAYSIA

PHILIPPINES
Manila

AUSTRALIA

Melbourne
Kuala Lumpur
Penang, Seremban Adelaide

Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our Future

Quality Journey

Copyright Motorola Inc.

Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our Future

Changing Motorola's Quality Culture


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

Copyright Motorola Inc.

Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our Future

Changing Motorola's Quality Culture


1979

"Our Quality Stinks."

1980 Corporate Quality Officer named


Business Leadership
- Senior Business Leader
- Change in focus

Copyright Motorola Inc.

Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our Future

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
Copyright Motorola Inc.

Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our Future

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
Copyright Motorola Inc.

Motorola
University

Courseware

Recommendations on
vision and direction
Management Board

Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our Future

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
Copyright Motorola Inc.

Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our Future

QSR Manual

Guidelines

April 1998

Copyright Motorola Inc.

Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our Future

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)
Copyright Motorola Inc.

Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our Future

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
Copyright Motorola Inc.

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 Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our Future

Quality Subsystems

Copyright Motorola Inc.

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

Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our Future

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
Copyright Motorola Inc.

Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our Future

A Common Metric

Total defects per unit


Count Defects
Independent variable
Ownership
Copyright Motorola Inc.

Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our Future

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
Copyright Motorola Inc.

Domestic Airline
Flight Fatality Rate

(3.4 ppm)

(0.43 ppm)

(with 1.5 Sigma Shift)

Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our Future

The Quality Evolution Continues!


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

Copyright Motorola Inc.

Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our Future

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

Copyright Motorola Inc.

Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our Future

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


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

Copyright Motorola Inc.

Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our Future

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

Copyright Motorola Inc.

Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our Future

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


Copyright Motorola Inc.

Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our Future

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
Copyright Motorola Inc.

Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our Future

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
Copyright Motorola Inc.

Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our Future

Six Sigma The Concept

Copyright Motorola Inc.

Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our Future

A Traditional View

Market Share
Sales Growth
Profitability

Output Variables

Manage the outputs.


Copyright Motorola Inc.

Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our Future

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.


Copyright Motorola Inc.

Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our Future

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

Copyright Motorola Inc.

Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our Future

2
( xi x )

CE
N

Sigma = = Deviation

SO
RE
D

Normal Distribution - Gaussian Curve

( Square root of variance )

n 1

Copyright Motorola Inc.

-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)

Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our Future

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).

Copyright Motorola Inc.

Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our Future

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

Copyright Motorola Inc.

Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our Future

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

Copyright Motorola Inc.

Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our Future

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

Copyright Motorola Inc.

Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our Future

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


Copyright Motorola Inc.

Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our Future

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

Copyright Motorola Inc.

Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our Future

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.
Copyright Motorola Inc.

Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our Future

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

Copyright Motorola Inc.

Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our Future

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

Copyright Motorola Inc.

Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our Future

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

Copyright Motorola Inc.

Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our Future

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

Copyright Motorola Inc.

Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our Future

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


Copyright Motorola Inc.

Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our Future

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

Copyright Motorola Inc.

TC
Culture
of
SExcelle

Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our Future

Deployment

Copyright Motorola Inc.

Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our Future

The Process for Deployment


Management involvement

Empowered teams

Statistical black belts

Copyright Motorola Inc.

Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our Future

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.
Copyright Motorola Inc.

Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our Future

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
Copyright Motorola Inc.

Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our Future

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.
Copyright Motorola Inc.

Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our Future

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

Copyright Motorola Inc.

Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our Future

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

Copyright Motorola Inc.

Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our Future

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
Copyright Motorola Inc.

Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our Future

Worldwide TCS Team Count


1997
1996
1995
1994
1993
1992
1991
1990
0
Copyright Motorola Inc.

2000

4000

6000

Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our Future

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

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Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our Future

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
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Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our Future

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

Copyright Motorola Inc.

Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our Future

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
Copyright Motorola Inc.

Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our Future

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

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Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our Future

History of Six Sigma Black Belt Program

Copyright Motorola Inc.

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

Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our Future

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

Copyright Motorola Inc.

Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our Future

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

Copyright Motorola Inc.

MY95

MY96
J95

MY97
J96

MY98
J97

Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our Future

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

Copyright Motorola Inc.

Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our Future

Core

GBM
GBM
GBM
GBM
GBM
GBM
GBM
GBM
GBM
GBM
BM
BM
BM
BM
BM
M
M
M

Copyright Motorola Inc.

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
Customer Satisfaction
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

Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our Future

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

Copyright Motorola Inc.

Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our Future

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

Copyright Motorola Inc.

Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our Future

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

Copyright Motorola Inc.

Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our Future

Discussion

Copyright Motorola Inc.

Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our Future

The Cost/Quality Relationship


Six Sigma has shown that the
Highest Quality Producer
is also the
Lowest Cost Producer
Copyright Motorola Inc.

Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our Future

Results

Copyright Motorola Inc.

Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our Future

And the Results?


1997

5.6
Products Manufactured

~ 16Billion

1986

4.2

Copyright Motorola Inc.

Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our Future

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
An Average Compounded Growth
Rate of 19.5% per Year
Stock Up Over 7.0x
An Average Compounded Growth
Rate of 21.3% per Year

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


Copyright Motorola Inc.

Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our Future

Cost of Poor Quality Elements


Inspection and Test
Rework/Repair
Scrap
Warranty

Copyright Motorola Inc.

Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our Future

The Cost of Poor Quality


16
14

Percent of Sales

12
10
8
6
4
2
0
1986

Copyright Motorola Inc.

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our Future

Companies Adopting the 6 Culture

Copyright Motorola Inc.

General Electric
Eastman Kodak
Allied Signal
Texas Instruments
Citibank
Sony
ABB
plus 30 others who have licensed 6 training
Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our Future

The Future

Copyright Motorola Inc.

Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our Future

Six Sigma Renewal


Six Sigma the Improvement Process
Drive Quality from the Customer In
Customer Factory and Field Returns
5-Nines Reliability

Copyright Motorola Inc.

Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our Future

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

Copyright Motorola Inc.

Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our Future

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

Copyright Motorola Inc.

Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our Future

The Customer Speaks


Customer Loyalty

Percent Satisfied

Customer Satisfaction
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

Copyright Motorola Inc.

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

Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our Future

LESSONS
LEARNED

Copyright Motorola Inc.

Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our Future

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.
Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our Future
Service
companies are not different

Copyright Motorola
Inc.

A Quality Plans Key Requirements

A methodology
A metric
Measure a complete
product/service
Accountability

Copyright Motorola Inc.

(Application -- The Customer View)

and ... Reach Out Goals!!!


Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our Future

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


Copyright Motorola Inc.

Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our Future

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.
Copyright Motorola Inc.

Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our Future

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

Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our Future

Questions ?

Copyright Motorola Inc.

Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our Future