Zero Defect
An essential Philosophy for Industry
Berlin, 23.10.2013
Johann Lohner, Global Transit Management
Infineon Technologies AG – Neubiberg
Do you think „Zero Defect“ is important ?
How would you like to travel ?
What is your idea of „Mobility“ ?
Table of Contents
 Infineon – the company at a glance
 Significance of Zero Defect for Infineon
 Challenges, results & benefits
 Key learnings – take aways
2013-10-23
Copyright © Infineon Technologies AG 2013. All rights reserved.
Page 5
Table of Contents
 Infineon – the company at a glance
 Significance of Zero Defect for Infineon
 Challenges, results & benefits
 Key learnings – take aways
2013-10-23
Copyright © Infineon Technologies AG 2013. All rights reserved.
Page 6
Infineon at a Glance
The Company
Focus Areas
 Revenue FY2012:
3,9 bn EUR

Energy Efficiency
 26,210 employees

Mobility
 17,250 patents

Security
Market-Oriented Business Structure
Automotive
2013-10-23
Industrial Power
Control
Power Management
& Multimarket
Copyright © Infineon Technologies AG 2013. All rights reserved.
Chip Card & Security
Page 7
Infineon at a Glance
The Company
Focus Areas
 Revenue FY2012:
3,9 bn EUR

Energy Efficiency
 26,210 employees

Mobility
 17,250 patents

Security
Market-Oriented Business Structure
Automotive
2013-10-23
Industrial Power
Control
Power Management
& Multimarket
Copyright © Infineon Technologies AG 2013. All rights reserved.
Chip Card & Security
Page 8
Market-Oriented Business Structure
Segments
Core Applications
Automotive
Powertrain
Hybrid and electric vehicles
Chassis and comfort electronics
Safety
Industrial
Power Control
Renewable energy generation
Energy transmission
Uninterruptable power supplies
Industrial drives & vehicles
Traction; Home appliances
Power
Management
& Multimarket
Power supplies
Cellular network infrastructure
Inverter for photovoltaic systems
Light management incl.
LED lighting
Chip Card &
Security
Payment systems
Near Field Communication (NFC)
E-passports, ID cards
Healthcare cards, Transport, ticketing,
Access control, Authentication
2013-10-23
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Table of Contents
 Infineon – the company at a glance
 Significance of Zero Defect for Infineon
 Challenges, results & benefits
 Key learnings – take aways
2013-10-23
Copyright © Infineon Technologies AG 2013. All rights reserved.
Page 10
Why is Quality and Zero Defect
essential for Infineon ?
Cheer up dear
Customer !
It will work out
sometime ...
When you´re
out of Quality,
you´re
out of
business
2013-10-23
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Our Understanding of Quality
Do it right the first time
Quality means a
2013-10-23
differentiating factor!
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Two Examples ..

In an average car there are
50 Control Units with
approx. 300 components
CU
CU
CU
CU
CU
CU
CU
CU
CU
CU
CU
CU
CU
CU
CU
CU
CU
CU
CU
CU
CU CU CU CU CU CU CU CU CU
Would
you accept a
CU CU CU CU CU CU CU CU CU CU
per Control unit.
malfunction of your car
CU CU CU CU CU CU CU CU CU CU
 A failure rate of 1 dpm
several days over the
(1 per 1mio) means,
year ?
CU
the failure rate of the cars
is at already
1.5%
 1 Train
Is it given that trains
 4 Converters
 99,999% Reliability on
are delayed and time
Chip equals 5% failure
 32 PU Building
schedules are
Blocks
Rate in the Train Fleet
 128 IBGT
Modules
“best guess” ?
 4608 Chips
2013-10-23
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Corporate Logistics is living joint ZD programs
with all Key Partners worldwide
Zero Defect Agreements @ Corporate Logistics
 “Agreements about Roadmap to ZD” in place with all our Key Partners
 Content: Definition of ZD cases as well as the Top Management
commitment to reach a joint ZD target
 Comprehensive global approach (globally, regional, local)
What is a ZD incident ?
 Loss
 Transport Damage
 Wrong Delivery
 Cross labeling
 Customs Processing Failure
2013-10-23
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Corporate Logistics implemented a joint ZD
program with all Key Partners
 ZD Launch Ceremonies
(global, regional, local)
 Posters & Videos
 Regular Events
 Competition &
Awards
2013-10-23
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 Systematic
Approach
 Common
Methods ..
 .. And Tools
 Reporting &
Reviews
2013-10-23
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Table of Contents
 Infineon – the company at a glance
 Significance of Zero Defect for Infineon
 Challenges, results & benefits
 Key learnings – take aways
2013-10-23
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We identified two Key Challenges
Foster improvements
Avoid a fall-back in
on a high level
crisis situations
Effect on Quality
Improvement
Schematic Overview:
Point of Operation
Effort /
Costs
 Decisive for Success: Right
approach to foster improvents
on all points of operation
 Creative and smart solutions to
find and eliminate root causes
for ZD incidents
2013-10-23
 Strive for fault-tolerant &
robust processes
 Maintain a strong and
responsive ZD organization
 Visibility, ongoing follow ups
and Communication
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High Performance is achievable
but remains a “Sisyphos Job”
Development of Logistical complaints faces fall backs
We are not arrived yet – still a distance to go
2013-10-23
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Is there a value of Quality & Zero Defect ?
Customer
Satisfaction
Assure your
future
Business
Protect your
Know How
2013-10-23
 Professional problem solving is a must!
Our customers appreciate this, but
they expect no problems
 Continued and repeated problems erode
the position as high performance supplier
Problems distract from new business
 Problems and related information sharing
disclose a lot of our know-how … for
free!
Copyright © Infineon Technologies AG 2013. All rights reserved.
Clear
Message:
There is a
high
Value of
Quality
and the
effort
spent for
ZD
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What is the benefit ?
Benefit for the company
 Increasing customer satisfaction
 Sustainable customer relations
 Reduced cost of non-conformance
Benefit in the daily work
 Reduced effort for trouble shooting
 Increased employee satisfaction due to more
time and resources for innovation and improvement
 More fun at work
2013-10-23
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Table of Contents
 Infineon – the company at a glance
 Significance of Zero Defect for Infineon
 Challenges, results & benefits
 Key learnings – take aways
2013-10-23
Copyright © Infineon Technologies AG 2013. All rights reserved.
Page 22
Key Learning “Zero Defects” is Everyone´s Responsibility
Involvement
Belief
 ZD is the “school
of thought” within
Infineon and
supported across
the entire
organization
 Everyone knows
the importance of
ZD to Infineon
and it´s
customers
It´s all about
2013-10-23
Commitment
 Everyone´s goal
is to avoid
defects and to
report defects
directly
Mindset
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Key Learnings
Success Factors
 “Mind set”
 Endurance
 Top Mgmt being Role Model
 Comprehensive Strategy
 Common Methods & Tools
Take Aways
 ZD requires permanent focus
– it is a very sensitive,
volatile “status”
 Crucial is ZD Design - faulttolerant & robust processes
 Joint Reviews
 Needs Involvement, Belief
and Commitment
 No inspection
mentality
 ZD is a Sisyphean labor
ZD is possible – but
2013-10-23
needs Supporters
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Thank you for your attention
2013-10-23
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