Achieving Competitive Excellence The ACTS Operating System Quality Manager: Willis Huang 1 The Cost of Poor Quality Iceberg Warranty, Scrap, Escapes, Rework, Repair, Extra Inspection Visible 2-3 % of Sales • • • • • • • • • • Engineering Changes Recurring Service Bulletins Recurring Engineering Notices Extra Set-ups Long Cycle Times Non-Contractual Warranty Expediting Costs Late Delivery Charges Excess Inventory Supplier Quality Hidden ? Lost Sales Lost Credibility Lost Customer Loyalty Non - Visible 5-8 % of Sales ACE Fosters a Quality Mindset 2 Customer Focus Employee Fulfillment Quality Processes & Products Financial Performance Achieving Competitive Excellence to: provide products and services that are 100% defect-free. do work that adds value to the company. partner with customers and execute flawlessly, so they are delighted and keep coming back. be a great place to work! ACE is the UTC operating system well adopted in ACTS 3 What is an operating system? … defines our daily management system … has three elements culture ( “humanware” ) set of tools ( hardware ) competency Achieving Competitive Excellence has, a Culture; a set of Tools; and the Competency to implement the culture and the tools in everything that we do. 4 ACE - Culture Drives relentlessly to close gaps between actual results and goals. Customer Establish vision, Strategy & goals • Powered by the Monitor Progress disciplined application of ACE tools for Process improvement Define Metrics and waste elimination Problem solving Decision making Identify gaps & execute RRCA Customers define our Quality 5 With ACE Culture we can… Identifying opportunities to improve Solving problems Sustaining continuous improvement 6 ACE – The Hardware The 12 ACE tools Process Improvement and Waste Elimination New 5S (visual workplace) + Safety (6S) Value Stream Management Process Control & Certification Standard Work Production Preparation Process (3P) Total Productive Maintenance Set-up Reduction Problem Solving (DIVE process) Market Feedback Analysis QCPC (Quality Clinic Process Charts) Relentless Root Cause Analysis Mistake Proofing Decision Making Passport Process 7 The Quality Model 8 Description of 6S (UTC’s New 5S) 1. Safety Prevent / control hazards 2. Sort Eliminate what is not needed 6S 3. Straighten Organize what remains 4. Shine Clean work area 5. Standardize Schedule cleaning and maintaining 6. Sustain Make 6S a way of life Creating workplace efficiency Improving morale 9 6S Establishes the Foundation for Workplace Organization Point-of-use Tooling Items Required For Normal Operation Drawer Unit Attached To Machine 10 Definition of Quality Clinic Process Charts (QCPC) QCPC encompasses a simple tool used to continuously analyze a process for quality improvement opportunities and process inefficiencies, called “turnbacks”. A roadmap to quality products and processes 11 What Are QCPC Turnbacks? Reporting turnbacks gives all employees a voice in process improvement Any situation that hinders the flow of work. Turnbacks include any inefficiency in the process. For example: Priority and plan changes Re-design / Re-work / Re-do Miscommunication Incorrect data and information Equipment and computer problems Software discrepancies 12 How QCPC Works Step 1 PPDP Step 2 Step 3 Step 4 Step 5 Step 6 (Detail Level Map) Total PMT / IPT Engineering Week 1 Configuration Management Week 2 Producer Assy & Test Week 3 Quality Map process and identify turnback points Apply an ACE Problem Solving Strategy to investigate and eliminate root cause Collect and summarize turnback data at established intervals Determine your greatest opportunity 13 Definition of Relentless Root Cause Analysis (RRCA) The rapid and persistent pursuit of the fundamental breakdown or failure of the process that, when resolved, prevents a recurrence of the problem. 14 How RRCA Works Utilizes a variety of strategies and tools to: Define the problem, Investigate probable root causes, Verify what is the actual cause, and Ensure a mistake-proof solution. 15 Definition of Mistake Proofing Using wisdom and ingenuity to provide methods and devices that allow you to do your job 100% defect-free, 100% of the time. 16 Criteria for Effective Mistake Proofing Minimal cost Simple to use Easy to install Durable Easy to maintain Does not hinder operator / user Foolproof 17 ACE - Competency Competency is built through Education - Ito University - ACE training - Operations Transformation Leader curriculum - High-impact ACE teams - Doing: experience in many improvement activities Sharing of best practices - Benchmark 18 Levels of ACE Competency ACE Gold Delighted Stakeholders • Best-in-class customer satisfaction and business performance ACE Silver Step-change in Business Performance • Business performance targets for Silver sustained • Stretch business performance goals set for Gold ACE Bronze Improved Performance ACE Qualifying • Measurable improvements in key customer deliverables achieved • Business results positively impacted • Significant business performance improvement targets set for Silver Baseline • Customer expectations quantified • Performance baselines and gaps identified • Savings demonstrated from waste eliminations 19 ACTS Performance Trend Sales Performance Escape PPM 25 1600 1400 1200 1000 800 600 400 200 0 20 15 10 5 0 2003 2004 2005 Year 2006 2007 2008 Plan 20 Summary ACE is a continuing journey The ACE Elements are the foundation ACE provides powerful strategies and tools to improve business results ACE uses achievement levels to recognize quality improvements and business results ACE can involve and empower every employee 21 Thank You! Quality Manager: Willis Huang 22
