Nolan-Norton Presentation
July 19, 1990©
by
Arthur M. Schneiderman
Presentation date:
July 19, 1990
Venue:
Nolan-Norton
Study Group Meeting
Notes
None
Participants in the study, entitled "Measuring Performance in the Organization of
the Future," were Advanced Micro-Devices, American Standard, Apple
Computer, Bell South, GIGNA, Conner Peripherals, Cray Research, Dupont,
EDS, GE, HP, and Shell Canada. Bob and I teamed in a pair of
presentations; his, in part, on the HBS Analog Case and mine on the Analog
story.
The Executive Summary of the study was published some time in 1991 and
included materials from Bob's and my presentations. One display in the
Executive Summary was used to demonstrate the linkage between performance
measurement and the organization's strategy and vision. It used materials
taken from slide 20 in this presentation as an example.
The interest generated by Analog's corporate scorecard prompted a second
Nolan-Norton study in which the participants implemented scorecards within their
respective organizations. This study provided the basis for the first KaplanNorton HBR article, which appeared in the January-February, 1992 issue.
Although that article did make brief mention of Analog's use of the half-life
method, and described the experiences of an anonymous "NYSE electronics
company" (that was us!), it did not describe Analog's pioneering work on the
first balanced scorecard. Nor did an article by Larry Maisel, then of KPMG,
who was also part of the Nolan-Norton study. He published the study results
in the Summer 1992 issue of the Journal of Cost Management in an article
entitled "Performance Measurement: The Balanced Scorecard Approach."
This is the slide package I left for the meeting participants. I can’t be sure
that I used all of these slides in my presentation since I’ve been unable to
locate a copy of the videotape that was made.
©1986-2000,
Arthur M. Schneiderman.
Revised 3/7/2016 11:30:00 AM
All Rights Reserved
Page 1
Since nearly all of the slides that I used are described in other presentations
on this website, I’ve omitted explanatory notes.
©1986-2000,
Arthur M. Schneiderman.
Revised 3/7/2016 11:30:00 AM
All Rights Reserved
Page 2
Nolan-Norton Presentation, July 19, 1990
Slide 1
TO TAL Q UALITY M ANAGEM ENT
Art Schneiderman
Analog Devices
ANALO G DEVICES "at a glance"
Q UALITY IM PRO VEM ENT PRO CESS
GO ALS
culture
scorecard
IS
PRO BLEM
SO LVING
projects
M ETRICS
Nolan-Norton, July 19, 1990
©1987-2000 Arthur M . Schneiderman All Rights Reserved.
©1986-2000,
Arthur M. Schneiderman.
Revised 3/7/2016 11:30:00 AM
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6/11/90-06110-5
Page 3
Nolan-Norton Presentation, July 19, 1990
Slide 2
Analog Devices at a Glance
•
Headquartered in Norwood M assachusetts
•
Publicly Held (NYSE Symbol ADI)
•
$453 M illion in Sales (FY1989)
•
48% of Sales O utside United States
•
5200 Employees Worldwide
©1987-2000 Arthur M . Schneiderman All Rights Reserved.
©1986-2000,
Arthur M. Schneiderman.
Revised 3/7/2016 11:30:00 AM
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c. 2/13/90-PREZ_1
Page 4
Nolan-Norton Presentation, July 19, 1990
Slide 3
ANALO G DEVICES AT A GLANCE
(cont)
Products: ICs, assembled products, subsystems
Applications: precision measurement & control
M arkets: data acquisition
40% industrial/instrumentation
30% military/avionics
13% computer
17% other
Integrated supplier
design
manufacturing (8 locations)
direct sales (100 locations)
©1987-2000 Arthur M . Schneiderman All Rights Reserved.
©1986-2000,
Arthur M. Schneiderman.
Revised 3/7/2016 11:30:00 AM
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c. 1990-PREZ-1a
Page 5
Nolan-Norton Presentation, July 19, 1990
Slide 4
ADI CO RPO RATE Q IP CO UNCIL
M EM BERS:
CHARTER:
Jerry Fishman
Executive VP
Kozo Imai
VP, Japanese O perations
Larry LaFranchi
O perations Controller
Bill M anning
Division GM
Doug Newman
VP, Sales and M arketing
Art Schneiderman, Chairman
VP, Q uality/Productivity Improvement
Ray Stata
Chairman of the Board and President
Goodloe Suttler
Division GM
Suzanne Thomson
Director, Training & Development
Tom Urwin
VP, European O perations
Q IP O rganization
Q IP Goals Deployment
Training
M onitoring
priorities
Juran
metrics
Incenting/Rewarding
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Arthur M. Schneiderman.
Revised 3/7/2016 11:30:00 AM
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4/8/90-Q IP-15a
Page 6
Nolan-Norton Presentation, July 19, 1990
Slide 5
1989 Top Customers Worldwide
Customer
IBM (US, Japan & France)
GE/RCA
Fuji (Japan)
HP (US, UK & Germany)
Honeywell (US, Germany)
General Dynamics (US)
Raytheon (US)
Siemens (US, Germany)
TI (US)
M itsubishi (Japan)
Fujitsu (Japan)
Toshiba (Japan)
M arconi (US, UK)
Hughes (US)
Rockwell (US)
Hitachi (Japan)
Westinghouse (US)
Philips (US, Europe)
M otorola (US)
DCASR (US)
Bookings
$M
Cumulative
%
26.8
10.5
10.3
9.1
7.4
5.4
5.1
5.1
4.1
4.0
4.0
3.7
3.6
3.4
3.3
3.3
3.1
3.1
3.0
2.7
6.0
8.3
10.6
12.6
14.2
15.5
16.6
17.7
18.6
19.5
20.4
21.1
22.0
22.8
23.5
24.3
25.0
25.6
26.3
26.9
©1987-2000 Arthur M . Schneiderman All Rights Reserved.
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Arthur M. Schneiderman.
Revised 3/7/2016 11:30:00 AM
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c. 1990-PREZ-11
Page 7
Nolan-Norton Presentation, July 19, 1990
Slide 6
CUSTO M ER PREFERENCE RATINGS
D/A and A/D CO NVERTERS
Analog Devices
Burr-Brown
National
Motorola
PMI
Linear Technology
Maxim
Intersil
TI
Signetics
Harris
TRW
Analogic
Crystal
Teledune Philbrick
1
2
3
4
least
5
most
Preference
Source: EDN, 1/90
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Page 8
Nolan-Norton Presentation, July 19, 1990
Slide 7
TO P 10 M IXED SIGNAL IC SUPPLIERS
Sales $M
300
RM S=1.4
250
200
150
100
50
0
ADI
National
NEC
Philips
TI
Toshiba
Hitachi
Sanyo
M atsushita
M otorola
Source: VLSI Research
©1987-2000 Arthur M . Schneiderman All Rights Reserved.
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Arthur M. Schneiderman.
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2/16/90-02140-1
Page 9
Nolan-Norton Presentation, July 19, 1990
Slide 8
PRO JECTED WO RLDWIDE GRO WTH RATES
1987-1992
average annual growth rate, %/year
25
20%
20
15
13%
11%
10
5
0
Electronic Equipment
Semiconductor Sales
ADI's Growth Goal
©1987-2000 Arthur M . Schneiderman All Rights Reserved.
©1986-2000,
Arthur M. Schneiderman.
Revised 3/7/2016 11:30:00 AM
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c. 2/13/90-PREZ-10
Page 10
Nolan-Norton Presentation, July 19, 1990
Slide 9
Q UALITY IM PRO VEM ENT PRO CESS
GO ALS
culture
scorecard
IS
PRO BLEM
SO LVING
projects
M ETRICS
©1987-2000 Arthur M . Schneiderman All Rights Reserved.
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Arthur M. Schneiderman.
Revised 3/7/2016 11:30:00 AM
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3/11/90-03110-1
rev 4/8/90
Page 11
Nolan-Norton Presentation, July 19, 1990
Slide 10
GO ALS
cult ure
scorecard
IS
PRO BLEM
SO LVING
projects
ADI's CO NSTITUENCIES
M ETRICS
CUSTO M ERS
partnership
ADI's
growth
BUSINESS
O BJECTIVES
EM PLO YEES
capital
return
STO CKHO LDERS
©1987-2000 Arthur M . Schneiderman All Rights Reserved.
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rev 4/8/90
Page 12
Nolan-Norton Presentation, July 19, 1990
Slide 11
GOALS
cult ure
scorecard
IS
PROBLEM
SOLVING
projects
M ETRICS
BUSINESS
O BJECTIVES:
ADI Q IP GO ALS
M ARKET LEADERSHIP (RM S)
REVENUE GRO WTH
PRO FITABILITY
DRIVERS:
BE RATED #1 BY O UR CUSTO M ERS
IN TO TAL VALUE DELIVERED
EXTERNAL LEVERS:
PRO DUCTS
DEFECT LEVELS
O N-TIM E DELIVERY
LEADTIM E
PRICE
RESPO NSIVENESS
INTERNAL LEVERS:
TIM E TO M ARKET
PRO CESS PPM
M ANUFACTURING CYCLE TIM E
YIELD
©1987-2000 Arthur M . Schneiderman All Rights Reserved.
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c. 1/17/89-AM S-5
rev. 4/8/90-04080-2
Page 13
Nolan-Norton Presentation, July 19, 1990
Slide 12
Process Quality Improvement
Counter Action I
%
(Dip Soldering Process)
0.4%
0.4
0.3
Failure Rate
Counter Action II
0.2
ppm
40ppm
Omit Hand Rework
Process
Basic Working
Guide Manual
30
PC Board Design
Instructions
20
3ppm
10
Masking Method
Improvement
0
Revision of Manufacturing
Engineering Standards
Dip Solder was
made to one
worker job
40
0.1
Counter Action III
0
11
1
4
78
7
10
1
4
7
10
10
1
4
80
79
7
10
1
4
7
10
81
1
4
82
7
10 month
FY
Source: Kenzo Sasaoka, President
Yokagowa-Hewlett-Packard 7/84
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Page 14
Nolan-Norton Presentation, July 19, 1990
Slide 13
YOKOGOWA HEWLETT PACKARD
Dip Soldering Defects
10,000
1
.01
100
.001
10
.0001
0
PPM
Failure Rate %
1,000
50 % improvement each:
3.6 months
.1
1
12
24
36
48
60
months
©1987-2000 Arthur M . Schneiderman All Rights Reserved.
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Arthur M. Schneiderman.
Revised 3/7/2016 11:30:00 AM
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12/12/85-ZD4
Page 15
Nolan-Norton Presentation, July 19, 1990
Slide 14
PRO PO SED HALF-LIFE M O DEL VALUES
M O NTHS
PRO JECT TYPE
uni-functional
EXAMPLES
MO DEL HALF-LIFE
operator errors
EXPECTED RANGE
3
0 to 6
9
6 to 12
18
12 to 24
WIP
cross-functional
new product cycle time
outgoing PPM
multi-entity
vendor quality
warranty costs
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3/19/87-imp-9
rev. c. 1989-hflf-2
Page 16
Nolan-Norton Presentation, July 19, 1990
Slide 15
TARGET HALF-LIVES
O rganizational Complexity
months
hi
14
18
22
med
7
9
11
low
1
3
5
low
med
hi
Technical Complexity
©1987-2000 Arthur M . Schneiderman All Rights Reserved.
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Arthur M. Schneiderman.
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6/11/90-06110-1
rev. 5/28/91
Page 17
Nolan-Norton Presentation, July 19, 1990
Slide 16
GOALS
cult ure
scorecard
THE DEM ING CYCLE
IS
PROBLEM
SOLVING
projects
M ETRICS
R
S
S
E
PLAN
S
36
E
HALFLIFE
U
27
9
C
ACT
DO
O
L
M PI
18
T
R
S
CHECK
P
©1987-2000 Arthur M . Schneiderman All Rights Reserved.
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Arthur M. Schneiderman.
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rev 5/27/91
Page 18
Nolan-Norton Presentation, July 19, 1990
Slide 17
ADI RESPO NSE TO HALF-LIFE CO NCEPT
Critics
Supporters
Embodies the concept of KAIZEN
Doesn't reflect where we need to be
Easy to understand
Hard to understand
M akes sense
Hard to use
Data not negotiation based
manual vs. computerized
realistic
Accepted by line organization
assumes instant startup
Works
assumes constant rate of learning
focuses on results not process
focuses on results not process
"...the rate at which individuals and organizations learn
may become the only sustainable competitive advantage..."
Ray Stata
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2/18/90-02180-2
Page 19
Nolan-Norton Presentation, July 19, 1990
Slide 18
SAM PLE IM PRO VEM ENT CURVE
linear scale
defect level
3
2.5
2
1.5
1
0.5
0
1
3
5
7
9
11 13 15 17 19 21 23 25 27 29
months
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rev 5/28/91
Page 20
Nolan-Norton Presentation, July 19, 1990
Slide 19
SAM PLE IM PRO VEM ENT CURVE
logarithmic scale
defect level
3
2
1
0.5
0.3
0.2
0.1
1
3
5
7
9
11 13 15 17 19 21 23 25 27 29
months
©1987-2000 Arthur M . Schneiderman All Rights Reserved.
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rev 5/28/91
Page 21
Nolan-Norton Presentation, July 19, 1990
Slide 20
ADI QIP GOALS
IC OPERATIONS, ESTABLISHED PRODUCTS
METRIC
1987
HALF-LIFE
1992
EXTERNAL
On time delivery
85%
9
>99.8%
Outgoing defect levels
500 PPM
9
<10 PPM
Lead time
10 wks
9
<3 wks
Manufacturing Cycle Time
15 wks
9
4-5wks
Process Defect Levels
5000 PPM
6
<10 PPM
Yield
20%
9
>50%
Time to Market
36 mths
24
6 mths
INTERNAL
WHILE AGGRESSIVELY PURSUING
CORPORATE-WIDE COST MANAGEMENT
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c. 7/12/87-Q IP-16/Q S-16B
rev. 7/25/87
Page 22
Nolan-Norton Presentation, July 19, 1990
Slide 21
FY1990 CORPORATE SCORECARD
FINANCIAL
End FY89
ACTUAL
BHMK
Q1 90
ACTUAL
BHMK
Q2 90
ACTUAL
BHMK
Q3 90
ACTUAL
BHMK
Q4 90
ACTUAL
BHMK
FY 90
ACTUAL
SALES
SALES GROWTH YTY
CONTRIBUTION MARGIN
ROA (CM)
QIP
ON TIME DELIVERY (To FCD)
% CRDs NOT MATCHED
EXCESS LEADTIME
LABOR TURNOVER
MANUFACTURING METRICS: IC PRODUCTS
OUTGOING PPM
PROCESS PPM
CYCLE TIME
YIELD
MANUFACTURING METRICS: ASSEMBLED PRODUCTS
OUTGOING PPM
PLUG-IN YIELD
CYCLE TIME
% COST OF SCRAP/REWORK
NEW PRODUCTS
ACTUAL
FY87 PLAN
ACTUAL
FY87 PLAN
ACTUAL
FY87 PLAN
ACTUAL
FY87 PLAN
ACTUAL
FY87 PLAN
ACTUAL
BOOKINGS POST-85 PROD
FY89
1Q90
2Q90
3Q90
4Q90
FY90
FORECAST 3rd YR BOOKINGS
of new product releases
©1987-2000 Arthur M . Schneiderman All Rights Reserved.
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Arthur M. Schneiderman.
Revised 3/7/2016 11:30:00 AM
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c. 1989-Scorecard
Page 23
Nolan-Norton Presentation, July 19, 1990
Slide 22
1
2
1990 Scorecard
ADI
Qtr 2 1990
?
Line Item
Actual
Budget
Variance
%
%
WKS
%
96.10
52.10
2.80
8.40
97
41
3
19
-1.00
10.70
-.10
-10.70
-1 #
26 #
-3
-56
IC Outgoing PPM
IC Process PPM
IC Cycle Time
IC Yield
DYS
%
1210.00
1624.00
50.10
40.40
908
1516
62
38
302.00
108.00
-12.30
2.80
33 #
7#
-20
7
AP Outgoing PPM
Plug In Yield
AP Cycle Time
Scrap/Rework Cost
%
DYS
%
1483
91.40
21.90
7.70
1977
91
29
14
-494.00
.50
-6.70
-6.40
QIP:
On Time Delivery % (To FCD)
CRDs Not Matched
Excess Leadtime
Employee Turnover
Retrace
Utilities
1989 Scorecard
Commentary
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Arthur M. Schneiderman.
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% Var.
-25
1
-23
-45
Return
1Q 90-Scorecard-1
Page 24
Nolan-Norton Presentation, July 19, 1990
Slide 23
1
2
1990 Scorecard
ADI
Qtr 2 1990
?
Line Item
Actual
Budget
Variance
NEW PRODUCTS:
Post 1985 Products
Forecasted 3rd Year Bookings
$M
$M
40.30
9.90
42
-1.60
FINANCIALS:
Sales
Sales Growth (YTY)
Contribution Margin
ROA (Contribution Margin)
$M
%
%
%
116.40
1.20
6.30
7.50
117
2
8
10
-.30
-.30
-2.00
-2.00
Retrace
Utilities
1989 Scorecard
Commentary
©1987-2000 Arthur M . Schneiderman All Rights Reserved.
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Arthur M. Schneiderman.
Revised 3/7/2016 11:30:00 AM
All Rights Reserved
% Var.
-4 #
-0
-20
-24
-21
#
#
#
#
Return
1Q 90-Scorecard-2
Page 25
Nolan-Norton Presentation, July 19, 1990
Slide 24
GOALS
cult ure
scorecard
PERFO RM ANCE M EASUREM ENT
IS
PROBLEM
SOLVING
projects
M ETRICS
If you don't measure it,
it will not improve.
does not mean
measurement
improvement
©1987-2000 Arthur M . Schneiderman All Rights Reserved.
©1986-2000,
Arthur M. Schneiderman.
Revised 3/7/2016 11:30:00 AM
All Rights Reserved
5/22/90-05220-4
Page 26
Nolan-Norton Presentation, July 19, 1990
Slide 25
GOALS
cult ure
scorecard
IS
PROBLEM
SOLVING
projects
M ETRICS
GO AL:
IM PRO VE CUSTO M ER SERVICE
CUSTO M ER SERVICE M ETRICS
O N TIME
% late
% early
RESPO NSIBILITY
factory
warehouse
% on time
credit
customer
LATENESS/EARLINESS
shipped late, how late?
shipped early, how early?
still late, how late?
months to ship late backlog
LEAD TIME
customer requested lead time
% CRD's matched
excess lead time
RESPO NSIVENESS
time to schedule an order
©1987-2000 Arthur M . Schneiderman All Rights Reserved.
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Arthur M. Schneiderman.
Revised 3/7/2016 11:30:00 AM
All Rights Reserved
4/8/90-04080-3
rev 5/13/90
Page 27
Nolan-Norton Presentation, July 19, 1990
Slide 26
On Time Customer Service Improvement
Quarterly Data (1Q87 – 4Q89)
100
ADS
ADBV
MED
CLD
IPD
DSP
MDL
ADI
10.8
16.5
8.4
18.0
13.8
6.9
54.9
13.2
10
1
0.1
Half Life
In Months
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4Q 89-% Late
Page 28
Nolan-Norton Presentation, July 19, 1990
Slide 27
Percent Of Lines Shipped Late (Jun 89 through May 90)
100
ADBV
ADS
CLD
DSP
IPD
10
MDL
MED
ADI
NS
NS
+++
+
+
+
1
0.1
Half NS
NS
Life (In months)
NS
NS
N/A
7
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% Late M ay 90
Page 29
Nolan-Norton Presentation, July 19, 1990
Slide 28
RELATIO NSHIP BETWEEN LEADTIM E
AND O N-TIM E DELIVERY
AD XXX
0.1
1
0.95
0.08
0.8
0.06
0.6
0.04
0.4
0.02
0.2
0
0
50
100
113
0
150
lead time
M arket requirements:
O TD > 95%
leadtime < 100
O ur requirements:
O TD < 50%
or
leadtime > 113
LO SS O F M ARKET SHARE
©1987-2000 Arthur M . Schneiderman All Rights Reserved.
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Arthur M. Schneiderman.
Revised 3/7/2016 11:30:00 AM
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5/16/90-05160-1a
Page 30
Nolan-Norton Presentation, July 19, 1990
Slide 29
IM PRO VING O N THE
O TD/LEADTIM E TRADEO FF
1. increase inventory
2. build to good forecasts
3. reduce manufacturing cycle time
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Page 31
Nolan-Norton Presentation, July 19, 1990
Slide 30
RELATIO NSHIP BETWEEN LEADTIM E
AND O N-TIM E DELIVERY
AD XXX
0.1
1
0.95
0.08
0.8
0.06
0.6
0.04
0.4
0.02
0.2
0
0
50
100
113
0
150
lead time
M arket requirements:
O TD > 95%
leadtime < 100
O ur requirements:
O TD < 50%
or
leadtime > 113
LO SS O F M ARKET SHARE
©1987-2000 Arthur M . Schneiderman All Rights Reserved.
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Arthur M. Schneiderman.
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All Rights Reserved
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Page 32
Nolan-Norton Presentation, July 19, 1990
Slide 31
ADI Half-Lives by month 5/89 to 4/90
60
50
40
30
20
10
0
May Jun
Jul
Aug Sep Oct Nov Dec Jan Feb Mar Apr
89
90
Hlf Life
5/89
9
6/89
7
7/89
7
8/89
7
9/89
8
10/89
10
11/89
11
12/89
15
1/90
47
2/90
60
3/90
60
4/90 N/A
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Arthur M. Schneiderman.
Revised 3/7/2016 11:30:00 AM
All Rights Reserved
c. 1990
Page 33
Nolan-Norton Presentation, July 19, 1990
Slide 32
Percent Of CRDs Not Matched (Jun 89 through May 90)
100
ADBV
ADS
10
Half
NS
48
Life (In months)
W/I
CRD %
CLD
DSP
NS
NS
IPD
N/A
MDL
MED
ADI
NS
NS
60+
©1987-2000 Arthur M . Schneiderman All Rights Reserved.
©1986-2000,
Arthur M. Schneiderman.
Revised 3/7/2016 11:30:00 AM
All Rights Reserved
Apr 90-CRDs not matched
Page 34
Nolan-Norton Presentation, July 19, 1990
Slide 33
Weeks Of Excess LT - NonExcess Orders Excluded (Jun 89 - May 90)
100
ADBV
ADS
CLD
DSP
IPD
MDL
10
MED
ADI
+
++
+
+
+
+
1
NS
15
Half
Life (In months)
61
57
W/I
CRD %
NS
NS
N/A
35
NS
NS
15
25
38
20
29
49
©1987-2000 Arthur M . Schneiderman All Rights Reserved.
©1986-2000,
Arthur M. Schneiderman.
Revised 3/7/2016 11:30:00 AM
All Rights Reserved
Dec 89-Excess LT
Page 35
Nolan-Norton Presentation, July 19, 1990
Slide 34
48 CUSTOMERS IN
VENDOR RATING DATABASE
ABB
AGFA
Allen Bradley
Allied Signal
Ametek
Apollo
AT&T
Brown Engineering
Compugraphic
Currie-Peak-Frazi
Eaton
Finnegan
Ford
General Electric
GEC
Gould
Hewlett-Packard
Honeywell
Hughes
Instron
JET Electronics
Kodak
Loral
Lucas
M/A-COM
Martin Marietta
Marquette Electric
Masscomp
Microcircuits Semiconductor
McDonald Douglas
Parker Air & Space
Penastar
Perkin Elmer
Raytheon
Reliance Electric
Rockwell
Sanders
Siemens
Sikorsky
Tektronix
Teleco
Teledyne
Teradyne
Texas Instruments
Trillium
United Technologies
Waters Associates
Westinghouse
©1987-2000 Arthur M . Schneiderman All Rights Reserved.
©1986-2000,
Arthur M. Schneiderman.
Revised 3/7/2016 11:30:00 AM
All Rights Reserved
c. 7/90-VRS Database
Page 36
Nolan-Norton Presentation, July 19, 1990
Slide 35
ON TIME DELIVERY, CUSTOMER MEASURED
100.00
QIP STARTED
%
L
A
T
E
10.00
HALF-LIFE = 10 MONTHS
1.00
Fe Ap
1987
Ju
Au Oc Dec Fe Ap
1988
Ju
Au Oc Dec Fe Ap
1989
Actual Data
Ju
Au Oc Dec Fe
1990
Trend
(Ave: 21 C9ompanies per point)
©1987-2000 Arthur M . Schneiderman All Rights Reserved.
©1986-2000,
Arthur M. Schneiderman.
Revised 3/7/2016 11:30:00 AM
All Rights Reserved
Feb 90-CM D
Page 37
Nolan-Norton Presentation, July 19, 1990
Slide 36
HEWLETT-PACKARD VENDO R RATINGS
year
ADI rank
total suppliers
1986
8
16
linear IC suppliers
1987
5
8
linear IC suppliers
1988
5
15
all IC suppliers
1989
1
12
all IC suppliers
*
*
category
tied with one other supplier
©1987-2000 Arthur M . Schneiderman All Rights Reserved.
©1986-2000,
Arthur M. Schneiderman.
Revised 3/7/2016 11:30:00 AM
All Rights Reserved
5/22/90-05220-1
Page 38
Nolan-Norton Presentation, July 19, 1990
Slide 37
ADS Q IP TEAM STRUCTURE
ADS SAFETY COMMITTEE
ON TIME DELIVERY
DIRTY HARRYS
PLANNING QIP
TRANSIT
WIP QIP
PPM STEERING
ALCATRAZ
BENT LEADS DIPS
ELIM INATORS
COG PPM
FINAL TEST ESD
HERM EDICS
SLASHERS
TEST EQUIPM ENT
YIELD STEERING
TEST
TRIM
VISUAL
FAB STEERING
BM W'S
DIRT DEVILS
ELIM INATORS
ERRORBUSTERS
ETCH JIT
ON TIM E DELIVERY
PROM IS ECN
WAFER SAVERS
TTM STEERING
DESIGN & LAYOUT
DESIGNER TASK FORCE
LAYOUT TASK FORCE
FABCATS
PROCESS DEVELOPM ENT
HANDO VER
SPC GROUP 1 707
SPC GROUP 11 OP07/27
SPC GROUP 12 574
SPC GROUP 14 521/534
SPC GROUP 3 711/712
SPC GROUP 4 569
SPC GROUP 8 570/1/3
SPC SOLDER DIP
WIRE BOND SPC
SETUP TIM E REDUCTION
©1987-2000 Arthur M . Schneiderman All Rights Reserved.
©1986-2000,
Arthur M. Schneiderman.
Revised 3/7/2016 11:30:00 AM
All Rights Reserved
6/11/90-06110-2
Page 39
Nolan-Norton Presentation, July 19, 1990
Slide 38
TYPICAL Q IP PRO JECTS
NAM E
M EM BERS
PRO JECT
M ETRIC
BMW'S
8 FAB LINE O PERATO RS
2 FAB TECHNICIANS
2 FAB ENGINEERS
3 FAB SUPERVISO RS
REDUCE THE Q UANTITY
O F BRO KEN/M ISSING
WAFERS PER M ILLIO N
M O VES
YIELD
ERRO RBUSTERS
6 FAB LINE O PERATO RS
3 FAB TECHNICIANS
1 FAB ENGINEER
1 FAB M ANAGER
REDUCE M ISPRO CESSING
IN PHO TO
YIELD
DIRT DEVILS
2 FAB LINE O PERATO RS
2 YIELD ENHANCEM ENT
1 FAB SUPERVISO R
1 Q .C. INSPECTO R
1 FAB TECHNICIAN
1 EQ UIPM ENT REPAIR
REDUCE PARTICLE
CO UNT IN FAB
YIELD
PLANNING Q IP
2 BUSINESS PLANNING
2 M ANUF. SUPERVISO RS
5 P.C. PLANNING
1 FINANCE
1 PURCHASING
1 CUSTO M ER SERVICE
INCREASE CUSTO M ER
SERVICE WHILE
REDUCING CYCLE TIM E
AND M INIM IZING
INVENTO RIES
O N TIM E DELIVERY
ALCATRAZ
5 TEST O PERATO RS
2 BRAND O PERATO RS
1 Q .A. ENGINEER
1 BRAND SUPERVISIO R
ELIM INATE FACTO RY
ESCAPES
PPM
FABCATS
1 C.A.S. O PERATO R
1 M ASK FAB M ANAGER
1 Q .C. M ANAGER
1 FAB M ANAGER
1 P.C. PLANNING
2 P/L CO O RDINATO RS
1 FAB CO O RDINATO R
M INIM IZE TAT O N NEW
PRO DUCT DEVELO PM ENT
LO TS
TIM E TO M ARKET
©1987-2000 Arthur M . Schneiderman All Rights Reserved.
©1986-2000,
Arthur M. Schneiderman.
Revised 3/7/2016 11:30:00 AM
All Rights Reserved
6/11/90-06110-3
Page 40
Nolan-Norton Presentation, July 19, 1990
Slide 39
©1986-2000,
Arthur M. Schneiderman.
Revised 3/7/2016 11:30:00 AM
All Rights Reserved
Page 41
Nolan-Norton Presentation, July 19, 1990
Slide 40
GOALS
cult ure
scorecard
IS
PROBLEM
SOLVING
projects
PRO BLEM SO LVING
M ETRICS
The Deming Cycle (PDCA)
1
PERCEPTION OF PROBLEM
2
EVALUATION OF
CURRENT SITUATION
3
ANALYSIS OF CAUSES
4
PLANNING OF
COUNTER-M EASURES
DO
5
IM PLEM ENTATION OF
COUNTER-M EASURES
CHECK
6
EVALUATION OF RESULTS
7
STANDARDIZATION
8
SUM M ARY & FUTURE PLANS
PLAN
WHAT
WHY
WHO
WHEN
WHERE
HO W
ACTIO N
©1987-2000 Arthur M . Schneiderman All Rights Reserved.
©1986-2000,
Arthur M. Schneiderman.
Revised 3/7/2016 11:30:00 AM
All Rights Reserved
5/22/90-05220-3
Page 42
Nolan-Norton Presentation, July 19, 1990
Slide 41
CENTRAL PRINCIPLES O BSERVED
IN TQ M IM PLEM ENTATIO N
Primacy of the Customer
customer first
customer satisfaction
market-in
Use of the PDCA cycle for continuous
improvement
Strong CEO and top management leadership
policy deployment
Education and training for all
Respect for all people
teamwork
participative management
©1987-2000 Arthur M . Schneiderman All Rights Reserved.
©1986-2000,
Arthur M. Schneiderman.
Revised 3/7/2016 11:30:00 AM
All Rights Reserved
4/24/90-04240-2
Page 43
Nolan-Norton Presentation, July 19, 1990
Slide 42
GOALS
culture
scorecard
THE Q IP CULTURE
IS
PROBLEM
SOLVING
projects
M ETRICS
We each have a dual function
daily job
SDCA cycle
process improvement
PDCA cycle
We are committed to improving customer satisfaction
We are dedicated to (kaizen)
continuous improvement
We are part of a parallel organization:
functional and cross-functional
We are a continuously learning organization
©1987-2000 Arthur M . Schneiderman All Rights Reserved.
©1986-2000,
Arthur M. Schneiderman.
Revised 3/7/2016 11:30:00 AM
All Rights Reserved
4/8/90-04080-4
rev 7/9/90
Page 44
Nolan-Norton Presentation, July 19, 1990
Slide 43
REQUIREMENTS FOR QUALITY IMPROVEMENT
Top Management
Commitment
leadership
profit opportunity
changed objectives
competition
hands-on management
Systematic
Sense of Urgency
Method
proven results
kaizen
data driven
fuel for change
cross-functional
visibility
support
Pilot Projects
Company Wide
Involvement
overcome skepticism
weakest link
build credibility
internal customers
get ball rolling
develop champions
policy deployment
vendors/customers
Organization/
©1987-2000 Arthur M . Schneiderman All Rights Reserved.
©1986-2000,
Arthur M. Schneiderman.
Revised 3/7/2016 11:30:00 AM
All Rights Reserved
Systems
training
guiding
:
monitoring
rewarding
:
12/16/85-ADI-2
Page 45