SIX SIGMA
Presented by
JOHN A. LUPIENSKI
Copyright Motorola Inc.
“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
13%
Japan
6%
United
States
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
COMMUNICATIONS
ENTERPRISE
PERSONAL
COMMUNICATIONS
SECTOR
Cellular Phones
Pagers
 Consumer 2-Way
Products
 Accessories


Copyright Motorola Inc.
NETWORK
MANAGEMENT
GROUP
Terrestrial
Network Operators
 Satellite Network
Operators

COMMERCIAL,
GOVERNMENT
AND INDUSTRIAL
SOLUTIONS SECTOR
Systems
Equipment
 Software
 Services
 Applications
 Content


NETWORK
SOLUTIONS
SECTOR
Cellular
Infrastructures
 Satellite
Infrastructures

GLOBAL TELECOM
SOLUTIONS
GROUP
Global Network
Operator Solutions
 Integrate PCS &
NSS Products

INTERNET AND
NETWORKING
GROUP
Servers
S/W Applications
 Internet Solutions
 Data Networking


“Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our Future”
ACCES
AUTOMOTIVE.COMPONENT,
COMPUTER AND
ENERGY SECTOR
AUTOMOTIVE
& INDUSTRIAL
ELECTRONICS
GROUP
Powertrain Controls
Autobody Controls
 Sensors
 Telematics
COMPONENT
PRODUCTS
GROUP
Ceramics
Lighting
Quartz Products
 Oscillators
 SAWs
ENERGY
SYSTEMS
GROUP
Battery Products
Battery Chargers
 Power Supplies






Copyright Motorola Inc.
FLAT PANEL
DISPLAY
DIVISION

Flat Panel Displays
MOTOROLA
COMPUTER
GROUP


Embedded Systems
Single Board PCs
“Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our Future”
SPS
SEMICONDUCTOR
PRODUCTS
SECTOR
TRANSPORTATION
SYSTEMS
GROUP
Systems Electronics
Transportation
Technology
 Industrial
CONSUMER
SYSTEMS
GROUP
Imaging
Displays & Modems
 Storage
 Entertainment
 Consumer Media
WIRELESS
SUBSCRIBER
SYSTEMS GROUP
Telephony
Messaging
 Wireless
 New Media
NETWORK AND
COMPUTING
SYSTEMS GROUP
Modems
Switching
 Networking
 Customer Equipment
 Base Stations
 PC Technology
SEMICONDUCTOR
COMPONENTS
GROUP
Key Components
Distribution
 Contract
Manufacture
 Emerging Markets










Copyright Motorola Inc.
“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
Tianjin
Brampton,
North York
JAPAN
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
SINGAPORE
MALAYSIA
BRAZIL
Sao Paulo
Copyright Motorola Inc.
INDIA
Bangalore
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
1982 • MCQC began a process of biennial QSRs
Q
S
R
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 Registrar’s 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
Domestic Airline
Flight Fatality Rate
(3.4 ppm)
1
2
3
4
SIGMA
Copyright Motorola Inc.
5
6
(0.43 ppm)
7
(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
• Output Variables
Profitability
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
• Output Variables
Profitability
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”
Normal Distribution - Gaussian Curve


Sigma =  = Deviation
2
( xi  x)
n 1
=
( Square root of variance )
Copyright Motorola Inc.
7
6
5
4
3
2
1
0
-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 > = 1.5
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 ”Sigma’s” (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
Design specification width
Cp =
6
Mean - Spec Limit
Cpk = Min.
3

1
2
3
4
5
6
7
8
Cp
0.33
0.66
1
1.33
1.66
2
2.33
2.66
0.5
0.83
1.16
1.5
1.83
2.16
Cpk
-0.16 0.16
With a maximum process shift of +/- 1.5 
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“Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our Future”
The Opportunities...
Different Numbers of Opportunities ...
Manufacturing Process
6
Administrative Areas
Customers or Suppliers
- Customers or Suppliers: One opportunity per product delivered or
per component purchased.
- Manufacturing process:
- Administrative areas:
Copyright Motorola Inc.
 Opportunities at each process step)
Number of opportunities for error for
each activity performed
“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
A quality level of "6" corresponds to less
than 3.4 defects per million Opportunities
( i.e., correct 99.99966 % of the time )
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 :

3
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.
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“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
6
3
Supplier
Enter
Needs
Process
Activity
2
5
Exit 1
Product/Service
Customer
4
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
TCS
Culture
of
Excellen
Copyright Motorola Inc.
“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
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“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
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“Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our Future”
Empowered Teams
• It’s a business-driven process, not a human relations
program
• It starts with senior management - can’t be delegated
• Employees want to take ownership and become world
class producers
• You don’t need a crisis to get started
• Empowerment affects all functions, not just factories
• Done right, it’s 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
Copyright Motorola Inc.
“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
Copyright Motorola Inc.
“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
6
MY95
1.00
J94
Copyright Motorola Inc.
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
M
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
BM
Quality System Review
QUA590
Team Problem Solving NonManufacturing
CES103
Design for Manufacturability
M
Core
GBM
M
Quality Function Deployment
M
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
Black
Belt
Programs?
• GE has very successfully instituted this program
– 4,000 trained Black Belts by YE 1997
– 10,000 trained Black Belts by YE 2000
– “You haven’t 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
– IBM
– Navistar
Copyright Motorola Inc.
-Texas Instruments
- ABB
- Citibank
“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
~ 16 Billion
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
Offensive
Strategy
Gain
Customer
Loyalty
Trust
Innovation &
Implementation
Anticipate
Customer Needs
Exceed
Customer Expectations
Defensive
Strategy
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
Totally
Satisfied
Loyalty
• Regulated monopoly or few
substitutes
• Dominant brand equity
• High cost of switching
• Powerful Loyalty program
• Proprietary technology
Telephone Company
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%
75.9%
74.0%
70%
60%
55
38
60
50%
40%
30%
20%
44
40
30
18.1%
19.5%
15.7%
10%
6.5%
5.3%
6.0%
0%
1995
1996
% Satisfied
Would Continue to Use
Motorola in the Future
1997
% Top Box
Definitely Would
Performance Compared to Competitors
60%
79.0%
Might
Willingness to
Repurchase Products
in the Future
Definitely Would Not
Ease of Doing Business
70%
58.3%
57.4%
Would Recommend
Motorola to Colleagues
63.5%
60%
50%
40.3%
40%
50%
35.9%
40%
30%
31.5%
30%
20%
20%
10%
6.7%
1.4%
0%
How we rate in Comparison
with the Best Supplier
Much Better/
Very Satisfied
Copyright Motorola Inc.
How Satisfied is the Customer with
us in Comparison to the Competition
Similar/Somewhat
Satisfied
Much Worse/
Not Satisfied
10%
5.0%
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 doesn’t 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 from
manufacturing.
Copyright Motorola Inc.
“Quality Is Our Job, Customer Satisfaction Is Our Duty, Customer Loyalty Is Our Future”
A Quality Plan’s 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 don’t get too focused on
winning the metric game.
• Be careful that you don’t loose sight of the
customer’s priorities.
• Be careful that you don’t 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”