Transcript Document

QIP Strategic Plan Presentation
c. August 1987
Arthur M. Schneiderman
©1987, 2000 Arthur M. Schneiderman All Rights Reserved.
Slide 1
Title
ADI QIP LONG RANGE PLAN
OBJECTIVES
to achieve widespread consensus on, and commitment to a set
of QIP goals to be achieved by the end of our next strategic
planning cycle (1992)
to establish an approximate 6 year plan identifying key
milestones and activities
to agree on a detailed 1987 QIP Plan that will:
clarify our current QIP status
reaffirm to the entire organization the "why and what" of QIP
convincingly demonstrate top management's ongoing commitment to QIP
build widespread confidence in the effectiveness of a systematic QIP
generate the momentum that will be needed if we are to meet our goals
©1987, 2000 Arthur M. Schneiderman All Rights Reserved.
Slide 2
c. 10/28/86-QIP-1
TEXAS INSTRUMENTS, HIJI, JAPAN
FACILITY:
4" wafer fab and assembly of bipolar IC's
built 1974, 1300 employees
OVERALL GOAL:
(1980)
RESULTS:
"..to have our products rated #1 in quality by
more than 50% of our customers by 1985.."
defect levels reduced to 20 PPM (WSJ, 10/3/86)
average unit cost down by factor of 7
% customers rating them #1 in 1985:
linear products
45%
TTL products
60%
WINNERS OF 1985 DEMING PRIZE
"We've gone as far as we can in manufacturing. We are
focusing on IC design for further defect reduction."
Kimio Nonaka, Manager of TQC
©1987, 2000 Arthur M. Schneiderman All Rights Reserved.
Slide 3
c. 10/10/86-QIP-2
rev. 10/26/86
TEXAS INSTRUMENTS
Hiji Plant, Japan
customer measured defect levels
10,000
50 % improvement each:
10.3 months
defect levels
1000
100
WSJ, 10/3/86
10
0
1
Source: IMPRO 86, 10/9-10/86
2
3
4
5
6
7
years
©1987, 2000 Arthur M. Schneiderman All Rights Reserved.
Slide 4
c. 10/13/86-QIP-3
ADI QIP PLAN
STARTUP
PHASE:
ROLLOUT
INSTITUTIONALIZE
QIP YEAR:
3-5 pilot projects
OUTPUTS:
success stories
heroes
interest in QIP
4
QSC focus on:
periodic quality audits
internal/external PR
3
QSC develops
goals
quality manifesto
policy deployment
structures
corp. Quality Steering Com.
ORGANIZATION:
2
divisional QIP Councils
ACTIVITIES/
initial QIP status survey
1
all div's involved
in QIP activities
demand for
QIP training
©1987, 2000 Arthur M. Schneiderman All Rights Reserved.
Slide 5
5
6
QIP part
of each
organization's
culture
GUIDING
TRAINING
MONITORING
REWARDING
c. 10/26/86-QIP-4
PROPOSED ADI QIP MODEL
RESULTS
information systems
organizational development
participative mgmt.
innovation environment
personal growth
Q I
P
customer focus
external
internal
flexibility
shared resources
autonomous div's
©1987, 2000 Arthur M. Schneiderman All Rights Reserved.
Slide 6
c. 10/28/86-QIP-5
1987 QIP STATUS SURVEY
OBJECTIVE:
to determine the current state of each
division/corporate's QIP activities
DIMENSIONS:
Organization:
is there a QIP Council?
membership
charter
meeting frequency
prospectives on QIP
commitment
sense of urgency
are there QIP training programs?
are there trained facilitators?
Projects
how many?
how selected
who participated
how long
use of SQC or other tools?
Results
quantitative measures of improvement
(improvement curves)
ADI QIP STATUS REPORT
success stories
©1987, 2000 Arthur M. Schneiderman All Rights Reserved.
challenges
Slide 7
c. 10/28/86-QIP-6
ADI 1992 QIP GOALS
EXTERNAL PERSPECTIVE
To have our products rated #1 in
TOTAL VALUE
by more than 50% of our customers
based on:
right products
lead time
performance
delivery
features
support
price
responsiveness
quality/reliability
cooperativeness
willingness to
form partnership
safety
operating cost
maintenance cost
expected life
resale value
©1987, 2000 Arthur M. Schneiderman All Rights Reserved.
durability
serviceability
reputation
understanding
aesthetics
Slide 8
c. 10/28/86-QIP-7
rev. 7/31/87
ADI 1992 QIP GOALS
INTERNAL PERSPECTIVE
To constantly strive for the elimination of all
FORMS OF WASTE
at all entities, functions and levels within ADI
Manufacturing and Design
Other Areas
< 10 PPM defect levels
timely financial reporting
>99.8% on time delivery
reduced turnover
<3 weeks lead time
effective meetings
<3 weeks mfg. cycle time
actionable information
<20 weeks design cycle
perfect safety records
25X reduction in active WIP
250X reduction in changeover times
©1987, 2000 Arthur M. Schneiderman All Rights Reserved.
Slide 9
c. 10/27/86-QIP-8
THE KNOWLEDGE PYRAMID
ACTION
KNOWLEDGE
INFORMATION
DATA
©1987, 2000 Arthur M. Schneiderman All Rights Reserved.
Slide 10
c. 10/27/86-QIP-9
FORMS OF WASTE
(MUDA)
Ryuzaburo Kaku, Canon
Taiichi Ohno, Toyota
The Nine Wastes
The Seven Wastes
waste in rejects
waste in processing itself
waste in parts inventory
waste of time
waste in indirect labor
waste of making defective parts
waste in equipment and facilities
waste of motion
waste in expenses
waste of overproduction
waste in design
waste of inventory
waste in human resources
waste of transportation
waste in operations
waste in production startup of
new products
©1987, 2000 Arthur M. Schneiderman All Rights Reserved.
Slide 11
c. 10/28/86-QIP-10
TOP MANAGEMENT'S 1987 GOALS
Guide:
quality manifesto
overall goals (quantitative and measurable)
steering committee charter
incentives implications
Get Trained:
(on-going)
Juran on Quality Improvement
statistical methods
quality literature
Set Example:
QIP projects (1-2 each)
e.g.: information systems
customer interviews
Be Visible:
regular "air time" to QIP
periodic (semi-annual?) QIP Audits
reward successes (non-financial)
annual QIP award?
integrate QIP into other activities
strategic planning
various Councils
various Staffs
10-20% of their TIME spent on QIP activities
©1987, 2000 Arthur M. Schneiderman All Rights Reserved.
Slide 12
c. 10/27/86-QIP-11
KAIZEN
design, production
and marketing
vs.
FOCUS
broad:
quality, cost
safety, efficiency
product development
TARGETING
conventional
know-how
EXPERTISE
very modest
CAPITAL
NEEDS
small steps
PROGRESS
continuous
RESULTS
not dramatic
INNOVATION
VISABILITY
everyone
INVOLVEMENT
group activity
COOPERATION
effort, process
RECOGNITION
EVOLUTION
©1987, 2000 Arthur M. Schneiderman All Rights Reserved.
science and
technology
narrow:
feature
technique
leading edge,
break through
major
investment
big jumps
spontaneous
very dramatic
selected few
individual
effort
results
REVOLUTION
Slide 13
12/12/85-ZD3-QIP-12
ADI QIP HISTORIC OVERVIEW
1987 PRIORITIES
PRIMARY
ADI CORPORATE GOALS
ALL DIV's
MEASURES
CUSTOMER SERVICE
ON TIME DELIVERY
INNOVATION
REDUCED DESIGN CYCLE TIME
MANUFACTURING EXCELLENCE
REDUCED MFG. CYCLE TIME
HUMAN RESOURCES
TURNOVER RATE
BUSINESS SUCCESS
COST MANAGEMENT
LOCAL
CONTINUED QIP THRUSTS IN IMPROVED
CUSTOMER SERVICE AND CYCLE TIMES
DIVISIONAL PRIORITIZATION OF NEW QIP THRUSTS
©1987, 2000 Arthur M. Schneiderman All Rights Reserved.
Slide 14
11/10/86-QIP-13
ADI QIP DEPLOYMENT
Ray Stata
THE CORPORATE OBJECTIVE
Customers
Employees
Stockholders
Consensus
Suppliers
Community
CORPORATE QIP COUNCIL
Manufacturing
Excellence
on-time delivery
lead time
cycle time
PPM
yield
Innovation
MIS
Excellence
?
?
time-to-market
CAD
ATP QIP
Manufacturing
HR
Excellence
HRAC
HR Forum
MANUFACTURABILITY
Technical
Council
Council
CORPORATE QIP OBJECTIVES
©1987, 2000 Arthur M. Schneiderman All Rights Reserved.
Slide 15
6/15/87-QIP-14/100
ADI CORPORATE QIP COUNCIL
MEMBERS:
Jerry Fishman
Kozo Imai
Larry LaFranchi
Bill Manning
Doug Newman
Art Schneiderman, Chairman
Ray Stata
Graham Sterling
Goodloe Suttler
Sue Thomson
Tom Urwin
CHARTER:
QIP Organization
QIP Goals Deployment
Training
priorities
Juran
Monitoring
metrics
Incenting/Rewarding
©1987, 2000 Arthur M. Schneiderman All Rights Reserved.
Slide 16
c. 7/15/87-QIP-15
ADI QIP GOALS
(IC OPERATIONS)
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
*at 95% level of service
©1987, 2000 Arthur M. Schneiderman All Rights Reserved.
Slide 17
c. 7/12/87-QIP-16/QS-16B
rev. 7/25/87
A DIVISIONAL QIP IMPLEMENTATION
ADI QIP Goals
Division QIP Council
Division Specific
Goals
GM, Chairman
QIP Manager
Staff
STEERING QIPS
PROBLEM SOLVING QIPS
PPM
time to
market
correlation
ESD
yield
©1987, 2000 Arthur M. Schneiderman All Rights Reserved.
innovation
Slide 18
7/12/87-QIP-17
AN EXAMPLE OF QIP DEPLOYMENT
Corporate
QIP Council
Meet Customer's Needs
Customer Service
ATP QIP
Team
On Time Delivery
Eliminate Double Bookings
ATP
Metrics
"when late
how late"
Lead time
No Inventory
(factory controllable)
% late
Cause
Credit Hold
(Bill Casey)
Division
Over credit limit
Late from PI
Kits late TO PI
Increase credit line
Scheduling error
Letter to Customer
Sales Engineer Expedites
Change to "pull" system
©1987, 2000 Arthur M. Schneiderman All Rights Reserved.
Slide 19
7/14/87-QIP-18
A COMPARISON:
TASK FORCE
vs
QIP TEAM
objective/
problem statement
general/vague
not agreed upon
multiple/conflicting
specific
measure
soft
hard
unspecified/arbitrary
trivial/impossible
clear
achievable/stretch
constraints
unidentified
unspecified
explicit
perspective
parochial
company-wide
tools
qualitative
assertion/opinion
horse trading
politics/pressure
quantitative
7 tools/SQC
7 new tools
experiment design
participation
narrow/exclusive
assigned/involuntary
broad
welcomed
many volunteers
tone
confrontary
finger pointing
defensive
cooperative
constructive
behavior
domination
teamwork
words used
I/your
we/our
stress level
high/shouting
low/laughing
attitude
chore
fun
priority
low
high
meetings
ad hoc
regular
goal:
level
time frame
attendance
>95%
personal growth
nil
significant
success
status quo
zero sum
few winners
improvement
+ sum
many winners
self sacrifice
solutions
un-owned
un-implemented
owned
implemented
RESULTS
SPORADIC
CONTINUOUS
©1987, 2000 Arthur M. Schneiderman All Rights Reserved.
Slide 20
7/25/87-QIP-19
ADI QIP DEPLOYMENT STATUS
August, 1987
Board of
Directors
Ray Stata
Corporate QIP Council
Arnie Kanarick
Ray Stata
Ron Castonguay
Paul White
Jerry Fishman
Mel Sallen
Kozo Imai
Larry Sullivan
Art
Schneiderman
Joe Hinchey
Bill Casey
Warehouse QIP
Sales/Marketing
Bill Manning
Tom Urwin
Vic Sabella
Sales QIP
Isolator strategy QIP
PLCM QIP
On time QIP
Brian McAloon
Larry LaFranchi
Credit QIP
Credit line QIP
Dennis Buss
Jerry Fishman
Graham Sterling
CIS QIP
Hank Krabbe
Bill Pratt
Tom Urwin
Financial QIP
Industry Marketing QIP
PPM QIP
Admin QIP
Cycle time QIP
ASIC QIP
On time QIP
EURO QIP
Jeff Riskin
Goodloe Suttler
Peter Holloway
Jerry Fishman
Time to market QIP
©1987, 2000 Arthur M. Schneiderman All Rights Reserved.
Ted Dintersmith
PPM QIP
ESD QIP
Correlation QIP
Cycle time QIP
On time QIP
Yield QIP
Slide 21
8/3/87-QIP-20