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