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©1987, 2000 Arthur M. Schneiderman All Rights Reserved. Slide 1 QIP Strategic Plan Presentation c. August 1987 Arthur M. Schneiderman Title
©1987, 2000 Arthur M. Schneiderman All Rights Reserved. Slide 2 c. 10/28/86-QIP-1 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: convincingly demonstrate top management's ongoing commitment to QIP clarify our current QIP status reaffirm to the entire organization the "why and what" of 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 ADI QIP LONG RANGE PLAN
©1987, 2000 Arthur M. Schneiderman All Rights Reserved. Slide 3 c. 10/10/86-QIP-2 rev. 10/26/86 FACILITY: 4" wafer fab and assembly of bipolar IC's built 1974, 1300 employees OVERALL GOAL: (1980) "..to have our products rated #1 in quality by more than 50% of our customers by " RESULTS: 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 TTL products 45% 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 TEXAS INSTRUMENTS, HIJI, JAPAN
©1987, 2000 Arthur M. Schneiderman All Rights Reserved. Slide 4 c. 10/13/86-QIP-3 years Source: IMPRO 86, 10/9-10/86 PPM , customer measured defect levels Hiji Plant, Japan TEXAS INSTRUMENTS 50 % improvement each: 10.3 months defect levels WSJ, 10/3/86
©1987, 2000 Arthur M. Schneiderman All Rights Reserved. Slide 5 c. 10/26/86-QIP-4 PHASE: QIP YEAR: ACTIVITIES/ ORGANIZATION: OUTPUTS: STARTUPROLLOUTINSTITUTIONALIZE initial QIP status survey divisional QIP Councils corp. Quality Steering Com. QSC develops goals quality manifesto policy deployment structures QSC focus on: periodic quality audits internal/external PR QIP part of each organization's culture 3-5 pilot projectsall div's involved in QIP activities success stories interest in QIP demand for QIP training GUIDING TRAINING MONITORING REWARDING heroes ADI QIP PLAN
©1987, 2000 Arthur M. Schneiderman All Rights Reserved. Slide 6 c. 10/28/86-QIP-5 MANAGEMENT TOOLS autonomous div's shared resources flexibility customer focus external internal organizational development participative mgmt. innovation environment information systems personal growth RESULTS innovative product process mfg. excellence quality productivity cycle time customer driven service support responsiveness cooperativeness QP I PROPOSED ADI QIP MODEL
©1987, 2000 Arthur M. Schneiderman All Rights Reserved. Slide 7 c. 10/28/86-QIP QIP STATUS SURVEY OBJECTIVE: to determine the current state of each division/corporate's QIP activities DIMENSIONS: is there a QIP Council? membership charter meeting frequency prospectives on QIP Organization: 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 storieschallenges
©1987, 2000 Arthur M. Schneiderman All Rights Reserved. Slide 8 c. 10/28/86-QIP-7 rev. 7/31/87 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 performance price quality/reliability lead time delivery support responsiveness cooperativeness features willingness to form partnership safety operating cost maintenance cost expected life resale value durability serviceability reputation understanding aesthetics
©1987, 2000 Arthur M. Schneiderman All Rights Reserved. Slide 9 c. 10/27/86-QIP-8 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 < 10 PPM defect levels >99.8% on time delivery <3 weeks lead time <3 weeks mfg. cycle time <20 weeks design cycle 25X reduction in active WIP 250X reduction in changeover times Other Areas timely financial reporting reduced turnover effective meetings actionable information perfect safety records
©1987, 2000 Arthur M. Schneiderman All Rights Reserved. Slide 10 c. 10/27/86-QIP-9 DATA INFORMATION KNOWLEDGE ACTION THE KNOWLEDGE PYRAMID
©1987, 2000 Arthur M. Schneiderman All Rights Reserved. Slide 11 c. 10/28/86-QIP-10 Ryuzaburo Kaku, Canon waste in rejects waste in parts inventory waste in indirect labor waste in equipment and facilities waste in expenses waste in design waste in human resources waste in operations waste in production startup of new products Taiichi Ohno, Toyota (MUDA) The Nine WastesThe Seven Wastes waste in processing itself waste of time waste of making defective parts waste of motion waste of overproduction waste of inventory waste of transportation FORMS OF WASTE
©1987, 2000 Arthur M. Schneiderman All Rights Reserved. Slide 12 c. 10/27/86-QIP-11 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 13 12/12/85-ZD3-QIP-12 KAIZEN INNOVATION FOCUS design, production and marketing science and technology TARGETING broad: quality, cost safety, efficiency product development narrow: feature technique EXPERTISE conventional know-how leading edge, break through CAPITAL NEEDS very modest major PROGRESSsmall steps big jumps RESULTS continuous spontaneous VISABILITY not dramatic very dramatic INVOLVEMENT everyone selected few COOPERATION group activity individual RECOGNITION results effort, process EVOLUTIONREVOLUTION effort vs. investment
©1987, 2000 Arthur M. Schneiderman All Rights Reserved. Slide 14 11/10/86-QIP-13 ADI CORPORATE GOALS MEASURES 1987 PRIORITIES ALL DIV'sLOCAL CUSTOMER SERVICE INNOVATION MANUFACTURING EXCELLENCE HUMAN RESOURCES BUSINESS SUCCESS ON TIME DELIVERY PRIMARY REDUCED DESIGN CYCLE TIME REDUCED MFG. CYCLE TIME TURNOVER RATE COST MANAGEMENT CONTINUED QIP THRUSTS IN IMPROVED DIVISIONAL PRIORITIZATION OF NEW QIP THRUSTS CUSTOMER SERVICE AND CYCLE TIMES ADI QIP HISTORIC OVERVIEW
©1987, 2000 Arthur M. Schneiderman All Rights Reserved. Slide 15 ADI QIP DEPLOYMENT THE CORPORATE OBJECTIVE Ray Stata Consensus Employees CustomersStockholdersSuppliersCommunity CORPORATE QIP COUNCIL Innovation Manufacturing Excellence HR Excellence MIS Excellence cycle time PPM yield time-to-market CAD ?? Manufacturing Council Technical Council MANUFACTURABILITY CORPORATE QIP OBJECTIVES Customer Service on-time delivery lead time ATP QIP HR Forum HRAC 6/15/87-QIP-14/100
©1987, 2000 Arthur M. Schneiderman All Rights Reserved. Slide 16 c. 7/15/87-QIP-15 ADI CORPORATE QIP COUNCIL Jerry Fishman Kozo Imai Larry LaFranchi Bill Manning Art Schneiderman, Chairman Ray Stata Graham Sterling Goodloe Suttler Tom Urwin MEMBERS: CHARTER: QIP Goals Deployment QIP Organization priorities Training Juran Monitoring metrics Incenting/Rewarding Sue Thomson Doug Newman
©1987, 2000 Arthur M. Schneiderman All Rights Reserved. Slide 17 c. 7/12/87-QIP-16/QS-16B rev. 7/25/87 ADI QIP GOALS (IC OPERATIONS) METRIC1987 HALF-LIFE 1992 On time delivery Lead time* Manufacturing Cycle Time Yield Outgoing defect levels Time to Market EXTERNAL INTERNAL CORPORATE-WIDE COST MANAGEMENT WHILE AGGRESSIVELY PURSUING Process Defect Levels 85% 10 wks 500 PPM >99.8% <10 PPM <3 wks 15 wks 20% 9 9>50% 5000 PPM6 <10 PPM 4-5wks 36 mths 24 6 mths *at 95% level of service
©1987, 2000 Arthur M. Schneiderman All Rights Reserved. Slide 18 7/12/87-QIP-17 A DIVISIONAL QIP IMPLEMENTATION ADI QIP Goals Division QIP Council GM, Chairman Staff Division Specific Goals QIP Manager STEERING QIPSPROBLEM SOLVING QIPS PPM time to market innovation yield ESD correlation
©1987, 2000 Arthur M. Schneiderman All Rights Reserved. Slide 19 AN EXAMPLE OF QIP DEPLOYMENT Meet Customer's Needs Customer Service On Time Delivery Eliminate Double Bookings ATP "when late how late" Lead time % late Cause No Inventory (factory controllable) Late from PI Credit Hold (Bill Casey) Over credit limit Kits late TO PI Scheduling error Change to "pull" system Increase credit line Letter to Customer Sales Engineer Expedites Metrics Corporate QIP Council ATP QIP Team Division 7/14/87-QIP-18
©1987, 2000 Arthur M. Schneiderman All Rights Reserved. Slide 20 A COMPARISON: objective/ problem statement general/vague not agreed upon multiple/conflicting specific measuresofthard goal:level time frame unspecified/arbitrary trivial/impossible clear achievable/stretch constraints unidentified unspecified explicit 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 dominationteamwork words used I/yourwe/our stress level high/shoutinglow/laughing attitude chorefun priority lowhigh meetings ad hocregular attendance >95% personal growth nilsignificant success status quoimprovement RESULTS SPORADICCONTINUOUS zero sum few winners + sum many winners self sacrifice TASK FORCEQIP TEAM vs solutions un-ownedowned un-implemented implemented perspective parochialcompany-wide 7/25/87-QIP-19
©1987, 2000 Arthur M. Schneiderman All Rights Reserved. Slide 21 ADI QIP DEPLOYMENT STATUS August, 1987 Board of Directors Graham Sterling Larry SullivanMel Sallen Jerry Fishman Joe Hinchey Ray Stata Arnie Kanarick Paul White Larry LaFranchi Hank Krabbe Jerry Fishman Tom Urwin Ted Dintersmith Bill Pratt Vic Sabella Tom UrwinBrian McAloonJerry Fishman Peter Holloway Goodloe Suttler PPM QIP Cycle time QIP On time QIP Time to market QIP Financial QIP PPM QIP Cycle time QIP On time QIP Yield QIP Industry Marketing QIP Admin QIP Bill Manning On time QIP Isolator strategy QIP CIS QIP Dennis Buss Jeff Riskin Corporate QIP Council EURO QIP Bill Casey Credit QIP Kozo Imai Warehouse QIP Ron Castonguay ESD QIP Correlation QIP Credit line QIP Art Sales/Marketing PLCM QIP Sales QIP Schneiderman ASIC QIP 8/3/87-QIP-20
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