1. Team 1: William Buckley Mike Alcantara Max Weiss Michelle Dennis
United Technologies
Team 1:
William Buckley
Mike Alcantara
Max Weiss
Michelle Dennis

2. Introduction Fortune 500 Company 20th largest manufacturer in the US
Founded in 1853
Carrier Air Conditioning, Hamilton Aerospace, Otis Elevators, Pratt & Whitney, Sikorsky Helicopter, and UTC Fire and Security, …
20th largest manufacturer in the US
47th largest employer in the world
220,000 employees in 62 countries

3. George David, CEO Former Otis Elevator President
Promoted to CEO in 1994
Closed several plants and laid off more than 20,000 employees
Hired Yuzuru Ito
UTC’s Quality Guru
Worked with David while at Otis Elevator

4. ACE – Achieving Competitive Excellence
Based on Ito’s Philosophy
Used to train managers and workforce in the fundamentals of process improvement.
Managers are trained to empower production line workers to make quality improvements to
products
processes
working conditions
Employee empowerment at the lowest level

5. ACE (cont.) Uses Statistical Analysis
Participants evaluated by internal auditors
Bronze, Silver, Gold
Designed to produce a multitude of small production improvements that are originated by the workforce
ACE “Pilots” - identify production and process improvements in their area of expertise

6. UTC’s quality vision
A quality-first mindset governs all UTC employee actions.
External and internal customers receive innovative products and services that completely satisfy life cycle requirements.
Quality improvement is the job of every UTC employee.
Based on the Principles of Total Quality

7. UTC’s Commitments Performance Pioneering Innovation
customer needs and feedback
Pioneering Innovation
Cultivating its heritage of invention
Personal Development
Education
Social Responsibility
Safety, ethics, and environmental issues
Shareowner Value
Financial Returns

8. Quality Improvement Results
600% rise in total returns
$1 billion in cost reductions annually
Due to Supply Chain Purchasing process improvements
In the first six months of 2004
Net Income grew 25% to $1.4 billion
Net Sales increased 26% to $18.4 billion
In 2005
Spent $2.9 billion on R&D
Net Income of $3.2 billion on revenues of $42.7 billion
Consolidating 1000’s of suppliers

9. Quality at UT Automotive
Problems:
inconsistent data computations across 90 plants
inability to benchmark quality metrics
time-consuming manual collection of data
Solution:
found powerful software tools that gave them
Robust multidimensional analysis capabilities
With overall ease of use
Broad graphics capabilities

10. Immediate access to multiple layers of data,
UT Automotive Results
Immediate access to multiple layers of data,
Shared key indicators that trigger action by plant managers
Increased productivity through
multi-dimensional analysis,
powerful graphical analysis capabilities, and
faster, more informed decision making.

11. David’s Three Classes of Improvement
Quality of Products – Defined by Standard Procedures
Quality Control Process Charting (QCPC)
5S => sort, straighten, standardize, sustain, and shine
Root Cause Analysis
No Band-Aid Solutions
Process Re-Engineering
minimized the handoffs between operations and operatives => minimized delays, inventories, distance traveled, and costs
consequent on process mapping,
reductions in numbers of operations we employ to make a part, assembly or product,
thereby minimizing handoffs between operations and operatives and therefore delays, inventories, distances travelled, and costs.
sort (keep what you need and discard the rest), straighten (a place for everything and everything
in its place), standardize (create an organized, logical work flow), sustain (keep it up), and shine (we know what that
means)

12. References http://www.quality.nist.gov/Foundation.htm
The Foundation for the Malcolm Baldrige National Quality Award
Remarks of George David, Chairman & Chief Executive Officer. UTC Environment, Health and Safety Conference
Business Week, The Unsung CEO
United Technologies Automotive Drives IT Success Through Business Intelligence
UTC - ACE, Achieving Competitive Excellence through efficiency - hvac, fuel cells, helicopters, security systems, elevators
Oligopoly profile: United Technologies