QUALITY

@
• Motorola Overview
• Quality Journey
• Deployment
• Results
• Lessons Learned
PRESENTED BY:
ASIM RIAZ
MUHAMMAD ADIL FAYYAZ
MUHAMMAD ADEEL QAISAR
MUHAMMAD HASEEB ASLAM
 What We Will Cover

• Motorola Overview
• Quality Journey
• Deployment
• Results
• Lessons Learned
 Motorola Statistics

• 1997 Sales $29.8 Billion

• 24th in Fortune 500
• 1st in Electronics Manufacturing
• 7th in Total Exports
• 142,000 Employees in 53 countries
 1997 Sales

Latin America,
Africa, ROW
13% United
Japan States
6% 42%
China/
Hong Kong
11%

Asia
Pacific
9%
Europe
19%
 Communications Enterprise

THE
COMMUNICATIONS
ENTERPRISE

PERSONAL NETWORK COMMERCIAL, NETWORK GLOBAL TELECOM INTERNET AND

COMMUNICATIONS MANAGEMENT GOVERNMENT SOLUTIONS SOLUTIONS NETWORKING
SECTOR GROUP AND INDUSTRIAL SECTOR GROUP GROUP
SOLUTIONS SECTOR

 Cellular Phones  Terrestrial  Systems  Cellular  Global Network  Servers

 Pagers Network Operators  Equipment Infrastructures Operator Solutions  S/W Applications
 Consumer 2-Way  Satellite Network  Software  Satellite  Integrate PCS &  Internet Solutions

Products Operators  Services Infrastructures NSS Products  Data Networking

 Accessories  Applications

 Content
 ACCES

AUTOMOTIVE.COMPONENT,
COMPUTER AND
ENERGY SECTOR

AUTOMOTIVE COMPONENT ENERGY FLAT PANEL MOTOROLA

& INDUSTRIAL PRODUCTS SYSTEMS DISPLAY COMPUTER
ELECTRONICS GROUP GROUP DIVISION GROUP
GROUP

 Powertrain Controls  Ceramics  Battery Products  Flat Panel Displays  Embedded Systems
 Autobody Controls  Lighting  Battery Chargers  Single Board PCs
 Sensors Quartz Products  Power Supplies

 Telematics  Oscillators

 SAWs
 SPS

SEMICONDUCTOR
PRODUCTS
SECTOR

TRANSPORTATION CONSUMER WIRELESS NETWORK AND SEMICONDUCTOR

SYSTEMS SYSTEMS SUBSCRIBER COMPUTING COMPONENTS
GROUP GROUP SYSTEMS GROUP SYSTEMS GROUP GROUP

 Systems Electronics  Imaging  Telephony  Modems  Key Components

 Transportation  Displays & Modems  Messaging  Switching  Distribution
Technology  Storage  Wireless  Networking  Contract

 Industrial  Entertainment  New Media  Customer Equipment Manufacture

 Consumer Media  Base Stations  Emerging Markets

 PC Technology
Motorola Products

• Cellular Telephones
• Two Way Communications
• Pagers
• Semiconductors
• Automotive Electronic Modules and
Components
• Modems and Integrated Management Systems
• Cellular and Satellite Infrastructure Systems
 Global Facilities

UNITED KINGDOM GERMANY

Basingstoke, Stotfold, Swindon Flensburg, Munich
Easter Inch, East Kilbride Taunusstein, Dresden
Cork, Swords DENMARK
Copenhagen FRANCE
CANADA Angers, Bordeaux,
Brampton, Toulouse
North York
CHINA
Tianjin
JAPAN
Aizu Wakamatsu,
Tokyo, Sendai
Richmond
SOUTH KOREA
TAIWAN Seoul
Chung-Li
MEXICO HONG KONG
Guadalajara Kowloon
Mexico City
Chihuahua PHILIPPINES
COSTA RICA ISRAEL SINGAPORE Manila
Tel Aviv
Guadeloupe
Arad
MALAYSIA AUSTRALIA
BRAZIL INDIA Kuala Lumpur Melbourne
Sao Paulo Bangalore Penang, Seremban Adelaide
Quality Journey
 Changing Motorola's Quality Culture

1979 - National Sales Manager, Art Sundry, stood up

at an upper management meeting and declared: "our
customers say that our quality levels really stink".
This comment initiated a process at Motorola.

The environment
- A U.S. Centered Company
- Japan Inc. Attacking
- Quality Control Mindset
Changing Motorola's Quality Culture

1980 •Corporate Quality Officer named

Business Leadership
- Senior Business Leader
- Change in focus
Changing Motorola's Quality Culture

1981 • Motorola Training Center established

• 5 year 10X improvement goal
• Corporate Quality Council
- Senior Leaders
- Common culture
- Lead, Teach, Audit
 The Corporate Quality Office
Customers Suppliers

Business Units

Assess Education
Quality Reviews
• Short term results

QSR Motorola
Process CQO University

Quality Council • Courseware

- Lead
Recommendations on
- Teach vision and direction
• Lead
- Audit
• Teach Management Board
• Audit
April 1998
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)

 1981 • Began focus on Quality

1982 • MCQC began a process of biennial QSRs

Q 1986 • Six Sigma Quality and Total Customer Satisfaction introduced

S 1987 • Software subsystem was added

R 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 1990 • MCQC approved the use of cross-functional survey teams

I 1991 • Internal and supplier QSRs are combined into the current
QSR forms and the QSR Guidelines
S 1994 • Updated to include 1994 Revision of ISO 9001
• Significant revisions to Subsystem 9, System 7
T
1995 • Corporate Quality System Department formed
O 1996 • Revision 4 includes Registrar’s Certification, Subsystem 11
R and QS 9000 Supplement

1997 • Revision 5 - Business Process Focus, QS 9000 approach

Y • SEI Certification of SS 10
 Quality Subsystems
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

 Changing Motorola's Quality Culture

1985 • Communications Sector begins total

defect per unit measurement
July - Manufactured Products
November - Sales Orders

• Count Defects
• Independent variable

• Ownership
 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

• Promote excellence in business

1990 • TCS Team process starts Corporate wide

 Total Customer Satisfaction Teams
• In 1990, a total of 2,000 teams (1,200 in Communications Sector)
• averaged 8 to 10 members each.
• Individuals from different departments and levels

• The problem that they focus

lowering defects shorter lead time
product leadership profit improvement
participative management and cooperation.

• The TCS teams are free to use any tools, which is

a difference in relation to the Japanese QC circles.

Today: 6000 Teams - Customers & Suppliers

 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
 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
The Cost/Quality Relationship

Six Sigma has shown that the

Highest Quality Producer

is also the

Lowest Cost Producer

Results
 And the Results?

1997
5.6
Products Manufactured

~ 16 Billion

1986
4.2
 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
A decade of product quality and productivity
QUALITY
 Through Defect Elimination
• We have Eliminated > 99.7% of
In-Process Defects
 Through 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
• Increased 5 - 10 Fold
LESSONS
LEARNED
 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.
 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

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.

Questions ?