MAKING QUALITY A PRIORITY

MOTOROLA
INTRO INTO THE TQM WORLD

by Kateryna Avdieienko

Table of Contents
Introduction What is Total Quality Management Quality TQM principles
How to begin Continuous improvement

Companies who implemented continuous improvement

Motorola Company
Facing problems Solution to the problems Total Customer Satisfaction Five key initiatives to achieve total customer satisfaction

Table of Contents
Six-Sigma Quality Steps to be followed

Guru Bob Galvin The results

Introduction
In todays world due to insufficient quality or indifference to quality lead to disputes, which imposes serious drain on the financial resources of a company and limits profit potential. To be competitive in todays market, it is essential for construction companies to provide more consistent quality and value to their owners/customers. It is high time to develop better and more direct relationships with our owners/customers, to initiate more teamwork at the jobsite, and to produce better quality work.

What is Total Quality Management

Definition: TQM is a management philosophy, a paradigm, a continuous improvement approach to doing business through a new management model. TQM is a comprehensive management system which: Focuses on meeting owners/customers needs, by providing quality services at a reasonable cost. Focuses on continuous improvement. Recognizes role of everyone in the organization. Views organization as an internal system with a common aim. Focuses on the way tasks are accomplished. Emphasizes teamwork.

Quality TQM principles

People will produce quality goods and services when the meaning of quality is expressed daily in their relations. Inspection of the process is as important as inspection of the product. Probability of variation, can be understood by scientific methods. Workers work in the system to improve the system; managers work on the system to improve the system. Total quality management must be consistently translated into guidelines provided to the whole organization. Envision what you desire , but start working from where you actually are. Cleaner site and safer place to work is also important. Accept the responsibility for quality. Use the principle of get it right, the first time, every time. Understand that quality is a journey, not a destination.

How to begin Continuous improvement

Start setting goals, and start meeting the goals you have set.

Management indicate complete commitment to Continuous

Improvement (CI). Identify stages Establish responsibility

Set the datum

Pre-Plan Regard each project as part of a cycle Each worker regard himself or herself as a quality inspector of his or her task

Companies who implemented continuous improvement

Mechanical Contractor $30 TP 50m volume. A commercial and industrial mechanical contractor has started to implement TQM by forming Process Teams to study problem areas . Some of the areas they are attacking are, delays in the field, administrative problems etc. Although time was wasted on invoices due to errors from vendors, positive results were obtained in accounts payable and invoice. A General Contractor with a volume of $200 M/yr. This company implemented the TQM process by hiring a consultant to work with a key person in the company. The positive result obtained through TQM is that morale is much improved, helping the company to weather a declining market.

Companies who implemented continuous improvement

A large General Contractor - volume over $500M/yr. This contractor is using TQM to improve quality in daily work. The contractor has 80 teams trained and functioning, and a seven-step problem solving technique to solve problems. A large General Contractor with a volume of $700M/yr. A quality circle program

was initiated which resulted in creating a company environment that is conducive to

partnering. The key to the companys successful partnering process is the utilization of an outside facilitator (a professional psychologist). Partnering has enabled them to obtain significant new amounts of work.

Wal-Mart The expansion of Wal-Mart Stores has been successfully accomplished with

the application of the principles of TQM to their Design and Construction process.

Companies who implemented continuous improvement

Bechtel TQM was started in 1987 and has recently been reorganized into

CCI (an acronym for Commitment to Continuous Improvement). The

initiatives for their TQM process were obtained from their customers by using a simple questionnaire.

Motorola Motorola has a successfully working TQM process. Motorolas

fundamental objective is Total Customer Satisfaction. They have won the Baldrige award and are corporate leaders in TQM.

MOTOROLA
Motorola is an American, multinational, Fortune 100 telecommunications company based in Schaumburg, Illinois. It is a manufacturer of wireless telephone handsets, and also designs and sells wireless network infrastructure equipment such as cellular transmis base stations and signal amplifiers. The $26.7 billion company now has six cell phones, semiconductors, wireless networks, broadband communications, government and industrial systems, and smart electronics that integrate mobile networks with cars.

Facing problems
The company's severe troubles as the old Millennium ended demonstrate that, in the new age, TQM is not nearly enough. Once supposedly as swift as any top gun in Silicon Valley, Motorola was late and uncompetitive in digital phones. Its core mobile business was sabotaged - by itself. Motorola was folowing notoriously intractable bureaucracy and hidebound engineering culture. Motorola is famous for hanging on to technologies such as analog and satellite phones long after the market rejects them. The company has failed to customize cell phones for key carriers such as Sprint (FON ). Lack of understanding of the consumer side. The strategy for Motorolas entire profit machine was run by the company's CMO -- not the rest of the company's executives, who are as inept now as they have ever been.

Solution to the problems

Total Customer Satisfaction
Motorola and other innovators are on the cutting edge of customer satisfaction and service. Their approach to quality and "total customer satisfaction" is a lesson well worth learning. Robert W. Calvin, chairman of Motorola Inc. noted, "While this distinguished award recognizes us for our outstanding quality management system, we realize that there is more to do." Motorola's concept of total customer satisfaction is based on a clear strategy aimed at pleasing the customer, comparing themselves to their competition, then making whatever changes are necessary to be the best-in-class. They recognize that this is the only way to achieve improved customer relations and ensure economic strength and market position.

Total Customer Satisfaction

Five key initiatives to achieve total customer satisfaction

Product and manufacturing leadership;

Profit improvement;

Participative management within and cooperation between organizations;

Total cycle time reduction; Six-Sigma quality.

Six-Sigma Quality
The heart of Motorola's emphasis on total customer satisfaction and their push to be world competitive is their program referred to as Six Sigma. The philosophy behind their Six Sigma program was noted by Bill Wiggenhorn, vice-president and director of Motorola's training and education, who said it was, "to get the process right the first time -- but only do it if it is a value added step." Objectives of this program include reduced cycle times, increased quality of products and service and profitability. Specifically, Six Sigma means, "achieving a variation in performance such that defects will occur in products less than four times per million opportunities or that there is a 99.99960 percent chance that defects will not occur per opportunity."Motorola uses video tapes to explain the program to employees and make a concentrated effort to track and report the results of both manufacturing products and support services that achieve Six Sigma quality. They also plan follow-up programs to help personnel implement the concept. Goals for the program have included a 10-fold increase in quality by 1987 and a 100-fold increase in quality by 1991. In 1992 they hoped to achieve Six Sigma capability (e.g., zero defects on all important parameters).

Steps to be followed
Identify the customers for your product or service and determine what they consider important Identify what you need in order to satisfy the customer

Sit down with your suppliers and determine what you need to do for your work
Define the process for doing your work The design of the process

GURU BOB GALVIN

One of the first companies in the U.S. to grasp and utilize TQM was Motorola. In 1981 Bob Galvin, Motorola's chairman, called for an across-the-board improvement of 10:1 in five years. To accomplish this they needed a breakthrough technique. This breakthrough is detailed in the Six Sigma process:Faith that the improvement target could be achieved.Total customer satisfaction.Powerful new tools, especially design of experiments.Cycle-time reduction.Designing for ease of manufacturing.Manufacturing innovations.True partnerships with key suppliers.Training for all employees.Within five years Motorola had achieved their goal. In 1988 they were awarded the Malcolm Baldridge National Quality Award for their impressive Six Sigma process. Keki R. Bhote nurtured the Six Sigma project for eleven years at Motorola and then went on to consult with other companies.

THE RESULTS

One of the big customer satisfaction winners is Motorola, which recently won the United States' first nation-wide quality award. Motorola and others who are winning customer loyalty know that future success lies in not merely becoming efficient. Instead, successful organizations in the 1990s must be world-class competitors.Becoming a world-class competitor able to compete with the Japanese or anyone else means organizing operations around the customer. Instead of separate and disjointed efforts, everyone must focus on the customers' needs. There must be a clear customer service strategy. The strategy consists of first identifying how you can please the customer. Once the customer's needs are identified, then determine how your company stacks up against the competition. Find who offers the best-in-class customer service, then compare your business to them.Finally, it is necessary to never accept the current situation. Business should always be updating its method of measurement, making changes and improving production of goods or delivery of the service.Motorola provides a shining example of what can be done, and how to focus on total customer satisfaction. The centerpiece of their strategy for total customer satisfaction is their Six Sigma quality program.

THE RESULTS

They set impressive goals for themselves, then map out a way to meet those goals. It includes top management support that emphasizes and implements the customer service strategy.Their customer service strategy consists of having everyone in the organization focus on service and then apply a systematic approach. Their approach consists of having everyone within the organization first identify what product or service they are providing their customers, then identifying specifically who those customers are and deciding what is needed to do a better job of satisfying them. Once these parameters are isolated, it is a matter of defining, with flow charts and other means, the process for doing work. Once this process is identified, it is then feasible to try to make the process as mistake-proof as possible. In the final analysis, total customer satisfaction can only occur if business sets itself on the path of continuously trying to improve the service and products offered by getting to know their customer better.