©1986, 2000 Arthur M. Schneiderman All Rights Reserved. Slide 1 QIP Strategic Plan Proposal c....

©1986, 2000 Arthur M. Schneiderman All Rights Reserved.

Slide 1

QIP Strategic Plan Proposal c. October, 1986

Arthur M. Schneiderman

Title


Slide 2 c. 10/28/86-QIP-1rev. 10/30/86

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


Slide 3 10/10/86-QIP-2rev. 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 1985.."

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


Slide 4 c. 10/13/86-QIP-3

yearsSource: IMPRO 86, 10/9-10/86

PP

M

76543210

10,000

1000

100

10

customer measured defect levels

Hiji Plant, JapanTEXAS INSTRUMENTS

50 % improvement each:

10.3 months

de

fect

leve

ls

WSJ, 10/3/86


Slide 5 c. 10/26/86-QIP-4

PHASE:

QIP YEAR:

ACTIVITIES/

ORGANIZATION:

OUTPUTS:

STARTUP ROLLOUT INSTITUTIONALIZE

initi

al Q

IP s

tatu

s su

rve

y

div

isio

na

l QIP

Co

un

cils

corp

. Q

ua

lity

Ste

erin

g C

om

.

QS

C d

eve

lop

s

go

als

qu

alit

y m

an

ifest

op

olic

y d

ep

loym

en

tst

ruct

ure

s

QS

C f

ocu

s o

n:

pe

riod

ic q

ua

lity

au

dits

inte

rna

l/ext

ern

al P

R

1 2 3 4 5 6

QIP partof eachorganization'sculture

3-5 pilot projects all div's involvedin QIP activities

success stories

interest in QIPdemand forQIP training

GUIDINGTRAININGMONITORINGREWARDING

heroes

ADI QIP PLAN


Slide 6 c. 10/28/86-QIP-5

MA

NA

GE

ME

NT

TOO

LS

autonomous div's

shared resources

flexibility

customer focusexternalinternal

organizational developmentparticipative mgmt.

innovation environment

information systems

personal growth

RESULTS

inno

vativ

epr

oduc

tpr

oces

s

mfg

. exc

elle

nce

qual

itypr

oduc

tivity

cycl

e tim

e

cust

omer

driv

ense

rvic

esu

ppor

tre

spon

sive

ness

coop

erat

iven

ess

Q PI

PROPOSED ADI QIP MODEL


Slide 7 c. 10/28/86-QIP-6

1987 QIP STATUS SURVEYOBJECTIVE:

to determine the current state of eachdivision/corporate's QIP activities

DIMENSIONS:

is there a QIP Council?membershipchartermeeting frequency

prospectives on QIP

Organization:

commitmentsense of urgency

are there QIP training programs?are there trained facilitators?

Projectshow many?how selectedwho participatedhow longuse of SQC or other tools?

Resultsquantitative measures of improvement(improvement curves)

ADI QIP STATUS REPORT

success stories challenges


Slide 8 c. 10/28/86-QIP-7

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

quality/reliability

lead time

responsiveness

cooperativeness

price

delivery

support

willingness to form partnership


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


Slide 10 c. 10/27/86-QIP-9

DATA

INFORMATION

KNOWLEDGE

ACTION

THE KNOWLEDGE PYRAMID


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 ofnew products

Taiichi Ohno, Toyota

(MUDA)

The Nine Wastes The 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


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 systemscustomer 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


Slide 13 Additional slides

Additional Slides Used

c. late 1986/early 1987


Slide 14 12/12/85- ZD3/QIP-12

KAIZEN INNOVATIONFOCUS

design, productionand marketing

science andtechnology

TARGETING

broad:quality, costsafety, efficiencyproduct development

narrow:featuretechnique

EXPERTISEconventional

know-howleading edge,break through

CAPITALNEEDS

very modestmajor

PROGRESSsmall steps big jumps

RESULTScontinuous spontaneous

VISABILITYnot dramatic very dramatic

INVOLVEMENTeveryone selected few

COOPERATIONgroup activityindividual

RECOGNITION resultseffort, process

EVOLUTION REVOLUTION

effort

vs.

investment


Slide 15 Deming Prize info

1985 Checklist for the DemingApplication Prize


Slide 16 12/16/85-ADI-2

REQUIREMENTS FOR QUALITY IMPROVEMENT

Top Management

CommitmentSense of Urgency

Systematic

Method

Pilot ProjectsCompany Wide

Involvement

Organization/

Systems

leadership

changed objectives

hands-on management

visibility

support

profit opportunity

competition

fuel for change

proven results

kaizen

data driven

cross-functional

overcome skepticism

build credibility

get ball rolling

develop champions

weakest link

internal customers

policy deploymentvendors/customers

trainingguiding

:monitoringrewarding

:


Slide 17

Phase 1: 1985-1986

Tops-down Priorities

innovation process new product cycle time

standard cells/sub-cells

CAD

customer service causal/effect metrics

manufacturing process manufacturing cycle time

outgoing PPM

organization development

process

TBD

MIS process TBD

QIP Philosophy tops-down/bottoms-up

Staffing AMS

QIP Organization divisional focus

Training/Awareness management team

JQI (?)

c. 1986-QIP Status


Slide 18

month

% o

n tim

e de

liver

y

100

90

80

70

60

50

40

30

20

10

0

Customer Service Performance

ANALOG DEVICES

ADS MED ADBV IPD CLD

Corporate Key

Key

Non-Key

Key Affiliates

1 6 12 1 6 12 1 6 12 1 6 12 1 6 12

8/7/86-ADI-15/150


Slide 19

causes of controllable latenessimp

rove

men

t ra

te (

half-

life

)

we

eks

of Q

IP a

ctiv

ity

% of controllable lateness

cause 10cause 9

cause 8cause 7

cause 6cause 5

cause 4cause 3

cause 2cause 1

100

80

60

40

20

0

PARETO ANALYSIS

weeks

% late

523926130

100

10

ADS

ADI CONTROLLABLE LATENESS PERFORMANCE

1

total

Wilm.Nor.

GOAL

10/17/86-ADI-18rev 10/28/86


Slide 20 c. 1986-Phase II Objectives

QIP OBJECTIVESPhase II

1987

•Deploy goals setting & implementation

•Establish divisional QIP councils

—quarterly reviews

•Identify divisional QIP priorities

—metrics

•Train all division staffs (JQI?)

—other levels

•Full time QIP facilitators

•Maintain visibility of Top Management commitment to QIP

—integrate into performance evaluation


Slide 21 c. 1986-Example of written reports

TITLE

Daily Shipments Tracking ReportDaily Delivery Statistics & Detail

CB/FlashWeekly Fact. Pert ReportEval UpdateEst Net Sales AnalysisWeekly Sales/Bkg StatFab infoLOG NP Crit Path StatIQC Weekly ReportOQC Weekly ReportDue & Overdues Thru wk____NP StatusWeekly Insp Report, ADKKCorp Strategic SummaryMask ShopLayoutNP Fab StatusWeekly Delivery ReportWafer Fab Slice Stats

IBM SQP Summary ReportAllocated Products(New Product) Turn TimeMonthly Models Report

Quarterly Fin ReportRep on Inq. Rec’d or Prospects ProducedTrim/Probe Report

Lots on Hold at CoordJan Qual Update

FREQUENCY

DailyDaily

WeeklyWeeklyWeeklyWeeklyWeeklyWeeklyWeeklyWeeklyWeeklyWeeklyWeeklyWeeklyWeeklyWeeklyWeeklyWeeklyWeeklyWeekly

MonthlyMonthlyMonthlyMonthly

QuarterlyQuarterlyQuarterly

??

SOURCE

P.C.P.C.

A.D.P.C.Rel.P.C.P.C.

LOG Mktg.LOG Mktg.

Q.C.Q.C.P.C.

Fab P.C.ADKK/Q.C.

Corp Sales AdminMask Fab

LayoutFab P.C.

P.C.Fab P.C.

Q.C.Customer Service

LOG Mktg.Sales/Data Processing

FinanceCorp Comm (73 pgs!)

LOG PTDE

Q.C. CoordQ.A.


Slide 22 Juran: Resp. of Qual. Council

Juran Institute, Inc.Organization For Annual Improvement:

Responsibilities of Quality Council

©1986, 2000 Arthur M. Schneiderman All Rights Reserved. Slide 1 QIP Strategic Plan Proposal c....

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