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QIP Strategic Plan Proposal c. October, 1986 Arthur M. Schneiderman. Title. ADI QIP LONG RANGE PLAN. 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).

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

  2. ADI QIP LONG RANGE PLAN 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: clarify our current QIP status reaffirm to the entire organization the "why and what" of QIP convincingly demonstrate top management's ongoing commitment to 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 ©1986, 2000 Arthur M. Schneiderman All Rights Reserved. c. 10/28/86-QIP-1rev. 10/30/86

  3. TEXAS INSTRUMENTS, HIJI, JAPAN 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: 45% linear products TTL products 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 ©1986, 2000 Arthur M. Schneiderman All Rights Reserved. 10/10/86-QIP-2rev. 10/26/86

  4. TEXAS INSTRUMENTS Hiji Plant, Japan customer measured defect levels 10,000 50 % improvement each: 10.3 months 1000 defect levels PPM 100 WSJ, 10/3/86 10 0 1 2 3 4 5 6 7 years Source: IMPRO 86, 10/9-10/86 ©1986, 2000 Arthur M. Schneiderman All Rights Reserved. c. 10/13/86-QIP-3

  5. QIP part of each organization's periodic quality audits corp. Quality Steering Com. internal/external PR policy deployment quality manifesto initial QIP status survey divisional QIP Councils culture structures QSC focus on: QSC develops goals ADI QIP PLAN STARTUP ROLLOUT INSTITUTIONALIZE PHASE: QIP YEAR: 1 2 3 4 5 6 ACTIVITIES/ ORGANIZATION: 3-5 pilot projects all div's involved GUIDING in QIP activities TRAINING success stories OUTPUTS: MONITORING demand for heroes interest in QIP QIP training REWARDING ©1986, 2000 Arthur M. Schneiderman All Rights Reserved. c. 10/26/86-QIP-4

  6. cooperativeness responsiveness productivity customer driven mfg. excellence cycle time support process service product quality innovative PROPOSED ADI QIP MODEL RESULTS information systems I Q P organizational development participative mgmt. innovation environment MANAGEMENT TOOLS personal growth customer focus external internal flexibility shared resources autonomous div's ©1986, 2000 Arthur M. Schneiderman All Rights Reserved. c. 10/28/86-QIP-5

  7. 1987 QIP STATUS SURVEY OBJECTIVE: to determine the current state of each division/corporate's QIP activities DIMENSIONS: Organization: is there a QIP Council? membership charter meeting frequency prospectives on QIP 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 stories challenges ©1986, 2000 Arthur M. Schneiderman All Rights Reserved. c. 10/28/86-QIP-6

  8. 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 willingness to form partnership ©1986, 2000 Arthur M. Schneiderman All Rights Reserved. c. 10/28/86-QIP-7

  9. 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 Other Areas < 10 PPM defect levels timely financial reporting >99.8% on time delivery reduced turnover <3 weeks lead time effective meetings <3 weeks mfg. cycle time actionable information <20 weeks design cycle perfect safety records 25X reduction in active WIP 250X reduction in changeover times ©1986, 2000 Arthur M. Schneiderman All Rights Reserved. c. 10/27/86-QIP-8

  10. THE KNOWLEDGE PYRAMID ACTION KNOWLEDGE INFORMATION DATA ©1986, 2000 Arthur M. Schneiderman All Rights Reserved. c. 10/27/86-QIP-9

  11. FORMS OF WASTE (MUDA) Ryuzaburo Kaku, Canon Taiichi Ohno, Toyota The Nine Wastes The Seven Wastes waste in processing itself waste in rejects waste of time waste in parts inventory waste of making defective parts waste in indirect labor waste of motion waste in equipment and facilities waste of overproduction waste in expenses waste of inventory waste in design waste of transportation waste in human resources waste in operations waste in production startup of new products ©1986, 2000 Arthur M. Schneiderman All Rights Reserved. c. 10/28/86-QIP-10

  12. TOP MANAGEMENT'S 1987 GOALS Guide: quality manifesto overall goals (quantitative and measurable) steering committee charter incentives implications Get Trained: Juran on Quality Improvement (on-going) 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 ©1986, 2000 Arthur M. Schneiderman All Rights Reserved. c. 10/27/86-QIP-11

  13. Additional Slides Used c. late 1986/early 1987 ©1986, 2000 Arthur M. Schneiderman All Rights Reserved. Additional slides

  14. INNOVATION KAIZEN vs. design, production science and FOCUS and marketing technology narrow: broad: quality, cost feature TARGETING safety, efficiency technique product development conventional leading edge, EXPERTISE break through know-how major CAPITAL very modest investment NEEDS small steps PROGRESS big jumps spontaneous continuous RESULTS very dramatic not dramatic VISABILITY INVOLVEMENT selected few everyone individual COOPERATION group activity effort RECOGNITION effort, process results EVOLUTION REVOLUTION ©1986, 2000 Arthur M. Schneiderman All Rights Reserved. 12/12/85- ZD3/QIP-12

  15. 1985 Checklist for the Deming Application Prize ©1986, 2000 Arthur M. Schneiderman All Rights Reserved. Deming Prize info

  16. REQUIREMENTS FOR QUALITY IMPROVEMENT Systematic Top Management Sense of Urgency Method Commitment proven results leadership profit opportunity kaizen changed objectives competition data driven hands-on management fuel for change cross-functional visibility support Company Wide Organization/ Pilot Projects Involvement Systems overcome skepticism weakest link training build credibility internal customers guiding get ball rolling policy deployment : vendors/customers develop champions monitoring rewarding : ©1986, 2000 Arthur M. Schneiderman All Rights Reserved. 12/16/85-ADI-2

  17. QIP STATUS ©1986, 2000 Arthur M. Schneiderman All Rights Reserved. c. 1986-QIP Status

  18. ANALOG DEVICES Customer Service Performance ADS MED ADBV IPD CLD 100 90 80 70 60 % on time delivery 50 40 Corporate Key 30 Key 20 Non-Key 10 Key Affiliates 0 1 6 12 1 6 12 1 6 12 1 6 12 1 6 12 month ©1986, 2000 Arthur M. Schneiderman All Rights Reserved. 8/7/86-ADI-15/150

  19. ADI CONTROLLABLE LATENESS PERFORMANCE ADS % late 100 GOAL 10 total Nor. Wilm. 1 0 13 26 39 52 weeks PARETO ANALYSIS % of controllable lateness 100 80 60 40 20 0 improvement rate (half-life) weeks of QIP activity cause 1 cause 2 cause 3 cause 4 cause 5 cause 6 cause 7 cause 8 cause 9 cause 10 causes of controllable lateness ©1986, 2000 Arthur M. Schneiderman All Rights Reserved. 10/17/86-ADI-18rev 10/28/86

  20. QIP OBJECTIVES Phase 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 ©1986, 2000 Arthur M. Schneiderman All Rights Reserved. c. 1986-Phase II Objectives

  21. ©1986, 2000 Arthur M. Schneiderman All Rights Reserved. c. 1986-Example of written reports

  22. Juran Institute, Inc. Organization For Annual Improvement: Responsibilities of Quality Council ©1986, 2000 Arthur M. Schneiderman All Rights Reserved. Juran: Resp. of Qual. Council

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