1
Achieving
Competitive
Excellence
The ACTS Operating System
Quality Manager: Willis Huang
2
Non - Visible5-8 % of Sales
Visible2-3 % of Sales
Hidden?
The Cost of Poor Quality Iceberg
• Engineering Changes• Recurring Service Bulletins• Recurring Engineering Notices• Extra Set-ups• Long Cycle Times• Non-Contractual Warranty• Expediting Costs• Late Delivery Charges• Excess Inventory• Supplier Quality
Lost CredibilityLost Sales
Warranty, Scrap,Escapes, Rework,Repair, Extra Inspection
Lost Customer Loyalty
ACE Fosters a Quality Mindset
3
Achieving Competitive Excellence to:provide products and services that are 100% defect-free.
do work that adds value to the company.
partner with customers and execute flawlessly, so they are delighted andkeep coming back.
be a great place to work!
Financial Performance
Quality Processes & Products
Employee Fulfillment
Customer Focus
ACE is the UTC operating system well adopted in ACTS
4
What is an operating system?
… defines our daily management system… has three elements
culture ( “humanware” )set of tools ( hardware )competency
Achieving Competitive Excellence has,a Culture;a set of Tools; andthe Competency to implement the culture and the tools in everything that we do.
5
Customer
ACE - Culture
Identify gaps & execute
RRCA
Define Metrics
Establish vision,
Strategy & goals
• Powered by the disciplined application of ACE tools for
Process improvement and waste elimination
Problem solving
Decision making
• Powered by the disciplined application of ACE tools for
Process improvement and waste elimination
Problem solving
Decision making
Monitor Progress
Customers define our Quality
Drives relentlessly to close gaps between actual results and goals.
6
With ACE Culture we can…
Identifying opportunities to improve
Solving problems
Sustaining continuous improvement
7
ACE – The Hardware
Process Improvement and Waste EliminationNew 5S (visual workplace) + Safety (6S)Value Stream Management Process Control & CertificationStandard WorkProduction Preparation Process (3P)Total Productive MaintenanceSet-up Reduction
Problem Solving (DIVE process)Market Feedback AnalysisQCPC (Quality Clinic Process Charts)Relentless Root Cause AnalysisMistake Proofing
Decision MakingPassport Process
The 12 ACE tools
8
The Quality Model
9
Description of 6S (UTC’s New 5S)
6S1. Safety
Prevent / control hazards
2. SortEliminate what is not needed
3. StraightenOrganize what remains
4. ShineClean work area
5. StandardizeSchedule cleaning and maintaining
6. SustainMake 6S a way of life
Creating workplace efficiency
Improving morale
10
Drawer UnitAttached To
Machine
Items RequiredFor NormalOperation
6S Establishes the Foundation forWorkplace Organization
Point-of-useTooling
11
A roadmap to quality products and processes
Definition of Quality Clinic Process Charts(QCPC)
QCPC encompasses a simple tool used to
continuously analyze a process for quality
improvement opportunities and process
inefficiencies, called “turnbacks”.
12
What Are QCPC Turnbacks?
Any situation that hinders the flow of work. Turnbacks include any inefficiency in the process.
For example:Priority and plan changes
Re-design / Re-work / Re-do
Miscommunication
Incorrect data and information
Equipment and computer problems
Software discrepancies
Reporting turnbacks gives all employeesa voicein process improvement
13
Determine yourgreatest opportunity
Map process andidentify turnback points
Apply an ACEProblem Solving Strategy
to investigate andeliminate root cause
PPDP(Detail Level Map)
PMT / IPT
Engineering
ConfigurationManagement
Producer
Assy & Test
Quality
Collect and summarizeturnback data at
established intervals
How QCPC Works
Total
Step 1 Step 2 Step 3 Step 4 Step 5 Step 6
Week 1
Week 2
Week 3
14
Definition of Relentless Root Cause Analysis (RRCA)
The rapid and persistent pursuit of the
fundamental breakdown or failure of the
process that, when resolved, prevents a
recurrence of the problem.
15
How RRCA Works
Utilizes a variety of strategies and tools to:
Define the problem,
Investigate probable root causes,
Verify what is the actual cause, and
Ensure a mistake-proof solution.
16
Definition of Mistake Proofing
Using wisdom and ingenuity to
provide methods and devices that
allow you to do your job 100%
defect-free, 100% of the time.
17
Criteria for Effective Mistake Proofing
Minimal cost
Simple to use
Easy to install
Durable
Easy to maintain
Does not hinder operator / user
Foolproof
18
ACE - Competency
Competency is built through
Education
- Ito University
- ACE training
- Operations Transformation Leader curriculum
- High-impact ACE teams
- Doing: experience in many improvement activities
Sharing of best practices - Benchmark
19
Levels of ACE Competency
Improved Performance
Step-change in Business Performance
Baseline• Customer expectations quantified• Performance baselines and gaps identified• Savings demonstrated from waste eliminations
• Measurable improvements in key customer deliverables achieved• Business results positively impacted • Significant business performance improvement targets set for Silver
• Business performance targets for Silver sustained• Stretch business performance goals set for Gold
Delighted Stakeholders• Best-in-class customer
satisfaction and businessperformance
ACE Silver
ACE Gold
ACE Bronze
ACE Qualifying
20
ACTS Performance Trend
Performance
0
5
10
15
20
25
2003 2004 2005 2006 2007 2008 PlanYear
02004006008001000120014001600
SalesEscape PPM
21
Summary
ACE is a continuing journey
The ACE Elements are the foundation
ACE provides powerful strategies and tools to improve business results
ACE uses achievement levels to recognize quality improvements and business results
ACE can involve and empower every employee
22
Thank You!
Quality Manager: Willis Huang