Power Tools 1993 November

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Text File | 1993-03-03 | 22KB | 526 lines

NOTES TO ACCOMPANY THE SLIDE PRESENTATION MODULE "HEWLETT-PACKARD: THE QUALITY COMPANY" -- Purpose of Module -- To convince potential new customers, especially those coming from a mainframe environment like IBM, that Hewlett-Packard is: - A highly respected company with a longstanding reputation for high-quality products - Today's quality leader - Committed to remaining the quality leader through the decade of the 90s and beyond -- Organization -- Introductory slide (Slide 1) Past reputation (Slides 2 and 3) Overview Example Present reputation and the reasons for it (Slides 4 through 7) Overview Importance given customer input Quality-improvement processes Example of process Future quality (Slide 8) Summary (Why HP?) (Slide 9) -- Tips -- These notes include points to emphasize, background information, and tips for you, the presenter. The Quality slide presentation module was developed by Dorothy Coe, a member of the Workstation Marketing team, Chelmsford, Massachusetts, (508) 436-4917. ====================================================================== SLIDE 1 Hewlett-Packard: The Quality Company -- Message of Slide -- HP is a solid, established company and a longtime leader in quality. -- Points You Can Make -- * HP defines quality as whatever it takes to satisfy the customer. * From the beginning HP has been a highly respected company for 53 years, with a reputation for producing high-quality products. * To the present Independent consultants and industry press recognize HP as the quality leader of the computer industry. We consistently beat the competition in surveys done by outside consultants such as DataPro and Prognostics. - Example/Backup - Prognostics, a leading consultant to the computer industry, calls the loyalty of HP customers "world class". HP has the highest levels of loyalty in the industry, according to a 1992 poll of more than 200 HP customers. Top reasons given were reliability, high performance, excellent support, and a good reputation. * And into the future! HP is committed to surpassing its own quality standards in the years to come. -- Tips -- This slide is an introductory slide, meant to convey the main idea of the module. Its design previews the organization of the module. - Each of the three boxes in Slide 1 is repeated on the overview slides for the past, present, and future sections, as a unifying technique and a clue that a new section is beginning. - Each overview slide includes a relevant quote in the top lefthand corner of the slide. ====================================================================== SLIDE 2 Hewlett-Packard: Quality Driven for 5 Decades -- Message of Slide -- HP is widely recognized as one of the earliest and best high-tech companies, with a long history as a leading advocate for quality improvement. -- Points You Can Make -- * HP has always focused on quality, which is why we have a history of high customer satisfaction. - Example/Backup - "If I ever hear of anyone compromising quality in order to make shipments, I will personally have them fired." -- Dave Packard, Founder of HP, 1977 * In business for more than 50 years HP was one of the first successful high-tech companies in Silicon Valley, a section of California, U.S.A, that is a mecca for high-tech companies. And we are still one of the most respected companies in the Valley. - Example/Backup - The State of California recently named the original HP site "the birthplace of Silicon Valley" and officially declared it a historical landmark. * Over its 53-year history, HP has consistently received public recognition for the quality of its products. - Example/Backup - A recent Industry Week article about HP's longevity and success states that, since long before 1977, HP has been "accustomed to" winning "annual accolades for quality". "Hewlett-Packard Co. has always had a reputation of selling high-quality computers. . . ." -- Electronic Business, 10/90 "In the hotly contested computer and test instruments markets, HP has long been considered one of the best-managed and highest- quality producers." -- Manufacturing Systems, 6/91 * One of the first companies to adopt the concept of Total Quality Control Total Quality Control (often referred to as TQC), improves quality by encouraging breakthrough thinking and structured problem solving. Through our partner company in Japan (Yokogawa HP), we learned earlier than most U.S. companies about the concept of Total Quality Control, and were one of the first U.S. companies to adopt it, back in the late 70s. * 8X quality improvement means that the number of hardware defects was 8 times lower in 1990 than it was in 1980. In 1980, then President and CEO John Young initiated a "stretch goal" for the decade of the 80s: to reduce the number of hardware defects in all products, company-wide, by a factor of 10 in 10 years. Our employees accepted the challenge even though an improvement of that magnitude seemed impossible, given that HP already had some of the best products on the market. * HP has been a driving force in establishing quality control in the high-tech world. Our success in adopting quality processes and improving the quality of our hardware has been widely written up in the industry press. Other companies turn to HP to learn how to implement Total Quality Control and other quality processes. -- Tips -- This is the PAST overview slide. Slide 3 illustrates HP's success in reaching the 80s 10X goal. The script for Slide 6 explains the concept of Total Quality Control in detail. ====================================================================== SLIDE 3: "Factor of Ten" Hardware Improvement Results -- Message of Slide -- This slide illustrates the year-to-year progress HP made towards the "Factor of Ten" stretch goal it set for the 1980s. -- Points You Can Make -- * The "Factor of Ten" challenge was a company-wide effort. The idea was initiated by the CEO and endorsed wholeheartedly by the whole company. And every single employee took personal responsibility for achieving the goal. * Very strict measurements were established, such as annual failure rate and a baseline for 1980. Quality was tracked for more than a decade, using the same metrics. Products were tracked three ways: individually, by division, and for the overall company. * Implementing the goal wasn't always easy. There was even a time back in 1982 when defects began to rise again for awhile, after HP released a series of high-volume products. This explains the bump in the graphline. * At the end of 1990, hardware quality improvement for the company as a whole had reached 80% of goal (factor of 8). * The goal was reached by HP as a whole a year later, in 1991. Most divisions met the goal; some even surpassed it! ====================================================================== SLIDE 4: Hewlett-Packard: Today's Quality Leader -- Message of Slide -- HP is number # 1 in customer satisfaction today, because we take quality very seriously throughout the company. -- Points You Can Make -- * In December 1992 HP earned DataPro's most prestigious recognition, the Workstation Honor Roll award. We were given the award for receiving the highest overall satisfaction rating for a UNIX operating system (HP-UX), in DataPro's annual survey of UNIX users. * HP is rated # 1 in customer satisfaction, according to a poll conducted recently by UNIX Today. * HP knows that improving the quality of our processes improves the quality of our products, which in turn makes our customers AND our stockholders happy. - Example/Backup - "In order to compete in a global economy, our products, systems, and services must be of a higher quality than [those of] our competition." -- John Young, President and CEO, 1970-1992 -- Tips -- This slide is the PRESENT overview slide. The bulleted items on this slide are dealt with in detail in the scripts for Slides 5 through 7. ====================================================================== SLIDE 5: Quality Improvement Starts and Ends with Our Customers -- Message of Slide -- HP listens to customers and values their opinions highly. Our goal is to have customer feedback drive all quality improvement processes throughout the development loop. We actively gather information from our customers and funnel it back to the organizations responsible for product and process planning and development. -- Points You Can Make -- * Direct customer feedback ensures that customer issues get addressed in a timely manner. Each end-product division has an indiviualized system for gathering and using customer input. All of the systems include the company-wide Customer Feedback System. The Customer Feedback System helps HP acknowledge, collect, analyze, and resolve customer complaints, and use customer input to drive product and process improvement. Customers access the online Customer Feedback System and log complaints. A Customer Feedback Analyst identifies the organization that owns the process or product causing the complaint and sends the complaint to that organization. A Customer Feedback System rep in that organization channels the problem to the appropriate people and makes sure the problem gets fixed. - Example/Backup - Voice of the Customer This is the name of the customer feedback system that the Workstation Group uses to gather and utilize customer feedback. It includes: - The Customer Feedback System - Internal and external customer surveys - Telephone hotlines for customer feedback and customer support - Visits to customer sites and direct phone calls to customers * Marketing feedback through market surveys, focus groups, benchmarks * Internal feedback from the HP employees who deal with our customers and our potential customers and/or develop, manufacture, and use our products. * Once we have the feedback, we act quickly to address the issues: we: 1. IDENTIFY the root causes of the problems 2. DEVELOP and implement action plans to solve the problems 3. REVIEW our progress regularly 4. Seek out and SHARE best practices to improve internal processes 5. GET CUSTOMER FEEDBACK (this completes the loop) * Whatever our customers perceive as reality IS reality. - Example/Backup - The motto of the Customer Feedback System is that "Perception is everything; if the customer thinks it doesn't work, it doesn't work! As our quality manager for Worldwide Support puts it: "The customer's perception is always real. There is no difference between a perceived issue and a real issue." - Thom Edmonds (As quoted in Electronic Business, 10/91) ====================================================================== SLIDE 6: Quality Processes that Work -- Message of Slide -- Total Quality Control drives all other HP processes. Quality and the processes that improve quality are concretely defined, and quality is built into all of our products, processes, and services. -- Points You Can Make -- * The concept of Total Quality Control assumes that every business activity is a process you can measure quantitatively and improve continuously. Here is how Total Quality Control works at a basic level: 1. PLAN: Plan a change for improvement 2. DO: Carry the plan out on a small scale 3. CHECK: Study the results and learn from them 4. ACT: Adopt the change or abandon it 5. Storyboard to document improvement and to share best practices - Example/Backup - - Quality improvement is built into the whole manufacturing cycle: planning, design, manufacturing, marketing, sales, service - Example/Backup - HP's Workstation Manufacturing division in Exeter, New Hampshire (USA), has a Quality Engineering Department. Customers can arrange to tour the Exeter facility and see for themselves how quality is built into every process. - Every area of the company is included - Example/backup - "HP has taken the data-driven quest for customer service to encompass the entire company--not just each manufacturing division, but staff functions like public relations as well." -- Electronic Business, 10/91 - All levels of management are involved--CEO to secretarial support - Example/Backup - Quality training always involves top management. For example, Lew Platt, HP's new CEO, attended a Total Quality Share Fair at the Boise, Idaho site in May 1992. Share Fairs are employee-run festivities to facilitate the sharing of best practices. * Quality Functionality Deployment/House of Quality Quality Functionality Deployment is a customer-driven process for improving product definition and development. The House of Quality is a matrix-like document created by the Quality Functionality Deployment team to structure the information the team has been collecting, making it easier to analyze. * Customer Response Centers HP has response centers around the world, providing one-step telephone referral service to our customers. And every end-product site has a team of support engineers, whose only job is to fix customer problems. The two teams together provide prompt, courteous, professional service, and quick resolution of problems. * Quality Maturity System A system HP uses to rate its sites on planning, customer focus, process management, and continuous improvement in the areas of leadership and participation in Total Quality Control. * The Software Initiative/Software Quality and Productivity Analysis The Software Initiative is a team of HP engineers who research software technique throughout the industry and pass exciting innovations and ideas on to HP's software engineering teams, to help the teams improve their own processes. Software Quality and Productivity Analysis is a way of providing feedback to individual software development labs and to HP as a whole on HP's software development processes. We have presented this process to many external audiences, including AT&T's Bell Labs. It is considered one of the most advanced programs of its kind in the industry. * HP's extraordinary effort to produce the highest quality products possible has paid off. The proof is the positive press and customer feedback we get. - Example/Backup - In a recent survey of the most admired U.S. companies, conducted by Fortune magazine, HP was declared the # 1 computer company. "HP has a reputation for building the industry's most reliable systems. . . . HP's dominant position has been hard earned through attention to product detail and customer service." Source: Aberdeen Group, 2/92 In a recent survey by Reliability Ratings, the Model 710 scored first in most customer-satisfaction categories, and high in all categories. "Hewlett-Packard's 700 Series workstations surpassed all other vendors' products targeted in this study--including Sun's--in terms of overall satisfaction. . . ." Source: DataPro, 8/92 ====================================================================== SLIDE 7: A Systems Approach to Workstation Testing -- Message of Slide -- This slide is an example of how quality improvement is built into the development cycle. The slide shows the processes involved in testing workstations at the Chelmsford, MA Workstation Division and its sister division, Exeter Manufacturing, in Exeter, New Hampshire. -- Points You Can Make -- * HP defines a workstation system as the total of these components: Hardware, including accessories Software, including the operating system Third-party hardware and software Peripherals (disk drives, printers, etc.) Network Documentation (manuals/instructions sent out with the system) Packaging (the material the system is shipped in) Ordering, quoting, invoicing Delivery Service, support, training System administration tools (backup, diagnostics, etc.) Installation * Chelmsford's workstation qualification process ensures successful interaction between system components and overall system performance by qualifying each product in the following areas: - Environment: design margins, thermal profile, safety, power, temperature, humidity, vibration, shock, altitude, packaging, electromagnetism - Regulatory: tests HP-determined limits for electrostatic discharge, radiation, conducted intereference, acuoustics, product safety, ergonomics - Reliability: stress testing, margin testing, defect tracking The quality of each system is measured, recorded, and compared with that of previous systems in the same class. Measurements are used to qualify the system and to track quality improvement. Technical measurements used are: - Mean time between failures, in hours (MTBF) - Annualized MTBF failure rate (AFR = % of failures per year) - Mean time to repair (MTTR) * Exeter's Online Quality Reporting and Archive Network analyzes feedback from service centers and customers, records lessons learned and problems remaining, and passes the information on to the material, production, product engineering, and R&D teams. New Total Quality Control goals are set and changes are implemented. ====================================================================== SLIDE 8: HP: Continuing to Improve in the 90s -- Message of Slide -- HP has specific plans in place to ensure continued quality improvement over the decade of the 90s and beyond. -- Points You Can Make -- * Customer satisfaction is # 1 priority on the 1993 HP business plan. - Example/Backup - HP intends to have 100% Quality Maturity System coverage for of all workgroups by the end of 1993. * The company-wide overall quality stretch goal for the ten-year period 1991 - 2000 is to make our products 4 times as good in 2000 as they were in 1990. All aspects of quality improvement are being measured quantitatively, using the same metrics, throughout the decade. - Example/Backup - - The goals for workstation quality improvement include ordering, delivery, software reliability, and software support, as well as hardware defect elimination. - One of Lew Platt's key goals for 1993 is to establish plans and objectives for achieving a 10X improvement in the order fulfillment process. * HP's company-wide software quality stretch goal is to make our software 10 times as good as it was in 1990--by 1995! - Example/Backup - - New releases of the HP-UX operating system must have no serious or critical defects - HP launched the Software Initiative in 1991 to address software development issues and improve software quality * HP's workstation hardware improvement objective for the ten years between 1991 and the year 2000 is to improve overall reliability by a factor of 15 from the baseline set in 1990. - Example/Backup - So far, HP is right on target: it improved its hardware quality by a factor of 3 between the start of 1991 and November 1992. - The Exeter workstation manufacturing site has achieved ISO 9000 Certification. ISO 9000 is the industry standard for production and installation. To achieve certification, a supplier must manufacture, inspect, and test products that satisfy the ISO standards board requirements for excellence. The ISO 9000 standard provides customers with proof of a company's commitment to quality. Certification must be reaffirmed annually, and Exeter fully intends to keep theirs! ====================================================================== SLIDE 9: HP: When We Talk Quality, We Mean It! -- Message of Slide -- In summary, quality is a strong differentiator for Hewlett-Packard. -- Points You Can Make -- * Hewlett-Packard sets the standard for hardware and software quality and reliability in the computer industry. * We have a quality CULTURE at HP. Total quality control is the way we do business. As John Young recently said: "TQC is not just another thing to do! It's the way we do things!" - Customer satisfaction is the top priority - Continuing improvement of product quality; each new product is better than the last - Quality all the way, from product design to product support - Rigorous quality processes and checks throughout the company - Personal responsibility for quality, not just on the part of the CEO, but on the part of every one of HP's 89,000 employees * HP's new CEO, Lew Platt, intends to make sure quality continues to be a strong differentiator. (see quote on slide, and note date) * Why HP? We're the quality company!