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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!