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A Siemens Enterprise Communications Company “There is nothing more important than our customers” October 26, 2011 Closed Loop Quality Management for Competitive Advantage Brad W. Martin - Vice President, Engineering Operations & Quality

Closed Loop Quality Management for Competitive Advantage - Quality... · Closed Loop Quality Management ... APQP at Enterasys What is APQP? Advanced Product Quality Planning (APQP)

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Page 1: Closed Loop Quality Management for Competitive Advantage - Quality... · Closed Loop Quality Management ... APQP at Enterasys What is APQP? Advanced Product Quality Planning (APQP)

A Siemens Enterprise Communications Company

“There is nothing more important than our customers”

October 26, 2011

Closed Loop Quality Management for Competitive Advantage

Brad W. Martin - Vice President, Engineering Operations & Quality

Page 2: Closed Loop Quality Management for Competitive Advantage - Quality... · Closed Loop Quality Management ... APQP at Enterasys What is APQP? Advanced Product Quality Planning (APQP)

2

Agenda

Enterasys Overview

Challenge - Implement a closed loop quality mgmt. system

Process – Continuous improvement methodology

Solution - Integrating APQP, PQIT and metrics

Results – Product quality results

Lessons learned

Page 3: Closed Loop Quality Management for Competitive Advantage - Quality... · Closed Loop Quality Management ... APQP at Enterasys What is APQP? Advanced Product Quality Planning (APQP)

©2011 Enterasys Networks, Inc., A Siemens Enterprise Communications Company – All rights reserved.

Global Provider of Networking Solutions Enterasys. 28 Year Heritage of Products & Services Excellence

1983-1999

Multi-layer switching pioneer

Industry’s 1st switching embedded security

Open standards principal contributor

Significant technology patent portfolio

3

Enterprise Communications 2008-Present

Premier provider of enterprise communications solutions

(applications, networking, services, and voice)

$3 Billion (US) revenue and profitable

10,000 employees servicing more than 90% of

Fortune 100 and 75% of Fortune 500 customers

in 90 countries

#3 Global VoIP & #1 managed

services revenues

1999-Present

Wired & wireless enterprise networking

infrastructure and security solutions provider

1,000 employees servicing 5,000 enterprise

customers in 70 countries

Secure NetworksTM pioneer of automation,

visibility and control

Industry-best customer support

Page 4: Closed Loop Quality Management for Competitive Advantage - Quality... · Closed Loop Quality Management ... APQP at Enterasys What is APQP? Advanced Product Quality Planning (APQP)

©2011 Enterasys Networks, Inc., A Siemens Enterprise Communications Company – All rights reserved. 4

Enterasys Networks: Who are we?

Unique

Enablers

Seamless LAN/WLAN integrated

architecture

Virtualized modular

infrastructure for scale

and performance

Applications Assured Delivery

Voice

Video

Convergence

Predictive management and

security

SLA Auditing

Policy enforcement

Simplicity at all levels

Our Business Delivering secure application services over Business Critical Networks

Our Advantage The Best User/ IT Experience for Enterprises: Wired and wireless

Our Business

Value

Reliable Networks for Application Delivery

Significantly Reduced Network Complexity

Consistent Service Level Assurance

Reduced Cost of Ownership and very fast ROI

Page 5: Closed Loop Quality Management for Competitive Advantage - Quality... · Closed Loop Quality Management ... APQP at Enterasys What is APQP? Advanced Product Quality Planning (APQP)

©2011 Enterasys Networks, Inc., A Siemens Enterprise Communications Company – All rights reserved. 5

Fixed

switching &

routing

distribution &

access

solutions

Network

management

providing

automation

visibility and

control

applications

Advanced

security

applications;

network access

control,

intrusion

prevention

systems

FIXED MANAGEMENT SECURITY

Modular

switching &

routing data

center and

cloud

computing

solutions

MODULAR

Wireless

controllers,

access

points, and

unified wired

& wireless

management

solutions

WIRELESS

Award Winning Services & Support

A Complete Solutions Portfolio Open, Secure, Mobile & Convergence-Enabled

Page 6: Closed Loop Quality Management for Competitive Advantage - Quality... · Closed Loop Quality Management ... APQP at Enterasys What is APQP? Advanced Product Quality Planning (APQP)

©2011 Enterasys Networks, Inc., A Siemens Enterprise Communications Company – All rights reserved.

To be the best network infrastructure and security solutions company

Our “North Star”:

Page 7: Closed Loop Quality Management for Competitive Advantage - Quality... · Closed Loop Quality Management ... APQP at Enterasys What is APQP? Advanced Product Quality Planning (APQP)

©2011 Enterasys Networks, Inc., A Siemens Enterprise Communications Company – All rights reserved. 7

Challenge

To align the business around our quality performance

to consistently drive processes and behaviors to

positively affect the product quality and cost

To implement a closed loop quality data management

system that can provide real time quality metrics for

our vendors, processes and products

Need: To implement a Continuous Improvement frame work

Need: To implement a closed loop quality data system

Need: To affect the product lifecycle management process

to drive higher levels of quality and cost reduction

Page 8: Closed Loop Quality Management for Competitive Advantage - Quality... · Closed Loop Quality Management ... APQP at Enterasys What is APQP? Advanced Product Quality Planning (APQP)

©2011 Enterasys Networks, Inc., A Siemens Enterprise Communications Company – All rights reserved. 8

Quality Data Drivers

Need for Quality Data

Management to influence

on PLM Decisions

Warranty Planning

Lifecycle definition

Manufacturing Technology

Planning

Vendor Selection, EMS and

Component Level

MTBF Goals

Design Verification and Test

Practices

End of Life Decision Points

Repair Policy

Quality as a competitive differentiator

(customer focused and data driven)

Page 9: Closed Loop Quality Management for Competitive Advantage - Quality... · Closed Loop Quality Management ... APQP at Enterasys What is APQP? Advanced Product Quality Planning (APQP)

©2011 Enterasys Networks, Inc., A Siemens Enterprise Communications Company – All rights reserved.

http://gqsllc.com

Continuous Improvement Methodology

Four distinct phases intended to achieve the desired result

with the least energy ($$) consumed

Efficient Problem Solving

A clear understanding of the problem and how the overall

system works is necessary before jumping to the solution

Communicate often…reduce wasted energy from redirection

and project restarts

Smaller, faster improvement steps are typically valued vs.

trying to find the perfect solution

Typical project is 3-4months; several weeks in each phase

Desired Result

Distance Vector Force

Page 10: Closed Loop Quality Management for Competitive Advantage - Quality... · Closed Loop Quality Management ... APQP at Enterasys What is APQP? Advanced Product Quality Planning (APQP)

©2011 Enterasys Networks, Inc., A Siemens Enterprise Communications Company – All rights reserved. 10

Communicating the Results…..

Need to ensure all

stakeholders are

aware of project status

Results Focused

Capture Project

Lessons Learned

Physical and virtual

Storyboards will

continue to be used

(see examples on

following slides)

Page 11: Closed Loop Quality Management for Competitive Advantage - Quality... · Closed Loop Quality Management ... APQP at Enterasys What is APQP? Advanced Product Quality Planning (APQP)

©2011 Enterasys Networks, Inc., A Siemens Enterprise Communications Company – All rights reserved. 11

Communicating the Results…..

Page 12: Closed Loop Quality Management for Competitive Advantage - Quality... · Closed Loop Quality Management ... APQP at Enterasys What is APQP? Advanced Product Quality Planning (APQP)

©2011 Enterasys Networks, Inc., A Siemens Enterprise Communications Company – All rights reserved. 12

Business Drivers for Quality Data Automation

Critical Market dynamics

Rapid development cycles to keep up with market technology changes

Extended Lifecycles

Lifetime warranty

Distributed Global Supply Chain

Higher quality expectations from customers

Resources allocated to data collection/reporting

Data standardization

Use of templates to collect repair and manufacturing data

Data Translator developed in house to streamline multisource data

feeds for SigmaSure upload

Page 13: Closed Loop Quality Management for Competitive Advantage - Quality... · Closed Loop Quality Management ... APQP at Enterasys What is APQP? Advanced Product Quality Planning (APQP)

©2011 Enterasys Networks, Inc., A Siemens Enterprise Communications Company – All rights reserved. 13

Camstar SigmaSure – What is it?

On-demand Supply

Chain Quality tool

Camstar SigmaSure

requires no hardware or

software installation. It

can be up and running

with suppliers, contract

manufacturers or return

centers in weeks

SigmaSure™ enables

you to collaborate with

your globally dispersed

sites, component

suppliers and contract

manufacturers to

proactively ensure that

products they produce

meet specifications

SigmaSure delivers early visibility and real-time

manufacturing process intelligence, driving supplier

and contract manufacturer quality and preventing

costly rework and scrap downstream. You can

effectively monitor your product across the value-

chain - from suppliers to manufacturing, from finished

goods to end users, from design to field service

Page 14: Closed Loop Quality Management for Competitive Advantage - Quality... · Closed Loop Quality Management ... APQP at Enterasys What is APQP? Advanced Product Quality Planning (APQP)

©2011 Enterasys Networks, Inc., A Siemens Enterprise Communications Company – All rights reserved. 14

Distributed Supply Chain

e Ireland

Brazil

Mexico

USA

Canada

Germany

Romania

Thailand

China

Taiwan

e e

e

e

e

e

e e e

e

100% Outsourced – Tier 1 Manufacturers

Page 15: Closed Loop Quality Management for Competitive Advantage - Quality... · Closed Loop Quality Management ... APQP at Enterasys What is APQP? Advanced Product Quality Planning (APQP)

©2011 Enterasys Networks, Inc., A Siemens Enterprise Communications Company – All rights reserved. 15

SigmaSure Data Input

15

CM / ODM

New Prod Introduction

Manufacturing

Test Records

CRM (Salesforce.com)

RMAs created

RMA Repair Center

Repair

Test Records

ERP (SAP)

Shipments

Receipts

Part numbers

PLM (Agile)

Bill of Material

®

CRM – Customer Relationship Management

ERP – Enterprise Resource Planning

PLM – Product Lifecycle Management

CM – Contract Manufacturer

ODM – Original Design Manufacturer

RMA – Return Material Authorization (Roadmap)

Page 16: Closed Loop Quality Management for Competitive Advantage - Quality... · Closed Loop Quality Management ... APQP at Enterasys What is APQP? Advanced Product Quality Planning (APQP)

©2011 Enterasys Networks, Inc., A Siemens Enterprise Communications Company – All rights reserved.

16

Manufacturing Data Input

CM

Process

Data

Data Management Tool

ODM

Process Data

RMA

Repair Data

CM

Test Data Logs

SigmaSure

FTP site

®

Page 17: Closed Loop Quality Management for Competitive Advantage - Quality... · Closed Loop Quality Management ... APQP at Enterasys What is APQP? Advanced Product Quality Planning (APQP)

©2011 Enterasys Networks, Inc., A Siemens Enterprise Communications Company – All rights reserved. 17

SigmaSure Dashboard Sample

Page 18: Closed Loop Quality Management for Competitive Advantage - Quality... · Closed Loop Quality Management ... APQP at Enterasys What is APQP? Advanced Product Quality Planning (APQP)

©2011 Enterasys Networks, Inc., A Siemens Enterprise Communications Company – All rights reserved. 18

The Process

Product Lifecycle Management influence

PLM process to be architected around product quality metrics and

milestones

Cross functional CI Team of Program managers, Product managers,

Quality engineers and Design leads formed a focused team to develop a

revamped PLM process

Process took roughly 6 months to implement all key elements

Project Goals

Improve roadmap predictability/accuracy (Product Roadmap)

Establish and track Program Metrics, Lower Level Schedule Integration,

Program status awareness and communication

Ensure Quality is part of the PLM process (Quality Issues)

APQP will be developed and incorporated into PLM.

Product Status Communication (Program Management SharePoint site,

Cross-functional team meetings)

Page 19: Closed Loop Quality Management for Competitive Advantage - Quality... · Closed Loop Quality Management ... APQP at Enterasys What is APQP? Advanced Product Quality Planning (APQP)

©2011 Enterasys Networks, Inc., A Siemens Enterprise Communications Company – All rights reserved. 19

PLM Re-engineering

Enterasys Product LifeCycle Management (PLM) - Process Flow (F1753, Rev A)

BOP Approval Phase 1 Approval Phase 3 Approval

Su

pp

ort

ing

Syste

ms

PL

M P

roce

ss

(Pro

gra

m M

gr)

IT Systems: Agile (ECO Processing) / SAP (Production Pricing & LT, Sales Status Blocks), SalesForce.com, SigmaQuest(Quality Tracking)

← Cross-Functional Review Meetings →← Phase Gates →

Phase 1(Concept and Planning)

Phase 4(Steady State/EOL)

Phase 2(Detailed Planning & Design Execution)

Phase 3(Pilot/Beta → GA)

Program Management Sharepoint Updates (FRS date, PLM Checklist, APQP, Internal Schedule, Budget)

Supporting Departments (Legal, Finance, IT)

M1 M2 M3 M4 M5Milestones → (Phase 1 Approval) (Sales Release – 11 block lift) (Generally Available)(Phase Out Approval)

(End of Product Actvities)

M0 (BOP Approval)

Key Approach

Industry Benchmarking

Re-institute a structured phase gate approach

Establishing Metrics

Establishing Product Quality Milestones and Targets

Clear cross functional responsibilities

Centralized Repository and Consistent Reporting for

Program status and metrics

Page 20: Closed Loop Quality Management for Competitive Advantage - Quality... · Closed Loop Quality Management ... APQP at Enterasys What is APQP? Advanced Product Quality Planning (APQP)

©2011 Enterasys Networks, Inc., A Siemens Enterprise Communications Company – All rights reserved. 20

APQP at Enterasys

What is APQP?

Advanced Product Quality Planning

(APQP) is a framework of procedures

and techniques used to develop

products. Its concepts and

methodology have been embraced

throughout industry and is now

considered a basic Quality Practice

used to assure high quality for new

products. .

Enterasys’ implementation features:

Incorporated as a subset of our PLM process and ensures all hardware

quality-related development tasks are completed and reviewed

Checklist tracking of ~200 primarily HW quality-related tasks

Project Dashboards and automated alerts

Provides audit-worthy documentation of completion

Allows collection of metrics for PLM process & product improvement

Page 21: Closed Loop Quality Management for Competitive Advantage - Quality... · Closed Loop Quality Management ... APQP at Enterasys What is APQP? Advanced Product Quality Planning (APQP)

©2011 Enterasys Networks, Inc., A Siemens Enterprise Communications Company – All rights reserved. 21

Product Quality Improvement Teams (PQITs)

What are PQITs?

Cross-functional (Product Mgmt., R&D,

Field Support, Test & Manufacturing

Engineering, Product Quality) continuous

improvement team meeting weekly to

address factory yield and field quality

initiatives

Enterasys’ implementation features:

Key element of APQP that provides for continual product

improvement throughout product manufacturing life

Direct employment of SigmaSure enterprise quality data

to identify issues, drive actions and prioritize decisions

Use of FMEA tracker to sort and prioritize action items

Page 22: Closed Loop Quality Management for Competitive Advantage - Quality... · Closed Loop Quality Management ... APQP at Enterasys What is APQP? Advanced Product Quality Planning (APQP)

©2011 Enterasys Networks, Inc., A Siemens Enterprise Communications Company – All rights reserved. 22

Product Quality Results

Provided a tool to control the

customer quality dialogue

Predictive Quality control measures

for Field population

Proactive Product Life Cycle decision

points for EoL and quality targets

Established predictive analytics for

customer sensitivity to issues and to

help drive service inventory decisions

Quality leads for Sales Organization

Page 23: Closed Loop Quality Management for Competitive Advantage - Quality... · Closed Loop Quality Management ... APQP at Enterasys What is APQP? Advanced Product Quality Planning (APQP)

©2011 Enterasys Networks, Inc., A Siemens Enterprise Communications Company – All rights reserved. 23

Product Quality Results

Recognized 41% reduction in

1st year return rate in highest

volume product line!

52% improvement in monthly

return rate for our most

complex modular switch

routing family!

23% improvement in return

rate over last 2.5 years

across entire portfolio!

50.6% reduction in per unit

warranty reserve!

Page 24: Closed Loop Quality Management for Competitive Advantage - Quality... · Closed Loop Quality Management ... APQP at Enterasys What is APQP? Advanced Product Quality Planning (APQP)

©2011 Enterasys Networks, Inc., A Siemens Enterprise Communications Company – All rights reserved. 24

Lessons learned - SigmaSure implementation

Engage your IT team early

Document data requirements & back-up process

Need a Champion to sponsor and support the

project

Need a Full-time Quality Systems Engineer

Create a venue to review and action data

periodically

Communicate with vendors regularly to continually

improve product quality

Automate report distribution to management

Page 25: Closed Loop Quality Management for Competitive Advantage - Quality... · Closed Loop Quality Management ... APQP at Enterasys What is APQP? Advanced Product Quality Planning (APQP)

©2011 Enterasys Networks, Inc., A Siemens Enterprise Communications Company – All rights reserved. 25

Lessons learned – Sustained improvement

Key drivers to achieve sustained improvement:

Data automation and availability

Accessibility to information

Standardization of communication process

Benchmarking processes and tools

Recognition of improvement

Training on continuous improvement methodology

Page 26: Closed Loop Quality Management for Competitive Advantage - Quality... · Closed Loop Quality Management ... APQP at Enterasys What is APQP? Advanced Product Quality Planning (APQP)

©2011 Enterasys Networks, Inc., A Siemens Enterprise Communications Company – All rights reserved. 26

Brad Martin

Vice President of Eng Operations and Quality

Enterasys Networks

978-684-1015

[email protected]

Thank you

Page 27: Closed Loop Quality Management for Competitive Advantage - Quality... · Closed Loop Quality Management ... APQP at Enterasys What is APQP? Advanced Product Quality Planning (APQP)

A Siemens Enterprise Communications Company

Visit us at: www.enterasys.com