Critical to Quality Aligning Improvement/ Design Efforts with Customer Requirements

RR66SS Rogers 6 SigmaRogers 6 Sigma

1WCBF’s Six Sigma in Sales & Marketing Conference, Chicago, September 21-23, 2004

Critical to Quality

Aligning Improvement/ Design Efforts with

Customer Requirements

Harry W. Kenworthy

Vice President, ManufacturingSeptember 22, 2004



Overview

• Background Info on Rogers

• Six Sigma (R6S) at Rogers

• Managing Change

• Determining Customer CTQs

• Measurement Systems

• Sales and Marketing Examples

• Process Ownership and Accountability



Patented Specialty

Materialsdeveloped from

Innovative Technologiesfor

Global Markets

Rogers Background

Founded in 1832NYSE listed company

1500+ Worldwide Employees



Rogers Specialty Materials

FocusPrinted Circuit Materials

High Performance Foams



Flexible Laminates

High Frequency Laminates

Printed Circuit Materials



High Performance Foams

Silicone Foams

Urethane Foams

Polyolefin Foams



Polymer Materials & Components

Bus Bars & Non Wovens

Elastomer Components & Floats

Moving some Production to China

EL Lamps & InvertersDurel Acquired in Sept. 2003



2003 Worldwide Sales

Includes 50% of Joint Venture Sales

40%

40%

3%

17%

US Asia Europe Other

Other: Canada 1.5%; Latin America 0.8%, and Middle East & Africa 0.8%



2003 Sales By Market (%)*

Includes 50% of Joint Venture Sales

Transportation12%

Other5%

Imaging10%

Consumer8%

Communications46%

Computer& HDD19%

* Adjusted for continuing businesses



Manufacturing Locations*

*Including Joint Ventures

International Sales Offices: Japan China Hong Kong Taiwan Korea Singapore Belgium

USA: Rogers, CT Woodstock, CT Carol Stream, IL (3)Chandler, AZ

Europe: (3) Gent, Belgium

Asia: (3) Suzhou, China Taipei, Taiwan (RCCT) Nagoya and Mie, Japan (RIC) Hwasung City, Korea (KF Inc.)



Six Sigma (R6S) at Rogers

• Used GE starting in Q3, 2001• Initial training involved the top 100

managers in Rogers (7% of total employees):– Intro to Six Sigma, CAP, and BPM

• Since 2002, internally self-sustained, including training

• Projects are in all areas of Rogers



Six Sigma is Holistic

Six SigmaReduce Variation

Reduce Costs

Six SigmaReduce Variation

Reduce Costs

DMAICExisting Systems

DMAICExisting Systems

CPDNew Jobs

New Technology

CPDNew Jobs

New Technology

ShaininRed X

ShaininRed X

LeanTools

LeanTools

ShaininGreen Y

ShaininGreen Y

MarketingProcess

MarketingProcess

BPMDashboard Metrics

(How we “drive” the business)

BPMDashboard Metrics

(How we “drive” the business)

CAPManage Change

CAPManage Change

Technical Operational Technical Customer

Processes

Tools and Strategies to Execute the Process



DMAIC

IMPROVE IMPROVE ANALYZE ANALYZE DEFINE DEFINE MEASURE MEASURE CONTROL CONTROL

• Project Charter• High Level Process Map• Detailed Process Map• Customer CTQs• Stakeholder Analysis• Estimate of Financial Benefits

• Project Y• Performance Stds• Data Collection Plan• Validated Measurement System• Strategy Diagram• Performance & Capability Metrics• Improvement Goal

• Prioritize List of all Xs• List of Vital Few Xs• Review Estimate of Financial Benefits

• Identify Potential Solutions• Pilot the Solution in a real business environment• Approved Solution(s)

• Implementation Plan• Operating Tolerances• Validated Measurement System• Control Plan• Updated Change Management Plan• Project Closure



CPD Process



Technical Attack

Team / Organization /

Cultural Attack

Q x A = E

BusinessResults

Quality of Six Sigma solution times its Acceptance = Effectiveness

Quality of Six Sigma solution times its Acceptance = Effectiveness

Managing and Accelerating Change



Leading Change:Having a champion who sponsors the change

Changing Systems and Structures: Making sure that the management practices are used to

complement and reinforce change

L e a d i n g

C h a n g e

Creating A Shared Need:The reason to change, whether driven by threat or opportunity, is instilled within the organization and widely shared through data, demonstration or demand. The need for change must exceed its resistance.

Shaping A Vision:The desired outcome of change is clear, legitimate, widely understood and shared.

Mobilizing Commitment:

There is a strong commitment from key constituents to invest in the change, make it work, and demand and receive management attention.

Making Change Last:

Once change is started, it endures, flourishes and learning's are transferred throughout the organization.

Monitoring Progress:

Progress is real; benchmarks set and realized; indicators established to guarantee accountability.

S y s t e m s

&

S t r u c t u r e s

The Elements of CAP



Key measurable characteristics of a

product or process that must be met to

satisfy customer and shareholder needs

Customer CTQs

CTQ = Critical To Quality



IdentifyCustomers

Voice Of TheCustomer (VOC)

Determine CTQs

Steps To Determining CTQs

List customers

Define customer segments

Narrow list

Organize all customer data

Translate VOC to specific needs

Define CTQs for needs

Prioritize CTQs

Contain problem if necessary

Review existing VOC data

Decide what to collect/ select VOC tools

Collect data



OU

TPUT

OU

TPUT

INPUTMeasure and Prioritize

OUTPUT

Research Methods: Listening posts

–Complaints–Service Representative

feedback–Sales Representative

feedback–Scorecards

“Be a customer” Customer observation

INP

UT

Research Methods: Interviews Focus groups

INP

UT

Little or no customer information

Quantified, validated needs and priorities

Probe for Understanding

Frame Customer Needs

Select Customer Research Methods

High-level qualitative information on customer needs

Indicators of what causes dissatisfaction (from complaint data)

Direction for where you need additional information gathering

High-level qualitative information on customer needs

Indicators of what causes dissatisfaction (from complaint data)

Direction for where you need additional information gathering

Needs and values of a small group of customers

Qualitative information about what customers mean—e.g., What is “fast”?

Hypotheses about what is important to the customer, which can be used in quantitative studies

Needs and values of a small group of customers

Qualitative information about what customers mean—e.g., What is “fast”?

Hypotheses about what is important to the customer, which can be used in quantitative studies

Research Methods:Surveys

–Written–Electronic–In-person–Telephone

Competitive comparison (from customers’ point of view)



Write the need, not the solution

Write the need in complete sentences; examples help

Use measurable terms

Avoid words like “should” or “must”

Be concise

Write from a positive perspective

Validate the need with the customer

Even then, VOC information may still not be accurate!

Guidelines For Writing Customer Needs



Customers Shareholders Regulators GovernmentAgencies

OtherStakeholders

Purchasers/Users of the Product/Service

Purchasers/Users of the Product/Service

Stakeholders With Requirements of the Product, Service, or Process (Controllership)

Stakeholders With Requirements of the Product, Service, or Process (Controllership)

There are many different “voices” that must be considered in determining CTQ’s:

External Customers - End users of the product or service.

Internal Customers - Utilize the output of your process to complete their own process. Often speak for the external customer.

Stakeholders - People or groups who are impacted by or can impact a process, regulators, the community.

Identify and Prioritize All Customers



What’s the big deal about Measurement Systems?

- Production – machine controls, product outcome- Quality Control – what is good or bad?- Customers – do we agree and are we measuring the same way?- Suppliers – same as Customers- R&D – how we develop products – anything we do depends on

good measurement systems- Specs – they are set based on measurements- Etc.

In our experience, over 85% of the Measurement Systems that have been investigated weren’t capable!



Long-term

Process Variation

Actual Process Variation

Repeatability Calibration Stability Linearity

Gage

Variation

Operator

Variation

Measurement Process Variation

Observed Process Variation

“Other” Sources- Environmental- etc.

Short-term

Process Variation

Variationwithin Sample

observed =

process + measurement

observed =

process + measurement

(Δ P) (Δ M)

Possible Sources of Measurement Variation

Must be satisfied 1st!



Six Sigma Applicationsfor Sales & Marketing

• Product Differentiation– Reduce product variation vs. competition– Tighter specs vs. competition– Less scrap = higher yields

• Better Responsiveness– Mfg lead/cycle time reductions– Flexible/increased capacity– Prototype speed improvement– Design process improvement



Six Sigma Applicationsfor Sales & Marketing (con’t)

• Enhanced Quotation/Costing• Enhanced Quote -> Sales Conversion• Prospect Management – receiving,

qualifying & handling leads• Sales Replication – replicating success• Product Line Rationalizations• Joint Projects with Customers• Streamline Process Flows in many areas –

Value Stream Mapping



Process Ownership & Accountability

• Process Owners Identified & Involved

• Integrated in Performance Appraisals

• BPM – Business Process Management

• Visual Controls – Large postings, prominent locations, personal pictures



Selling Selling

Lead Generation & Qualification

Lead Generation & Qualification

AfterSales

Support

AfterSales

Support

% new product salesNew Market Dev. Proj.

Scott Rob SharonJeffMarc

$ value of publicity# website hits

# qualified leads

# and value of design-in’s/Qtr to Qtr sales13 wk bookings rateForecast accuracy (Quarterly)

Design-outs due to technical issueCRMR %

Sales & Marketing Level 1 BPM Example

Market

DevelopmentProduct

Promotions(Marcom)



Another BPM Example

Order Fulfillment

Order Fulfillment

Post Delivery Support

Post Delivery Support

Account Promotion/

Penetration

Account Promotion/

Penetration

On-time delivery to request

Ship & bill error rate

# of DIB’s

# of Post-delivery support complaints

CRMCRM

Customer survey ratings

# of lost customers/ programs (rolling avg/DSO metrics)



Visual Controls



Rogers vs S&P 500 & Russell 2000

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The World Runs Better with Rogers

Documents

Critical to Quality Aligning Improvement/ Design Efforts with Customer Requirements