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TRANSCRIPT
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
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
©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
©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
©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
©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”:
©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
©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)
©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
©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)
©2011 Enterasys Networks, Inc., A Siemens Enterprise Communications Company – All rights reserved. 11
Communicating the Results…..
©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
©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
©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
©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)
©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
®
©2011 Enterasys Networks, Inc., A Siemens Enterprise Communications Company – All rights reserved. 17
SigmaSure Dashboard Sample
©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)
©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
©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
©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
©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
©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!
©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
©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
©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
Thank you
A Siemens Enterprise Communications Company
Visit us at: www.enterasys.com