Practical application of total quality management tools and techniques by motorola, inc.

INTRODUCTION

Motorola Inc. is one of the largest telecommunication manufacturer companies of the world. Motorola is in telecommunication industry for more than 80 years. Motorola net sales in 2008 were U.S. $ 30.1 billion and it employed approximately 65,000 people all over the world.

The company manufactures telecommunication products like Microprocessors, Mobile phones, Smartphone’s, Two-way radios, Networking systems and Satellite phones etc.

This report examines the efficiency and effectiveness of the TQM tools practice by Motorola i.e. Six Sigma Approach, Continuous improvement, Employee involvement and Customer focus etc. It also analyzes the quality standard of Motorola, Inc.

Product quality for Motorola is the most important factor of business profitability and importance of ensuring the quality of the products cannot be underestimated. Strategy of quality improvement usually increases innovative products that meet the expanding needs of Motorola customers around the world and also increases market share of company.

Motorola sees things from a global perspective, always motivated to create and produce innovative products of the highest quality at a reasonable price for worldwide customer satisfaction. Motorola is also trying to develop environmental friendly products in order to show responsible corporate citizen image. Furthermore, new ways are found out by Motorola to reduce raw material requirements and at the same time keep wastage level at minimum.

Vision Statement:

“Our history is rich. Our future is dynamic. We are Motorola and the spirit of invention is what drives us.”

Mission Statement:

“We are a global communications leader powered by a passion to invent and an unceasing commitment to advance the way the world connects. Our communication solutions allow people, businesses and governments to be more connected and more mobile.”

Values of Motorola:

§ Receive customer loyalty by delivering on our promises.

§ Build quality associations with companies that contribute to our values.

§ Take care of the investment of our shareholders as if it were our own.

§ Compete aggressively but with integrity.

§ Provide products and services that benefit people.

§ Business decisions must be based on the best interests of Motorola.

§ Report business conduct concerns immediately.

§ Business must be conducted legally and ethically, without accepting or giving bribes.

Strategy:

As a global corporate citizen, Motorola tries to create products and technologies that benefit society by making things smarter and life healthier for people around the world. Motorola is devoted to operate ethically, defending the environment and supporting the communities in which Motorola do business. They are guided by our Code of Business Conduct, which is based on our key beliefs of unbending reliability and constant respect for people.

As a global corporate citizen, Motorola strives to:

§ Create innovative technological solutions that benefit people at home, at work and on the move.

§ Increase shareholder value through profitable growth, technological innovation and market leadership.

§ Operating with precision and the top standards of ethics and law.

§ Protect the environment by improving our environmental performance and designing environmentally conscious products.

§ Maintain a safe and healthy workplace, fostering a globally diverse workforce and supporting our employees’ work-life balance.

§ Promote economic opportunities and growth in regions where Motorola conduct business, through products, services and operations.

§ Set expectations for our suppliers to conduct their operations in agreement with the law.

PRODUCT PORTFOLIO

Motorola is a global leader in wireless, broadband and automotive communications technologies and embedded electronic products.

Wireless:

Motorola is one of the world’s leading providers of wireless handsets, which transmit and receive voice, text, images and other forms of information and communication. Also, they develop, manufacture and market public and enterprise wireless infrastructure communications systems, including hardware and software. They are a leading provider of customized, mission-critical radio communications and information systems.

Broadband:

Motorola is a global leader in developing and deploying end-to-end digital broadband entertainment, communication and information systems for the home and for the office. Motorola broadband technology enables network operators and retailers to deliver products and services that connect consumers to what they want, when they want it.

Automotive:

Motorola is a global leader in embedded telematics systems that enable automated roadside assistance, navigation and advanced safety features for automobiles. Motorola also provides integrated electronics for the power train, chassis, sensors and interior controls.

KEY STAKEHOLDERS

The key stake holders who directly or indirect affect Motorola company LTD according to CSR report 2008 are:

§ Customers

§ Employees

§ Suppliers

§ Labor unions

§ Investors/share holders

§ Industry organizations

§ Government

TOTAL QUALITY MANAGEMENT PRACTICES OF MOTOROLA

I. Six Sigma Approach:

Six Sigma was originally developed as a set of practices designed to improve manufacturing processes and eliminate defects, but its application was later extended to many other types of business processes as well. In Six Sigma, a defect is defined as anything that could lead to customer dissatisfaction and / or does not meet business set specifications.

The elements of the methodology were first formulated by Bill Smith at Motorola in 1986. Six Sigma was heavily inspired by six previous quality improvement methodologies such as quality control, TQM, and Zero Defects, based on the work of pioneers such as Shewhart, Deming, Juran, Ishikawa, Taguchi and others.

Six Sigma has two key methodologies: DMAIC and DMADV both inspired by Deming’s Plan-Do- Check-Act Cycle.

DMAIC (used to improve an existing business process)

The basic DMAIC methodology consists of the following five steps:

§ Define process improvement goals that are consistent with customer demands and the enterprise strategy.

§ Measure key aspects of the current process and collect relevant data.

§ Analyze the data to verify cause-and-effect relationships. Determine what the relationships are, and attempt to ensure that all factors have been considered.

§ Improve or optimize the process based upon data analysis using techniques like Design of Experiments.

§ Control to ensure that any deviations from target are corrected before they result in defects. Set up pilot runs to establish process capability, move on to production, set up control mechanisms and continuously monitor the process.

DMADV/ DFSS – Design for Six Sigma (used to create new product or process designs)

The basic methodology consists of the following five steps:

§ Define design goals that are consistent with customer demands and the enterprise strategy.

§ Measure and identify CTQs (characteristics that are Critical To Quality), product capabilities, production process capability, and risks.

§ Analyze to develop and design alternatives, create a high-level design and evaluate design capability to select the best design.

§ Design details, optimize the design, and plan for design verification. This phase may require simulations.

§ Verify the design, set up pilot runs, implement the production process and hand it over to the process owners.

How is Six Sigma different?

Features that differentiate Six Sigma apart from previous quality improvement initiatives include –

§ A clear focus on achieving measurable and quantifiable financial returns from any Six Sigma project.

§ An increased emphasis on strong and passionate management leadership and support

§ A special organization infrastructure of “Champions,” “Master Black Belts,” “Black Belts”, “Green Belts” etc. to lead and implement the Six Sigma approach.

§ A clear commitment to making decisions on the basis of verifiable data, rather than assumptions and guesswork.

§ The term “Six Sigma” is derived from a field of statistics known as process capability study. It refers to the ability of processes to produce a very high proportion of output within specification. Processes that operate with “Six sigma quality” over the short term are assumed to produce (long-term) defect levels below 3.4 defects per million opportunities (DPMO).Six Sigma’s implicit goal is to improve all processes to that level of quality or better.

Motorola knows Six Sigma is a very good approach but not perfect for achievement of the quality goals. That’s why being the founder of the Six Sigma technique; Motorola practices lots of useful tools of TQM.

II. Customer focus:

Customer focus is the major concern of Motorola. Motorola has always worked well with its supplier to maximize the customer satisfaction. Motorola services and products are focused on market share and loyalty of customers. Customer satisfaction index help Motorola in measuring the satisfaction level of its customers. Customer complaints not only represent the problem of Motorola customer face but also are a big opportunity for improvement. Motorola tries to find the root causes of the problem and remove that, so as to enhance services and reduce complaints of customer in long run. Customer relation centers help Motorola in handling the enquiries from customers quickly, respectfully and clearly.

III. Continuous improvement and Supplier Standards:

Supplier produce necessary parts and materials for the products, maintaining close cooperation is very important for stable production and enhancement of quality. Motorola knows the importance of relationship with its supplier that’s why Motorola is building long term relationship with its business partners.

Motorola follows strict processes to ensure the quality of finished products regardless of whether it is from the internal or external suppliers. For Motorola it is also very crucial that working conditions are safe for employees, and employees are treated as partner, this will assure the quality and continuity of supply. Motorola also believes that treating suppler as partner is very important for growth of both parties; motivated supplier will help in implementing the technique of JIT (Just-In-Time) which help in achieving the cost leadership goal of Motorola.

IV. Benchmarking:

Benchmarking is one of the effective tools of Motorola that enables to gain competitive edge by building strengths and reducing weaknesses of company. Benchmarking inspire Motorola managers to compete, it is useful tool of quality because the objectives are set on the basis of external information, due to information access personnel of the organization is much more motivated to attain the goals and objective. Motorola know that Benchmarking is time and cost efficient because the process involves imitation and adaptation rather than pure invention.

V. Environmental Concern:

Motorola is working with its supplier to produce smart products which is not harmful for environment, Motorola produce energy efficient products to promote environmental management systems. Motorola is supporting the supplier’s efforts to achieve the ISO 14000 Certification which is very helpful for sustainable environment. Motorola follows all countries, regions and localities laws regarding environment and trying to find out the cheap ways to minimize energy usage.

VI. Education and Training:

Employee development is very important for continues improvement, therefore Motorola gives ongoing education and training to its employees. This not only keeps employees up-to-date with new trends applied to job but also help increase the productivity. Motorola monitor the effectiveness of training programmes to ensure that it’s useful for employees.

VII. Employee involvement:

The performance of organization directly depend on the employee involvement, therefore success of company is dependent on the involvement of employees. Motorola Employees are the source of creativity and problem solving. Employee must be given authority which motivates employees to own the company / Process of Company. Motorola staff knows they play vital role in the success of the company, that why they effectively participate in all processes of organization. Employee involvement efficiently increased quality of the products produced by Motorola.

PERFROMANCE INDICATORS OF MOTOROLA

Motorola tries to provide the superior products and services by innovative and improve quality products which satisfy customer needs, provides employees with meaningful work environment and advancement opportunities and investors with a superior return.

Motorola is also playing a role to make sure that their products are accessible and affordable to the people who need them. They are taking different initiatives and forming partnerships in this regard.

All people at Motorola are responsible for adhering to business practices that are in accordance with the law and the ethical principles. The Company strives to use outside technology resources as well. Motorola’s manufacturing departments also focus on core products.

It works with its employees to understand their concerns, needs and thoughts on company’s strengths and weaknesses and incorporate these findings into the strategies, processes and programs. In order to do this, Motorola carries out surveys of employees.

Motorola promotes the human rights of its employees. The main focus is to encourage justice, equal opportunity and dignity without discrimination. This is a step towards promoting economic development.

SUCCESSES OF MOTOROLA

Motorola is a world-renowned company that services the US and several international countries. Their organizational structure puts them on top of the rest with strong values for their employees and customers. I learned that there is a huge competition between Nokia and Motorola for market share in the manufacturing of handheld devices. Starting out in 1928 as a small battery powered radio producer, Motorola is truly a company building a foundation for the next up and coming technology. Motorola is a company that has been around a long time and one of its main key factors to success is that that you can see the brand name any where you go.

Motorola is the second leading producer of wireless handsets and is the top supplier of wireless infrastructure equipment such as cellular transmissions base stations, amplifiers, and network switching. It’s also helpful in many new products such as the new Star Tac cell phone that has the market wondering if Motorola is back in the game and ready to regain market share.

Motorola is also the top producer of fixed chips that are used in wireless networking, automotive, and customer products. A key success for many annalists is how much market share a company has. Motorola has the no. one global market share in semiconductors for automotive applications, in communications processors, and in radio frequency power products for cellular base station markets.

CONCLUSION AND RECOMMENDATIONS

To remain competitive in these extremely competitive economic situations that exist in today’s telecommunication industry, telecommunication companies must look for excellence. New style of management helps in achieving the excellence which focuses on cycle time reduction, employee involvement, the reduction of waste, continuous improvement, and customer satisfaction.

To gain competitive edge in twenty first century market, it is crucial for telecommunication companies to supply more reliable quality and value to their customers. It is the time to expand better and more direct relationships with clients, to start teamwork at the jobsite, and to generate better quality work.

The recommendations are that Motorola must continue to sustain the position of cost leadership by focusing on quality of the products, as it helps in producing high volumes of mature products, which lead to lower prices. Motorola should apply differentiation strategy to gain competitive advantage to charge premium prices.

REFERENCES

§ http://www.motorola.com

§ Total Quality Management Third Edition by

Dele H. Besterfield

Carol Besterfield Michna

Glen H. Besterfield

Mary Besterfield Sacre

§ Six Sigma Academy: http://6-sigma.com/Bts1.htm

§ Motorola University: http://mu.motorola.com/sigma.shtml