Ericsson meets SMID Six sigma concepts April 2011

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Ericsson meets SMID Six sigma concepts April, 2011

Ericsson meets SMID Six sigma concepts April, 2011

Agenda › 4 th April – Ericsson presentation – Statistical tools in manufacturing –

Agenda › 4 th April – Ericsson presentation – Statistical tools in manufacturing – DMAIC/IDDOV › 7 th April – Define – Measure › 11 th April – Analyze › 14 th April – Implement – Control Six Sigma @ Ericsson | Commercial in confidence | 2011 -03 -24 | Page 2

only 16% of change programs are successfully delivered Most Transformations Fail … … Usually

only 16% of change programs are successfully delivered Most Transformations Fail … … Usually Due To Poor Ownership Building 16% Successful (delivered on time and on budget) • Clear statement of requirements • User involvement • Exec. Mgmt. support • Proper training 31% Cancelled Business Case invalid • • Funding • Prioritization Source: Standish Group International 53% Underperform (late, over budget and/or deliver less than the requirement) • Incomplete requirements • Lack of Exec Mgmt support and commitment • Poor communications • Lack of consistent follow-through • Lack of implementation capacity • Unclear, unrealistic objectives Six Sigma @ Ericsson | Commercial in confidence | 2011 -03 -24 | Page 3

What is Six Sigma? › A strategy for: – For cutting costs, increasing quality,

What is Six Sigma? › A strategy for: – For cutting costs, increasing quality, shortening lead-times, boosting efficiency etc in a very rapid manner. › A methodology and a tool-box. – Well proven quality tools packed in effective project models. – A common vocabulary and language. › A mindset and cultural change. – Reveals non-value add costs to operational leaders and brings “a sense of urgency” culture to the organization. – A non-firefighting approach that is focusing on critical business areas. Six Sigma @ Ericsson | Commercial in confidence | 2011 -03 -24 | Page 4

The history of Six Sigma › ’ 74 › ‘ 79 › ‘ 80

The history of Six Sigma › ’ 74 › ‘ 79 › ‘ 80 › ‘ 84 › ‘ 88 › ‘ 89 MATSUSHITA takes over loss-making Quasar (Television manufacturer) from Motorola (150 -180 defects per 100 TV’s) Defects reduced to 3 per 100 TV’s Quasar reports success to ASQC (Hitzelberger Report) Bill Smith visits Quasar & recommends to Galvin (CEO) the Six Sigma process Motorola wins 1 st Malcolm Baldridge Award Onwards Six Sigma adopted by other companies Allied Signal, GE, Rank Xerox, Kodak, ABB, Siebe, … Six Sigma @ Ericsson | Commercial in confidence | 2011 -03 -24 | Page 5

Six Sigma Trained People at Ericsson Green Belt: : Green Belt: A six to

Six Sigma Trained People at Ericsson Green Belt: : Green Belt: A six to nine day DMAIC or IDDOV selected tools training for people who apply Six Sigma in daily operations and drives smaller project. Yellow Belt: : Yellow Belt: A three to five day DMAIC and simple Six Sigma tools training for people who apply Six Sigma in daily operations. Manager Training: Black Belts: A two to three day training in coaching/managing improvements and efficient sponsorship Change agents trained 20 days in change mgmt, statistical tools and qualitative methods. Requirement: 1 MSEK saving Six Sigma @ Ericsson | Commercial in confidence | 2011 -03 -24 | Page 6

Six Sigma at Ericsson– organic growth Results Trainings Process Purpose 1996 -97 1998 -99

Six Sigma at Ericsson– organic growth Results Trainings Process Purpose 1996 -97 1998 -99 2000 -01 2002 -03 2004 -05 2006 -07 Problemsolving Problemsolving Cost. reduc. Lead time reduc. HR, Forecasting Product develop. HR, Forcasting MU Efficiency & C. S Assembly Test + Sourcing R&D - HW Logistics Black Belt Mngrs training Yellow Belt Champion White Belt Assembly Test + Sourcing R&D - HW Logistics R&D - SW Support Services Black Belt Mngrs training Yellow Belt Champion White Belt Green Belt ~750 Ksek/proj ~1, 2 MSEK/proj ~10 MSEK/proj ~400 proj ~100 proj ~250 proj ~350 proj ~10 proj ~500 proj Six Sigma @ Ericsson | Commercial in confidence | 2011 -03 -24 | Page 7

New Tools Same Behaviours? Six Sigma @ Ericsson | Commercial in confidence | 2011

New Tools Same Behaviours? Six Sigma @ Ericsson | Commercial in confidence | 2011 -03 -24 | Page 8

Six Sigma is a systematic, pragmatic and focused approach to fulfill business objectives Well

Six Sigma is a systematic, pragmatic and focused approach to fulfill business objectives Well proven tools & techniques Exposure of Cost Of Poor Quality and Non Value-Add Value add operations An customer focused Outside In thinking Non-value add Operations & Costs ANOVA QFD 7 QCT FMEA 7 MT Taguchi PDSA Regression Benchmark Capability 6 s applied in thoroughly defined project assignments Ericsson’s view of corporate contribution Customer view of Ericsson contribution Not an vague philosophy and religion that many un-trained people tends to think. A statistical toolbox used to focus on variation, probability for defects and cost of failures Six Sigma @ Ericsson | Commercial in confidence | 2011 -03 -24 | Page 9 SPS Do. E Yield T-test Design objectives Improvement objectives Identify Define Measure Design Analyze Optimize Improve Validate Control

5. Control Validation Governance Robustness 1. Define Y= (x 1, x 2, x 3…xn)

5. Control Validation Governance Robustness 1. Define Y= (x 1, x 2, x 3…xn) 2. Measure 3. Analyze Control mechanisms Training Problem statement Baseline Business Case Target statement Stakeholder analysis Risk analysis Y= (x 1, x 2, x 3…xn) 4. Improve Cause & Effect Historical or new data? Measurement System analysis “As Is” process map Critical few Benchmark Six Sigma @ Ericsson | Commercial in confidence | 2011 -03 -24 | Page 10 Cost-benefit analysis Risk Analysis Implementation plan Y= (x 1, x 2, x 3…xn)

WHAT IS QUALITY?

WHAT IS QUALITY?

Why do we measure? We don't know what we don't know. . . If

Why do we measure? We don't know what we don't know. . . If we can’t put number to it we really do not know much about it… If we don't know much about it we can not act. . . If we can not act, we are at the mercy of chance. . . Dr Mikel J Harry ”Six Sigma founder Motorola” Six Sigma @ Ericsson | Commercial in confidence | 2011 -03 -24 | Page 12

“Good quality does not necessarily mean high quality. It means a predictable degree of

“Good quality does not necessarily mean high quality. It means a predictable degree of uniformity and dependability at low cost with a quality suited to the market. ” Dr. W. Edwards Deming Six Sigma @ Ericsson | Commercial in confidence | 2011 -03 -24 | Page 13

Why do we need to work with quality? › Customer satisfaction – Market share

Why do we need to work with quality? › Customer satisfaction – Market share – Revenue – Less Claims › Operational Efficiency – Cost reduction – Less rework – Less material › Higher profitability Six Sigma @ Ericsson | Commercial in confidence | 2011 -03 -24 | Page 14

Six Sigma a systematic way to Operational Excellence Change Management Successful Deployment Results Six

Six Sigma a systematic way to Operational Excellence Change Management Successful Deployment Results Six Sigma @ Ericsson | Commercial in confidence | 2011 -03 -24 | Page 15 Methodology

The hidden change barriers -Formal authority -Organization charts- -Budget- -Time schedule- -Tools/Methods-Fear- -Trust-Self esteem-Private

The hidden change barriers -Formal authority -Organization charts- -Budget- -Time schedule- -Tools/Methods-Fear- -Trust-Self esteem-Private life-Hierarchy- -Informal authority-Previous experiences-Social networks-Personal perspective- -Personal & Organizational self confidence-Insecurity- -Culture and atmosphere- -Unclear communication-Status- -Disbelief-Rumors. Six Sigma @ Ericsson | Commercial in confidence | 2011 -03 -24 | Page 16 -Conservatism-Prestige- -Unspoken consequences- Change leaders -Logic- -Procedures-

Change management Change Management distribution Terrorists & Resistors 5% I will never! 50% 20%

Change management Change Management distribution Terrorists & Resistors 5% I will never! 50% 20% If I absolutely must I’ll wait and see Six Sigma @ Ericsson | Commercial in confidence | 2011 -03 -24 | Page 17 “Change Leaders” 20% 5% May I, Can I? I’ll go!

Six sigma a systematic way to Operational Excellence Change Management Results Successful Deployment Six

Six sigma a systematic way to Operational Excellence Change Management Results Successful Deployment Six Sigma @ Ericsson | Commercial in confidence | 2011 -03 -24 | Page 18 Methodology

Existing Business Goals Six Sigma Design Integrated Improvements IDDOV Tool by tool Black Belts

Existing Business Goals Six Sigma Design Integrated Improvements IDDOV Tool by tool Black Belts Line Managers Champions Yellow Belts DMAIC Well proven tools & techniques SPS Do. E Yield T-test ANOVA Six Sigma @ Ericsson | Commercial in confidence | 2011 -03 -24 | Page 19 QFD 7 QCT FMEA 7 MT Taguchi PDSA Regression Benchmark Capability 6 s • Coaching • External Benchmark • Best practice data base

Six sigma a systematic way to Operational Excellence Change Management Successful Deployment Results Six

Six sigma a systematic way to Operational Excellence Change Management Successful Deployment Results Six Sigma @ Ericsson | Commercial in confidence | 2011 -03 -24 | Page 20 Methodology

Project models within Ericsson SS F V D s n g i O s

Project models within Ericsson SS F V D s n g i O s de w e D N D I K M D G L B E J H F A Improvements I C Six Sigma @ Ericsson | Commercial in confidence | 2011 -03 -24 | Page 21 D M A I C Oth er ” Jus P t do it” R Pro ject O s/P rog P ram s S

DMAIC – Ericsson Improvement process DEFINE MEASURE ANALYZE IMPROVE CONTROL Understand need of change

DMAIC – Ericsson Improvement process DEFINE MEASURE ANALYZE IMPROVE CONTROL Understand need of change Understand reality Identify root-causes Make it happen Make it stick Customer, Sponsor Problem week Baseline Define Project time and project Goal stated Business estimation plan TG 0 team TGO statement Process Case Stakeholder TG 2 Communicat Decision Risk map Milestone analysis Data TG 1 ion plan Cause& analysis Measureme Process Update plan collection Decision Effect Start to Measure nt system map "As Is" project Benchmark plan relations measure Root-Cause analysis definition Analyze of others Timeplan (7 MT) analysis Analyze /incl final data (Improve. Goal review TG 2 perf. gap goals) Control) Decision Improve 1 1 4 5 6 7 8 9 0 1 2 3 After phase completion you will have clear answers on the following questions: • Why do we need to change? • What’s the goal? • Who needs to be involved? • What’s the current way of working? • How do we measure this? • What are the rootcauses? • How do they influence the goal fulfillment? • Will you fulfill the goal with selected solution? • How do you implement this with people commitment? • How do you track progress? ”Do the right things the right way” Six Sigma @ Ericsson | Commercial in confidence | 2011 -03 -24 | Page 22 • Has the goal been fulfilled? • How to secure that the implementation will stick?

DEFINE Understand need of change MEASURE Understand reality DEFINE Understand need of change Create

DEFINE Understand need of change MEASURE Understand reality DEFINE Understand need of change Create shared need Why do we need to change? Define wanted position What’s the goal? ANALYZE Identify root-causes IMPROVE Make it happen CONTROL Make it stick Mobilize commitment Who needs to be involved? High Probability High Impact Low Impact GE C B F Low Probability High Impact Low Impact D H § Identify sponsor & change leader § State problem/opportunity § Calculate business case § Evaluate change readiness § Define Goal statement § Perform risk analysis § Benchmark similar improvement initiatives A § Perform stakeholder analysis § Define communication/ involvement plan § Involve key stakeholders to make change happen § Complete improvement charter ”A problem well stated is a problem half solved” Six Sigma @ Ericsson | Commercial in confidence | 2011 -03 -24 | Page 23

Define Phase - Key Steps Measure Analyze Improve Control Define the task and its

Define Phase - Key Steps Measure Analyze Improve Control Define the task and its financial impact Develop and validate measurement method Analyze the root causes Generate and implement solutions Ensure that the results will last Costs Level of true Individual Interest Low High C Keep Satisfied D Key players Individual E Area manager B Individual A Area manager B Individual D Individual B Low Savings Formal or informal authority Define Individual F Individual C All line-operators Analysis of current base line Business case Goal statement Stakeholder map Risk analysis High Probability High Impact GE C Low Probability High Impact D SMART Tools: 4 5 6 7 8 9 1 1 0 1 2 3 B Keep informed A Minimal effort Change need week Define Problem stated Customer, Sponsor and project Baseline estimation team Goal statement Business Case Project time plan TG 0 -TG 2 TGO Decision Process map Stakeholder analysis Communication plan Risk analysis Milestone plan TG 1 Decision Measure Process map "As Is" Data collection plan Start to measure Measurement system analysis Benchmark others Cause& Effect relations (7 MT) Analyze of data Goal review Update project definition /incl Root-Cause analysis perf. gap final goals) Timeplan (Improve-Control) TG 2 Decision Improve Time & resource plan Project charter High Probability Low Impact BF Low Probability HLow Impact A Vo. C-tree, Process maps, Sampling, Capability analysis, SMART, Business Case, Stakeholder map, Mini-risk brainstorm/FMEA Six Sigma @ Ericsson | Commercial in confidence | 2011 -03 -24 | Page 24

DEFINE Understand need of change MEASURE Understand reality ANALYZE Identify root-causes IMPROVE Make it

DEFINE Understand need of change MEASURE Understand reality ANALYZE Identify root-causes IMPROVE Make it happen Understand “AS-IS” process Measure “AS-IS” process What is the current way of working? How can we measure this? § Build “AS-IS” process map § Understand barriers to change § Setup potential cause & effect relations § Benchmark § Plan and perform data collection § Validate measurements § Measure “AS IS” data ”What gets measured gets done” Six Sigma @ Ericsson | Commercial in confidence | 2011 -03 -24 | Page 25 CONTROL Make it stick

Measure Phase - Key Steps Define Measure Analyze Improve Control Define the task and

Measure Phase - Key Steps Define Measure Analyze Improve Control Define the task and its financial impact Develop and validate measurement method Analyze the root causes Generate and implement solutions Ensure that the results will last request customer for change “Change of product specificatio ns” estimation for level of importance execute change? Yes 67% 1 No 33% think of alternatives Alternatives new feature s new specification 1 adjust design specifications New features design changed product flawless design Test new design Produce customer review Old specifications New specifications file Project charter Benchmark Process measurements Process map ”As Is” request for change customer “Change of product specifications ” estimation for level of importance Yes 67% execute change? 1 Measurement system validation A measurement system is comparable to throwing darts at a target. There are two categories of error… No 33% think of alternatives Alternatives new features new specification 1 adjust design specifications New features design changed product flawless design Test new design Produce customer review Old specifications New specifications Precise but not accurat e Accurate but not precise Not accurat e or precise Accu rate and preci se specifications file Tools: Process maps, Sampling, Data collection, Capability analysis, MSA, Benchmark Six Sigma @ Ericsson | Commercial in confidence | 2011 -03 -24 | Page 26

DEFINE Understand need of change MEASURE Understand reality ANALYZE Identify root-causes Identify key root-causes

DEFINE Understand need of change MEASURE Understand reality ANALYZE Identify root-causes Identify key root-causes What are the key root-causes or contributors? § Analyze gap to wanted position § Assess change capabilities IMPROVE Make it happen CONTROL Make it stick Verify influence on goal How do they influence the goal fulfillment? § Verify influence on goal ”Study the past, shape the future” Six Sigma @ Ericsson | Commercial in confidence | 2011 -03 -24 | Page 27 ANALYZE Identify root-cause

Analyze Phase - Key Steps Define Measure Analyze Improve Control Define the task and

Analyze Phase - Key Steps Define Measure Analyze Improve Control Define the task and its financial impact Develop and validate measurement method Analyze the root causes Generate and implement solutions Ensure that the results will last request for change customer “Change of product specifications ” estimation for level of importance Yes 67% execute change? 1 No 33% think of alternatives Alternatives new features new specification 1 adjust design specifications New features design Test new design review Old specifications New specifications file changed product flawless design Produce customer ! Found areas to address Reliable process measurements Analysis of causes Scatter Plot/Fitted Line Regression Score 130 120 110 Y = 3. 3 1 28 4 + . 1 67 5 46 X 100 R-Squared = 0. 906 90 35 Tools: 40 45 Putts 50 Process maps, Capability analysis, Regression analysis, Hypothesis testing, Correlation analysis Six Sigma @ Ericsson | Commercial in confidence | 2011 -03 -24 | Page 28

DEFINE IMPROVE Make it happen Identify “To-Be” process and test possible solutions • Will

DEFINE IMPROVE Make it happen Identify “To-Be” process and test possible solutions • Will you fulfill the goal with selected solution? request customer for change “Change of product specification s” estimation for level of importance execute change? Alternatives new features 1 New features design changed product flawless design Test new design Produce customer review Old specifications Plan and implement solution • How do you implement this with people commitment? ANALYZE Identify root-causes IMPROVE Make it happen CONTROL Make it stick Monitor progress • How do you track progress? 1 think of alternatives new specification MEASURE Understand reality Yes 67% No 33% adjust design specifications Understand need of change New specifications file • Identify possible solutions to address key contributors • Perform cost/benefit evaluation • Perform solution risk analyses • Test solution • Mobilize broad commitment • Plan implementation • Competence and resource allocation • Create & follow-up Process & IT demands • Execute implementation plan • Embed changes in management system • Monitor improvement progress & people commitment ”Words don’t move mountains. People do. ” Six Sigma @ Ericsson | Commercial in confidence | 2011 -03 -24 | Page 29

Improve Phase - Key Steps request customer for change Define Measure Analyze Improve Control

Improve Phase - Key Steps request customer for change Define Measure Analyze Improve Control Define the task and its financial impact Develop and validate measurement method Analyze the root causes Generate and implement solutions Ensure that the results will last “Change of product specification s” estimation for level of importance execute change? week Define Problem stated Customer, Sponsor and Baseline estimation project team Goal statement Business Case Project time plan TG 0 -TG 2 TGO Decision Process map Stakeholder analysis Communication plan Risk analysis Milestone plan TG 1 Decision Measure Process map "As Is" Data collection plan Measurement system Start to measure analysis Cause& Effect relations Benchmark others (7 MT) Analyze of data Root-Cause analysis perf. Goal review Update project definition /incl gap final goals) Timeplan (Improve-Control) TG 2 Decision Improve Yes 67% 1 Severity x Occurrence x Detection No 33% think of alternatives Alternatives new features new specification 1 adjust design specifications New features design = RPN (Risk Priority Number) changed product flawless design Test new design Produce customer review Old specifications New specifications 4 5 6 7 8 9 1 0 1 1 1 2 1 3 specifications file Found areas to address Risk analysis of solutions Cost/savings analysis of solutions Implementation plan Resource allocation INSTRUCTION Savings Tools: Costs Process maps, Cost/benefit template, FMEA Six Sigma @ Ericsson | Commercial in confidence | 2011 -03 -24 | Page 30 Implementation fulfilled?

DEFINE CONTROL Make it stick Understand need of change MEASURE Understand reality ANALYZE Identify

DEFINE CONTROL Make it stick Understand need of change MEASURE Understand reality ANALYZE Identify root-causes IMPROVE Make it happen CONTROL Make it stick Validate results Secure sustainability Transfer good practice Has the goal been fulfilled? Will the solution stick? Can someone else benefit from your experiences? • Validate improvement effect • Evaluate lesson learned • Anchor & handshake solution ownership • Ensure competence capability for new way of working/solution • Ensure mechanism for continuous monitoring and improvements • Communicate results • Transfer good practices • Celebrate achievements ” When yesterday's future becomes business as usual. ” Six Sigma @ Ericsson | Commercial in confidence | 2011 -03 -24 | Page 31

Control Phase - Key Steps Define Measure Analyze Improve Control Define the task and

Control Phase - Key Steps Define Measure Analyze Improve Control Define the task and its financial impact Develop and validate measurement method Analyze the root causes Generate and implement solutions Ensure that the results will last Implementation fulfilled? Are solution robust? Results validated towards goal statement Tools: Six Sigma @ Ericsson | Commercial in confidence | 2011 -03 -24 | Page 32 Learning's & best practice transfer Responsibility transfer SPC, P-diagram Celebrate

Light DMAIC Chart Define Measure Analyze I Understand the task and its financial impact.

Light DMAIC Chart Define Measure Analyze I Understand the task and its financial impact. Develop and execute an appropriate data collection method. Find the root causes. Generate and implement solutions. Ensure that the results will last. • Task selection matrix • SMART review • Stakeholder map • Risk Management • Process map • Data collection table • Pareto diagram • Fishbone diagram • Correlation analysis • FMEA risk analysis • Process map • Documentation, standardization and training • SWOT analysis • Process map • VOC and break down to CTQs • 7 MT • Affinity diagram • 7 QCT • Measurement system analysis • Sampling technique • SIPOC • Gauge R&R, Gauge attribute • Capability analysis • Benchmark • Tagushi loss functions mprove Control Comprehensive Six Sigma @ Ericsson | Commercial in confidence | 2011 -03 -24 | Page 33 • 7 QCT • Hypothesis testing • Regressionanalysis • DOE • Anova • 7 MT • Data transformations • Simulations • Poka-Yoke • Hypothesis testing • Loss functions • Cost/Benefit selection • Pugh Concept Selection • 7 QCT • SPC • Business case verification

Key elements for a DMAIC project › Has a measurable and verifiable result. -

Key elements for a DMAIC project › Has a measurable and verifiable result. - Cut cost in. . . - Reduce lead-time in… - Reduce variation in. . . - Improve quality in. . . › Able to be defined by Y=f (x 1, x 2, x 3…. . xn) - Possible influencing factors is. . . - They can be controlled by. . . - Or you can make the Y robust to them by… › Has a significant impact. - Is important to the business, organization etc. Six Sigma @ Ericsson | Commercial in confidence | 2011 -03 -24 | Page 34

Design For Six Sigma (IDDOV – the concept) Validate Product & Process Stakeholders Use

Design For Six Sigma (IDDOV – the concept) Validate Product & Process Stakeholders Use Corporate Business Goals and flow down to Design financial goals and Business Case Customers Understand quantify Customers needs and requirements History Evaluate historical external & internal data to find CTQs Identify Define “Critical To Quality” characteristics TG 5 Validate TG 1 Define Design TG 2 Flow-down Customer, Stakeholder, Governmental and History critical to Satisfaction Y´s down to tangible CTQ’s and design X’s Validate product (and process) performance to CTQ’s and customer and stakeholder requirements. Set up appropriate product and process control mechanisms to establish long term quality assurance TG 4 Optimize TG 3 Design Product & Process concept Build concepts and judge them to CTQ’s and X’s. Simulate and explore product robustness to manufacturing and usage variation. Simulate and explore process robustness to product and manufacturing variation. Six Sigma @ Ericsson | Commercial in confidence | 2011 -03 -24 | Page 35 Optimize Product & Process design Run experiments, analyze data and set design and process parameters to optimize for robustness.

IDDOV What should we offer and is it a economical beneficial deal for us?

IDDOV What should we offer and is it a economical beneficial deal for us? What is the market (n * customer) need behind the requirements? Identify What is our previous design track record? Surveys, focus groups, interviews Kano-model Business Case Loss Functions Process Capability Voice of the Customer Voice of the Business Voice of the Process Customer Satisfaction satisfied Process Variation Quality Loss Function We understand what has to be done from a product, process and financial standpoint. Less More Less correct Correct correct Equip. Mgmt. Process map 0, 1 0, 2 0, 3 0, 4 0, 5 0, 6 0, 7 0, 8 0, 9 Six Sigma @ Ericsson | Commercial in confidence | 2011 -03 -24 | Page 36 Customer calls for repair CSR qualifies customers need Order/ Leasing CSR Enters case in CIS Pick-Up & Delivery Customer Service Billing Branch shedules repair Servicer fixes problem CSR verifies customer satisfaction i re Mo delight omitted Must be CSR completes case dissatisfied sb er ett Offerings included

IDDOV Voice of the Customer Define Equip. Mgmt. Order/ Pick-Up &Customer Billing Leasing Delivery

IDDOV Voice of the Customer Define Equip. Mgmt. Order/ Pick-Up &Customer Billing Leasing Delivery Service CSR CSR Branch Servicer Customer CSR qualifies verifies Enters caseshedules fixes calls for completes customer in CIS repair problem repair case need satisfaction Ytot = 85% A: Yield=? defects X 1 B: Yield=? defects X 2 Functions Y 1=? Y 2=? Y 3=? Y 4=? Y 5=? F 6=50 dpmo F 7=150 dpmo S&D=1, 5 S&D=0, 9 Target Yield C: Yield=? defects X 1, 5 Function Y 1…Y 10= 5 D: Yield=? defects X 1 Functions s Y 1=? Y 2=? Y 3=? ? Y 4=? Y 5=99. 993 S F 6= 25 dpmo & F 7=15 dpmo D F 8=90 dpmo = 1 S&D=1, 6 , 5 Voice of the Business Voice of the Process Benchmark Cause & Effect diagram, 7 MT Loss functions, Stakeholder map, CTQ tree, QFD, Q systemization Key specific goals critical to achieve in the design work (CTQ). How, when and who must we assure CTQs trough the design activities? Six Sigma @ Ericsson | Commercial in confidence | 2011 -03 -24 | Page 37 Quotations Accessible sales staff No errors (did understand custiomer Responsivness needs) Shorte r leadtimes Delivery Meets customer needs No updates To site delivery Installation Short assambly time Test trail done same day as site installation Step-10 Correlation Matrix Step-5 Technical Descriptors -"Voice of the Engineer" Step-6 Direction of Improvement Step-1 Customer Requirements Step-4 Step-7 Relationship Matrix Customer Rating of the Step-3 Competition Step-2 Regulatory Customer Requirements Importance Ratings Step - 8 Technical Analysis of Competitor Products Step - 9 Target Values for Technical Descriptors Step-11 Absolute Importance

IDDOV CTQ-scorecard DFSS Scorecard CTQ Requ Sim. P. 1 P. 2 Pre. S PRA

IDDOV CTQ-scorecard DFSS Scorecard CTQ Requ Sim. P. 1 P. 2 Pre. S PRA X tol/ / Y tol/ / Pugh Z dpmo etc. . Montecarlo & statistical simulations Concept Selection Matrix (functions, Lead-times, Yield, Cost etc) DOE FMEA (Design, Process, Supply-chain) Potential Causes O Current Controls Potential S C Failure Effects E C V Motor frame is unstable Operator 1 3 Operator skill/training knowledge Ticket specifies - but coded Noise parameters P-diagrams Actions D R E P T N Recommended Resp. 1 Coding chart to 8 be issued & Darren displayed Wooler by machine 6 Design System Input parameters (x’s) Out-put parameter ( Engineering (design) parameters Taguchi Loss functions Quality Loss Function Process Variation Q systemization Less More Less correct Correct Transfer functions Material Process. Rework Scrap. Total TK (sek)10700 2360 1523 79315376 Yield (fp) 25% SMD RF-TXRF-RXSUB ET - 1 ET - 2 ET - 3 SYST E 1 SYS E 2 Final ETotal 0, 1 0, 2 0, 3 0, 4 0, 5 0, 6 0, 7 Capability analysis Lower Spec Upper Spec Capability analysis Lower Spec Upper Spec Capability analysis 10. 65 10. 75 10. 85 10. 95 11. 05 11. 15 11. 25 11. 35 Short-Term Capability Lower Spec Cp 2. 83 11. 00 10. 9525 %>USL Exp 0. 00 PPM>USL Exp Mean 3. 17 CPU USL 11. 40 11. 0937 Obs 10. 65 10. 75 10. 85 10. 95 11. 05 11. 15 11. 25 11. 35 Mean+3 s CPL L 5360. 00 SL 10. 60 10. 8113 %<LSL Exp PPM<LSL Exp ean-3 s Short-Term Capability 10. 65 10. 75 10. 85 10. 95 11. 05 11. 15 11. 25 11. 35 Upper Spec s. MUSL Cpk 2. 50 k. Targ 0. 12 0. 0471 Obs 0. 00 Obs Cpm 1. 91 n Cp 2. 83 Targ 11. 00 Mean 10. 9525 %>USL Exp PPM>USL Exp 3. 17 Short-Term Capability CPU 11. 40 Mean+3 s 11. 0937 Obs 0. 00 Obs CPL 10. 60 10. 8113 %<LSL Exp PPM<LSL Exp Cp 2. 83 11. 00 10. 9525 %>USL Exp 0. 00 PPM>USL Exp Mean 10. 65 10. 75 10. 85 10. 95 11. 05 11. 15 11. 25 11. 35 3. 17 Cpk 2. 50 k. L 0. 12 s. MTarg 0. 0471 Obs 0. 00 Obs CPU USL 11. 40 11. 0937 Obs Cpm 1. 91 n. SL 5360. 00 M ean-3 s CPL SL 10. 60 10. 8113 %<LSL Exp PPM<LSL Exp Short-Term Capability Cpk 2. 50 k. Lean-3 s 0. 12 0. 0471 Obs 0. 00 Obs s. Mean+3 s Cpm n 5360. 00 Cp Targ 11. 00 10. 9525 %>USL Exp PPM>USL Exp Mean 1. 91 2. 83 10. 65 10. 75 10. 85 10. 95 11. 05 11. 15 11. 25 11. 35 CPU 3. 17 USL 11. 40 Mean+3 s 11. 0937 Obs 0. 00 Obs CPL SL 10. 60 M ean-3 s 10. 8113 %<LSL Exp PPM<LSL Exp Short-Term Capability Cpk 2. 50 k. L 0. 12 s. Targ 0. 0471 Obs 0. 00 Obs Cpm 1. 91 n 5360. 00 Cp 11. 00 Mean 10. 9525 %>USL Exp PPM>USL Exp 2. 83 CPU 3. 17 USL 11. 40 Mean+3 s 11. 0937 Obs 0. 00 Obs ean-3 s CPL 10. 60 SL 10. 8113 %<LSL Exp PPM<LSL Exp 2. 50 Cpk k. L 0. 12 s. M 0. 0471 Obs 0. 00 Obs Cpm n 5360. 00 1. 91 Six Sigma @ Ericsson | Commercial in confidence | 2011 -03 -24 | Page 38 Production tariff (sek) 3000 4200 3000 750 750 Reparation tariff (sek) 525 525 500 500 Material cost (sek) 3500 3000 200 10700 Repair material cost 400 Processtime (min) 4, 0 6, 0 2, 5 4, 6 6, 0 9, 0 7, 0 24, 0 10, 0 35, 0 1: st reparationtime (min) 0, 0 20, 0 5, 0 30, 0 40, 0 50, 0 60, 0 120, 0 60, 0 2: nd reparationtime (min) 20, 0 5, 0 45, 0 60, 0 60, 0 90, 0 60, 0 3: rd reparationtime (min) 20, 0 5, 0 90, 0 60, 0 90, 0 60, 0 4: th reparationtime (min) 0, 0 90, 0 60, 0 90, 0 60, 0 Processtime after rep. 0, 0 6, 0 5, 0 4, 6 6, 0 9, 0 7, 0 24, 0 10, 0 35, 0 Yield 1: st pass (%) 75% 80% 89% 90% 98% 95% 90% 85% 95% 85% 90% Yield 2: nd pass (%) 100% 95% 99% 98% 95% 100% 98% 93% 95% Yield 3: rd pass (%) 100% 95% 97% 98%100% 99% 98% 100% 99% 96% 98% Yield 4: th pass (%) 100% 98% 99%100%100% 99%100% Scrap % 1, 00%2, 00%0, 75%0, 01%1, 00%0, 01% Rejections from later steps (%) 3, 00%15, 00%1, 00%0, 00% 10, 00%0, 00% Processing cost (sek) 1: st 200, 0 420, 0125, 0 57, 5 75, 0 112, 5 87, 5 300, 0125, 0437, 5 2360 Reparation cost (sek) 0, 0 87, 5 59, 9 8, 1 8, 8 38, 5 136, 5 0, 0 45, 2240, 9 88, 6 714 Scrapp cost (sek) 37, 0 76, 8 74, 9 90, 3 1, 2 126, 4 0, 0 1, 3 146, 2 1, 5 557 Proc. cost after repair (sek) 0, 0 334, 1 263, 3 43, 8 1, 7 6, 6 21, 1 0, 0 27, 1 33, 9 77, 6 809 Material cost repair (sek) 135, 0 101, 3 0, 0 236 Total cost 3737 4053 391912177122461236712764 12851, 4142251477115376 Extra processtime (min) Capacity loss due to repair 0, 00 3, 15 2, 14 0, 93 0, 14 0, 53 2, 59 1, 05 2, 17 2, 71 6, 20 0% 34% 26% 27% 3% 8% 22% 13% 8% 21% 15% Statistical tolerancing 12 + 22 + 32 + = 2 Total Part/ syst em 1 Part/ syst em 2 Part/ syst em 3 . . . Sum of all parts

IDDOV DFSS Scorecard CTQ-scorecard Risk Priority Number (RPN) CTQ Requ Sim. P. 1 P.

IDDOV DFSS Scorecard CTQ-scorecard Risk Priority Number (RPN) CTQ Requ Sim. P. 1 P. 2 Pre. S PRA X tol/ / Y tol/ / Z dpmo etc. . Potential Causes O Current Controls Potential S C Failure Effects E C V Motor frame is unstable 1 Operator 3 Operator skill/training knowledge Ticket specifies - but coded Actions D R E P T N Recommended Resp. 6 1 Coding chart to 8 be issued & Darren displayed Wooler by machine SEV * OCC * DET = RPN (3 *1*6 = 18) FMEA Recommended actions and person responsible for implementation. Gauge R&R Error type Poke-Yoke DOE Optimize Harm Hypothesis testing Anova Capability analysis Power & Sample Size Ho Ho Correct Decision Ha Six Sigma @ Ericsson | Commercial in confidence | 2011 -03 -24 | Page 39 Harm Type I Error a-risk Truth Ha Type II Error b-risk Correct Decision Adapted from James Reason’s Managing the Risk of Organizational Accidents

IDDOV CTQ-scorecard DFSS Scorecard CTQ Requ Sim. P. 1 P. 2 Pre. S PRA

IDDOV CTQ-scorecard DFSS Scorecard CTQ Requ Sim. P. 1 P. 2 Pre. S PRA X tol/ / Validate Y tol/ / Z dpmo etc. . Power & Sample size Gauge R&R Design Of Experiments Capability analysis Statistical Process Control Six Sigma @ Ericsson | Commercial in confidence | 2011 -03 -24 | Page 40

IDDOV Chart I Define Design O Identify Customers, Stakeholders & History. Find “Critical To

IDDOV Chart I Define Design O Identify Customers, Stakeholders & History. Find “Critical To Quality” characteristics. Build a product & Process concept. Optimize Product & Process design. Validate Product & Process. • Surveys, VOC • Taguchi Loss functions • Kano-model • Stakeholder map • Business case • 7 QCT • Capability analysis • Regression analysis • QFD • CTQ-tree • Cause & Effect matrix • Taguchi Loss functions • Business case • CTQ scorecard • Benchmarking • PCM (yield matrix) • Capability analysis • Pugh Concept Selection Matrix • Process Mapping • Taguchi Loss Functions • Simulations (Leadtimes, Yield, Cost etc. ) • FMEA (Product, Process, Supplychain) • Fishbone diagram • PCM (yield matrix) • DOE • Gauge R&R • Poka-Yoke • Capability analysis • Anova • P-diagram • Regression analysis • Fault trees • PCM (yield matrix) • DMAIC • DOE • Gauge R&R • SPC • Poka-Yoke • Capability analysis • Anova • P-diagram • Regression analysis • Fault trees • DMAIC • PCM (yield matrix) • Team training & coaching • Team training & coaching dentify Six Sigma @ Ericsson | Commercial in confidence | 2011 -03 -24 | Page 41 ptimize Validate

Design For Six Sigma (IDDOV – the tools) Validate Product & Process Stakeholder map,

Design For Six Sigma (IDDOV – the tools) Validate Product & Process Stakeholder map, Business Case CTQ-tree Customers Surveys, VOC Taguchi Loss functions Kano-model History Identify TG 1 7 QCT, Capability analysis Regression analysis TG 5 Define Design TG 4 Y tol/ / etc. . Find “Critical To Quality” characteristics TG 2 Optimize TG 3 Build a Product & Process concept Pugh Concept Selection Matrix Process mapping Taguchi Loss functions Simulations (Lead-times, Yield, Cost etc) FMEA (Product, Process, Supply-chain) Robust engineering PCM (yield matrix) Six Sigma @ Ericsson | Commercial in confidence | 2011 -03 -24 | Page 42 Anova P-diagram Regression analysis Fault trees DMAIC PCM (yield matrix) Validate CTQ-scorecard CTQ Requ Sim. P. 1 P. 2 Pre. S PRA X tol/ / Z dpmo QFD CTQ-tree Cause& Effect matrix Taguchi Loss functions Business case CTQ-scorecard Benchmarking PCM (yield matrix) Capability analysis DOE Gauge R&R SPC Poke-Yoke Capability analysis Optimize Product & Process design DOE Gauge R&R Poke-Yoke Capability analysis Anova Robust engineering Regression analysis Fault trees PCM (yield matrix) DMAIC