CLEUSN041_07-20-00s1CONFIDENTIALThisreportissolelyfortheuseofclientpersonnel.Nopartofitmaybecirculated,quoted,orreproducedfordistributionoutsidetheclientorganizationwithoutpriorwrittenapprovalfromMcKinsey&Company.ThismaterialwasusedbyMcKinsey&Companyduringanoralpresentation;itisnotacompleterecordofthediscussion.QualityWavePhase1ProgressReviewJuly27,2000MakingaBreakthroughinQualityPerformanceJ&LSPECIALTYSTEELCLEUSN041_07-20-00s12QuestiontoanswerWhatareweworkingtowards?WheredoesJ&Lstandtoday?Whataretherootcausesofthequalityissue?Wheredowegonexttoaddresstherootcauses?AGENDA-JULY27DesiredendproductfortodayConfirmationofgoalsandprocessGroupunderstandingofcurrentstateofqualityReactionofgroupanddiscussionofrootcausesidentifiedConfirmationofnextstepsandfuturedirectionTime3:00-3:203:20-3:403:40-4:304:30-5:00CLEUSN041_07-20-00s13SPECIFICDESIREDENDPRODUCTSThequalitysystemwavehasbeendrivingtospecificendproductsaroundstreamliningcustomerordertranslation,definingqualityperformancemanagement,anddevelopingproblemsolvingcapabilityAnanalysisandrecommendationstostreamlinethetranslationofcustomerrequirementsintoproductionordersAnanalysisandrecommendationstostreamlinethetranslationofcustomerrequirementsintoproductionordersAperformancemeasurementsystem,includingkeyestablishedindicatorsandmeaningfulprocessesdeployedagainstthemAperformancemeasurementsystem,includingkeyestablishedindicatorsandmeaningfulprocessesdeployedagainstthemAdefinedproblemsolvingsystemthatcontainstheproperskills,resources,andmethodstosolvequalityissuesproactivelyAdefinedproblemsolvingsystemthatcontainstheproperskills,resources,andmethodstosolvequalityissuesproactivelyQualityWaveEndProductsQualityWaveEndProductsCLEUSN041_07-20-00s14FLOWOFQUALITYSYSTEMWAVEDefineandimplementfullqualitysystemCreateandimproveproblemsolvingmechanismsSettargetsandimplementsystemtomakeabnormalitieshighlyapparentUnderstandthecurrentqualitysystemandcustomerneeds1-1/2months•Definekeymeasurementpoints•Pilotimprovedinformationflowsandinteractionsforcustomerordersandqualityfeedback•Establishinitialprocesscontrolstomonitorandgiveearlyalertforqualityissues•Setoverallquantitativetargetsforimprovement•Incorporatevisualmanagementtopromotevisibilityofabnormalitiesandawarenessofcustomerneedsandqualityperformance2months•Definemajorquality-relatedproblems•Performpilotsaroundthecreationofmechanismsfor:–Simpleproblemsolving–Detailedroot-causeproblemsolving–Highlydetailedtechnicalrootcauseproblemsolving(e.g.,DOE)•Tieoutputofpilotsintonewstandardsandprocesscontrols•Establishproblemsolvingtrainingandleaders2-1/2months•Integrateproblemsolving,abnormalitydetection,inspection,andmeasurementsystemsintoanintegratedqualitysystem•Refineandcompletepilotsystem•Defineneworganizationalrolesaroundthequalitysystem•Establishperformancemanagementtodrivethenewsystem•CreateplanstoexpandthesystemacrossthecompanyTheinitialphase,runningfromJunethroughearlyJuly,focusedongainingadetailedunderstandingofcurrentsystems1month•Defineneedsandoverallqualityaspiration•Defineinformationflows•Definecurrentqualitysystems•Understandcurrentqualityperformance•Understandcurrentinteractionsbetweengroupsandfunctions•Gaindetailedunderstandingofproblemsrelatedtocurrentsystems•IdentifyimprovementopportunitiesandfuturestateflowsCLEUSN041_07-20-00s15THEQUALITYMANAGEMENTSYSTEMStabilizet...
