PRO-ENBIS: G6RT-CT /6/20021 Siemens Electric Heating, Trondheim Siemens Electric Heating AS Siemens Electric Heating AS Bratsbergvegan 5 N-7493 TRONDHEIM Norway 21/6/2002 Tel No ENBIS industrial visit

PRO-ENBIS: G6RT-CT /6/20022 Siemens Electric Heating, Trondheim E: Introduction of the team - 5 mins E: Introduction to ENBIS - 10 mins S: Introduction to Siemens Trondheim - 15 mins E: SQM survey, Design of Experiments, 6-sigma - 45 mins S: Topics to be covered in visit - 15 mins On Site Visit - 45 mins Discussions on opportunities - 30 mins Conclusion - 15 mins Proposed agenda (S - Siemens, E - ENBIS team)

PRO-ENBIS: G6RT-CT /6/20023 Siemens Electric Heating, Trondheim Jon Tyssedal, Professor of Statistics, NTNU Expert in Statistics Maria Fernanda Ramalhoto, Professor of Statistics,Instituto Superior Tecnico, Lisbon Expert in Reliability and Quality Improvement Ron Kenett, International Management Consultant, CEO KPA Ltd. Expert in Industrial Statistics and Quality Management ENBIS team

PRO-ENBIS: G6RT-CT /6/20024 Siemens Electric Heating, Trondheim Jon Tyssedal, Professor of Statistics, NTNU Expert in Statistics Maria Fernanda Ramalhoto, Professor of Statistics,Instituto Superior Tecnico, Lisbon Expert in Reliability and Quality Improvement Ron Kenett, International Management Consultant, CEO KPA Ltd. Expert in Industrial Statistics and Quality Management ENBIS team

PRO-ENBIS: G6RT-CT /6/20025 Siemens Electric Heating, Trondheim Jon Tyssedal, Professor of Statistics, NTNU Expert in Statistics Maria Fernanda Ramalhoto, Professor of Statistics,Instituto Superior Tecnico, Lisbon Expert in Reliability and Quality Improvement Ron Kenett, International Management Consultant, CEO KPA Ltd. Expert in Industrial Statistics and Quality Management ENBIS team

PRO-ENBIS: G6RT-CT /6/20026 Siemens Electric Heating, Trondheim Industrial Statistics Multivariate Quality Control Six Sigma Internet Surveys Software Process Quality ManagementDashboards SPC Design of Experiments Organizationaleffectiveness 25 yrs of experience, 4 books) Ron Kenett (25 yrs of experience, 4 books)

PRO-ENBIS: G6RT-CT /6/20027 Siemens Electric Heating, Trondheim ENBIS European Network for Business and Industrial Statistics Introduction to ENBIS

PRO-ENBIS: G6RT-CT /6/20028 Siemens Electric Heating, Trondheim ENBIS Mission - Foster and facilitate the application and understanding of statistical methods to the benefit of European business and industry - Provide a forum for the dynamic exchange of ideas and facilitate networking among statistical practitioners - Nurture interactions and professional development of statistical practitioners regionally and internationally.

PRO-ENBIS: G6RT-CT /6/20029 Siemens Electric Heating, Trondheim - To promote the widespread use of sound science driven, applied statistical methods in European business and industry, - That membership consists primarily of statistical practitioners from business and industry, - To emphasize multidisciplinary problem solving involving statistics, - To facilitate the rapid transfer of statistical methods and related technologies to and from business and industry ENBIS Vision

PRO-ENBIS: G6RT-CT /6/ Siemens Electric Heating, Trondheim - To link academic teaching and research in statistics with industrial and business practice, - To facilitate and sponsor continuing professional development, - To keep its membership up to date in the field of statistics and related technologies, - To seek collaborative agreements with related organizations. - ENBIS is a web based society ENBIS Vision – continued

PRO-ENBIS: G6RT-CT /6/ Siemens Electric Heating, Trondheim During the first International Symposium on Industrial Statistics, some 20 statisticians and practitioners agreed to push forward a European society for industrial statistics. August 21, 1999, Linköping, Sweden Meeting of the provisional executive committee. The name ENBIS was chosen for the new network. Febr , 2000, Eindhoven, NL More than 80 persons participated in the founding conference. December 11, 2000, Amsterdam, NL ENBIS History

PRO-ENBIS: G6RT-CT /6/ Siemens Electric Heating, Trondheim -General assembly -Council -Executive committee -Permanent office (Amsterdam) Administration ENBIS Organization

PRO-ENBIS: G6RT-CT /6/ Siemens Electric Heating, Trondheim -Design of experiments -Reliability and safety -Data mining / warehousing -General statistical modelling Working groups -Process modelling and control -Quality improvement -Statistical consultancy -bENBIS (Belgium) -nENBIS (Netherlands) -iENBIS (Israel) Local networks ENBIS Organization

PRO-ENBIS: G6RT-CT /6/ Siemens Electric Heating, Trondheim -No membership fee (for the time being) -560 members (May, 2002) Members -500 Euros per annum -7 Corporate members (May, 2002) Corporate Members ENBIS Organization

PRO-ENBIS: G6RT-CT /6/ Siemens Electric Heating, Trondheim ENBIS Membership benefits ENBIS offers its members: -Network facilities -Conferences -Courses -Thematic network Pro-ENBIS

PRO-ENBIS: G6RT-CT /6/ Siemens Electric Heating, Trondheim ENBIS Networking facilities The website offers: -ENBIS News -General announcements -Event lists -Links to relevant websites -Information on other members -Forum facilities

PRO-ENBIS: G6RT-CT /6/ Siemens Electric Heating, Trondheim

PRO-ENBIS: G6RT-CT /6/ Siemens Electric Heating, Trondheim Founding conference 80 participants December 11, 2000, Amsterdam, NL First Annual Meeting on Business and Industrial Statistics 101 participants 43 submitted abstracts September 17-18, 2001, Oslo, Norway Second Annual Meeting on Business and Industrial Statistics 105 submitted abstracts September 23-24, 2002, Rimini, Italy ENBIS Conferences

PRO-ENBIS: G6RT-CT /6/ Siemens Electric Heating, Trondheim Pro-ENBIS Pro-ENBIS is a thematic network of organisations contracted for three years with the European Commission. Its mission is “to promote the widespread use of sound science driven, applied statistical methods in European business and industry.” Pro-ENBIS was granted a budget from the EC of about Euros.

PRO-ENBIS: G6RT-CT /6/ Siemens Electric Heating, Trondheim Co-ordinator: University of Newcastle upon Tyne (UK). Organisations from all over Europe, not just the EC. industrial visits Funding to achieve specific disemination outcomes, e.g., organising workshops, seminars, industrial visits and publishing case-study based papers. Pro-ENBIS

PRO-ENBIS: G6RT-CT /6/ Siemens Electric Heating, Trondheim Objectives of Industrial Visits -Disseminate Statistical Best Practices in Europe -Foster new research collboration -“Listen to the customers”:  Learn from industry  indifies needs of industry

PRO-ENBIS: G6RT-CT /6/ Siemens Electric Heating, Trondheim E: Introduction of the team - 5 mins E: Introduction to ENBIS - 10 mins S: Introduction to Siemens Trondheim - 15 mins E: SQM survey, Design of Experiments, 6-sigma - 45 mins S: Topics to be covered in visit - 15 mins On Site Visit - 45 mins Discussions on opportunities - 30 mins Conclusion - 15 mins Proposed agenda (S - Siemens, E - ENBIS team)

PRO-ENBIS: G6RT-CT /6/ Siemens Electric Heating, Trondheim Reliability, Safety and Quality Improvement u Reliability is Quality over Time. u Maintenance is a Reliability Function. u Therefore “Reliability culture” and “Maintenance Culture” clearly should be part of an “Extended Quality Culture”. SQM Survey

PRO-ENBIS: G6RT-CT /6/ Siemens Electric Heating, Trondheim Workshops, Round Tables u Claims from industry SQM Survey

PRO-ENBIS: G6RT-CT /6/ Siemens Electric Heating, Trondheim ESREL’2001 Round Table u Industry: To find consultants is easy. They advertise. To find academics is not easy. The industry and the governmental institutions do not know what academics are doing. SQM Survey

PRO-ENBIS: G6RT-CT /6/ Siemens Electric Heating, Trondheim ESREL’2001 Round Table u Industry: Do not have the time to read academic journals. The papers which shall be relevant are usually published in too many different journals. Even the multinational company is not able to follow what is going on in the academic world. SQM Survey

PRO-ENBIS: G6RT-CT /6/ Siemens Electric Heating, Trondheim ESREL’2001 Round Table u Academics: We model such and the reliability is 99%. u Practitioners: The reliability 99% can be pushed to 99.8% if a certain specific change is made, or if doing such the reliability drops to 98% and the cost will be, for instance, cut to a 1/2. What matters is how to trigger on the design to improve it. SQM Survey

PRO-ENBIS: G6RT-CT /6/ Siemens Electric Heating, Trondheim A Survey on Reliability and Quality Improvement u The following questionnaire distributed in print (7 pages) for discussion and future collaboration. Material of the WP4 first Industrial Visit-Nestle- very briefly mentioned and made available at request. SQM Survey

PRO-ENBIS: G6RT-CT /6/ Siemens Electric Heating, Trondheim Questionnaire on SQM u Company Profile: Size; Individuals directly involved in SQM activities; Industry nature; Benchmarking activities. u 1. Use of Reliability Techniques. u 2. Use of Maintenance Techniques SQM Survey

PRO-ENBIS: G6RT-CT /6/ Siemens Electric Heating, Trondheim Questionnaire (cont.) u 3. Use of Control Charts Techniques. u 4. Use of Acceptance Sampling Plans. u 5. Use of Economic Design Techniques. u 6. Use of Cost-Benefit Analysis. SQM Survey

PRO-ENBIS: G6RT-CT /6/ Siemens Electric Heating, Trondheim Questionnaire (cont.) u 7. Use of Inventory Control/Supply Chain Techniques. u 8. Use of Data Quality Control Techniques. u 9. Use of Periodicals. SQM Survey

PRO-ENBIS: G6RT-CT /6/ Siemens Electric Heating, Trondheim Questionnaire (cont.) u 10. Problems in Practice: –List of most relevant problems reported by industry and business. –List of identified problems to close the gap between industry/business and academia. SQM Survey

PRO-ENBIS: G6RT-CT /6/ Siemens Electric Heating, Trondheim ManagementApproachManagementApproachStatisticalMethodStatisticalMethod Quality by Design Designed Experiments and Reliability Process Control & Process Improvement Control Charts Inspection Sampling Plans Fire Fighting Basic Statistical Thinking

PRO-ENBIS: G6RT-CT /6/ Siemens Electric Heating, Trondheim “At Motorola we use statistical methods daily throughout all of our disciplines to synthesize an abundance of data to derive concrete actions…. How has the use of statistical methods within Motorola Six Sigma initiative, across disciplines, contributed to our growth? Over the past decade we have reduced in-process defects by over 300 fold, which has resulted in a cumulative manufacturing cost savings of over 11 billion dollars”*. Robert W. Galvin Chairman of the Executive Committee Motorola, Inc. *From the forward to MODERN INDUSTRIAL STATISTICS by Kenett and Zacks, Duxbury, 1998 KPA Ron Kenett (KPA Ltd.)

PRO-ENBIS: G6RT-CT /6/ Siemens Electric Heating, Trondheim Six Sigma project roadmap DEFINE MEASURE ANALYZE IMPROVE CONTROL KPA Ron Kenett (KPA Ltd.) Technical Skills Soft Skills Statisticians Industrial Engineers Master Black Belts Black Belts Quality Improvement Facilitators BB MBB

PRO-ENBIS: G6RT-CT /6/ Siemens Electric Heating, Trondheim R&DEngr.ProductionPurchasing Cust. Support IdeaProduct Reqts. Spec. Product and Process Design Industrial Statistics Quality Management Industrial Statistics Quality Management Market Researc h Product Evaluatio n Satisfaction Surveys Process Improvements KPA Ron Kenett (KPA Ltd.)

PRO-ENBIS: G6RT-CT /6/ Siemens Electric Heating, Trondheim "A Test for Detecting Outlying Cells in the Multinomial Distribution and Two-Way Contingency Tables", R. Kenett and C. Fuchs, Journal of the American Statistical Association, 75, pp , "Some Experiences Teaching Factorial Designs in Introductory Statistics Courses", R. Kenett and D. Steinberg), Journal of Applied Statistics, 14, pp , "Two Methods for Comparing Pareto Charts", R. Kenett, Journal of Quality Technology, 23, pp , "Going Beyond Main-Effect Plots", R. Kenett and B. Vogel, Quality Progress, pp , February "Making Sense Out of Two Pareto Charts", R. Kenett, Quality Progress, pp , May Modern Industrial Statistics: Design and Control of Quality and Reliability, R. Kenett and S. Zacks, Duxbury Press, San Francisco, References

PRO-ENBIS: G6RT-CT /6/ Siemens Electric Heating, Trondheim My Our website: KPA Ron Kenett (KPA Ltd.)

PRO-ENBIS: G6RT-CT /6/ Siemens Electric Heating, Trondheim Pro-Enbis Acknowledgement All joint authors - presenters - are members of: Pro-Enbis and ENBIS. This presentation is supported by Pro-Enbis a Thematic Network funded under the ‘Growth’ programme of the European Commission’s 5th Framework research programme - contract number G6RT-CT