2. Sponsored by the GLC with the PMI “Quality Specific Interest Group” and the Detroit Chapter of the American Society of Quality “The History and Future of Quality Management” by Joe De Feo

3. “Dedicated to providing training and consulting services to continuously improve the performance of our clients’ processes, products, people, and profits.”

4. TONIGHT’S AGENDA 1.Get Acquainted – wake up it’s been a long day 2.Review the History of Quality – All 2000 years of it! 3.Look at the Present – Why Six Sigma? Because it was planned that way! 4.Look to the Future – Can it be predicted?

5. Accelerating Technology Pricing Pressures WHY? - FORCES OF CHANGE THE ORGANIZATION Declining Financial Results Competition Globalization Mergers & Acquisitions Sophisticated Consumer Alters the Strategic Plan Macro-economic Events?

6. 4…Make a list of the macroeconomic issues that were impacting society (the customer) in the early 1900’s 4...i.e. moving from the farms to the cities 4… 1900’s MACRO-ECONOMICS

7. 4…Make a list of the macroeconomic issues that were impacting society (the customer) in the early 1950’s 4...i.e. end of the war…boon to consumers 1950’s MACRO-ECONOMICS

8. BREAKTHROUGH IMPROVEMENT Six Sigma Project Methodology Based on Time Tested Principles Time Quality Planning Quality Improvement New Zone of Quality Control Lessons Learned Sporadic Spike Quality Control Cost of Poor Quality Chronic Waste The Juran Trilogy ® Defects 6 Sigma 3 Sigma 1 Sigma Quality Control

9. 4…Make a list of the macroeconomic issues that were impacting society (the customer) in the early 1970’s 4...i.e. competitive quality, alternative products 4… 1970’s MACRO-ECONOMICS

10. Financial Results Time 1970 2001 Product Quality Process Quality EVOLUTION TO GAIN COMPETITIVE ADVANTAGE 1990 Quality Circles C Improvement Teams Total Quality Re-engineering Six Sigma I ISO NQA

11. COMPETITIVE ADVANTAGE ? Financial Time 1900 2000 Results = good 3 sigma 2 sigma 1 sigma Product Quality Process Quality

12. 4…Make a list of the macroeconomic issues that were impacting society (the customer) in the early 1970’s 4...i.e. smart consumers, technology driven 4… 2000’s MACRO-ECONOMICS

13. 4The e-World is driving super fast, effective, defect free processes - e-drugs as commodities! 4Many companies will experience incredible never seen before customer defections. 4Quality levels will not slow down - beyond ppb - consumers demand it, defects not tolerable! 4Lessons Learned: Breakthrough Improvement at faster rates is required - if you do not your competition will! 4Specialists such as Black Belts to drive improvement are a must. TODAY’S MACRO-ECONOMICS

14. DO WE STILL NEED QI ? 4Do you have loyal customers and no dissatisfaction? 4Consistent product & process quality, no rework, no credits and allowances to customers? 4Lead the competition on price and quality in the marketplace? 4Healthy margins? 4Well defined demand planning as demonstrated by successful new product launches? 4Mergers affecting QUALITY?

15. Financial Results Time 1970 2001 Product Quality Information Quality Process Quality EVOLUTION TO GAIN COMPETITIVE ADVANTAGE 1990 Quality Circles C Improvement Teams Total Quality Re-engineering Six Sigma II Six Sigma I ISO NQA

16. WHY SIX SIGMA? Focus on Design -Focus on Costs =Focus on Customer Right Features $ Deficiencies Six Sigma Quality Delighted Customers Customers Good PriceMkt. ShareFast Cycle Time Low Warranty Costs Low Scrap/ Rework Effectiveness and Efficiency Improvement Higher RevenueLower Total Cost Delights Deliverables Resulting in

17. APPLICATION EXPERTS

18. THE FUTURE OF QUALITY MANAGEMENT “We are headed into the next century which will focus on quality… we are leaving one that has been focused on productivity” Dr. Joseph M. Juran Which Century was he referring to?

19. “The problems that exist in the world of today......Cannot be solved by the level of thinking that created them.” Who said this? WHO SAID THAT?

20. 4…What do you think will drive us to higher levels of quality? 4Speed… THE FUTURE OF QUALITY

21. THE FUTURE: MY PREDICITON  The speed imperative  Fewer fences  Making it easy and easier  Bye, bye, red tape  Quality leaders will lead  Do not discount technology – tripling sales!  Gimme’ more  Remember Einstein’s quote

22. COMPETITIVE ADVANTAGE ? Financial Time 1900 2000 Results = good 4 sigma 3 sigma 2 sigma 1 sigma Product Quality Information Quality Process Quality 5-6 sigma…?

23. THE PURSUIT OF RESULTS “GE’s 1999 double-digit growth increases again demonstrate the benefits of the Company’s continuing emphasis on globalization, growth in services, Six Sigma quality and e-business.” “GE Medical systems earnings grew 25% in 1999 with strong global acceptance of its Six Sigma- designed products. In the fourth quarter…” Source: GE Newswire, January 20, 2000

24. NEW TECHNIQUES/TOOLS  PROJECT MANAGEMENT A WAY OF LIFE FOR QUALITY PROFESSIONALS  QUALITY A WAY OF LIFE FOR PROJECT MANAGERS  I/TRIZ TOOLS TO DRIVE INNOVATION  FASTER WAYS TO DIAGNOSE ROOT CAUSE  DIRECTED EVOLUTION !!!

25. YOUR NEXT STEPS Macro-economics drives the customer, the customer drives the macro-economics Do not stop improving because your competitor may surpass you Challenge your processes and set tough goals Stay ahead of the curve keep learning the next tool The End