Cycle time reduction Six-sigma program

1. Metrics for New Product Development: Leveraging the Works of Others

6. But It Wasn’t Enough!

7. Sensormatic’s Journey To New Product Development Success!

9. Inspirations & New Goals

10. TTM Process (structured team-based problem solving) Motorola’s Six-Sigma Program Design for Manufacturability Program Xerox-based Baldridge Award criteria

11. Assessment [Where are we?]

12. Self-Assessment of Development Processes Mechanical CAD Industrial Design Rapid Prototyping Electrical Analysis Technical Communications

16. Selection Criteria [What Do We Tackle First?]

17. Champions Product Delivery Council (PDC ) Continuous Improvement Advisory Council (CIAC)

18. Few Programs Selected

20. Implementation

26. Product Quality Data & Benchmarking We needed measurable and justifiable targets for new product quality

27. TDPU .027 95% 90% 97.3%** Industry Average Target Range -Old Products 100% PLANT FPY* Source: Industry Week 1998 World Class Performance Metrics Best in Class Target Range - New Products Below Industry Average 0 .05 .1 Plant Benchmark *First pass yield **True BIC=99.7% Median BIC= 97.3%

28. 2.6K 14.9K 1K I ndustry Average PPM Out of Box Benchmarks Source: Industry Week 1997 Benchmark Electronic Equipment companies over 1000 employees Best in Class Target Old Products Target New Products

29. 15K 4.2K Industry Average Target - New Products MTBF = 5 Years (18% Annual failure rate) MTBF = 20 Years (5% Annual failure rate) Warranty Benchmarks Monthly PPM Best in Class

30. 95% 90% 97.3% 100% PLANT FPY* Best in Class Target Range - New Products TDPU 0 . 027 .05 .1 1 YEAR Plant Benchmark — New Product Introductions *First pass yield

31. 2600 1K Best In Class PPM Out of Box Targets — New Product Introductions * Target New Products 3939 34% Reduction 6 Months *NPI curve developed by Dell

32. 4.2K 1K PPM Target New Products 5.6K 25% Reduction Warranty Targets — New Product Introductions 6 Months Best In Class

33. New Product DFM …(Preferred fastener set) Number of total fasteners in the system 4000 Number of fasteners active in the system 1200 Number of fasteners in original Preferred Set 74 Date Preferred Set was implemented July 1, 1998 Number of additions to the Set 2 Number of one-time exemptions to the Set 14

34. Development Process Self-Assessment

36. TTM 7-Step Continuous Improvement Process

40. Existing Product Quality

41. New Product DFM Design for Manufacturability

43. Development Cycle Time Average cycle time (calendar days)

44. New Products Released Number of new products released

45. Financial Results Percent of Revenue from New Products

46. Financial Results Percent of Revenue from New Platforms

47. Stock Price Financial Results

48. Financial Results Earnings Per Share

49. What did we learn… What do we still have to do?

51. To go to the next level

56. Our Goal Double Our Revenue In The Next 3 Years!