In the late 1980s, Motorola engineer Bill Smith conducted analyses that would change how the company – and the industry – operated. At the time, the standard manufacturing target for a production mean was three standard deviations from the nearest specification limit, or guideline for which parts are usable. In a normal distribution, 99.7% of parts were within the limits and without defects. However, this left 3,000 parts per million that couldn’t be used – enough to cause substantial waste and costs. Suppliers charged Motorola for this through higher prices per usable part. In fact, Bill could predict with high accuracy how much cost increased as allowable deviation standards for a part decreased. He worked with CEO Bob Galvin to apply this learning to shift how the business operated. Supply chain began getting involved earlier to smooth handoffs, and engineering teams started to own their own budgets to align their incentives with the company. One thing led to another, and Motorola became the initial trial of what would be later known as “Six Sigma.” If you’re interested in learning more about how Motorola pivoted, or how this later informed the “Apple Way,” SOE Senior Engineering Manager and Head of Advanced Hardware Felix Alvarez will be sharing what he experienced first-hand at Motorola and Apple tomorrow, 10/16, at the 2024 Build Better event. #BuildBetter #Hardware #Electronics #SecondOrderEffects
This was such a great panel! Felix Alvarez had a lot to add!
Second Order Effects, Inc.
2moHow did it go, Felix?