DRIVING QUALITY INTO THE BOTTOM LINE
TL 9000:
Mission Impossible?
Donna Thomas
ASQ 0509
January 17, 2002
DRIVING QUALITY INTO THE BOTTOM LINE
Agenda
•
•
•
•
What is TL 9000?
What is the market forecast?
What is the industry’s response?
What are some case studies adopting
TL9000?
• What is the future of TL 9000?
• What does this mean to you?
DRIVING QUALITY INTO THE BOTTOM LINE
Importance of Quality
Reliability
• Dial Tone
• Email
• Web
Uptime vs. Downtime
99.999% = 5 min./yr.
99.8% = 18 hrs./yr.
99.0% = 88 hrs./yr.
Cost
• Measured annual cost of poor
quality is $15B worldwide for telecom industry
Time to Market
• Features
• Voice and Data Convergence
• Higher Bandwidth
DRIVING QUALITY INTO THE BOTTOM LINE
What is TL 9000?
• Uses ISO 9001:2000 as the baseline
• Adds in best practices
• Includes sector-specific requirements to
meet the needs of the telecom industry
- Telcordia and other ISO standards are
basis for additional requirements
• Establishes industry-wide measurements
DRIVING QUALITY INTO THE BOTTOM LINE
Why a Specific Telecom Standard?
• Need for consistent application of existing
industry requirements to suppliers by customers
• Need to consolidate various quality system
requirements used within the industry
• Provides global harmonization
• Standardizes measurables/measurements
• Creates alignment in 1st, 2nd, 3rd party auditing
DRIVING QUALITY INTO THE BOTTOM LINE
Sector-Specific Quality Systems
Automotive
QS-9000 [1994]
ISO/TS 16949 [1999]
Aerospace
AS9000 [1996]
AS9100
Telecom
TL 9000 [1999]
Benefits from other industries’ experiences
and applies best practices to the
telecom sector.
DRIVING QUALITY INTO THE BOTTOM LINE
TL 9000 Source Documents
TL 9000
ISO
9001
Intl Standard:
Quality
Systems
model for QA
in design,
development,
production,
installation,
and service
GR 1202
GR 1252
Bellcore
Generic
Reqmt
Bellcore
Quality
System
Generic
Reqmts
for HW
TR 179
Bellcore
Quality
System
Generic
Reqts for
SW
ISO
12207
Intl Std
Info for
SW Life
Cycle
Process
QuEST
Quality
Excellence
for
Suppliers
of
Telecomm
unications
SEI
CMM
ISO
9000-3
SW Eng
Institute
Maturity
Model
Intl Std:
Developmt,
supply,
installation,
and SW
maintenance
DRIVING QUALITY INTO THE BOTTOM LINE
TL 9000 Value Proposition
Service
Providers
Consistent,
Comparable
Supplier
Report
Cards
Input
During
Product
Design
Informed
Buying
Improved
Product
Performance
Requires
Less
Resources
More
Efficient
Internal
Operations
High
Customer
Satisfaction
Improved
Quality of
Service
Increase
Speed to
Contractual
Compliance
Reduced
Overhead
Cost
Reliable,
Repeatable,
Processes
Common
Language
Suppliers
Supplier
Audit
Ready
Benchmarking
DRIVING QUALITY INTO THE BOTTOM LINE
TL 9000 Development History
• Initiated by a group of service providers in
the Spring of 1996
– Bell Atlantic, BellSouth, SBC Companies, Pacific
Bell & Southwestern Bell
• Quality Excellence for Suppliers of
Telecommunications (QuEST) Forum formed
– Began work in October 1997
– Aimed at standardization of quality
requirements within the telecommunications
service provider (TSP) supply chain
DRIVING QUALITY INTO THE BOTTOM LINE
TL 9000 Development History
• Book 1 Released – 1999
• Book 2 Released – 2000
• January 25, 2000
– Pilot participants that had successfully
completed their registration audits were
announced
– Registrars that had satisfied the
requirements for accreditation were
announced
cont
DRIVING QUALITY INTO THE BOTTOM LINE
About QuEST Forum
• Administrator
– TL9000 standard, registrars, best practices
American Society for Quality (ASQ)
– Metric collection for industry benchmarking
University of Texas at Dallas (UTD)
• Currently 165+ companies participate globally
with representation from
– TSPs
– Tier 1 and 2 suppliers
• www.QuESTForum.org
DRIVING QUALITY INTO THE BOTTOM LINE
Current Situation
• 161+ registrations have become TL 9000
registered [source: www.worldpreferred.com]
• 29+ registrars are certified to give
registration certificates
• SBC was the first company to gain
registration in US
• Bookham Technologies was the first company
in Europe to gain certification
• V3.0 based on ISO9000:2000 (March 2001)
DRIVING QUALITY INTO THE BOTTOM LINE
Adoption Forecast
• 1999: 11 companies piloted standard &
sought registration
• 2000: 49 registrations
• 2001: 161 registrations; 263 organizations
reporting measurements [780% growth]
• 2002 (Year End): 2028 companies will seek
registration
• 2003: Critical Mass
DRIVING QUALITY INTO THE BOTTOM LINE
Business Impact
• Companies are adopting standard &
making transition
– SBC, BellCanada, BellSouth, Verizon, Nortel
& Alcatel
• Contract language changing to induce
compliance by suppliers
– 30 to 45 days to develop transition plan
– 6 to 12 months to reach compliance
• Applies to all hardware, software, and
services
DRIVING QUALITY INTO THE BOTTOM LINE
Telecom Supply Chain
Customer
Direct
Indirect
Supplier/
Customer
Direct
Supplier
DRIVING QUALITY INTO THE BOTTOM LINE
Telecom Supply Chain
Supply Chain Relationships
Service Provider
(Bell South, Verizon,
SBC, AT&T etc)
Supplies to
Direct relationship
Supplier (Lucent,
Nortel, Alcatel,
Fujitsu, etc)
Supplier (Lucent,
Nortel, Alcatel
Fujitsu, etc)
Supplies to
Direct relationship
Supplier (Celestica,
Lucent, Corning,
CTDI, Flextronics,
etc)
Indirect relationship
Indirect relationship
Direct relationship
Direct relationship
Supplies to
Supplies to
Supplier (CTDI,
Agilent,
Commodities,
Components)
Celestica, Lucent,
Corning, Motorola,
Flextronics, etc)
Scenario 1
Scenario 2
DRIVING QUALITY INTO THE BOTTOM LINE
TL 9000 Candidates
• Approximately 200 TSPs worldwide
• Approximately 11,000 suppliers
nationwide
• US telecom market is $750B
• Annual purchases from suppliers $250B
DRIVING QUALITY INTO THE BOTTOM LINE
TL 9000 Model
International Standard ISO 9001
Book 1
Common TL 9000 Requirements
Hardware
Software
Specific
Specific
Requirements Requirements
Book 2
Services
Specific
Requirements
Common TL 9000 Metrics
Hardware
Specific
Metrics
Software
Specific
Metrics
Services
Specific
Metrics
TL
9000
DRIVING QUALITY INTO THE BOTTOM LINE
TL 9000 Applicability
• Switching
– Circuits
• Signaling
– SCP/STP/HLR
• Transmission
– Cabling
• Copper
• Fiber Optics
• Twisted Pair
– Wireless
• Common Systems
– Billing, Acct’g, Eng.
• Operations &
Maintenance
– OSS
– E911
– Test Systems
• Customer Premises
– IVR, Messaging Platforms
• Services
– Call Centers
– E-Procurement
• Components &
Subassemblies
DRIVING QUALITY INTO THE BOTTOM LINE
Key Additions to TL 9000
• Use of the product life-cycle
• Expands upon customer satisfaction and continuous
improvement requirements
• Emphasis on use of specific measurements to drive
action
– Problem reporting
– Failure analysis
– Corrective action
• Increased focus on proper/robust planning
–
–
–
–
Quality planning
Project planning
Configuration planning
Product planning
DRIVING QUALITY INTO THE BOTTOM LINE
Key Additions to TL 9000
cont
• Requirements for customer-supplier relationship
and communications
• Measurements for field performance
–
–
–
–
Defined
Tracked
Reported
Action to correct and improve
Note: Quality management system is now referred
to as a Business management system
DRIVING QUALITY INTO THE BOTTOM LINE
Why Measurements?
•
•
•
•
•
Forces accountability
Provides a common language
Gives a consistent measure across industry
Provides a means for industry comparison
Develops management information
– Provides objective evidence
– Identifies improvement opportunities
– Enables effective use of resources
• Provides benchmarking opportunities
DRIVING QUALITY INTO THE BOTTOM LINE
Impact on Your Company
• Provides measurements to use
• Every project has detailed plans
• Generates an avenue to get customers and
subcontractors involved
• Protects current client base
• Insurance policy for global competition &
growth
DRIVING QUALITY INTO THE BOTTOM LINE
Results of New Trend
Despite the economic downturn…
• Alliance Systems
–
–
–
–
99.999% reliability from 84%
< 2.5% return rate from 24%
100% customer satisfaction
High revenue growth (yielded $54M, 69 person co.)
• KARLEE
– Similar results, plus 2000 MBQA winner
– Was able to pay each employee a bonus > 2 months
salary last Christmas
DRIVING QUALITY INTO THE BOTTOM LINE
Future of TL 9000
• TL 9000:2001 published March 2001
– Incorporates the new ISO9000:2000 language
– “Adds” onto the concepts as they are designed
and published in the new ISO9000:2000 standard
• Mastery of content and swift movement is
required to successfully overcome this barrier
• Critical mass…end of 2003
- Inducement of contracting mechanisms
- Due diligence process for potential investment
- Peer pressure
DRIVING QUALITY INTO THE BOTTOM LINE
‘Net-Net’ to you….
• This is an excellent opportunity to build your
skill set…..seek TL9000 auditing credentials.
• Quality is not just quality….it is the way
business is NOW being conducted….internal
sale is easier.
• In the face of this economic downturn, this
will be the most highly valued market
discriminator……making you the most
important asset to your company & the
industry.
DRIVING QUALITY INTO THE BOTTOM LINE
Food for Thought…
“Fifteen years ago
companies competed
on price.
Now it’s quality.”
Robert Hayes
Co-Author of Restoring Our Competitive Edge
DRIVING QUALITY INTO THE BOTTOM LINE
About RoxTel Corporation
RoxTel is a full service TL 9000
implementation provider offering quality
and business management products,
consulting and training to the
telecom industry.
Donna Thomas, president & CEO of
RoxTel, has over 18 years of IT/telecom
experience in systems engineering, test,
development, quality, leadership, and
management, with ISO9000 and TL 9000
auditing credentials. She also holds
Masters degrees in Computer Science and
MIS as well as an MBA.
RoxTel Corporation
203 W. Patrick Street, Suite B
Frederick, MD 21701
301.831.8833
[email protected]
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TL9000: Mission Impossible?