Six Sigma, Our Journey

CP Lee
Vice President of Human Resources
Asia Pacific region
Motorola Inc.

Six Sigma Conference 2008

Kuala Lumpur
Our Heritage
• The game changing invention: Six Sigma

the area P under the standard normal probability curve

Defects Reduction

DEFECT T RACKING AND REDUCT ION Series1

Goal Line
Defects Per Million Opportunities

100,000
66,810

10,000
6,210

1,000
DPMO

233
100

10
3.4
1

31 42 35 6
4

Sigma
Quality Goal Setting

Quality of ABC GOAL

Series1
10X Improvement Every 2 Years

100,000
66,810 or 3.00 sigma

10,000
6,810 or 3.97 sigma

1,000
681 or 4.70 sigma
DPMO

100
68 or 5.34 sigma

10
7 or 5.85 sigma

1
1988
1 1990
2 1992
3 1994
4 1996
5
Time (Years)
Motorola’s Quality Roadmap

Execute The Apply The

Focus on The Deploy The
Right Right Quality
Right Quality Right Quality
Improvement Methods &
Targets Team
Projects Systems

+
Establish A Culture Where Quality is Priority #1
How Do The Pieces Fit Together?
Execute The Apply The
Focus on The Deploy The
Right Right Quality
Right Quality Right Quality
Improvement Methods &
Targets Team
Projects Systems

Customer Business Specific Quality

Six Initiatives Tools
Advocacy
Sigma
Belts Strict Project Quality
Quality
Governance Systems
Dashboards Quality
IQ Quality
Quality C D
C D O
O VV
Frameworks Playbook

Establish A Culture Where Quality is Priority #1

T3 T1 SLT Vital MIP Quality

T2 Governance Signs Goals
Quality in Human Resources
• AP HR Quality Council
• Internal Clients Surveys
• Quality Vital Signs 3600
• Certifications
• Clients Driven DSS Projects
• Suppliers Quality
• Quality Management System
Strategic Planning
Corporate Priorities “Executing Strategy”
Business Priorities How we know what matters most?
Market and Current Trends
2008 Priorities Greg’s Goals
2006 Human Resource Goals – Dashboard
HRSLT Goals HR - McLean
HR Goal Owner Major Metrics Q1 Q2 Q3 Q4 2006 Global Human Resource Scorecard
Drive the quality of staffing Speed of Hire ISC top six HR Focus Areas Activities Measurement
solutions to result in significant Skelchy, M.
priority list

improvement in the user experience Hiring Manager Satisfaction

Deep Supplier Talent pipeline 1. Build deep meaningful UR program with 3 US 1.Commit to, track, and report quarterly relationship-building efforts at each target school- Roshny a)
of candidates and hiring managers New Hire Satisfaction Partnerships and University SC universities Interns: 70% returning intern offer acceptance 60% new intern offer acceptance
relations 100% interns sourced from UR Tier 1 or SC target schools, b) Direct place: fill at least 5 direct place positions
pipeline through target school/ pipeline efforts, c) Conversions: 70% offer acceptance intern to FT, 50% diversity for
all interns/ all direct place hires
programs
Provide relevant, consistent, timely
information that facilitates senior Theros, C. Data Warehouse Quality 2. Identify and build relationships with 3
2. Develop site-specific plan to engage international universities in talent pipeline efforts
every region covered. Hold kickoff meetings with schools with identified local team members
level business decisions International SC school programs.
and exec sponsors. (Q1/Q2) - Roshny

3. Ensure there is a plan to convert 50% of top talent interns to FT at each strategic site. Roshny
3. Standardize intern management process
regionally to insure better conversion to FT.
4. a) 20 BLDP/ SCLP rotational opportunities, at least one in each strategic site. b) Final
Aggressively develop, deploy and

connect critical talent pools to drive
growth
Improve the organizational health of
HR, enhancing its ability to function
effectively, grow and develop
How we talk
Dassatti, C. Director Development Contingent
placement offers to at least 4 graduating BLDPs Q2. c) Attract at least 5 BLDPs to rotate
workforce
in SC each period (ongoing). d) Achieve 50% diversity goal in new BLDP selection (Q2)- Roshny
Ross, N. University Relations management 4. BLDP sponsorship & rotation/final placement
(Manpower, Inside the supply chain and launch SCLP
5. a) Agreed-upon supplier scorecard with Manpower Q1 b) Each site must
third party
have common agreed-upon service-level agreement and KPIs with their respective
vendors) 5. Apply supplier performance management
contract providers by Q2. Marty/Michael
to our relationships w/Manpower. Site specific
service level agreement, ID secondary source
6. a) Will identify/evaluate the use of a second-source cost-competitive at 4 major site locations by end of
Theros, C. HR Development for all key locations, ensure commonality of Q4 and take action. b) Reduction in overall cost and to Motorola for DL in all strategic sites $ 3M by year end
vendor util. across SC . Marty/Michael/Esther/Patty/Hanjoerg/Corvini
7.Improved service delivery by the ARMS provider as determined by all measures green by year end on
supplier scorecard and KPI’s. Marty/Michael

about our Work?

Vendor Performance 1. No business interruptions against the measures, completed on time with

Meet HR’s fiduciary responsibilities Theros, C. HR Budget no labor issues. Marty/Michael/Patty/Marti/Hanjoerg/Corvini

Data Privacy Mfg & Service Supply Chain 1. Complete the execution of phase one 2. Design new organization, align HC and ensure seamless operations (org design
Optimization Transformation Transformation. Initiate Phase two projects in Q1 to be implemented and staffing of jobs by customer required due dates) transition talent. Drive
next level completed by Dec 2006. Change as per plan. Marty/Michael/Patty/Marti/Hanjoerg/Corvini
2. Implement Triathlon - Rationalization of locations
& IDL usage across the SC. 3.Staff the jobs by customer required due date with appropriate local talent
Marty/Michael/Patty/Marti/Hanjoerg/Corvini/Jim
High-Performance Organization 3. Successfully manage ISC acquisitions, alliances, and/or
OD Skill Infusion divestititure initiatives

Drive high performance framework Pearson, F. PM Process Improvement 4. Europe: align GL&F SC organization and processes to
network structure (work on this)
for Motorola Regional
Engagement Dimensions Alignment:
5. Successfully identify talent to support SC initiatives (Q2)
Global Sales & Service India & Europe (India strategy/Regional alignment /Asia/Regional Control
Towers)

Set the platform for leadership

Bus/Reg Dashboard
Theros, C. Leadership Academy
development System View

MOTOROL A CONFIDE NT IAL PROPRIET ARY HR Qu arte rly Sco ring Inde x 2 006

Report Out Networks & Enterprise Business Health Dashboard

Top 3 Business Issues
1. Integrate the former GEMS & Networks business units
Implications for HR
Providing HR leadership & “technical” support at all organization levels (steering committee,

Quality Plan
into the newly formed Networks & Enterprise business. IMO, functional & business integration teams, etc.), help drive the business goal to “plan &
execute full integration of these two businesses swiftly, thoughtfully, and effectively with minimal
disruption to our businesses and customer commitments”.

2. Efficiently and effectively transition the Automotive Partnering with the Continental AG human resources & business teams, plan & execute a
business to Continental AG prior to the end of Q2. smooth transition of the Motorola Automotive business, with minimal disruption to businesses
operations, customer commitments, and our employees’ lives.

3. Profitable growth of the Networks & Enterprise business. Provide leadership & the tools to drive a 10% reduction in the cost of management (1/06 vs.

A/P HR Quality Council Charter

12/06); pilot manager M-Banding initiative.

CEO and SLT

2006 Functional Quality Plan HR Draft for
Review with
Corp Quality Networks & Enterprise Integration Actual Positive Employee Relations Actual
CUSTOMER SATISFACTION:
2006 Targets Steering team formed 100%
2005 Tier 2 Cases 606
Measure Description
Baseline MISS ACHIEVE EXCEED Weights
Function / Business teams formed 90% Tier 3 Cases 11
HRIS Sat

Compulsory
bottom 2 Box score 16% >15% 11%-15% <11%
Open Door 85
ER Sat
Survey started 12/05 Project plans & timelines established 70%
bottom 2 Box score Rebase in May 06 >7.5% 7.5%-2.5% <2.5%

• Set the direction for Quality in A/P HR in

Turnover 6.4%
RAC Sat
bottom 2 Box score 16% >13% 8%-13% <8%
Automotive Transition Actual

charts
External Charges 3
OPERATIONAL QUALITY DRIVERS
2006 Targets
Signing & announcement 100%
2005
Measure Description
Baseline MISS ACHIEVE EXCEED Weights Global rollout of communications
100%

alignment to global HR Quality goals

80% of HR Pop White belt by meetings with employees
Quality IQ 12/30
0 <70% 70% - 90% >90% Process Health Actual
Employment offers to employees;
50% increase in Prof Belts by On plan
Quality IQ 9 <14 14-22 >22 Benefits transition

Goal updates
12/30 VP Successors ‘
Recruiting and Onboarding
Process Maturity
obtain maturity level of 3.0 by None Level 2 Level 3 Level 4
Staffing 12/30
Cost of Management Actual Cost of Mgmt ‘
Initial target population (E13 – E15)
COST /PRODUCTIVITY 100% New Manager Training ‘
identified (GEMS only)
2005 2006 Targets
Measure Description Assessment methodology & training tools Cost of Labor ‘
Baseline MISS ACHIEVE EXCEED Weights 70%

• Assist in project selection, metrics development

disseminated to integration teams

Project work
Hacket Study
HR Costs HR Costs as a % of Sales Benchmark - .50 .37% .35% .33% Project plans & timelines established 70% ‘ ‘
2005 - .35%

Platform Roadmaps
March 6th, 2006
System View

and belt resource participation

M Road Map – HR Quality

• Review and coach vital few HR projects in A/P 2006 HR : Big Y’s Sponsor: Chris Theros Lead: David Rider Quality Y’s:

How we know
1. Provide relevant, consistent, timely information that
facilitates senior level business decisions.
2. Meet HR's fiduciary responsibilities.
3. Improve the organizational health of HR, enhancing it's
ability to function effectively, grow and develop.
4. Drive the quality of staffing solutions to result in significant • Management of regular work, project work and defects
improvement in the user experience of candidates and
Strategic Intent: 1. Deploy HR quality strategy (4,2)
Design and deploy a system of basic operational disciplines that
allows HR to collectively navigate strategy to detailed execution. 2. Deploy and Confirm a sound systematic
A system that establishes measurement system (4)
• Proper ownership and accountabilities for Quality execution 3. Design and Deploy proper, review
forums(4,2)
• Role clarity within the HR org design 4. Institutionalize DSS approach in HR (4)

• Drive Quality IQ Learning in A/P HR

hiring managers.
• HR lines of service and customer value clarity 5. Mature our critical processes (4,2)
5. Aggressively develop, deploy and connect talent pools to
drive growth. • Targeted performance levels, and quantifiable progress

how we are doing?

6. Drive high performance framework for Motorola. • VOC, clearly evidenced in the design and execution of our work
7. Set the platform for leadership development. • Performance evaluated against industry standards
______________________________Vital X’s / Detail___________________________ Measures–

Work Streams Little y’s

Jan Feb Mar Apr May June July Q3 Q4
• Client Satisfaction by ID Team & Design Create tool Baseline Id focus Baseline
Status Perf Status Perf • 0% unresolved bottom 2 box by
Business / Region - Rider Sponsor Approach & pretest BHR Perf Areas Client Perf
platform

• Review & recommend A/P HR BB candidate

Dashboard • Bus/Regional performance to self
• Org Health Dashboard ID Team & ER Data Focused Pilot Deploy AAR & Fully Deployed
Drive Bus assigned Target‘
Business / Region – Sue W Sponsor Design Phase 2 across HR
Intro’d at Ops Rev Review

HR Quality Strategy - Rider

• HR Governance / Review Bus / Region Bus / Region Bus / Region Bus / Region • Say/Do on decisions / Issue closure
Platform Rev Platform Rev Platform Rev Platform Rev
Forums – Bradtke • Monthly Performance Dashboard

HR Governance & nominations

• Data Integrity/
GDW Quality.

• Robust Measurement
Systems - Rider
Baseline VOC
ID Change Team

Internal
HR Audit
External DSS
Audit
Measure Gaps
ID Controls

Id and work key

focus Areas
Implementation
Improve/Controls

Status Perf
External
HR DSS
Audit
Process
Maturity

Status Perf
• Improve data quality by 15%.
• Achieve level 2 maturity

• Close top 3 prioritized gaps from

DSS Audit

Staffing Quick 4 long Term

Ops Reviews
• HR Quality Plan – Focused • Quantifiable Measures
on Staffing Gaps
Measure Wins Analyze Improve/Control Solutions
Implemented Implemented
(DMAIC Analysis) - Jackson

• Track and report progress to HR Quality goals

Official GB/BB Candidates ‘SHRLT Belt CIC2006
• 80% HR pop white Belt by 12/30
Monthly Monitor to Plan
registered in System plans Initiated
• Quality IQ - Rider • 50% inc in HR professional Belts
Old GB/BB 11/30 Old GB/BB
reg deadline completion deadline

Motorola Confidential Proprietary

Operational Excellence / Quality 1/27/06 Theros / Rider

•Issues Resolution
System View

•Decision Making
•Commitment Status Project Updates Execute Well
•Business Impact HR Quality- Quality Vital Signs
Objective: Drive HR quality competency development and
understanding of Motorola’s total approach to quality
Milestones:
White Belt PHASE 1: Sponsorship
31 Mar - Rey More SHRLT Meeting
February 7, 2006

Quantifiable
•Global Deployment
Goals: 30 April - SHRLT member belt plan
•Provide proper sponsorship, training, mentoring, and support 15 May - Initiate CIC2006 Training

Results
for W hite Belt and professional Belt growth within HR
White Belt PHASE 2: Deployment
Results & Targeted performance levels April – Nov Monthly monitor to plan
• 80% of HR population attain White Belt by 12/31/06
• 50% increase in GB/BB population within HR by 12/31/06 GB / BB
28 Feb – Set up proper HR MBB role in DSS.mot.com
HR GB / BB Plans HR White Belt Plans 30 mar – All official GB / BB candidates registered in

•Cost
80% of HR population
50% increase system
April – Nov Monthly monitor to plan
800
30 30 Mar - Protocol for HR approval documented at
# of Belts

# of Belts

600 communicated
20
400 30 Nov – Grandfather GB comes to close
10
200

•Quality
0 0
Jan

Jun
July
Mar
Feb

Q3
Q4
Apri
May

Nov
Jan

June
July
Mar
Feb

Aug
April

Sept
Oct
May

Dec

Actual Target Actual Target

% of HR completed

Committed Resources:
Sponsor: Owner:
• CIC 2004 – 78%
• CIC 2006 – 0%

BB:
Changes: Problem / Opportunities
• CIC2006 is to be taught by HR VP’s, we need a way to get them
prepared.

Decisions/Actions required:
•Cycle Time
• Each SHRLT personalize plan for their organizations belt development

•Say / Do
Chris Theros Susan Waldman Dave Rider

on schedule behind schedule Key deliverables will be missed

System View
Examples of DSS Projects
• Optimization of Work Shift Patterns
• Electronics Relocation Activation
Process
• Hiring Cycle Time Reduction
• Operation Efficiency of Motorola
University
 D M A I C

Optimization of Work Shift Patterns

Manufacturing Integration and Optimization
Big Y = (From Global Mfg 2006 Scorecard)
Measure = Reduce Labor Costs and improve productivity

DL productivity DL Labor Cost IDL Labor Cost

Small Y’s = Measure = Improvement in Measure = Reduction in Measure = Reduction in
DL Retention DL labor cost IDL labor cost

• Reduce 10% turnover rate of z Redesign Production

X’s =
good performing contractors
- Pay for performance &
position to motivate
contractors morale
- Labor agencies management
to keep same guideline and
practice
- Crease job security for top
performer contractors
• Advanced technical training
for experienced DLs
Shift Pattern
• Talent Retention Program
-Compensation
- Analyze & compare
-Training
cost in different shift
pattern -Career Development
- Convert to cost
effective shift pattern • IDL HC control
- Manage OT complied
law restriction to reach • IDL travel cost efficiency
the most cost saving
• Vender management • Organization layer review
• DL hiring quality
improvement
• Shuttle bus efficiency to
reduce cost
 D M A I C

VOC vs. CCRs

• DL base pay have to be increased by Labor
law requirement in 2006.
• In 3 crews pattern, we need to arrange OT
as most as we can. But sometimes, it will
break the legal restriction. There is a big
potential risk for the company.
• In 4 crews pattern, we have to hire more • Improved conversion cost –
people, but total labor cost will go up. Global Mfg 2006 scorecard
• DL Labor cost increase will bring the high
impact to our conversation cost.
• Some employees are not willing to take • We expect to have a cost
more OT continuously and voluntarily in the effective solution on work
peak season. Supervisors encounter the
difficulty to have the required workforce in shift pattern design.
OT shift.
• No OT in the low demand month, Critical Customer Requirement
employees’ cash income will be decreased.
They will be de-motivating.

Voice of Customer
 D M A I C

DL Labor Cost Saving

Amount Gained by Shift
Pattern Design

Cost Saving US$130.18k

within 7mths only
 Electronics Relocation Activation
Go to Team Charter Process

Make our
Business Case Customer Happy!
(On Time Assignment)
• Motorola’s Expatriate program potentially affects all Motorolans.
ACS’ Global Assignment Center – “the GAC”
GAC – plays a critical role in assisting Motorola
in its end-to-end relocation efforts.

• eRAP
Unfortunately, the entire Expatriate process has proven at times to be both lengthy and
cumbersome. Specifically, a lot of dissatisfaction and inefficiencies have centered
Project
around the time involved in initiating an International Relocation assignment.

• Improving the effectiveness and(DMAIC)

expediency of initiating Relocations can potentially save
Motorola -- on an annual basis -- thousands of unnecessary hard- and soft-dollar costs.
In addition, process improvements may lead to a more favorable perception and
Improve our
acceptance of the program’s efficacy. Reduce Cycle
• Business Process!
For breakthrough improvement, a Six Sigma Team Time and
is needed Waste!
to use the DMAIC
(Amethodology in order
Robust Process Between toACS)
MOT & properly,
thoroughly, and effectively identify
(Reduction and correct
of COPQ)
timing and inefficiency issues with Expatriate’s Initiation Phase.
Phase
“As Is” vs. “To Be” Process Key Differences
0.0 1.0 2.0 3.0 4.0 5.0
Review
Pre-Planning Initiate Assign Estimate Cost Estimate Confirm
Meeting Relocation Consultants Cost and Enter Relocation
Justification
3 5 4 4

9 Assigned Back- 9 Require 9 Delete

Office Expertise Justification Assignment BHR
9 Add Host
Finance Rep

9.0 9 Add Host BHR

6.0 7.0 8.0

Enter View Review Approve ARF

Personal Data Personal Data Assignment Relocation

3 3 6

9 Delete Initiator 9 Delete Assignment

BHR
9 Add Expat Broker
9 Delete Home BHR
9 Add Assignment
Manager’s Manager
9 Add Expat Broker
Example of Customer Projects
Motorola University in China
# Company # GB Projects # BB Projects Annula Savings

1 ATL 4 1,003,475
2 YICT Class I 13 607,476

3 YICT Class II 883,007

4 Daimlerchrysler NEA 11 693,675

5 Supplier GB 9 1,605,451
6 Supplier BB 8 3,120,878
7 China Mobile Kaifong Branch 1 716,588

Total 37 9 7,913,961

On Going Projects:
1 BYD 13
2 YICT 10
3 CAOE 18 4
4 Haier 10
5 Nidec 3
6 Flextronics 3