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Conference 7.286::digital

Title:The Digital way of working
Moderator:QUARK::LIONELON
Created:Fri Feb 14 1986
Last Modified:Fri Jun 06 1997
Last Successful Update:Fri Jun 06 1997
Number of topics:5321
Total number of notes:139771

1225.0. "Letter to Jack Smith, add-on to Kinzelman memo" by RANGER::JCAMPBELL () Thu Oct 11 1990 17:30

						From: Jon Campbell
						Dept: PCSG
						Mail: LJO2/I4
						Enet: RANGER::JCAMPBELL
						DTN: 226-2318
						Date: 10-Oct-1990

To: Jack Smith

Subject: DVN Broadcast and Paul Kinzelman memo


Dear Jack,

    I would like to comment on your DVN broadcast, and follow up
and add to the memo sent to you by Paul Kinzelman.

    When I heard about the upcoming DVN broadcast, I was expecting one of two
things: either a major doom-and-gloom announcement (from the rumor mill) or an
announcement that we, as a Corporation, were going to turn ourselves
around in difficult economic times by a major change in focus in how
we manage the Corporation.

    I was greatly relieved that the former was not to be (at least for
the moment). However, I cannot say that my anxiety about the viability
of this Corporation was dispelled. We face an incredible challenge -
surviving and growing (financially, not in people) in an economy that
is currently in decline.

    During the last four weeks I have been attending courses taught by
our Engineering Quality Technology group in ZK. The message I heard
in those courses - some of which comes from OUR customers - is this: we WILL
NOT survive unless we become a world-class manufacturer of hardware
and software, AND WE ARE NOT THERE NOW.

    Right now we have no measurement method to figure out how we are
doing as a Corporation other than how much "iron" we "pump". It used to
be that we didn't have to even do much of a selling job to "pump" a huge
amount of "iron". We put software on it merely so we could "pump more
iron". It was fairly low quality, and our customers forgave us for it.
(In the heyday of TOPS-10 and TOPS-20, we even gave out the sources so our
customers could figure out bug-fixes for us!). And many of our sales people
could spend most of their time taking orders from our "installed base".
(Ask the majority of our sales people today how many of them have been
at sites which currently have no DEC equipment yet...)

    Those days are gone forever. There are hardware companies that are
manufacturing computers that have mean-time-to-failure of years, AND
SOFTWARE TO MATCH IT. Computers that don't need a 30-volume set to
operate. Computers that run thousands of applications, and thousands
of applications that are easy to use and BUG-FREE. True, they are
not as "robust" as VMS (in terms of integration), and the error messages
may be a little on the cryptic side. But our sales people can no longer
be order-takers, and we - the engineers within Digital - can no longer
produce buggy software or unreliable hardware.

    What, you say? Buggy software? Unreliable hardware? Do we really
do this? The answer is: yes, for 1990 our software is buggy and our
hardware is unreliable. Just follow the reports of DOA computers and
disks for a measure of how we are doing for hardware. How often does
Field Service get calls? (And instead of trying to solve the manufacturing
problems that cause the failures, we set the price of Field Service
so we can MAKE MONEY FROM OUR FAILURES!!!).

    And for our software?
Just ask anyone in the Customer Support Centers - Atlanta, Colorado
Springs, Valbonne, anywhere in the world. Ask them for the RAW NUMBERS
of customer calls. Then ask them for the number of SPRs. And, finally,
ask them how many calls filter through to the engineers in Massachusetts.
The "caseload" of problem reports is ENORMOUS, and it is GROWING.
As the installed base grows to many hundreds of thousands of machines,
our "problem caseload" (some people call it the "backlog") is quickly
getting out of hand, as we hire and train more and more "field specialists"
to put the fires out. There is NO ONE figuring out WHY the problems
got there in the first place. And, like for Field Service, we MAKE MONEY
ON OUR FAILURES by charging our customers money for support contracts
so that we can have an army of support specialists!!!

    The challenge of the '90s for Digital is for us to become a
world-class contender in the quality of our products. Reducing our
time-to-market - without sacrificing quality or functionality - by
a factor of THREE or FOUR. Producing BUG-FREE applications. Producing
computer equipment that DOES NOT FAIL, or at least has a mean-time-to-failure,
including its operating system, measured in years. (Is it any wonder that
Digital lost a big contract in Australia a couple of years back to Fujitsu:
we offered 99% uptime; Fujitsu guaranteed a MTBF of a year and a half, and
had statistics on their OS to prove it. And they weren't selling a
fault-tolerant system - just their run-of-the-mill lineup!)

    That is how the Japanese automobile manufacturers overtook the
American automotive industry in a period of sales decline. That is
how Komatsu and others took over the worldwide construction equipment
industry. Not because they have better salesmen (which they probably do),
not so much because their stuff is cheaper (which it is, but primarily
because of streamlining of their manufacturing process - another fallout
of quality techniques), but because THE CUSTOMERS DECIDED JAPANESE
PRODUCTS WERE HIGHER QUALITY.

    The way to get from where we are to where we need to be is not
magical, nor does it need a new committee to study how to do it.
It is written down in a dozen or two books. It appears in articles
in popular literature all the time. There are whole institutes devoted
to it. It requires:

1. A commitment to change the way we do things now. A paradigm shift
to meet the new needs for hardware and software in the 90's.

2. MEASUREMENT of quality, in everything we do, from purchasing office
supplies to manufacturing computers and software.

3. A commitment to continuous improvement (the "Six Sigma" culture).

    Now, finally, to Paul Kinzelman's memo. We do indeed have a top-heavy
management, and no way to measure the achievement of each manager other
than how well that manager's unit did in pumping iron or churning out
software on schedule. We don't measure the quality of our products, so
we can't possibly measure the quality of the processes used to produce
those products - whether they are the same, getting better, or going down
the tubes. Evaporation of entire departments - because few people feel
empowered or responsible for the quality of their work - should come as
no surprise. Horror stories of psychological warfare used against employees
who want to "change the system" or suggest something that gets in the
way of "business as usual" are commonplace. (I was the target once myself).

    If quality were measured in our software and hardware - pick any
metric you please - and our organizations were committed to change
the way we do business and to continuous improvement, you would find
the means to measure the success of every manager in the Corporation.
Did he or she improve the quality of the product? Is the SPR rate
down? Is the DOA rate down? Are the engineers involved in QFD sessions
with the customers to get the product specs correct the first time?
Is the organization analyzing the SOURCE of the failures and correcting
them so they can't happen again? Are they using concurrent engineering
and other techniques to reduce time to market?

    Speaking for myself and for many other engineers, we are
worried and anxious that without a new management focus, without the
changes necessary to make Digital products sell, and without
the changes necessary within the Corporation to make that a reality
- the provision of a new focus on quality, and empowering us to
carry it out - that no amount of thrift and economy will save Digital.

						Sincerely,
						Jon Campbell
						Principal Software Engineer

T.RTitleUserPersonal
Name
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1225.1BAGELS::CARROLLThu Oct 11 1990 19:313
    I agree.  I see no emphasis placed on quality.  Saving money will not
    sell out products, only quality will.  Quality the first time, not 
    after "a customer screams", which is how quality is done today.
1225.2Do the job right the 1st time around!SHRCAL::MORRILLThu Oct 11 1990 22:5420
    
    	I also agree that quality is a serious issue.  Engineering and
    manufacturing areas should take more care to ensure the accuracy of the
    tools they use in the development and production of thier product.  
    
    	In my 7 years in DEC Calibration Labs, I have seen more equipment
    disasters than I care to admit.  The worst part is that when budget
    cuts are necessary, equipment maintenance and calibration is among the
    first to get the ax.
    
    	The whole point is that we (as a corporation) need to develope and
    produce first class products the first time. To do that we need to
    utilize ALL of our assets in the best possible ways.  It is an
    expensive proposition, but it is far cheaper than doing the job over
    because of bogus test results or doing the fire fighter detail in the
    field. 
    
    	Quality products start in the workplace, not on the budget cutting
    board.  As they say at FORD, Quality is JOB #1.
      
1225.3IBM/Rochester wins Malcolm Baldridge Quality AwardJAWJA::GRESHSubtle as a BrickFri Oct 12 1990 11:1660
 -----       IBM Rochester wins top U.S. quality     
|C I S|      award                         
 -----  
             Source : Business Wire              Date : 11-OCT-90

ARMONK, N.Y.--(BUSINESS WIRE)--IBM Rochester, Minn., was awarded 
the federal government's highest quality honor Wednesday, capturing the 
Malcolm Baldrige National Quality Award. 

The large Minnesota facility, home of the AS/400 family of 
computers and advanced direct access storage products, won for the 
combined excellence of all of its operations. 

IBM Chairman John F.  Akers congratulated the employees at 
Rochester whose daily work helped earn the Baldrige distinction. 

``I salute our general manager, Larry Osterwise, and each and 
every one of our IBM colleagues in Rochester,'' Akers said.  ``It 
took the energy and conviction of the whole team, all pulling 
together, to earn this award.'' 

Rochester leads the implementation of IBM's market-driven quality
efforts and will stand as a model in the company's drive to achieve 
total customer satisfaction. 

``As proud and happy as we are,'' Akers said, ``we regard the 
Baldrige Award as a promising signpost rather than an end in itself.
The work only begins here.  The Rochester experience confirms our 
belief that we are on the right course.'' 

Akers also had words of praise for the award competition, named 
for the late Secretary of Commerce Malcolm Baldrige.  ``The Baldrige 
Award has helped to rally business around a common objective.  More 
than ever, quality is the key to competing effectively in global 
markets.'' 

Stephen B.  Schwartz, named as IBM's lead quality executive in 
April, previously led IBM Application Business Systems.  Rochester is
the unit's principal development and manufacturing facility. 

Schwartz said, ``With our focus on market-driven quality, IBM is 
using the Baldrige assessment discipline throughout the corporation 
so that our own view of what defines quality is buttressed by an 
objective, external standard.  That puts IBM more in tune with our 
customers and suppliers.'' 

The AS/400, introduced in June of 1988 and developed in half the 
time of its predecessor, helped to pilot IBM's market-driven quality 
process.  IBM involved hundreds of customers, independent software 
vendors and suppliers in all aspects of the product, from design to 
delivery. 

``IBM Rochester's experience is that quality pays,'' Schwartz 
said.  ``Reduced cycle times mean we are getting products to market 
faster.  Defect elimination means fewer service calls and lower 
warranty payments.  And satisfied customers mean more business. 
Quality is the single most effective way to improve the performance 
of the company over the long term.'' 

1225.4Pay more - Get moreCOOKIE::LENNARDFri Oct 12 1990 15:069
    Face it troops...as a national entity we are not quality oriented...
    and we do not value quality.  Look at our trashy cars, fly-by-night
    building contractors, sloppy public servants, K-Mart mentality, etc.
    
    Should it be a surprise that our designers, developers and managers
    feel the same way?  We love to talk about quality, but we aren't
    willing to pay for it.  We still don't seem to understand that
    typically the best quality/more expensive product is in the long
    run the best buy.
1225.5Six-Sigma...1 fault in a MillionSHRCAL::MORRILLFri Oct 12 1990 16:1320
    
    RE: .4
    >We love to talk quality, but we aren't willing to pay for it.  We
    >still don't seem to understand that typically, the best quality/more
    >expensive product is in the long run the best buy.
    
    	Well Put.  In The Standards Labs and Calibration Departments in
    this corporation, the expirtise and attention to quality is not only an
    issue, it is A WAY OF LIFE.  The reason behind this is because
    Calibration Personnel are generally perfectionists.  We are often
    criticised for following all the government and DEC specs, but we all
    have the personnal integrity to continue doing things right and not cut
    the corners at the expense of quality.  
    
    	My Calibration Lab has not had a single return for poor workmanship
    or error in it's entire history.  How many other "Outside labs" can say
    that...The data I have gathered indicates not very many.
    
    	Quality service takes both time and funding...but you get the best
    results.  
1225.6$ $ $ $CGOA01::DTHOMPSONDon, of Don's ACTFri Oct 12 1990 21:079
    re: .4
    
    'Tain't a dislike for quality, 'tis...  
    
        The Love of Money.
    
    
    What a novel surprise.
    
1225.7SA1794::CHARBONNDscorn to trade my placeMon Oct 15 1990 09:4614
    re .5 Six-Sigma is 3.4 flaws per million.
    
    re .6 >'tis...The Love of Money
    
    Not exactly. It's the love of the short-term profit, although the
    long-term may be disastrous. This doesn't start at the corporate
    level. It starts at Wall Street, where nobody gives a damn about
    anything further away than the next quarterly earnings report.
    (Witness DEC trading at $20 lower than book value. Short-sightedness
    at it's most blatant.) Corporations *react* to this by blowing off
    quality in an effort to get product out the door ASAP, quality of
    design and manufacture be damned. Gotta get those numbers up.
    Reputation for quality ? Who cares. We react to Wall Street, *not*
    to the customers.
1225.8THE DIGITAL VISIONNBOIS2::BLUNKBruce P. Blunk NBOMon Oct 15 1990 11:4072
1225.9Just a repeat of all that's been said beforeSMOOT::ROTHIraq needs lawyers... send some NOW!!Mon Oct 15 1990 14:0229
    The biblical quote "Without vision the people perish" has been
    scattered throughout this conference lately... and I think that
    best sums things up.
    
    Digital's employees will need to be *LED* in a quest for quality,
    trying to *MANAGE* them will not do. I don't believe that the quest
    for quality in-and-of-itself is enough to pull us out of our spin.
    
    Many leaders/dreamers up and down the digital management/employee
    chain have had their desire and determination reduced to
    frustration and bitterness by self-centered politicians in the
    management chain above them. I'd venture a guess that 60-75% of
    Digital's employees are (or could be) leaders and/or dreamers. I'd
    certainly classify myself as one.
    
    The Kinzelman memo hits square on the head the current management
    situation. Steps must be taken in these areas if employee
    confidence is to be restored. To believe that we can achieve the
    desired quality with a demoralized and demotivated workforce is a
    serious mistake. As to how many and to what degree DEC employees
    are demoralized and demotivated is left as an exercise to the
    reader, but I certainly feel that it is not uncommon.
    
    It will take LEADERSHIP to restore our vision and set our course.
    If we can renew the vision of our leaders and dreamers everywhere
    then we have a chance to succeed- without them we have none.

    Lee
1225.10"Eliminate Management by Slogan!" -- ZK1 entrance barcodesTLE::AMARTINAlan H. MartinTue Oct 16 1990 13:1917
1225.11Next reply (after this) is rather longBIGUN::ANDERSONThe Unbearable Lightness of BeingWed Oct 17 1990 07:271
Some interesting comments on the Japanese and QA follow in the next reply...
1225.12Japanese Software Industry - "How to Beat Americans"???BIGUN::ANDERSONThe Unbearable Lightness of BeingWed Oct 17 1990 07:28800

                  I N T E R O F F I C E   M E M O R A N D U M

                                        Date:     11-Jul-1990 03:38pm GMT
                                        From:     VMSMail User JBRADY
                                                  JBRADY@ESSB@MRGATE
                                        Dept:      
                                        Tel No:    

TO:  JBRADY@ESSB@MRGATE


Subject: Japanese Software Industry

From:	GALVIA::PLUNKETT "Jack Plunkett, Documentation and Design. 890-2133  
10-Jul-1990 1623"   10-JUL-1990 16:26:00.96
To:	@DIST_STAFF
CC:	ESSB::JCUNNINGHAM
Subj:	Japanese software industry


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| d | i | g | i | t | a | l |   I n t e r o f f i c e  M e m o r a n d u m
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To:    Distribution            Date:  10 July 1990
                               From:  Chip Nylander
                               Dept:  Software Development
                                      Technologies
                               DTN.:  381-2057 Loc.:  ZK 2-3/N30
                               File:  JAPAN-SOFTWARE-9006
                               Rev.:  0


Subj:  Report -- USAF Japan Software Meeting 6/26/90





1  EXECUTIVE SUMMARY

The USAF/High Leverage Technology office sponsored a  1  day  national
briefing to discuss the current state and methods of Japanese software
development, and the competitive threat they pose.  This  meeting  was
attended  by  about  60 leaders from corporate, academic, and research
institutions.

This meeting  was  provoked  by  information  formally  presented  and
informally  gathered at the First and Second International Workshop on
Software Quality Improvement, held in Japan in 1989  and  1990.   (The
Third International Workshop will be held in Tokyo in 1/91).

The participants agreed on the problem (cause and effect), but not  on
solutions  (followup  or  actions).   Little  at  this  meeting seemed
surprising or new; this is  probably  a  testimony  to  how  effective
Digital  has  been at getting Japanese awareness into the corporation.
However, it was significant and sobering to get all the information in
one  place  at  one  time,  and there are lessons for Digital software
development.

The participants agreed that the Japanese are out-engineering the rest
of  the  world in software cost and quality.  The cause of this is not
software  development  technology.    It   is   software   development
management, and treating software as a business to be managed.

Japan has not discovered any technological "magic bullet",  and  there
is  no  magic  in their software factories.  "Software Factory" equals
"Production approach plus effective software development management".


Report -- USAF Japan Software Meeting 6/26/90                 Page 2
EXECUTIVE SUMMARY


Their success is based on

     1.  An  emphasis  on  management  of  the  software   development
         process.

     2.  Use of simple  proven  technology,  not  development  of  new
         technology.

     3.  Planned, realistic productivity and quality goals.

     4.  Productivity and quality  metrics,  meticulously  applied  to
         assess progress towards goals.

     5.  Incremental, relentless improvement.

     6.  A high level of process maturity.

     7.  Strong company orientation, corporate team focus.

     8.  Strong problem solving orientation.

     9.  Reward  systems  and  competition  between  teams  based   on
         measured  productivity, quality, and progress, not on charter
         and turf.

    10.  Strong internal corporate training programs and  emphasis  on
         human improvement.

    11.  Involvement in quality and productivity improvement from  the
         CEO down.


In  addition,  innovative   U.S.    technology   (including   software
technology)  is  moving  to  Japan  because the Japanese are much more
opportunistic in funding promising new technologies  for  future  use,
which they will aggressively adopt when proven.

The "decision cycle" in the  U.S.   is  much  longer  than  in  Japan,
leading many under-funded U.S.  technology start-ups to obtain capital
by selling the technology to Japan.

This  meeting  suggested  numerous  possible  lessons   for   Digital,
including

     1.  Improvements in productivity and quality have to be  planned.
         Improvement  is  unlikely  without  defining long term goals,
         backed up by near term attainable/measureable goals.

     2.  Higher  levels  of  software  development  productivity   and
         quality  can  be  produced  with  current  technology,  fully
         applying  simple-to-use  tools  before  upgrading   to   more
         sophisticated technology.


Report -- USAF Japan Software Meeting 6/26/90                 Page 3
EXECUTIVE SUMMARY


     3.  Higher  levels  of  software  development  productivity   and
         quality   can  be  produced  via  human  improvement  through
         training and management.

     4.  Feedback and incremental improvement are  critical  --  don't
         look for quantum leaps.

     5.  Measurement is critical to continual improvement.

     6.  Patience,  endurance,  and   organizational   stability   are
         necessary   to   implement,  track,  and  manage  incremental
         progress.

     7.  Don't insist on absolute "scientific" measures of quality; do
         measure  trends in indicators of quality improvement (even if
         the metrics seem "nonsensical").

     8.  Quality and productivity must be high  priorities  to  senior
         management.

     9.  Digital (and the U.S.  in general) can benefit by  "stealing"
         all   the  work  Japan  has  done  in  applying  quality  and
         productivity improvement to their software, and apply  it  to
         our own software.


The remainder of this  memo  documents  the  context,  attendees,  and
content of this meeting in more detail.



2  SOURCES FOR ADDITIONAL INFORMATION

The Third International Workshop on Software Quality Improvement  will
be  held  in  Tokyo  January  21  -  January  26, 1991, and is open to
participation by Digital.  Additional  information  can  be  had  from
Professor Victor Basili, Department of Computer Science, University of
Maryland, College Park, MD 20704; email:  basili@cs.umd.edu.

Michael Cusumano has published a  series  of  MIT  Industrial  Liaison
Program  reports,  describing  the  Japanese  Software  Factories  and
software  development  management  and  methods.   These  papers   are
available through the Digital library DLN system.

This autumn, Oxford University Press  will  be  publishing  Cusumano's
"Japan's Software Factories:  A Challenge to U.S.  Management".

The Japanese are heavy users of "Managing the  Software  Process",  by
Watt  S.   Humphrey.   Well-worn  copies  of  this book are reportedly
common in the offices of Japanese software managers.


Report -- USAF Japan Software Meeting 6/26/90                 Page 4
CONTEXT


3  CONTEXT

In June, Colonel Will Stackhouse, Asst.  for High Leverage Technology,
sent  a  FAX  to numerous high-level software executives, researchers,
and technologists which read, in part:


       Contrary to popular opinion  the  United  States  is  no
       longer  dominant  in  software  and whatever lead we may
       have is rapidly eroding.

       Knowledge gained at two  recent  international  software
       development  and quality improvement workshops sponsored
       by Japan's MITI....support this position.

       At each  of  these  meetings....there  was  considerable
       interactive  discussion and intellectual probing....many
       of  our  team  members  were   invited   into   Japanese
       development   laboratories  and  observed  their  latest
       software code creation and process techniques......

       ...Please plan to attend if humanly possible.


About  60  individuals  responded  to  this  invitation,  representing
research, corporate, government, and academic institutions.

The meeting, held at the University of Maryland, was poorly  organized
and  run,  with  some  rough  spots  between  the  organizers  and the
participants (the state of software development in Japan seemed to  be
bigger   news   to   the  meeting  organizers  than  to  most  of  the
participants).  This had  the  effect  of  making  more  striking  the
consensus amongst the participants.



4  ATTENDEES AND SPEAKERS

The speakers were:

      o  Colonel Will Stackhouse, USAF
      o  Frank McGarry, NASA/GSFC
      o  Les Belady, MCC
      o  Tom Veliz, CTA
      o  Walter Scacchi, USC
      o  Nick Copping, Atherton Technologies
      o  Robert Yacobellis, Motorola
      o  Michael Cusumano, MIT Sloan School
      o  Bill Agresti, Mitre
      o  Brad Cox, Stepstone



Report -- USAF Japan Software Meeting 6/26/90                 Page 5
ATTENDEES AND SPEAKERS


Many of these speakers (including Belady,  Yacobellis,  Cusumano,  and
Copping)  have  had  years  of experience interacting with and working
with Japanese software developers, observing  the  Japanese  practices
and  progress,  and  visiting  at  Japanese  software producers; these
aren't newcomers excited by new discoveries.

Time and space don't permit all 60 attendees and  institutions  to  be
listed  here;  some of the more notable participants included (people)
Gordon Bell, Dave Cutler, Ike Nassi, Michael Cusumano, Andrew  Heller;
and  (institutions)  MCC,  NSF, Atherton Technology, Microsoft, Lotus,
Next, Apple, Bell  Labs,  NIST,  Sloan  School  MIT,  EDS/GM,  Hewlett
Packard,  IBM, Mototola, numerous branches of the military, government
labs,  government  agencies,  universities,  and  of  course   Digital
Equipment Corporation.

All in all, a very expensive meeting.....



5  PROBLEM STATEMENT

The United States is losing world  market  share  in  the  information
processing  industry,  and  at  the  same  time  the U.S.  position in
software development is eroding.

There is a "Japanese software challenge".

The Japanese have something like a 3-to-1 cost/productivity  advantage
over  the  United States in software development, and something like a
3-to-1 to 10-to-1 quality  advantage.   These  figures  are  based  on
available "apples-to-apples" comparisons.

Japanese software cost/productivity and quality  are  still  improving
relative to the United States.

These  accomplishments  are  being  made  using  limited   human   and
technology resources.

Most Japanese  software  developers  are  either  Japanese  university
graduates who graduate having learned very little computer science, or
(for example) crane operators who lost their  job  to  automation  and
were moved into the software development department.

Most Japanese software  developers  use  1970's  software  development
technology, and it's common for 2 - 3 developers to share a terminal.

The Japanese began their concerted efforts towards  improved  software
development cost and quality at the low end of the technology scale --
repetitive, traditional data processing applications.  Year  by  year,
they  are  moving  their acquired expertise up the technology chain to
more sophisticated software development projects.


Report -- USAF Japan Software Meeting 6/26/90                 Page 6
PROBLEM STATEMENT


This is strikingly similar to what has happened in other industries.

In addition, the Japanese approach to  software  development  is  well
suited   to   building   standardized   components   in   standardized
environments.   The   continuing   viability   of   some   proprietary
environments  in  the United States, coupled with all the confusion in
standards (MS-DOS vs.  OS-2, OSF vs.  UI, MOTIF versus Sun,  etc.)  is
one of the forces that has prevented effective Japanese penetration of
the U.S.  software market.  As U.S.   standards  get  sorted  out  and
standard environments become more important, the U.S.  software market
will become much more vulnerable to the Japanese.

There will be few places left to hide for U.S.  software producers.

Japanese software managers are quick to sieze on new opportunities and
work hard to make them succeed.  When evaluating outside partnerships,
the  Japanese  move  quickly;  typically,  they  will  make  a   major
investment  decision within 90 days from initial contact, and will pay
within 30 days of making the decision.  This is in contrast to the  18
- 24 month technology cycles of large U.S.  companies.

This  responsiveness  is  tending  to  drive  small  U.S.   technology
companies in need of capital into the arms of the Japanese.

The Japanese are also aggressive at importing U.S.  research;  whereas
the gap between Japanese software developers and Japanese universities
is quite large, their gap with U.S.  universities is small.



6  SOLUTIONS/ACTIONS

A stated goal of this meeting was to establish linkages amongst United
States  software  developers and enterprises, and to develop an agenda
and momentum for corrective action by the United States.

All the participants divided into five break-out  groups  to  work  on
this.

As  one  might  expect,  there  was  little  agreement  by  the   U.S.
participants   concerning   solutions,   agenda,   or   actions.   The
suggestions  from  the  groups  ranged  from  the  impossible  to  the
self-serving to the merely nonsensical and frustrated.

Colonel Stackhouse is going to attempt to keep this initiative  going,
possibly  with followup meetings, distribution of the material, trying
to get funding from U.S.  software firms for  a  coordinated  program,
etc.  He seems enthusiastic about pushing on.

My reading is that, realistically,  this  meeting  (and  any  followup
participation  at the next International Workshop) is all we're likely
to see out of this.


Report -- USAF Japan Software Meeting 6/26/90                 Page 7
CONTRASTING THE U.S. SOFTWARE DEVELOPMENT VERSUS JAPAN


7  CONTRASTING THE U.S.  SOFTWARE DEVELOPMENT VERSUS JAPAN

Some brief (perhaps overly general) introductory  comparisons  of  the
U.S.  and Japan include the following.

      o  The Japanese  emphasize  management  and  process;  the  U.S.
         tends  to  emphasize  technology  (looking  for  the  "silver
         bullet" breakthrough).

      o  The Japanese focus  on  using  proven  technology;  the  U.S.
         tends  to  focus  on developing new technology.  The Japanese
         are  typically  behind  the  U.S.   in  software   develoment
         technology.

      o  The U.S.  emphasizes tools  and  environments  to  equip  the
         transient   programmer;   Japan   emphasizes   investment  in
         management  infrastructure  and  human   motivation   through
         training and human improvement.

      o  The Japanese  articulate  well-defined  measurable  long-term
         goals  for  software  costs  and  reliability, backed up with
         acievable near-term goals; in the U.S., we're  unclear  about
         long-term   goals,   and   measurement   data   is  typically
         unavailable to measure the benefits of new technology in  the
         near-term.

      o  Japanese software managers stay technically  up-to-date,  and
         strive  to  understand  software  development  at  a detailed
         technical level.

      o  The  Japanese  approach  productivity  and  quality  with   a
         "compete  and  win"  mentality,  rather  than a "be creative"
         mentality.

      o  Japan  maintains  an  active,  process-oriented  approach  to
         software  quality;  the  U.S.   tends  to  apply  a  passive,
         product-oriented approach.


This comparison of U.S.  and Japanese software  development  (in  this
section  and  elsewhere  in this report) should not be taken as overly
negative about  the  U.S.   The  U.S.   has  many  unique  advantages,
including  a  better  higher  education  system,  national information
infrastructure, and a tradition of innovation.

However, the  evidence  is  that  Japan  is  out-doing  the  U.S.   in
commercial   software   development.    We  need  to  learn  from  the
competition while captitalizing on our unique strengths.



8  DETAILED CHARACTERIZATIONS OF JAPANESE SOFTWARE DEVELOPMENT

This section summarizes  and  synthesizes  all  the  observations  and


Report -- USAF Japan Software Meeting 6/26/90                 Page 8
DETAILED CHARACTERIZATIONS OF JAPANESE SOFTWARE DEVELOPMENT


conclusions about the character of Japanese software development.

The best software efforts in Japan are  reportedly  SRA,  Fuji  Xerox,
NEC,  and  Hitachi.   ICOT was emphatically listed as NOT being on the
"most effective" list.  The effective  Japanese  efforts  have  strong
programs to Japanize U.S.  software.



8.1  Management Of The Software Development Process

An important question is:  What is  there  in  the  Japanese  software
development  environment (apart from cultural differences) that result
in  these  characteristics?   Relevant  attributes  of  the   Japanese
environment include:

      o  Very limited engineering people resources.   SIGMA  estimates
         that  there  is  a  one million programmer shortfall in Japan
         today.

      o  Very high quality expectations by their customers.

      o  Severe competition.


That is, Japanese software  development  managers  are  faced  with  a
demanding  environment and a scarcity of resources.  Their response is
to treat software as a manufacturing business to be managed.



8.2  Use Of Simple Proven Technology

Although the Japanese pay  a  great  deal  of  attention  to  software
development  process, they are conservative in applying new technology
to software developent.

The  Japanese  capital  infrastructure  for  software  development  is
primitive by U.S.  standards.

      o  Typically, software developers sit  in  an  open  "bull  pen"
         shared by 70 - 120 people.

      o  Typically, 2 - 3 developers share a computer terminal.

      o  They have little administrative support.

      o  The tools and technologies they use are behind those  of  the
         U.S.   (and are characterized as "1970's software development
         technology").

      o  There is a much wider gap in Japan between  the  universities
         and commercial software development than in the U.S.


Report -- USAF Japan Software Meeting 6/26/90                 Page 9
DETAILED CHARACTERIZATIONS OF JAPANESE SOFTWARE DEVELOPMENT


      o  Japanese software testing is "at a low level  of  automation,
         but a high level of effectiveness".

      o  Most speakers felt that the Japanese don't get  much  benefit
         from  software  re-use, and that re-use levels are comparable
         to those in the U.S.   (there  was  some  disagreement  about
         this;  Yacobellis thinks that at some companies, such as NEC,
         50% of the released code is re-used).


The  Japanese  emphasis  is  on  aggressively  USING  what's   already
available to implement a well-managed, repeatable software development
process.

Doing this, they have achieved effective software process  engineering
using "low technology" ("low" == "appropriate").



8.3  Productivity/Quality Goals And Improvement

Part  of  this  Japanese  orientation  towards  software   development
includes  strong,  organization-wide  goals  for  software development
productivity and quality.  The organization sets meangingful long-term
goals, backed up by realistic and measurable near-term goals.

Typically, the Japanese set 3 - 5 year plans which call  for  20%  per
year   improvement   in   productivity,   quality,   and   on-schedule
performance; 12% - 25% actual improvement is the normal result.

They demand relentless,  INCREMENTAL  improvement  (and  don't  expect
quantum leaps).

As a result of this approach, for example,

      o  Quality figures are quoted for Japanese software of 8 defects
         per 1 million lines of total released software, or around 5.8
         Sigma.   This   is   recording   all   problems,   not   just
         customer-reported defects.

      o  IBM Japan produces software which has an order  of  magnitude
         fewer defects than that produced by IBM U.S.  and IBM France.

      o  Hitachi has reduced software defects by an order of magnitude
         in 5 years.

      o  With re-use, NEC developers produce  about  40,000  lines  of
         code per year.

      o  The low end of Japanese software productivity is at the  high
         end of U.S.  companies' production.


Report -- USAF Japan Software Meeting 6/26/90                Page 10
DETAILED CHARACTERIZATIONS OF JAPANESE SOFTWARE DEVELOPMENT


      o  2 - 3 times improvement in productivity over 5 - 10 years has
         been typical.

      o  IBM Japan has  2  times  the  software  productivity  of  IBM
         elsewhere.

      o  Hitachi reports a 10-fold decrease in late  projects  over  4
         years,  with  evidence  of  a 35% - 40% shorter project cycle
         time.




8.4  Productivity And Quality Metrics

The Japanese make meticulous use of metrics to assess progress towards
long-term and near-term producivity and quality goals.

      o  The Japanese  quantify  everything  they  can  (productivity,
         schedules, quality, etc.)

         Tom Velez showed some charts frim  Nippon  Steel  Information
         and  Communication Systems (ENICOM), showing an amazing level
         of  cradle-to-grave  measurement  built  into  the   software
         development  process,  including  month-to-month  comparative
         statistics, quality and productivity metrics, etc.

      o  Projects are typically  measured  MONTHLY  with  quantitative
         statistics, and NEW GOALS are set for the next month.

      o  By collecting this data, management always knows how  they're
         doing  and how much it costs to produce software, so they can
         manage it.

      o  These measurements give immediate feedback to the development
         teams, providing continuous motivation.

      o  The Japanese readily admit that there is lots  of  "nonsense"
         in their measurements (lines of code, pages of specification,
         etc.), but they accept the fact of that "nonsense" and use it
         to their advantage.

         They don't  wait  for  a  perfect  model  or  metrics  before
         exploiting these techniques.


The clear advantage for the Japanese of using these metrics  is  that,
whether "nonsense" or not, it provides feedback, comparisons, and as a
result MOTIVATES developers.

In  contrast,  there  has  been  no  clear  improvement  in   software
production  or  quality  in  the U.S.  in the last 10 years; note that
this is at least partly because there are few metrics.  There may have
been improvement, but there's no clear measure of it!


Report -- USAF Japan Software Meeting 6/26/90                Page 11
DETAILED CHARACTERIZATIONS OF JAPANESE SOFTWARE DEVELOPMENT


8.5  Process Maturity

The emphasis on managing software development and use of  metrics  has
led   to  a  high  level  of  process  maturity  in  Japan.   Software
development is extremely disciplined.

      o  The Japanese use consistent methodology framework thoughout a
         company.   This  leads  to  increased  process maturity, good
         metrics, and synergy  across  multiple  software  development
         enterprises within a large corporation.

      o  The Japanese are heavy  users  of  Humphrey's  "Managing  the
         Software  Process";  participants  disagreed about how mature
         Japanese software development is on Humphrey's scale, but the
         estimates  ranged from "shooting for Level 3 (defined process
         for consistent repeatable results, and able to introduce  new
         technology with predictable results)" to "everything at Level
         4 and Level 5 (comprehensive process management and  rational
         optimization of the process)".

         (In contrast, only 1% of U.S.  companies are believed  to  be
         at  Level  3,  and 85% are believed to be at level 1 (lack of
         stable process with repeatable results)).

      o  Possibly a sign that Level 5 is coming  into  place  is  that
         fact   that  the  defined  software  process  in  a  Japanese
         enterprise, while consistent at a high level  of  methodology
         framework  and  metrics,  is  not  rigid;  project  teams are
         allowed to select and implement details of their methodology.
         (Note  that these are long term investments, as project teams
         stay together for a long time).

         Thus, there is flexibility within the larger defined process.


One quotable quote:  "If you have fixed  resources  and  fixed  goals,
then the variable that you have left to control is your process".

A suggested paradigm, applied by the Japanese, is:

     1.  Characterize your current process and environment.

         You have to write your current process down,  and  understand
         it, before you can talk about how to improve it.

     2.  Set measurable goals.

     3.  Develop process to support those goals.

     4.  Execute that process and gather data.

     5.  Analyze and review the data.


Report -- USAF Japan Software Meeting 6/26/90                Page 12
DETAILED CHARACTERIZATIONS OF JAPANESE SOFTWARE DEVELOPMENT


     6.  Feedback, adjust and fine-tune process.

     7.  Set new goals




8.6  Company Orientation, Team Focus, And Problem Solving Orientation

These management and process aspects of Japanese software  development
are backed up by supportive organizational and individual attitudes.

Japanese software development operations are characterized by a strong
company orientation and identification with the corporate mission.

      o  There is excellent internal communications.

      o  The  Japanese,  as  individuals  and  as  teams,  maintain  a
         "compete  and  win"  problem-solving mentality (rather than a
         "be creative and/or perfect" mentality, or  "doing  something
         interesting  and challenging", or "practicing my profession",
         or etc.).

      o  Japanese teams are kept together  for  long  periods,  during
         which they work on a series of projects.

      o  Japanese  software  managers  are  quick  to  sieze  on   new
         opportunities  and  work  hard  to  make  them  succeed.  The
         Japanese   are   aggressive    about    exploiting    outside
         partnerships,  rather than building in house, when this is to
         their advantage.

         When evaluating outside partnerships, the Japanese  typically
         will  make  a  major  investment decision within 90 days from
         initial contact, and will pay within 30 days  of  making  the
         decision.


The  essence  of  these  attitiudes  are   that   the   Japanese   are
goal-oriented for the organization, with little concern for optimizing
for the individual.



8.7  Reward Systems And Competition

The  reward  system  in  Japanese  software  development   enterprises
reinforces all the above.

There is intense competition  between  Japanese  software  development
teams,  but  the  competition  (and  the  reward  system)  is based on
measured productivity, quality, and progress.


Report -- USAF Japan Software Meeting 6/26/90                Page 13
DETAILED CHARACTERIZATIONS OF JAPANESE SOFTWARE DEVELOPMENT


There is little competition over charter and turf....



8.8  Training And Human Improvement

Investment  in  people,  rather  than  equipment  and  technology,  is
fundamental  the  the  Japanese approach.  The priority of training is
very high.  This is a response to lack of  people  resources,  and  is
made possible by a stable organizational context and a long-term view.

      o  The Japanese maintain a separation  of  "Software  Engineers"
         (designers) and "Software Implementors" (coders).

      o  The Japanese do not have a large available pool  of  software
         engineering talent.

         The universities do a poor job of producing quality  software
         engineers; in addition, a large part of the Japanese software
         development  labor  pool  comes  from  (for  example)   crane
         operators who lose their job to automation and are re-trained
         as  "software  implementors",  or  who   move   to   software
         development  from  other  technical fields (such as astronomy
         and veterinary science),  and  are  re-trained  as  "software
         engineers".

         As a result, nearly all software development training is done
         by Japanese companies, and they invest very heavily in it.

      o  Simple tools, keeping teams together, and the  discipline  of
         consistent   methodologies  across  the  organization  enable
         displaced  crane  operators  to  become  productive  software
         developers.

      o  One speaker commented that "The U.S.   emphasizes  tools  and
         environments   to   equip  the  transient  programmer;  Japan
         emphasizes investment in management infrastructure and  human
         motivation through training and human improvement".


All of this is, of course, made  possible  by  the  longevity  of  the
Japanese workforce.



8.9  Quality And Productivity Improvement From The CEO Down

Software quality and improvement are key company objectives in  Japan.
Senior management, from the CEO down, takes this seriously.

It is this management  commitment  to  quality  and  producivity  that
supports   other   elements   of  the  Japanese  software  development
environment such as consistent use of metrics,  long-term  investment,
and incremental year-to-year improvement.


Report -- USAF Japan Software Meeting 6/26/90                Page 14
DETAILED CHARACTERIZATIONS OF JAPANESE SOFTWARE DEVELOPMENT


The focus is on a process  approach  to  quality,  NOT  an  inspection
approach.

As a result of this, the quality of delivered software  (the  reported
error rate) is significantly better in Japan than in the U.S.

    

Distribution:  

TO:  FRANK BIRCH@TRC
TO:  MARILYN EHRHARDT@LAC
TO:  GEORGE CHUNG@HGO
TO:  STEPHEN HAIRS@SNO
TO:  MIKIO SUZUKI@TKO
TO:  KEITH ANDERSON@SNO
TO:  JOHN GARLICK@KAO
TO:  RICHARD RYDBERG@MEO
TO:  JEFF WILKINSON@NZO
TO:  EDDIE LUI@HGO
TO:  SHOJI ITAGAKI@JSO
TO:  MASAHIRO YAMADA@TKO

1225.13IBM and quality: long info in next replyBIGUN::ANDERSONThe Unbearable Lightness of BeingWed Oct 17 1990 07:450
1225.14Quality at IBM (long reply)BIGUN::ANDERSONThe Unbearable Lightness of BeingWed Oct 17 1990 07:51564
Tel No:    (02) 412 5666

TO: See Below

Subject: FYI* QUALITY AT IBM

  
  For your info.
  
  Regards,
  Jan
  
  
  Attach.
d i g i t a l
                   I N T E R O F F I C E   M E M O R A N D U M

                               Date:      17-Jan-1989 05:49 AED
                               From:      Edward Bishop @DAS 
                                          ( BISHOP.EDWARD AT A1 AT FSLMTS AT DAS 
                               Dept:      FSL Materials
                               Tel No:    275-2305

To: See Below

Subject: QUALITY AT IBM 

THE FOLLOWING IS A REPORT ON THE QUALITY PROGRAM INSTITUTED ACROSS IBM AND 
SPECIFICALLY IBM CANADA($2.5B BUSINESS). 


                   I N T E R O F F I C E   M E M O R A N D U M

                                        Date:      14-Jan-1989 09:42am EST
                                        From:      Paul Mantos 
                                                   MANTOS.PAUL AT A1 at OURVAX 
                                                   at MRO 
                                        Dept:      U.S. - MFG. EXCELLENCE
                                        Tel No:    296-3787

TO: See Below

Subject: IBM IS AFRAID OF JAPANESE COMPETITORS - WHY NOT DEC??????


From:   NAME: John Morris                   
        FUNC: Field Service Marketing 
        TEL: DTN 631-7142         <MORRIS.JOHN AT A1 at TRCO01 at TRC>
Please find attached a summary of an address given by an IBM staffer on the 
subject of quality and customer satisfaction.

Best Regards,

John Morris
Research and Information
FS Marketing
Digital Canada

                           QUALITY AT IBM CANADA
                                     
                          Trip Report on Address
                    by Robert Beggs, Director, Quality
                              IBM Canada Ltd.

                             December 13, 1988
                                  Toronto
                               Sponsored by
                     Industrial Marketing and Research
                           Association of Canada


                           Report by John Morris
                         Research and Information
                          Field Service Marketing


                             Internal Use Only

--------------------------------------------------------------------------
Robert Beggs, a 30 year IBM veteran, has been IBM Canada's Director of 
Quality for the last six years.  His talk on December 13th focused on the 
evolution of the quality concept at IBM.  Beggs covered the IBM quality 
program from its initiation in manufacturing to its current role in 
enhancing customer satisfaction. Beggs reports directly to IBM Canada's 
Chairman -- an interesting measure of the importance IBM attaches to its 
quality programs.

This summary records Beggs' remarks made during his 1.5 hour address.  As 
Beggs' comments were well organised, they are presented in the same order 
as his talk.  Beggs' remarks are also reported at face value and no attempt 
has been made to judge the IBM's actual success in quality.

Readers outside Canada may be interested to know that IBM Canada Ltd. 
generates about $2.5 billion U.S. annually in revenue, of which about 30% 
is accounted for by exports.  IBM Canada employs about 12,000 people.
-------------------------------------------------------------------------

                                 CONTENTS

        History of Quality at IBM
        The Context Within Which Quality was Implemented at IBM
        Competitive Pressure the Original Stimulus to IBM's Quality 
        Programs
        The IBM View:  Quality Delivers and Quality is Simple
        Quality at IBM in 1982
        Quality at IBM in 1987
        Characteristics of Quality at IBM
        The Len Barry/Texas A&M Model of Customer Satisfaction
        Customer Satisfaction the Apex of IBM's Quality Program
        Questions from the Audience

                         HISTORY OF QUALITY AT IBM

IBM has been explicitly promoting quality now for 10 years.  During that 
period of time, the focus of quality improvement has changed as shown in 
the following chart:
 
FOCUS:  Product               People            Process         Customer
      Reliability          Participation   and Performance       Service

              Internal Focus        --------->       External Focus
   
YEAR: 79    80    81    82    83    84    85    86    87    88    89    90 

During the past 10 years, the IBM quality focus has shifted from an 
internal focus to an external, customer focus.  Beggs states that this 
shift reflects only the increasing acceptance of quality within IBM and NOT 
necessarily the best method of quality implementation.


                         THE CONTEXT WITHIN WHICH
                      QUALITY WAS IMPLEMENTED AT IBM

IBM's quality program built upon IBM's core values of 

1. respect for the individual
2. the best in customer service
3. excellence in everything they do

and IBM's stated mission, 

1. customer partnership
2. leadership in products and services
3. growth with the industry
4. operational efficiency
5. sustained profitability

Beggs feels that programs, of which the Quality program is an example, will 
only succeed if they are compatible with an organisation's underlying 
culture.

                    COMPETITIVE PRESSURE THE ORIGINAL 
                    STIMULUS TO IBM's QUALITY PROGRAMS

By the late 1970's, IBM's senior management had become increasingly 
concerned about Japanese competition.  This concern was heightened by the 
knowledge that during the 70's several American computer firms had already 
closed shop.  

It was at this point that IBM discovered two things: (1) in many areas, 
they could improve the way they did business and (2) their business 
improvements generally did NOT require "rocket science" for success.  
Working with quality guru Crosby, IBM chose the quality paradigm as the 
vehicle for business improvements. 


Two years after the initial implementation of the first IBM quality 
circles, the quality program had spread to most IBM manufacturing 
facilities throughout the world.  It then became apparent that quality 
would probably be useful throughout all business functions.  This was 
achieved by 1982.  

Throughout this period, IBM management were motivated by the knowledge that 
"either IBM delivers defect-free goods and services to their customers, OR 
SOMEONE ELSE WILL".  IBM takes the position that quality of service is key 
to customer satisfaction. In turn, customer satisfaction is key to 
competitive advantage.

Critical for the success of the IBM quality program was the "decision 
making template" within which the quality program was run.  The quality 
program mission was endorsed within IBM at the highest levels.  Quality 
goals were made explicit, long-term and organisation transcendent.  Quality 
itself was made an integral part of IBM strategies and IBM team efforts.

                               THE IBM VIEW:
                  QUALITY DELIVERS AND QUALITY IS SIMPLE

Throughout his talk, Beggs made reiterated one point over and over again.  
Quality is not just pie in the sky, but delivers four key inter-related 
benefits:

1. Quality drives market share through product acceptance.
2. Quality contributes positively to both revenue and costs.
3. Quality appeals to pride of craftsmanship by IBM employees.
4. Quality is a critical component of IBM's reputation.

BUT NOTHING IN THE QUALITY PROGRAM IS COMPLICATED OR DIFFICULT -- WHAT IBM 
HAD ACHIEVED BY 1985 IN QUALITY COULD EASILY HAVE BEEN ACHIEVED IN 1970!

It was competitive pressure by Japanese firms that forced IBM to confront 
the accepted, to pursue excellence where previously an 'ok' would have been 
acceptable.

                          QUALITY AT IBM IN 1982

By 1982, IBM's quality game plan included

1. definition of quality goals and strategy
2. a commitment to train management personnel first in quality
3. a commitment to integrate quality improvement processes into the 
management system
4. an inclusion of quality goals as part of performance plans.

IBM's 1982 quality related goals were "modest":

1. Improve customer satisfaction
2. Improve employee morale
3. Improve all business processes


                          QUALITY AT IBM IN 1987

By 1984 and 1985 though, IBM faced several new challenges: one of the most 
important of which was handling the enormous increases in transaction 
volume generated by their success in the PC market place.  Other challenges 
included

1. IBM's growing suite of products. 
2. IBM's increasingly strained business processes. 
3. More frequent customer problem escalations. 
4. More frequent IBM business unit audit failures
5. Increasing concern about IBM's ability to meet its business goals.

Beggs pointed out that in order to meet IBM's ambitious business goals, IBM 
would have to process a number of transactions in geometric proportion to 
its increase in revenue!  This increase in process throughput required 
improvements in process efficiency in orders of magnitude.

Process issues related to this problem were identified as follows:

1. IBM managers sometimes lacked understanding of how business processes 
functioned.

2. Process documentation was often either out of date, too low level or 
even non-existent.

3. Process changes were difficult to accommodate.

4. IBM's image was suffering due to process problems.

5. There was a significant upside to process improvements.

During this period, IBM focused considerable resources on improving process 
quality.  Having achieved relative success in this effort, IBM was now free 
to enter a new phase of its quality program.   This new quality orientation 
arose in response to IBM's new understanding of its competitive position:

FACT:  This is a service economy

FOCUS:  Business is about relationships, not physical products

OPPORTUNITY:  Providing value added services

COMPETITIVE ADVANTAGE:  Service quality.  Organisations offering quality 
service seem to make it easy for their customers to do business with them.  
And anytime an exception to a normal transaction occurs, organisations 
offering quality service respond immediately and massively.

By 1987, Beggs now had a full time staff of 12 and several years experience 
under his belt.  He was one of fifty staff in similar positions around the 
world in IBM.  Along with IBM units world-wide, IBM Canada restated its 
quality strategy as:


1. Include the customer viewpoint in everything.  IBM's first foray into 
quality (in manufacturing) had not explicitly included the customer 
viewpoint.

2. Define IBM's key principle as "doing the right thing -- right the first 
time".

3. Including quality in the management system.

4. Enhance the problem solving techniques repertoire of non-management 
personnel. (It had been learned that quality worked best when typical 
management problem solving techniques were applied to a situation.  
However, it had previously been taken for granted that all employees were 
aware of these techniques.  Non-management personnel benefited from basic 
training in problem solving techniques and thereby become more effective as 
implementers of quality.)

5. Recognise achievement -- in non-monetary ways.  Such recognition is in 
addition to the well known IBM program of payment for successful 
suggestions.  Recognition of achievement is key for building participation 
in quality programs.

6. Share quality implementation success stories.

                              CHARACTERISTICS
                             OF QUALITY AT IBM

IBM had first been introduced to quality by Vice President Phil Rizzo, who 
happened to be a golfing partner of Phil Crosby. At that time, Crosby was 
known for his quality programs at ITT.  Crosby's approach remains the 
centre of the IBM quality program although IBM also incorporates elements 
from Demming, Juran and Fegenbaum.

Quality at IBM is defined as conformance to customer requirements.  

IBM's quality goal is to be defect free.

IBM's quality methodology is prevention.

IBM's quality measurement is defect tracking.

IBM has taken some trouble to understand what characterises a service 
product.  Following on the work of Jan Carlson, IBM sees service as 
"perishable, comprised of unique performances, being consumed and produced 
at the same time ...etc."

Of course IBM is aware of the cost of service and is not interested in 
expending more resources than necessary to achieve customer satisfaction.  
The balance of service cost and customer satisfaction is summarised in 
IBM's customer satisfaction hypothesis:

                         Perceived Service
Customer Satisfaction = --------------------
                          Expected Service

In other words, one can enjoy a MacDonald's hamburger because it was what 
was expected and still be dissatisfied with a meal at Winston's because it 
fell below expectations. (Note to readers not from Toronto:  Winston's is 
one of Toronto's most expensive restaurants.)

IBM has also used the work of Len Barry et. al. of Texas A&M University.  
Barry conducted research for the American Marketing Association asking the 
question:  "Is there anything common about service quality across different 
industries".  Barry answered YES as follows:

ABSOLUTES OF SERVICE QUALITY

1. Reliability -- you did what you said you would
2. Responsiveness -- you were willing to help when things didn't go as 
planned
3. Empathy -- your employees were courteous and knowledgeable and were able 
to convey trust and confidence
4. Assurance -- your customers received "caring, individualised attention"
5. Tangibles -- your customers liked what they could actually see

Barry developed an interesting model of customer satisfaction.  The model 
is outlined below.  

In Barry's customer satisfaction model, the boxes are steps in the customer 
satisfaction process.  The most interesting feature of the model, is the 
identification of five critical "customer satisfaction gaps".
                         THE LEN BARRY / TEXAS A&M
                      MODEL OF CUSTOMER SATISFACTION
                            AS PRESENTED BY IBM


Word          Perceived              Past               Competitive
of Mouth        Needs              Experience           Communications
   |             |                    |                    |
   |          ---V--------------------V-----------         |
   ---------->|                                  |<---------
              |    CUSTOMER EXPECTATIONS         |
      -------<|                                  |<--------|
      |       ------------------------------------         |
      |                        ^                           |
      |                        |                           |
     ---                      ---                          |
     GAP                      GAP                          |
     ONE                     FIVE                          |
     ---                      ---                          |
      |                        |                           |
      |       ------------------------------------         |
      |       |   CUSTOMER PERCEPTIONS           |<--------|
      |       ------------------------------------         |
      |                        ^                           |
      |                        |                           |    LINE OF
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -      

      |                        |                           |   VISIBILITY
      |       -----------------------------------          |
      |       |     SERVICE EXECUTION           |<---------|
      |       -----------------------------------          |
      |                        ^                           |
      |                        |                           |
      |                       ---                          |
      |                       GAP                          |
      |                      THREE                         | 
      |                       ---                          |
      |                        |                           ^
      |       -----------------------------          ------------------
      |       |       TRANSLATION         |  | GAP|  |   EXTERNAL     |
      |       |   OF MGMT PERCEPTIONS     |<-|FOUR|->| COMMUNICATIONS |
      |       | TO SERVICE SPECIFICATIONS |          |  TO CUSTOMERS  |
      |       -----------------------------          ------------------
      |                        ^       
      |                        |
      |                       ---
      |                       GAP
      |                       TWO
      |                       ---
      |                        |
      |       ----------------------------------
      |       |  MANAGEMENT PERCEPTION OF      |
      |------>|    CUSTOMER EXPECTATIONS       |
              ----------------------------------

According to Barry's work, gaps in the customer satisfaction process can 
only be closed successively.  In other words, Gap 5 can only be closed when 
Gap 4 is closed, which in turn can only be closed if Gap 3 is closed etc.  
The first gap that must be closed is that between what management believes 
customers want and what customers actually want.  

IBM uses various management programs and tools to close each of the above 
gaps.  IBM believes that while these gaps will always exist in greater or 
lessor degree, IBM will be successful if they are better than their 
competitors at closing these gaps. 

Begg's only had time to discuss Gap No. 1 in detail, the gap between 
management perception and customer needs.  Begg's identified five reasons 
for the existence of this gap:

1. Insufficient market research.

2. Inadequate use of market research.

3. Lack of contact and interaction between management and customers.

4. Insufficient communication between front-line, customer contact 
employees and senior management.

5. Too many layers between front-line, customer contact employees and top 
management.

It is easy to see that Reason No. 5 above would be particularly important 
to IBM, given IBM's more hierarchical organisation structure.

In the context of discussion around Gap No. 1, Beggs made the interesting 
comment that research literature shows an ALMOST PERFECT CORRELATION 
BETWEEN WHAT FRONT-LINE PERSONNEL THINK AND WHAT CUSTOMERS THINK.  In other 
words, surveys of internal front-line staff is valid method for obtaining 
information on customer satisfaction.

                         CUSTOMER SATISFACTION THE
                      APEX OF THE IBM QUALITY PROGRAM

IBM draws several conclusions from the application of the Barry model:

1. Manage consistent customer communications.  Measure customer 
perceptions.

2. Put strong emphasis on customer and front-line personnel.

3. Make every customer contact support the goal of maintaining an ongoing 
buying relationship.

4. Implement support tools that enhance service quality.

Beggs elaborated on point number two, quoting Barry that "service 
excellence is possible only when individual employees have great pride in 
their company."  And Beggs went on to state that for employee pride you 
need: 

1. Superb product quality
2. Meaningful employee participation
3. Hassle free business processes

QUESTIONS FROM AUDIENCE:

                         IF QUALITY IS SO SIMPLE,
                         WHY IS IT ALSO DIFFICULT?

1. Given that Beggs' strongly emphasised the common-sense nature of 
quality, I asked why it took Japanese competitive pressure to make North 
American corporations see the light.

Beggs responded with a "sociological" explanation, giving his view that 
North American managers are predisposed to "crave complexity".  A "common 
sense" and "down to earth" focus on the details of quality isn't always 
"sexy" enough for high-powered managers.  Further, some management 
practices are at odds with a quality focus.  Beggs gave the example of 
"delegation" as a management practice usually thought of as the mark of a 
good manager.  While this is true he said, delegation can also interfere 
with a manager's involvement with important but routine quality issues.

                        HOW IS QUALITY IMPLEMENTED
                        IN STAFF FUNCTIONS AT IBM?

2. I asked about the applicability of quality tools designed for volume 
manufacturing process to discontinuous work environments typical of staff 
functions.

Beggs stated that IBM used a variety of tools in all quality processes, 
included Pareto analysis, Ishikawa diagrams, brainstorming etc.  IBM found 
that quality circles did not work in professional environments.  As a 
result, quality in such staff functions is handled on a project basis like 
any other task.

Date:      10-May-1990 09:31 AES
From:      Ian Pugsley 
           PUGSLEY IAN 
Dept:      SPR Software Licensing
Tel No:    [61]-(3)-8959208


TO: See Below

Subject: IBM's quality commitment

You may be interested to read the first news item (right after their
financial statement) in IBM's quarterly report (the March 1990 quarter): 

First Quarter News Review

A renewed commitment to quality

Quality topped the agenda at a meeting this January of IBM's senior
executives from around the world. During the course of the meeting,
company management launched a comprehensive program designed to
virtually elimionate defects from every IBM solution and business
process. The overall framework for addressing the company's objective
is market-driven quality, a concept which extends IBM's quality focus
beyond product reliability to every aspect of the company's
relationship with its customers. 

"Market-driven quality means understanding quality as our customers 
see it," said IBM Chairman John F. Akers. "Our aim is to make every 
IBM offering and every contact with our company perfect in the eyes of 
our customers."

To this end, the company is establishing measurements that reflect the
views of the marketplace on IBM's offerings and services. These
measurements will allow the company to better direct the efforts of
its employees, vendors and Business Partners to deliver world-class
solutions.

Distribution:

TO:  Rob Benco                            ( BENCO ROBERT@A1@MEO78B@MEO )
TO:  Tony Bonanno                         ( BONANNO TONY@A1@MEO78B@MEO )
TO:  Mark Cleary                          ( CLEARY MARK@A1@SNOC02 )
TO:  Carol Clough                         ( CLOUGH CAROL@A1@MEO78B@MEO )
TO:  Peter England                        ( ENGLAND PETER@A1@MEO78B@MEO )
TO:  Lawrie Hanson                        ( HANSON LAWRIE@A1@MEO78B@MEO )
TO:  Timothy Hughes                       ( HUGHES TIM@A1@MEO78B@MEO )
TO:  Jim McNally                          ( MCNALLY JIM@A1@MEO78B@MEO )
TO:  Sarah Rankin                         ( RANKIN SARAH@A1@MEO78B@MEO )
TO:  Richard Rydberg                      ( RYDBERG RICHARD@A1@MEO78B@MEO )
TO:  Richard Sherratt                     ( SHERRATT RICHARD@A1@MEO78B@MEO )
TO:  Andrew Turnbull                      ( TURNBULL ANDREW@A1@MEO78B@MEO )
TO:  John Cummings                        ( CUMMINGS JOHN@A1@MEO78B@MEO )
TO:  Neil Bannister                       ( BANNISTER NEIL@A1@MEO78B@MEO )
TO:  Eve Kleiman                          ( KLEIMAN EVE@A1@MEO78B@MEO )
TO:  Brian Smallman                       ( SMALLMAN BRIAN@A1@MEO78B@MEO )
TO:  Kim Liesching                        ( LIESCHING KIM@A1@MEO78B@MEO )
TO:  Nigel Page                           ( PAGE NIGEL@A1@MEO78B@MEO )
CC:  Frank Wroe                           ( WROE FRANK@A1@SNOC02 )
CC:  Rustom Kanga                         ( RUSTOM KANGA @SNO )
CC:  Murray W. Ray                        ( RAY MURRAY )
CC:  Jane Thornton                        ( JANE THORNTON @SNO )
1225.15***********NBOIS3::BLUNKBruce P. Blunk NBOWed Oct 17 1990 09:1141
    Alan,
    
    I do not want to get into a philosophical debate about slogans, and
    coporate goals, vision etc.  Note 0 and several comments refer to 
    Quality as a goal and indeed company philosophy and thought this 1987
    poster has something to say about what Quality should be for DEC.
    I have had contact with Digital since the late 60's as student,
    customer, and now employee.  I do feel that in the past Digital has
    tried to provide quality for its customers, and believe that it is
    still a basic goal (philosophy).  Certainly all forms of advertisement
    contain slogans, but I think this poster is trying to convey something
    more. I work in the IS department at the Nuermberg Germany office so
    our customers are the computer users here and at remote locations which
    we service.  Our goal really is to provide the best quality service
    possible..... we try to do the best we can with the resources we have
    at our disposal. We believe Quality Service is one of our basic goals.
    
    Question 1 is not easy to answer.  I think the basic "Vision" for
    Digital has always been to be a Great Computer company for its
    Customers and EMPLOYEES. Just about 5 years ago I started working
    for DEC here in Germany and I felt an atmosphere of excitement and I
    was really motivated..... Now it seems the excitement is almost gone
    and I am often demotivated (although not demoralized). Most of the
    problems occuring in the U.S. are happening here in Germany (Europe)
    so this does seem to be a Digital  International Problem. By the way
    I am an American living in Germany for several years so know both
    worlds rather well.
    
    Perhaps the most important statement in the above said poster is
    "Quality begins with management leadership. Is our management now
    content with good (or mediocre) instead of great (excellence)? I
    don't know. 
    
    History shows that only visionary leadership can inspire and ultimately
    bring (people, organizations, nations) through difficult times.
    Lincoln's vision of a United America brought the nation through a
    terrible civil war and ultimately the union of all states.
    Luther brought about the reform of Church and State in Germany.
    
    This is the kind of leadership we need....... Now to keep a vision
    alive.  
1225.16market no place for de-buggingHEFTY::CHARBONNDDELETE the SimpsonsWed Oct 17 1990 10:0110
    Sounds like we've confused very technologically advanced products
    with *good*  products. I don't believe any amount of technological
    'leap-frogging' of our competitors' products will make up for a
    reputation for poor quality. (Even the Soviets know this - their
    rockets aren't as fancy as the Space Shuttle, but they get their
    payloads up on time.)
    
    Put another way, as customer, do you want 'state-of-the-art' or
    will your business needs be better served by 'bugs-already-
    worked-out' ?
1225.17Did we ever have quality?RANGER::JCAMPBELLWed Oct 17 1990 18:4570
    re: .15
    
    I think Alan is correct in questioning whether Digital ever had
    the kind of commitment to quality which was advertised in the poster.
    I believe that our commitment to quality was superficial, at best.
    If the engineers in a group were willing to apply (ancient technology)
    code reviews to the code, then it turned out better. For those
    groups that never reviewed each other's code, the quality was awful,
    and continues to be awful. Our hardware groups are the same way: the
    quality is spotty. Where Deming/Taguchi techniques have been applied,
    it is better. Where they haven't, is isn't.
    
    I'm reminded of a giant (15' x 30')
    billboard in Lynn, Massachusetts at the GE plant: "Where Zero Defects
    Is A Way of Life" (This was in 1971). Same superficial (media hype)
    slogan. Little implementation.
    
    (and re: .16)
    
    Our definition of quality has not changed with market conditions.
    Nor has our commitment to it. The world is changing around us, and
    customers are not going to put up with spotty quality any more. They'll
    buy from us when they must make a choice about price/performance and
    we happen to have the slightly cheaper/slightly faster machine.
    But those kind of decisions make less sense in a declining or
    flat market, when managers cannot make risky decisions. They will
    become more conservative, and want hardware and software that will
    stay up forever, not need any special care and feeding, and run
    everything flawlessly. AND FUJITSU (or pick your favorite high-quality
    competitor) WILL BE THERE. (Fujitsu is now the second largest vendor
    of software, behind IBM).
    
    If you want a measure of software quality, ask ANY VMS ENGINEER how
    much of new VMS code is code-reviewed or inspected. Then ask ANY
    LANGUAGE ENGINEER the same question. And then ask the most telling
    question: ask the same people how many engineers in these same groups
    have analyzed CSC/SPR data to find out where the defects have come
    from. I believe you'll get an answer that is very close to ZERO
    in all cases.
    
    Instead of striving for zero defects, we strive for
    zero contact between the customers and our engineers, creating more
    and more levels between them. (VMS, I think, tops the ratings in
    this endeavor. They have the CSC screening problems AND a separate
    maintenance organization, in addition to the development engineers.
    The only problems that ever bubble up to the developers are
    incredibly critical ones involving abstruse areas of VMS that,
    if broken, could cause major lawsuits, embarrassment to Digital,
    or immediate loss of a major customer. The developers haven't a CLUE
    to what sections of VMS cause the most problems in the field, or what
    design decisions they have made affect the quality of the product.)
    
    Furthermore, we make product requirements/design decisions in such
    an ad hoc (or add hack) way that it is surprising that we ever
    meet the needs of the customer. Scientific analyses of customer
    requirements (such as QFD) are extremely rare.
    
    All of this has to do with ego, of course. The Japanese have mastered
    the methodology for ego-less development of hardware and software. They
    don't feel personally affronted if a customer thinks what they produce
    is junk. They listen carefully and fix the process that produced the
    defect that caused that customer to think it was junk. We agonize
    over whether the customer is a jerk or whether the developer
    is a jerk. (Either or both may be true, BUT IT'S NOT IMPORTANT!!!).
    
    Let's hope the upper management reads these notes and heeds our
    advice; if they don't, it is to OUR peril...
    
    							Regards
    							Jon
1225.18Individual Choice or Mgt. Mandate?CURIE::DIMANThu Oct 18 1990 12:4428
    Many moons ago when I first joined this company, I was told that
    we built better products than IBM because we really listened to
    our customers.  I was told that the one of the major and most
    successfull forums for getting first hand customer feedback was
    DECUS.  DECUS was run by customers who organized the agenda,
    set up interest groups and ultimately told Digital what their
    needs were.  Not like IBM's SHARE user group which was simply
    a forum for IBM to convey its plans and messages.  But things evolved
    and many of us failed to perceive that the DECUS member who we
    classified as "user" was not necessarily the end of user of the
    computer system - but rather an implementer, solution developer,
    or system manager.  What this individual defined as quality or
    functionality was not necessarily what the other users wanted to
    or expected...
    
    The bottom line is that the DECUS mentality still lingers on and
    and our all our development groups haven't implemented 1990's
    methodologies - like QFD - to get the right kind of customer/user
    involvement in helping us build the quality products that they want.
    
    In Japan, developers can spend as much as 40 days on QFD at the
    start of a project.  I heard of an instance here where some engineers
    said they didn't have time to even attend a one-day QFD seminar!
    
    Do we implement 1990 development methodologies because they are the
    right thing to do?  Or do we have to wait for management to
    reorganize and mandate change?  
    
1225.19Anonymous reply on management measurementRANGER::JCAMPBELLThu Oct 18 1990 14:3958
Someone from MLO asked me to post this anonymously. I received it this
morning (18-Oct-1990).

To:	RANGER::JCAMPBELL
Subj:	Quality and measurement

I just read your message to Jack Smith and wanted to compliment you on
your insight.

Of course, I disagree with there being no measure for managers - out
here managers seem to be measured on their ability to make the next level
of management feel good. Those who raise issues and make the next level 
worry quickly become outcasts, not fit for raises or promotion. 
I think this method of measure is may also be used in the engineering 
group we deal with in the Mill, judging by the products we get out here. 
Remember, all of those defects sent to the customer aren't manufacturing 
defects -some are "known bugs in the CPU chip," "known bugs in the microcode," 
and "know bugs in the software." But thats allright - ship it! 
You and I know you can't test in MTBF, it has to be in the design to start 
with and then not diminished by the process. But the lack of accountability
for the field performance of a design, by the design engineer causes to many
of them to shrug off responsibility, please their boss by calling it complete,
and going on to the next project. 

Somehow the company needs to change the great god On_time_and_under_budget to
The_customers_loved_it.

There needs to be a change in attitude from valuing an extremely complex design
to valuing one that is easy and inexpensive to manufacture and that most of all,
meets the customers needs. Complex custom chip designs and HDA's with 76 parts
don't do that as well as off the shelf chips and simpler mechanical designs do.
I remember doing a competitive analysis on the PC AT a few years back, right 
there in LJ02. One of the people with me remarked, "How dare they call this 
Advanced Technology." It was all off the shelf components, but you know, when 
we got thru tearing it apart, it went together in a minute and a half flat! Try
that with any of the PCs we offered. Yes, we had lovely, elegant custom chips
an elegant proprietary bus, and our own operating system on the Pro, but it cost
an arm and a leg to build it, put it together and test it. And other peoples
applications didn't run under POS, it cost too much, and the customers didn't
want it. 

Marketing needs to be done before the design, not after the thing is built. The
Company needs to sell more - software and hardware - but I'd hate to be asked
to sell something that was designed to please an engineer's ambition or fancy,
rather than a customer's need.

I thought for a bit that Six Sigma was going to be taken seriously, and we could
pull off a turnaround in Quality like Motorola did, but I'm seeing it being 
treated as just another "buzz word" like Design for Testibility and Design for 
Manufacturability and Total Quality Control, etc. As I've remarked a number of 
times lately, there are more people here interested in building their careers 
than interested in building computers and so we all may lose. 

If you forward this, please delete the header, and just sign me

"Trying to integrate options that don't work like they are supposed to, into 
systems that don't work like they are supposed to."

1225.20Reply to .17TLE::MINAR::BISHOPThu Oct 18 1990 14:4817
    re .17, "Ask any languages engineer"
    
    I'm a languages engineer.  On one of the projects I've been on,
    we _did_ do code reviews and inspections.  After some time doing
    them, I (at least) came to the conclusion that they didn't help
    enough to be worth the time invested.  Design inspections, on the
    other hand, are valuable.
    
    On the other hand, all the projects I've been on--and the 
    other projects in the group I'm in--are very concerned with 
    maintaining quality, being responsible to our customers, and
    extracting information from the SPRs and QARs etc. we get.
    Several people in my group argued long and forcefully _against_
    having the Colorado SPR screening at all--we wanted to get ALL
    the SPRs: duplicates, dumb questions and all.  We lost that 
    argument.
    			-John Bishop
1225.21Our engineers are the best, but...RANGER::JCAMPBELLThu Oct 18 1990 17:5126
    I did say "close to zero", not zero. Obviously you and your co-workers
    had a commitment to quality which I think you probably realize is
    unusual. This is not to say that the *engineers* don't care - in most
    cases they truly want to produce quality code that is bug-free - but
    are under such pressure to get the product out that paying attention
    to quality issues is nearly impossible. In many organizations an
    engineer cannot safely propose taking extra time - either up-front or for
    testing - that would cause a "schedule slip."
    
    I have heard this sad story from several language engineers (many of
    my Digital friends are in TLE) and I believe it is endemic to the
    entire Corporation. It is certainly my own experience since I began
    working on VMS-related software five years ago.
    
    I do NOT want to denigrate the efforts of our engineers - who I
    consider some of the best in the world. It is to make constructive
    criticism of the *management* of those engineers - that because we
    are not allowed to measure the quality of the work that we do,
    because we do not feel empowered to make changes, and because our
    management does not value quality as it should, that our morale
    has deteriorated to the point where we get caught up in the same
    mentality. (How often have you heard someone, in jest, say "It
    compiles; let's ship it!").
    
    							Thanks
    							Jon
1225.22The VMS support/Maintainence groupSTAR::PARKEI'm a surgeon, NOT Jack the RipperThu Oct 18 1990 18:5331
Re .17:

Jon,
	The support group was NOT created to insulate the engineers.  In fact
	it was created to be the first line of RESPONSE to the customers.  This
	group sits next to the CSSE VMS Support group which means they now can
	walk 2-3 offices to get engineering support for a real or perceived
	problem (CLD, SPR or QAR) from a customer.

	Most in the group are expert in VMS, and in more than one area of VMS.
	But the group also has the charter to provide immediate engineering
	respond to external stimuli, and do not have project (next whenever
	version feature) responsibilities.  This also benefits VMS in general
	as they hear from unhappy customers.  Educated feedback into the VMS
	system from the customers is invaluable in determining where there
	are weak areas in the system (which can be old bugs or just the
	design center shift from a uniprocessor 780 to a cluster of 16 9000s).
        This group can also provide this.	

	Sure, future quality and all of these wonderful techniques is
	commendable, but we must also deal with those products which are
	already out there, and previous versions of products also.

	I wouldn't be at all surprised if an fast engineering response
	capability would be a benefit to other product areas.  For instance,
	there is also a DECnet "maintenance" group for similar reasons.

	By the way, I am a member of BOTH VMS Development Engineering
	and the VMS Support ("maintenance") group.

Bill
1225.23ROYALT::KOVNEREverything you know is wrong!Thu Oct 18 1990 23:4139
    I have to reply to .19 in which is said:
    
    
>   But the lack of accountability
>  for the field performance of a design, by the design engineer causes to many
>  of them to shrug off responsibility, please their boss by calling it complete,
>  and going on to the next project. 

    
    As an engineer, I object to the implication that engineers just call a
    project complete so they can move on to the next project. I felt that a
    project that I worked on was incomplete, as did other engineers, but we
    shipped anyway, because some levels of management wanted the revenues
    in a particular quarter. Two weeks later, we had the fix for the two
    major bugs, and a ROM upgrade was shipped to the customers that
    complained. (This was not as bad as it sounds. Those customers who used
    VMS only would have no problems. Those customers that used Ulrix or
    Unix could find their units unusable until the upgrade arrived.)
    The engineers, however, did NOT feel the project was complete.
    
>  Somehow the company needs to change the great god On_time_and_under_budget to
>  The_customers_loved_it.

   I agree 100%. Add "we need the profit in this quarter..."
    
    
    Now, let me add that all the levels of my management that I've met are
    better than this might lead you to believe. They are saying the right
    things, and seem to be doing them, as far as they are allowed. (I know
    some will argue that they should do the right thing anyway; but this can
    be hard to do when you don't have the money to pay the people to do
    it. Midnight projects only work if there is a project to support the
    engieers, with enough slack for them to have the time.)
    
    I now hear managers saying the right things, and I'm willing to give
    thim time to see what they have learned, and what their managers have
    learned.
    
    
1225.24You misunderstand, I think...RANGER::JCAMPBELLFri Oct 19 1990 01:2463
    re: .22
    
    Bill,
    
       I think somewhere we have a perception problem. When I hear that
    VMS has a serious backlog problem, that the CSC is swamped (SPR
    in the hundreds), and then I see a well-worn note about a DATA
    CORRUPTION problem in the VMS cache, in which the author (I did not
    save the memo) was suggesting possible strategies for finding out
    why the corruption was occurring, it seems to me that there is a
    serious problem with quality.
    
       When someone develops a maintenance group for a product, one has
    to ask the important question: "Why are we doing this?" The message
    I heard when the group was formed (again, in a memo that I did not
    keep) was *specifically* to insulate the VMS development engineers
    from the day-to-day problems - so that they could concentrate on
    what-was-to-be V6 (can't remember its code-name). This is NOT to say
    that such a move is ALWAYS a bad thing; look at what the IBM folks
    did who isolated themselves and came up with the PC. And it is true
    that when you have a product that is as complex as VMS and as complex
    to use and configure as VMS you need some screening so that developers
    don't get people calling them with SYSGEN parameter problems.
    
    What I was specifically talking about was the analysis necessary on
    the raw data to determine WHY defects occurred in VMS. When you have
    two levels of support personnel between the developers and the
    customers, the problems that the customers perceive do not get
    to the development engineers in any clear way, and there is little
    possibility that the *mechanism* for introduction of defects can ever
    be established. (When I say mechanism, I'm not talking about green
    engineers, but rather things like "data structure and its use too
    complex for mortals to understand" or "code to perform the operation
    split between many modules" or some such thing).
    
    I am gratified to hear that some SYSGEN parameters, if I understand it
    right, are going to be integrated into VMS so that they are
    self-tuning. (Not that this is new technology; TOPS-10 and TOPS-20 did
    that many years ago.) SYSGEN parameter tuning is one of the things that
    most frustrates system managers, and it's great that the VMS engineers
    heard that feedback and acted on it.
    
    But I am mortified that we seem to be doing little (or doing something,
    but too slowly) regarding the installation of software, for
    instance. VMSINSTAL just does not cut it. It should be more simple,
    and, of course, automated. And having to REBOOT your system just in order
    to add the GBLPAGES necessary to add the command for a product to
    DCLTABLES is really the last straw. How do you explain THAT to a
    mechanical engineer who got his VAX workstation to do mechanical
    engineering, not VMS system management.
    
    Again, please don't get me wrong. Neither this note, nor, I think,
    any of its replies, denigrates the efforts of any engineers at Digital,
    except perhaps to say that after an engineer is stomped-upon enough
    times for making waves, he or she becomes reticent to make waves.
    That's a healthy defense mechanism, not a shirking of responsibility to
    produce quality software. Pleasing the boss can become the primary
    motivation, rather than pleasing the customer; uncomfortable topics,
    such as low quality, are avoided. This is the indication of an
    unhealthy group or an unhealthy company.
    
    							Thanks again
    							Jon
1225.25Another anonymous replyRANGER::JCAMPBELLFri Oct 19 1990 01:3032
    Here is another anonymous posting. Since it is
    second hand, I cannot, of course, verify the validity of each and every
    detail. If the report is true, which I believe to be the case,
    it is a stark example of wholesale internal dishonesty.

    My intention here is NOT to denigrate the
    efforts of the thousands of engineers, technicians, writers, and managers
    who are honest and dedicated to quality workmanship. Rather it is to
    illustrate the fact that the lack of commitment of the entire Corporation
    to *real* quality in measurable terms, combined with our decentralization,
    has led to really serious problems. These problems must be acknowledged
    and addressed for Digital to become what we would all like it to be.


							Jon

    To:	RANGER::JCAMPBELL
    Subj:	fyi

please do not forward with my name on it.  i trust the person's account of this


i found out that in past years, DEC's customer surveys were done (at
least at one sales office) in the following manner:
1. sales and f/s people SUBMIT NAMES of customers to be polled.
2. some central org. sends out the "random" questionnaires.
3. In parallel, sales people are told by distr mgr to make sure the customer
was happy, and in one case, the sales person HELPED THE CUSTOMER FILL OUT
the form, since the distr mgr required an 8.5 (out of 10) rating or better.
4. Central office tallies and comes up with wonderful customer
satisfaction numbers.

1225.26.25 is not newsA1VAX::BARTHSpecial KFri Oct 19 1990 11:1817
.-1 is not a big surprise.

Many offices in the field operated this way for years.

By and large this fraud has been eliminated.  It has not been replaced
with a particularly valid measurement of customer satisfaction, though,
IMHO.

Like Tom Peters says, if you want people to believe you care about 
customer satisfaction then you have to measure it.  If you measure it
yearly, but you measure margin/revenue/etc monthly, words are not necessary.
People _know_ what is important to you.

Ask any sales DM who looks at their BOD numbers weekly and worries about
the customer satisfaction survey for a week or two every springtime.

K.
1225.27RICKS::SHERMANECADSR::SHERMAN 225-5487, 223-3326Fri Oct 19 1990 15:0113
    The previous notes point out a flaw in measurement systems involving
    skewing the randomness of a poll.  Sounds like that may have been
    addressed.  One good feature of Six Sigma is that it (finally)
    encourages customer feedback.  But, implementation of the program has a
    caveat in that a customer is often assumed to be one that buys our
    products.  Care needs also to be taken to recognize that we have 
    "customers" that turn away and don't buy.  Their feedback is needed for 
    the program to work.  In fact, their feedback may be even more critical 
    than that of those who are long-term customers and have a forgiving 
    attitude.  If this is to be successful, upper-management needs to push
    to hear the bad news coming from those who turn away from us.
    
    Steve
1225.28Escalation - why isn't the basement full of stairs?TLE::AMARTINAlan H. MartinSat Oct 20 1990 08:0820
Re <<< Note 1225.22 by STAR::PARKE "I'm a surgeon, NOT Jack the Ripper" >>>:

You've outlined an organizational structure where problems can flow like this:

	VMS Support/Maintainence Group
		=>
	CSSE VMS Support Group
		=>
	VMS Engineering

I have a question: if a CSC employee has a problem with VMS which they can't
solve by themselves, and which they cannot defer by entering an SPR (or QAR) or
a query in a product VAX Notes conference, which of the above 3 organizations is
their first line of defense - who are they supposed to contact first?

(I assume that the assertion "The [VMS] support[/Maintenance] group was ...
created to be the first line of RESPONSE to the customers" is inaccurate, in
that when a customer calls their normal CSC hot line number, they are not
connected directly to a support group member).
				/AHM/THX
1225.30networking and layering...BIGUN::ANDERSONThe Unbearable Lightness of BeingMon Oct 22 1990 03:125
    I wonder if the folks that did the layered model for VMS etc have ever
    looked at the new Digital Press book "5th Generation Management" by
    Charles Savage? It may suggest some enhancements ... one good example
    is the VMS Partners program : designed to cut through all that and get
    the field, engineering and marketing together.
1225.31RE .28:STAR::PARKEI'm a surgeon, NOT Jack the RipperMon Oct 22 1990 19:4931
>You've outlined an organizational structure where problems can flow like this:
>
>	VMS Support/Maintainence Group
>		=>
>	CSSE VMS Support Group
>		=>
>	VMS Engineering

CSC contacts CSSE:

	Your flow SHOULD read:

	CSC/GIA/SPR's etc
		=>
	CSSE VMS Support Group
		=>
	VMS Engineering Support/Maintainence Group
		Which is VMS Engineering
		There is no additional LINE of communication needed, it's
		just that VMS/VSE's "project" is response to problems which
		require engineering involvement.

		This group has full access to the rest of the development
		engineers and we can call on them if needed.  We do not operate
		in isolation from ZKO3-4 (or wherever) but we live in
		conjunction with CSSE/VSG (physically).

		To correct a possible misunderstanding of my response, we do not
		replace the CSC, but, we do guarantee engineering availability
		to CSSE and other groups.
1225.32UntanglementTLE::AMARTINAlan H. MartinMon Oct 22 1990 22:2511
Re .31:

>	Your flow SHOULD read:
...
>	CSSE VMS Support Group
>		=>
>	VMS Engineering Support/Maintainence Group

Sorry, when you said "they can now walk 2-3 offices to get engineering support",
I misunderstood who "they" referred to.
				/AHM
1225.33SA1794::CHARBONNDbut it was a _clean_ missMon Oct 29 1990 13:3710
    re .27 One small nit - Six Sigma includes one very important step-
    identifying *your* customers. The people who buy DEC products are
    everybody DECcie's customers, but anybody for whom you provide goods or
    services is *your* customer. Your manager is a 'customer', your 
    employees are 'customers', the guy in the next department who
    depends on you to do your job is your 'customer'. If all *your*
    customers aren't satisfied, ultimately DEC's customers will get
    unsatisfactory products.
    
    A 'customer' is anybody who needs for you to do quality work.
1225.34Jon's memo getting some field visabilityTODD::WARNOCKTodd Warnock @CBOThu Nov 01 1990 00:3710
    Jon's message (.0) is being circulated in the field, if nowhere else. 
    I received a copy from my Sales Support Unit Mgr, who got it from
    District F/A, who got it from US Business Controls, who got it from
    someone in Personnel.
    
    The headers are "An Engineer's Advice to Jack Smith."
    
    Interesting circulation !
    
    Todd
1225.35Quality is free -- and profitableWORDY::JONGSteve Jong/T and N Writing ServicesThu Nov 22 1990 14:3961
    This ongoing discussion of quality has been interesting.  I highly
    recommend Philip Crosby's book _Quality is Free_ to anyone seriously
    interested in quality improvement.  As the title of the book states,
    Crosby argues that quality is not an extra expense or an extra effort,
    but a way to improve products *without* cost.  Quality, he says,
    directly reduces the cost of sales and support, and thus increases
    profits.  That sounds good to me.
    
    Having been exposed to the Crosby Quality Process at another company, I
    have felt that the Digital approach to quality (quality is customer
    satisfaction) has flaws.  For one thing, it seems to foster an attitude
    that quality is something you can paint on at the end.  Quality, the
    attitude says, starts at field test, when customers begin to react to
    the product and you make adjustments to make them happy.  As we know,
    the longer you wait to fix problems, the more expensive it becomes, and
    those expenses come at the cost of profits.  It also means that some
    "quality improvements" become too hard to do at such a late date, and
    are deferred until a subsequent release.
    
    I've done a little home improvement.  I know that each layer of a wall
    corrects the errors in the previous layer: the wallboard covers
    mistakes in framing, the plaster covers mistakes in wallboarding, the
    finish carpentry covers mistakes in plastering, and the paint covers
    mistakes in finish carpentry.  But it gets more and more difficult to
    cover up mistakes as you go on, and the final result can be a wall that
    looks good but begins to crack, a floor that squeaks, maybe even a
    ceiling that falls down one day.
    
    Another problem with quality as customer satisfaction is that a
    customer who changes his mind can throw you for a loop.  If you've been
    developing a product for two years, and in the meantime a competitor
    comes out with something that does things a little differently, you can
    suddenly find yourself not satisfying customers.  Now they want the
    product in red.  You scurry to make adjustments.  Then another
    competitor releases a product that's blue...
    
    Crosby discusses "quality" at length, and domes up with a workable
    definition: quality is conformance to requirements.  Unlike idealistic
    definitions of quality, this is something you can measure and make
    work.  In the customer-satisfaction model, a Jaguar is better than a
    Hyundai, because customers generally (all but universally, I'd bet!)
    are satisfied with the Jag and wistful about the Hyundai.  Yet the
    Hyundai could be perfectly made, defect-free, and utterly reliable,
    while the Jag might be a lemon.  Which is the quality car?  By our
    measurements, the Jag; by Crosby, the Hyundai -- because the Hyundai is
    closer to the specs of the perfect Hyundai by being defect-free than
    the Jag is to the specs of the perfect Jag by being a lemon.
    
    Finally, after the product ships and the SPRs start coming in, what are
    we doing?  By the current thinking about quality, by fixing bugs we are
    making the product better, adding quality.  The more problems found and
    fixed, the higher the quality, right?  Of course, most customers
    aren't reaping the benefits of these fixes; they're already stuck with
    the copy they have.  Field fixes are the most expensive of all to
    implement.  By the Crosby definition, a flood of SPRs only shows the
    *lack* of quality of the product as it went out the door: the more
    bugs, the lower the quality.  That only makes sense.
    
    Beware, then, of the declaration that "it's time to add on quality." 
    You're in for an expensive slip.  While you're waiting around, get
    Crosby's book.
1225.36MU::PORTERspam spam spam spamFri Nov 23 1990 00:346
    Absolutely.  Quality is quite simple - it means designing and
    implementing the bloody thing correctly to start with.  It doesn't
    seem to be a difficult concept to me at all.
    
    (Now, it's a different question as to how we achieve that within 
     today's DEC)
1225.37RICKS::SHERMANECADSR::SHERMAN 225-5487, 223-3326Wed Nov 28 1990 16:1912
    Customer demands are a moving target.  There is always a lag between
    what new thing the customer wants and what we can provide.  If the lag
    is too long the customer may walk and get what is wanted from a
    competitor.  The only solution that I can see for responding to this is
    to foster greater creativity.  Without this, quality programs and Six
    Sigma will only help you to create products that your customers wanted
    yesterday.  If we don't do something more to emphasize innovation we'll
    have to change our slogan to "Digital finally has it now."
    
    
    
    Steve