TL 9000 Quality System

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TL 9000 Quality System

• The Telecommunications Industrys Newly
  Accredited Industry-Sector Standard
• Donna Thomas
• 301.606.6667
• donna.thomas_at_roxtel.com

2

Business Problem

• Suppliers are subject to multiple and overlapping
  standards resulting in increased costs
• Cost of Poor Quality for software and hardware
  are high for both suppliers and buyers
• Joint problem solving needs better metrics

3

Beliefs

• FOUNDATIONS
• Joint Efforts can Improve Telecom Quality
• Standardized Approach to Quality Management
• Visible Metrics

• RESULTS
• On-Time Delivery
• Defect Elimination
• Superior Products
• Reduced Life-Cycle Costs
• Increased Market Share
• Cycle Time Reduction

4
TL 9000 - What is it?

• TL 9000 is a common set of quality system
  requirements and metrics designed specifically
  for the Telecom industry, encompassing ISO 9001
  and other best practices (adders)
• TL 9000 Quality System Requirements
• - Hardware, Software Services Best Practices
• TL 9000 Quality System Metrics
• - Well defined Comparable Metrics

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TL 9000 QMS Philsophy

• Raise the bar on ISO 9000 with increased emphasis
  on
• Quality planning
• Executive involvement
• Design
• Reliability
• Lifecycle management
• Software and Services
• Continuous improvement
• Customer/Supplier communication
• Industry-wide metrics usage

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The Goals of TL 9000

• Expected benefits are
• Continuous improvement of service to subscribers
• Enhanced customer-supplier relationships
• Standardization of quality system requirements
• Efficient management of external audits and site
  visits
• Uniform cost and performance-based metrics
• Overall cost reduction and increased
  competitiveness
• Enhanced management and improvement of suppliers
  performance
• Industry benchmarks for TL 9000 metrics

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Why a Telecommunications Specific Standard?

• Numerous quality system standards being used
• Over 600 quality system standards
• Bellcore alone had over 25 standards covering
  quality and reliability
• Numerous ways to report data
• High cost of poor quality (COPQ) in the
  telecommunications industry

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Main Sources for TL 9000

SEI CMM
ISO 12207
ISO 9000-3
TL 9000 QSR Metrics
ISO 9001 1994
GR179,1252,1202
RQMS GR929
Existing Report Cards
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Who Developed the Standard?

• Initiated by a group of telecommunications
  service providers (TSPs) in the Spring of 1996
• Bell Atlantic
• BellSouth
• SBC Companies
• Pacific Bell
• Southwestern Bell

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Who Developed the Standard? (cont.)

• From that meeting of the minds, the Quality
  Excellence for Suppliers of Telecommunications
  Leadership (QuEST) Forum was formed
• Began work in October 1997
• Aimed at standardization of quality requirements
  within the TSP supply chain

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• Now 95 companies participate in the QuEST Forum
• Represents
• TSPs
• Tier 1 and 2 suppliers

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QuEST Forum (cont.)

• Participating countries
• U.S. ? Canada
• Europe ? Japan
• Korea ?? Brazil
• South Africa ? Israel

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QuEST Forum Membership(See QuEST home page for
latest membership list)

• Service Providers
• ATT
• Bell Atlantic
• Bell Canada
• BellSouth
• Boston Communications Group
• British Telecommunications
• GTE
• Infonet Services Corp.
• JD Services
• Network Access Solutions
• SBC
• Sprint
• Telkom South Africa
• US West
• WorldCom

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QuEST Forum Membership(See QuEST home page for
latest membership list)

• Suppliers
• 3COM
• 3M Telecom Systems Division
• ADC Telecommunications, Inc.
• ADTRAN
• Advanced Fiber Communications
• Agilent Technologies
• Alcatel
• Antec
• Artesyn Technologies
• Astec APS
• BCI Commcor
• Bookham Technology Ltd.
• C-COR.net
• Celestica
• Charles Industries
• Chatsworth Products, Inc.
• Ciena Corporation
• Cisco Systems

• CTDI
• Cyras Systems
• Denso Wireless Systems America, Inc.
• Efficient Networks
• Ericsson
• Expo Power Systems
• Flextronics International
• Fujitsu Network Communications, Inc.
• Gelanayre Technologies
• Graybar Electric
• GTT Electronics
• Harris Corporation
• Hekimian Laboratories
• Hitachi Data Systems
• KARLEE
• Kestrel Solutions
• Krone
• Lantor USA
• LeeMAH Electronics

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QuEST Forum Membership(See QuEST home page for
latest membership list)

• Suppliers
• Majestic Management, Inc.
• Manly-Williams
• Marconi Communications
• Marlow Industries
• Masterwork Electronics, Inc.
• Mitsubishi Wireless Communications
• Motorola
• NEC America
• Network Cable Products
• Newbridge Networks Corporation
• Nokia Mobile Phones
• Nortel Networks
• PairGain Technologies, Inc.
• Pirelli Cables and Systems, LLC
• Pliant Systems
• Pulsecom
• Qualcomm

• RCI Systems
• Siecor
• Siemens ICN
• Sumitomo Electric Lightwave
• Superior Telecommunications
• Symmetricom, Inc.
• Tekelec
• Telamon Technologies Corporation
• telcobuy.com
• Telcordia Technologies
• TeleCentric
• Tellabs Operations, Inc.
• Telmar Logistics, Inc.
• Telpro Technologies
• Teltrend
• Troncom Corporation
• Unisys
• Westell, Inc.
• Xerox Corporation

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TL 9000 Formally Arrived to the World!

• January 25, 2000
• Pilot participants that had successfully
  completed their registration audits were
  announced
• Registrars that had satisfied the requirements
  for accreditation were announced

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Since Then. . .

• 41 companies have since become TL 9000 certified
• SBC was the first company to gain certification

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Targets for TL 9000

• Approximately 200 TSPs worldwide
• Approximately 1,000 Tier 1 suppliers nationwide
• Approximately 10,000 Tier 2 suppliers nationwide
• US telecommunications market is 250 billion
• Annual purchases from suppliers 50-100 billion

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Key Differences of TL 9000 Over ISO 9001

• Requirements are more specific
• More focus on planning
• Quality planning
• Project planning
• Configuration management planning
• Product planning
• Customer satisfaction
• Quality improvement requirements
• Customer-supplier communication
• Uses a product life-cycle model

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Where ISO 9000 Does Not Meet Telecom Needs

• Reliability and associated costs
• Software development
• Services
• Continuity

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TL 9000s Differences of Approach Over ISO 9001

• Metrics measure performance
• Defined
• Tracked
• Reported
• Emphasis on use of data to drive action
• Problem identification
• Failure analysis
• Improvement

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Expectations of TL 9000

• Consolidate various industry requirements
• Reduce problems caused by multiple requirements
  and audits
• Confusion
• Costs
• Inconsistent application of requirements to
  suppliers by customers
• Standardize reporting and use of supplier
  performance data via defined metrics
• Increased standardization globally

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Expectations of TL 9000 (cont.)

• Reduce product quality problems and COPQ
• Approximately 750 million annually for hardware
  alone in the US
• Approximately 10-15 billion worldwide
• Common language across the industry - nationally
  and globally
• Quality improvement
• Enhanced customer-supplier relationships
• Improve industry performance overall

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TL 9000 Structure

• It is a three-legged stool
• Must comply with ISO 9001 standards
• Must comply with TL 9000 Quality System
  Requirements
• Hardware, software, and services requirements
• Administration
• Must comply with TL 9000 Quality System Metrics
• Hardware, software, and services requirements
• Defines responsibilities
• Rules (counting, submission, terminology)

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The TL 9000 Model

QuEST Forum Focus Area
Book 1
International Standard ISO 9001
T L 9 0 0 0
Common TL 9000 Requirements
Hardware Specific Requirements
Software Specific Requirements
Services Specific Requirements
Common TL 9000 Metrics
Book 2
Hardware Specific Metrics
Software Specific Metrics
Services SpecificMetrics
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Metrics

• Most leveragable product of the Forum
• Unique to TL 9000 Quality System
• Required for TL 9000 Registration
• Provides TL 9000 Quality System Feedback
• Comparative Benchmarks - Best in Industry,
  Industry Mean Worst in Industry

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Why Metrics?

• Forces accountability
• Provides a common language
• Gives a consistent measure across industry
• Provides a means for industry comparison
• Develops management information
• Provides objective evidence
• Identifies improvement opportunities
• Enables effective use of resources
• Provides benchmarking opportunities

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TL 9000 Metrics Strategy

• Vital Few Well-defined
• Useful to Customers
• measurable
• comparable
• Useful to Suppliers
• used in decision making and continuous
  improvement
• subset of suppliers internal metrics
• Consolidate Numerous Supplier Metrics
• Relevant to Customer

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TL 9000 Metrics

• TL 9000 Metric Applicability (H/S/V)
• .Number of Problem Reports (NPR) H,S,V
• .Problem Report Fix Response Time(FRT) H,S,V
• .Overdue Problem Report Fix Respon. (OFR) H,S,V
• .On Time Delivery (OTD) H,S,V
• .System Outage Measurement (SO) H,S
• .Return Rates (RR) H
• .Software Update Quality (SWU) S
• .Release Application Aborts (RAA) S
• .Corrective Patch Quality (CPQ) S
• .Feature Patch Quality (FPQ) S
• .Service Quality (SQ) V

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Customer/Supplier Metrics Relationship

• Supplier completes required TL 9000 metrics
• Supplier receives TL 9000 certificate
• Supplier notifies customer of TL 9000
  registration on ASQ web site (optional)
• Supplier meets with key customers
• provides customer specific reports, with
  industry norms from UTD Quarterly Reports
• establish joint improvement teams

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Metrics Reporting - Data Flow

• Customer supplies pertinent data to supplier
• Supplier aggregates customer data
• Supplier provides data by product category to
• Metrics Administrator (University of Texas at
  Dallas) for processing
• Its management (for internal use)
• Customers (based on contractual agreements)

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Metrics Reporting - Data Flow (cont.)

• University of Texas at Dallas (UTD)
• Processes data in a double blind environment
• Provides summarized data to Forum Administrator
  (ASQ)
• Forum Administrator provides
• Summary of all data, by product categories
  (compared results)
• Does not provide any company specific results

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Product Categories

• Supplier shall identify which product category(s)
  apply
• Supplier shall report metrics for applicable
  product categories

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Sample Product Category Definition
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Sample Reported Datas Format
Year and Month YYYMM Reporting
ID Provided by Forum
Administrator Product Category Code (From
Appendix A) Metric Methodology TL
9000 Customer Base Either (1)
or (2) Forum Members Normalization Factor
S or none Annualization Factor Afactor
(See Glossary.)Metric IdentifierNPR NPR1
Numerator Np1 NPR2 Numerator
Np2 NPR3 Numerator
Np3 NPR4 Numerator Np4
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What Does It Mean?
NPR - Plot Reporting
0.9
0.8
0.7
0.6
Problem Reports per System
0.5
0.4
0.3
0.2
0.1
0.0
1
2
3
4
Quarters
Major (NPR2)
Critical (NPR1)
Minor (NPR3)
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TL 9000 Added Requirements

• Types of adders
• Common (C)
• Hardware/Software (HS)
• Hardware/Services (HV)
• Hardware (H)
• Software (S)
• Services (V)

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Key Thrust of TL 9000 Requirement Adders

• Customer orientation
• Customer / Supplier Communication
• Planning for Quality
• Life cycle management
• Continual Quality Improvement
• Software Hardware development
• Specialized service functions such as
  installation and engineering
• Metrics requirements

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Product Realization Phases

83 Requirements Adders embedded into ISO 9001 to
cover all Product Realization Phases
Life Cycle Model
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TL 9000 Adders to ISO 90001994
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TL 9000 Requirements/Notes added to DIS 90012000
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Example of Quality System Requirements
Quality Policy 4.1.1
The suppliers management with executive
responsibility shall define and document its
policy for quality, including objectives for
quality and its commitment to quality. The
quality policy shall be relevant to the
suppliers organizational goals and the
expectations and needs of its customers. The
supplier shall ensure that this policy is
understood, implemented, and maintained at all
levels of the organization.
4.1.1.C.1 Quality Objectives - Objectives for
quality shall include targets for the TL 9000
metrics defined in the TL 9000 Quality System
Metrics handbook. C-Note A Management with
executive responsibility should demonstrate their
active involvement in long- and short-term
quality planning.
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Documentation Impact

• New procedures might be required
• Some adders affect exiting ISO 9001/2 procedures
• New plans required
• Some new adders affect existing ISO 9001/2
  plans/planning requirements
• Stringent record keeping

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Documentation Impact (cont)

• Key areas are
• 4.2 Quality Planning
• 4.4 Design Control
• 4.19 Service
• 4.21 Quality Improvement and Customer Satisfaction

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Key Points of New/Revised Procedures Required by
TL 9000
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Key Points of New/Revised Procedures Required by
TL 9000 (cont.)
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TL 9000 Administration

• Scope of registration
• May apply to hardware, software, services or
  combination thereof
• May include an entire company, an organizational
  unit, a facility(s), or a limited, defined,
  product line
• Will be clearly defined within the certificate

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TL 9000 Administration (cont.)

• TL 9000 is not a stand-alone certification
• An organization must attain and maintain their
  ISO 9000 certification before they can be
  certified to TL 9000

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Impact of TL 9000 to Companys Management

• Provides metrics to use
• Every project has detailed plans
• Generates an avenue to get customers and
  subcontractors involved

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Audit Requirements

• Audits are performed by a third-party auditor
  (who cannot consult or help an organization
  become compliant, per the standard unlike
  ISO9000)
• After achieving initial certification, 100 of
  the TL 9000 elements must be assessed within a
  3-year period

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Audit Days Table
Defines the minimum number of audit days needed
to achieve maintain TL 9000 reg.
?
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Level of Effort Required
53
Timelines
Phase 1 Planning and Gap Analysis
Phase 2 System Development
Phase 3 System Implementation
Phase 4 Review and Improve Commence Metrics Data
Submission
Phase 5 Compliance and System Maintenance
Immature System Project Timeline 12-18 months
Currently CSQP 9001 Compliant 6-9 months
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TL 9000 Data Costs

• To only contribute to the benchmark data
  300/year
• To become a QuEST Forum member 10,000/year
• To only read benchmark data 40,000/year
• NOTE This does not include the cost to
  implement this standard to become compliant, or
  the registration process.

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Value of TL 9000 to Your Organization

• Continuous Improvement of the Products/Services
  Quality Through a Collaborative Effort, Using a
  Common Set of Quality Requirements and Metrics
  Will Help You
• Improve Quality and Reliability of
  Products/Services
• Reduce Your Costs
• Meet Customer Demands for Excellence
• Introduce New Technologies and Suppliers
• Manage Your Supplier Report Card Process
• Meet Global Demands

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Transition Plan for Telecom Industry Companies

• Encourage your organization (within to review and
  pursue TL 9000 registration) to become and stay a
  vital player in the telecom industry in most
  cases registration is not required, but
  compliance will be.
• Use of TL 9000 RFP and contract language to
  transition your supplier base to TL 9000
• Determine the compliance level of suppliers and
  transition contract language accordingly
• Address Major Issues in Organizational Transition
  Plan
• Training Applicability Internal/External Roll
  Out Plan Report Card Streamlining
• Support transition to TL 9000 metrics for your
  performance based supplier report cards

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TL 9000 Impact

• TL 9000 has Raised the Bar for quality
  performance in the telecommunications industry
• TL 9000 Metrics will facilitate Clearing of the
  Bar for the telecommunications industry
• It will take a lot of practice and process
  improvement to achieve success.
• These requirements/metrics will evolve/improve
  over time

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After All This Effort. . .

• If compliant, the company can proudly compete,
  thrive, and survive the telecom marketplace.
• If registered, the company can proudly display -

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FAQs

Q How do I get a copy of TL 9000? A Copies
are available through ASQ [phone] and the
QuEST Forum Web Page www.questforum.org Q How
can I find assistance in the transitioning of my
business operations to this standard? A Contact
me at 301.606.6667 or e-mail me at
donna.thomas_at_roxtel.com