TL 9000 Quality System

1. TL 9000 Quality System The Telecommunications Industry�s Newly Accredited Industry-Sector Standard Donna Thomas 301.606.6667 donna.thomas@roxtel.com

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4. 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

5. 5 TL 9000 QMS Philsophy

6. 6 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 supplier�s performance Industry benchmarks for TL 9000 metrics Translated, this means that the consumer receives better products and services. This benefit statement came right out of the mouth of the QuEST Forum. Definition of customer and supplier Customer is a current or potential buyer/user of products or services. A supplier is a company that provides products to the customer. Translated, this means that the consumer receives better products and services. This benefit statement came right out of the mouth of the QuEST Forum. Definition of customer and supplier Customer is a current or potential buyer/user of products or services. A supplier is a company that provides products to the customer.

7. 7 The globalization of the telecommunications industry is a major driver for a single set of international telecommunications quality requirements. The telecommunications industry has many requirements. Various companies place different requirements on their suppliers, and within the major trading blocs of Europe and the United States, there are different approval processes for telecommunications products. Also, alternative practices in how data is collected can vary metric data between Europe and the United States. Also, telecommunications is a �high volume industry� that demands high reliability. TL 9000 steps up to the new competitive environment that has emerged in the last few years within the industry. The globalization of the telecommunications industry is a major driver for a single set of international telecommunications quality requirements. The telecommunications industry has many requirements. Various companies place different requirements on their suppliers, and within the major trading blocs of Europe and the United States, there are different approval processes for telecommunications products. Also, alternative practices in how data is collected can vary metric data between Europe and the United States. Also, telecommunications is a �high volume industry� that demands high reliability. TL 9000 steps up to the new competitive environment that has emerged in the last few years within the industry.

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10. 10 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 TL 9000 is an opportunity to provide a consistent structure to quality management system requirements. It has been designed to eliminate redundant, non-value-added requirements. In this way, it is expected to see improvements in life cycle costs and continual quality improvements of the products and services.TL 9000 is an opportunity to provide a consistent structure to quality management system requirements. It has been designed to eliminate redundant, non-value-added requirements. In this way, it is expected to see improvements in life cycle costs and continual quality improvements of the products and services.

11. 11 Now 95 companies participate in the QuEST Forum Represents: TSPs Tier 1 and 2 suppliers QuEST Forum has developed the standard via work groups. Although the forum meets quarterly, the work groups meet monthly to continue progress. QuEST Forum uses a consensus approach to the development of TL 9000. One of the hallmarks of the telecommunications industry is to cooperate, and they thought that was the way each company should deal with their business partner.QuEST Forum has developed the standard via work groups. Although the forum meets quarterly, the work groups meet monthly to continue progress. QuEST Forum uses a consensus approach to the development of TL 9000. One of the hallmarks of the telecommunications industry is to cooperate, and they thought that was the way each company should deal with their business partner.

12. 12 QuEST Forum (cont.) Participating countries: U.S. ? Canada Europe ? Japan Korea ?? Brazil South Africa ? Israel

13. 13 QuEST Forum Membership(See QuEST home page for latest membership list)

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16. 16 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 This was the day it was announced by the QuEST Forum that their members had accepted the TL 9000 Requirements Handbook and had accepted TL 9000 as an industry standard. This was also the day the the QuEST Forum�s new Board of Directors met.This was the day it was announced by the QuEST Forum that their members had accepted the TL 9000 Requirements Handbook and had accepted TL 9000 as an industry standard. This was also the day the the QuEST Forum�s new Board of Directors met.

17. 17 Since Then. . . 41 companies have since become TL 9000 certified SBC was the first company to gain certification TL 9000 is expected to energize the quality improvement activities. To a degree, quality is cyclical and TL 9000 is expected to provide a new impetus and focus on quality as it relates to cost improvement. 07-17-00 It is stated that 11 or 12 companies have become certified, only because no one seems to know the number. During the class, several people had radically different answers- from 11 or 12 to 41. However, the person who said 11 or 12 is very well respected in the TL 9000 world, so I�m going with this number.TL 9000 is expected to energize the quality improvement activities. To a degree, quality is cyclical and TL 9000 is expected to provide a new impetus and focus on quality as it relates to cost improvement. 07-17-00 It is stated that 11 or 12 companies have become certified, only because no one seems to know the number. During the class, several people had radically different answers- from 11 or 12 to 41. However, the person who said 11 or 12 is very well respected in the TL 9000 world, so I�m going with this number.

18. 18 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 Obviously, the global market is estimated to be much larger.Obviously, the global market is estimated to be much larger.

19. 19 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 TL 9000 was developed because all industries can�t take ISO 9000 verbatim and say, �this applies� - there is more to their industry than in covered in a single standard. The life-cycle model is a biggy in TL 9000. This is such an important requirement that a whole module in the training course was taken up talking about the LCM, opposed to the other plans like the project plan, the contingency plan, the test plan, etc., which were not talked about in depth during the class. I�m assuming that these plans will be covered in much more detail during a class that talked about implementing TL 9000 rather than auditing TL 9000.TL 9000 was developed because all industries can�t take ISO 9000 verbatim and say, �this applies� - there is more to their industry than in covered in a single standard. The life-cycle model is a biggy in TL 9000. This is such an important requirement that a whole module in the training course was taken up talking about the LCM, opposed to the other plans like the project plan, the contingency plan, the test plan, etc., which were not talked about in depth during the class. I�m assuming that these plans will be covered in much more detail during a class that talked about implementing TL 9000 rather than auditing TL 9000.

20. 20 Where ISO 9000 Does Not Meet Telecom Needs Reliability and associated costs Software development Services Continuity Reliability and associated costs. TSPs and their suppliers place greater emphasis on reliability because of customer demands placed on the communications industry. Hardware, software, and services all must demonstrate a level of reliability not addressed in ISO 9001 and there is a need to assess costs associated with obtaining those levels of reliability. Software - ISO 9001 lacks requirements and guidance needed for software development, which is an integral part of most telecommunication product and service offerings. Services - Installation and engineering activities that are integral to the customer-supplier relationship in the telecommunications industry are not adequately addressed in the 20 clauses of ISO 9001. The coverage of services in Clause 4.19, Servicing, of ISO 9001 is extremely limited. The TSPs expect consistency, reliability and competency in their installations and rely on supplier consulting services to engineer the equipment they purchase. Continuity - With most products a customer purchases, there is a short time span t the interaction between customer and supplier. There may be a warranty involved, but it is really a remote relationship where interaction only occurs if something is wrong with the product. In most cases, the customer buys the product, and the relationship relative to that product ends with delivery or installation.Reliability and associated costs. TSPs and their suppliers place greater emphasis on reliability because of customer demands placed on the communications industry. Hardware, software, and services all must demonstrate a level of reliability not addressed in ISO 9001 and there is a need to assess costs associated with obtaining those levels of reliability. Software - ISO 9001 lacks requirements and guidance needed for software development, which is an integral part of most telecommunication product and service offerings. Services - Installation and engineering activities that are integral to the customer-supplier relationship in the telecommunications industry are not adequately addressed in the 20 clauses of ISO 9001. The coverage of services in Clause 4.19, Servicing, of ISO 9001 is extremely limited. The TSPs expect consistency, reliability and competency in their installations and rely on supplier consulting services to engineer the equipment they purchase. Continuity - With most products a customer purchases, there is a short time span t the interaction between customer and supplier. There may be a warranty involved, but it is really a remote relationship where interaction only occurs if something is wrong with the product. In most cases, the customer buys the product, and the relationship relative to that product ends with delivery or installation.

21. 21 TL 9000�s 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 The requirement of reportable metrics is a big addition over ISO 9001. Once the organization starts collecting, posting, and reading the benchmarked metrics, it is expected to use these metrics to improve their processes. This improvement is auditable.The requirement of reportable metrics is a big addition over ISO 9001. Once the organization starts collecting, posting, and reading the benchmarked metrics, it is expected to use these metrics to improve their processes. This improvement is auditable.

22. 22 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 Consolidate various industry requirements goes back to page 7. As everyone was doing their own thing, there was not standard set of metrics that organizations could compare their results against. TL 9000 provides that baseline. TL 9000 defines specifically audit days. This will be talked about on page 51.Consolidate various industry requirements goes back to page 7. As everyone was doing their own thing, there was not standard set of metrics that organizations could compare their results against. TL 9000 provides that baseline. TL 9000 defines specifically audit days. This will be talked about on page 51.

23. 23 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 Improving customer-supplier relationships is one of the main goals of TL 9000. This is another auditable point - an organization has to prove that they are bringing their customer in when decisions that affect them are made.Improving customer-supplier relationships is one of the main goals of TL 9000. This is another auditable point - an organization has to prove that they are bringing their customer in when decisions that affect them are made.

24. 24 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) TL 9000 incorporates ISO 9001 word for word and then adds some specific or prescriptive areas that are important for the telecommunications industry, particularly a metrics dimension to the standard.TL 9000 incorporates ISO 9001 word for word and then adds some specific or prescriptive areas that are important for the telecommunications industry, particularly a metrics dimension to the standard.

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27. 27 The Metrics Working Group wanted to keep the metrics simple, so it concentrated on the vital few. Having numerous metrics to fit everyone�s measurement philosophy would negate the benchmarking efforts of the telecommunications industry. It was also the team�s objective that the selected metrics must be useful to customers (e.g., measurable and benchmarkable). The metrics also needed to be related to suppliers The Metrics Working Group wanted to keep the metrics simple, so it concentrated on the vital few. Having numerous metrics to fit everyone�s measurement philosophy would negate the benchmarking efforts of the telecommunications industry. It was also the team�s objective that the selected metrics must be useful to customers (e.g., measurable and benchmarkable). The metrics also needed to be related to suppliers

28. 28 TL 9000 Metrics Strategy

29. 29 TL 9000 Metrics

30. 30 Customer/Supplier Metrics Relationship

31. 31 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) A company must collect their metrics information monthly, but that information is submitted every 3 months to UTD. Although they are submitting quarterly, they will provide 3 months of data. A company must collect their metrics information monthly, but that information is submitted every 3 months to UTD. Although they are submitting quarterly, they will provide 3 months of data.

32. 32 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 The information that is sent to UTD is kept extremely confidential. The information is e-mailed in, and if an organization gets an e-mail address outside of their company�s, there is no way for the UTD to identify who is sending in the information. The Forum Administrator provides the �Reporting ID� so the UTD does not even know who is providing the information. This is the other half of the �double blind� environment. The UTD has backup servers dotted around the country, so there is no way that a hacker can infiltrate the server and get an organization's metric information. Everything is kept very secure. The information that is sent to UTD is kept extremely confidential. The information is e-mailed in, and if an organization gets an e-mail address outside of their company�s, there is no way for the UTD to identify who is sending in the information. The Forum Administrator provides the �Reporting ID� so the UTD does not even know who is providing the information. This is the other half of the �double blind� environment. The UTD has backup servers dotted around the country, so there is no way that a hacker can infiltrate the server and get an organization's metric information. Everything is kept very secure.

33. 33 Product Categories Supplier shall identify which product category(s) apply Supplier shall report metrics for applicable product categories A company�s registration indicates the specific product categories. The TL 9000 Product Category Table indicates the required metrics for each product. Each product category has one or more required TL 9000 metric required for registration.A company�s registration indicates the specific product categories. The TL 9000 Product Category Table indicates the required metrics for each product. Each product category has one or more required TL 9000 metric required for registration.

34. 34 Sample Product Category Definition This is just the first page of a table that is 12 pages long. Table A-1 - Product Category Definitions helps a company determine what category they are gathering information about. This is just the first page of a table that is 12 pages long. Table A-1 - Product Category Definitions helps a company determine what category they are gathering information about.

35. 35 Sample Reported Data�s Format You would have to go to Table A-2 - Metric Applicability Table (Normalized Units) to determine which report to use per product category.You would have to go to Table A-2 - Metric Applicability Table (Normalized Units) to determine which report to use per product category.

36. 36 What Does It Mean? This slide has been put in to emphasis a point. It is recommended that a statistician be available to a TL 9000 certified organization that can look at the trended information and be able to interpret what is going on. Then the organization is required to act on that information.This slide has been put in to emphasis a point. It is recommended that a statistician be available to a TL 9000 certified organization that can look at the trended information and be able to interpret what is going on. Then the organization is required to act on that information.

37. 37 TL 9000 Added Requirements Types of �adders� Common (C) Hardware/Software (HS) Hardware/Services (HV) Hardware (H) Software (S) Services (V) We have now moved to TL 9000 Quality System Requirements, Book 2 and are talking about the added requirements. In this book is found a common set of supplemental quality system requirements. We have now moved to TL 9000 Quality System Requirements, Book 2 and are talking about the added requirements. In this book is found a common set of supplemental quality system requirements.

38. 38 Key Thrust of TL 9000 Requirement Adders

39. 39 Product Realization Phases

40. 40 TL 9000 Adders to ISO 9000:1994

41. 41 TL 9000 Requirements/Notes added to DIS 9001:2000 This table maps the added requirements to the existing ISO 9001 requirements. Please note that there is an ISO 9001 clause 4.21 on this table. This table maps the added requirements to the existing ISO 9001 requirements. Please note that there is an ISO 9001 clause 4.21 on this table.

42. 42 Example of Quality System Requirements

43. 43 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

44. 44 Documentation Impact (cont) Key areas are: 4.2 Quality Planning 4.4 Design Control 4.19 Service 4.21 Quality Improvement and Customer Satisfaction

45. 45 Key Points of New/Revised Procedures Required by TL 9000

46. 46 Key Points of New/Revised Procedures Required by TL 9000 (cont.)

47. 47 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

48. 48 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 If an organization has their ISO 9000 certification, attains their TL 9000 certification, then loses their ISO certificate, they loose their TL certificate as well.If an organization has their ISO 9000 certification, attains their TL 9000 certification, then loses their ISO certificate, they loose their TL certificate as well.

49. 49 Impact of TL 9000 to Company�s Management Provides metrics to use Every project has detailed plans Generates an avenue to get customers and subcontractors involved

50. 50 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

51. 51 Audit Days Table Why do we need to have an actual table published that lays out specifically how many days per audit? Because, the registrar market is so competitive out there that the companies try to underbid each other. One way to come in with a lower price is to cut the time it takes to audit. The QuEST Forum wants to ensure that audits are handled properly.Why do we need to have an actual table published that lays out specifically how many days per audit? Because, the registrar market is so competitive out there that the companies try to underbid each other. One way to come in with a lower price is to cut the time it takes to audit. The QuEST Forum wants to ensure that audits are handled properly.

52. 52 Level of Effort Required When George set up this briefing, he asked me to provide information on the level of effort required by an organization to become TL 9000 certified. The information in this slide answers that question.When George set up this briefing, he asked me to provide information on the level of effort required by an organization to become TL 9000 certified. The information in this slide answers that question.

53. 53 Timelines When George set up this briefing, he asked that I provide a very high-level project plan. This is it.When George set up this briefing, he asked that I provide a very high-level project plan. This is it.

54. 54 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. This data is as of July 2000.This data is as of July 2000.

55. 55 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

56. 56 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

57. 57 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

58. 58 After All This Effort. . . If compliant, the company can proudly compete, thrive, and survive the telecom marketplace. If registered, the company can proudly display -

59. 59 FAQs