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2008
Keynote Address
How to Make
Reliability Engineering a Cost Competitive Advantage for World
Class Quality
Allan Rae, Executive Director of Business Systems for
American Axle & Manufacturing (AAM)
In today’s competitive marketplace, there are key drivers that
distinguish successful companies, beginning with a product that
totally satisfies the customer in terms of features, safety,
cost, quality and long-term reliability. In this Keynote
Address, we will talk about the warranty situation in the
automotive industry today and the challenges that auto companies
are faced with when it comes to poor quality, the change in
warranty policies and the focus on the bottom line, as well as
the need for more reliability testing and how that affects the
customer.
To gain a cost competitive edge over off-shore companies, North
America should be concerned about not only "Product Quality" but
as Dr. Deming talked about, must also focus on the "Total Cost
of Doing Business." At the same time, Dr. Juran has talked about
the "Cost of Quality" and all of the phases of cost starting
with testing the product before it gets to the customer or even
manufacturing. Over the years, what has emerged is the "Total
Cost of Quality" and the bottom line look at the relationship
from Wall Street "earnings per share," the effect on a company’s
profits (which really is the bottom line) and even the overall
report card of a company’s performance.
This discussion will focus on the bottom line, how to get top
management’s attention and a leadership approach to world class
quality and cost.
 Allan
Rae has worked in the automotive industry for 34 years,
including over 20 years with Chrysler and DaimlerChrysler in
various senior-level executive positions. He is currently the
Executive Director of Business Systems for American Axle &
Manufacturing, reporting to David C. Dauch, the Executive Vice
President & Chief Operating Officer.
During his career, Allan has had experience in both
Manufacturing and Corporate Quality Office positions,
interacting with Sales & Marketing, Engineering, Advanced
Manufacturing Engineering and Manufacturing Plants around the
world in the U.S., Canada, Mexico, China, Japan, Thailand,
Austria, Germany, Brazil and Poland. He has delivered training
for over 40,000 executives, managers and employees at all levels
and has worked with major unions worldwide.
Over the years, Allan has contributed to a number of highly
successful improvement initiatives and has received prestigious
industry awards to recognize his achievements. In 1991, he
coordinated the effort for the Chrysler Minivan Plant to be the
first automotive company to win the Canada Quality Award for
Business Excellence. In 1992, he received Lee Iacocca’s Chairman
Award as well as the ASQ Automotive Division Judson C. Jarvis
Service Award. In 1993, he became one of the founding members of
the Michigan Quality Council, in conjunction with the Governor
of Michigan at the time (John Engler). And in 1995, he
participated in the development of the Chrysler Operating
System, which was rolled out worldwide to 57 manufacturing
locations in 9 countries.
Throughout his career, Allan has increased his knowledge by
studying under experts in the field and also has been
sought-after to communicate his knowledge and experience in
multiple settings. Among other experiences, he studied with Dr.
W.E. Deming during the 1980s and was a member of the Detroit
Deming study group for six years. He also worked with Shin
Taguchi from the American Supplier Institute and studied Lean
Manufacturing Principles with the Shingijutsu Group (originators
of the the Toyota Production System in Japan). Allan has
provided his expertise to many major companies, organizations
and universities, including service as a board member for the
McGill University Master in Manufacturing Management Program and
as a visiting lecturer for the MIT Leaders for Manufacturing
Program. |
