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Improving Your Business ResultsSix SigmaQualtec
Six Sigma Qualtec – All Rights Reserved
Deployment ApproachFrom
Initialization to Self Sufficiency
Improving Your Business ResultsSix SigmaQualtec
Six Sigma Qualtec – All Rights Reserved
• Six Sigma Described• Quantification and Categorization of Deployment Results• Fundamentals of Initialization and Infrastructure
Development• Process Management and Six Sigma• The Path to Self Sufficiency
Agenda Overview
Improving Your Business ResultsSix SigmaQualtec
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• It is the philosophy of breakthrough level improvements, that every process can and should be repeatedly evaluated and significantly improved– In terms of time required, resources used, quality performance, costs and other aspects relevant to the process.
– All leading to increased customer satisfaction, market share, revenue, profits, and ultimately shareholder value.
Six Sigma Described
Improving Your Business ResultsSix SigmaQualtec
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• It is an enterprise wide strategy that effectively develops a capability and a desire within individuals to:– To effectively manage process activities and performance
– To solve business and quality problems– To improve decision-making– To improve the overall performance of the enterprise
Six Sigma Described
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ManagementSystem Methodology Metrics and
GoalsTools+ + +
– A group of interactive and dependent activities which operate synchronously and in control to repeatedly achieve an expected result with little or no Management intervention required
System
– An enterprise wide strategy that recognizes problematic areas of the business, defines improvement efforts and projects, determines and implements data driven breakthrough level solutions…..in a predictable and repeatable manner to improve business results
Six Sigma System
Six Sigma Described
Six Sigma is the way you run your business. It is not just about quality, it is a business & process management system, and one of the many outputs is improved quality.
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RESULTS FROM SIX SIGMA IMPLEMENTATIONS
Inferior
Below Average
Above Average
Excellent
TOTA
L Q
UA
NTI
TY O
FIM
PLEM
ENTA
TIO
NS
How Six Sigma is Implemented and Applied Will Determine the Results
Categorization of Results
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Quantification of ResultsFACTOR POOR BELOW AVERAGE ABOVE AVERAGE EXCELLENT
Average Level of Improvement per Project
Unknown or less than 30%
May be known and 30% to 40%
Known and 40 % to 60%
Known and greater than 60%
Average Financial Results per Project
Generally not quantifiable
Not well defined and less than an average of $40K per project
Defined, tracked and average around $100K per project
Defined, Tracked and average greater than $150K per project
Average Quantity of Projects per Black Belt/Year
1 to 2 2 to 3 3 to 4 4 or more
Organizational Approach/Culture Change
Little or no impact on the behavior of the ogranization
More frequent use of data, but in isolated cases
Trend or movement towards the use of analytical methods and data oriented decisions
Six Sigma becomes the "Way we think and work"
Multiple Factors Determine the Results Obtained …….. Y=f(X)
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Process Management
Initialization
Factors that Influence Results
X1 = Senior Executive engagement and commitment
X2 = Up front planning
X3 = Infrastructure Development
X4 = Proactive Champions that see the power of Six Sigma
X5 = Full-time Black Belts from “Among the Best”
X6 = Process Management through Green and Yellow Belts
X7 = Black Belts Project selection that makes an impact on the bottom line of the business
X8 = Financial evaluation system
X9 = Metrics and goals linked to corporate strategy for progress tracking
X10 = Project tracking system to measure progress
Y(results) = f(X)
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Initialization
– An enterprise wide effort that recognizes problematic areas of the business, defines improvement efforts and projects, determines and implements data driven breakthrough level solutions…..in a predictable and repeatable manner to improve business results
Six Sigma System
– The process of preparing a company for the development of the necessary infrastructure required to achieve excellent results from a Six Sigma implementation and to achieve self-sufficiency
Initialization
– The various elements (activities) of a system that must exist to allow the predictable and continuous operation of that system to achieve expected results
Infrastructure
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Initialization - Overall Deployment Planning1
65
432
7 8
InitialLaunch Planning
Train Executiveand Top Management Team
Define the Six Sigma System to be Implemented
BeginImplementation& InfrastructureDevelopment
FinalizeLaunch Planning
Core Team Training
Select Core Team
High Level Implementation RoadmapHigh Level Implementation Roadmap
Release Six Sigma
Handbook and
Guidelines
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Select BB’s andProjects forWave 1 BB’s
Begin Green Belt and
Yellow Belt Training
Implement Process
Management
1211109
13
TrainChampions
High Level Implementation RoadmapHigh Level Implementation Roadmap
•Consecutive BB, GB, YB Waves•Master Black Belt Development•Project Tracking & Reporting
14
Apply Infrastructureand Support
Systems
Initialization - Overall Deployment Planning
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Operation/Group/Company Name Address (City, State)
Approximate Annual Revenue
Total Organization
Population
OrganizationPopulation (Exempt) Revenue Per
Employee2% NPBIT
Target2% NPBIT
BB1% of Total
BB6% of
Exempt BB
TargetBB
Propulsion Systems 422 Gallimore Dairy Road, Los Angeles, CA
$30,000 74 62 $405 $600 1 1 4 2
Propulsion Systems 2500 Ta lbot Drive, Auburn Hills, WA
$40,000 33 25 $1,212 $800 1 0 2 2
Propulsion Systems 650 Chesterfie ld Road, Sacrmento, CA
$80,000 427 84 $187 $1,600 3 4 5 4
Propulsion Systems Guadalajara, Mexico
$60,000 730 47 $82 $1,200 2 7 3 3
Monclova, Mexico $90,000 253 49 $356 $1,800 3 3 3SUB TOTAL $300,000 1517 267 $198 $6,000 10 15 16 11
Command Console Systems
200 Piedmont Circle , Dallas, Tx
$75,000 443 76 $169 $1,500 3 4 5 4
Command Console Systems
9138 Randolph Rd NE, Baltimore, MD
$60,000 387 42 $155 $1,200 2 4 3 3
Command Console Systems
Singapore $90,000 228 18 $395 $1,800 3 2 1 2
SUB TOTAL $225,000 1058 136 $213 $4,500 8 11 8 9Integrators 2223 Dove Street,
Detroit, MI$55,000 228 38 $241 $1,100 2 2 2 2
SUB TOTAL $55,000 228 38 $241 $1,100 2 2 2 2Pnuematics and Servos 629 Green Valley
Rd, Minneapolis, MN
$10,000 32 29 $313 $200 0 0 2 1
Pnuematics and Servos 650 Chesterfie ld Rd., Sacramento, CA
$90,000 328 29 $274 $1,800 3 3 2 3
Pnuematics and Servos 215 Drummond St., Dallas, TX
$50,000 159 27 $314 $1,000 2 2 2 2
SUB TOTAL $150,000 519 85 $289 $3,000 5 5 5 6GRAND TOTALS $730,000 3322 526 $220 $14,600 24 33 32 28
Determining the Scope of the Deployment
Initialization - Initial Launch Planning
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Launch Planning Phase
Key Activities• Executive 1:1 Interviews• Key Implementation Leaders
Selected• Executive Management
Training• Define Year 1 Implementation
Plan• Core Team Selected and
Trained• Rev 1 Six Sigma System
Definition Released• Begin Initialization• Establish Deployment Strategy• Rev 1 Six Sigma Handbook• Develop Communications Plan• Establish Management
Commitment Letter• First Employee
Announcements letter• Budgeting• Establish Performance
Expectations/Goals• Initiate Compensation Plan• Identify Initial Champions• Establish 3 Year Plan
SCHEDULE & TIMING
• 2 to 3 Months
Implementation Phase
Key Activities• Communications Plan
Executed• Train Champions• Identify First Projects• Train First Waves of BB’s• On-Site Support• Infrastructure Completed• Launch Initial GB/YB
Training• Six Sigma Metrics
Established• Measurement & Tracking
Systems Established• Train Functional Mngmnt• BB Certification Process
Established• Champion RefresherTrng• Train Initial MBB’s• Begin All Employee
Awareness Training• Six Sigma Handbook Rel 2+• Quarterly Exec Reviews• First Recognition & Rewards
Event• Pilot Customer Engagement
ProcessSCHEDULE & TIMING
• 9 to 10 Months
InstitutionalizingPhase
Key Activities• Full Scale GB/YB
Training• Engage Suppliers• Develop Internal Training
Capability• Complete BB & MBB
Training Waves to Full Quantity
• Second Annual Rewards & Recognition Event
• Spot Champion Revitalization Training
• System Refinement & Improvement
• Quarterly Exec Reviews• Full Customer
Engagement• Launch Design for Six
Sigma Training• BB Re-Integration
Planning
SCHEDULE & TIMING
• 12 Months
SustainingPhase
Key Activities• Continue GB/YB Training• Complete Design for Six
Sigma Training• Migrate BB’s & MBB’s
Back into Functional Roles
• Continue Supplier Deployment
• System Refinement & Improvement
• Progress Reviews• Annual Rewards &
Recognition Event• Quality Performance
Improvement
•
SCHEDULE & TIMING
• 12 Months
Year 1 Year 2 Year 3
Initialization - Initial Launch Planning
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Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4Q1 Q2 Q3 Q4
Propulsion Systems Manufacturing
Pneumatics and Servos Manufacturing
Command Console Systems
Integrators
Sales And Marketing
Customers and Suppliers
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4Q1 Q2 Q3 Q4
CY02 CY03 CY04
Design/Development Engineering
Administrative Functions
Initialization - Final Launch Planning
Plan the Deployment Sequence
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WaveStep Process/Event Description
Language Customer Participation SSQI Participation
Prerequisites Deliverables
0 1 Launch Planning 1 English James Smalley Bill Haas Organization Structure and population data
Approximate number of Champions, Black Belts and Master Black Belts planned by area for the deployment. Identify core team in terms of roles, objectives and time commitments. Establish Rev 1.0 of Deployment time table
E1 2 Executive Interviews English Executive Management Team
Don Redinius Read Six Sigma System Definition document
Develop Executive level understanding, through executive one-on-ones, of Six Sigma Management System, the breakthrough process, the deployment process, review management system definition and address questions and concerns. Provide prerequisite material
CT1 3 Core Team Training 1 English Six Sigma Leader, Core Team (principle support individuals from Finance, Human Resources, Communications, IT, Key Stakeholder Representatives and Finance Representatives
Stan Whitman Read Six Sigma Management System Definition document and The Nature of Six Sigma Management
Develop mid level understanding of Six Sigma System and the breakthrough process, address questions and concerns, define requirements for successful deployment, planning and infrastructure requirements, define roles and responsibilities of core team mem
CT1 4 Initialization Workshops # 1A
English Core Team Kevin Benson Core Team training Workshops to customize infrastructure templates into Takata operating guidelines and policies (Six Sigma Handbook).
E1 5 Executive Training English Executive Management Team and Six Sigma LeaderClass Size: TBD
Don Redinius Read The Nature of Six Sigma Management.
Prepare leadership team, set corporate level business and financial goals, establish high level deployment guidelines and establish leadership requirements for the success of Six Sigma.
E1 6 System Definition release
English Steve CromwellWilkes RobartsExecutive Team
N/A Review and appropriate modifications
Finalization and release 1 of Six Sigma System Definition document signed by total Executive Team
Duration Planned Dates Location
1 day 17-Apr-02 Frankfurt
3 days TBD FrankfurtLondonMunichParis
2 Days 5-7-025-8-02
Frankfut
2 Days 5-9-025-10-02
London
2 days 6-4-026-5-02
Frankfurt
N/A 21-Jun-02 N/A
1 Year Detail Planning for All Needed Events
Initialization - Final Launch Planning
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Engage Process
Initialization - Developing Infrastructure
Core Team
Workshop 1
Infrastructure Development Process Outputs
ConsistentSix Sigma
Deployment
System Knowledge &
Expertise
Self Integrating Six Sigma System
Defined and Auditable System
Web Based Six Sigma Handbook
Hard Copy Six Sigma Handbook
Core Team
Workshop “N
”
Experienced Facilitation
Client’s Uniqueness
Templates for Handbook
Best Practices
Six Sigma System
Requirements
Inputs
Core Team Training
Infrastructure is Developed by the Companies Support Organizations and Representatives From Each Major Organization
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Deployment and Launch Planning Human Resource Guidelines Finance Guidelines Information Technology Requirements Communications Project Guidelines Project Tracking and Reporting Goal and Objective Establishment
Initialization - Infrastructure Elements
Infrastructure Elements Bring Clarity and Certainty to an Organization Implementing Six Sigma
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HR Guidelines• Competency Models and Selection
• Position/Assignment Descriptions
• Reporting Relationships• Graduation and Certification Criteria• Career Planning/Development• Titles, Compensation & Retention• Rewards & Recognition• Employee Status Tracking Requirements
Deployment & Launch Planning• Six Sigma Management System Definition
• 3 Year Long term Plan
• Goals and Expectations
• Key Participant Selection
• Overall Deployment Plan
• Detailed Near Term Actions
• Initialization Planning
•Training Schedules and Logistics
Communications Plan• First All Employee Communications Letter
• Overall Communications Strategy
• Tactical Plan (Who, What and When)
• Message Content as a Function of Time
• Integration with Other Initiatives
• Frequency of Communication
• Method/Mediums of Communication
• Definition of Expectations and Effectiveness
Project Guidelines• Recognition and Definition Criteria
• Project Type Categorization
• Problem Statement and Objectives Criteria
• Project Valuation Targets
• Project Approval Process
• Project Review and Reporting Criteria
• Project Completion Requirements
• Moving into Realization & Closing Phases
Initialization - Infrastructure Deliverables
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Project Tracking and Reporting• Customization for Financial System
• Customization for Organizational Structure
• Software User Manuals and Training
• Email System Integration
• Report Generation
• Input Reporting Frequency
Information Technology Support• Intranet Development
• Final Report Database
• Notebook Configuration and Support
• Software Installation Templates
• Project Tracking System Development
• Backup Procedures
Finance Guidelines• Finance Rep Identification and Training
• Project Valuation
• Project Forecasting Requirements
• Methods of Evaluation
• Project Completion
•Reporting Frequencies
Goal Establishment• Quantity of MBB’s, BB’s, GB’s & YB’s
• Rate of Deployment/Training Goals
• Quantity of Projects/BB/Year
• Financial Expectations per Project
• Yearly Financial Contribution
• Metrics Goals
• Organizational Goals
Initialization - Infrastructure Deliverables
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Process Management• Process Management is a structured approach to aligning and
optimizing how business processes work together to repeatedly and consistently deliver results/value to a customer
• General steps toward process management–Identify core processes, generally 5 to 10 and prioritize for
assessment–Designate “Process Owners”–Educate the organization in process management principles
and techniques–Assess current end to end process performance and set
operating targets–Use process improvement methods, IE Six Sigma, to improve
performance to targets
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Process Management• Education content for Process Management
• Voice of the Customer• Organizational and team effectiveness• Flow charting• Workflow and data modeling (X’s and Y’s)• Capability analysis• Measurement systems analysis• Change analysis, solution implementation and change
management• Process monitoring and control
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Level 1
Process A Process B Process C Process D Process E
Mgr A Mgr B Mgr C Mgr D Mgr E
PCS SummaryManager 1 Manager 2
Senior Management
Owned
PCS Summary
Key Process MapEnabling Processes
Key Process MapCore Processes
3020100
0.3
0.2
0.1
0.0
Sample Number
Proportion
P Chart for Rate by Group
1
11
P=0.02491UCL=0.03969
LCL=0.01012
1 2 3
15105Subgroup 0
40
35
30
Sample Mean
Mean=34.43
UCL=38.14
LCL=30.72
76543210
Sample StDev
1
S=2.601
UCL=5.433
LCL=0
Xbar/S Chart for Cycle Time
Level 2
Level 3
Middle Management
Owned
Process Owner
and Worker Responsibilities
• Manage & supervise their operation• Track & monitor process and results indicators• Assure predictability and stability of the process• Identify potential improvements• Improve the process
•Process Owners Use Process Management to:
Process Management & Improvement
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Q1 P1 P2 P3
P1
P2
P3Q1
Process Management & Improvement
252015105Subgroup 0
40
30
20
Sample Mean
X=30.10
3.0SL=41.33
-3.0SL=18.86
40
30
20
10
0
Sample Range
R=19.47
3.0SL=41.18
-3.0SL=0.000
Q1 Indicator Chart
50403020100
75
65
55
45
35
25
Sample Number
Sample Count
C=50.24
3.0SL=71.50
-3.0SL=28.98
P1 Indicator Chart
252015105Subgroup 0
250
150
50
Sample Mean
X=137.8
3.0SL=220.1
-3.0SL=55.41
300
200
100
0
Sample Range
R=142.8
3.0SL=301.9
-3.0SL=0.000
P2 Indicator Chart
3020100
0.6
0.5
0.4
0.3
0.2
0.1
0.0
Sample Number
Proportion
P=0.2478
3.0SL=0.4224
-3.0SL=0.07312
P3 Indicator Chart
Process Control
Incapable Process
newCycletim
50
40
30
20
10
5040302010
70
60
50
40
30
y
x
95% PI
95% CI
Regression
Others
Training
Specs
Equipment
Material
Workload
1 2 2 3 510 4.3 8.7 8.713.021.743.5
100.0 95.7 87.0 78.3 65.2 43.5
20
10
0
100
80
60
40
20
0
DefectCount
PercentCum %
Percent
Count
Pareto Chart for Error Ty
55453525155
USLLSL
PPM TotalPPM > USLPPM < LSL
PPM TotalPPM > USLPPM < LSL
PPM TotalPPM > USLPPM < LSL
PpkPPLPPUPp
CpmCpkCPLCPUCp
StDev (LT)StDev (ST)Sample NMeanLSLTargetUSL
305469.62273583.66 31885.96
310027.89276303.34 33724.55
304000.00248000.00 56000.00
0.200.620.200.41
*0.200.610.200.40
8.144058.25584
12530.097215.0000
*35.0000
Expected LT PerformanceExpected ST PerformanceObserved PerformanceOverall (LT) Capability
Potential (ST) Capability
Process DataSTLT
Measure
Analyze
Improve
Design of ExperimentAnd/Or
Solution Determination
Control#
Process Function
(Step)
Potential Failure Modes
(process defects)
Potential Failure Effects
(KPOVs)
SEV
Class
Potential Causes of
Failure (KPIVs)
OCC
Current Process Controls
DET
RPN
Recommend Actions
Responsible Person &
Target Date
21 Picking ItemsWrong
Merchandise Mis Delivery 8 Customer Error 1 None 10 80
22 8Purchasing
Transaction Error3 None 10 240
23 8Packing Order
Wrong2 None 10 160
24 8Shipping Manif es t
Wrong3 None 10 240
25 8 Wrong Item Picked 4 None 10 320
26Delay In Delivery
Truck Leaving Hub3 Wrong Item Picked 4 Caught at Loading 3 36
27Loading Items for
Customer
Damaged
MerchandiseRejected Delivery 9
Unable to raise
item to truck8
Hearing loose
items as loading8 576 Dolly 's/ Ramps Team Leader
28 9Items shif t during
loading4
Hearing damage
occur9 324 Use Pads Team Leader
29 9Items rub into each
other during 6 None 10 540 Use Straps Team Leader
30 9Items crush each
other3
Hearing damage
occur9 243
31 9Truck w alls catch
on item5
Hearing damage
occur9 405
Refurbish
TruckTeam Leader
32Wrong
MerchandiseMis Delivery 8
Pulled f rom w rong
loading dock2 Caught at Loading 6 96
Black Belt Project
Out of C
ontrol
Process
GB Project
With YB
Support
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Project Assignment
Difficulty and Cost of Problems
Qua
ntity
of P
robl
ems
BB
Pro
ject
s
Too Hard -Are Usually
Management Caused
TooEasy
Solving“World Hunger,”“Boil the Ocean”Type Problems
Solving “Fruit on the Ground,”“Logic & Intuition”“Process Control” Type Problems Solving
“Process Optimization”“Complex Interaction”“Process Entitlement”Type Problems
GB
/YB
Pro
ject
s
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Goal (Six Sigma System)– An enterprise wide strategy that recognizes problematic areas of the
business, defines improvement efforts and projects, determines and implements data driven breakthrough level solutions…..in a predictable and repeatable manner to improve business results
Achieving Self Sufficiency
• Initialization–Provides the structure for …. A predictable and repeatable enterprise
wide strategy to improve business results
• Process Management –Provides a method to….Identify potential improvement efforts and
projects, improve processes and manage process performance
• Six Sigma–Provides the knowledge to…. Determine and implement data driven
breakthrough level solutions to problematic areas of the business
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Business & Process Management
System
Quality ManagementSystem
Quality Management - The set of strategies, tactics and practices collectively used as a Company to competitively achieve business objectives and to satisfy customers.
Where Most Start
The First Realization
Business and Process Management - The way we view our business efforts, set our expectations, determine our decisions, and the way we lead the Company to optimally satisfy all of our stakeholders.
Core Competency
What is Ultimately Achieved
Core Competency - The intellectual knowledge and capability of employees to quickly and accurately solve problems, to align and optimize business process and to make better decisions
The Path to Self Sufficiency
11
22
33
Six Sigma becomes the “Way We Think and Work”