Six Sigma Qualtec Improving Your Business Results Deployment Approach From Initialization to Self Sufficiency Six Sigma Qualtec – All Rights Reserved Six Sigma Qualtec • • • • • Improving Your Business Results Agenda Overview 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 Six Sigma Qualtec – All Rights Reserved Six Sigma Qualtec Improving Your Business Results Six Sigma Described • 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 Qualtec – All Rights Reserved Six Sigma Qualtec Improving Your Business Results Six Sigma Described • 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 Qualtec – All Rights Reserved Six Sigma Qualtec Improving Your Business Results Six Sigma Described Management System + Methodology + Tools + Metrics and Goals System – 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 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 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. Six Sigma Qualtec – All Rights Reserved TOTAL QUANTITY OF IMPLEMENTATIONS Six Sigma Qualtec Improving Your Business Results Categorization of Results Below Average Inferior Above Average Excellent RESULTS FROM SIX SIGMA IMPLEMENTATIONS How Six Sigma is Implemented and Applied Will Determine the Results Six Sigma Qualtec – All Rights Reserved Six Sigma Qualtec Improving Your Business Results Quantification of Results FACTOR Average Level of Improvement per Project Average Financial Results per Project POOR Unknown or less than 30% BELOW AVERAGE ABOVE AVERAGE May be known and 30% Known and 40 % to to 40% 60% EXCELLENT Known and greater than 60% Generally not quantifiable Average Quantity of Projects per Black Belt/Year Organizational Approach/Culture Change 1 to 2 Not well defined and less than an average of $40K per project 2 to 3 Defined, tracked and average around $100K per project 3 to 4 Defined, Tracked and average greater than $150K per project 4 or more Little or no impact on the behavior of the ogranization More frequent use of data, but in isolated cases Trend or movement Six Sigma becomes the towards the use of "Way we think and analytical methods and work" data oriented decisions Multiple Factors Determine the Results Obtained …….. Y=f(X) Six Sigma Qualtec – All Rights Reserved Six Sigma Qualtec Improving Your Business Results Factors that Influence Results Y(results) = f(X) X1 = Senior Executive engagement and commitment X2 = Up front planning Initialization 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 Process Management 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 Six Sigma Qualtec – All Rights Reserved Six Sigma Qualtec Improving Your Business Results Initialization Six Sigma System – 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 Infrastructure – The various elements (activities) of a system that must exist to allow the predictable and continuous operation of that system to achieve expected results Initialization – 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 Six Sigma Qualtec – All Rights Reserved Six Sigma Qualtec Improving Your Business Results Initialization - Overall Deployment Planning 1 2 Train Executive and Top Management Team Initial Launch Planning 5 6 Begin Implementation & Infrastructure Development Core Team Training 4 3 Define the Six Sigma System to be Implemented Select Core Team 8 7 Finalize Launch Planning Release Six Sigma Handbook and Guidelines High Level Implementation Roadmap Six Sigma Qualtec – All Rights Reserved Improving Your Business Results Six Sigma Qualtec Initialization - Overall Deployment Planning 9 10 Apply Infrastructure and Support Systems 13 Implement Process Management Train Champions 12 11 Select BB’s and Projects for Wave 1 BB’s Begin Green Belt and Yellow Belt Training 14 •Consecutive BB, GB, YB Waves •Master Black Belt Development •Project Tracking & Reporting High Level Implementation Roadmap Six Sigma Qualtec – All Rights Reserved Six Sigma Qualtec Operation/Group/Com pany Nam e Propulsion Systems Propulsion Systems Propulsion Systems Propulsion Systems Command Console Systems Command Console Systems Command Console Systems Improving Your Business Results Initialization - Initial Launch Planning Organization Population (Exem pt) Approxim ate Annual Revenue Total Organization Population 422 Gallimore Dairy Road, Los Angeles, CA 2500 Talbot Drive, Auburn Hills, WA $30,000 74 62 $405 $600 1 1 4 Target BB 2 $40,000 33 25 $1,212 $800 1 0 2 2 650 Chesterfield Road, Sacrmento, CA Guadalajara, Mexico SUB TOTAL $80,000 427 84 $187 $1,600 3 4 5 4 $60,000 730 47 $82 $1,200 2 7 3 3 $300,000 1517 267 $198 $6,000 10 15 16 11 $75,000 443 76 $169 $1,500 3 4 5 4 $60,000 387 42 $155 $1,200 2 4 3 3 $90,000 228 18 $395 $1,800 3 2 1 2 $225,000 $55,000 1058 228 136 38 $213 $241 $4,500 $1,100 8 2 11 2 8 2 9 2 $55,000 $10,000 228 32 38 29 $241 $313 $1,100 $200 2 0 2 0 2 2 2 1 $90,000 328 29 $274 $1,800 3 3 2 3 $50,000 159 27 $314 $1,000 2 2 2 2 $150,000 $730,000 519 3322 85 526 $289 $220 $3,000 $14,600 5 24 5 33 5 32 6 28 Address (City, State) 200 Piedmont Circle, Dallas, Tx 9138 Randolph Rd NE, Baltimore, MD Singapore SUB TOTAL 2223 Dove Street, Detroit, MI SUB TOTAL Pnuematics and Servos 629 Green Valley Rd, Minneapolis, MN Pnuematics and Servos 650 Chesterfield Rd., Sacramento, CA Pnuematics and Servos 215 Drummond St., Dallas, TX SUB TOTAL GRAND TOTALS Integrators Revenue Per Em ployee 2% NPBIT 2% NPBIT 1% of Total 6% of Target BB BB Exem pt BB Determining the Scope of the Deployment Six Sigma Qualtec – All Rights Reserved Improving Your Business Results Six Sigma Qualtec Initialization - Initial Launch Planning Launch Planning Phase Implementation Phase Institutionalizing 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 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 Process 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 SCHEDULE & TIMING • 2 to 3 Months • 9 to 10 Months Year 1 Six Sigma Qualtec – All Rights Reserved Sustaining Phase 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 2 SCHEDULE & TIMING • 12 Months Year 3 Six Sigma Qualtec Improving Your Business Results Initialization - Final Launch Planning CY02 Q1 Q2 CY03 Q3 Q4 Q1 Q2 CY04 Q3 Q4 Q1 Q2 Q3 Q4 Q2 Q3 Q4 Propulsion Systems Manufacturing Pneumatics and Servos Manufacturing Command Console Systems Integrators Sales And Marketing Administrative Functions Design/Development Engineering Customers and Suppliers Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Plan the Deployment Sequence Six Sigma Qualtec – All Rights Reserved Six Sigma Qualtec Wave Step 0 Process/Event Description Improving Your Business Results Initialization - Final Launch Planning Language 1 Launch Planning 1 English E1 2 Executive Interviews English CT1 3 Core Team Training 1 English CT1 4 Initialization Workshops English # 1A E1 5 Executive Training English E1 6 System Definition release English Customer Participation James Smalley SSQI Participation Bill Haas Prerequisites Organization Structure and population data Deliverables 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 Executive Management Don Redinius Read Six Sigma Develop Executive level understanding, Team System Definition through executive one-on-ones, of Six document Sigma Management System, the breakthrough process, the deployment process, review management system definition and address questions and concerns. Provide prerequisite material Six Sigma Leader, Core Stan Whitman Read Six Sigma Develop mid level understanding of Six Team (principle support Management Sigma System and the breakthrough individuals from Finance, System Definition process, address questions and concerns, Human Resources, document and The define requirements for successful Communications, IT, Key Nature of Six Sigma deployment, planning and infrastructure Stakeholder Representatives Management requirements, define roles and and Finance responsibilities of core team mem Representatives Core Team Kevin Benson Core Team training Workshops to customize infrastructure templates into Takata operating guidelines and policies (Six Sigma Handbook). Executive Management Don Redinius Read The Nature of Prepare leadership team, set corporate level Team and Six Sigma Leader Six Sigma business and financial goals, establish high Class Size: TBD Management. level deployment guidelines and establish leadership requirements for the success of Six Sigma. Steve Cromwell N/A Review and Finalization and release 1 of Six Sigma Wilkes Robarts appropriate System Definition document signed by total Executive Team modifications Executive Team Duration Planned Dates Location 1 day 17-Apr-02 Frankfurt 3 days TBD Frankfurt London Munich Paris 2 Days 5-7-02 5-8-02 Frankfut 2 Days 5-9-02 5-10-02 London 2 days 6-4-02 6-5-02 Frankfurt N/A 1 Year Detail Planning for All Needed Events Six Sigma Qualtec – All Rights Reserved 21-Jun-02 N/A Six Sigma Qualtec Improving Your Business Results Initialization - Developing Infrastructure Hard Copy Six Sigma Handbook Core Team Training Client’s Uniqueness Core Team Workshop “N” Templates for Handbook Engage Process Best Practices Core Team Workshop 1 Six Sigma System Requirements Defined and Auditable System Self Integrating Six Sigma System System Knowledge & Expertise Consistent Six Sigma Deployment Experienced Facilitation Inputs Web Based Six Sigma Handbook Infrastructure Development Process Outputs Infrastructure is Developed by the Companies Support Organizations and Representatives From Each Major Organization Six Sigma Qualtec – All Rights Reserved Six Sigma Qualtec Improving Your Business Results Initialization - Infrastructure Elements Deployment and Launch Planning Human Resource Guidelines Finance Guidelines Information Technology Requirements Communications Project Guidelines Project Tracking and Reporting Goal and Objective Establishment Infrastructure Elements Bring Clarity and Certainty to an Organization Implementing Six Sigma Six Sigma Qualtec – All Rights Reserved Six Sigma Qualtec Improving Your Business Results Initialization - Infrastructure Deliverables Deployment & Launch Planning HR Guidelines • Six Sigma Management System Definition • Competency Models and Selection • 3 Year Long term Plan • Position/Assignment Descriptions • Goals and Expectations • Reporting Relationships • Key Participant Selection • Graduation and Certification Criteria • Overall Deployment Plan • Career Planning/Development • Detailed Near Term Actions • Titles, Compensation & Retention • Initialization Planning • Rewards & Recognition •Training Schedules and Logistics Communications Plan • Employee Status Tracking Requirements Project Guidelines • First All Employee Communications Letter • Recognition and Definition Criteria • Overall Communications Strategy • Project Type Categorization • Tactical Plan (Who, What and When) • Problem Statement and Objectives Criteria • Message Content as a Function of Time • Project Valuation Targets • Integration with Other Initiatives • Project Approval Process • Frequency of Communication • Project Review and Reporting Criteria • Method/Mediums of Communication • Project Completion Requirements • Definition of Expectations and Effectiveness • Moving into Realization & Closing Phases Six Sigma Qualtec – All Rights Reserved Six Sigma Qualtec Improving Your Business Results Initialization - Infrastructure Deliverables Project Tracking and Reporting Information Technology Support • Customization for Financial System • Intranet Development • Customization for Organizational Structure • Final Report Database • Software User Manuals and Training • Notebook Configuration and Support • Email System Integration • Software Installation Templates • Report Generation • Project Tracking System Development • Input Reporting Frequency • Backup Procedures Finance Guidelines Goal Establishment • Finance Rep Identification and Training • Quantity of MBB’s, BB’s, GB’s & YB’s • Project Valuation • Rate of Deployment/Training Goals • Project Forecasting Requirements • Quantity of Projects/BB/Year • Methods of Evaluation • Financial Expectations per Project • Project Completion • Yearly Financial Contribution •Reporting Frequencies • Metrics Goals • Organizational Goals Six Sigma Qualtec – All Rights Reserved Six Sigma Qualtec Improving Your Business Results 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 Six Sigma Qualtec – All Rights Reserved Six Sigma Qualtec • Improving Your Business Results 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 Six Sigma Qualtec – All Rights Reserved Improving Your Business Results Six Sigma Qualtec Process Management & Improvement Key Process Map Key Process Map Enabling Processes Core Processes Senior Management Level 1 Owned Manager 1 Manager 2 PCS Summary Middle Management PCS Summary Level 2 Owned Process A Process B Process C Process D Process Owner Process E Level 3 Mgr A Mgr B Mgr C P Chart for Rate by Group 1 0.3 2 3 Xbar/S Chart for Cycle Time 1 0.2 Sample Mean Proportion 40 0.1 1 Mean=34.43 LCL=30.72 20 Sample Number 30 Sample StDev Subgroup 0 UCL=0.03969 P=0.02491 LCL=0.01012 0.0 10 35 30 1 0 UCL=38.14 7 6 5 4 3 2 1 0 Six Sigma Qualtec – All Rights Reserved 5 1 10 15 UCL=5.433 S=2.601 LCL=0 Mgr D and Worker Responsibilities Mgr E •Process Owners Use Process Management to: • • • • • Manage & supervise their operation Track & monitor process and results indicators Assure predictability and stability of the process Identify potential improvements Improve the process Improving Your Business Results Six Sigma Qualtec Process Management & Improvement Process Control Black Belt Project Measure Q1 P1 P2 P3 Pareto Chart for Error Ty 100 20 60 40 Percent Count 80 10 LSL 20 0 Defect Count Percent Cum % P1 USL Process Data USL Target LSL 35.0000 * 15.0000 Mean Sample N 30.0972 125 StDev (ST) StDev (LT) 8.25584 8.14405 ST LT 0 d kloa Wor l er ia Mat 10 43.5 43.5 5 21.7 65.2 ent ipm Equ 3 13.0 78.3 s Spec 2 8.7 87.0 g inin Tra 2 8.7 95.7 Potential (ST) Capability er s Oth 1 4.3 100.0 Cp CPU CPL 0.40 0.20 0.61 Cpk Cpm 0.20 * Overall (LT) Capability P2 5 15 25 Observed Performance 35 45 Expected ST Performance 55 Expected LT Performance Pp PPU 0.41 0.20 PPM < LSL PPM > USL 56000.00 248000.00 PPM < LSL PPM > USL 33724.55 276303.34 PPM < LSL PPM > USL 31885.96 273583.66 PPL Ppk 0.62 0.20 PPM Total 304000.00 PPM Total 310027.89 PPM Total 305469.62 Control P3 75 Potential Failure Modes (process defects) 21 Picking Items Wrong Merchandise C Potential S l Potential O Failure Effects E a Causes of C (KPOVs) V s Failure (KPIVs) C s Mis Delivery 20 -3.0SL=18.86 0 5 10 15 20 25 3.0SL=41.18 40 65 1 None 10 80 3 None 10 240 2 23 8 None 10 160 24 8 3 None 10 240 25 8 Wrong Item Picked 4 None 10 320 26 Delay In Delivery 3 Truck Leaving Hub Wrong Item Picked 4 Caught at Loading 3 27 Loading Items for Customer Damaged Merchandise Rejected Delivery 9 28 9 29 9 30 9 31 32 9 Wrong Merchandise Mis Delivery 8 Unable to raise item to truck Items shift during loading Items rub into each other during Items crush each other Truck w alls catch on item Pulled from w rong loading dock 8 4 6 3 Hearing loose items as loading Hearing damage occur None Hearing damage occur Hearing damage occur Responsible Person & Target Date Analyze 70 36 60 8 576 Dolly's/ Ramps Team Leader 9 324 Use Pads Team Leader Use Straps Team Leader Refurbish Truck Team Leader 10 540 9 243 9 405 2 Caught at Loading 6 96 5 Recommend Actions 50 40 Regression 95% CI 95% PI 30 10 50 20 30 40 y 45 20 40 30 -3.0SL=28.98 R=19.47 25 10 0 -3.0SL=0.000 10 20 30 40 20 50 Sample Number P2 Indicator Chart 250 Improve 10 Cycletim new P3 Indicator Chart 3.0SL=220.1 0.6 0.2 150 -3.0SL=55.41 50 Subgroup 300 0.5 X=137.8 0 5 10 15 20 25 3.0SL=301.9 Proportion Sample Mean R P N 8 55 C=50.24 Customer Error Purchasing Transaction Error Packing Order Wrong Shipping Manifest Wrong D E T 35 30 0 Sample Range 8 Current Process Controls 22 3.0SL=71.50 X=30.10 30 Subgroup Sample Range 3.0SL=41.33 40 P1 Indicator Chart Sample Count Sample Mean Q1 Indicator Chart Process Function (Step) x Q1 # R=142.8 100 -3.0SL=0.000 0.12 P=0.2478 0.2 0.1 0.08 0.06 -3.0SL=0.07312 0.0 0.04 0.02 0 10 20 Sample Number Six Sigma Qualtec – All Rights Reserved Design of Experiment And/Or Solution Determination 0.16 0.14 0.3 0.1 200 0 0.18 3.0SL=0.4224 0.4 30 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 50 Improving Your Business Results Project Assignment Too Easy Six Sigma Qualtec – All Rights Reserved BB Projects Solving “Fruit on the Ground,” “Logic & Intuition” “Process Control” Type Problems Solving “Process Optimization” “Complex Interaction” “Process Entitlement” Type Problems GB/YB Projects Quantity of Problems Six Sigma Qualtec Difficulty and Cost of Problems Solving “World Hunger,” “Boil the Ocean” Type Problems Too Hard Are Usually Management Caused Six Sigma Qualtec Improving Your Business Results Achieving Self Sufficiency 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 • 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 Six Sigma Qualtec – All Rights Reserved Six Sigma Qualtec Improving Your Business Results The Path to Self Sufficiency 3 What is Ultimately Achieved Core Competency 2 The First Realization Business & Process Management System 1 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 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. Where Most Start Quality Management System Quality Management - The set of strategies, tactics and practices collectively used as a Company to competitively achieve business objectives and to satisfy customers. Six Sigma becomes the “Way We Think and Work” Six Sigma Qualtec – All Rights Reserved
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