Deployment Approach From Initialization to Self Sufficiency Six Sigma

Six Sigma
Qualtec
Improving Your Business Results
Deployment Approach
From
Initialization to Self Sufficiency
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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
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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.
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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
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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.
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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
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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)
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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”
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