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The_ABCs_of_Six_Sigma_Everest

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The_ABCs_of_Six_Sigma_Everest

  1. 1. Created by Somya De , April - 2010 The ABCs of Six Sigma Six Sigma Methodology in today’s corporate environment
  2. 2. Created by Somya De , April - 2010 2 A to Z for today • Why are companies interested? • What is Six Sigma (basic)? • History • Methodology • What is a deployment? • Critical Success Factors • WIIFM
  3. 3. Created by Somya De , April - 2010 3 Why Today’s Six Sigma? • Cost Reduction – Resource Allocation, Project Prioritization • Revenue Growth – Customer Retention • Culture Change – Data-based Decision Making – Project Management Skills • Leadership Development • Execution Capability
  4. 4. Created by Somya De , April - 2010 4 What is Six Sigma? – Methodology that helps companies reduce costs and accelerate growth through discipline and long-term culture change – Improves business processes companywide, by using tools to build process capability, by reducing variation, and improving quality – Focus is on delighting the customer (voice of the customer) & providing excellent service in all business functions, not just manufacturing
  5. 5. Created by Somya De , April - 2010 5 What is Six Sigma? • Work is completed in a Project Team – Led by a company’s employee who is a trained Six Sigma expert. These project managers have titles related to their level of Six Sigma training, such as Black Belt or Green Belt. – The team is populated with members who also have some basic Six Sigma training, such as yellow or white belts.
  6. 6. Created by Somya De , April - 2010 6 Six Sigma Tools • Process MappingProcess Mapping • Failure Mode & Effect AnalysisFailure Mode & Effect Analysis • Measurement System EvaluationMeasurement System Evaluation • Statistical ToolsStatistical Tools • Design of ExperimentsDesign of Experiments • Control PlanControl Plan • Quality Function Deployment (QFD)Quality Function Deployment (QFD) • Activity Based ManagementActivity Based Management • Enterprise Resource PlanningEnterprise Resource Planning • Lean EnterpriseLean Enterprise • Total Productive Maintenance (TPM)Total Productive Maintenance (TPM)
  7. 7. Created by Somya De , April - 2010 7 Implementation Road MapImplementation Road Map Identify Core processes and Key CustomersIdentify Core processes and Key Customers Defining Customers RequirementsDefining Customers Requirements Measuring Current Performance.Measuring Current Performance. Six Sigma Process Improvements.Six Sigma Process Improvements. Six Sigma Process Design/ Redesign.Six Sigma Process Design/ Redesign. Expending and Integrating theExpending and Integrating the Six Sigma SystemSix Sigma System
  8. 8. Created by Somya De , April - 2010 8 Identify Core processes and Key CustomersIdentify Core processes and Key Customers Identify core and Support ProcessesIdentify core and Support Processes Define output and Key CustomersDefine output and Key Customers Create high level process Maps.Create high level process Maps.
  9. 9. Created by Somya De , April - 2010 9 Defining Customers RequirementsDefining Customers Requirements Gather Customer Data, DevelopGather Customer Data, Develop voice of the customer’ Strategy.voice of the customer’ Strategy. –Develop performance standardsDevelop performance standards and requirement statements.and requirement statements. Analyze and prioritizeAnalyze and prioritize requirements.requirements.
  10. 10. Created by Somya De , April - 2010 10 Measuring Current Performance.Measuring Current Performance. Plan and execute measurePlan and execute measure of performanceof performance against customer requirements.against customer requirements. Develop baseline defectDevelop baseline defect measure andmeasure and identify improvement opportunities.identify improvement opportunities.
  11. 11. Created by Somya De , April - 2010 11 Six Sigma Process Improvements/Six Sigma Process Design RedesignSix Sigma Process Improvements/Six Sigma Process Design Redesign .. Select Improvement Projects & Develop project Rationale Design /Redesign and implement effective new work process Analyze, develop & implement Root cause focused solution.
  12. 12. Created by Somya De , April - 2010 12 Expending and Integrating the Six Sigma System Implement ongoing measures & actions to sustain the improvement. Define Responsibility for process ownership & management. Execute “closed-loop” management And drive to Six Sigma.
  13. 13. Created by Somya De , April - 2010 13 Six Sigma is also a measure of variability. It is a name given to indicate how much of the data falls within the customers’ requirements. The higher the process sigma, the more of the process outputs, products and services, meet customers’ requirements – or, the fewer the defects. Sigma is the Greek letter that is a statistical unit of measurement used to define the standard deviation of a population. It measures the variability or spread of the data. Statistically Speaking
  14. 14. Created by Somya De , April - 2010 14 σ 2 3 4 5 6 308,537 66,807 6,210 233 3.4 69.2% 93.32% 99.379% 99.977% 99.9997% Yield Defects per Million Opportunities DPMO Statistically Speaking
  15. 15. Created by Somya De , April - 2010 15 • Six Sigma Black Belt methodology began in late 80’s/early 90’s – Motorola popularized corporate use of methodology • Next wave of companies to utilize Six Sigma: – GE – Allied Signal – Bombardier – Sony • Current deployments in Six Sigma have been broader in application and industry – Caterpillar – across enterprise and into dealer / supplier – USAA Financial Services – Starwood Hotels and Resorts – Home Depot – 3M • Common characteristics – Involves use of statistical tools on projects that yield high ROI. – Top-down program with Executive leadership – Utilizes full-time, Six Sigma trained project managers History
  16. 16. Created by Somya De , April - 2010 16 Six Sigma is a System  DMAIC improves existing processes, products, services, designs, plants, etc.  DFSS generates new processes, products, services, plants, etc.  Deployment & Infrastructure Management is the system that:  Prioritizes organizational action on the right things  Drives effective action  Ensures sustainability and consistency Improvement Methodology Design/ Redesign Methodology Deployment & Infrastructure Management Define &Define & MeasureMeasure Define &Define & MeasureMeasure AnalyzeAnalyzeAnalyzeAnalyze ImproveImproveImproveImprove ControlControlControlControl Initiate &Initiate & DefineDefine Initiate &Initiate & DefineDefine DesignDesignDesignDesign OptimizeOptimizeOptimizeOptimize VerifyVerifyVerifyVerify DMAIC Methodology for Process Improvement DFSS Methodology for Process/Product Design
  17. 17. Created by Somya De , April - 2010 17 Deployment Process for Driving Sustainable Results StrategyStrategy IntegrationIntegration Quality of Thinking Commitment Focus ExecutionExecution BuildingBuilding InfrastructureInfrastructure Prioritize the value streams with the best alignment to Strategy Train and Deploy Six Sigma teams on the highest priority projects Management engagement, resource commitment, productive teams
  18. 18. Created by Somya De , April - 2010 18 Analyze ControlImproveMeasureDefine • Project ID Tools • Project Definition Form • Value of Cycle Time • Net Present Value Analysis • Internal Rate of Return Analysis • Discounted Cash Flow Analysis • PIP Management Process • RACI • Quad Charts • Process Mapping • Value Stream Mapping • Process Cycle Efficiency • Lean Six Sigma Metrics • Process Sizing • Kaizen Events • Multi-Voting Techniques • Pareto Charts • C&E/Fishbone Diagrams • FMEA • Check Sheets • Run Charts • Control Charts • Gage R&R • Subjective Measurement Systems • Cp & Cpk • SupplyChainAccelerator S M Time Trap Analysis • Analytical Batch Sizing • Multi-Vari • Box Plots • Interaction Plots • Regression • ANOVA • C&E Matrices • FMEA • Brainstorming, Affinity • Benchmarking • Kaizen Events • Pull Systems • Generic • Replenishment • Part Stratification • Setup Reduction • TPM, 5S • Process Flow • Line Balancing • DOE • Hypothesis Testing • Force Field • Tree Diagrams • Gantt Charts • Check Sheets • Run Charts • Histograms • Scatter Diagrams • Control Charts • Visual Control Tools • Poka-Yoke • Pareto Charts • Interactive Reviews Lean tools highlighted in red Lean & Six Sigma Tools
  19. 19. Created by Somya De , April - 2010 19 What’s the difference? • Infrastructure and System • Burning Platform • Executive Driven - Visibility • Complete Company Involvement • Full-time Resources (getting most attention) • Project Management Methodology – Chartering and Scoping • Measurement and Tracking
  20. 20. Created by Somya De , April - 2010 20 Deployment Components • What’s the strategy? – How fast, how deep, how broad • Who are the key players? • What curriculum and training partner? • Project Selection • Communication • Training and Certification • Tracking and Reporting
  21. 21. Created by Somya De , April - 2010 21 Deployment Must Haves 1. Full executive commitment (CEO and direct reports) 2. P&L/Business owners must be accountable for results and should own and commit resources – typically 1% of population as Black Belts 3. Select projects to support business needs (strategic, financial objectives, customers) 4. Broad-based training in Six Sigma tools and team leadership skills 5. Actively manage PIP (Projects in Process) to keep project cycle times short and show results quickly 6. Rigorously measure and track results (projects and deployment) 7. Drive culture change from both top-down and bottom-up perspective – The Soft Stuff is the Hard Stuff 8. Use A -Team for deployment (consultants, program managers, 1st wave belts)
  22. 22. Created by Somya De , April - 2010 2222 Three Potential Deployment Alternatives – Pro’s and Con’s Global Deployment • Overwhelms organizational opposition • Largest mass to generate results and momentum • Highest ROI from economies of scale on cost and acceleration of benefits • Requires top level headroom and commitment • Intense planning effort upfront • Required effort is underestimated Staged Deployment • Provides critical mass necessary to generate results and momentum • Can adjust as waves follow (DMAIC – DFSS) • Faster start-up (less intense design, not tied to open-class schedule) • Total transformation may be slowed Train a Few Black Belts • Low total cost • Exposure to other organizations’ application of process • Good approach if “experimentation” is a key objective • Small/No business impact • High risk of organization “rejection” because organization does not think management is serious AlternativeAlternative Pro’sPro’s Con’sCon’s
  23. 23. Created by Somya De , April - 2010 23 All Employees • Understand vision • Apply concepts to their job and work area • Owns vision, direct, integration, results • Leads change • Project owner • Implements solutions • Owns financial results • Part time as part of job • Trains and coaches Black Belts and Six Sigma Green Belts • Leads large/complex projects • Full time • Leads and Facilitates problem solving • Trains and coaches Project Teams • Full-time • Participate on Black Belts teams and/or lead small projects • Part time on projects • Provide project- specific support • Part time • Leads business unit performance improvement • Full time DeploymentDeployment ChampionsChampions ProjectProject SponsorsSponsors MasterMaster Black BeltsBlack Belts Project TeamProject Team MembersMembers Executives /Executives / BU LeadershipBU Leadership Green BeltsGreen Belts Black BeltsBlack Belts Six Sigma Commitment Required at Every Level
  24. 24. Created by Somya De , April - 2010 24 Applying Six Sigma to Service and Manufacturing
  25. 25. Created by Somya De , April - 2010 25 Six Sigma in ServicesSix Sigma in Services • Start with the processStart with the process  Investigate and rediscover your processInvestigate and rediscover your process • Fine-tune the problemFine-tune the problem  Problem definition and scaling of the project.Problem definition and scaling of the project. • Making good use of facts and data to reduceMaking good use of facts and data to reduce ambiguity.ambiguity. • Don’t overemphasize statisticsDon’t overemphasize statistics  Many service groups are not ready for detailedMany service groups are not ready for detailed statistics at the outset, timing is very important.statistics at the outset, timing is very important.
  26. 26. Created by Somya De , April - 2010 26 Six Sigma in ManufacturingSix Sigma in Manufacturing • Adopting a broader perspectiveAdopting a broader perspective - Communication and coordination all along theCommunication and coordination all along the critical process not production in isolation.critical process not production in isolation. • Moving past “certification” to ImprovementMoving past “certification” to Improvement - Not focusing on just certification andNot focusing on just certification and documentation, but improving the processes.documentation, but improving the processes. • Adapting tools to your manufacturingAdapting tools to your manufacturing environmentenvironment - Select, apply, and adapt methods and ideas to fit- Select, apply, and adapt methods and ideas to fit your organization.your organization.
  27. 27. Created by Somya De , April - 2010 27 Obvious AreasObvious Areas forfor ImprovementImprovement
  28. 28. Created by Somya De , April - 2010 28 Internal DefectsInternal Defects • Any scrap produced by your processesAny scrap produced by your processes • Any item reworked in a process (sales contracts,Any item reworked in a process (sales contracts, invoices, surgeries, software, etc.)invoices, surgeries, software, etc.) • Any process with high variation in the productAny process with high variation in the product outputoutput • Any process with high variation in the materialAny process with high variation in the material consumptionconsumption • Any process with many “hand-offs” betweenAny process with many “hand-offs” between individuals or business groupsindividuals or business groups
  29. 29. Created by Somya De , April - 2010 29 External DefectsExternal Defects • Audits (customer, regulatory or internal )Audits (customer, regulatory or internal ) discovering non-compliance issuesdiscovering non-compliance issues • Any out of specification (customer,Any out of specification (customer, regulatory or internal) outputregulatory or internal) output • Any inspection process in yourAny inspection process in your organizationorganization
  30. 30. Created by Somya De , April - 2010 30 Efficiency/Capacity IssuesEfficiency/Capacity Issues • Processes producing less than expectedProcesses producing less than expected • Processes requiring overtime not requested by aProcesses requiring overtime not requested by a customercustomer • Processes requiring cycle times in excess ofProcesses requiring cycle times in excess of expectationsexpectations • Processes with computer/machine downtimeProcesses with computer/machine downtime • Process requiring expedited shipping andProcess requiring expedited shipping and associated costs due to delayed outputassociated costs due to delayed output productionproduction • Any process that has added labor to make theAny process that has added labor to make the required cyclerequired cycle
  31. 31. Created by Somya De , April - 2010 31 Understanding Process VariationUnderstanding Process Variation • How much variation is there in your incoming materialsHow much variation is there in your incoming materials and/or process parameters and how does this affect yourand/or process parameters and how does this affect your output?output? • Where do you need the input controlled to always have aWhere do you need the input controlled to always have a good output?good output? • Can you scientifically adjust your process to compensateCan you scientifically adjust your process to compensate for changing material, weather, etc.?for changing material, weather, etc.? • Can your Black Belt help your supplier do a project toCan your Black Belt help your supplier do a project to control the incoming product where you need it?control the incoming product where you need it? • Does understanding your inputs allow you to produce aDoes understanding your inputs allow you to produce a good part using less materialgood part using less material
  32. 32. Created by Somya De , April - 2010 32 Certification • Common certification process for Master Black Belt, Black Belt, Green Belt • Based on training, testing, experience and successful projects – Participates in all SS training and passes all exam work – Successfully complete two projects – Endorsement from Trainer of successful completion of classroom portion of training – Endorsement from Coach confirming application of SS principles in project work – Endorsement from all Project Sponsors stipulating to the effective use of SS in completion of projects. – Endorsement from Deployment Champion as to the application of SS principles through the control phase for the projects assigned
  33. 33. Created by Somya De , April - 2010 33 Time Implications • Actual training time – Black Belt: 5 weeks within 5 months – Green Belts: 2 weeks within 2 months – Yellow Belt: 1 week – Project Management Classes: as needed – Software Training: determined by individual need • Mentoring Time – Between each set of training weeks, the belt candidate receives 4-8 hours of individual mentoring • Project Work – Black Belt: Full-time – Green Belt: 25% of their time (on average) – Yellow Belt: depends on project
  34. 34. Created by Somya De , April - 2010 34 Characteristics of a Good Black Belt • Team Facilitation – Strong ability to lead effective teams • Problem Solving – Proven orientation to be a problem solver • Process Orientation – Demonstrated ability to understand and identify process vs. functions • Change Facilitation – Demonstrated ability to drive change across functional boundaries • Communication Skills – Ability to engage a wider audience through a variety of media, but including presentation • Computer Knowledge – Ability to effectively utilize technology, including Microsoft Office applications, or applicable, and the web • Financial Skills – Ability to understand basic financial documents (I.e Income statement and balance sheet) and develop project based cost/benefit analysis • Program and Project Management – Ability to develop a workplan and actively lead a team through it’s completion
  35. 35. Created by Somya De , April - 2010 35 WIIFM (What’s In It For Me?) • Six Sigma Certification – Internal / external • Manage Six Sigma Resources • Internal Collaboration Role • Help stakeholders understand how various project tools, reporting requirements, teams, and methods can work together and enhance results • General knowledge
  36. 36. Created by Somya De , April - 2010 36 Six Sigma Benefits • Delivers shareholder valueDelivers shareholder value • Generates very high return on investmentGenerates very high return on investment • Translates strategic goals into resultsTranslates strategic goals into results • Delivers dramatic performance improvementsDelivers dramatic performance improvements within monthswithin months • Increases revenue and reduces costsIncreases revenue and reduces costs simultaneouslysimultaneously • Drives core processes and customer serviceDrives core processes and customer service excellenceexcellence • Developers and entrepreneurial cultureDevelopers and entrepreneurial culture
  37. 37. Created by Somya De , April - 2010 37 Thank You

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