realizing the cultural change for truly integrated deployment
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Hung Le, Ph.D.Master Black BeltNorthrop Grumman Corporation
Confronting the Reality of Lean Six Sigma: Realizing the Cultural Change for Truly Integrated Deployment
Lean Six Sigma ConferenceDallas Dec. 1-3, 2004
Confronting the Reality of Lean Six Sigma: Realizing the Cultural Change for Truly Integrated Deployment
Lean Six Sigma ConferenceDallas Dec. 1-3, 2004
Copyright 2004 Northrop Grumman Corporation
2
Agenda
• Our path to Enterprise Excellence– An integrated approach to process improvement
– Six Sigma implementation model
– Continuing to reinforce our Six Sigma culture, sustaining the gain and building momentum
• Integration of Lean and Six Sigma– Understanding the impact of Lean Six Sigma
– Embedding Lean Six Sigma within the organization and strategic focus of the business for a blended approach
– Managing the cultural changes associated with Lean Six Sigma
• Institutionalization of Process Improvements
Copyright 2004 Northrop Grumman Corporation
3
Business MeasuresBusiness Measures
Voice of the Customer
Voice of the Customer
Change Management
Change Management
Process Management
Process Management
DMAICDFSS
DMAICDFSS
Methods & Tools
Methods & Tools
Enterprise ExcellenceEnterprise Excellence
ISO 9001AS9100
ISO 9001AS9100 CMMICMMI
Integrated Approach to Process Improvement
Six Sigma – framework for ensuring process improvements support corporate goals
ISO 9001 – quality management discipline for project and functional areasAS9100 – quality system requirements for suppliers to the aerospace industryCMMI – use of industry best practices in software/systems engineering
Six SigmaSix Sigma
Copyright 2004 Northrop Grumman Corporation
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Our Process Improvement Implementation
We use projects to drive process and product
improvement (strategic and tactical)
Engaged with External Customers
•Visibility • Participation
Linked with Business Planning
And Oversight •Business planning•Project selection
Enabled byInfrastructure • Training• Tools• Awareness• Database
SPM
Level 2 Self Assessment & Monitoring
Quality Goals
Performance
Objectives
Performance
Metrics
Relative Weight
Benchmark/Baseline
1
2
3
4
5
6
7
8
9
10
Quality Goals1 2 3 4 5 6 7 8 9 10
Sum=100
Inte
grat
ed
Pr o
duc t
D
eve
lop m
ent
Em
plo
yee
retr
ain
ing
ISO
90
00
Qu
ality
Cu
stom
er
Sat
isfa
ctio
n
Co m
pet
itive
A
nal
ysis
Nu
mb
er o
f IP
DT
eam
s st
arte
d
Per
cen
t of
E
mpl
oye
es R
etra
ine
d
Pe r
cen
t of
O
rien
t ati o
n M
eet
ings
Per
cen
t D
efec
tre
duct
ion
Per
cen
t co
mpl
ain
tre
duct
ion
Com
plet
ed
Stu
dies
20 20 10 25 20 5
20 50% 100% 20% 10% 3
EXAMPLE OF TOOL USAGELevel 2 Self Assessment & Monitoring
6
Current Performance - Baseline
10
8
6
4
2
0
(circle current actual performance)
Potential Totals
1000_____ Goal Met
200____ No Gain
0_____ Worse
Improvement
Rating x weight
Previous Total
Current Total
Improvement Rating(0-10)
18 40% 100% 20% 10 2
15 35 80 17 8 1
12 30 60 14 6 0
9 25 40 11 4 0
20 20 8 2 0
3 15 0 5 1 0
80 120 80 150 160 10
480
600
EXAMPLE OF TOOL USAGE
Quantitative Process
Capability Measuremen
t and Assessment
Report
Integrated with Overall Quality Program
•Integrated Training, Awareness, & Policies
•Integrated CMMI & Six Sigma projects
•Integrated tracking and reporting via DB, PRA, etc.
Tied to Employee Performance
•Goals, Special Awards•Job and career paths
Copyright 2004 Northrop Grumman Corporation
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Continue to Reinforce Our Six Sigma Culture
• Clarity: Clear objectives with measurable results, precise process and role definitions
• Communication: Constant, effective communication
• Leverage: Mobilize key stakeholders at all levels of the organization
– Leadership engagement and support– Stakeholder enrollment (internal, external)
• Relevance: New processes have clear, ‘transparent’ benefits to the company and to individuals in their daily jobs
• Ownership: Align goals of business units and functional areas to corporate vision (Strategic Decomposition)
– Process accountability at the executive level– Responsibility and ownership of change at working level
• “Scoreboard” – Visible measures, monitoring and feedback
Copyright 2004 Northrop Grumman Corporation
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Competitive DifferentiationCompetitive Differentiation
ValueValue
Quality
& P
roce
ss Im
prove
men
t Tools
Set
Process Process Improvement / Improvement / Performance Performance ExcellenceExcellence
LeanSix Sigma
CMMI
ISO
Alignment to Strategic
Enterprise Enterprise ExcellenceExcellence
Aligning With Our Corporate Goal
Our objective is to incorporate Lean quality tools into our Six Sigma culture to speed up our effort toward
achieving Enterprise Excellence
…
Our Five Key Behaviors:• Live the Company
Values• Focus on Operating
Excellence• Act with Speed• Communicate Openly• Collaborate Across the
Company
Benchmarking
Copyright 2004 Northrop Grumman Corporation
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Focus on collaboration — within the organization and between the organization and business partners
Leverage experience and creatively tailor approaches
Produce results and new capabilities
We must manage change in a way which produces results and new capabilities. This is achieved by facilitating critical skills needed to sustain change and manage challenges which will inevitably occur . . .
Sustaining Change and Building Momentum
Copyright 2004 Northrop Grumman Corporation
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Challenges in Integrating Lean and Six Sigma
• May be viewed as another quality initiative
• Very different mindset in terms of approach– Focus of quality improvement– Analysis rigor– Bias for analysis vs. action …
• “Loyalty” to the methodology – Program vs. Framework/Tool Set
• A flexible framework to address a broad range of problems
• Need a cadre of strong Black Belts to guide teams
• Managing the deployment of an integrated framework
Copyright 2004 Northrop Grumman Corporation
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• Characterize process improvement problem types
• Define approaches best suited for different classes of problems
• Incorporate Lean tools into our problem solving approaches
Flexible Framework for Improvements
Customer PainsCustomer Pains
Customer RequirementsCustomer Requirements
Process AnalysisProcess Analysis
Performance Benchmarks andPerformance Benchmarks andBest PracticesBest Practices
Quick Hits
Strategic/Long-Term Improvements
Process Improvements
ProcessImprovement
Portfolio
Customer PainsCustomer Pains
Customer RequirementsCustomer Requirements
Process AnalysisProcess Analysis
Performance Benchmarks andPerformance Benchmarks andBest PracticesBest Practices
Quick Hits
Strategic/Long-Term Improvements
Process Improvements
ProcessImprovement
Portfolio
APPROACH
Lean
Rapid Improvement
Lean Six Sigma
DMAIC
DFSS
ClearExpectedOutputs
IMPROVEMENT OPPORTUNITIES
Copyright 2004 Northrop Grumman Corporation
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Embedding Lean in Our Culture
Training Environment• Curriculum revision• Train-the-Trainer• Workshops
Governance Model /
Infrastructure• Selecting Projects• Trad. vs. Alt. Training• Reviewing Project Status• Business Cases• Completing Projects
The Lifecycle of a Typical Project
Schedule Project for Training
Industry Best Practice: train people with projects
Identify top priority projects, based on gap
Assign Green Belts & Black Belt to Project
Scope project / financial benefit
Complete Project
Refine Business Case
Review Projects
Identify Key Opportunities– Near
and Longer Term
Schedule Project for Training
Industry Best Practice: train people with projects
Identify top priority projects, based on gap
Assign Green Belts & Black Belt to Project
Scope project / financial benefit
Complete Project
Refine Business Case
Review Projects
Identify Key Opportunities– Near
and Longer Term
Stakeholders Commitment• Stakeholders impacted• Impacts• Communication Plan
Copyright 2004 Northrop Grumman Corporation
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Tools & Infrastructure to Develop and Reinforce a Culture for Enterprise Excellence Throughout Our Geographically Dispersed Organization
Supporting Tools and Infrastructure
Copyright 2004 Northrop Grumman Corporation
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Project Plans
CMMI
Project Results
OrganizationalTraining & Tools
Industry/Government Standards
ISO
Customer
Specific
OrganizationalPolicies & Processes
Process Improvement
Process Improvement
Communications Sharing best-practices Measurement & dashboards
Communications Sharing best-practices Measurement & dashboards
Metrics Database
Organizational PerformanceOrganizational Performance
Project Performance
Project Performance
Project Schedules & Budgets
Institutionalizing Our Improvements
Copyright 2004 Northrop Grumman Corporation
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Summary
• Focus on Enterprise Excellence … It is a journey
• Use Lean Six Sigma tools to drive change deep into the organization
• Black Belt development critical in providing guidance to teams on problem solving approaches
• Executive leadership and support required to sustain change and build momentum
• Framework must be flexible and adaptable to address a broad range of problems
• Success requires effective integration of all quality initiatives and sharing of infrastructure
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