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1Confidential & ProprietaryCreated by Michelle Goodman, 2005 MORE THAN CONSULTANTS. WERE ESSENTIALISTS.
The ABCs of Six Sigma
Six Sigma Methodology in todayscorporate environment
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2Confidential & ProprietaryCreated by Michelle Goodman, 2005 MORE THAN CONSULTANTS. WERE ESSENTIALISTS.
A to Z for today
Why are companies interested? What is Six Sigma (basic)? History Methodology What is a deployment? Critical Success Factors WIIFM
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3Confidential & ProprietaryCreated by Michelle Goodman, 2005 MORE THAN CONSULTANTS. WERE ESSENTIALISTS.
Why Todays 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
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4Confidential & ProprietaryCreated by Michelle Goodman, 2005 MORE THAN CONSULTANTS. WERE ESSENTIALISTS.
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
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5Confidential & ProprietaryCreated by Michelle Goodman, 2005 MORE THAN CONSULTANTS. WERE ESSENTIALISTS.
What is Six Sigma?
Work is completed in a Project Team
Led by a companys 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.
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6Confidential & ProprietaryCreated by Michelle Goodman, 2005 MORE THAN CONSULTANTS. WERE ESSENTIALISTS.
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
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7Confidential & ProprietaryCreated by Michelle Goodman, 2005 MORE THAN CONSULTANTS. WERE ESSENTIALISTS.
?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
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8Confidential & ProprietaryCreated by Michelle Goodman, 2005 MORE THAN CONSULTANTS. WERE ESSENTIALISTS.
Six Sigma Black Belt methodology began in late 80s/early 90s 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
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9Confidential & ProprietaryCreated by Michelle Goodman, 2005 MORE THAN CONSULTANTS. WERE ESSENTIALISTS.
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
Improvement Methodology
Design/Redesign
Methodology
Design/Redesign
Methodology
Deployment & InfrastructureManagement
Deployment & InfrastructureManagement
Define &MeasureDefine &Define &MeasureMeasure Analyze
Analyze Analyze ImproveImproveImprove Control Control Control
Initiate &Define
Initiate &Initiate &DefineDefine Design
DesignDesign OptimizeOptimizeOptimize VerifyVerifyVerify
DMAIC Methodology for Process Improvement
DFSS Methodology for Process/Product Design
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10Confidential & ProprietaryCreated by Michelle Goodman, 2005 MORE THAN CONSULTANTS. WERE ESSENTIALISTS.
Deployment Process for Driving Sustainable Results
StrategyStrategyIntegrationIntegration
Quality of Thinking
Commitment
Focus
ExecutionExecution
BuildingBuildingInfrastructureInfrastructure
Prioritize the value streams with the
bestalignment to
Strategy
Train and Deploy Six Sigma teams on the highest
priorityprojects
Management engagement, resource commitment, productive teams
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11Confidential & ProprietaryCreated by Michelle Goodman, 2005 MORE THAN CONSULTANTS. WERE ESSENTIALISTS.
AnalyzeAnalyze ControlControlImproveImproveMeasureMeasureDefineDefine
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
SM
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
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12Confidential & ProprietaryCreated by Michelle Goodman, 2005 MORE THAN CONSULTANTS. WERE ESSENTIALISTS.
Whats 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
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13Confidential & ProprietaryCreated by Michelle Goodman, 2005 MORE THAN CONSULTANTS. WERE ESSENTIALISTS.
Deployment Components
Whats 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
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14Confidential & ProprietaryCreated by Michelle Goodman, 2005 MORE THAN CONSULTANTS. WERE ESSENTIALISTS.
Deployment Must Haves1. 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 Stuff8. Use A -Team for deployment (consultants, program managers,
1st wave belts)
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15Confidential & ProprietaryCreated by Michelle Goodman, 2005 MORE THAN CONSULTANTS. WERE ESSENTIALISTS.
Three Potential Deployment Alternatives Pros and Cons
Total transformation may be slowed
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)
Staged Deployment
Requires top level headroom and commitment
Intense planning effort upfront Required effort is
underestimated
Overwhelms organizational opposition Largest mass to generate results and
momentum Highest ROI from economies of scale on
cost and acceleration of benefits
GlobalDeployment
Small/No business impact High risk of organization
rejection because organization does not think management is serious
Low total cost Exposure to other organizations
application of process Good approach if experimentation
is a key objective
Train a Few Black Belts
AlternativeAlternative ProsPros ConsCons
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16Confidential & ProprietaryCreated by Michelle Goodman, 2005 MORE THAN CONSULTANTS. WERE ESSENTIALISTS.
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
DeploymentDeploymentChampionsChampions
ProjectProjectSponsorsSponsors
MasterMasterBlack BeltsBlack Belts
Project TeamProject TeamMembersMembers
Executives /Executives /BU LeadershipBU Leadership
Green BeltsGreen Belts Black BeltsBlack Belts
Six Sigma Commitment Required at Every Level
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17Confidential & ProprietaryCreated by Michelle Goodman, 2005 MORE THAN CONSULTANTS. WERE ESSENTIALISTS.
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
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18Confidential & ProprietaryCreated by Michelle Goodman, 2005 MORE THAN CONSULTANTS. WERE ESSENTIALISTS.
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
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19Confidential & ProprietaryCreated by Michelle Goodman, 2005 MORE THAN CONSULTANTS. WERE ESSENTIALISTS.
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 its completion
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20Confidential & ProprietaryCreated by Michelle Goodman, 2005 MORE THAN CONSULTANTS. WERE ESSENTIALISTS.
WIIFM(Whats 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
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21Confidential & ProprietaryCreated by Michelle Goodman, 2005 MORE THAN CONSULTANTS. WERE ESSENTIALISTS.
Michelle Goodman, MBA,PMP Program Manager
Six Sigma Deployment Champion13100 Wayzata Blvd, Suite 160
Minnetonka, MN 55305(651) 261-9422 (Cell)
mgoodman@trissential.comwww.trissential.com
The ABCs of Six Sigma Conclusion
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