sixsigma rgr 08.12

7/31/2019 Sixsigma Rgr 08.12

1/27

... a business strategy for achieving and sustaining

world class performance

S I G M AB R E A K A W A Y P E R F O R M A N C E

7/31/2019 Sixsigma Rgr 08.12

2/27

Topics for Discussion

Why pursue Six Sigma Improvement?

What is SIGMA Breakaway Performance?

What is PwCs approach to supporting Sigma implementation?

What are the Critical Success Factors? Where else is Sigma being applied? How is PwC involved?

What couldSix Sigma implementation look like for you?

How do PwCs other capabilities support effective Sigmaimplementation?

7/31/2019 Sixsigma Rgr 08.12

3/27

Why Pursue Six Sigma Improvement ?

Why do you need to consider using a Six Sigmaapproach? Existing process improvement efforts may not have delivered the financial

benefits promised?

Productivity goals and financial results are not meeting organizational targets? Core processes are still out of alignment with organizational strategy?

Where will you apply the Six Sigma Methodology in the

longer term for cumulative impact of results? Improve throughput on key processes; allow for increased capacity; reduce the

amount and cost of rework; reduce the cost of processing?

Where is the Pain in your organization?

7/31/2019 Sixsigma Rgr 08.12

4/27

What is SIGMA Breakaway Performance?

Strategy Integration Across-the-board, large-scale integration of fundamental changes

throughout the organization impacting and linking people,

processes, and customers to achieve and sustain

breakaway results.

Process Focus Focus on improving business processes using tools and

methodologies targeted at reducing variation and defects, reducingcost, building capacity, improving control and dramatically

improving business results.

A vehicle for strategic change an organizational approach

to performance excellence.

7/31/2019 Sixsigma Rgr 08.12

5/27

Six sigma is also a measure of variability. It is a name given to indicate howmuch of the data falls within the customers requirements. The higher the

process sigma, the more of the process outputs, products and services, meetcustomers 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.

What is Sigma?

7/31/2019 Sixsigma Rgr 08.12

6/27

Sigma Business Improvement Concept

Mindset: a discipline

Methodology for improvement

Measurement of performance

Traditional process analysis starts by examining the process inside theorganization. Sigma looks at the market and customers and then asks

how you can minimize defects in their terms.

7/31/2019 Sixsigma Rgr 08.12

7/27

PwCs Multifunctional ApproachPwCs ability to integrate and align Sigma with your business purpose.

TECHNOLOGY

PROCESS MANAGEMENT

CHANGE MANAGEMENT

BUSINESS STRATEGY

ANALYZE PLAN FOCUS BUILD

Sigma implementation linkage to strategy

Management of business processes

Committed leadership, communication, incentives, training

Enabler of process improvement and flow of data

7/31/2019 Sixsigma Rgr 08.12

8/27

Critical Success Factors for EffectiveSigma Implementation

Establishing these factorsprovides the seeds ofsuccess.

They need to be integrateduniquely to fit each

business.

The most powerfulsuccess factor iscommitted leadership.

They are all necessary forthe best result.

7/31/2019 Sixsigma Rgr 08.12

9/27

Process Management

PwCs Sigma Breakaway Methodologies

DFSS generates new processes,products, services, and or plants

SIGMA Improvement Processimproves existing processperformance

Process Management is the

system that enables leverageand sustaining gains achievedby DFSS and SIGMAImprovement Process

The three principal methods used in the Implementation Phase are: The

SIGMA Improvement Process (DMAIC), Design for Six Sigma (DFSS), andProcess Management

7/31/2019 Sixsigma Rgr 08.12

10/27

Black Belt

MBB

Train-the

Trainer

BBDMAIC

Train Coach

DFSS

LEAN

ADVANCED DOE

Green Belt

PwC Six Sigma Support Services

LEADERS

PLANT MGRS

CHAMPIONS

5 Hours Awareness Training

3 Days Training with Simulation

1 Day Awareness Training

MFG

NON-MFG

Train Coach

5 Days Basic DMAIC

BB Prerequisite

2 Weeks Leadership,

Change Mgt.,Adv.Stats.

MBB Prerequisite

1 Week Teaching Skills

20 Days with Heavy DOE

Certification Available

15 Days with Light DOE

Certification Available

BB Prerequisite

5 days Training with Simulation

BB Prerequisite

Classical DOE, Taguchi, Shainin

5 days Training

BB Prerequisite

10 Days DMEDI

DFSS at

e-speed

Consulting and Infrastructure Development

DFSS for e-business

strategy implementation

PROCESS MGMTProcess management for process owners

7/31/2019 Sixsigma Rgr 08.12

11/27

PwC Six Sigma Capabilities

PwC has global deployment capability of Six Sigma Professionals Prior Business and Industry experience, many having held senior leadership

positions Six Sigma Senior Program Managers Experienced Master Black Belts and Consultants Experienced Black Belts

Six Sigma Professionals deliver consulting services in: Executive Coaching Champion Coaching Master Black Belt and Black Belt Coaching Six Sigma Planning, Deployment, and Implementation Six Sigma Training Strategic Planning Communications Change Management

7/31/2019 Sixsigma Rgr 08.12

12/27

PwC Deployment Capability

Asia Pacific: 3-4 Consultants who teach methodology in Mandarin Chinese

Senior Program Manager

MBBs

BBs

Totals

824

33

65

US EMEA AsiaPac

4 16 3

10 8

20 12

7/31/2019 Sixsigma Rgr 08.12

13/27

PwC Six Sigma Clients

Chemicals LG Chemicals

DuPont

SKW Chemical

Air Products and Chemicals

Dow Chemical

Vehicles

Bombardier

Lear Corporation

Dow Automotive Dana Corporation

Caterpillar

Services

GE Capital J.P. MorganChase

AIG (Insurance)

American General

Allstate

GMAC Mortgage

Unifi Web HR (Outsourcing)

Penske

Others

Johnson & Johnson

Gateway Philips

LG Telecom

LG Caltex Oil

7/31/2019 Sixsigma Rgr 08.12

14/27

PwCs SIGMA Breakaway Performance- A Powerfully Integrated Approach

I. ANALYZEConduct business diagnostics to assess overallreadiness, potential rewards, and identify gaps.

II. PLAN

Discover opportunities and develop a plan toclose gaps and integrate PwCs SIGMABreakaway Results.

III. FOCUSClose gaps and collaborate on the best

opportunities to drive out costs and increaserevenues.

IV. BUILD

Enable and motivate an organization to sustain

and multiply improvements.

PwC guides you from strategy through implementation to results.

7/31/2019 Sixsigma Rgr 08.12

15/27

Analyze

Evaluate the readiness of any

organization to implement Six

Sigma.

Profile the organizations current

alignment with its market place andidentify crucial gaps.

Establish performance benchmarks

and identify sigma opportunities.

Conduct business diagnostics to assess overall readiness,

potential rewards, and identify gaps.

Competitive analysis results

Identification of:

Process performance gaps relative to

customer needs and competitors

Existence of process management

framework and ownership for

business results

Initial sigma opportunities

Evaluation of organizational barriers to

Six Sigma implementation:

Existence of change vision

Appropriate business structure and

systems

Readiness for change.

Outputs

Methods:Research, Customer surveys,Focus groups, Interviews.

PwC guides your organization in analyzing where opportunities lie that will align

business process and employees directly with marketplace requirements.

7/31/2019 Sixsigma Rgr 08.12

16/27

PlanDiscover opportunities, develop a plan to close gaps and integrate

SIGMA Breakaway Performance.

Integrate Six Sigma tactics and thinking with

the overall business strategy.

Determine performance targets for core

business processes.

Define roles and responsibilities of senior

leaders and process owners.

Finalize the Six Sigma implementation scope,

schedule and deliverables.

Develop strategy to manage and communicate

change, sustain organization perception of Six

Sigma as a part of daily work life.

Engage a living document review process

and develop a team process integration andstrategy.

Links process to business strategy

Development of:

Gap action plan

Communication plan

Strategy to manage and sustain change

Understanding of SIGMA Breakaway Performance Implementation of:

Success measures (net benefits)

Scope and strategy integration

Identification of:

Core processes and performance targets

Core process owners roles and responsibilities

Core process sigma performance.

Outputs

Methods:Facilitated management off-site,mentoring and consulting.

The drive to achieve world-class performance is based on customer and competitor analysis,so not all processes need to be at Six Sigma. PwC helps you target resources to where

improvements will have the greatest impact.

7/31/2019 Sixsigma Rgr 08.12

17/27

FocusClose gaps and collaborate on best opportunities to drive out cost

and increase revenues.

Develop the knowledge and discipline

needed for business unit managers to

implement Six Sigma effectively.

Refine approach to monitor Voice of

the Customer and process

performance.

Refine and strengthen the foundation

for process management evolution.

Translate strategies and customer

alignment requirements into business

unit strategy.

Identify specific next steps.

Implementation of:

Action plans previously identified

Review, replication and standardization processes

Communication and change management plan

Voice of the Customer monitors

Development of:

Core process and subprocess maps

Timelines and targets for six sigma net benefits

Understanding of SIGMA Breakaway Performance

Identification of:

Process owners roles and responsibilities

Core processes that have strategic impact

Process management disciplines

Selection of: Potential Black Belts and Master Black Belts

Projects for improvement teams.

Outputs

By integrating Six Sigma methodology with existing systems and processes, business strategy,

and key performance measures, PwC helps organizations empower employees to create a culture of

exponential improvement - an organization with unlimited potential for continued growth and success.

Methods: Facilitated workshops, mentoringand consulting.

7/31/2019 Sixsigma Rgr 08.12

18/27

BuildEnable and motivate an organization to sustain and multiply

improvements.

Partner with organization to launch Six Sigma

projects and build in-house skills, discipline, and

capabilities.

Leadership and teams use the Sigma

Improvement Process to support and sustain

growth, engage ongoing improvements and

multiply bottom-line results. Employees are engaged in process management

and improvement on a daily basis.

Certified Black Belts usually complete a project

within 2-3 months.

Customer requirements and satisfaction is part of

executing every activity - by every employee-

every day.

Experience demonstrates projects generating

results usually within just 4-6 months, not

including quick-wins.

Identification of:

Specific project goals and objectives

Critical customer requirements

Problems statements

Valid root causes

Process inefficiencies

Development of: Solution ideas and evaluation criteria

New process model

Measurements and metrics to assess performance

against goals

Implementation and communication plans for

solution concepts

Implementation of:

Improvement Solutions

On-going measurement and process management

Continuous improvement process.

Outputs

Real-world experience shows that each Black Belt within a organization has the

potential to produce up to $1,000,000 in Six Sigma gains per year.

Methods:Facilitated workshops, training,mentoring (coaching) and consulting.

7/31/2019 Sixsigma Rgr 08.12

19/27

The PwC methodology includes skill transfer through

just-in-time development and facilitation of project teams

and Black Belts.

Sigma Improvement Process: DMAIC

Focuses on real problemsdirectly related to the bottom-lineRealizes results in 4-6 months

Utilizes multiple tools andtechniques including rigorousstatistical methods when needed

Sustains improvement over thelong-term

Disseminates improvementthroughout the organization

Acts as an agent of change

Define Opportunities

Measure Performance

Analyze Opportunity

Improve Performance

Control Performance

7/31/2019 Sixsigma Rgr 08.12

20/27

Black Belt Training - DMAIC

Week 1 - Define& Measure

Six Sigma Simulation

Project Chartering

Process Mapping

Voice of Customer

Data Collection

Sampling

MSE

Variation

Sigma Calculations

Week 2 - Analyze

Review of D&M

Statistical Thinking

StratificationRoot Cause Analysis

Regression Topics

Hypothesis Testing

Creativity

Week 3 - DOE

Design of Experimentswith Case Studies

Week 4 - Improve &Control

Generate Improvement

Ideas

Select Solutions

Manage Change

Piloting Solutions

Process Management

Project Closeout

MINITAB Software is Used for all Statistical Applications

Typical Black Belt Training - DMAIC

7/31/2019 Sixsigma Rgr 08.12

21/27

Sigma Roles/Responsibilities

Focuses on significant improvements in

effectiveness and efficiency

Uses SIGMA tools and conducts project

activities based on the methodology

Develop Skills and Lead

Experienced in the utilization of the SIGMA

Improvement Process and basic statistical tools

Acts as change agent and resource for project

teams

Train, Coach, and Advise

Seasoned Black Belts

Provides advice and coaching for SIGMA

Breakaway Performance and advanced

statistical tool use

Assists change implementation

Consultant member of business management

team

Black Belts

Senior LeadershipTeam

ImprovementProject Team

Team SupporterEmployees

Provides expert subject matter knowledge

Provides resources, and moral support

Implements deployment strategy

Manages for results

Implements change goals

Establishes sigma targets based on the customer and

business requirements

Develops the deployment strategy

Provides ongoing review of results

Establishes change goals

Master

Black Belts

BusinessManagement Team

7/31/2019 Sixsigma Rgr 08.12

22/27

7/31/2019 Sixsigma Rgr 08.12

23/27

Typical Deployment Timeline

Assessment

Analyze & Focus:Strategic Direction

Plan:Business GroupMobilization

ChangeInfrastructure

Change Management/Communication

Process Management

Project Management

Infrastructure Development

Mth 1 Mth 2 Mth 3 Mth 4 Mth 5 Mth 6 Mth 7 Mth 8 Mth 9 Mth 10 Mth 11

StrategicPrioritiesWorkshop

Year 1

Planning &

Team

Mobilization

Business

Group 1

Program

Configuration

Build:Black/GreenBelt Knowledge

Wave 1

Wave 2

Wave 3

Business

Group 2

Business

Group 3

CoachingCoaching Coaching Coaching

Coaching Coaching Coaching Coaching

Coaching Coaching Coaching Coaching

ChampionsWorkshop

ChampionsWorkshop

Champions

Workshop

LeadershipTeam

Workshop

LeadershipTeam

Workshop

LeadershipTeam

Workshop

Leadership Reviews of Black Belt Projects



Leadership Reviews of Processes



Executive leadership Review of Six Sigma Deployment and ImplementationExecutiveWorkshop

Six Sigma

Process

Centered

Enterprise

7/31/2019 Sixsigma Rgr 08.12

24/27

The PwC methodology includes skill transfer through

just-in-time development and facilitation of project teams

and Black Belts.

Design for Six Sigma: DMEDI

Focuses on development of newproducts, services, processes, andplants that precisely meet customer

current and future needs Realizes results in 6-36 months

depending on type of project

Utilizes multiple tools andtechniques including rigorousstatistical methods when needed

Sustains improvement over thelong-term

Disseminates improvementthroughout the organization

Acts as an agent of change

Define Opportunities

Measure Customer Needs

Explore Design Concepts

Develop Detailed Design

Implement Detailed Design

7/31/2019 Sixsigma Rgr 08.12

25/27

Black Belt Training - DFSS

Session 1-Define

Session 2 -Measure

Session 3 -Explore

Session 4 -Develop

Process ModelTM ,QFD Capture TM, and other software are used for developing the new design.

Session 5 -Implement

Develop

Project Charter

Plan theDesign Project

Gather Customer

Needs

DefineProduct/Service

Requirements

Develop Product/

Service Conceptual

Design Predict Designs

Sigma Capability

Develop Product/

Service Detailed

Design Develop Production

Processes

Perform Pilot

Testing

DevelopImplementation

& Transition Plans

Project Closure

Typical Black Belt Training - DFSS

7/31/2019 Sixsigma Rgr 08.12

26/27

Sample Sigma Implementation Plan

What would an initial Sigma implementation plan look like?

Charter

Elements Description

Objectives

Increase capacity, throughput, and quality of customer service and collections

Improve efficiency, decrease cost of loan origination

Reduce rework; saving costs and improving cycle time

Improve customer satisfaction of dealer customers and loan holders

Scope

Examples: Manufacturing, Collections, Procurement, Distribution, Sales & Marketing

Engagement Duration: 9-12 months

Project Duration: 4-6 Months per project

ResourceCommitment

15 Project Teams (over 12 month period). Start with 5-10 projects, then expand 6-10 Black Belts (fulltime, 2 projects per BB); 6-10 Champions or Sponsors

2-4 Team members per project team (part-time)

TrainingCommitment

Black Belts: 15-20 days/ 2-3 waves = 30-600 days of training support

Champion Training: 3 days with Tollgate Reviews

CoachingCommitment

On-site coaching with Black Belts and Teams 1 day per week per Black Belt = 150 240 days of coaching and implementation support

Project Reviews with PwC Master Black Beltsand Executive Sponsors 1 day per

month per Black Belt = 4060 days of strategic review and planning support

Results Conservative Benchmark Savings per Black Belt: $175k-250k per project

Potential Total Savings: $2.0 - $3.0 million

Potential Net Savings: $1.0$ 2.0 million during the first year

Build internal capacity (trained Black Belts) to complete more improvement projects

7/31/2019 Sixsigma Rgr 08.12

27/27

PwCs Multi-disciplinary ConsultingCapabilities Support Sigma Implementation

Leaders Developing Leaders (Tichy)

Process Simulation

Process Management / Measurement

Voice of the Customer Relationship

Management

Benchmarking / Best Practices

Knowledge Management

Business Process Re-engineering

E-business strategy and implementation

Change Management (Organizational

Design, Alignment, Communications,

Reward / Consequence) Benefits Realization Development

Activity Based Costing/ Management

ERP Support (SAP, Oracle, PeopleSoft)

Systems Integration Support

PwCs offices throughout the country (and the world) maintain thousands of

experienced consultants in practice areas that can directly support the successful

implementation of SIGMA Breakaway Performance.

sixsigma rgr 08.12

Documents