improving your business results six sigma qualtec six sigma qualtec six sigma qualtec – all rights...

Improving Your Business ResultsImproving Your Business ResultsSix SigmaQualtecSix SigmaQualtec

Six Sigma Qualtec – All Rights ReservedSix Sigma Qualtec – All Rights Reserved 1

CONTINUOUS IMPROVEMENT PROGRAM BASICS AND ALTERNATIVES

There is no single “right” way …



Deployment Alternatives

Drive Improvement(Push Model)

• Deployment Ofc (“DO) sets foundation up-front and the deployment is highly prescriptive

• DO assumes ownership over execution of business unit projects

• DO has central management of resources; project staff are loaned out to business units

• DO manages external staff procurement where and when required

• DO implements std policies and procedures

• DO measures knowledge transfer & deployment

Respond to Efforts(Bottom Up Model)

• Process Owners & Members are the drivers of change & deployment is highly responsive to needs

• DO provides a centralized supporting function to assist project teams with practices & processes

• DO provides centralized training, resourcing and procurement support to BU project teams

• DO supports benefits reporting and knowledge management

• DO coordinates enterprise functions such as communications

Support Improvement(Pull Model)

• Leadership is the Primary Instrument of Change; DO is highly advisory

• Ownership of standards, processes and reporting

• Delivery accountability remains with business unit personnel


• Management systems measure process metrics



Basic Elements of All Deployments

All CI Programs Function at Three Levels– Strategic. The organization converts its strategy into

operational goals. This is normally done using Scorecards– Governance. The organization governs its improvement

efforts (see “Type of Deployment”). A primary function is project selection.

– Implementation. At this level, the organization drives projects & knowledge transfer. This is the project management and problem solving level.

Executive Brief: Driving Value Through Operational Excellence

http://www.ssqi.com/breakthroughs/whitepaper-pdfs/OpEx-Governance.pdf



Strategic

Performance must be measured and

managed, regardless of

deployment model

Executive Brief: Using Scorecards as part of BPM

http://www.ssqi.com/breakthroughs/whitepaper-pdfs/BPM_Scorecards.pdf



Governance

Drive Effort(Push Model)

• DO Develops Business Cases

• Project Approval• Project Prioritization • Project Management• Contract Management• Resource Management• Cost & Schedule Control

Support Improvement(Pull Model)

• DO Facilitates the Creation of Business Cases

• Project Schedule• Issue Tracking & Reporting• CI Tools and Support• Integrated Project

Reporting• Project Repository• Project Consulting &

Mentoring• CI Training & Certification• CI standards, methodology

& processes

Range of CI Governance Elements Depending on

Type of Deployment

The role of your “Deployment Office” (DO) in Governance varies based on deployment type

Executive Brief: Driving Value Through Operational ExcellenceArticle: Operational Governance – What is it Anyway?

http://www.ssqi.com/breakthroughs/whitepaper-pdfs/OpEx-Governance.pdf

http://blog.ssqi.com/2012/02/23/operational-governance-operational-excellence-roadmap/



Implementation

Drive Effort(Push Model)

• Highly Prescriptive• DO assumes ownership

over execution of business unit projects

• DO sets policies and procedures

• DO drives benefit assurance and knowledge management


Support Effort(Pull Model)

• Highly Responsive• Accountability remains

with business unit• DO provides centralized

support to assist project teams

• DO provides centralized training to business units

• DO supports benefits reporting and knowledge management


Range of CI Implementation Elements

Depending on Type of Deployment

The role of your “Deployment Office” (DO) in implementation varies based on deployment type



Infrastructure Elements of All Deployments

Organizational Infrastructure– Any enterprise initiative, including a

Continuous Improvement Program, must consider how it interacts with enterprise level functions such as communications, finance and HR

– There are specific CI attributes to all these enterprise issues

7

Article: 10 Elements of CI Infrastructure

http://blog.ssqi.com/2010/09/30/10-elements-of-continuous-improvement-infrastructure/



TRADITIONAL PUSH MODELDriven top-down, PUSHED into the organization



Push Model Overview

• History – Attributed to GE as followers emulated perception of a top down model. Failed to consider GE’s readiness for organizational change and focus on “A” side

• Focuses on the knowledge to be transferred. Assumes that by providing the organization the capability, it will solve problems as encountered.

• Measurement of success is in terms of number of belts trained/certified, number of projects completed, “documented” project savings and ROI on training dollars

• Implementation prescribes population to receive grades of training, # of projects per belt and required savings per project. Targets building capability and then requiring output.

• Strengths – Easily understood project plans. Scales quickly. The Army is taught to march and then made to march.

• Challenge – Takes on its own life, irrespective of company needs. Can be rejected by business outright or thru weak compliance.



Change Structure is Highly Prescriptive

Is mentor, trainer, and coach of Black Belts and others in the organization. Brings the broad organization up to the required competency level.

Is a leader of teams executing projects. Introduces the methodology and tools to team members and the broader organization.

Delivers successful small, focused departmental projects using the success strategy.

Participates on the project teams. Supports the goals of the project, typically in the context of existing responsibilities. Is expected to control processes post improvement implementation as part of job.

MBB

LSS Black Belts

Champions

LSS Green Belts

LSS Yellow Belts & Other Team Members

Is responsible for coordinating a business roadmap to achieve improvement. Selects projects, executes control, and alleviates roadblocks for projects in his or her area of responsibility.

1 to 2 %

5 to 10 %

25 to 50 %



Basic Elements - Five Work Streams

Initiative Planning & Startup Assessment, HR, Finance,

& Communications)

Prepared to Direct Activities

Executive Training

Exec’s prepared to lead program

Employee Training (BTT,

Lean, YB, GB, BB, MBB and DFSS

Reaping Program Benefits

TTT for all materials and the Alignment

Workshop

Prepared to train future

waves

Acct Mgmt, Exec Coaching, Eval & Certification,

Project Tracking

Attain Self Sufficiency

Workstream #1

Workstream #2

Workstream #3

Workstream #4

Workstream #5

Phase I Phase 2 Phase 3 Phase 4 Phase 5

AssessmentHR & FinanceCommunications Awareness

Executive & Champion Trng

Champion Champion Champion Champion

BB, YB & KaizenProject Support & Mentoring(As Req.)

BB, GB & YB(internal BB’s do PS&M)

BB, GB & YB(internal BB’s do PS&M)

DFSSPS&M (AR)

GB TTT 5d BB TTT DFSS TTT

Deployment Planning Sessions

Project Tracking



Push Model – Advantages & Challenges• Highly prescriptive• Easily scalable and builds capability quickly• Measures success in terms of deployment factors (projects

completed, “realizable” savings per project, # belts trained & certified, etc.)

• May be perceived as another initiative and not as a fundamental change in the way things are done

• Big investment in training up-front, more training centric. Project returns (ROI) are slower. Risk of burn out before any results can be realized

• Can take a life of its own, becoming a cost center• Best at responsive, top down organizations with supportive

and actively engaged top leadership



SSQ’S PULL MODEL

Supported top-down, PULLED and consumed by organization in a right-fit manner



Pull Model – Business Need & Result Driven

• Identify Scorecard KPI’s focused on VOC & VOB• Align the business processes and establish measurement systems

to uncover critical performance gaps based on those KPI’s (BPMS & CTCR)

• Establish process control systems and capabilities that stabilize processes and sustain improvements (BPMS)

• Charter projects for performance gaps which align with key business needs and have clear ROI (Governance)

• Drive improvements to close the gaps thru application of proven tools such as BTT, LSS & DFSS (Implementation)

• Projects get executed creating new projects• Training is matched to the projects emerging from alignment

workshops. As processes stabilize and data integrity grow, belts’ capabilities are “laddered” to meet project complexity.

Article: Let Your Business Define Your Improvement Program

http://blog.ssqi.com/2010/09/16/let-your-business-define-your-improvement-program/




Deployment OrganizationExecutive

Team

CI Leadership

Business Unit Leadership

Steering Committee

Trainers & Support

Mat’l Dev & Maintenance

Project Execution

Shared Svcs (HR, Fin, IT)

Process Owners

Process Team Member

Business Unit Support

Projects

Governance

Training & Support



Basic Elements - Five Work Streams

Initiative Planning & Startup RADD, Policy Deployment,

HR, Finance, Communications)

Prepared to Direct Activities

Executive Training

Exec’s prepared to lead program

Employee Training (BTT,

Lean, YB, GB, BB, MBB and DFSS

Reaping Program Benefits

TTT for all materials and the Alignment

Workshop

Prepared to train future

waves

Acct Mgmt, Exec Coaching, Eval & Certification,

Project Tracking

Attain Self Sufficiency

Workstream #1

Workstream #2

Workstream #3

Workstream #4

Workstream #5

Phase ISix Mo.

Phase 2Six Mo.

Phase 3Six Mo.

Phase 4Six Mo.

Phase 5Six Mo.

Alignment Workshop

Executive & Director Training

Foundations of Continuous Improvement

Yellow Belt

Project Support & Mentoring

GB UpgradeAdd’l

Awareness

BB UpgradeAdd’l 10 d (3x)PS&M (AR)

DFSSAdd’l 5 to 8 d (3x)PS&M (AR)

Alignment WS TTT

PE & Kaizen TTT

Exec TrngDirector

Trng YB TTT

GB TTT 5d BB TTT 10dDFSS TTT

BPMS & Project Chartering

BPMS & PC Consulting

Communication Plans

Project TrackingHRFinance



Training is a Function of…• Projects

• Process Stability• Availability of Metrics

Use the identification of projects and natural cascading effect of projects, which produce

opportunities along the way to resolution, to drive training

Let Your Business Define Your Improvement Program




Additional Supporting Articles

Article: BPM and Lean – For Many Service Oriented Organizations, Enough to Get Big Improvement Results

Article: Lean Paves the Road for Six Sigma…especially in Service Organizations

Article:Lean or Six Sigma – That is the Question …

Article: Getting Results with Lean is not just about Lean Tools

http://blog.ssqi.com/2010/10/22/bpm-and-lean-%E2%80%93-for-many-service-oriented-organizations-enough-to-get-big-improvement-results/

http://blog.ssqi.com/2010/10/22/bpm-and-lean-%E2%80%93-for-many-service-oriented-organizations-enough-to-get-big-improvement-results/

http://blog.ssqi.com/2010/10/11/lean-paves-the-road-for-six-sigma%E2%80%A6especially-in-service-organizations/

http://blog.ssqi.com/2010/10/11/lean-paves-the-road-for-six-sigma%E2%80%A6especially-in-service-organizations/

http://blog.ssqi.com/2010/09/23/to-lean-or-six-sigma-%E2%80%93-that-is-the-question-%E2%80%A6/

http://blog.ssqi.com/2010/09/23/to-lean-or-six-sigma-%E2%80%93-that-is-the-question-%E2%80%A6/

http://blog.ssqi.com/2011/02/18/getting-results-with-lean-is-not-just-about-lean-tools/

http://blog.ssqi.com/2011/02/18/getting-results-with-lean-is-not-just-about-lean-tools/



WHICH MODEL IS RIGHT FOR YOUR ORGANIZATION?

Decision Variables



Organizational Readiness• To help design CI programs, SSQ utilizes a proprietary Organizational Deployment

Readiness model that looks at 5 different dimensions of readiness:– Many CI deployments, over time, falter, stall or fail– The business process improvement methodologies have been proven to work, so what’s

the reason for sub-performing CO programs? – Many times, deployment failures can be traced to a mismatch between the Organizations

Readiness for change and which methodologies are being deployed– In our experience there are 5 main “Dimensions of Readiness” that impact CI program design:

Article: Let Your Business Define Your Improvement Program

See Appendix B for Detail of Model





Which Model is Right?

PUllProcess Maturity Objectivity

Leadership

(Support)Tools Change

Push Model requires mature processes, ready & knowledgeable organization, and driven & supportive leadership. If not present, the Push Model’s effectiveness is weakened as you require the Pull Model’s greater focus on strategic linkage and program governance. Pull Model will work

at either end of the spectrum but always requires significant investment in governance which can be somewhat avoided when the circumstances

allow for the Push Model.

Pu

llP

ush

See Appendix B for Detail of Model



Six Sigma Qualtec (SSQ)www.ssqi.comblog.ssqi.com

Contact:John Lopez-Ona

Tel: 609-356-1450Email: [email protected]

http://www.ssqi.com/

improving your business results six sigma qualtec six sigma qualtec six sigma qualtec – all rights...

Documents

sigma qualtec

business results

business units

type of deployment

deployment type slide

knowledge management

deployment office

business unit personnel