the abcs of six sigma - mydlc.commydlc.com/pmi-mn/pres/2005lig09_intro6sigma.pdf · the abcs of six...

1Confidential & ProprietaryCreated by Michelle Goodman, 2005 MORE THAN CONSULTANTS. WERE ESSENTIALISTS.

The ABCs of Six Sigma

Six Sigma Methodology in todayscorporate environment


A to Z for today

Why are companies interested? What is Six Sigma (basic)? History Methodology What is a deployment? Critical Success Factors WIIFM


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


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


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.


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


?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


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


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


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


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


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


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


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)


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


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


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


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


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


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


Michelle Goodman, MBA,PMP Program Manager

Six Sigma Deployment Champion13100 Wayzata Blvd, Suite 160

Minnetonka, MN 55305(651) 261-9422 (Cell)

[email protected]

The ABCs of Six Sigma Conclusion

the abcs of six sigma - mydlc.commydlc.com/pmi-mn/pres/2005lig09_intro6sigma.pdf · the abcs of six...

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