Customer competitive intelligence for product process systems enterprise excellence
This presentation is the property of its rightful owner.
Sponsored Links
1 / 65

C USTOMER & C OMPETITIVE I NTELLIGENCE FOR P RODUCT, P ROCESS, S YSTEMS & E NTERPRISE E XCELLENCE PowerPoint PPT Presentation


  • 100 Views
  • Uploaded on
  • Presentation posted in: General

D. ESIGN FOR. S IX S IGMA. C USTOMER & C OMPETITIVE I NTELLIGENCE FOR P RODUCT, P ROCESS, S YSTEMS & E NTERPRISE E XCELLENCE. D EPARTMENT OF S TATISTICS. [email protected] OFFICE: +1-208-885-4410.

Download Presentation

C USTOMER & C OMPETITIVE I NTELLIGENCE FOR P RODUCT, P ROCESS, S YSTEMS & E NTERPRISE E XCELLENCE

An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -

Presentation Transcript


Customer competitive intelligence for product process systems enterprise excellence

D

ESIGN FOR

SIX SIGMA

CUSTOMER&COMPETITIVEINTELLIGENCE FOR

PRODUCT, PROCESS, SYSTEMS & ENTERPRISE EXCELLENCE

DEPARTMENT OFSTATISTICS

[email protected] OFFICE: +1-208-885-4410

DR. RICK EDGEMAN, PROFESSOR& CHAIR– SIX SIGMA BLACK BELT


Customer competitive intelligence for product process systems enterprise excellence

S

S

IX

IGMA

a highly structured strategy for acquiring, assessing, and applying customer, competitor, and enterprise intelligence for the purposes of product, system or enterprise innovation and design.

DEPARTMENT OFSTATISTICS


Customer competitive intelligence for product process systems enterprise excellence

Design for Six Sigma

Applications of Six Sigma that focus on the design or redesign of

products and services and their enabling processes so that

from the beginning customer needs and expectations are fulfilled

are known asDesign for Six Sigma or DFSS.

The aim of DFSS is to create designs that are resource efficient,

capable of exceptionally high yields, and are robust to process

variations. This aim produces a recasting of DMAIC that can be

characterized as: Define-Measure-Analyze-Design-Verify (DMADV) or as

Invention-Innovation-Design-Optimize-Verify (I2DOV) or as

CDOV


Customer competitive intelligence for product process systems enterprise excellence

Six Sigma from the GE Perspective:

Six Sigma is a highly disciplined process that helps a company

focus on developing and delivering near-perfect products and

services. Why “sigma”? The word is a statistical term that

measures how far a given process deviates from perfection.

The central idea behind Six Sigma is that if you can measure

how many “defects” you have in a process, you can systematically

determine how to eliminate those and approach “zero defects”.

Six Sigma has changed the DNA at GE – it is the way that

GE works – in everything that GE does

and in every product GE designs.

“What is Six Sigma? The Roadmap to Customer Improvement”

www.ge.com/sixsigma/makingcustomers.html


Customer competitive intelligence for product process systems enterprise excellence

Design for Six Sigma at GE:

DFSS is changing GE. With it GE can build on all of its capabilities and take

all of its product and process designs to a new level of world-class

performance and quality.

The essence of DFSS is predicting design quality up front and driving quality

measurement and predictability improvement during the early design phases-

a much more effective and less expensive way to get to Six Sigma quality

than trying to fix problems further down the road.

What We Do. GE Corporate Research and Development

Formerly posted at: www.crd.ge.com/whatwedo/sixsigma.html


Customer competitive intelligence for product process systems enterprise excellence

  • Another View of Design for Six Sigma:

  • DFSS is the change in the product design organization from a deterministic to a

  • probabilistic culture. Our people were trained to incorporate statistical

  • analysis of failure modes, both in products and processes. Then they began

  • to incorporate design changes that modify and eliminate design features

  • with a probability of failure within a predefined range of operating

  • environments and conditions. The design organization changed from a

  • “factor-of-safety” mentality to one in which there was a quantitative assessment

  • of design risk. Four elements of design are most critical to the effort:

  • Design for producibility (design for manufacturing and assembly);

  • Design for Reliability;

  • Design for Performance (technical requirements); and

  • Design for Maintainability.

  • “Design for Six Sigma: 15 Lessons Learned”, Quality Progress, Vol. 35, No. 1, pp. 33-42, January 2002.


Customer competitive intelligence for product process systems enterprise excellence

Voice of the Customer

Analyze

Improve

Measure

Define

Control

Institutionalization

TheDMAICModel


Customer competitive intelligence for product process systems enterprise excellence

Definethe problem

and customer

requirements.

Measure defect rates and

Document the process in its

current incarnation.

Analyze process data and

Determine the capability

of the process.

Improve the process and

remove defect causes.

Control process performance

and ensure that defects

do not recur.

Define

Control

Measure

Improve

Analyze

SixSigmaInnovation & theDMAICAlgorithm


Customer competitive intelligence for product process systems enterprise excellence

Team Charter & Project Scoping:

Of similar importance & structure as in DMAIC


Customer competitive intelligence for product process systems enterprise excellence

Team Charter

Table of Contents

1. EXECUTIVE SUMMARY …………………………………………………3

2. PROJECT OBJECTIVES…………………………………………………3

3. PROJECT SCOPE ……………………………………………………..…3

4. BUSINESS CASE …………………………………………………………3

5. PROJECT ORGANIZATION ……………………………………………3

6. SCHEDULES……………………………………………………………….4

7. COMMUNICATION PLAN ……………………………………………...4

8. PROJECT CONTROL PROCEDURES ……………………...…………4

9. PROJECT ASSUMPTIONS ……………………………..………………4

10. CONFLICT RESOLUTION………………………………………………. 5


Customer competitive intelligence for product process systems enterprise excellence

Project Scope

  • On what process will the team focus on?

  • What are the boundaries of the process we are to improve? Start point? Stop point?

  • What resources are available to the team?

  • What (if anything) is out-of-bounds for the team?

  • Under what (if any) constraints must the team work?

  • What is the time commitment expected of team members?

  • What are the advantages to each team member for the time commitment?


Customer competitive intelligence for product process systems enterprise excellence

SMART

  • Problem&GoalStatementsShouldbe:

  • Specific

  • Measurable

  • Attainable

  • Relevant

  • Time-Bound


Customer competitive intelligence for product process systems enterprise excellence

Eight Steps for Establishing Project Boundaries

  • Identify the customer

    • Who receives the process output?

      • (May be an internal or external customer)

  • Define customer’s expectations and needs

    • Ask the customer

    • Think like the customer

    • Rank or prioritize the expectations

  • Clearly specify your deliverables tied to those expectations

    • What are the process outputs? (Tangible and intangible deliverables)

    • Rank or prioritize the deliverables

    • Rank your confidence in meeting each deliverable

  • Identify CTQ’s for those deliverables

    • What are the specific, measurable attributes that are most critical in the deliverables?

    • Select those attributes that have the greatest impact on customer satisfaction.


Customer competitive intelligence for product process systems enterprise excellence

Eight Steps for Establishing Project Boundaries

  • Map your process

    • Map the process at it works today (as is).

    • Map the informal processes, even if there is no formal, uniform process in use.

  • Determine where in the process the CTQ’s can be most seriously affected

    • Use a detailed flowchart

    • Estimate which steps contain the most variability

  • Evaluate which CTQ’s have the greatest opportunity for improvement

    • Consider available resources

    • Compare variation in the processes with the various CTQ’s

    • Emphasize process steps which are under the control of the team conducting the project

  • Define the project to improve the CTQ’s you have selected

    • Define the defect to be attacked


Customer competitive intelligence for product process systems enterprise excellence

The SIPOC Model

Process

Steps

Inputs

Outputs

Suppliers

Customers

Inform Loop


Customer competitive intelligence for product process systems enterprise excellence

Six Sigma COPIS Model

Process

Steps

Outputs

Inputs

Suppliers

Customers

How does Six Sigma Work?

The Voice of the Customer(VOC) is aggressively sought and rigorously evaluated and used to determine needed outputs and hence the optimal process configuration needed to yield those outputs and their necessary inputs for which the best suppliers are identified and allied with.

From Concept to Market: the Voice of the Customer


Customer competitive intelligence for product process systems enterprise excellence

D

F

ESIGN

OR

S

S

IX

IGMA

DFSS LESSONSLEARNED & LEADERSHIP

DEPARTMENT OFSTATISTICS

[email protected] OFFICE: +1-208-885-4410

DR. RICK EDGEMAN, PROFESSOR& CHAIR– SIX SIGMA BLACK BELT


Customer competitive intelligence for product process systems enterprise excellence

Design for Six Sigma at GE:

DFSS is changing GE. With it GE can build on all of its capabilities and take

all of its product and process designs to a new level of world-class

performance and quality.

The essence of DFSS is predicting design quality up front and driving quality

measurement and predictability improvement during the early design phases-

a much more effective and less expensive way to get to Six Sigma quality

than trying to fix problems further down the road.

What We Do. GE Corporate Research and Development

Formerly posted at: www.crd.ge.com/whatwedo/sixsigma.html


Customer competitive intelligence for product process systems enterprise excellence

Design for Six Sigma

Define-Measure-Analyze-Design-Verify (DMADV)

Definecustomer requirements and goals for the process,

product or service.

Measureand match performance to customer requirements.

Analyzeand assess the design for the process, product or service.

Designand implement the array of new processes required for

the new process,product or service.

Verifyresults and maintain performance.


Customer competitive intelligence for product process systems enterprise excellence

  • Improvement–Focuses on high priority problems in business processes. This uses the DMAIC methodology: Define, Measure, Analyze, Improve, and Control.

  • Design–Design For Six Sigma (DFSS) addresses new or fundamentally poor processes. The methodology is called the DMADOV model: Define, Measure, Analyze, Design, Optimize, and Verify.

  • Business Process Management –aids in definition and management of operations and activities in terms of core and enabling processes. The resulting process management systems provide a foundation of process definition and baseline data for all process design and improvement activities.


Customer competitive intelligence for product process systems enterprise excellence

DFSS as a Growth Strategy:

Lesson 1

Achieving world-class performance through

any set of tools takes careful preparation and

a commitment to the foundational change

efforts required for world-class capability.


Customer competitive intelligence for product process systems enterprise excellence

DFSS as a Growth Strategy:

Lesson 2

DFSS grows into program profits in direct

proportion to the size of the initial investment.

The more the initial investment to eliminate

(adverse) design issues, the greater the

life cycle profits that will be realized.


Customer competitive intelligence for product process systems enterprise excellence

DFSS as a Growth Strategy:

Lesson 3

A structured compensations system that substantially rewards

leadership cooperation and co-ownership for successfully

implementing cross-functional DFSS projects significantly

improves the bottom line.

Note: the corporate example that produced the most impressive results was a firm

where DFSS involvement was directly linked to management rewards. This firm

REQUIRED senior management to spend 30% of its time on DFSS activity.


Customer competitive intelligence for product process systems enterprise excellence

DFSS as a Growth Strategy:

Lesson 4

Leaders, especially middle managers,

need to be selected, prepared and trained

much earlier in the process

to achieve desired levels of commitment.


Customer competitive intelligence for product process systems enterprise excellence

DFSS as a Growth Strategy:

Lesson 5

DFSS should be regarded as a part of doing business and represent

of part of reinvesting a portion of the profits into the business to

produce even greater profits in the long run.

If DFSS is to be the driving force, the heart and soul of a business,

then adequate dollars, time and resources must be incorporated

into the annual budget to ensure the company’s success.

Success is rarely the result of unplanned, fortuitous accident.


Customer competitive intelligence for product process systems enterprise excellence

DFSS as a Means of Serving Customers:

Lesson 1

Continual customer feedback and ideas are essential to

achieve a partnership with the customer.

In an age where competition for customers is relentless,

companies that make the customer a partner in the

DFSS activity and maintain that partnering throughout the

product life cycle have a customer for the product life cycle.


Customer competitive intelligence for product process systems enterprise excellence

DFSS as a Means of Serving Customers:

Lesson 2

A DFSS must be inclusive, and a conscious effort must

be made to embed it in the fabric of the entire organization.

All employees must understand how it works and why it

benefits the customer, the business and themselves.


Customer competitive intelligence for product process systems enterprise excellence

Product-Process Fusion Through DFSS:

Lesson 1

Drive product and process compatibility across the entire

value chain and product life cycle.


Customer competitive intelligence for product process systems enterprise excellence

Product-Process Fusion Through DFSS:

Lesson 2

The value chain of your customer includes everything

incorporated into the final product.

Substantial elements often come from suppliers

and subcontractors.

If they are not integrated into the DFSS activity,

then the final product is sub-optimized.


Customer competitive intelligence for product process systems enterprise excellence

Product-Process Fusion Through DFSS:

Lesson 3

Six Sigma activity to reduce variability in the factory is a

losing process if the new designs cause new variability.

DFSS is intended to reduce the introduction of new

variability and achieve process stability and

uniform quality faster.


Customer competitive intelligence for product process systems enterprise excellence

Product-Process Fusion Through DFSS:

Lesson 4

Metrics must tell the story of the organization’s

performance ANDmust be discussed regularly

among the staff in each area.


Customer competitive intelligence for product process systems enterprise excellence

Product-Process Fusion Through DFSS:

Lesson 5

DFSS can have applicability in diverse

industries – some that are nontraditional such

as pharmaceuticals, if the design and production

is integrated and balanced.


Customer competitive intelligence for product process systems enterprise excellence

The DFSS Engineering Organization:

Lesson 1

Design organizations are struggling with the loss

of domain knowledge and lack of experience

and skills among the DFSS teams themselves.

This slows the movement to probabilistic design

approaches as there seems to be little time to meet

schedules and conduct thorough analysis

using statistical tools.


Customer competitive intelligence for product process systems enterprise excellence

The DFSS Engineering Organization:

Lesson 2

Enlarging the responsibility of design engineering to

follow the product from start to finish creates

ownership that changes the approach to product design.

It accelerates the incorporation of lessons learned

outside the design studio.


Customer competitive intelligence for product process systems enterprise excellence

The DFSS Engineering Organization:

Lesson 3

The trend toward engineering efficiency in which

organizations assign engineers from pools to cover

assignments has made engineers a commodity at

just the point in time when the loss of domain

knowledge makes the need for longevity in an

organization essential.


Customer competitive intelligence for product process systems enterprise excellence

The People of Six Sigma


Customer competitive intelligence for product process systems enterprise excellence

Six Sigma Champions

  • Create the vision of Six Sigma for the company.

  • Define the path to implement Six Sigma across the organization.

  • Develop a comprehensive training plan for implementing the Breakthrough Strategy.

  • Carefully select high-impact projects.

  • Support development of “statistical thinking”.

  • Ask Black Belts many questions to ensure that they are properly focused.

  • Realize the gains by supporting Six Sigma projects through allocation of resources and removal of roadblocks.

  • Hold the ground by implementing Black Belt recommendations.

  • Make sure that project opportunities are acted upon by the organization’s leadership and the finance department.

  • Recognize people for their efforts.


Customer competitive intelligence for product process systems enterprise excellence

Master Black Belts

  • Understand the big business picture.

  • Partner with the Champions.

  • Get certified as Master Black Belts.

  • Develop and deliver training to various levels of the organization.

  • Assist in the identification of projects.

  • Coach and support Black Belts in project work.

  • Participate in project reviews to offer technical expertise.

  • Help train and certify Black Belts.

  • Take on leadership of major programs.

  • Facilitate sharing of best practices across the corporation.


Customer competitive intelligence for product process systems enterprise excellence

Black Belts

  • Act as Breakthrough Strategy experts and be Breakthrough Strategy enthusiasts.

  • Stimulate Champion thinking.

  • Identify the barriers.

  • Lead and direct teams in project execution.

  • Report progress to appropriate leadership levels.

  • Solicit help from Champions when needed.

  • Influence without direct authority.

  • Determine the most effective tools to apply.

  • Prepare a detailed project assessment during the Measurement phase.

  • Get input from knowledgeable operators, first-line supervisors, and team leaders.

  • Teach and coach Breakthrough Strategy methods and tools.

  • Manage project risk.

  • Ensure that the results are sustained.


Customer competitive intelligence for product process systems enterprise excellence

Black Belt Activities

MENTORS: Cultivates a network of Six Sigma individuals at the local organization or site.

TEACH: Provides formal training of local personnel in new strategies and tools.

COACH: Provides one-on-one support to local personnel.

TRANSFER: Passes on new strategies and tools in the form of training, workshops, case studies, and local symposia.

DISCOVER: Finds application opportunities for Six Sigma strategies and tools, both internal and external (e.g. suppliers and customers).

IDENTIFY: Highlights / surfaces business opportunities through partnerships with other organizations.

INFLUENCE: Sells the organization on the use of Six Sigma strategies and tools.


Customer competitive intelligence for product process systems enterprise excellence

Green Belts

  • Function as Green Belts on a part-time basis, while performing their regular duties.

  • Participate on Black Belt project teams in the context of their existing responsibilities.

  • Learn the Six Sigma methodology as it applies to a particular project.

  • Continue to learn and practice the Six Sigma methods and tools after project completion.


Customer competitive intelligence for product process systems enterprise excellence

Corporate Six Sigma Leadership


Customer competitive intelligence for product process systems enterprise excellence

Six Sigma and General Electric

  • General Electric CEO, Jack Welch, describes Six Sigma as “the most important initiative GE has ever undertaken.” GE’s operating income, a critical measure of business efficiency and profitability, hovered around 10% for decades. In 1995 Welch mandated that each GE operation from credit card services to aircraft engine plants to NBC-TV work toward achieving Six Sigma. GE was averaging about 3.5 when it introduced the program.

  • With Six Sigma embedding itself deeper into GE’s processes, they achieved the previously “impossible” operating margin of 16.7% in 1998 – up from 13.6% in 1995.

  • In dollar amounts, Six Sigma delivered more than $300 million to GE’s 1997 operating income and more than $600 million in 1998.


Customer competitive intelligence for product process systems enterprise excellence

Six Sigma and Raytheon

  • Former AlliedSignal executive Daniel P. Burnham, who became Raytheon’s CEO in 1998, has made Six Sigma a cornerstone of the company’s strategic plan.

  • By pursuing Six Sigma quality levels throughout the company, Raytheon to improved its cost of doing business by more than $1 billion annually by 2001.


Customer competitive intelligence for product process systems enterprise excellence

Six Sigmaand the Service Sector

Robert Galvin: Former Motorola CEO

  • Failing to implement Six Sigma in commercial areas with the same force that the company implemented it in its industrial sectors cost Motorola $5 billion over a four-year period.


Customer competitive intelligence for product process systems enterprise excellence

How Big is the Service Sector?

  • 79% of the U.S. Workforce is employed by commercial businesses.

  • 90% of those employed in manufacturing are actually doing service work – such as finance, marketing, sales, distribution and purchasing.

  • So: 79% + (.9)*(21%) = 98% of the U.S. Workforce is involved in “service work”.

  • MISTAKEN BELIEFS:

  • Some companies still believe that improving commercial processes is less important than improving industrial processes or that seemingly intangible commercial processes can’t be controlled.

  • BOTH ARE WRONG:

  • Customers are more likely to take their business elsewhere because of poor service than poor products.

  • Companies like GE have shown that improving internal and external commercial processes adds to the bottom line and to customer satisfaction significantly


Customer competitive intelligence for product process systems enterprise excellence

AlliedSignal

  • 70,000 Employees

  • Chemicals, Fibers, Plastics, Aerospace Products, Automotive Products.

  • Larry Bossidy came from GE to become CEO in 1991

  • Market Value = $4 billion in 1991

  • Market Value = $29 billion by the end of 1998

  • Market Value = $38 billion by 2000.


Customer competitive intelligence for product process systems enterprise excellence

AlliedSignal

  • TODAY’S GOALS:

  • 6% productivity increase

  • Reduced Inventory

  • Full-Capacity Utilization

  • Little or no Overtime

  • Reliable Products

  • 5s Manufacturing

  • 5s Designs

  • Predictable Cash Flow

  • 5s Suppliers

  • BY END OF 1998:

  • Total Impact of Six Sigma Within AlliedSignal Reached $2 Billion.

  • Six Sigma Profits in Service Areas including:

    • Order Processing

    • Shipping

    • Procurement

    • Product Innovation


Customer competitive intelligence for product process systems enterprise excellence

We can’t tell other organizations how to do Six Sigma, but we can tell them how not to do it. Allied has made mistakes along the way and, in the process, learned some tremendous lessons.

  • Lesson 1: The Organization’s Leadership Must Own Six Sigma

  • Upper management supported Six Sigma, managers below those at the top saw it as a “flavor of the month”.

  • Black Belts seen as a nuisance.

  • Black Belts were using “Six Sigma jargon” while managers were using business vocabulary. This led to confusion.

  • SOLUTION: Introduce ALL levels of management to Six Sigma.

  • Management had weeklong training sessions to understand the methods of the Breakthrough Strategy and how Black Belt training and experience could be leveraged. ALSO … how various initiatives “fit together”.

  • BEGANTOFOCUSONPROCESSES – NOTPEOPLE as the source of problems. Also, understanding of the Breakthrough Strategy provided a “plan of action”, rather than just a “command” to make something happen.


Customer competitive intelligence for product process systems enterprise excellence

Six Sigma Changed the Company Cultureand

  • One of the flaws at Allied is that we hadtoo much vertical mobility.Managers inch up the same smokestack,learning more and more about less and less.But companies that train promising individuals as Black Belts circumvent the vertical flow and move people around horizontally, having them serve time in as many major businesses or divisions as possible to give them a kaleidoscopic view of the organization and the benefit of being mentored by a variety of new blood.

Linked AlliedSignal’s Goals, Vision & Activities.


Customer competitive intelligence for product process systems enterprise excellence

  • Having recognized the need to train managers in the Six Sigma Breakthrough Strategy, Allied dedicated the next year to training 1,000 leaders in the organization in how Six Sigma worked, and in its potential financial impact.

  • Training sessions lasted 3.5 days and emphasized Six Sigma’s impact on:

    • Profitability through improved processes;

    • The Crucial role of Black Belts, RATHER THAN teaching statistical processes involved in achieving Six Sigma.

  • Initially trained top managers at each of Allied’s 11 Strategic Business Units and gradually worked their way down the organization to middle management, line supervisors, and so on.

  • COMPLAINTS FROM BLACK BELTS WITHIN SIX MONTHS: Management turnover and too much promotion of Black Belts into management before benefit from the training and skills could be realized. SO … training had to be ongoing.

Allied is not in the business of measuring activity. We are in the business of measuring results. IF something doesn’t have a positive impact on customer satisfaction, our shareholders, and employees, and in the process makes a lots of money, THEN we just flat out aren’t going to do it.”

RICHARD A. JOHNSON, Director of Six Sigma at AlliedSignal

Lesson Two: A Beginning Without an End


Customer competitive intelligence for product process systems enterprise excellence

  • AlliedSignal’s goal: send Black Belts with a minimum of 18-24 months experience mastering the Breakthrough Strategy back into the organization to create Six Sigma behavior & thinking.

  • 40% of Black Belts were promoted to departmental or plant managers. Others left AlliedSignal for higher-paying jobs at suppliers. Others completed only one or two projects before they were pulled back into their previous assignments with leadership not properly reviewing projects and properly acting upon financial opportunities created by Black Belts so that managers felt that Six Sigma wasn’t particularly important.

  • 50% of Black Belts were absorbed back into the organization within six months.

  • NOW … BLACK BELTS must work at least 18-24 months on a series of Six Sigma projects prior to a change of roles. TIME & EXPERIENCE ARE VIEWED AS CRITICAL TO SIX SIGMA SUCCESS AND THE MATURITY OF THE BLACK BELT.

Lesson Three: Black Belt Retention


Customer competitive intelligence for product process systems enterprise excellence

Lesson Three - Continued

  • AlliedSignal’s Champions & Master Black Belts

  • 3.5 Day Executive Overview followed by the traditional Four-Month Black Belt training process.

  • MASTER BLACK BELTS are selected from the best of the Black Belts.

  • Each of these trains and mentors 10 Black Belts

  • Each Black Belt trains and mentors 10 Green Belts.

  • NOW: All Salaried Employees are Expected to Undergo the 26 Hours of Training Required for Green Belt Certification by 2000.

  • CHAMPIONS 20Master Black Belts 70

  • Black Belts 2000+Green Belts 18,000

  • Total # of Employees 70,000


Customer competitive intelligence for product process systems enterprise excellence

Lesson Four: Supplier Capability is Critical to the Success of the Breakthrough Strategy

  • The Majority of AlliedSignal’s Suppliers were operating at about three sigma.

  • This prevented the company from realizing the full benefits of Six Sigma.

  • AlliedSignal recognized that they needed to view suppliers as their partners.

  • AlliedSignal began TRAINING its suppliers and offering other technical assistance.

  • To achieve Six Sigma it is important to minimize the number of suppliers, limiting these to those that have been trained in the Breakthrough Strategy.

  • Not only does AlliedSignal provide training, BUT then follows up by dedicating ITS OWN BLACK BELTS to mentor and work with critical suppliers. AlliedSignal estimates that for every 300 Black Belts it trains, 100 are either customers or suppliers.

W. Edwards Deming:

End the Practice of Awarding Business on Price Tag Alone.


Customer competitive intelligence for product process systems enterprise excellence

Lesson Five:There is No Such Thing as Operator Error

  • It is PROCESSES – not PEOPLE that Fail.

  • This maps to one of Deming’s14 Points for Management: “DRIVEOUTFEAR”.

  • Focus on Processes implies that people are not accused, but rather, that they are able to investigate processes and be “part of the solution.”


Customer competitive intelligence for product process systems enterprise excellence

Lesson Six: Focus on Bottom-Line Improvement

  • The number one source of failure in deploying Six Sigma is the result of Lack of Commitment FROM THE Organization’s Leadership.

  • The Finance Department must be involved so that the impact of Six Sigma Projects on the Bottom-Line is apparent.

  • Black Belts, the Finance Department, and Executive Leadership must work in tandem.

  • While Black Belts create opportunities for cost reduction and increased profitability, the company’s Leadership must make sure that Black Belts focus on the right projects and take action on the savings opportunities they generate. Finance provides closure to the effort by ensuring that the savings are returned to the organization’s bottom line.


Customer competitive intelligence for product process systems enterprise excellence

Lesson Seven: Initiative Overload

  • LARRY BOSSIDY, CEO: One of the things I have trouble with is … non-financial objectives. Often they’re just as obscure and vacuous as they sound.

  • FIVE ACTIONS TO PERPETUATE SIX SIGMA:

  • TRAINING: Allied’s employee base changes enough every nine to ten months that maintenance of Six Sigma culture requires that new employees be trained in the Breakthrough Strategy.

  • Senior management involvement.

  • Continued on-site leadership training, and alignment of goals among divisions to reinforce Breakthrough Strategy thinking and goals.

  • Requiring Black Belts to dedicate a minimum of two years to working on Six Sigma projects.

  • Supplier involvement and improvement in Six Sigma initiatives.

Products and services should be improved ONLY to the degree that customer value is increased. Six Sigma is a program designed to generate money for the company, either through savings resulting from reduced costs, or from boosting sales by increasing customer satisfaction.


Customer competitive intelligence for product process systems enterprise excellence

AlliedSignal:Hindrances to Six Sigma Success

  • Working on too many improvements at the same time.

  • Not having someone accountable for the problem.

  • Not being a process-based company.

  • A lack of trained and experienced people.

  • Middle managers who fear uncertainty about future roles.

  • Lack of metrics focused on customer value-added processes.

  • Lack of integrated information and financial systems.

  • Fragmented, staff-driven approaches.


Customer competitive intelligence for product process systems enterprise excellence

D

ESIGN FOR

SIX SIGMA

Endof Session

DEPARTMENT OFSTATISTICS

[email protected] OFFICE: +1-208-885-4410

DR. RICK EDGEMAN, PROFESSOR& CHAIR– SIX SIGMA BLACK BELT


  • Login