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American Society for Quality – April Six Sigma Meeting April 27 th , 2010. E2E Sourcing Model: Project Champion - Heather Busch Master Black Belts - L. Erik Anderson, Kyle Kovac Black Belt - Jason Mudd. Agenda. Process Innovation Team Process Innovation Team Engagement Model

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american society for quality april six sigma meeting april 27 th 2010

American Society for Quality – April Six Sigma Meeting April 27th, 2010

E2E Sourcing Model:

Project Champion - Heather Busch

Master Black Belts - L. Erik Anderson, Kyle Kovac

Black Belt - Jason Mudd

slide2

Agenda

  • Process Innovation Team
  • Process Innovation Team Engagement Model
  • IBM Transformation Principles
  • Case Study: E2e Sourcing Model Black Belt Project Lessons Learned
slide3

Process Innovation Team

  • Business Values
  • (Gained From Process Innovation Projects)
  • Improve Critical to Customer Processes
  • Drive Cost / Workload savings
  • Drive the use of ongoing Process Metrics
    • - to monitor & develop continuous improvement
  • Drive Lean Six Sigma into the DNA of the operations
    • - Employ a structured methodology to enable a culture change toward fact-based and process driven decision making
  • Provide an Independent E2E view

Vision:

LSS will be integrated into the fabric of ISC/STG, resulting in a standardized approach for problem-solving, fact-based decision making, and a process driven culture.

Mission:

To deploy LSS across ISC/STG, providing incremental business value through the application of a “structured” process evaluation to specific business problems

2009

2005

2006

2007

2008

  • Established in 3Q as a pilot team
  • Sponsored by Bob Moffat
  • 1st year of “Production”
  • Team expanded to 14 members globally
  • Expanded work in ISC
  • Savings = $13.5M
  • Team expanded to 54 members WW
  • Production expanded
  • Savings= $84.4M
  • PI Pilot expansion
  • Education established
  • Management System established
  • Proof-of-concept
  • Expanded into STG support
  • Steady production
  • Savings =$333.6M

CONCEPT

DEVELOPMENT

IMPLEMENTATION

GROWTH

3

slide4

Agenda

  • Process Innovation Team
  • Process Innovation Team Engagement Model
  • IBM Transformation Principles
  • Case Study: E2e Sourcing Model Black Belt Project Highlights
slide5

PI Team Engagement Model

Project Request

PI Website

CF/ITD

Proc/BTO/Mfg

GOPS

Other Enterprise

Focal Point

Focal Point

Focal Point

Focal Point

Focal Point

  • Productivity Challenges
  • Specific Business Problems
  • Establish Metric Systems
  • Improve Critical Customer Processes
  • Reduce cost and improve efficiency
  • LSS Education & Deployment

Project Evaluation

  • Work with Executive/Sponsor to understand
    • Strategic goals
    • Business problem & Scope
    • Objectives of the project/initiative and linkage to strategy
  • Evaluate LSS compatibility - process related, data driven, unknown solutions
    • Need for LSS education/deployment (GB/YB) vs. pin pointed problem resolution (BB)

MBB

RECOGNIZE PHASE

Project Prioritization

Importance to Customer

Strategic Value

Impact on other Processes

Savings

Investment

Feasibility/Complexity of Project

Strategy

Financials

Project Pipeline

slide6

PI Team Engagement Model - Education

Team Structure

Yellow Belt

Green Belt

Black Belt

Training Knowledge Experience

GB

GB

BB

GB

GB

YB

YB

SME

slide7

PI Team Engagement Model - Projects

Green Belt Projects

Black Belt Projects

Specific Scope

Broader Scope

Faster Results

Slower Results

Smaller Benefits

Larger Benefits

IBM Lean Six Sigma 2-Pronged Approach

  • Specific Scope
    • Single Process or Geo
    • Drives Lean Six Sigma into the DNA of the Org.
  • 4 – 6 Months Duration
  • Benefits > $50K
  • Broad Scope
    • Cross-Geo
    • Cross-Org
    • Impact large number of people
  • 9-12 Month Duration
  • Benefits > $200K
slide8

Agenda

  • Process Innovation Team
  • Process Innovation Team Engagement Model
  • IBM Transformation Principles
  • Case Study: E2e Sourcing Model Black Belt Project Lessons Learned
slide9

IBM Initiative Deployment Success Factors

3. Strategic Alignment

& Project Selection

Achieving scalable results requires a well thought out and proven framework

The transformation architecture is key to providing an enduring flow of benefits

Integrating Data Systems & Strategy

1. Committed Leadership

Strategic

focus

2. Customer Focus

& Requirements

4. Full Time Resourcing

& Organization

5. Business Process

Framework

Analyze /

Explore

Improve /

Develop

Control /

Implement

Project

Methods

Define

Measure

Supporting Infrastructure

9. Capabilities,

Learning

& Knowledge

6. Integrated

Approach to Change

10. Deployment

Management

8. Performance

Management

7. Benefits &

Tracking Rigour

Factors based upon IBM’s Lean Sigma research and experience 1996 – 2005

slide10

LSS Enterprise Management Program

StrategyIntegration

Rewards &

Recognition

Training &

Staffing

Committed

Leadership

Measurements

& Metrics

Governance &

Communication

Process

Management

“Must Haves” For A Successful LSS Enterprise Management Program

  • To be successful all factors:
    • Must be aligned and fully-integrated
    • Must be tailored to uniqueness of each organization
  • “Committed Leadership” is THE central factor in implementation for any successful program

R

E

S

U

L

T

S

slide12

Agenda

  • Process Innovation Team
  • Process Innovation Team Engagement Model
  • IBM Transformation Principles
  • Case Study: E2e Sourcing Model Black Belt Project Lessons Learned
slide13

E2e Sourcing Model Project Lessons Learned

  • Manage Time Zones
  • Manage SMEs
  • Manage Implementation Owners
  • Establish Interview processes & protocol
  • Data Collection & Analysis can be time consuming…It is important to identify key measures up front & begin measurement as soon as possible
  • Measure & Improve Phases were the most challenging phase due to time, details, and coordination required
  • Decided on process mapping software up front
  • Understand the limitations of the mapping software
  • Establish agreed upon definitions of value, non-value, and waste prior to analyze
  • Scope management e.g. break up E2E process mapping projects into smaller components
  • Involve the IT team often and early i.e. if you know that there will be IT impacts on the project
  • Review and re-review the model often as a team b/c the model will reveal additional improvement opportunities over time
slide14

Questions?

Jason Mudd

[email protected]

(919) 486-2884

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