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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


Agenda

  • Process Innovation Team

  • Process Innovation Team Engagement Model

  • IBM Transformation Principles

  • Case Study: E2e Sourcing Model Black Belt Project Lessons Learned


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


Agenda

  • Process Innovation Team

  • Process Innovation Team Engagement Model

  • IBM Transformation Principles

  • Case Study: E2e Sourcing Model Black Belt Project Highlights


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


PI Team Engagement Model - Education

Team Structure

Yellow Belt

Green Belt

Black Belt

Training Knowledge Experience

GB

GB

BB

GB

GB

YB

YB

SME


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


Agenda

  • Process Innovation Team

  • Process Innovation Team Engagement Model

  • IBM Transformation Principles

  • Case Study: E2e Sourcing Model Black Belt Project Lessons Learned


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


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



Agenda

  • Process Innovation Team

  • Process Innovation Team Engagement Model

  • IBM Transformation Principles

  • Case Study: E2e Sourcing Model Black Belt Project Lessons Learned


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


Questions?

Jason Mudd

[email protected]

(919) 486-2884


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