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“Six Sigma for Managers” Top-Down Six Sigma Implementation for American Society of Quality. Breakfast Meeting March 18, 2004. Initiative Improvement Breakthrough Systematic, Focused Approach Right projects Linked to business goals Right people Selected and Trained Project Management

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six sigma for managers top down six sigma implementation for american society of quality

“Six Sigma for Managers”Top-Down Six Sigma ImplementationforAmerican Society of Quality

Breakfast Meeting

March 18, 2004

two key aspects to six sigma
Initiative

Improvement

Breakthrough

Systematic, Focused Approach

Right projects

Linked to business goals

Right people

Selected and Trained

Project Management

Management Reviews

Sustain the gains

New projects

Results

Process and Financials

Methods and Tools

Process Thinking

Process Variation

Facts, Figures and Data

Define, Measure, Analyze, Improve and Control

8 Key Tools

Sequenced and Linked

Statistical Tools

Statistical Software

Critical FEW Variables

Two Key Aspects to Six Sigma

Hoerl, Roger W., and Ronald D. Snee. (2003). Leading Six Sigma; p. 5

six sigma project outlook
Six Sigma Project Outlook

Practical Problem

Statistical Problem

Statistical Solution

Practical Solution

key inputs for deployment
Key Inputs for Deployment
  • Strategy and Goals for Six Sigma
  • Process Performance Measures
  • Project Selection Criteria
  • Project Identification/Prioritization System
  • Deployment Processes for Champions, MBBs, BBs, etc
  • Roles of Management, Champions, MBBs, BBs and Functional Groups
  • Curricula and Training System
  • Project and Six Sigma Initiative Review Schedule
  • Project Reporting and Tracking System
  • Audit System for Previously Closed Projects
  • Reward and Recognition Plan
  • Communication Plan

Hoerl, Roger W., and Ronald D. Snee. (2003). Leading Six Sigma; p. 65

keys to successful deployment
Keys to Successful Deployment
  • Committed Leadership
  • Top Talent
  • Supporting Infrastructure
the right people

Black Belts

Black Belts

Black Belts

Green Belts

Green Belts

Green Belts

Green Belts

The Right People

Six Sigma Champions

Master Black Belts

Six Sigma Leaders

Yellow

Belts

Yellow

Belts

Yellow

Belts

Yellow

Belts

Yellow

Belts

Yellow

Belts

Six Sigma Project Team Members

Each Level Drives the Team to Breakthrough Project Performance

six sigma resource definitions
Six Sigma Resource Definitions
  • Black Belts
    • Full Time Six Sigma Resource
    • 4 Weeks Initial training, plus follow-up advanced statistical training
    • Work 3-4 projects Simultaneously
    • Mentor 5-10 Green Belt project
    • Train all Yellow Belts and some Green Belts
  • Green Belts
    • Initially trained Manufacturing or Operations GBs
    • 2 Week training -- equivalent Define and Measure skills
    • Expectation is to complete at least 1 project per year, and then workon 2nd project
    • Currently 25% of savings is from Green Belts
    • Evolved to DFSS, Technical Service, Transactional, Analytical and Reliability GBs
  • Yellow Belts
    • One day of training focusing on Define and Measure tools
    • Target team members, then future project resources
types of projects
Types of Projects
  • Cost Reduction
    • Yield and Rate Improvement
    • Downtime Reduction/Equipment Utilization
    • Raw Material Selection
    • Utility Optimization (Gas, Steam, Air and Electricity)
    • Trailer/Railcar Utilization
    • Accounts Payable Process
    • Corporate Credit Card Usage
  • Cost Avoidance
    • Reducing effects of future cost increases (disposal/environmental)
    • Inventory Control
  • Capital Avoidance
    • Plant Utilization
    • Rate Improvement
  • Revenue Enhancement
    • Plant Capacity Improvement
    • Tech Service Offerings
about six sigma at grace
About Six Sigma at Grace
  • What is Six Sigma (at Grace, at Davison)
    • Improving business performance by improving process performance
    • All kinds of processes -- from mfg to corporate
    • Leadership, alignment, support
    • Objectives, financial and otherwise
    • Organization, infrastructure
    • Staffing, training (6σ staff and everyone else)
    • Projects, scoping, tools, review & follow-up
    • Results at departmental, product line... Grace levels
    • Individual mind-set, organizational culture
davison six sigma savings
Davison Six Sigma Savings
  • Hard orEBIT savings
    • Revenues up
    • Costs down
  • Soft savings are
    • Cash Flow
    • Cost and Capital Avoidance

EBIT: Earnings Before

Interest & Taxes

A project’s savings are tracked

over a 12 months period.

implementing six sigma in a manufacturing environment
Implementing Six Sigma in a Manufacturing Environment
  • Evolution
  • Training
  • Resources
  • Projects
  • Project selection & management
  • Expansion
  • Measurement Systems
six sigma evolution at grace
Six Sigma – Evolution at Grace

Sept - Oct. 1999

January 2000

February 2000

June 2000

December 2000

May 2001

June 2001

December 2001

January 2002

April 2002

September 2002

September 2003

Champion training in U.S. and Europe

First Black Belt Wave Training Complete

First Green Belt Training (Admin)

Second Black Belt Wave Training Complete

Second Ops Green Belt Wave Training Complete

First Yellow Belt Training Complete

Six Sigma Project Hopper - 100% Utilized

First Catalyst DFSS Green Belt Class Complete

First German “Regional” Ops GB Class Complete

Sales/Tech Service Green Belt Training Complete

Analytical Green Belt Training Complete

Reliability Green Belt Training Scheduled

trained belts davison
Trained Belts - Davison

Goal is for each salaried

employee to hold an active, engaged Six Sigma role

project selection management process
Project Selection & Management Process

BB Project Loading

Evaluation (3-4)

and Assignment

CpK

studies

RTY studies

BB/GB Follow-Up Projects

Champion Inputs

Bus. Leader Inputs

Project Work

Project Reviews

Monthly General Manager

Reviews for Black Belts

Monthly Plant Manager

Reviews for Green Belts

High Priority Projects

Project Hopper

Hold, Reject,or More Info

  • Drive Project Speed
  • Instant Business Feedback
  • Opportunity to devote more resources
  • Understand Barriers
  • Opportunity to Kill a Project
  • Unearth additional projects

Business Leader

Acceptance

some of the tools we use
Some of the tools we use

Define

Measure

Analyze

Improve

Control

  • Project Charter
  • Process Map, Flowchart
  • Cause & Effect Analysis (C&E)
  • Failure Modes and Effects Analysis (FMEA)
  • Statistics and Data Analysis
    • Graphs, plots, etc... Multi-Vari Studies
    • Control Charts
    • Measurement Systems Analysis (MSA)
    • Regression, ANOVA
    • DOE (improve, optimize)
    • Surface Response (improve, optimize)
    • Process Capability
  • Control Plan
    • procedures, specifications, etc.
2003 six sigma savings
2003 Six Sigma Savings

More capable savings accountability was used in 2003. Goal was to drive projects more directly and accurately to the bottom line with the use of EBIT Metrics.

tracking cost reduction performance using a control chart
Tracking Cost Reduction Performance using a Control Chart

Silicas/Adsorbents

Forecast

  • May, 2003 Started New Six Sigma Review Format
  • Better Six Sigma Alignment to Drive Higher Performance
individual project savings
Individual Project Savings
  • Every project must report savings monthly.
  • Savings accounting is reviewed by the Black Belt and Champion to insure accuracy. Expenses or Capital Investment are subtracted from the savings.
  • Savings are tracked for 12 months and subject to audit after one year. This drives the continuous use of the Control Plan.
six sigma program investment
Six Sigma Program Investment

WR Grace (Total Commitment)

  • 44 GBs (2 classes) + 25 GBs (1 class) = $ 1,000,000 (~ $15,000/person)
    • Davison Catalyst Portion is approximately 25% - $250,000
  • $ 75,000 per GB Class (External Training)
    • $50K fee; $25K travel and expense
  • $ 25,000 per GB Class (Internal Training)
  • Grace has done 10 externally and 10 internally

ROI: Grace Davison Catalysts (~25% of Grace)

  • Total Savings: $ 15,000,000/year (60 times initial investment annually)
    • BB Savings (70%): $ 10,500,000/year
    • GB Savings (30%): $ 4,500,000/year
  • Resources
    • Black Belts: ~ 20
    • Green Belts: ~ 230
  • Annual Savings per Resource
    • Black Belts: $ 525,000 per year
    • Green Belts: $ 20,000 per year
where we re going with six sigma
Where We’re going with Six Sigma
  • Beyond manufacturing...
  • Administrative, Transactional, Corporate, Business processes
  • Sales and Technical Service
  • Maintenance, Reliability
  • Lean Manufacturing
    • Value Chain
  • Factory Physics
  • Customized Six Sigma Training
what the six sigma project has accomplished

The Roadmap “funnels” down the Xs from the trivial many to a “vital few”

Multi-vari

Multi-vari studies

help develop association

between the Y and key Xs

Reproducibility (people / methods)

What the Six Sigma Project Has Accomplished

We begin with the “Y”:

Process Map

Y = f (x1, x2, x3, x4, . . . xn)

}

Performance of the Y over Time

Initial

Capability

Assessment

C&E Matrix

Variation of the Y

FMEA

FMEA reduces variation and

effects for “inputs gone wrong”

x1, x7, x18, x22, x31, x44, x57

Actual variation

Measurement variation

Multi-Vari identifies Noise variables and reduces the x’s for DOE

Repeatability (equipment)

Y = f (x7, x22, x57)

DOEs identify the Critical x’s and their relationship to the Y

Reduced measurement error ,

“true” capability assessment !

Controls in place for Critical x’s

summary

30+ Inputs

10 - 15

8 - 10

4 - 8

3 - 6

Summary
  • Six Sigma
  • Grace, and Davison
  • Six Sigma at Grace
    • Evolution
    • Strategic, infrastructure
    • Tactical, execution
    • Results
  • Questions...
  • Drawing...