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The ABCs of Six Sigma

2. A to Z for today. Why are companies interested?What is Six Sigma (basic)?HistoryMethodologyWhat is a deployment?Critical Success FactorsWIIFM. 3. Why Today's Six Sigma?. Cost ReductionResource Allocation, Project PrioritizationRevenue GrowthCustomer RetentionCulture ChangeData-based D

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The ABCs of Six Sigma

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    1. 1 The ABCs of Six Sigma Six Sigma Methodology in today’s corporate environment

    2. 2 A to Z for today Why are companies interested? What is Six Sigma (basic)? History Methodology What is a deployment? Critical Success Factors WIIFM

    3. 3 Why Today’s 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

    4. 4 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

    5. 5 What is Six Sigma? Work is completed in a Project Team Led by a company’s 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. . Oh – Black Belts are Project managers. Oh – Black Belts are Project managers

    6. 6 Statistically Speaking YESYES

    7. 7 Statistically Speaking YESYES

    8. 8 Six Sigma Black Belt methodology began in late 80’s/early 90’s 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 YESYES

    9. 9 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 YESYES

    10. 10 Deployment Process for Driving Sustainable Results

    11. 11 Lean & Six Sigma Tools

    12. 12 What’s 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

    13. 13 Deployment Components What’s 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

    14. 14 Deployment Must Haves Full executive commitment (CEO and direct reports) P&L/Business owners must be accountable for results and should own and commit resources – typically 1% of population as Black Belts Select projects to support business needs (strategic, financial objectives, customers) Broad-based training in Six Sigma tools and team leadership skills Actively manage PIP (Projects in Process) to keep project cycle times short and show results quickly Rigorously measure and track results (projects and deployment) Drive culture change from both top-down and bottom-up perspective – The Soft Stuff is the Hard Stuff Use A -Team for deployment (consultants, program managers, 1st wave belts)

    15. 15 Three Potential Deployment Alternatives – Pro’s and Con’s

    16. 16 Six Sigma Commitment Required at Every Level 6 Sigma Project Team Members 6 Sigma-skilled employees will eventually be referred to as Green Belts and Yellow Belts. Any Caterpillar employee can become a Yellow Belt–over time. Problem solving, statistics, and quality tools are a few of the skills required of a Green Belt. All Belts have certification requirements. 6 Sigma Project Team Members 6 Sigma-skilled employees will eventually be referred to as Green Belts and Yellow Belts. Any Caterpillar employee can become a Yellow Belt–over time. Problem solving, statistics, and quality tools are a few of the skills required of a Green Belt. All Belts have certification requirements.

    17. 17 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 Why is it important? It is a critical success factor for LSS Deployment. *Companies have tied deployment failure to lack of visibility and reporting – or having metrics in place but no feedback (or limited feedback – i.e. quarterly) * DuPont/Conoco cited going with a “cheap software solution” as one of their failures. *Project Tracking Software supports and empowers Executive Leaders Deployment Champions Black Belts Green Belts It enables them to fulfill their respective Lean Six Sigma roles. Cited not only by the George Group, but by all three finalists. Why is it important? It is a critical success factor for LSS Deployment. *Companies have tied deployment failure to lack of visibility and reporting – or having metrics in place but no feedback (or limited feedback – i.e. quarterly) * DuPont/Conoco cited going with a “cheap software solution” as one of their failures. *Project Tracking Software supports and empowers Executive Leaders Deployment Champions Black Belts Green Belts It enables them to fulfill their respective Lean Six Sigma roles. Cited not only by the George Group, but by all three finalists.

    18. 18 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 Why is it important? It is a critical success factor for LSS Deployment. *Companies have tied deployment failure to lack of visibility and reporting – or having metrics in place but no feedback (or limited feedback – i.e. quarterly) * DuPont/Conoco cited going with a “cheap software solution” as one of their failures. *Project Tracking Software supports and empowers Executive Leaders Deployment Champions Black Belts Green Belts It enables them to fulfill their respective Lean Six Sigma roles. Cited not only by the George Group, but by all three finalists. Why is it important? It is a critical success factor for LSS Deployment. *Companies have tied deployment failure to lack of visibility and reporting – or having metrics in place but no feedback (or limited feedback – i.e. quarterly) * DuPont/Conoco cited going with a “cheap software solution” as one of their failures. *Project Tracking Software supports and empowers Executive Leaders Deployment Champions Black Belts Green Belts It enables them to fulfill their respective Lean Six Sigma roles. Cited not only by the George Group, but by all three finalists.

    19. 19 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 it’s completion

    20. 20 WIIFM (What’s 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

    21. 21 Michelle Goodman, MBA,PMP® Program Manager Six Sigma Deployment Champion 13100 Wayzata Blvd, Suite 160 Minnetonka, MN 55305 (651) 261-9422 (Cell) mgoodman@trissential.com www.trissential.com The ABCs of Six Sigma Conclusion

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