Resources and Aspects of Six-Sigma

Programme• ENBIS and Pro-ENBIS• ISRU’s support for Six-Sigma• The Words of Soren Bisgaard• The Words of Ron Kennet• The Main Speakers• Irena Ograjensek

- Opening the Toolbox!• Tony Greenfield

- Statistical Methods in Business and Industry

Dave Stewardson - ISRU

Soren Bisgaard - University of Amsterdam

Ron Kennet - KPA Israel

ENBIS

European Network for Business and Industrial Statistics

www.enbis.org

ENBIS

Big supporters of Six-Sigma throughout Europe

- To promote the widespread use of applied statistical methods in European business and industry,

- Membership - statistical practitioners from business and industry,

- Multidisciplinary problem solving

- To facilitate the rapid transfer of statistical knowhow

- Web-based

Vision

- Design of experiments- Reliability and safety- Data mining / warehousing- General statistical modelling

Working groups

- Process modelling and control

- Quality improvement- Statistical consultancy

- bENBIS (Belgium)- nENBIS (Netherlands)- iENBIS (Israel)

Local networks

Organisation

- No membership fee (for the time being)

- 565 members (September, 2002)

Organisation

Membership benefits

ENBIS offers :

-Network facilities

-Conferences

-Courses

-Thematic network Pro-ENBIS

www.enbis.org

Aims include:

Start a European Training Network

Found European Measurement System Audit

Draft new European Journal - web-based

Inorgorate a European Business-to-Business Mentoring Scheme

Publish a ‘State-of-the-Art’ report on the use of Industrial Statistics in Europe

Access further funding to promote ENBIS

Pro-ENBIS

Training Network now has more than 50 participants

Push to help implement Six-Sigma throughout Europe - this is a massive resource.

Including the non-EC states!

Pro-ENBIS

Planned ‘Workshops’ for 2003:

Sardinia alongside DEINDE conference on Designed experiments - February

Maastrict (Netherlands) alongside ESREL reliability conference - June

Currently planning UK based Workshop

Pro-ENBIS

Siemens Electric Heating ASSiemens Electric Heating ASBratsbergvegan 5

N-7493TRONDHEIM

Norway

21/6/2002Tel No +47 73 95 90 00

Pro-ENBIS industrial visits

Jon Tyssedal, tyssedal@math.ntnu.noProfessor of Statistics, NTNUExpert in Statistics Maria Fernanda Ramalhoto, framalhoto@math.ist.utl.ptProfessor of Statistics,Instituto Superior Tecnico, LisbonExpert in Reliability and Quality Improvement

Ron Kenett, ron@kpa.co.ilInternational Management Consultant, CEO KPA Ltd.Expert in Industrial Statistics and Quality Management

ENBIS team

Six-Sigma and ReliabilityFor Nestle

Dave Stewardson - ISRU with

Froydis Berke - Matforsk Norway

Soren Bisgaard - USA

Poul Thyregod - Denmark

Bo Bergman - Sweden

ISRU’s Support for Six-Sigma

Hands-on Support for Champions Black-Belts and Master Blackbelts

Full Six-Sigma programme from October - Black Belt - Green Belt - Yellow Belt - training and support

This is VERY market / customer driven

Plus - access to on-line support

Keys to Success Mark II

1. Need to overcome demands on peoples time

2. Need to overcome reluctance to try new methods - fear of failure

3. Must be allowed to discover that the key methods are self correcting!

In other words - you can’t really fail at all

ISRU - On-Line Modules

ISRU’s Courses

ISRU have 3 certified courses available on Blackboard:

• DoE (Design of Experiments)

• MQT(Modern Quality Tools)

• SPC (Statistical Process Control)

Soren BisgaardLeading Industrial Statistician

Extract from Presentation

The “Success” of Change Programs?

“Performance improvement efforts … have as much impact on

operational and financial results as a ceremonial rain dance has on the weather”

Schaffer and Thomson,Harvard Business Review (1992)

Change Management:Two Alternative Approaches

Activity Based Programs

Result Oriented Programs

ChangeManagement

Reference: Schaffer and Thomson, HBR, Jan-Feb. 1992

Activity Centered Programs

• Activity Centered Programs: The pursuit of activities that sound good, but contribute little to the bottom line

• Assumption: If we carry out enough of the “right” activities, performance improvements will follow– This many people have been trained– This many companies have been certified

• Bias Towards Orthodoxy: Weak or no empirical evidence to assess the relationship between efforts and results

An Alternative: Result-Driven Improvement Programs

• Result-Driven Programs: Focus on achieving specific, measurable, operational improvements within a few months

• Examples of specific measurable goals:– Increase yield– Reduce delivery time– Increase inventory turns– Improved customer satisfaction– Reduce product development time

Result Oriented Programs:

• Project based• Experimental • Guided by empirical evidence• Measurable results• Easier to assess cause and effect• Cascading strategy

Why Transformation Efforts Fail!

• John Kotter, Professor, Harvard Business School

• Leading scholar on Change Management • Lists 8 common errors in managing change,

two of which are: • Not establishing a sense of urgency• Not systematically planning for and

creating short term wins

Six Sigma Demystified*

– Alignment of customers, strategy, process and people

– Significant measurable business results– Large scale deployment of advanced

quality and statistical tools– Data based, quantitative

*Adapted from Zinkgraf (1999), Sigma Breakthrough Technologies Inc., Austin, TX.

Keys to Success*

• Set clear expectations for results

• Measure the progress (metrics)

• Manage for results

*Adapted from Zinkgraf (1999), Sigma Breakthrough Technologies Inc., Austin, TX.

Six Sigma

• The precise definition of Six Sigma is not important; the content of the program is

• A disciplined quantitative approach for improvement of defined metrics

• Can be applied to all business processes, manufacturing, finance and services

Focus of Six Sigma*

• Accelerating fast breakthrough performance

• Significant financial results in 4-8 months

• Ensuring Six Sigma is an extension of the Corporate culture, not the program of the month

• Results first, then culture change!

*Adapted from Zinkgraf (1999), Sigma Breakthrough Technologies Inc., Austin, TX.

Six Sigma: Reasons for Success

• The Success at Motorola, GE and AlliedSignal has been attributed to:– Strong leadership (Jack Welch, Larry

Bossidy etc. personally involved)

– Initial focus on operations

– Aggressive project selection (potential savings in cost of poor quality > $50,000/year)

– Training the right people

Ron KennetRising Industrial Statistician

Extract from Presentation

“the most important initiative GE has ever undertaken”.

Jack WelchChief Executive OfficerGeneral Electric

• In 1995 mandated each GE employee to work towards achieving 6 sigma• The average process at GE was 3 sigma in 1995• In 1997 the average reached 3.5 sigma • GE’s goal is to reach 6 sigma by 2001• Investments in 6 sigma training and projects reached 45MUS$ in 1998, profits increased by 1.2BUS$

• In 1995 mandated each GE employee to work towards achieving 6 sigma• The average process at GE was 3 sigma in 1995• In 1997 the average reached 3.5 sigma • GE’s goal is to reach 6 sigma by 2001• Investments in 6 sigma training and projects reached 45MUS$ in 1998, profits increased by 1.2BUS$

General ElectricGeneral Electric

“At Motorola we use statistical methods daily throughout all of our disciplines to synthesize an abundance of data to derive concrete actions….How has the use of statistical methods within Motorola Six Sigma initiative, across disciplines, contributed to our growth? Over the past decade we have reduced in-process defects by over 300 fold, which has resulted in a cumulative manufacturing cost savings of over 11 billion dollars”*.

Robert W. GalvinChairman of the Executive CommitteeMotorola, Inc.

MOTOROLMOTOROLAA

*From the forward to MODERN INDUSTRIAL STATISTICS by Kenett and Zacks, Duxbury, 1998*From the forward to MODERN INDUSTRIAL STATISTICS by Kenett and Zacks, Duxbury, 1998*From the forward to MODERN INDUSTRIAL STATISTICS by Kenett and Zacks, Duxbury, 1998*From the forward to MODERN INDUSTRIAL STATISTICS by Kenett and Zacks, Duxbury, 1998

KnowledgeKnowledgeManagementManagement

The Six Sigma InitiativeThe Six Sigma Initiativeintegrates these effortsintegrates these efforts

How is Six Sigma deployed?

Six Sigma is deployed via project teams launched and supported by Black Belts. Projects can be of different size and duration. We define projects as—a structured and systematic approach to achieving Six Sigma levels of improvement. Depending on the scope of the project, they can be defined as:

Business Process Projects – large-scale improvement of a business process that extends across an organization. For example, order taking.

Six Sigma Quality Improvement Project – aimed at solving chronic problems crossing multiple functions of an organization.

Work Team Project – a project within one department.

How is Six Sigma deployed?

Six Sigma is deployed via project teams launched and supported by Black Belts. Projects can be of different size and duration. We define projects as—a structured and systematic approach to achieving Six Sigma levels of improvement. Depending on the scope of the project, they can be defined as:

Business Process Projects – large-scale improvement of a business process that extends across an organization. For example, order taking.

Six Sigma Quality Improvement Project – aimed at solving chronic problems crossing multiple functions of an organization.

Work Team Project – a project within one department.

Six Sigma project roadmapSix Sigma project roadmapSix Sigma project roadmapSix Sigma project roadmap

DEFINEDEFINE

MEASUREMEASURE

ANALYZEANALYZE

IMPROVEIMPROVE

CONTROLCONTROL

Black Belt training programBlack Belt training programBlack Belt training programBlack Belt training program

• 6 sigma principles• Quality Improvement• Quality by Design• Quality Control• Teamwork• Effective presentations• QFD/VOC • Statistical thinking• Process mapping• Barriers to breakthroughs• JMP, MINITAB…..

• Gage R&R• SPC• SPC Strategy• Risk Management• FMEA• Statistical Inference• Design Of Experiments• DOE Strategy• Bootstrapping• Robust Designs• System Thinking

Barrier #1: Engineers and managers are not interested in mathematical statistics

Barrier #2: Statisticians have problems communicating with managers and engineers

Barrier #3: Non-statisticians experience “statistical anxiety” which has to be minimized before learning can take place

Barrier # 4: Statistical methods need to be matched to management style and organizational culture

Barrier #1: Engineers and managers are not interested in mathematical statistics

Barrier #2: Statisticians have problems communicating with managers and engineers

Barrier #3: Non-statisticians experience “statistical anxiety” which has to be minimized before learning can take place

Barrier # 4: Statistical methods need to be matched to management style and organizational culture

Barriers to implementation

Technical Technical SkillsSkills

Soft SkillsSoft Skills

StatisticiansStatisticiansMaster Master

Black BeltsBlack BeltsBlack BeltsBlack Belts

Quality Improvement Quality Improvement FacilitatorsFacilitators

BBBBBBBBMBBMBB

Leadership Group

Processes, internal and external customers

Team 1 Team 2 Team 3

BBBBBBBB BBBBBBBB BBBBBBBB

MBBMBB

The The 6 Sigma6 Sigma Project Structure Project Structure

KPAISRUENBIS

The right way!

• Plan for “quick wins”– Find good initial projects - fast wins

• Establish resource structure– Make sure you know where it is

• Publicise success– Often and continually - blow that trumpet

• Embed the skills– Everyone reports success

Pro-Enbis

All joint authors - presenters - are members of:

Pro-Enbis and ENBIS.

This presentation is supported by Pro-Enbis a Thematic Network funded under the ‘Growth’ programme of the European Commission’s 5th Framework research programme - contract number G6RT-CT-2001-05059