Discovering the Reality of Lean Six Sigma in Manufacturing, Services, and Transactional Environments

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© 2004 American Productivity & Quality Center 1 replicating the gains from six sigma and lean Replicating the Gains from Replicating the Gains from Six Sigma and Lean: Six Sigma and Lean: Capturing and Transferring Capturing and Transferring Knowledge and Best Knowledge and Best Practices Practices Discovering the Reality of Lean Discovering the Reality of Lean Six Sigma in Manufacturing, Six Sigma in Manufacturing, Services, and Transactional Services, and Transactional Environments Environments December 3, 2004 December 3, 2004

Transcript of Discovering the Reality of Lean Six Sigma in Manufacturing, Services, and Transactional Environments

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replicating the gains from six sigma and lean

Replicating the Gains from Six Sigma and Replicating the Gains from Six Sigma and Lean: Capturing and Transferring Lean: Capturing and Transferring

Knowledge and Best PracticesKnowledge and Best Practices

Replicating the Gains from Six Sigma and Replicating the Gains from Six Sigma and Lean: Capturing and Transferring Lean: Capturing and Transferring

Knowledge and Best PracticesKnowledge and Best Practices

Discovering the Reality of Lean Six Sigma in Discovering the Reality of Lean Six Sigma in Manufacturing, Services, and Transactional Manufacturing, Services, and Transactional

EnvironmentsEnvironments

December 3, 2004December 3, 2004

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APQC Mission

…to work with people in organizations around the world to improve productivity and quality by:

• Discovering, researching, and understanding emerging and effective methods of improvement;

• Broadly disseminating our findings through education, advisory and information services; and

• Connecting individuals with one another, and with knowledge and tools they need to improve

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replicating the gains from six sigma and lean

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Study Purpose

The consortium research identified successful ways process improvement initiatives can use KM to “supercharge” the replication and transfer of best practices. This consortium studied how process improvement leaders incorporate KM into their process improvement methodologies (e.g., Six Sigma and Lean) to achieve operational excellence.

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Scope Areas

1. Connecting people to people and people to information

2. Build knowledge capture and transfer steps and behaviors into improvement methodologies and training

3. Cultural and behavioral issues

4. Identify indicators and measures for success

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Consortium Sponsors• American Standard Company • AFMC • Bank of America• BHP Billiton • Citigroup• Ford Motor Company*• Grupo IMSA

• Johnson & Johnson • JPMorgan Chase• Northrop Grumman• OSRAM SYLVANIA/Siemens

Power Generation• Washington Mutual

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North AmericanIndustrial Gases

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Analyze• Key Findings• Critical Success Factors & Enablers

• Successful Practices

Knowledge Transfer Session

• Final Report• Presentations• Q&A• Breakouts• Initial Action Planning

Kick-off Meeting• Review Partners• Develop Data

Collection Tools• quantitative• qualitative

Conduct Research

to ID Potential Partners

Finalize Data Collection Tools

• quantitative• qualitative

Contact Potential

Partners & invite them

to join study

Data Collection

Site Visits Write Case

Studies

• Collect Partner Information

• Collect Sponsor Information

Planning

Reporting

CollectingAnalyzing

Consortium Study Methodology

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Previous Quality/Continuous Improvement Studies• Performance Measurement: Implementing the Balanced Scorecard

(2002)• Deploying Six Sigma to Bolster Business Processes and the Bottom

Line (2002) • Activity-Based Management 2000: Best Practices in Shared Services

and Information Technology (2000) • Measure What Matters: Aligning Performance Measures with

Business Strategy (2000) • Quality Approaches for the New Millennium (2000) • Performance Management: Tapping Your Organization’s People

Potential (1999)• Activity-Based Management III: Best Practices for Strategic

Improvement (1999)

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Replicating the Gains of Six Sigma/Lean Model

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Strategy Leads to Replication Success• Knowledge capture and replication programs must be aligned with

core business processes– Successful organizations embed knowledge capture and replication steps in

the Six Sigma/lean methodology – “Thin the middle layer of clay…”

• These activities must directly impact process performance, such as customer satisfaction, productivity improvement, and cost reduction for middle management to pay attention.

– Management must address core change management issues • Accountability, incentives, training, communication, metrics, and performance

evaluations drive knowledge sharing and replication behavior

CoPs IT Tools Environment MetricsStrategy Methodology

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Partner Examples: Strategy• Intuit is integrating business management system with process

excellence (in 3 phases) with the intent to make process improvement a common language.

• Raytheon ensures alignment of R6σ by incorporating R6σ in the business’ strategic plans, operating plans, and reviews.

• DuPont expects 3 percent growth each year to come from Six Sigma projects, driving practitioners to replicate.

• Johns Manville’s Lean Six Sigma program partnered with manufacturing, marketing, and sales to drive to the “Gap to Entitlement.” This creates “pull” for replication.

CoPs IT Tools Environment MetricsStrategy Methodology

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Leadership Drives Replication• Engaged leadership support is required for knowledge

capture and replication with Six Sigma/lean programs– 75% of partners leadership expect results to be replicated.– 63% of partners use performance evaluations to drive the

successful capture/transfer of practices…a management process.

– Partners report moderate-to-frequent amount of active, demonstrated support for Six Sigma/Lean knowledge capture and transfer processes from executives (3.9) compared to sponsors (2.2) on a scale of 5.

CoPs IT Tools Environment MetricsStrategy Methodology

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Partner Examples: Leadership of Replication• DuPont’s CEO and senior executives established Six Sigma as the

way to transform the company by fueling growth, growing the top line, and enabling the bottom line.

• Raytheon combined Six Sigma, lean, and KM into R6σ to enhance continuous improvement with knowledge sharing and replication practices.

• Ford’s Corporate Quality Vice President is responsible for Six Sigma and Best Practice Replication.

• Intuit’s CEO drove implementation of Six Sigma and replication of results as the continuous improvement tools of the company.

CoPs IT Tools Environment MetricsStrategy Methodology

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Leadership Accountability for Capture and Replication

• Best practices are unlikely to spread across organizations if the organization does not make some effort to spread them1

– 63% of partners designated MBBs or Six Sigma/lean champions accountable for knowledge capture and transfer.

– KM programs and practitioners enable knowledge capture and replication, but Six Sigma/lean practitioners own the process.

• All partners have a network of champions, BBs, MBBs, KM brokers, and/or communities of practice with accountability to drive capture, sharing, and replication.

Gabriel Szulanski, Sticky Knowledge: Barriers to Knowing in the firm. 2003

CoPs IT Tools Environment MetricsStrategy Methodology

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Linking with the KM Program• The KM program can act as a broker by linking appropriate groups

or people together where and when replication should occur.– KM is the enabler of the replication process, not the leader.– Can be part of the formal KM program strategy or more informally utilized.– 64% of partners indicate that interaction between KM and Six Sigma is moderate to

high on every project

• Partner examples:– Raytheon and Air Products completely integrated KM principles and program

components into continuous improvement processes.– Ford links Best Practice Replication focal points to Six Sigma project teams to capture

and disseminate best practices– Intuit has one KM PE professional (also an MBB) work to identify replication

opportunities and leverage across the enterprise

CoPs IT Tools Environment MetricsStrategy Methodology

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replicating the gains from six sigma and leanIntegration Implementation Plan

Customers Customers

3. COP Training Plan w/Toll Gates

1. Initialization Steps

2. Infrastructure Steps

4. KM Systems

AwarenessTQM/KM-basics

Foundations Readiness

5. COP/Project-Inventory(All Types-Design/Service/MFG/Transactional)

DEFINEHoshinFocus

Assignments

5SBasicLean

Takt-TimeMAIC

KMTG3

6. Company Genetics (Standardize/CTB-KOI’s)

YBasicTriz

RACITG1

DFSSTools

Feeder (X’s)

(Business)BusinessFunctions

(COP)

(People)Employee

Base

(Our Culture)

L in k

ing

CoPs IT Tools Environment MetricsStrategy Methodology

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Tool: Success Checklist for Strategy/Leadership Ensure that executive management is involved in the replication

process through regular reviews and updates. Align replication strategy objectives with core business processes

and objectives. Assign accountability for knowledge capture, transfer, and

replication. Get the suppliers involved in the replication process. Leverage existing KM approaches to enable replication.

CoPs IT Tools Environment MetricsStrategy Methodology

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Tool: Replication Leadership Status Checklist1. Do you think the replication process is self-sustaining in your organization?

2. What is the status of your knowledge brokers?

3. How many project reviews do the senior executives attend (partially or wholly)?

4. How many projects are officially replicated, either in part or whole?

5. Have you and the finance department agreed upon the guidelines that define true savings with regard to replicated projects?

6. Do you think you are focusing on improving the efficiency of each project completion?

7. Does the status report you give to the champions and the Presidents include replications of successful projects?

8. Are the controllers aware of the savings garnered by replicated projects?

9. If you were to spot check the controllers, what defect rate would you find? In other words, how many similar projects were completed without replication?

10. What database are you going to use through the life of tracking your projects and capturing best practices?

11. Do those who share AND those who replicate get “credit” for the savings?

12. What are the consequences for champions that are not helping and driving replication?

CoPs IT Tools Environment MetricsStrategy Methodology

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KM Methodology Company A Company B

Do you have a formal process in place to capture and transfer knowledge from one set of Six Sigma/Lean projects to other projects? Y N

Is knowledge capture and reuse built into Six Sigma/Lean methodology? Y N

Does Six Sigma/Lean training include knowledge capture and reuse tools and processes?

N N

Do you have a group accountable for knowledge sharing and reuse in your organization?

Y Y

Does the team responsible for knowledge sharing and replication support the Six Sigma/Lean process directly with resources and tools to facilitate replication?

Y N

Who drives/owns the knowledge replication process in your organization (None = 0, KM = 1, 6S champs = 2, Sr. Execs = 3)?

3 2

Section Score 88% 38%

Transfer Processes Company A Company B

Do you have an IT tool integrated with your Six Sigma/Lean process that allows practitioners to capture/find practices?

Y Y

Does your orgnization use project milestone reviews/project snapshots as an opportunity to capture/transfer knowledge? Y Y

Does your organization deliver replicable practices via push methods, create pull, or both? (0=neither, 1=push or pull, 2=both) 1 0

What percentage of Six Sigma/Lean practitioners belong to one or more networks or CoPs? (0=0%, 1=1-20%, 2=21-50%, 3=51-75%, 4=76-100%) 2 3

Section Score 63% 63%

Measuring Success Company A Company B

Do you measure the gains of replicated/reused practices from Six Sigma/Lean projects?

Y N

Have you captured the incremental cost savings from replicated projects? Y N

Is knowledge capture and reuse built into Six Sigma/Lean practitioners performance evaluation?

Y N

What percentage of Six Sigma/Lean projects have been replicated (part or whole)? (0=0%,1 =1-10%, 2=10-20%, 3=21-50%, 4=51-100%) 3 1

Section Score 86% 14%

KM Total Score 78% 26%

Tool: Leadership Replication Strategy Scorecard

Microsoft Excel Worksheet

CoPs IT Tools Environment MetricsStrategy Methodology

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Building Replication into 6S/lean Methodologies• 100% of the partners build knowledge capture and transfer into the Six

Sigma/lean methodology.– Creates an internal marketplace for capturing and sharing best practices– Partners create “pull” by making replication part of methodology, but also “push”

relevant practices to practitioners. • 100% of partners have deployed capture and 75% have deployed

transfer enterprise-wide vs. 18% and 9% of sponsors, respectively.• Partner examples:

– DuPont’s step 1 and step 17 require practitioners to search for analogous projects and identify translation opportunities, respectively.

– Raytheon modified its methodology to include 3 questions around knowledge sharing and replication for all practitioners.

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Partner Examples: Capture and Transfer Tools• Partners and sponsors use a mix of IT tools and face-to-face

processes to ensure capture and replication of tacit and explicit knowledge.– Intuit’s Tollgate reviews take place at the end of each phase of its DMAIC

methodology and require updating of Quickbase repository.– Johns Manville uses gate reviews, Six Sigma Week conferences, and network

meetings to share and replicate practices.– DuPont requires practitioners to update SigmaTrac and uses champion

networks to transfer practices.– Raytheon uses several databases, executive briefings, and communities of

practice to drive capture and replication.– Ford has begun linking its Project Tracking System with the Best Practice

Replication system and communities to replicate practices across hundreds of locations.

CoPs IT Tools Environment MetricsStrategy Methodology

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Knowledge Capture and Transfer Components

88% 88% 88%

100%

88%

4.4 4.4

3.4

4.3

4.4

0.0%

20.0%

40.0%

60.0%

80.0%

100.0%

Project milestonereviews, project

snapshots

Documentation ofwork flow/processes

Data/Knowledgerepositories

Executive briefings Face-to-face meetings

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

5.0

Exte

nt

of

Eff

ecti

ven

ess

Frequency

Mean Value

n=8

CoPs IT Tools Environment MetricsStrategy Methodology

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Roles – Who Makes Replication Happen?• Partners link KM roles with BBs/MBBs to drive responsibility for

knowledge capture and replication– Ford’s BBs capture project details and indicate where replication is relevant

• BPR CoP members identify nuggets for inclusion in BPR database– Raytheon’s KM brokers work with R6σ team members to drive networking and

collaboration– DuPont’s MBBs are responsible for reuse and translation– Johns Manville’s BBs capture, share, and interact with networks to drive

replication.• Partners ensure sustainability by driving Six Sigma/lean processes and

methodologies enterprise-wide.– Training includes knowledge capture/replication tools & processes– “White Belt” training, promotability, Green Belt scorecards

CoPs IT Tools Environment MetricsStrategy Methodology

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Tool: Replication Process Model

CoPs IT Tools Environment MetricsStrategy Methodology

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Step 1: Finding Replicable Practices

• During the Define phase, project teams should search for replicable, similar practices

• These might come from anywhere in the world…and can be pushed or pulled

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Step 2: Applying Practices

Best Practices

Best Practices

ExpertiseBest

Practices

Define Measure Analyze Improve Control

ExpertOpinions

Project team members should apply practices in each or any appropriate step

The organization’s Six Sigma/lean tools should allow project team members to locate the experts who can provide context around practices they wish to replicate

CoPs IT Tools Environment MetricsStrategy Methodology

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Step 3: Improving the Project

Define Measure Analyze Improve Control

Identifying key Xs, measuring process throughput, and analyzing causes should be easier and faster with best practices

Black Belts should be able to complete more projects with greater impact each year if they will capture and reuse

Tighterscope

20 days to12 days

Differenttools

5 days to 2.5 days

New measures

CoPs IT Tools Environment MetricsStrategy Methodology

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Step 4: Capturing Practices

Data

Server

Each team should capture best practices and improvements after completion of a key step of the project.

Examples: Fewer days for project because

of tight scope and leadership Reduction of project costs by… Identified X best practices to be

replicated Realized that control measures

needed tweaking, etc…

CoPs IT Tools Environment MetricsStrategy Methodology

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Step 5: Feedback Improvements

Data

Server

To drive continuous improvement:

Provide ability to give feedback on replicated practices

Create a “push” subscription system to alert new practices

Encourage practitioners to “pull” new practices and improvements

Ensure that databases and IT tools contain most updated information

CoPs IT Tools Environment MetricsStrategy Methodology

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Networks and CoPs connect experts and practitioners for tacit knowledge exchange

Networks and CoPs raise awareness of replication opportunities

Networks and CoPs begin to “own” improvement in their areas

Networks and CoPs prevent rampant duplication of effort

Networks and CoPs ensure that practices are validated and current

Certification and closeout presentations also serve as means to ID replication.

Step 6: Presenting to Networks

CoPs IT Tools Environment MetricsStrategy Methodology

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Tool: Steps to ReplicationYEAR ONE

1. Enlist senior leadership to expect/enforce capture and replication.2. Add “knowledge replication” to Define phase and “knowledge

capture” to Control phase3. Set up database for best practices/lessons learned4. Develop ongoing project list that registers projected and actual

saving from parent and child projects5. Establish ongoing communication plan to build awareness for

replication opportunities6. Train key stakeholders on replication processes and tools7. Ensure reward/recognition system promotes capture and replication8. Develop common metric reporting system that updates status of all

projects monthly.

CoPs IT Tools Environment MetricsStrategy Methodology

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Tool: Steps to Replication (continued)YEAR TWO

1. Engage key suppliers/customers in replication process2. Build replication goals into company-wide strategic plans3. Host quarterly reviews with senior management; highlight

replicated projects’ impact4. Host certification events that recognize replication achievements5. Develop compensation plans that include Belts AND upper

management6. Create a “pull” system for replication by building “pull” into 6S

methodology and widely publicizing benefits

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Networks and Communities of Practice• Partner and sponsors organizations both tend to have CoPs

involved with overall Six Sigma/lean initiatives. • Half of partners report that 81 - 100 % of their Six Sigma/lean

practitioners belong to one or more CoP/network (sponsors were much lower).

• When asked how they report project results to others upon completion, the partners’ top two responses were – Projects results are shared among the appropriate CoPs, and – Projects are presented at face-to-face meetings, regional meetings, etc.

CoPs IT Tools Environment MetricsStrategy Methodology

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Partner Examples: Networks and CoPs• Ford leverages BPR CoPs (as well as belt and champion networks)

to identify nuggets for replication. – Ford has approximately 3000 members in 60 CoPs

• DuPont noted three key enterprise networks: small business unit champions network, MBB network, and the KM collaboration network.

– R&D is now able to link with marketing through networks to hear voice of the customer.

• Raytheon has KM champion and broker CoP, and R6σ suppliers, business leadership, strategic leadership, and technology networks

– All communicate to each other about project results, best practices, and lessons learned

• Intuit’s PE leader CoP meets monthly to discuss strategic topics and enhance progress of PE process.

CoPs IT Tools Environment MetricsStrategy Methodology

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Tool: CoP and Networks Model• Groups of people who come together to share and to learn from one another face-to-face and virtually.

• They are held together by a common purpose; they contribute to a body of knowledge and are driven by a desire and need to share problems, experiences, insights, templates, tools, and best practices.

• Community members deepen their knowledge by interacting on an ongoing basis.

SUVs/Trucks

Sedans

Minivans

Sports cars

Product Line

Communities of Practice

Gree

n B

elts

Bla

ck B

elts

Ma

ste

r Bla

ck

Belts

Ch

am

pio

ns

Pro

ces

s O

wn

ers

Ex

ecu

tives

CoPs IT Tools Environment MetricsStrategy Methodology

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Tool: 10 Traits of Successful CoPs and Networks1. A compelling, clear business value proposition for all involved 2. A dedicated, skilled facilitator or leader 3. A coherent, comprehensive knowledge map for the core content of

the CoP 4. An outlined, easy-to-follow knowledge sharing process5. An appropriate technology medium that facilitates knowledge

exchange, retrieval, and collaboration 6. Communication and training plans for members and others outside

of the CoP 7. An updated, dynamic roster of CoP members 8. Several key metrics of success to show business results 9. A recognition plan for participants 10. An agenda of critical Six Sigma/lean topics to cover for the first

three to six months of existence

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Integrated IT Tools and Databases• Partners noted that an IT tool with a project process tool, project

capture, economic value, and knowledge/expertise repository makes for one-stop shopping.

– Each of the best-practice partners brands their Six Sigma/Lean and knowledge capture/transfer process with a tool.

• Sponsors indicated that improper tools were one of the largest barriers to knowledge capture

– Partners use a greater number of IT tools to support knowledge capture and replication - lack of connectivity was the biggest barrier.

• “Projects don’t exist unless they are in the system.”– IT tools support the Six Sigma/lean methodology and are integrated into the

processes practitioners use.– IT tools provide a convenient means of tracking and valuing project outcomes.

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Partner Examples: IT Tools and Databases• Partners “brand” Six Sigma with their tools:

– DuPont’s Six Sigma TRAC– Intuit’s Quickbase– Johns Manville’s E-Tracker– Ford’s Best Practice Replication and Project Tracking Systems– Raytheon’s URKM and RMS portal

• Partners use IT tools for tracking and valuation– Ford’s Project Tracking System (and BPR) have a built-in subscription

process and contain validated project outcomes.• Includes realized value, critical actions, areas of impact, etc.

– DuPont’s Sigma Trac contains all active projects, learnings, references, expert location, procedures, and links to databases.

– Intuit’s Quickbase captures all project information, expert information, best practices, and links to databases.

CoPs IT Tools Environment MetricsStrategy Methodology

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Tool: Integrated IT Tools – Checklist Replication process overview Project database

– Outline– Project milestones– DMAIC/Lean process outputs– Results– Best practices/lessons learned– Project savings– Subscription capability

Collaboration capability Content Management

Process Classification Framework or Taxonomy

Expert Location for follow-up Project Workflow Communities of Practice

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Building a Replication Business Environment• Tailor the knowledge capture and transfer process to fit the culture.

– If sharing and reuse are not the norm, management mandate and building replication into the 6S/lean methodology are keys.

– If have a sharing culture, ensure processes and tools make it easier.• Identify and overcome barriers to the capture and replicating

process.– Partners ranked absorptive capacity as top barrier. K-sharing and replication

should help reduce time demands.– Partners indicate that making knowledge capture and replication part of the

performance evaluation drives success.• Prevent reinvention of the wheel.

– Management should demand that best practices are replicated by building replication processes into methodology

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Building a Replication Business Environment (cont.)• Strong knowledge capture and replication demands constant and

varied communication – Ford noted that many people are unaware of replication processes, so communication is

key!– Raytheon created a comprehensive communication plan, including R6σ brochures, video,

and KM passport.– Johns Manville encourages “White Belt” training for all employees to raise awareness of

Lean Six Sigma.

• Partners drive knowledge capture and replication by embedding KM processes in training

– 100% of partners embed training on KM processes, tools, and methodologies in Six Sigma/lean training vs. 18% of sponsors.

– Raytheon integrated comprehensive knowledge capture and transfer training materials into the R6σ curriculum. MBBs, BBs, and GBs are required to share knowledge as part of certification.

– Johns Manville embeds training on Web page, storyboard, E-Tracker search, and report outs in Lean Six Sigma training.

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Tool: Capture/Replication Communication Vehicles1. Executive/Team briefings2. Networks and CoPs3. Searchable data/knowledge repositories4. Project milestone reviews5. Documentation of workflow and processes6. Face to face meetings7. Lessons Learned/After Action Reviews8. Leadership briefings9. Scorecard reviews10. Certification panels11. Internal conferences/forums12. Storyboard/poster sessions

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• The importance of knowledge capture and replication to the organization’s success

• Goals of replication and Six Sigma/Lean• What’s in it for me?

– Faster projects, greater results• How to use the capture, sharing, and replication tools as

part of the 6S/lean methodology • Recognition of success• Measures of replication success

Tool: Replication Training Checklist

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Measurement: The means and the end• Partners focus on measuring gains and outcomes, and replication is

a means to an end, not the end itself.• Management is interested in outcomes, but as leaders of the

process, improvement practitioners should measure the replication process itself.

• 88% of partners use the quantitative benefits of the Six Sigma/lean program to measure the health and effectiveness of capture and replication. – Replication is built into methodology, so can deduce success with improved

Six Sigma/lean results– 75% use stories and anecdotes of replication to indicate success.

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Measurement (continued)• 75% of partners rate effectiveness of capture and replication

processes as moderate or high…but most don’t have explicit measures.– Only 18% of sponsors were moderate to high– For partners - management mandate, inclusion in methodology, and

performance evaluation drive results. • Only 50% of partners explicitly measure health and effectiveness of

knowledge capture and replication.– Partners indicate that management mandate to replicate and inclusion of

replication in methodology drive results.– Management hasn’t required explicit measurement of replication because it’s

expected as part of program. – Intuit measures practitioners on data in Quickbase – if it’s not available for

others, it doesn’t count!

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Partner Examples: Measurement• Ford expects each plant to replicate a certain number (3-5 or more)

Six Sigma projects or nuggets per year and tracks results in master schedule.– Approximately 1-2% are replicated and make it to BPR

• DuPont estimates 20% of projects are replicated or reused.• Intuit’s management sets aggressive goals, causing BBs to “pull”

previous practices, but does not measure. • Raytheon does not measure replication explicitly, but receives

continued funding to support KM processes.

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Measurement (continued)

• Top three non-financial benefits of knowledge capture and replication:– reduction in duplication of efforts and/or projects– rapid transfer of best practices and implementation– achieving cultural change within the organization

• Practitioners can develop qualitative and quantitative indicators of the process of replication, and its relationship to outcomes.– Focus on linking inputs to outcomes with explicit replication

measures (see next slides for model and suggested measures).

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Tool: Measuring the Effects of Replication

3. % of completed projects replicated (part or whole)

4. % of projects underway replicating practices

ProcessImprovement

1. # of projects capturing practices

2. % of practitioners in CoPs or networks

Input

Individual Projects

Sales

Manufacturing

Cust Svc

Outcome

5. Average days to complete replicated steps v. days to complete parent steps

6. Financial savings per replicated project

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Tool: Suggested Metrics Checklist• Practitioners can use these metrics to guide the process of

replicating Six Sigma/Lean results

Activity • # of projects capturing practices• % of practitioners in CoPs or networks

Process Improvement

• % of completed projects replicated (part or whole)• % of projects underway replicating practices

Outcome: • Average days to complete replicated steps v. days to complete parent steps

• Financial savings/replicated project• Estimates of replication success

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Recognition: What’s in it for me?• Only a few partners have a separate reward and recognition program

for the capture and replication of project practices– Ford highlights valuable replications during Six Sigma champion/owner network

meetings.– Raytheon provides a KM airline and travel award and KM thanks

• Most provide incentives to practitioners for outstanding Six Sigma/lean work– Since 100% of partners build capture/replication into Six Sigma/lean programs,

incentives reward knowledge sharing behavior.– DuPont and Johns Manville's corporate policy encourages Six Sigma

competence as either a certified BB, MBB, or champion for promotion to a senior leadership position

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0%

50%

45%75%

18%25%

55%50%

9%13%

9%63%

27%38%

9%

13%

0% 20% 40% 60% 80% 100%

Incentives/Recognition

Management mandate

Peer pressure

Need for efficiency

Time pressures

Performance evaluations

Customer needs

Other

Q32B: What is driving the successful capture/transfer process for Six Sigma/Lean projects for Six Sigma/Lean practitioners at your organization?

Sponsors Partnersn=19

Recognition: Performance Evaluations Matter

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Tool: Recognition Checklist1. Highlight particularly valuable replications at senior leader meetings.2. Send notes of commendation for outstanding work.3. Allow replicators and outstanding practitioners to shadow executives.4. Invite BBs or MBBs to present project findings at annual leadership

conferences.5. Provide special yearly Six Sigma awards (which emphasize sharing

and replication) for outstanding practitioners.6. Provide a KM-specific award for outstanding practitioners.7. Make knowledge capture and replication part of the performance

evaluation.• Knowledge Usage - open to new ideas and continuous learning. Learns from

others and replicates knowledge in work.• Knowledge Sharing - shares own knowledge with community. Builds

knowledge base and actively promotes sharing and replication.

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Tool: Reward and Recognition Best Practices2

1. Time to capture and replicate knowledge has to be built into the Six Sigma/Lean methodology of the organization.

2. Make using the system self-rewarding. Build knowledge capture/replication into 6 Sigma methodology and provide a one-stop shopping for information people need to do their job.

3. Recognition often lies in being perceived as an expert by peers and management. Quality does matter.

4. “Link and Leverage” to existing 6 Sigma/Lean reward systems.

5. Recognize both parties or units involved, including both those who share knowledge and those who replicate knowledge.

6. Celebrate success stories and propagate tales of replication savings and contributions.

Modified from: O’Dell, Carla. “Reward and Recognition.” APQC, 2001.

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Wrap Up: What have we learned?

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Wrap Up: What have we covered?

• The object is to be a more efficient, effective continuously improving organization – not sharing knowledge for knowledge’s sake.

• What did you learn?– Takeaways– Lessons Learned

• Fill out evaluations and survey• Final Questions• Thanks for being here…

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Contact Information

John CragerSenior AdviserAmerican Productivity & Quality Center123 North Post Oak Lane, Suite 300Houston, Texas 77024(713) [email protected]

Visit our website at www.apqc.org